wiley good .session7-productandprocessdesign
TRANSCRIPT
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Product and Service DesignProcess Design
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Designing the Operations :Strategic Level
Technology
Capacity Work Systems
Location
ProcessDesign
ProductDesign
Facility Layout
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Product Design Strategies
Design a product according
to market needs and then,try to adapt our processes
Design products according
to the limits of our processesand then, find a market
Sell what the
market wants
Sell only what
we can make
Find the right balance : a simultaneous evolution of products and processes, taking into account the needs of the market AND our distinctive competencies.
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A multi-functional approach
HumanResources
OM
Marketing
EngineeringR&D
Finance
OtherPartners
Customers
Suppliers
Multi-functionalTeam
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Products and ProcessesIn Constant Evolution
Design mistakes / Customer complaintsCustomer needs / Opportunities
Maturity of actual product line
Competitive pressures
Innovation strategy
New technology
Too much capacity
Social and legal pressures
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Product Life Cycle
Introductionresearch / product development
process modification and enhancement
supplier development
Growth
Product design begins to stabilizeEffective forecasting of capacity becomes necessary
Adding or enhancing capacity may be necessary
Maturity
Competitors now establishedHigh volume, innovative production may be needed
Improved cost control, reduction in options, paring down of product line
DeclineUnless product makes a special contribution, must plan to terminateoffering
2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
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Product Life Cycle
D e m a n
d
Time
Source: Adapted from Stevenson, Hojati, (2007), p 122
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Product Life Cycle, Sales, Cost, and Profit
S
a l e s
, C o s
t &
P r o
f i t
.
Introduction Maturity DeclineGrowth
Cost of Development
& ManufactureSales Revenue
TimeCash flowLoss
Profit
2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
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Idea Generation Sources
Companys own R&D department
Customer complaints or suggestions
Marketing research / Perceptual MapsVisual comparison of customer perceptions
SuppliersSalespersons in the field
Factory workers
New technological developments
Competitors / Reverse engineeringDismantling competitors product to improve your own product
Benchmarking
Comparing product/service against best-in-class
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Types of products
Standardized productOne size fits all
Intended to satisfy majority of customers
Produced in large quantities
Planning is simple
Make-to-stock
Customized productUnique product for each customer
Produced in small quantities
Planning is difficult
Make-to-order
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Production Design Strategies
Simplification
reducing number of parts, assemblies, or options in a product
Standardization
using commonly available and interchangeable parts
Modularity
combining standardized building blocks, or modules, to createunique finished products
Copyright 2006 John Wiley & Sons, Inc.
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(b) Revised design
One-piece base &elimination offasteners
(c) Final design
Design forpush-and-snapassembly
(a) Original design
Assembly usingcommon fasteners
Copyright 2006 John Wiley & Sons, Inc.
Design Simplification
24 parts84 seconds to assemble
4 parts12 seconds to assemble
2 parts4 seconds to assemble
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Advantages of Standardization
Fewer parts to deal with in inventory & manufacturing
Reduced training costs and time
More routine purchasing, handling, and inspection
proceduresOrders fillable from inventory
Opportunities for long production runs and automation
Need for fewer parts justifies increased expenditures onperfecting designs and improving quality controlprocedures.
Operations Management, 2 nd Canadian Edition, by Stevenson & HojatiCopyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Disadvantages of Standardization
Difficult to develop a product that must satisfiy the need of many different customers.
Designs may be frozen with too many imperfectionsremaining.
High cost of design changes increases resistance toimprovements.
Decreased variety results in less consumer appeal.
Operations Management, 2 nd Canadian Edition, by Stevenson & HojatiCopyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Component commonality
An example of standardizationThe use of the same component in many differentproducts
In the same product line
In different product lines
Between competitors
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Example
Sony could reshape industry with plan to cut parts by 90%. (7 Oct 2003)Sony is planning to reduce the number of parts it uses for consumer electronics products by
nearly 90 per cent in a move that could force widespread restructuring across theindustry. The Japanese giant hopes to reduce the number of components used in itscomplex manufacturing processes from 840,000 to 100,000 by 2005.
For more than half a century, carmakers have been trying to share parts between differentmodels to increase volumes and reduce tooling costs. But in the past two decades thepush to make different cars more similar under the skin has gone faster and further thanever before as the same underlying "platform" is used for many different models. PSAPeugeot Citroen and Volkswagen are more advanced in platform-sharing than most rivals,reaping billions of euros of cost savings by producing different-looking models to sellunder different names with almost identical underlying engineering.
"To produce parts in millions rather than hundreds of thousands generates huge savings for
the supplier which can be passed back to the vehicle manufacturer," said Philip Wylie,head of the automotive group at PwC, the accountants. Prof Rhys points to other gains,too. The reduction of complexity makes it far easier to manage inventories, while havingfewer suppliers simplifies management of relationships.
