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Heizer05
1.
© 2008 Prentice
Hall, Inc. 5 – 1 Operations Management Chapter 5 –Chapter 5 – Design of GoodsDesign of Goods and Servicesand Services PowerPoint presentation to accompanyPowerPoint presentation to accompany Heizer/RenderHeizer/Render Principles of Operations Management, 7ePrinciples of Operations Management, 7e Operations Management, 9eOperations Management, 9e
2.
© 2008 Prentice
Hall, Inc. 5 – 2 OutlineOutline Global Company Profile: RegalGlobal Company Profile: Regal MarineMarine Goods and Services SelectionGoods and Services Selection Product Strategy Options SupportProduct Strategy Options Support Competitive AdvantageCompetitive Advantage Product Life CyclesProduct Life Cycles Life Cycle and StrategyLife Cycle and Strategy Product-by-Value AnalysisProduct-by-Value Analysis
3.
© 2008 Prentice
Hall, Inc. 5 – 3 Outline - ContinuedOutline - Continued Generating New ProductsGenerating New Products New Product OpportunitiesNew Product Opportunities Importance of New ProductsImportance of New Products Product DevelopmentProduct Development Product Development SystemProduct Development System Quality Function Deployment (QFD)Quality Function Deployment (QFD) Organizing for Product DevelopmentOrganizing for Product Development Manufacturability and ValueManufacturability and Value EngineeringEngineering
4.
© 2008 Prentice
Hall, Inc. 5 – 4 Outline - ContinuedOutline - Continued Issues for Product DesignIssues for Product Design Robust DesignRobust Design Modular DesignModular Design Computer-Aided Design (CAD)Computer-Aided Design (CAD) Computer-Aided Manufacturing (CAM)Computer-Aided Manufacturing (CAM) Virtual Reality TechnologyVirtual Reality Technology Value AnalysisValue Analysis Ethics and Environmentally FriendlyEthics and Environmentally Friendly DesignDesign
5.
© 2008 Prentice
Hall, Inc. 5 – 5 Outline - ContinuedOutline - Continued Time-Based CompetitionTime-Based Competition Purchasing Technology by AcquiringPurchasing Technology by Acquiring a Firma Firm Joint VenturesJoint Ventures AlliancesAlliances Defining a ProductDefining a Product Make-or-Buy DecisionsMake-or-Buy Decisions Group TechnologyGroup Technology
6.
© 2008 Prentice
Hall, Inc. 5 – 6 Outline - ContinuedOutline - Continued Documents For ProductionDocuments For Production Product Life-Cycle Management (PLM)Product Life-Cycle Management (PLM) Service DesignService Design Documents for ServicesDocuments for Services Application of Decision Trees toApplication of Decision Trees to Product DesignProduct Design Transition to ProductionTransition to Production
7.
© 2008 Prentice
Hall, Inc. 5 – 7 Learning ObjectivesLearning Objectives 1.1. Define product life cycleDefine product life cycle 2.2. Describe a product development systemDescribe a product development system 3.3. Build a house of qualityBuild a house of quality 4.4. Describe how time-based competition isDescribe how time-based competition is implementedimplemented When you complete this chapter you shouldWhen you complete this chapter you should be able to :be able to :
8.
© 2008 Prentice
Hall, Inc. 5 – 8 Learning ObjectivesLearning Objectives 5.5. Describe how products and servicesDescribe how products and services are definedare defined 6.6. Prepare the documents needed forPrepare the documents needed for productionproduction 7.7. Describe customer participation in theDescribe customer participation in the design and production of servicesdesign and production of services 8.8. Apply decision trees to product issuesApply decision trees to product issues When you complete this chapter you shouldWhen you complete this chapter you should be able to :be able to :
9.
© 2008 Prentice
Hall, Inc. 5 – 9 Regal MarineRegal Marine Global marketGlobal market 3-dimensional CAD system3-dimensional CAD system Reduced product development timeReduced product development time Reduced problems with toolingReduced problems with tooling Reduced problems in productionReduced problems in production Assembly line productionAssembly line production JITJIT
10.
© 2008 Prentice
Hall, Inc. 5 – 10 The good or service theThe good or service the organization provides societyorganization provides society Top organizations typically focus onTop organizations typically focus on core productscore products Customers buy satisfaction, not justCustomers buy satisfaction, not just a physical good or particular servicea physical good or particular service Fundamental to an organization'sFundamental to an organization's strategy with implicationsstrategy with implications throughout the operations functionthroughout the operations function Product DecisionProduct Decision
11.
© 2008 Prentice
Hall, Inc. 5 – 11 Product Strategy OptionsProduct Strategy Options DifferentiationDifferentiation Shouldice HospitalShouldice Hospital Low costLow cost Taco BellTaco Bell Rapid responseRapid response ToyotaToyota
12.
© 2008 Prentice
Hall, Inc. 5 – 12 Product Life CyclesProduct Life Cycles May be any length from a fewMay be any length from a few hours to decadeshours to decades The operations function mustThe operations function must be able to introduce newbe able to introduce new products successfullyproducts successfully
13.
© 2008 Prentice
Hall, Inc. 5 – 13 Product Life CyclesProduct Life Cycles Negative cash flow IntroductionIntroduction GrowthGrowth MaturityMaturity DeclineDecline Sales,cost,andcashflowSales,cost,andcashflow Cost of development and productionCost of development and production CashCash flowflow Net revenue (profit)Net revenue (profit) Sales revenueSales revenue LossLoss Figure 5.1Figure 5.1
14.
