operations management (opm530) -c3 product design

Prepared by : Shatina Saad OPM 5333-1

Operations Operations ManagementManagement

Product DesignProduct DesignChapter 3Chapter 3


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


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


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


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


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?


Product Strategy OptionsProduct Strategy Options

Product differentiation

Low cost

Rapid response


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


Product

ProductIdea

Package

PhysicalGood

FeaturesQualityLevel

Service(Warranty)

Brand(Name)

Product ComponentsProduct Components


Product Life CycleProduct Life Cycle

Introduction Growth Maturity Decline


Product Life CycleProduct Life CycleIntroductionIntroduction

Fine tuning research product development process modification and enhancement supplier development


Product Life CycleProduct Life CycleGrowthGrowth

Product design begins to stabilize Effective forecasting of capacity becomes

necessary Adding or enhancing capacity may be necessary


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


Product Life CycleProduct Life CycleDeclineDecline

Unless product makes a special contribution, must plan to terminate offering


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


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.


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


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


QFD House of QuaoityQFD House of Quaoity


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


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


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


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


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


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


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


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


Issues for Product DevelopmentIssues for Product Development

Robust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design


Robust DesignRobust Design

Product is designed so that small variations in production or assembly do not adversely affect the product


Modular DesignModular Design

Products designed in easily segmented components.

Adds flexibility to both production and marketing


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)


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


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


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)


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.


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


““Green” ManufacturingGreen” Manufacturing

Make products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less material


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


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


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


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


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


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


Production DocumentsProduction Documents

Assembly Drawing Assembly chart Route sheet Work order


Engineering Change Notice (ECN)Engineering Change Notice (ECN)

A correction or modification of an engineering drawing or bill of material


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


Service Design -Service Design - Nature of Customer Participation Nature of Customer Participation


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.