Heizer om10 ch05-designh good and services

823 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
823
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
63
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Heizer om10 ch05-designh good and services

  1. 1. 10/16/2010 Design of Goods Outline 5 and Services Global Company Profile: Regal Marine Goods and Services Selection PowerPoint presentation to accompany Heizer and Render Product Strategy Options Support Operations Management, 10e Competitive Advantage Principles of Operations Management, 8e PowerPoint slides by Jeff Heyl Product Life Cycles Life Cycle and Strategy Product-by-Value Analysis© 2011 Pearson Education, Inc. publishing as Prentice Hall 5-1 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5-2 Outline - Continued Outline - Continued Generating New Products Issues for Product Design New Product Opportunities Robust Design Importance of New Products Modular Design Product Development p Computer-Aided Design (CAD) Product Development System Computer-Aided Manufacturing Quality Function Deployment (QFD) (CAM) Organizing for Product Development Virtual Reality Technology Manufacturability and Value Value Analysis Engineering© 2011 Pearson Education, Inc. publishing as Prentice Hall 5-3 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5-4 Outline - Continued Outline - Continued Ethics, Environmentally Friendly Defining a Product Design, and Sustainability Make-or-Buy Decisions Systems and Life Cycle Perspectives Group Technology Laws and Industry Standards y Documents For Production Time-Based Competition Product Life-Cycle Management Purchasing Technology by Acquiring (PLM) a Firm Service Design Joint Ventures Documents for Services Alliances© 2011 Pearson Education, Inc. publishing as Prentice Hall 5-5 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5-6 1
  2. 2. 10/16/2010 Outline - Continued Learning Objectives Application of Decision Trees to When you complete this chapter you should be able to : Product Design Transition to Production 1. Define product life cycle 2. Describe a product development system 2 D ib d td l t t 3. Build a house of quality 4. Describe how time-based competition is implemented© 2011 Pearson Education, Inc. publishing as Prentice Hall 5-7 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5-8 Learning Objectives Regal Marine When you complete this chapter you should be able to : Global market 5. Describe how products and services are 3-dimensional CAD system defined by operations management y p g Reduced product development time 6. Describe the documents needed for Reduced problems with tooling production Reduced problems in production 7. Describe customer participation in the design and production of services Assembly line production 8. Apply decision trees to product issues JIT© 2011 Pearson Education, Inc. publishing as Prentice Hall 5-9 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 10 Product Decision Product Decision The good or service the organization The objective of the product decision provides society is to develop and implement a Top organizations typically focus on product strategy that meets the core products p demands of the marketplace with a d d f th k t l ith competitive advantage Customers buy satisfaction, not just a physical good or particular service Fundamental to an organizations strategy with implications throughout the operations function© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 11 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 12 2
  3. 3. 10/16/2010 Product Strategy Options Product Life Cycles Differentiation May be any length from a few Shouldice Hospital hours to decades Low cost The operations function must Taco Bell be able to introduce new Rapid response products successfully Toyota© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 13 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 14 Product Life Cycles Product Life Cycle Cost of development and production Introductory Phase Sales, cost, and cash flow Sales revenue Net revenue (profit) Fine tuning may warrant unusual expenses for a Cash flow 1. Research Negative 2. Product development cash flow Loss 3. Process modification and enhancement Introduction Growth Maturity Decline 4. Supplier development Figure 5.1© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 15 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 16 Product Life Cycle Product Life Cycle Growth Phase Maturity Phase Product design begins to Competitors now established stabilize High volume, innovative volume Effective forecasting of production may be needed capacity becomes necessary Improved cost control, Adding or enhancing capacity reduction in options, paring may be necessary down of product line© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 17 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 18 3
  4. 4. 10/16/2010 Product Life Cycle Product Life Cycle Costs 100 – Costs committed Decline Phase 80 – Percent of total cost Unless product makes a 60 – special contribution to the Costs incurred organization, must plan to 40 – terminate offering 20 – Ease of change 0– Concept Detailed Manufacturing Distribution, design design service, prototype and disposal© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 19 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 20 Product-by- Product-by-Value Analysis Product-by- Product-by-Value Analysis Lists products in descending Sam’s Furniture Factory order of their individual dollar Individual Total Annual contribution to the firm Contribution ($) Contribution ($) Lists the total annual dollar Love Seat $102 $36,720 contribution of the product Arm Chair $87 $51,765 Helps management evaluate Foot Stool $12 $6,240 alternative strategies Recliner $136 $51,000© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 21 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 22 New Product Opportunities Importance of New Products Percentage of Sales from New Products 1. Understanding the 50% customer 40% 2. Economic change 30% 3. 3 Sociological and demographic change 20% 4. Technological change 10% 5. Political/legal change 6. Market practice, professional Industry Top Middle Bottom standards, suppliers, distributors leader third third third Position of Firm in Its Industry Figure 5.2a© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 23 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 24 4
