operations management (opm530) -c3 product design
TRANSCRIPT
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Operations Operations ManagementManagement
Product DesignProduct DesignChapter 3Chapter 3
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OutlineOutline Goods and services selection Generating new products Product development Issues for product design Time-based competition Defining the product Documents for production Service design
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Learning ObjectivesLearning ObjectivesWhen you complete this chapter, you should be able
to :Identify or Define:
Product life cycle Product development team Manufacturabililty and value engineering Robust design Time-based competition Modular design Computer aided design Value analysis Group technology Configuration management
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Learning Objectives - ContinuedLearning Objectives - Continued
When you complete this chapter, you should be able to:
Explain: Alliances Concurrent engineering Product-by-value analysis Product documentation
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As Engineering designed it.
© 1984-1994 T/Maker Co.
As Operations made it.
© 1984-1994 T/Maker Co.
As Marketing interpreted it.
© 1984-1994 T/Maker Co.
As the customer wanted it.
© 1984-1994 T/Maker Co.
Humor in Product DesignHumor in Product Design
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Need-satisfying offering of an organization Example
P&G does not sell laundry detergent P&G sells the benefit of clean clothes
Customers buy satisfaction, not parts May be a good or a service
What is a Product?What is a Product?
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Product Strategy OptionsProduct Strategy Options
Product differentiation
Low cost
Rapid response
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Generation of New Product Generation of New Product OpportunitiesOpportunities
Economic change Sociological and demographic change Technological change
Political/legal change Changes in
market practice professional standards suppliers and distributors
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Product
ProductIdea
Package
PhysicalGood
FeaturesQualityLevel
Service(Warranty)
Brand(Name)
Product ComponentsProduct Components
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Product Life CycleProduct Life Cycle
Introduction Growth Maturity Decline
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Product Life CycleProduct Life CycleIntroductionIntroduction
Fine tuning research product development process modification and enhancement supplier development
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Product Life CycleProduct Life CycleGrowthGrowth
Product design begins to stabilize Effective forecasting of capacity becomes
necessary Adding or enhancing capacity may be necessary
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Product Life CycleProduct Life CycleMaturityMaturity
Competitors now established High volume, innovative production may be
needed Improved cost control, reduction in options,
paring down of product line
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Product Life CycleProduct Life CycleDeclineDecline
Unless product makes a special contribution, must plan to terminate offering
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Product Life Cycle, Sales, Cost, Product Life Cycle, Sales, Cost, and Profitand Profit
Sale
s, C
ost &
Pro
fit
.
Introduction Maturity DeclineGrowth
Cost ofDevelopment
& ManufactureSales Revenue
Time
Cash flowLoss
Profit
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Product-by-Value AnalysisProduct-by-Value Analysis
Lists products in descending order of their individual dollar contribution to the firm.
Helps management evaluate alternative strategies.
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Product Development StagesProduct Development Stages
Idea generation Assessment of firm’s ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market Introduction to Market EvaluationSc
ope
of p
rodu
ct d
evel
opm
ent t
eam
Scope of design for manufacturability and value engineering teams
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Quality Function DeploymentQuality Function Deployment
Identify customer wants Identify how the good/service will satisfy
customer wants Relate customer wants to product hows Identify relationships between the firm’s hows Develop importance ratings Evaluate competing products
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QFD House of QuaoityQFD House of Quaoity
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House of Quality Sequence Indicates House of Quality Sequence Indicates How to Deploy Resources to Achieve How to Deploy Resources to Achieve
Customer RequirementsCustomer Requirements
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Idea Generation StageIdea Generation Stage
Provides basis for entry into market Sources of ideas
Market need (60-80%); engineering & operations (20%); technology; competitors; inventions; employees
Follows from marketing strategy Identifies, defines, & selects best market opportunities
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Customer Requirements StageCustomer Requirements Stage
Identifies & positions key product benefits Stated in core benefits proposition (CBP) Example: Long lasting with more power
(Energizer Die Hard Battery)
Identifies detailed list of product attributes desired by customer Focus groups or
1-on-1 interviews
House of Quality
Customer Requirements
Product Characteristics
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Functional Specification StageFunctional Specification Stage Defines product in terms of how the
product would meet desired attributes Identifies product’s engineering
characteristics Example: printer noise (dB)
Prioritizes engineering characteristics May rate product compared to competitors’
House of QualityHouse of Quality
Customer Requirements
Product Characteristics
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Determines how product will be made Gives product’s physical specifications
Example: Dimensions, material etc. Defined by engineering
drawing Done often on computer
Computer-Aided Design (CAD)
Product Specification StageProduct Specification Stage
House of QualityHouse of Quality
ProductCharacteristics
Component Specifications
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Quality Function DeploymentQuality Function Deployment
Product design process using cross-functional teams Marketing, engineering, manufacturing
Translates customer preferences into specific product characteristics
Involves creating 4 tabular ‘Matrices’ or ‘Houses’ Breakdown product design into increasing levels of detail
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Organizing for Product Organizing for Product DevelopmentDevelopment
Historically – distinct departments Duties and responsibilities are defined Difficult to foster forward thinking
Today – team approach Representatives from all disciplines or functions Concurrent engineering – cross functional team
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Manufacturability andManufacturability and Value Engineering Value Engineering
Benefits: reduced complexity of products additional standardization of products improved functional aspects of product improved job design and job safety improved maintainability of the product robust design
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Issues for Product DevelopmentIssues for Product Development
Robust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design
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Robust DesignRobust Design
Product is designed so that small variations in production or assembly do not adversely affect the product
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Modular DesignModular Design
Products designed in easily segmented components.