© 2008 Prentice
Hall, Inc. 5 – 14 Product Life CycleProduct Life Cycle IntroductionIntroduction Fine tuning may warrantFine tuning may warrant unusual expenses forunusual expenses for ResearchResearch Product developmentProduct development Process modification andProcess modification and enhancementenhancement Supplier developmentSupplier development
15.
© 2008 Prentice
Hall, Inc. 5 – 15 Product Life CycleProduct Life Cycle GrowthGrowth Product design begins toProduct design begins to stabilizestabilize Effective forecasting ofEffective forecasting of capacity becomes necessarycapacity becomes necessary Adding or enhancing capacityAdding or enhancing capacity may be necessarymay be necessary
16.
© 2008 Prentice
Hall, Inc. 5 – 16 Product Life CycleProduct Life Cycle MaturityMaturity Competitors now establishedCompetitors now established High volume, innovativeHigh volume, innovative production may be neededproduction may be needed Improved cost control,Improved cost control, reduction in options, paringreduction in options, paring down of product linedown of product line
17.
© 2008 Prentice
Hall, Inc. 5 – 17 Product Life CycleProduct Life Cycle DeclineDecline Unless product makes aUnless product makes a special contribution to thespecial contribution to the organization, must plan toorganization, must plan to terminate offeringterminate offering
18.
© 2008 Prentice
Hall, Inc. 5 – 18 Product Life Cycle CostsProduct Life Cycle Costs Costs incurredCosts incurred Costs committedCosts committed Ease of changeEase of change ConceptConcept DetailedDetailed ManufacturingManufacturing Distribution,Distribution, designdesign designdesign service,service, prototypeprototype and disposaland disposal PercentoftotalcostPercentoftotalcost 100 –100 – 80 –80 – 60 –60 – 40 –40 – 20 –20 – 0 –0 –
19.
© 2008 Prentice
Hall, Inc. 5 – 19 Product-by-Value AnalysisProduct-by-Value Analysis Lists products in descendingLists products in descending order of their individual dollarorder of their individual dollar contribution to the firmcontribution to the firm Lists the total annual dollarLists the total annual dollar contribution of the productcontribution of the product Helps management evaluateHelps management evaluate alternative strategiesalternative strategies
20.
© 2008 Prentice
Hall, Inc. 5 – 20 Product-by-Value AnalysisProduct-by-Value Analysis Individual Contribution ($) Total Annual Contribution ($) Love Seat $102 $36,720 Arm Chair $87 $51,765 Foot Stool $12 $6,240 Recliner $136 $51,000 Sam’s Furniture FactorySam’s Furniture Factory
21.
© 2008 Prentice
Hall, Inc. 5 – 21 New Product OpportunitiesNew Product Opportunities 1.1. Understanding theUnderstanding the customercustomer 2.2. Economic changeEconomic change 3.3. Sociological andSociological and demographic changedemographic change 4.4. Technological changeTechnological change 5.5. Political/legal changePolitical/legal change 6.6. Market practice, professionalMarket practice, professional standards, suppliers, distributorsstandards, suppliers, distributors Brainstorming is a useful tool
22.
© 2008 Prentice
Hall, Inc. 5 – 22 Importance of New ProductsImportance of New Products IndustryIndustry leaderleader TopTop thirdthird MiddleMiddle thirdthird BottomBottom thirdthird Figure 5.2Figure 5.2 Percentage of Sales from New ProductsPercentage of Sales from New Products 50% 40% 30% 20% 10% Position of Firm in Its IndustryPosition of Firm in Its Industry
23.
© 2008 Prentice
Hall, Inc. 5 – 23 5050 – 4040 – 3030 – 2020 – 1010 – 00 – Millions of visitorsMillions of visitors 8484 8686 8888 9090 9292 9494 9696 9898 0000 0202 0404 New Products at DisneyNew Products at Disney Magic KingdomMagic Kingdom Combined data only prior to 1993Combined data only prior to 1993 Disney-MGM StudiosDisney-MGM Studios EpcotEpcot Animal KingdomAnimal Kingdom Figure 5.2Figure 5.2
24.
© 2008 Prentice
Hall, Inc. 5 – 24 Scope of product development team Product DevelopmentProduct Development SystemSystem Scope for design and engineering teams Evaluation Introduction Test Market Functional Specifications Design Review Product Specifications Customer Requirements Ability Ideas Figure 5.3Figure 5.3
25.
© 2008 Prentice
Hall, Inc. 5 – 25 Quality FunctionQuality Function DeploymentDeployment Identify customer wantsIdentify customer wants Identify how the good/service will satisfyIdentify how the good/service will satisfy customer wantscustomer wants Relate customer wants to product howsRelate customer wants to product hows Identify relationships between the firm’s howsIdentify relationships between the firm’s hows Develop importance ratingsDevelop importance ratings Evaluate competing productsEvaluate competing products Compare performance to desirable technicalCompare performance to desirable technical attributesattributes
26.
© 2008 Prentice
Hall, Inc. 5 – 26 QFD House of QualityQFD House of Quality Relationship matrix How to satisfy customer wants Interrelationships Competitive assessment Technical evaluation Target values What the customer wants CustomerCustomer importanceimportance ratingsratings WeightedWeighted ratingrating
27.
