C3 product design


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C3 product design

  1. 1. Operations Management Product Design Chapter 3 OPM 533 3-
  2. 2. <ul><li>Product design involves designing a product that can be produced and marketed profitability. </li></ul><ul><li>The basis of an organization’s existence is the good or service it provides society. </li></ul><ul><li>Great products are key to success. </li></ul><ul><li>Top organizations typically focus on core products </li></ul><ul><li>Customers buy satisfaction, not just a physical good or particular service </li></ul><ul><li>The objective of product decision is to develop and implement a product strategy that meets the demand of the marketplace with a competitive advantage </li></ul>Product Decision? OPM 533 3-
  3. 3. Product Strategy Options <ul><li>Product differentiation </li></ul>OPM 533 3- <ul><li>Low cost </li></ul><ul><li>Rapid response </li></ul>
  4. 4. Product Life Cycle <ul><li>Products are born. </li></ul><ul><li>They live and they die. </li></ul><ul><li>Product life cycle can be divided into four stages: </li></ul><ul><li>i) Introduction </li></ul><ul><li>ii) Growth </li></ul><ul><li>iii) Maturity </li></ul><ul><li>iv) Decline </li></ul>OPM 533 3-
  5. 5. Product Life Cycle Introduction <ul><ul><ul><li>Fine tuning </li></ul></ul></ul><ul><ul><ul><ul><li>research </li></ul></ul></ul></ul><ul><ul><ul><ul><li>product development </li></ul></ul></ul></ul><ul><ul><ul><ul><li>process modification and enhancement </li></ul></ul></ul></ul><ul><ul><ul><ul><li>supplier development </li></ul></ul></ul></ul>OPM 533 3-
  6. 6. Product Life Cycle Growth <ul><li>Product design begins to stabilize </li></ul><ul><li>Effective forecasting of capacity becomes necessary </li></ul><ul><li>Adding or enhancing capacity may be necessary to accommodate the increase in product demand. </li></ul>OPM 533 3-
  7. 7. Product Life Cycle Maturity <ul><li>Competitors are now established </li></ul><ul><li>High volume, innovative production may be needed </li></ul><ul><li>Improved cost control, reduction in options, paring down of product line m ay be required to maintain profitability and market share. </li></ul>OPM 533 3-
  8. 8. Product Life Cycle Decline <ul><li>Product life is at an end. </li></ul><ul><li>Unless product makes a special contribution to the firm’s reputation or can be sold with high contribution, their production must be terminated. </li></ul>OPM 533 3-
  9. 9. Product Life Cycle, Sales, Cost, and Profit OPM 533 3- Sales, Cost & Profit . Introduction Maturity Decline Growth Cost of Development & Manufacture Sales Revenue Time Cash flow Loss Profit
  10. 10. Product-by-Value Analysis <ul><li>Effective operations manager select items that show the greatest promise. </li></ul><ul><li>Product-by-value analysis lists products in descending order of their individual dollar contribution to the firm. </li></ul><ul><li>Also lists the total annual contribution of the product </li></ul><ul><li>It helps management evaluate possible strategies for each product. </li></ul><ul><li>It also tells management which products should be eleminated, </li></ul>OPM 533 3-
  11. 11. New Product Opportunities Brainstorming is a useful tool to generate new product ideas. <ul><li>Understanding the customer </li></ul><ul><li>Economic change </li></ul><ul><li>Sociological and demographic change </li></ul><ul><li>Technological change </li></ul><ul><li>Political/legal change </li></ul><ul><li>Market practice, professional standards, suppliers, distributors </li></ul>
  12. 12. Product Development Stages <ul><li>Idea generation </li></ul><ul><li>Assessment of firm’s ability to carry out idea </li></ul><ul><li>Customer Requirements </li></ul><ul><li>Functional Specification – how the product will work? </li></ul><ul><li>Product Specifications – how the product will be made? </li></ul><ul><li>Design Review – Are the product specifications the best to meet customers requirements? </li></ul><ul><li>Test Market – Does product meets customers expectation? </li></ul><ul><li>I ntroduction to Market </li></ul><ul><li>Evaluation – success or fail? </li></ul>OPM 533 3-
