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Page 1: Du-point Hospital - Sudip Dutta

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NEW PRODUCT

DEVELOPMENT

SERVICES

Sudip DuttaPGPM 2010 - 2012

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INTRODUCTION

� Services are operations with:

 ± Intangible outputs that ordinarily cannot be

inventoried

 ± Close customer contact

 ± Short lead times

 ± High labor costs relative to capital costs

 ± Subjectively determined quality

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DU-POINT HOSPITAL

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PRODUCT/SERVICE DESIGN

� Sources of Product Innovation

� Developing New Products/Services

� Getting Them to Market Faster � Improving Current Products/Services

� Designing for Ease of Production

� Designing for Quality

� Designing and Developing New Services

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PROCESS

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Conversion Process

Patients

Doctors

Hospital building

 All kind of 

equipments andpersonnel

involved in

healthcare

How a sick

person

taken care

with proper 

treatment.

Healthy

person

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Process Selection and System Design

Forecasting

Product and

Service Design

Technological

Change

Capacity

Planning

ProcessSelection

Facilities and

Equipment

Layout

Work

Design

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NEEDS OF CUSTOMERS

Efficient doctors

Quality of treatment

Clean and healthy environmentModern equipments

Cost-effective

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PROCESS DESIGN Contd..

� Customer-as-Product

 ± Service is provided through personal attentionto the customer 

 ± Customized service on the customer 

 ± High degree of customer contact

 ± There is a perception of high quality

 ± Customer becomes the central focus of theprocess design

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LOCATION

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 A Sequence of Decisions

  National Decision National Decision

 Regional DecisionRegional Decision

 Community DecisionCommunity Decision

 Site DecisionSite Decision

Political, social, economic stability;

Currency exchange rates; . . . . .

Climate; Customer concentrations;

Degree of unionization; . . . . .

Transportation system availability;

Preference of management; . . . . .

Site size/cost; Environmental impact;

Zoning restrictions; . . . . .

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 Analyzing Service Location Decisions

 Consumer Behavior Consumer Behavior 

ResearchResearch

 Market ResearchMarket Research

 Data Gathering for Data Gathering for 

Each Location AlternativeEach Location Alternative

 Revenue Projections for Revenue Projections for 

Each Location AlternativeEach Location Alternative

Why do customers buy our 

 products and services?

Who are our customers?

What are their characteristics?

What are the economic projections?

What is the time-phased revenue?

 Profit Projections for Profit Projections for 

Each Location AlternativeEach Location AlternativeWhat are the projected revenues

less time-phased operating costs?

Where are our customers concentrated?

What are their traffic/spending patterns?

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LOCATION

� Should not be in a high traffic zone with high rates of 

pollution.

� Large area for parking.

� Some open area is required around the hospital todevelop the hospital at later stages.

� Must be situated close to bus terminals and railway

stations for outstation people visiting the hospital.

� Must be well-equipped with good resturants andcafeterias in and around the campus.

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LAYOUT

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TYPICAL LAYOUT OF DU-POINT HOSPITAL

Surgery

Radiology

ERtriageroom

ER Beds Pharmacy

Emergency room admissions

Billing/exit

Laboratories

Patient A - broken leg

Patient B - erratic heartpacemaker 

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LAYOUT Details«

 Arrange work centers so as to minimize Arrange work centers so as to minimizethe costs of material handlingthe costs of material handling

Basic cost elements areBasic cost elements are Number of loads (or people) movingNumber of loads (or people) moving

between centersbetween centers

Distance loads (or people)Distance loads (or people) movingmoving betweenbetween

centerscenters

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Using Closeness Ratings

to Develop Facility Layouts

StartStart Let m = 1 and n = 6.Let m = 1 and n = 6.

Identify dept. pairs with CR of m.Identify dept. pairs with CR of m.

Develop layout with dept. pairs idenDevelop layout with dept. pairs iden--

tified in Step 2 adjacent to one another.tified in Step 2 adjacent to one another.

Identify dept. pairs with CR of n.Identify dept. pairs with CR of n.

Fit the dept. pairs identified in Step 4Fit the dept. pairs identified in Step 4

into the trial layout from Step 3.into the trial layout from Step 3.