© 2008 Prentice
Hall, Inc. 5 – 27 House of Quality ExampleHouse of Quality Example Your team has been charged withYour team has been charged with designing a new camera for Greatdesigning a new camera for Great Cameras, Inc.Cameras, Inc. The first action isThe first action is to construct ato construct a House of QualityHouse of Quality
28.
© 2008 Prentice
Hall, Inc. 5 – 28 House of Quality ExampleHouse of Quality Example CustomerCustomer importanceimportance ratingrating (5 = highest)(5 = highest) Lightweight 3 Easy to use 4 Reliable 5 Easy to hold steady 2 Color correction 1 What theWhat the customercustomer wantswants What the Customer Wants Relationship Matrix Technical Attributes and Evaluation How to Satisfy Customer Wants Interrelationships Analysisof Competitors
29.
© 2008 Prentice
Hall, Inc. 5 – 29 House of Quality ExampleHouse of Quality ExampleWhat the Customer Wants Relationship Matrix Technical Attributes and Evaluation How to Satisfy Customer Wants Interrelationships Analysisof Competitors Lowelectricityrequirements Aluminumcomponents Autofocus Autoexposure Paintpallet Ergonomicdesign How to Satisfy Customer Wants
30.
© 2008 Prentice
Hall, Inc. 5 – 30 Lightweight 3 Easy to use 4 Reliable 5 Easy to hold steady 2 Color corrections 1 House of Quality ExampleHouse of Quality ExampleWhat the Customer Wants Relationship Matrix Technical Attributes and Evaluation How to Satisfy Customer Wants Interrelationships Analysisof Competitors High relationshipHigh relationship Medium relationshipMedium relationship Low relationshipLow relationship Relationship matrixRelationship matrix
31.
© 2008 Prentice
Hall, Inc. 5 – 31 House of Quality ExampleHouse of Quality ExampleWhat the Customer Wants Relationship Matrix Technical Attributes and Evaluation How to Satisfy Customer Wants Interrelationships Analysisof Competitors Lowelectricityrequirements Aluminumcomponents Autofocus Autoexposure Paintpallet Ergonomicdesign RelationshipsRelationships between thebetween the things we can dothings we can do
32.
© 2008 Prentice
Hall, Inc. 5 – 32 House of Quality ExampleHouse of Quality Example WeightedWeighted ratingrating What the Customer Wants Relationship Matrix Technical Attributes and Evaluation How to Satisfy Customer Wants Interrelationships Analysisof Competitors Lightweight 3 Easy to use 4 Reliable 5 Easy to hold steady 2 Color corrections 1 Our importance ratings 22 9 27 27 32 25
33.
© 2008 Prentice
Hall, Inc. 5 – 33 House of Quality ExampleHouse of Quality Example CompanyA CompanyB G P G P F G G P P P Lightweight 3 Easy to use 4 Reliable 5 Easy to hold steady 2 Color corrections 1 Our importance ratings 22 5 How well doHow well do competing productscompeting products meet customer wantsmeet customer wants What the Customer Wants Relationship Matrix Technical Attributes and Evaluation How to Satisfy Customer Wants Interrelationships Analysisof Competitors
34.
© 2008 Prentice
Hall, Inc. 5 – 34 House of Quality ExampleHouse of Quality ExampleWhat the Customer Wants Relationship Matrix Technical Attributes and Evaluation How to Satisfy Customer Wants Interrelationships Analysisof Competitors Target values (Technical attributes) Technical evaluation Company A 0.7 60% yes 1 ok G Company B 0.6 50% yes 2 ok F Us 0.5 75% yes 2 ok G 0.5A 75% 2’to∞ 2circuits Failure1per10,000 Panelranking
35.
© 2008 Prentice
Hall, Inc. 5 – 35 House of Quality ExampleHouse of Quality Example CompletedCompleted House ofHouse of QualityQuality Lightweight 3 Easy to use 4 Reliable 5 Easy to hold steady 2 Color correction 1 Our importance ratings Lowelectricityrequirements Aluminumcomponents Autofocus Autoexposure Paintpallet Ergonomicdesign CompanyA CompanyB G P G P F G G P P P Target values (Technical attributes) Technical evaluation Company A 0.7 60% yes 1 ok G Company B 0.6 50% yes 2 ok F Us 0.5 75% yes 2 ok G 0.5A 75% 2’to∞ 2circuits Failure1per10,000 Panelranking 22 9 27 27 32 25
36.
© 2008 Prentice
Hall, Inc. 5 – 36 House of Quality SequenceHouse of Quality Sequence Design characteristics Specific components House 2 Customer requirements Design characteristics House 1 Specific components Production process House 3 Production process Quality plan House 4 Figure 5.4Figure 5.4 Deploying resources through theDeploying resources through the organization in response toorganization in response to customer requirementscustomer requirements
37.
© 2008 Prentice
Hall, Inc. 5 – 37 Organizing for ProductOrganizing for Product DevelopmentDevelopment Historically – distinct departmentsHistorically – distinct departments Duties and responsibilities are definedDuties and responsibilities are defined Difficult to foster forward thinkingDifficult to foster forward thinking A ChampionA Champion Product manager drives the productProduct manager drives the product through the product developmentthrough the product development system and related organizationssystem and related organizations
38.