  13. 13. Quality Function Deployment <ul><li>Quality Function Deployment (QFD) refers to : </li></ul><ul><li>i) identifying what will satisfy customer </li></ul><ul><li>ii) translate it into the target design </li></ul><ul><li>The idea of QFD is to understand what customer wants and to identify alternative process solutions. </li></ul><ul><li>QFD is used early in design process to help determine what will satisfy the customer and where to deploy quality efforts. </li></ul>OPM 533 3-
  14. 14. Quality Function Deployment <ul><li>One of the tools of QFD is the house of quality. </li></ul><ul><li>House of quality is a graphic technique for defining the relationship between customers desires and product or service. </li></ul><ul><li>There are 7 steps to build house of qualit y. </li></ul>OPM 533 3-
  15. 15. 7 Steps to built house of quality <ul><li>Identify customer wants </li></ul><ul><li>Identify how the good/service will satisfy customer wants </li></ul><ul><li>Relate customer wants to product hows </li></ul><ul><li>Identify relationships between the firm’s hows </li></ul><ul><li>Develop importance ratings </li></ul><ul><li>Evaluate competing products </li></ul><ul><li>Determine the desirable technical attributes, company’s performance and competitors performance. </li></ul>OPM 533 3-
  16. 16. QFD House of Quality OPM 533 3-
  17. 17. House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirement s OPM 533 3-
  18. 18. Organizing for Product Development <ul><li>Historically – distinct departments </li></ul><ul><ul><li>Duties and responsibilities are defined </li></ul></ul><ul><ul><li>Difficult to foster forward thinking </li></ul></ul><ul><li>Today – team approach </li></ul><ul><ul><li>Representatives from all disciplines or functions </li></ul></ul><ul><ul><li>Concurrent engineering – cross functional team </li></ul></ul>OPM 533 3-
  19. 19. Manufacturability and Value Engineering <ul><li>Activities are concerned with improvement of design and specification at the research, development, design and production stages of product development. </li></ul><ul><li>It can reduce costs. </li></ul>OPM 533 3-
  20. 20. Manufacturability and Value Engineering <ul><li>Benefits: </li></ul><ul><ul><li>reduced complexity of products </li></ul></ul><ul><ul><li>additional standardization of products </li></ul></ul><ul><ul><li>improved functional aspects of product </li></ul></ul><ul><ul><li>improved job design and job safety </li></ul></ul><ul><ul><li>improved maintainability of the product </li></ul></ul><ul><ul><li>robust design </li></ul></ul>OPM 533 3-
  21. 21. Cost Reduction of a Bracket through Value Engineering
  22. 22. Issues for Product Development <ul><li>Important techniques to design a product: </li></ul><ul><li>Robust design </li></ul><ul><li>Modular design </li></ul><ul><li>Computer-aided design </li></ul><ul><li>Computer-aided Manufacturing </li></ul><ul><li>Virtual reality technology </li></ul><ul><li>Value analysis </li></ul><ul><li>Environmentally friendly design </li></ul>OPM 533 3-
  23. 23. Robust Design <ul><li>Product is designed so that small variations in production or assembly do not adversely affect the product </li></ul>OPM 533 3-
  24. 24. Modular Design <ul><li>Products designed in easily segmented components. </li></ul><ul><li>Adds flexibility to both production and marketing </li></ul>OPM 533 3-
  25. 25. <ul><li>Designing products at a computer terminal or work station </li></ul><ul><ul><li>Design engineer develops rough sketch of product </li></ul></ul><ul><ul><li>Uses computer to draw product </li></ul></ul><ul><li>Often used with CAM(Computer Aided Manufacturing). </li></ul>Computer Aided Design (CAD) OPM 533 3- © 1995 Corel Corp.
  26. 26. <ul><li>Design for Manufacturing and Assembly (DFMA) </li></ul><ul><ul><li>Solve manufacturing problems during the design stage </li></ul></ul><ul><li>3-D Object Modeling </li></ul><ul><ul><li>Small prototype development </li></ul></ul><ul><li>International data exchange through STEP </li></ul>Extensions of CAD OPM 533 3- © 1995 Corel Corp.
