design of goods and services
DESCRIPTION
Design of goods and servicesTRANSCRIPT
BITS Pilani Pilani Campus
Operations Management QMZG526 (Lecture No. 8)
Design of Goods & Services
PB Venkataraman Mechanical Engineering
BITS Pilani, Pilani Campus
Product Life Cycle
2
Introduction Growth Maturity Decline
Sales
Cost of development
Cost of production
Cash flow
State as: Low, High, Increase, Decrease, Stable
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Product Life Cycle
3
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Product-by-value-analysis
4
Reduce cost / increase price
Stay ahead
Get rid of Enlarge market
Low High
High
Individual contribution
Tota
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ntr
ibu
tio
n
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Product Development Stages
5
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Strategy Vs Product Design
6
Strategy Product design techniques
Cost 1. Standardization
2. Rationalization
3. VA/VE
Convenience 1. QFD
2. DfX
Differentiation (Quality) 1. Mass customization
2. Concurrent Engineering
3. Rapid Prototype Development
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Standardization
7
• Is the process of reducing variations
• Variations can be due to sporadic or assignable causes
• Assignable causes are detectable and can be managed instantly
• Sporadic causes accumulate over a period of time to result in a
product complexity, which requires correction at product design
• Standardization can be in the form of ‘combination’ or ‘reduction’
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Rationalization
8
• Is the process of reducing complexity
• Complexity is significant in ‘organic growth’
• Rationalization is achieved generally through elimination
• Product-value-analysis is a useful tool to identify candidates
for rationalization
• The key challenge to rationalization is the resistance to
change status-quo
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Value Analysis / Value Engineering
9
• Value of a product / service can be looked as:
o Cost value – the value for which the product is sold / purchased
o Functional value – the value realized by the consumer on its usage
o Esteem value – the intangible value attached to the brand by the consumer
• Value engineering is the process by which the value of the product is
increased retaining the cost value
• Alternatively, the value perceived by the consumer is increased
without increasing the cost to the consumer
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QFD
10
Left to the students to self-learn from the textbook
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DfX
11
• Design for manufacturing (ex., tolerancing)
• Design for assembly (ex., least tools)
• Design for maintainability (ex., MTTR, Modularization)
• Design for service (ex., easy access)
• Design for reliability (ex., MTBF)
• Design for sustainability (environment) (ex., disposal)
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Mass Customization
12
• Mass production is to exploit the economy of scale
• Customization is the way of personalizing product and service
• Mass customization combines the benefits of both
• Modularized design is the key to mass customization
• Mass produced sub-assemblies / modules get customized
when assembled to specification
• Sub-assemblies / modules are stocked and assembled to order
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Concurrent Engineering
13
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Rapid Prototyping
14
• Is the technique / tool used to reduce new product development period
• Very useful where time-to-market is the key to success of new product
launch
• The Rapid Prototyping Equipment (3D printer) generates the product /
component model from CAD files
• The model may not be functional but gives the touch and feel of the new
product
• Faro-Arm is a variant, which is useful to reconstruct the CAD drawings
from a sample part. This method is useful in reverse engineering
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End of Lecture 8