© 2011 pearson education 5 5 product design powerpoint presentation to accompany heizer and render...
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© 2011 Pearson Education
55 Product DesignProduct Design
PowerPoint presentation to accompany PowerPoint presentation to accompany Heizer and Render Heizer and Render Operations Management, 10e, Global Edition Operations Management, 10e, Global Edition Principles of Operations Management, 8e, Global EditionPrinciples of Operations Management, 8e, Global Edition
PowerPoint slides by Jeff Heyl
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Product Life Cycles
May be any length from a few hours to decades
The operations function must be able to introduce new products successfully
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Product Life Cycles
Negative cash flow
Introduction Growth Maturity Decline
Sal
es,
cost
, an
d c
ash
flo
w Cost of development and production
Cash flow
Net revenue (profit)
Sales revenue
Loss
Figure 5.1
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Product Life CycleIntroductory PhaseIntroductory Phase
Fine tuning may warrant unusual expenses for
1. Research
2. Product development
3. Process modification and enhancement
4. Supplier development
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Product Life Cycle
Growth PhaseGrowth Phase
Product design begins to stabilize
Effective forecasting of capacity becomes necessary
Adding or enhancing capacity may be necessary
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Product Life Cycle
Maturity PhaseMaturity Phase
Competitors now established
High volume, innovative production may be needed
Improved cost control, reduction in options, paring down of product line
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Product Life Cycle
Decline PhaseDecline Phase
Unless product makes a special contribution to the organization, must plan to terminate offering
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New Product Opportunities
1. Understanding the customer
2. Economic change
3. Sociological and demographic change
4. Technological change
5. Political/legal change
6. Market practice, professional standards, suppliers, distributors
Brainstorming
is a useful tool
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Using computers to design products and prepare engineering documentation
Shorter development cycles, improved accuracy, lower cost
Information and designs can be deployed worldwide
Computer Aided Design (CAD)
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Computer-Aided Manufacturing (CAM)
Utilizing specialized computers and program to control manufacturing equipment
Often driven by the CAD system (CAD/CAM)
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Virtual Reality Technology
Computer technology used to develop an interactive, 3-D model of a product from the basic CAD data
Allows people to ‘see’ the finished design before a physical model is built
Very effective in large-scale designs such as plant layout
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Ethics, Environmentally Friendly Designs, and Sustainability It is possible to enhance productivity
and deliver goods and services in an environmentally and ethically responsible manner
In OM, sustainability means ecological stability
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The Ethical Approach Goals
1. Developing safe end environmentally sound practices
2. Minimizing waste of resources
3. Reducing environmental liabilities
4. Increasing cost-effectiveness of complying with environmental regulations
5. Begin recognized as a good corporate citizen
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Guidelines for Environmentally Friendly Designs
1. Make products recyclable2. Use recycled materials3. Use less harmful ingredients4. Use lighter components5. Use less energy6. Use less material
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Time-Based Competition
Product life cycles are becoming shorter and the rate of technological change is increasing
Developing new products faster can result in a competitive advantage
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Acquiring Technology By Purchasing a Firm
Speeds development
Issues concern the fit between the acquired organization and product and the host
Through Joint Ventures Both organizations learn
Risks are shared
Through Alliances Cooperative agreements between
independent organizations
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Transition to Production
Know when to move to production Product development can be viewed as
evolutionary and never complete Product must move from design to
production in a timely manner Most products have a trial production
period to insure producibility Develop tooling, quality control, training Ensures successful production