Design of goods and services ppt @ bec doms
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  • Regal Marine provides an example where everything fits together. You may wish to discuss the “production line” where: - bows and hulls are individually hand-produced - bows and hulls are joined as they move to an assembly line - wooden decks are delivered one-at-a-time to the installation station - engines (one of few purchased elements) are installed - wiring harnesses (produced in-house) are installed - upholstered items are installed - vessel is moved to test tank for testing - watertight, gauge, and systems
  • This slide provides an opportunity to introduce the complex nature of a product. There are a number of examples one can discuss here: McDonald’s/ Burger King/Wendys (their product is more than hamburgers); your particular college or university; Microsoft; auto manufacturers.
  • Ask students to identify products or companies which rely on each of these strategies.
  • Each of the items listed forms the basis for developing a new product idea. Ask students to provide examples of products fitting each element.
  • One might remind students that a product is defined not only by what it has, but also by what is missing.
  • This slide begins an in depth study of the product life cycle.
  • Previous slides have related the product life cycle to various management issues. This is the first to relate it to cash flow. Ask students for suggestions as to how one might eliminate the loss occurring toward the end of the product’s life cycle.
  • This slide suggests that product innovation is a “way-of-life” for industry leaders. Does this suggest that one of the most important activities in which a company engages is that of “adaptation”? If so, will this become more or less of an issue in the future?
  • This slide gave a reasonable depiction of the growth stage for these products when it was created. Does it still? Ask students to consider the length of the lifetime of each of the products listed. Are the lifetimes similar? What ranges of lifetime would they estimate for these products?
  • This slide suggests the relatively small number of product concepts that actually become successful. Ask students to suggest reasons for such a poor success rate. Can they also suggest ways by which the success rate might be improved?
  • Product-by-value analysis helps identify appropriate priorities.
  • This slide indicates the stages in the product development process. It also attempts to indicate organizational teams assigned to accomplish specific elements. Students might be asked to consider the utility of having the process broken down among several work groups. Would success be improved if all these activities were carried out by a single “project team” from start to finish, rather than sequentially by teams of specialists?
  • One notion which might be discussed at this stage is the attempts by manufacturers to add information to an existing good rather than develop a new good.
  • Here begins the attempt to link the product directly with the customer. You might specify a product and ask students to identify first the attributes of interest to the customer, and second the “benefits” to the customer.
  • At this point we have to start adding precision to our specifications. If we want a product to be “easy to use,” what exactly does that mean? To use by whom? With what level of preparation? Etc.
  • At this point, we have to develop the information necessary to actually produce the product - and, to know that it has been produced appropriately.
  • Manufacturability and value engineering encompass many issues. You may wish to stress the point that we consider in detail not only what the product is, but how it is to be produced and maintained - the best design is optimized across all these activities, not just one or another.
  • This slide illustrates changes made over a series of iterations in design. Cost is obviously reduced. You might ask students if the perceive any change in quality as the design iterations progressed and the cost was reduced.
  • This slide introduces some of the issues of product development.
  • After discussing the concept of robust design, you might identify a product and ask students to identify the use of robust design in its production. (One example is the use of the plastic seal on the inside of soda bottle caps)
  • Ask your students to suggest examples of products that are produced in modular fashion. Certainly microcomputers provide a good example; also cars, motorcycles, and hamburgers.
  • CAD can be viewed both as a sophisticated design tool, and as the first step in developing a completely integrated production process. CAD=>CAM=> ... CIM.
  • You might point out here that modern CAD systems with 3D representation and virtual reality capability allow one to “consumer test” a product before it is produced. Students will probably be familiar with some of the televised automobile company ads.
  • CAD can be viewed both as a sophisticated design tool, and as the first step in developing a completely integrated production process. CAD=>CAM=> ... CIM.
  • You might suggest that your students view value analysis as value engineering during, rather than prior to, production. Value analysis helps continually improve both design and production methodology.
  • Environmental issues are becoming more important in product design. Ask students for example of companies which stress environmentally sound design and production practices. Also ask them to suggest some examples of companies which have a very poor environmental record. Why does such a difference exist?