  27. 27. Computer-Aided Manufacturing (CAM) <ul><li>Utilizing specialized computers and program to control manufacturing equipment </li></ul><ul><li>Often driven by the CAD system </li></ul>
  28. 28. <ul><li>Shorter design time </li></ul><ul><li>Database availability </li></ul><ul><li>New capabilities </li></ul><ul><ul><li>Example: Focus more on product ideas </li></ul></ul><ul><li>Improved product quality </li></ul><ul><li>Reduced production costs </li></ul>Benefits of CAD/CAM OPM 533 3-
  29. 29. Virtual Reality <ul><li>Computer technology used to develop an interactive, 3-D model of a product from the basic CAD data </li></ul><ul><li>Allows people to ‘see’ the finished design before a physical model is built </li></ul><ul><li>Very effective in large-scale designs such as plant layout </li></ul>OPM 533 3-
  30. 30. Value Analysis <ul><li>Focuses on design improvement during production </li></ul><ul><li>Seeks improvements leading either to a better product or a product which can be more economically produced. </li></ul>OPM 533 3-
  31. 31. Ethics and Environmentally Friendly Designs It is possible to enhance productivity, drive down costs, and preserve resources The Ethical Approach <ul><li>View product design from a systems perspective </li></ul><ul><li>Consider the entire life cycle of the product </li></ul>
  32. 32. Environmentally Friendly Designs <ul><li>Benefits </li></ul><ul><ul><li>Safe and environmentally sound products </li></ul></ul><ul><ul><li>Minimum raw material and energy waste </li></ul></ul><ul><ul><li>Product differentiation </li></ul></ul><ul><ul><li>Environmental liability reduction </li></ul></ul><ul><ul><li>Cost-effective compliance with environmental regulations </li></ul></ul><ul><ul><li>Recognition as good corporate citizen </li></ul></ul>OPM 533 3-
  33. 33. “ Green” Manufacturing <ul><li>Make products recyclable </li></ul><ul><li>Use recycled materials </li></ul><ul><li>Use less harmful ingredients </li></ul><ul><li>Use lighter components </li></ul><ul><li>Use less energy </li></ul><ul><li>Use less material </li></ul>OPM 533 3-
  34. 34. Time-based Competition <ul><li>Product life cycles are becoming shorter. </li></ul><ul><li> Faster developers of new products gain on slower developers and obtain a competitive advantage </li></ul>OPM 533 3-
  35. 35. Acquiring Technology <ul><li>By Purchasing a Firm </li></ul><ul><ul><li>Speeds development </li></ul></ul><ul><ul><li>Issues concern the fit between the acquired organization and product and the host </li></ul></ul><ul><li>Through Joint Ventures </li></ul><ul><ul><li>Both organizations learn </li></ul></ul><ul><ul><li>Risks are shared </li></ul></ul><ul><li>Through Alliances </li></ul><ul><ul><li>Cooperative agreements between independent organizations </li></ul></ul>
  36. 36. Defining The Product <ul><li>First definition is in terms of functions </li></ul><ul><li>Rigorous specifications are developed during the design phase </li></ul><ul><li>Manufactured products will have an engineering drawing </li></ul><ul><li>Bill of material (BOM) lists the components of a product </li></ul>
  37. 37. <ul><li>Engineering drawing </li></ul><ul><ul><li>Shows dimensions, tolerances, & materials </li></ul></ul><ul><ul><li>Shows codes for Group Technology </li></ul></ul><ul><li>Bill of Material </li></ul><ul><ul><li>Lists components, quantities & where used </li></ul></ul><ul><ul><li>Shows product structure </li></ul></ul>Product Documents OPM 533 3-
  38. 38. Make-or-Buy Decisions <ul><li>The choosing between producing a component or a service and purchasing it from an outside source. </li></ul><ul><li>The make or buy decision distinguishes between what the firm wants to produce and what it wants to purchase. </li></ul><ul><li>May be able to purchase the item as a “standard item” from another manufacturer </li></ul>OPM 533 3-
  39. 39. <ul><li>Parts grouped into families </li></ul><ul><ul><li>Similar, more standardized parts </li></ul></ul><ul><li>Uses coding system </li></ul><ul><ul><li>Describes processing & physical characteristics </li></ul></ul><ul><li>Part families produced in manufacturing cells </li></ul><ul><ul><li>Mini-assembly lines </li></ul></ul>Group Technology Characteristics OPM 533 3- © 1984-1994 T/Maker Co.