In the case of the electronics industry, much depends on whether product designers can beencouraged to simplify new products without sacrificing product cycles and innovation
rates far higher than in the automotive industry.
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Example
Can Mercedes Help Revive Chrysler? --- Daimler Is to TieUnits More Closely Together (Wall Street Journal, Feb. 6, 2007)
"We can't compete in this area [small cars] without cooperating. It's abrutally competitive market," said a person familiar with the company's
internal deliberations. He added that senior executives from thecompany's German and American sides are mindful of the need toprotect Mercedes 's exclusive image and agree in principle thatincreased component sharing between the brands should be in areasthat aren't visible to customers -- for example, sharing steering columns
rather than seating materials.Other people familiar with the matter said that Mr. Zetsche has also
privately raised the idea of allowing Chrysler and Mercedes to sharethe platforms of some of their SUVs, such as the Mercedes M-Classand the Jeep Grand Cherokee.
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Modular Design
Modular design is a form of standardization in whichcomponent parts are subdivided into modules that areeasily replaced or interchanged.
It allows:easier diagnosis and remedy of failures
easier repair and replacement
simplification of manufacturing and assembly
Lower training costs
But higher replacement cost (as you have to replace the wholemodule)
Operations Management, 2 nd Canadian Edition, by Stevenson & HojatiCopyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Modular vs. Integral Design
One-to-one mapping between functional elements and componentsInterfaces
Complex mapping from functional elements to components
Modular design
Integral design
integral modular
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Mass Customization
Mass customization: A strategy of producing standardized goods or services, butincorporating some degree degree of customization
Delayed differentiation
Modular designComponent commonality
Operations Management, 2 nd Canadian Edition, by Stevenson & HojatiCopyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Example : Nike ID
www.nikeid.com
http://www.nikeid.com/http://images.google.ca/imgres?imgurl=http://philenain.free.fr/fonds_ecrans/nike/800_600/nike004.jpg&imgrefurl=http://philenain.free.fr/fonds_ecrans/nike.htm&h=600&w=800&sz=8&hl=fr&start=4&tbnid=oPAnnU4TAQjLdM:&tbnh=107&tbnw=143&prev=/images%3Fq%3Dnike%26svnum%3D10%26hl%3Dfr%26rls%3DGGLJ,GGLJ:2006-36,GGLJ:frhttp://www.nikeid.com/ -
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Design for Environment
Design for environmentdesigning a product from material that can be recycled
design from recycled material
design for ease of repair
minimize packagingminimize material and energy used during manufacture,consumption and disposal
Extended producer responsibilityholds companies responsible for their product even after its usefullife
Copyright 2006 John Wiley & Sons, Inc.
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Organizing for Product and Process Development
Historically distinct departmentsFunctional approach
Duties and responsibilities are defined
Difficult to foster forward thinking
Today team approachCross-functional approach
Representatives from all disciplines or functions
Concurrent engineering cross functional team
2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
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Design Team
Copyright 2006 John Wiley & Sons, Inc.
C E i i
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Concurrent Engineering :Principles
Design and Operations personnel are reunited , very early in thedesign phase, to simultaneously design products and processes.
We include people from Operations, Purchasing, Marketing.Customers and suppliers are also invited to participate in certainstages of development.
Traditional
Approach
Concurrent
Engineering
Idea Design Manufacturing
Idea / Design / Manufacturing
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Concurrent Engineering : Objectives
Smoother transition between Engineering andOperations
Shorten the new product introduction cycle
Obtain a product that reflects the needs of the
customers and our processing capabilities
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Concurrent Engineering : Advantages
Operations personnel contribute early on to avoidtrial and errors and adapt the product to our capabilities.
New equipment can be ordered more quickly andreduce the time to market.
Approach is based on problem resolution asopposed to conflict resolutions.
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Special Considerations in Service Design
Services are intangibleService output is variable
Services have higher customer contact
Services are perishable
Service inseparable from delivery
Services tend to be decentralized and dispersed
Services are consumed more often than products
Services can be easily emulated
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Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210
High v. Low Contact Services (cont.)
DesignDecision
High-Contact Service Low-Contact Service
QualityControl
More variable sincecustomer is involved in
process; customer expectations and perceptionsof quality may differ;customer present whendefects occur
Measured againstestablished standards;testing and reworkpossible to correctdefects
Capacity Excess capacity required tohandle peaks in demand
Planned for averagedemand
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High v. Low Contact Services (cont.)