  • Ask the students to consider the effect of time-based competition not only on the producer, but also on the customer. Assume that you order two computers, through a catalog, directly from the factory. If you place one order today, and a second two days from now (for the same model, etc.), you may well receive two machines sufficiently different that the installation procedure for one will not work on the second. The producer has to deal with the issue of producing a constantly evolving product, but you also have to manage the problem created by the increasingly short and perhaps in a sense, artificial, product lifetimes.
  • This slide introduces the concept of “product documents.” Examples will be found in subsequent slides.
  • An excerpt from the specifications for Monterey Jack cheese. You might ask students to compare their perception of several other cheese to this excerpt, and note the differences.
  • You might note to the students that the engineering drawing contains all dimensions necessary to produce the product - but specifies nothing about the production process.
  • Remind students that the Bill of Material indicates all parts or kits required to assemble a unit of the product and that bills of materials at multiple levels are required to fully specify each and every individual part contained in the finished unit. (The bill of material portrayed on the slide specifies a “frame assembly,” but does not tell us what pieces are required to produce the assembly. This information would be contained in a lower level bill of materials.)
  • At this point, one can raise the arguments for producing in-house versus purchasing. It might be useful in this instance to look both at manufacturing and services. Useful examples can be developed from: - the publishing industry where the publisher may perform the editing and project management, but contract virtually everything else out; - the role of production in house versus that of purchasing services outside in developing a distance education program, or staffing a hospital; - the procedure followed in the development of the Microsoft Windows 97 operating system, versus that for the Linux operating system. You might also ask your students to consider the relationship between the make-or-buy decision and the concept of the virtual organization.
  • You might ask your students to consider the requirements necessary for the concept of group technology to be successful.
  • You might ask your students to consider the “downside” to group technology. Are the limitations it places on development and production significant or important?
  • This slide introduces the notion of production documents.
  • One could obviously ask students to give examples of assembly charts for other common “products.”
  • This slide depicts both an Assembly Drawing and and Assembly Chart. Note that the Chart depicts both the relationship of the pieces and the sequence of assembly.
  • Note that the Route Sheet depicts both operations and timing.
  • One might point out to students that as the market environment tends to evolve more rapidly, configuration management will become an even more important issue.
  • Ask students to suggest example of services showing the various degrees of customer interaction in design. You might also ask students whether they would anticipate some the the notions of service design (customization, for example) to become important in manufacturing (mass customization?)
  • This illustrates some of the considerations in service design.
  • This slide illustrates some lessons learned by GTE You might ask students to cite examples illustrating the application of these lesson in other companies
  • This slide should probably be used simply to provide a reason for studying decision trees at a later time (Module A)
  • This slide introduces the problem of transitioning a product from design and development to production. It would probably be helpful to use this slide as the basis for a discussion of each of the issues. Points to be made might include: - the point in time at which to transition must be chosen by consensus of both design/development and production staff - while we should view product development as evolutionary, we may be required to view the transition as iterative - where, as unforeseen problems develop in production, design changes may be required. - product design/development teams must expect to contribute to problem solving in production - product design/development staff must recognize that once the transition to production has taken place, the main responsibility for the project has also shifted

Transcript

  • 1. Design of Goods and Services
  • 2. Outline
    • GLOBAL COMPANY PROFILE: REGAL MARINE
    • GOODS AND SERVICES SELECTION
      • Product Strategy Options Support Competitive Advantage
      • Product Life Cycles
      • Life Cycle and Strategy
      • Product-by-value Analysis
    • GENERATING NEW PRODUCTS
      • New Product Opportunities
      • Importance of New Product s
  • 3. Outline - continued
    • PRODUCT DEVELOPMENT
      • Product Development System
      • Quality Function Deployment (QFD)
      • Organizing for Product Development
      • Manufacturability and Value Engineering
    • ISSUES FOR PRODUCT DESIGN
      • Robust Design
      • Modular Design
      • Computer-Aided Design (CAD)
      • Computer-Aided Manufacturing
      • Virtual Reality Technology
      • Value Analysis
      • Environmentally Friendly Design
  • 4. Outline - continued
    • Time-Based Competition
      • Purchase of Technology by Acquiring Firm
      • Joint Ventures
      • Alliances
    • Defining the Product
      • Make-or-buy Decisions
      • Group Technology
    • DOCUMENTS FOR PRODUCTION
    • SERVICE DESIGN
      • Documents for Service
    • Application of Decision Trees to Product Design
    • Transition to Production
  • 5. Learning Objectives
    • When 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
  • 6. Learning Objectives - Continued When you complete this chapter, you should be able to: Explain : Alliances Concurrent engineering Product-by-value analysis Product documentation
  • 7. Regal Marine
    • Global market
    • 3-dimensional CAD
      • reduced product development time
      • reduced problems with tooling
      • reduced problems in production
    • Assembly line
    • JIT
  • 8. Humor in Product Design 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 .