  40. 40. <ul><li>Improved product design </li></ul><ul><li>Reduced purchases </li></ul><ul><li>Reduced work-in-process inventory </li></ul><ul><li>Improved routing & machine loading </li></ul><ul><li>Reduced setup & production times </li></ul><ul><li>Simplified production planning & control </li></ul><ul><li>Simplified maintenance </li></ul>Group Technology Benefits OPM 533 3-
  41. 41. Production Documents <ul><li>Assembly Drawing </li></ul><ul><li>Assembly chart </li></ul><ul><li>Route sheet </li></ul><ul><li>Work order </li></ul>OPM 533 3-
  42. 42. Assembly Drawing <ul><li>Shows exploded view of product </li></ul><ul><li>Details relative locations to show how to assemble the product </li></ul>Figure 5.11 (a)
  43. 43. Assembly Chart Figure 5.11 (b) <ul><li>Identifies the point of production where components flow into subassemblies and ultimately into the final product </li></ul>1 2 3 4 5 6 7 8 9 10 11 R 209 Angle R 207 Angle Bolts w/nuts (2) R 209 Angle R 207 Angle Bolt w/nut R 404 Roller Lock washer Part number tag Box w/packing material Bolts w/nuts (2) SA 1 SA 2 A1 A2 A3 A4 A5 Left bracket assembly Right bracket assembly Poka-yoke inspection
  44. 44. Route Sheet Lists the operations and times required to 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
  45. 45. Work Order Instructions to produce a given quantity of a particular item, usually to a schedule Work Order Item Quantity Start Date Due Date Production Delivery Dept Location 157C 125 5/2/06 5/4/06 F32 Dept K11
  46. 46. Engineering Change Notice (ECN) <ul><li>A correction or modification of an engineering drawing or bill of material </li></ul>OPM 533 3-
  47. 47. Configuration Management <ul><li>A system by which a product’s planned and changing components are accurately identified and for which control and accountability of change are maintained </li></ul>OPM 533 3-
  48. 48. Product Lifecycle Management <ul><li>Integrated software that brings together most, if not all, elements of product design and manufacture </li></ul><ul><ul><li>Product design </li></ul></ul><ul><ul><li>CAD/CAM, DFMA </li></ul></ul><ul><ul><li>Product routing </li></ul></ul><ul><ul><li>Materials </li></ul></ul><ul><ul><li>Assembly </li></ul></ul><ul><ul><li>Environmental </li></ul></ul>
  49. 49. Service Design - Nature of Customer Participation OPM 533 3-
  50. 50. Moments of Truth <ul><li>Concept created by Jan Carlzon of Scandinavian Airways </li></ul><ul><li>Critical moments between the customer and the organization that determine customer satisfaction </li></ul><ul><li>There may be many of these moments </li></ul><ul><li>These are opportunities to gain or lose business </li></ul>
  51. 51. Moments-of-Truth Computer Company Hotline Figure 5.13 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 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
  52. 52. Documents for Services <ul><li>High levels of customer interaction necessitates different documentation </li></ul><ul><li>Often explicit job instructions for moments-of-truth </li></ul><ul><li>Scripts and storyboards are other techniques </li></ul>
  53. 53. Improving Customer Relations at a Drive-up Window <ul><li>Be especially discreet when talking with customer through the microphone </li></ul><ul><li>Provide written instructions for customers who must fill out forms you provide </li></ul><ul><li>Mark lines to be completed or attach a note with instructions </li></ul><ul><li>Always say ”please” and “thank you” </li></ul><ul><li>Establish eye contact with the customer if the distance allows it </li></ul><ul><li>If the transaction requires that the customer park the car and come into the lobby, apologize for the inconvenience. </li></ul>OPM 533 3-
  54. 54. Transition to Production <ul><li>Know when to move to production </li></ul><ul><ul><li>Product development can be viewed as evolutionary and never complete </li></ul></ul><ul><ul><li>Product must move from design to production in a timely manner </li></ul></ul><ul><li>Most products have a trial production period to insure producibility </li></ul><ul><li>Responsibility must also transition as the product moves through its life cycle </li></ul>