© 2008 Prentice
Hall, Inc. 5 – 38 Organizing for ProductOrganizing for Product DevelopmentDevelopment Team approachTeam approach Cross functional – representativesCross functional – representatives from all disciplines or functionsfrom all disciplines or functions Product development teams, designProduct development teams, design for manufacturability teams, valuefor manufacturability teams, value engineering teamsengineering teams Japanese “whole organization”Japanese “whole organization” approachapproach No organizational divisionsNo organizational divisions
39.
© 2008 Prentice
Hall, Inc. 5 – 39 Manufacturability andManufacturability and Value EngineeringValue Engineering Benefits:Benefits: 1.1. Reduced complexity of productsReduced complexity of products 2.2. Additional standardization of productsAdditional standardization of products 3.3. Improved functional aspects of productImproved functional aspects of product 4.4. Improved job design and job safetyImproved job design and job safety 5.5. Improved maintainability (serviceability)Improved maintainability (serviceability) of the productof the product 6.6. Robust designRobust design
40.
© 2008 Prentice
Hall, Inc. 5 – 40 Cost Reduction of a BracketCost Reduction of a Bracket via Value Engineeringvia Value Engineering Figure 5.5Figure 5.5
41.
© 2008 Prentice
Hall, Inc. 5 – 41 Issues for ProductIssues for Product DevelopmentDevelopment Robust designRobust design Modular designModular design Computer-aided design (CAD)Computer-aided design (CAD) Computer-aided manufacturing (CAM)Computer-aided manufacturing (CAM) Virtual reality technologyVirtual reality technology Value analysisValue analysis Environmentally friendly designEnvironmentally friendly design
42.
© 2008 Prentice
Hall, Inc. 5 – 42 Robust DesignRobust Design Product is designed so that smallProduct is designed so that small variations in production orvariations in production or assembly do not adversely affectassembly do not adversely affect the productthe product Typically results in lower cost andTypically results in lower cost and higher qualityhigher quality
43.
© 2008 Prentice
Hall, Inc. 5 – 43 Modular DesignModular Design Products designed in easilyProducts designed in easily segmented componentssegmented components Adds flexibility to both productionAdds flexibility to both production and marketingand marketing Improved ability to satisfy customerImproved ability to satisfy customer requirementsrequirements
44.
© 2008 Prentice
Hall, Inc. 5 – 44 Using computers toUsing computers to design products anddesign products and prepare engineeringprepare engineering documentationdocumentation Shorter developmentShorter development cycles, improvedcycles, improved accuracy, lower costaccuracy, lower cost Information andInformation and designs can bedesigns can be deployed worldwidedeployed worldwide Computer Aided DesignComputer Aided Design (CAD)(CAD)
45.
© 2008 Prentice
Hall, Inc. 5 – 45 Design for Manufacturing and AssemblyDesign for Manufacturing and Assembly (DFMA)(DFMA) Solve manufacturing problems during theSolve manufacturing problems during the design stagedesign stage 3-D Object Modeling3-D Object Modeling Small prototypeSmall prototype developmentdevelopment CAD through theCAD through the internetinternet International dataInternational data exchange through STEPexchange through STEP Extensions of CADExtensions of CAD
46.
© 2008 Prentice
Hall, Inc. 5 – 46 Computer-AidedComputer-Aided Manufacturing (CAM)Manufacturing (CAM) Utilizing specialized computersUtilizing specialized computers and program to controland program to control manufacturing equipmentmanufacturing equipment Often driven by the CAD systemOften driven by the CAD system (CAD/CAM)(CAD/CAM)
47.
© 2008 Prentice
Hall, Inc. 5 – 47 1.1. Product qualityProduct quality 2.2. Shorter design timeShorter design time 3.3. Production cost reductionsProduction cost reductions 4.4. Database availabilityDatabase availability 5.5. New range of capabilitiesNew range of capabilities Benefits of CAD/CAMBenefits of CAD/CAM
48.
© 2008 Prentice
Hall, Inc. 5 – 48 Virtual Reality TechnologyVirtual Reality Technology Computer technology used toComputer technology used to develop an interactive, 3-D model ofdevelop an interactive, 3-D model of a product from the basic CAD dataa product from the basic CAD data Allows people to ‘see’ the finishedAllows people to ‘see’ the finished design before a physical model isdesign before a physical model is builtbuilt Very effective in large-scale designsVery effective in large-scale designs such as plant layoutsuch as plant layout
49.
© 2008 Prentice
Hall, Inc. 5 – 49 Value AnalysisValue Analysis Focuses on design improvementFocuses on design improvement during productionduring production Seeks improvements leading eitherSeeks improvements leading either to a better product or a productto a better product or a product which can be produced morewhich can be produced more economicallyeconomically
50.
© 2008 Prentice
Hall, Inc. 5 – 50 Ethics and EnvironmentallyEthics and Environmentally Friendly DesignsFriendly Designs It is possible to enhance productivity,It is possible to enhance productivity, drive down costs, and preservedrive down costs, and preserve resourcesresources Effective at any stage of the product life cycleEffective at any stage of the product life cycle DesignDesign ProductionProduction DestructionDestruction
51.
© 2008 Prentice
Hall, Inc. 5 – 51 The Ethical ApproachThe Ethical Approach View product design from aView product design from a systems perspectivesystems perspective Inputs, processes, outputsInputs, processes, outputs Costs to the firm/costs toCosts to the firm/costs to societysociety Consider the entire life cycle ofConsider the entire life cycle of the productthe product
52.