  • 9.
    • 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?
  • 10. Product Strategy Options
    • Product differentiation
    Low cost Rapid response
  • 11. Generation of New Product Opportunities
    • Economic change
    Sociological and demographic change Technological change Political/legal change Changes in market practice professional standards suppliers and distributors
  • 12. Legislation/ Implementation Date Stated Purpose Industry Criticism Electrical-Waste directive (2006) Makes electrical equipment easier to recycle in part by banning some hazardous substances Bans some common flame retardants, raising the likelihood of fires Telecom-data-protection directive (mid-2003) Protects privacy on e-mail and the internet Makes surfing more onerous by restricting use of “cookies” to remember peoples preferences Biotech-Labeling laws (2003) Strengthens existing food-label laws and introduces labeling for animal feed containing genetically modified content Encourages food processors and supermarkets to avoid using genetically modified ingredients, and farmers could stop growing them Pedestrian-protection initiative (2001-2012) (when all new cars sold in Europe must comply) Reduces injuries and casualties in road accidents Raises costs of cars and restricts automaker’s design freedom Chemicals review (staggered through 2012) Eliminates health hazards due to chemicals Restricts even minute use of dangerous substances, such as ethanol, in products such as cosmetics and detergents Warning
  • 13. Product Components Product Product Idea Package Physical Good Features Quality Level Service (Warranty) Brand (Name)
  • 14. Product Life Cycle
    • Introduction
    • Growth
    • Maturity
    • Decline
  • 15. Product Life Cycle Introduction
    • Fine tuning
      • research
      • product development
      • process modification and enhancement
      • supplier development
  • 16. Product Life Cycle Growth
    • Product design begins to stabilize
    • Effective forecasting of capacity becomes necessary
    • Adding or enhancing capacity may be necessary
  • 17. Product Life Cycle Maturity
    • Competitors now established
    • High volume, innovative production may be needed
    • Improved cost control, reduction in options, paring down of product line
  • 18. Product Life Cycle Decline
    • Unless product makes a special contribution, must plan to terminate offering
  • 19. Product Life Cycle, Sales, Cost, and Profit Sales, Cost & Profit . Introduction Maturity Decline Growth Cost of Development & Manufacture Sales Revenue Time Cash flow Loss Profit
  • 20. Percent of Sales From New Product
  • 21. Products in Various Stages of Life Cycle Growth Decline Time Roller Blades Introduction Maturity Sales Virtual Reality Jet Ski Boeing 727
  • 22. Few Successes 0 500 1000 1500 2000 Development Stage Number 1000 Market requirement Design review, Testing, Introduction 25 Product specification 100 Functional specifications One success! 500 Ideas 1750
  • 23. Product-by-Value Analysis
    • Lists products in descending order of their individual dollar contribution to the firm.
    • Helps management evaluate alternative strategies.
  • 24. Product 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
    • Evaluation
    Scope of product development team Scope of design for manufacturability and value engineering teams
  • 25. Quality 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
  • 26. QFD House of Quaoity
  • 27. House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements
  • 28. Idea 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
  • 29. Customer Requirements Stage
    • Identifies & positions key product benefits
      • Stated in core benefits proposition (CBP)
      • Example: Long lasting with more power (Sears’ 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
  • 30. Functional 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 Quality Customer Requirements Product Characteristics
  • 31.
    • 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 Stage House of Quality Product Characteristics Component Specifications
  • 32. Quality 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
  • 33.
    • You’ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality.
    House of Quality Example © 1984-1994 T/Maker Co.