DesignDecision
High-Contact Service Low-ContactService
Worker skills Must be able to interact well with customers and
use judgment in decisionmaking
Technical skills
Scheduling Must accommodate
customer schedule
Customer concerned
only with completiondate
Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210
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High v. Low Contact Services (cont.)
Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210
DesignDecision
High-Contact Service Low-ContactService
Service process Mostly front-room activities; service maychange during delivery inresponse to customer
Mostly back-room activities; planned and
executed with minimalinterference
Servicepackage
Varies with customer;includes environment aswell as actual service
Fixed, less extensive
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Process Design
Source : Stevenson W. Benedetti C., (2001), p 151
ProcessSelection
Product orServiceDesign
Technology
Forecast
Workmethods
Layout
Facilities andMaterial
CapacityRequirements
External Environment (political, economical, social,technological and ecological)
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Process Design :Caracteristics of processes
Level of technologyCapacity
FlexibilityQuantity
Product
Lead Time
Effectiveness and EfficiencyMeet the objectives (do the right thing)
Optimize resources (do it correctly)
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From the following criteria :
Quantity to be produced(Lot size)
Variety of products
Desired flexibility
Process Selection
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Process Selection: Process Types
Projectsone-of-a-kind production of a product to customer order
Job ShopsSmall runs
Batch productionsystems process many different jobs through the system in groupsor batches
Mass production (repetitive)produces large volumes of a standard product for a mass market
Continuous productionused for very-high volume commodity products
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Projects
Produced one at a time, from beginning to end.
Crafts
Construction projects
Consultations
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Batch Processing
Job Shop : Small quantityproduced highlydifferentiated products
Batch : Moderate quantityproduced of similar goods or services.
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Mass Production and Continuous Production
Mass production : (repetitive,assembly line)
Production in large quantities of verysimilar products
Continuous :
Non-stop production of a highly
standardized product
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Product-Process Matrix
Continuousprocess
Projectprocess
Line
process
Batchprocess
Jobprocess
L o w
V a r i e
t y
H i g h V a r i e
t y
Low Volume High Volume
High Cost
High Cost
Project
Job Shop
Batch
Line
Continuous
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Types of Processes
Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210
PROJECT BATCH
Type of product UniqueMade-to-order
/ or to stock
Type of customer One-at-a-time
Few individual
customers
MASS
Made-to-stock(standardized)
Mass
market
Continuous
Commodity
Mass
market
Productdemand Infrequent Fluctuates Stable Very stable
Copyright 2006 John Wiley & Sons, Inc.
JobShop
Made-to-order (customized)
Few individual
customers
Fluctuates
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Types of Processes (cont.)
Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210
PROJECT BATCH
Demandvolume
Very low Low tomedium
No. of differentproducts
Infinitevariety Many, varied
MASS
High
Few
Continuous
Very high
Very few
Productionsystem
Long-termproject
Discrete /batches
Repetitive,assembly lines
Continuous,process
industries
Copyright 2006 John Wiley & Sons, Inc.
JobShop
Low
Many, varied
Discrete, jobshops
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Types of Processes (cont.)
Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210
Project BATCH
Equipment Varied General-purpose
Primarytype of work
Specializedcontracts Fabrication
MASS
Special-purpose
Assembly
Continuous
Highlyautomated
Mixing,treating,refining
Worker skills
Experts,crafts-
persons
Significantrange of skills
Limited rangeof skills
Equipmentmonitors
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Job shop
General-purpose
Fabrication
Wide rangeof skills
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Types of Processes (cont.)
Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210
Project BATCH
AdvantagesCustom work,
latesttechnology
Flexibility,quality
DisadvantagesNon-repetitive,small customer
base, expensive
Costly, slow,difficult tomanage
MASS
Efficiency,speed,
low cost
Capitalinvestment;
lack of responsiveness
Continuous
Highly efficient,large capacity,ease of control
Difficult tochange,
far-reachingerrors,
limited variety
ExamplesConstruction,shipbuilding,
spacecraft
Bakeries,education
Automobiles,televisions,computers,
fast food
Paint, chemicals,foodstuffs
Copyright 2006 John Wiley & Sons, Inc.
Job Shop
Flexibility,quality
Costly, slow,difficult tomanage
Machineshops,
print shops
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Basic Process Selection
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Video
Product-ProcessMatrix
O.M. vol 11-The product-process Matrix 00:13:53 Anglais
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Processes in ServicesExamples:
Projects: Hair Salon Hospital
Batch Air travel Education
Continuous Cable companies
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In preparation of session 8:
Review Reading class 7:SlidesS&H, parts of Chapter 4 & 6 (see Zonecours for detailed list)
Readings class 8 : S&H, chap. 5 pp 159-168
chap. 6 pp 197-208chap. 8 pp 279-288