  5. 5. 10/16/2010 Disney Attendance Cisco Product Revenue Magic Kingdom Epcot Figure 5.2b Other Figure 5.2c 50 Disney-Hollywood 35 Switches Animal Kingdom Routers 30 40 tors 25 ars Billions of dolla Millions of visit 30 20 15 20 10 10 5 0 0 ‘93 ‘95 ‘97 ‘99 ‘01 ‘03 ‘05 ‘07 ‘02 ‘03 ‘04 ‘05 ‘06 ’07 ‘08© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 25 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 26 Product Development Quality Function Ideas System Deployment Ability Figure 5.3 1. Identify customer wants Customer Requirements 2. Identify how the good/service will satisfy Functional Specifications customer wants Product Specifications Scope for 3. Relate 3 R l t customer wants to product hows t t t d th Scope of design and product Design Review engineering 4. Identify relationships between the firm’s hows development teams team 5. Develop importance ratings Test Market 6. Evaluate competing products Introduction 7. Compare performance to desirable technical Evaluation attributes© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 27 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 28 QFD House of Quality House of Quality Example Interrelationships Customer importance ratings How to satisfy Your team has been charged with customer wants designing a new camera for Great Cameras, Inc. ment itive What the assessm Relationship The first action is Competi customer matrix wants to construct a House of Quality Target values Weighted rating Technical evaluation© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 29 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 30 5
  6. 6. 10/16/2010 Interrelationships Interrelationships House of Quality Example How to Satisfy Customer Wants House of Quality Example How to Satisfy Customer Wants Competitors Competitors Analysis of Analysis of What the What the Relationship Relationship Customer Customer Matrix Matrix Wants Wants What the Technical Technical uirements Attributes and Attributes and Evaluation Evaluation customer wants Customer Aluminum components importance rating Low electricity requ (5 = highest) Ergonomic design Lightweight 3 Auto exposure How to Satisfy Easy to use 4 Customer Wants Paint pallet Auto focus Reliable 5 Easy to hold steady 2 Color correction 1© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 31 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 32 Interrelationships Interrelationships House of Quality Example How to Satisfy Customer Wants House of Quality Example How to Satisfy Customer Wants Competitors Competitors Analysis of Analysis of What the What the Relationship Relationship Customer Customer Matrix Matrix Wants Wants High relationship Technical Attributes and Technical Attributes and Evaluation Evaluation Medium relationship rements Relationships Low relationship between the things we can do nts Aluminum componen Low electricity requir Lightweight 3 Ergonomic design Easy to use 4 Reliable 5 Auto exposure Easy to hold steady 2 Paint pallet Color corrections 1 Auto focus Relationship matrix© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 33 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 34 Interrelationships Interrelationships How to Satisfy House of Quality Example How to Satisfy Customer Wants House of Quality Example Customer Wants Competitors Analysis of What the Relationship Competitors Analysis of Customer What the Matrix Relationship Wants Customer Matrix Wants Technical Attributes and Company B Company A Technical Evaluation Attributes and Evaluation How well do Lightweight 3 competing products Easy to use 4 meet customer wants C C Reliable 5 Lightweight 3 G P Easy to hold steady 2 Easy to use 4 G P Color corrections 1 Reliable 5 F G Our importance ratings 22 9 27 27 32 25 Easy to hold steady 2 G P Color corrections 1 P P Weighted rating Our importance ratings 22 5© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 35 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 36 6
  7. 7. 10/16/2010 Interrelationships How to Satisfy House of Quality Example Customer Wants House of Quality Example Competitors Analysis of Low electricity requirements What the Relationship Customer Matrix Wants Aluminum components Ergonomic design Technical Attributes and Auto exposure Failure 1 per 10,000 Evaluation Company A Company B Paint pallet Auto focus Completed Panel ranking House of Lightweight Easy to use 3 4 G P G P Target g Quality p Reliable R li bl 5 F G values 2 circuits Easy to hold steady 2 G P (Technical Color correction 1 P P 2’ to ∞ attributes) 0.5 A Our importance ratings 22 9 27 27 32 25 75% Failure 1 per 10,000 Target values Panel ranking Company A 0.7 60% yes 1 ok G (Technical attributes) 2 circuits Technical 2’ to ∞ evaluation Company B 0.6 50% yes 2 ok F 0.5 A 75% Us 0.5 75% yes 2 ok G Company A Technical Company B 0.7 60% yes 0.6 50% yes 1 2 ok ok G F evaluation Us 0.5 75% yes 2 ok G© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 37 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 38 House of Quality Sequence Organizing for Product Development Deploying resources through the organization in response to Historically – distinct departments customer requirements Duties and responsibilities are Quality plan l defined Production process Difficult to foster forward thinking Production Specific House process components components House 4 A Champion Specific Design characteristics characteristics 3 House Design 2 Product manager drives the product requirements Customer House 1 through the product development system and related organizations Figure 5.4© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 39 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 40 Organizing for Product Manufacturability and Value Engineering Development Team approach Benefits: Cross functional – representatives 1. Reduced complexity of products from all disciplines or functions 2. Reduction of environmental impact Product development teams, design 3. Additional standardization of products 3 Addi i l d di i f d for manufacturability teams, value 4. Improved functional aspects of product engineering teams 5. Improved job design and job safety Japanese “whole organization” 6. Improved maintainability (serviceability) of the product approach 7. Robust design No organizational divisions© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 41 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 42 7