  • 34. House of Quality Example  High relationship  Medium relationship  Low Relationship Customer Requirements Customer Importance Target Values
  • 35. House of Quality Example  High relationship   Medium relationship  Low Relationship Target Values Light weight Easy to use Reliable What the customer desires (‘wall’) Aluminum Parts Auto Focus Auto Exposure Customer Requirements Customer Importance
  • 36. House of Quality Example  High relationship  Medium relationship  Low Relationship Customer Requirements Customer Importance Target Values Light weight Easy to use Reliable Aluminum Parts Auto Focus Auto Exposure 3 1 2 Average customer importance rating
  • 37. House of Quality Example  High relationship   Medium relationship  Low Relationship Customer Requirements Customer Importance Light weight Easy to use Reliable Aluminum Parts Auto Focus Auto Exposure      3 2 1 Relationship between customer attributes & engineering characteristics (‘rooms’)
  • 38. House of Quality Example  High relationship   Medium relationship  Low Relationship Customer Requirements Customer Importance Target Values Light weight Easy to use Reliable Aluminum Parts Auto Focus Auto Exposure      3 2 1 5 1 1 Target values for engineering characteristics (‘basement’); key output 
  • 39. House of Quality Example  High relationship  Medium relationship  Low Relationship Customer Requirements Customer Importance Target Values Light weight Easy to use Reliable Aluminum Parts Auto Focus Auto Exposure      3 2 1 5 1 1 
  • 40. Organizing for Product Development
    • 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
  • 41. Manufacturability and 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
  • 42. Cost Reduction of a Bracket via Value Engineering
  • 43. Issues for Product Development
    • Robust design
    • Time-based competition
    • Modular design
    • Computer-aided design
    • Value analysis
    • Environmentally friendly design
  • 44. Robust Design
    • Product is designed so that small variations in production or assembly do not adversely affect the product
  • 45. Modular Design
    • Products designed in easily segmented components.
    • Adds flexibility to both production and marketing
  • 46.
    • 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
    Computer Aided Design (CAD) © 1995 Corel Corp.
  • 47.
    • Shorter design time
    • Database availability
    • New capabilities
      • Example: Focus more on product ideas
    • Improved product quality
    • Reduced production costs
    Benefits of CAD/CAM
  • 48.
    • Design for Manufacturing and Assembly (DFMA)
    • 3-D Object Modeling
    • CAD/CAM – CAD info is translated into machine control instructions (CAM)
    Extensions of CAD © 1995 Corel Corp.
  • 49. Virtual Reality
    • Computer technology used to develop an interactive, 3-D model of a product.
    • Especially helpful in design of layouts (factory, store, home, office)
  • 50. Value Analysis
    • Focuses on design improvement during production
    • Seeks improvements leading either to a better product or a product which can be more economically produced.
  • 51. Environmentally 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
  • 52. “ Green” Manufacturing
    • Make products recyclable
    • Use recycled materials
    • Use less harmful ingredients
    • Use lighter components
    • Use less energy
    • Use less material
  • 53. Time-based Competition
    • Product life cycles are becoming shorter.
    •  Faster developers of new products gain on slower developers and obtain a competitive advantage
  • 54. Product Development Continuum External Development Strategies Alliances Joint Ventures Purchase Technology or Expertise by Acquiring the Developer Internal Development Strategies Migrations of Existing Products Enhancement to Existing Products New Internally Developed Products Internal  ----------------------Cost of Product Development ---------------------  Shared Lengthy  --------------------Speed of Product Development---------------  Rapid and/or Existing High  ------------------------- Risk of Product Development -----------------------  Shared
  • 55.
    • Engineering drawing
      • Shows dimensions, tolerances, & materials
      • Shows codes for Group Technology
    • Bill of Material
      • Lists components, quantities & where used
      • Shows product structure
    Product Documents © 1984-1994 T/Maker Co.
  • 56. Monterey Jack
    • (a) U.S. grade AA. Monterey cheese shall conform to the following requirements:
      • (1)Flavor. Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feed flavor.
      • (2)Body and texture. A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes
      • (3)Color. Shall have a natural, uniform, bright and attractive appearance.