© 2008 Prentice
Hall, Inc. 5 – 52 Goals for Ethical andGoals for Ethical and Environmentally FriendlyEnvironmentally Friendly DesignsDesigns 1.1. Develop safe and more environmentallyDevelop safe and more environmentally sound productssound products 2.2. Minimize waste of raw materials and energyMinimize waste of raw materials and energy 3.3. Reduce environmental liabilitiesReduce environmental liabilities 4.4. Increase cost-effectiveness of complyingIncrease cost-effectiveness of complying with environmental regulationswith environmental regulations 5.5. Be recognized as a good corporate citizenBe recognized as a good corporate citizen
53.
© 2008 Prentice
Hall, Inc. 5 – 53 Guidelines for EnvironmentallyGuidelines for Environmentally Friendly DesignsFriendly Designs 1.1. Make products recyclableMake products recyclable 2.2. Use recycled materialsUse recycled materials 3.3. Use less harmful ingredientsUse less harmful ingredients 4.4. Use lighter componentsUse lighter components 5.5. Use less energyUse less energy 6.6. Use less materialUse less material
54.
© 2008 Prentice
Hall, Inc. 5 – 54 Legal and IndustryLegal and Industry StandardsStandards For Design …For Design … Federal Drug AdministrationFederal Drug Administration Consumer Products Safety CommissionConsumer Products Safety Commission National Highway Safety AdministrationNational Highway Safety Administration Children’s Product Safety ActChildren’s Product Safety Act
55.
© 2008 Prentice
Hall, Inc. 5 – 55 Legal and IndustryLegal and Industry StandardsStandards For Manufacture/Assembly …For Manufacture/Assembly … Occupational Safety and HealthOccupational Safety and Health AdministrationAdministration Environmental Protection AgencyEnvironmental Protection Agency Professional ergonomic standardsProfessional ergonomic standards State and local laws dealing withState and local laws dealing with employment standards, discrimination, etc.employment standards, discrimination, etc.
56.
© 2008 Prentice
Hall, Inc. 5 – 56 Legal and IndustryLegal and Industry StandardsStandards For Disassembly/Disposal …For Disassembly/Disposal … Vehicle Recycling PartnershipVehicle Recycling Partnership Increasingly rigid laws worldwideIncreasingly rigid laws worldwide
57.
© 2008 Prentice
Hall, Inc. 5 – 57 Time-Based CompetitionTime-Based Competition Product life cycles are becomingProduct life cycles are becoming shorter and the rate ofshorter and the rate of technological change istechnological change is increasingincreasing Developing new products fasterDeveloping new products faster can result in a competitivecan result in a competitive advantageadvantage
58.
© 2008 Prentice
Hall, Inc. 5 – 58 Product DevelopmentProduct Development ContinuumContinuumExternal Development StrategiesExternal Development Strategies AlliancesAlliances Joint venturesJoint ventures Purchase technology or expertisePurchase technology or expertise by acquiring the developerby acquiring the developer Internal Development StrategiesInternal Development Strategies Migrations of existing productsMigrations of existing products Enhancements to existing productsEnhancements to existing products New internally developed productsNew internally developed products InternalInternal Cost of product developmentCost of product development SharedShared LengthyLengthy Speed of product developmentSpeed of product development Rapid and/Rapid and/ or Existingor Existing HighHigh Risk of product developmentRisk of product development SharedShared Figure 5.6Figure 5.6
59.
© 2008 Prentice
Hall, Inc. 5 – 59 Acquiring TechnologyAcquiring Technology By Purchasing a FirmBy Purchasing a Firm Speeds developmentSpeeds development Issues concern the fit between the acquiredIssues concern the fit between the acquired organization and product and the hostorganization and product and the host Through Joint VenturesThrough Joint Ventures Both organizations learnBoth organizations learn Risks are sharedRisks are shared Through AlliancesThrough Alliances Cooperative agreements betweenCooperative agreements between independent organizationsindependent organizations
60.
© 2008 Prentice
Hall, Inc. 5 – 60 Defining The ProductDefining The Product First definition is in terms ofFirst definition is in terms of functionsfunctions Rigorous specifications areRigorous specifications are developed during the design phasedeveloped during the design phase Manufactured products will have anManufactured products will have an engineering drawingengineering drawing Bill of material (BOM) lists theBill of material (BOM) lists the components of a productcomponents of a product
61.
© 2008 Prentice
Hall, Inc. 5 – 61 Engineering drawingEngineering drawing Shows dimensions, tolerances, andShows dimensions, tolerances, and materialsmaterials Shows codes for Group TechnologyShows codes for Group Technology Bill of MaterialBill of Material Lists components, quantities andLists components, quantities and where usedwhere used Shows product structureShows product structure Product DocumentsProduct Documents
62.
© 2008 Prentice
Hall, Inc. 5 – 62 Monterey Jack CheeseMonterey Jack Cheese (a)(a) U.S. grade AAU.S. grade AA. Monterey cheese shall conform to the. Monterey cheese shall conform to the following requirements:following requirements: (1)(1) FlavorFlavor. Is fine and highly pleasing, free from undesirable. Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feedflavors and odors. May possess a very slight acid or feed flavor.flavor. (2)(2) Body and textureBody and texture. A plug drawn from the cheese shall be. A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanicalreasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall notopenings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes.possess sweet holes, yeast holes, or other gas holes. (3)(3) ColorColor. Shall have a natural, uniform, bright and attractive. Shall have a natural, uniform, bright and attractive appearance.appearance. (4)(4) Finish and appearance - bandaged and paraffin-dippedFinish and appearance - bandaged and paraffin-dipped.. The rind shall be sound, firm, and smooth providing a goodThe rind shall be sound, firm, and smooth providing a good protection to the cheese.protection to the cheese. Code of Federal Regulation, Parts 53 to 109, General Service Administration
63.