  8. 8. 10/16/2010 Cost Reduction of a Bracket Issues for Product via Value Engineering Development Robust design Modular design Computer-aided Computer aided design (CAD) Computer-aided manufacturing (CAM) Virtual reality technology Value analysis Environmentally friendly design Figure 5.5© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 43 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 44 Robust Design Modular Design Products designed in easily Product is designed so that small segmented components variations in production or assembly do not adversely affect Adds flexibility to both p y production the product and marketing Typically results in lower cost and Improved ability to satisfy customer higher quality requirements© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 45 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 46 Computer Aided Design Extensions of CAD (CAD) Design for Manufacturing and Assembly (DFMA) Using computers to design products and Solve manufacturing problems during the prepare engineering design stage documentation 3D 3-D Object Modeling Shorter development Small prototype cycles, improved development accuracy, lower cost CAD through the Information and internet designs can be International data deployed worldwide exchange through STEP© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 47 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 48 8
  9. 9. 10/16/2010 Computer- Computer-Aided Benefits of CAD/CAM Manufacturing (CAM) 1. Product quality Utilizing specialized computers and program to control 2. Shorter design time manufacturing equipment f t i i t 3. Production cost reductions Often driven by the CAD system 4. Database availability (CAD/CAM) 5. New range of capabilities© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 49 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 50 Virtual Reality Technology Value Analysis Computer technology used to Focuses on design improvement develop an interactive, 3-D model of during production a product from the basic CAD data Seeks improvements leading either p g Allows people to ‘see’ the finished All l t ‘ ’ th fi i h d to a better product or a product design before a physical model is which can be produced more built economically with less Very effective in large-scale designs environmental impact such as plant layout© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 51 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 52 Ethics, Environmentally Ethics, Environmentally Friendly Designs, and Friendly Designs, and Sustainability Sustainability It is possible to enhance productivity Design and deliver goods and services in an Polyester film and shoes environmentally and ethically responsible manner Production In OM, sustainability means ecological Prevention in production and stability packaging Conservation and renewal of resources Destruction through the entire product life cycle Recycling in automobiles© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 53 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 54 9
  10. 10. 10/16/2010 Ethics, Environmentally Friendly Designs, and The Ethical Approach Sustainability View product design from a systems perspective Inputs, processes Inputs processes, outputs Costs to the firm/costs to society Consider the entire life cycle of the product© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 55 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 56 The Ethical Approach Guidelines for Environmentally Friendly Designs Goals 1. Developing safe end environmentally 1. Make products recyclable sound practices 2. Use recycled materials 2. Minimizing waste of resources 3. Reducing environmental liabilities 3. Use less harmful ingredients 4. Increasing cost-effectiveness of 4. Use lighter components complying with environmental 5. Use less energy regulations 5. Begin recognized as a good 6. Use less material corporate citizen© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 57 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 58 Laws and Industry Laws and Industry Standards Standards For Design … For Manufacture/Assembly … Food and Drug Administration Occupational Safety and Health Administration Consumer Products Safety Commission Environmental Protection Agency National Highway Safety Administration Professional ergonomic standards Children’s Product Safety Act State and local laws dealing with employment standards, discrimination, etc.© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 59 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 60 10
  11. 11. 10/16/2010 Laws and Industry Time- Time-Based Competition Standards Product life cycles are becoming For Disassembly/Disposal … shorter and the rate of technological change is Vehicle Recycling Partnership increasing Increasingly rigid laws worldwide Developing new products faster can result in a competitive advantage© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 61 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 62 Product Development Acquiring Technology Continuum EXTERNAL DEVELOPMENT STRATEGIES Alliances By Purchasing a Firm Figure 5.6 Joint ventures Speeds development Purchase technology or expertise by acquiring the developer Issues concern the fit between the acquired organization and product and the host INTERNAL DEVELOPMENT STRATEGIES Through Joint Ventures Migrations of existing products Enhancements to existing products Both organizations learn New internally developed products Risks are sharedInternal Cost of product development Shared Through AlliancesLengthy Speed of product development Rapid and/ or Existing Cooperative agreements betweenHigh Risk of product development Shared independent organizations© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 63 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 64 Defining The Product Product Documents First definition is in terms of Engineering drawing functions Shows dimensions, tolerances, and materials Rigorous specifications are developed during the design phase Shows codes for Group Technology Manufactured products will have an Bill of Material engineering drawing Lists components, quantities and where used Bill of material (BOM) lists the components of a product Shows product structure© 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 65 © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 - 66 11

×