      • (4)Finish and appearance - bandaged and paraffin-dipped. The rind shall be sound, firm, and smooth providing a good protection to the cheese
      • Code of Federal Regulation, Parts 53 to 109,. Revised as of Jan. 1, 1985, General Service Administration
  • 57. Engineering Drawing Example
  • 58. Engineering Drawings - Show Dimensions, Tolerances, etc.
  • 59. Bill of Material Example © 1995 Corel Corp.
  • 60.                                                                                           Bill of Materials – Manufacturing Plant and Fast-Food Restaurant Bill of Material for a Panel Weldment   Hard Rock Café’s Hickory BBQ Bacon Cheeseburger Number Description Qty Description Qty A60-71 Panel Weldm’t 1 Bun Hamburger Patty Cheddar Cheese Bacon BBQ Onions Hickory BBQ Sauce Burger Set Lettuce Tomato Red Onion Pickle French Fries Seasoned Salt 11-inch Plate HRC Flag 1 8 oz. 2 slices 2 strips ½ cup 1 oz.   1 leaf 1 slice 4 rings 1 slice 5 oz. 1 tsp 1 1 A 60-7 R 60-17 R 60-428 P 60-2 Lower Roller Assembly Roller Pin Locknet 1 1 1 1 60-72 R 60-57-1 A 60-4 02-50-1150 Guide Assem. Rear Support Angle Roller Assem. Bolt 1 1 1 1 A 60-73 A 60-74 R 60-99 02-50-1150 Guide Assm, Front Support Weldm’t Wear Plate Bolt 1 1 1 1
  • 61. Make-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
  • 62.
    • Parts grouped into families
      • Similar, more standardized parts
    • Uses coding system
      • Describes processing & physical characteristics
    • Part families produced in manufacturing cells
      • Mini-assembly lines
    Group Technology Characteristics © 1984-1994 T/Maker Co.
  • 63. Group Technology Code Example Product Code: 1 5 3 1 Part function (round rod) Material (steel) Max. length (50 < L < 150) Primary machine (lathe) Round Rod 112mm 60mm 4mm x 45° chamfer 80mm
  • 64. Group Technology Schemes Enable Grouping of Parts
  • 65.
    • 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 Benefits
  • 66. Production Documents
    • Assembly Drawing
    • Assembly chart
    • Route sheet
    • Work order
  • 67.
    • Shows exploded view of product
    Assembly Drawing Head Neck Handle End Cap
  • 68. Assembly Chart for A Tuna Sandwich 1 2 3 SA1 A1 A2 Tuna Fish Mayonnaise Bread Tuna Assy FG Sandwich
  • 69. Assembly Drawing and Assembly Chart
  • 70. Route Sheet
    • Lists all operations
  • 71. Work Order Dept Oper Date Work Order Approved: JM Manufacturing Authorizes producing a given item, usually to a schedule
  • 72. Engineering Change Notice (ECN)
    • A correction or modification of an engineering drawing or bill of material
  • 73. Configuration 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
  • 74. Service Design - Nature of Customer Participation
  • 75. Improving Customer Relations at a 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.
  • 76. Moment-of-Truth at a Computer Company Experience Detractors I had to call more than once to get through. A recording spoke to me rather than a person While on hold, I get silence,and wonder if I am disconnected. The operator sounded like he was reading a form of routine questions. The operator sounded uninterested I felt the operator rushed me. Standard Expectations Only one local number needs to be dialed I never get a busy signal I get a human being to answer my call quickly and he or she is pleasant and responsive to my problem A timely resolution to my problem is offered The operator is able to explain to me what I can expect to take place Experience Enhancers The operator was sincerely concerned and apologetic about my problem He asked intelligent questions that allowed me to feel confident in his abilities The operator offered various times to have work done, to suit my schedule Ways to avoid future problems were suggested
  • 77. Application of Decision Trees to Product Design
    • Particularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes.
    • Considerations:
      • Include all possible alternatives and states of nature - including “doing nothing”
      • Enter payoffs at end of branch
      • Approach determining expected values by “pruning” tree
  • 78. Transition to Production
    • First issue: knowing when to move to production!
    • Second: must view product development as evolutionary, not responsibility of single individual/department
    • Third: expect to need a trial production period to work the bugs out
    • Fourth: recognize that responsibility must also transition