Step 1Step 1

Step 2Step 2

Step 3Step 3

Step 4Step 4

Step 5Step 5

Examine the trial layout from Step 5.Examine the trial layout from Step 5.

If any CRs of dept. pairs are violated,If any CRs of dept. pairs are violated,

rearrange depts. to comply with CRs.rearrange depts. to comply with CRs.

Step 6Step 6

DoesDoes

m = 3 and n = 4m = 3 and n = 4??

StopStop

Let m = m + 1Let m = m + 1

and n = nand n = n -- 1.1.

 No No

YesYes

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Using Closeness Ratings

to Develop Service Facility Layouts

� Typical Closeness Ratings

Closeness Meaning

Rating of Rating

1 Necessary

2 Very Important

3 Important

4 Slightly Important

5 Unimportant

6 Undesirable

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Closeness Rating Grid

55

6644

44

22

3333

55

44

11

22

66 2244

3333

116655

1122

Dept. A

Dept. B

Dept. C

Dept. D

Dept. E

Dept. F

Dept. G

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Capacity Planning, Aggregate Planning, Master 

Schedule, and Short-Term Scheduling

Capacity Planning1. Facility Size

2. Equipment Procurement

Aggregate Planning

1. Facility Utilization2. Personnel needs

3. Subcontracting

Master Schedule

1. MRP2. Disaggregation of master plan

Short-term Scheduling

1. Work center loading

2. Job sequencing

Long-term

Intermediate-term

Intermediate-term

Short-term

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QUALITY

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What is Quality?

Quality is degree to which a set of inherent characteristics fulfills

requirements.

Characteristics:

Inherent characteristics of a product, process or system related to

requirement.

Requirement:

Need or expectation that is stated, generally implied or obligatory.

QUALITY

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QA/QC

� Quality Control

Quality Control is the part of Quality management focused on fulfilling quality

requirements.

� Quality Assurance

Quality Assurance is the part of the Quality Management focused on providing

confidence that quality requirements will be fulfilled.

In other words, Quality Assurance means to assure quality in a product so that

a customer can buy it with confidence and use it for a long period of time with

confidence and satisfaction.

It takes ten or more years to build confidence in your products, but that

confidence can be lost overnight.

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QA activities nested in the following areas:

 A) Marketing Product evaluation by a test market

Controlled use of product

Product monitoring

Captive service activity

Special Surveys

Competitive evaluations

B) Product Development

Design review

Reliability analysis

Maintainability analysis

Safety analysis

Human factor analysis

Manufacturing, inspection and transportation analysis

Value Engineering

Self Control analysis

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Key Responsibilities of QC

� Establishment of specifications for all starting materials and finished products, for 

packaging materials and for intermediates.

� Establishment of detailed instructions for sampling and carrying out all the tests

required in connection with the quality control of materials and products.

� Establishment of procedures for the microbiological testing of materials , products,

water and the production environment, where necessary.

� Sampling and testing of all batches of starting materials,finished products,

intermediates and packaging materials for compliance with established sampling and

test procedures.

� Maintenance, calibration and servicing of all test equipment.

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QUALITY ASSURANCEFUNCTION

QUALITY CONTROLFUNCTION

Creation of QMS and Procedures Establishment and updation of specification for all starting materials,

intermediates, and finished goods, jointly with R & D and get

authorized by QA

Document updation, circulation and control Establishing and updating detailed procedure & methods for  

sampling & testing required for QC purposes, along with R & D and

get authorized By QA

QMS Audit, Monitoring & Maintenance Sampling and testing of all batches of Starting materials, finished

products, and intermediates reprocessed materials and Packaging

materials.

Organizing Inspection (Drugs & ISO), WHO Maintenance, calibration and servicing of all test equipments.

Validation ± Manufacturing Process, Equipments, & Cleaning ±

Calibration

 Analysis of suppliers (new & existing) samples to produce

performance report to QA for evaluation of existing approval of new

suppliers

Review of Stability Date and Shelf Life of Products & RMS Shelf life studies of product & raw materials and report to QA for  

evaluation.

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