© 2008 Prentice
Hall, Inc. 5 – 63 Engineering DrawingsEngineering Drawings Figure 5.8Figure 5.8
64.
© 2008 Prentice
Hall, Inc. 5 – 64 Bills of MaterialBills of Material BOM for Panel WeldmentBOM for Panel Weldment NUMBERNUMBER DESCRIPTIONDESCRIPTION QTYQTY A 60-71A 60-71 PANEL WELDM’TPANEL WELDM’T 11 A 60-7A 60-7 LOWER ROLLER ASSM.LOWER ROLLER ASSM. 11 R 60-17R 60-17 ROLLERROLLER 11 R 60-428R 60-428 PINPIN 11 P 60-2P 60-2 LOCKNUTLOCKNUT 11 A 60-72A 60-72 GUIDE ASSM. REARGUIDE ASSM. REAR 11 R 60-57-1R 60-57-1 SUPPORT ANGLESUPPORT ANGLE 11 A 60-4A 60-4 ROLLER ASSM.ROLLER ASSM. 11 02-50-115002-50-1150 BOLTBOLT 11 A 60-73A 60-73 GUIDE ASSM. FRONTGUIDE ASSM. FRONT 11 A 60-74A 60-74 SUPPORT WELDM’TSUPPORT WELDM’T 11 R 60-99R 60-99 WEAR PLATEWEAR PLATE 11 02-50-115002-50-1150 BOLTBOLT 11 Figure 5.9 (a)Figure 5.9 (a)
65.
© 2008 Prentice
Hall, Inc. 5 – 65 Bills of MaterialBills of Material Hard RockHard Rock Cafe’s HickoryCafe’s Hickory BBQ BaconBBQ Bacon CheeseburgerCheeseburger DESCRIPTIONDESCRIPTION QTYQTY BunBun 11 Hamburger pattyHamburger patty 8 oz.8 oz. Cheddar cheeseCheddar cheese 2 slices2 slices BaconBacon 2 strips2 strips BBQ onionsBBQ onions 1/2 cup1/2 cup Hickory BBQ sauceHickory BBQ sauce 1 oz.1 oz. Burger setBurger set LettuceLettuce 1 leaf1 leaf TomatoTomato 1 slice1 slice Red onionRed onion 4 rings4 rings PicklePickle 1 slice1 slice French friesFrench fries 5 oz.5 oz. Seasoned saltSeasoned salt 1 tsp.1 tsp. 11-inch plate11-inch plate 11 HRC flagHRC flag 11 Figure 5.9 (b)Figure 5.9 (b)
66.
© 2008 Prentice
Hall, Inc. 5 – 66 Parts grouped into families withParts grouped into families with similar characteristicssimilar characteristics Coding system describesCoding system describes processing and physicalprocessing and physical characteristicscharacteristics Part families can be producedPart families can be produced in dedicated manufacturing cellsin dedicated manufacturing cells Group TechnologyGroup Technology
67.
© 2008 Prentice
Hall, Inc. 5 – 67 Group Technology SchemeGroup Technology Scheme Figure 5.10Figure 5.10 (a) Ungrouped Parts (b) Grouped Cylindrical Parts (families of parts) Grooved Slotted Threaded Drilled Machined
68.
© 2008 Prentice
Hall, Inc. 5 – 68 1.1. Improved designImproved design 2.2. Reduced raw material and purchasesReduced raw material and purchases 3.3. Simplified production planning andSimplified production planning and controlcontrol 4.4. Improved layout, routing, andImproved layout, routing, and machine loadingmachine loading 5.5. Reduced tooling setup time, work-in-Reduced tooling setup time, work-in- process, and production timeprocess, and production time Group Technology BenefitsGroup Technology Benefits
69.
© 2008 Prentice
Hall, Inc. 5 – 69 Documents for ProductionDocuments for Production Assembly drawingAssembly drawing Assembly chartAssembly chart Route sheetRoute sheet Work orderWork order Engineering change noticesEngineering change notices (ECNs)(ECNs)
70.
© 2008 Prentice
Hall, Inc. 5 – 70 Assembly DrawingAssembly Drawing Shows explodedShows exploded view of productview of product Details relativeDetails relative locations tolocations to show how toshow how to assemble theassemble the productproduct Figure 5.11 (a)Figure 5.11 (a)
71.
© 2008 Prentice
Hall, Inc. 5 – 71 Assembly ChartAssembly Chart 1 2 3 4 5 6 7 8 9 10 11 R 209 AngleR 209 Angle R 207 AngleR 207 Angle Bolts w/nuts (2)Bolts w/nuts (2) R 209 AngleR 209 Angle R 207 AngleR 207 Angle Bolt w/nutBolt w/nut R 404 RollerR 404 Roller Lock washerLock washer Part number tagPart number tag Box w/packing materialBox w/packing material Bolts w/nuts (2)Bolts w/nuts (2) SA 1 SA 2 A1 A2 A3 A4 A5 LeftLeft bracketbracket assemblyassembly RightRight bracketbracket assemblyassembly Poka-yokePoka-yoke inspectioninspection Figure 5.11 (b)Figure 5.11 (b) Identifies the pointIdentifies the point of productionof production where componentswhere components flow intoflow into subassemblies andsubassemblies and ultimately into theultimately into the final productfinal product
72.