Adds flexibility to both production and marketing
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Designing products at a computer terminal or work station Design engineer
develops rough sketch of product
Uses computer to draw product
Often used with CAM
© 1995 Corel Corp.
Computer Aided Design (CAD)Computer Aided Design (CAD)
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Shorter design time Database availability New capabilities
Example: Focus more on product ideas Improved product quality Reduced production costs
Benefits of CAD/CAMBenefits of CAD/CAM
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Design for Manufacturing and Assembly (DFMA)
3-D Object Modeling CAD/CAM – CAD info is
translated into machine control instructions (CAM)
© 1995 Corel Corp.
Extensions of CADExtensions of CAD
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Virtual RealityVirtual Reality
Computer technology used to develop an interactive, 3-D model of a product.
Especially helpful in design of layouts (factory, store, home, office)
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Value AnalysisValue Analysis
Focuses on design improvement during production
Seeks improvements leading either to a better product or a product which can be more economically produced.
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Environmentally Friendly DesignsEnvironmentally Friendly Designs
Benefits Safe and environmentally sound products Minimum raw material and energy waste Product differentiation Environmental liability reduction Cost-effective compliance with environmental
regulations Recognition as good corporate citizen
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““Green” ManufacturingGreen” Manufacturing
Make products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less material
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Time-based CompetitionTime-based Competition
Product life cycles are becoming shorter.
Faster developers of new products gain on slower developers and obtain a competitive advantage
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Product Development ContinuumProduct Development ContinuumExternal Development Strategies
Alliances Joint Ventures
Purchase Technology or Expertise by Acquiring the Developer
Internal Development StrategiesMigrations of Existing Products
Enhancement to Existing ProductsNew Internally Developed Products
Internal ----------------------Cost of Product Development --------------------- Shared
Lengthy --------------------Speed of Product Development---------------Rapid and/or Existing
High ------------------------- Risk of Product Development ----------------------- Shared
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Engineering drawing Shows dimensions, tolerances, &
materials Shows codes for Group Technology
Bill of Material Lists components, quantities & where
used Shows product structure
© 1984-1994 T/Maker Co.
Product DocumentsProduct Documents
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Make-or-Buy DecisionsMake-or-Buy Decisions
Decide whether or not you want (or need) to produce an item
May be able to purchase the item as a “standard item” from another manufacturer
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Parts grouped into families Similar, more standardized parts
Uses coding system Describes processing & physical
characteristics Part families produced
in manufacturing cells Mini-assembly lines
© 1984-1994 T/Maker Co.
Group Technology CharacteristicsGroup Technology Characteristics
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Improved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenance
Group Technology BenefitsGroup Technology Benefits
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Production DocumentsProduction Documents
Assembly Drawing Assembly chart Route sheet Work order
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Engineering Change Notice (ECN)Engineering Change Notice (ECN)
A correction or modification of an engineering drawing or bill of material
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Configuration ManagementConfiguration Management
A system by which a product’s planned and changing components are accurately identified and for which control and accountability of change are maintained
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Service Design -Service Design - Nature of Customer Participation Nature of Customer Participation
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Improving Customer Relations at Improving Customer Relations at a Drive-up Windowa Drive-up Window
Be especially discreet when talking with customer through the
microphone
Provide written instructions for customers who must fill out forms you
provide
Mark lines to be completed or attach a note with instructions
Always say ”please” and “thank you”
Establish eye contact with the customer if the distance allows it
If the transaction requires that the customer park the car and come
into the lobby, apologize for the inconvenience.