© 2008 Prentice
Hall, Inc. 5 – 72 Route SheetRoute Sheet Lists the operations and times requiredLists the operations and times required to produce a componentto produce a component Setup Operation Process Machine Operations Time Time/Unit 1 Auto Insert 2 Insert Component 1.5 .4 Set 56 2 Manual Insert Component .5 2.3 Insert 1 Set 12C 3 Wave Solder Solder all 1.5 4.1 components to board 4 Test 4 Circuit integrity .25 .5 test 4GY
73.
© 2008 Prentice
Hall, Inc. 5 – 73 Work OrderWork Order Instructions to produce a given quantityInstructions to produce a given quantity of a particular item, usually to a scheduleof a particular item, usually to a schedule Work Order Item Quantity Start Date Due Date Production Delivery Dept Location 157C 125 5/2/08 5/4/08 F32 Dept K11
74.
© 2008 Prentice
Hall, Inc. 5 – 74 Engineering Change NoticeEngineering Change Notice (ECN)(ECN) A correction or modification to aA correction or modification to a product’s definition orproduct’s definition or documentationdocumentation Engineering drawingsEngineering drawings Bill of materialBill of material Quite common with long product life cycles, long manufacturing lead times, or rapidly changing technologies
75.
© 2008 Prentice
Hall, Inc. 5 – 75 Configuration ManagementConfiguration Management The need to manage ECNs has ledThe need to manage ECNs has led to the development of configurationto the development of configuration management systemsmanagement systems A product’s planned and changingA product’s planned and changing components are accuratelycomponents are accurately identified and control andidentified and control and accountability for change areaccountability for change are identified and maintainedidentified and maintained
76.
© 2008 Prentice
Hall, Inc. 5 – 76 Product Life-CycleProduct Life-Cycle Management (PLM)Management (PLM) Integrated software that bringsIntegrated software that brings together most, if not all, elements oftogether most, if not all, elements of product design and manufactureproduct design and manufacture Product designProduct design CAD/CAM, DFMACAD/CAM, DFMA Product routingProduct routing MaterialsMaterials AssemblyAssembly EnvironmentalEnvironmental
77.
© 2008 Prentice
Hall, Inc. 5 – 77 Service DesignService Design Service typically includes directService typically includes direct interaction with the customerinteraction with the customer Increased opportunity for customizationIncreased opportunity for customization Reduced productivityReduced productivity Cost and quality are still determined atCost and quality are still determined at the design stagethe design stage Delay customizationDelay customization ModularizationModularization Reduce customer interaction, oftenReduce customer interaction, often through automationthrough automation
78.
© 2008 Prentice
Hall, Inc. 5 – 78 Service typically includes directService typically includes direct interaction with the customerinteraction with the customer Increased opportunity for customizationIncreased opportunity for customization Reduced productivityReduced productivity Cost and quality are still determined atCost and quality are still determined at the design stagethe design stage Delay customizationDelay customization ModularizationModularization Reduce customer interaction, oftenReduce customer interaction, often through automationthrough automation (c) Customer participation in design and delivery such as counseling, college education, financial management of personal affairs, or interior decorating Service DesignService Design Figure 5.12 (a) Customer participation in design such as pre-arranged funeral services or cosmetic surgery (b) Customer participation in(b) Customer participation in delivery such as stress test fordelivery such as stress test for cardiac exam or delivery of acardiac exam or delivery of a babybaby
79.
© 2008 Prentice
Hall, Inc. 5 – 79 Moments of TruthMoments of Truth Concept created by Jan Carlzon ofConcept created by Jan Carlzon of Scandinavian AirwaysScandinavian Airways Critical moments between theCritical moments between the customer and the organization thatcustomer and the organization that determine customer satisfactiondetermine customer satisfaction There may be many of these momentsThere may be many of these moments These are opportunities to gain orThese are opportunities to gain or lose businesslose business
80.
© 2008 Prentice
Hall, Inc. 5 – 80 The technician was sincerely concerned and apologetic about my problem He asked intelligent questions that allowed me to feel confident in his abilities The technician offered various times to have work done to suit my schedule Ways to avoid future problems were suggested Experience Enhancers 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 technician is able to explain to me what I can expect to happen next Standard Expectations Moments-of-TruthMoments-of-Truth Computer Company HotlineComputer Company Hotline 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 technician sounded like he was reading a form of routine questions The technician sounded uninterested I felt the technician rushed me Experience Detractors Figure 5.13Figure 5.13
81.
© 2008 Prentice
Hall, Inc. 5 – 81 Documents for ServicesDocuments for Services High levels of customerHigh levels of customer interaction necessitates differentinteraction necessitates different documentationdocumentation Often explicit job instructionsOften explicit job instructions for moments-of-truthfor moments-of-truth Scripts and storyboards areScripts and storyboards are other techniquesother techniques
82.
© 2008 Prentice
Hall, Inc. 5 – 82 Application of DecisionApplication of Decision Trees to Product DesignTrees to Product Design Particularly useful when there are aParticularly useful when there are a series of decisions and outcomesseries of decisions and outcomes which lead to other decisions andwhich lead to other decisions and outcomesoutcomes
83.
© 2008 Prentice
Hall, Inc. 5 – 83 Application of DecisionApplication of Decision Trees to Product DesignTrees to Product Design Include all possible alternatives andInclude all possible alternatives and states of nature - including “doingstates of nature - including “doing nothing”nothing” Enter payoffs at end of branchEnter payoffs at end of branch Determine the expected value of eachDetermine the expected value of each branch and “prune” the tree to findbranch and “prune” the tree to find the alternative with the best expectedthe alternative with the best expected valuevalue ProceduresProcedures
84.
© 2008 Prentice
Hall, Inc. 5 – 84 (.6)(.6) Low salesLow sales (.4)(.4) High salesHigh sales (.6)(.6) Low salesLow sales (.4)(.4) High salesHigh sales Decision Tree ExampleDecision Tree Example Purchase CAD Hire and train engineers Do nothing Figure 5.14Figure 5.14
85.
© 2008 Prentice
Hall, Inc. 5 – 85 (.6)(.6) Low salesLow sales (.4)(.4) High salesHigh sales Decision Tree ExampleDecision Tree Example Purchase CAD (.6) Low salesLow sales (.4) High sales Hire and train engineers Do nothing Figure 5.14Figure 5.14 $2,500,000$2,500,000 RevenueRevenue - 1,000,000- 1,000,000 Mfg costMfg cost ($40 x 25,000)($40 x 25,000) - 500,000- 500,000 CAD costCAD cost $1,000,000$1,000,000 NetNet $800,000$800,000 RevenueRevenue - 320,000- 320,000 Mfg costMfg cost ($40 x 8,000)($40 x 8,000) - 500,000- 500,000 CAD costCAD cost - $20,000- $20,000 Net lossNet loss EMV (purchase CAD system) = (.4)($1,000,000) + (.6)(- $20,000)
86.
© 2008 Prentice
Hall, Inc. 5 – 86 (.6)(.6) Low salesLow sales (.4)(.4) High salesHigh sales Decision Tree ExampleDecision Tree Example Purchase CAD $388,000 (.6) Low salesLow sales (.4) High sales Hire and train engineers Do nothing Figure 5.14Figure 5.14 $2,500,000$2,500,000 RevenueRevenue - 1,000,000- 1,000,000 Mfg costMfg cost ($40 x 25,000)($40 x 25,000) - 500,000- 500,000 CAD costCAD cost $1,000,000$1,000,000 NetNet $800,000$800,000 RevenueRevenue - 320,000- 320,000 Mfg costMfg cost ($40 x 8,000)($40 x 8,000) - 500,000- 500,000 CAD costCAD cost - $20,000- $20,000 Net lossNet loss EMV (purchase CAD system) = (.4)($1,000,000) + (.6)(- $20,000) = $388,000
87.
© 2008 Prentice
Hall, Inc. 5 – 87 (.6)(.6) Low salesLow sales (.4)(.4) High salesHigh sales (.6)(.6) Low salesLow sales (.4)(.4) High salesHigh sales Decision Tree ExampleDecision Tree Example Purchase CAD $388,000 Hire and train engineers $365,000 Do nothing $0 $0$0 NetNet $800,000$800,000 RevenueRevenue - 400,000- 400,000 Mfg costMfg cost ($50 x 8,000)($50 x 8,000) - 375,000- 375,000 Hire and train costHire and train cost $25,000$25,000 NetNet $2,500,000$2,500,000 RevenueRevenue - 1,250,000- 1,250,000 Mfg costMfg cost ($50 x 25,000)($50 x 25,000) - 375,000- 375,000 Hire and train costHire and train cost $875,000$875,000 NetNet $2,500,000$2,500,000 RevenueRevenue - 1,000,000- 1,000,000 Mfg costMfg cost ($40 x 25,000)($40 x 25,000) - 500,000- 500,000 CAD costCAD cost $1,000,000$1,000,000 NetNet $800,000$800,000 RevenueRevenue - 320,000- 320,000 Mfg costMfg cost ($40 x 8,000)($40 x 8,000) - 500,000- 500,000 CAD costCAD cost - $20,000- $20,000 Net lossNet loss Figure 5.14Figure 5.14
88.
© 2008 Prentice
Hall, Inc. 5 – 88 Transition to ProductionTransition to Production Know when to move to productionKnow when to move to production Product development can be viewed asProduct development can be viewed as evolutionary and never completeevolutionary and never complete Product must move from design toProduct must move from design to production in a timely mannerproduction in a timely manner Most products have a trial productionMost products have a trial production period to insure producibilityperiod to insure producibility Develop tooling, quality control, trainingDevelop tooling, quality control, training Ensures successful productionEnsures successful production
89.
© 2008 Prentice
Hall, Inc. 5 – 89 Transition to ProductionTransition to Production Responsibility must also transition as theResponsibility must also transition as the product moves through its life cycleproduct moves through its life cycle Line management takes over from designLine management takes over from design Three common approaches to managingThree common approaches to managing transitiontransition Project managersProject managers Product development teamsProduct development teams Integrate product development andIntegrate product development and manufacturing organizationsmanufacturing organizations
Editor's Notes
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