Download - C3 product design
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Operations Operations ManagementManagement
Product DesignProduct DesignChapter 3Chapter 3
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Product design involves designing a product that can be produced and marketed profitability.
The basis of an organization’s existence is the good or service it provides society.
Great products are key to success. Top organizations typically focus on core products Customers buy satisfaction, not just a physical good or
particular service The objective of product decision is to develop and
implement a product strategy that meets the demand of the marketplace with a competitive advantage
Product Decision?Product Decision?
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Product Strategy OptionsProduct Strategy Options
Product differentiation
Low cost
Rapid response
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Product Life CycleProduct Life Cycle
Products are born. They live and they die. Product life cycle can be divided into four stages:
i) Introductionii) Growthiii) Maturityiv) Decline
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Product Life CycleProduct Life CycleIntroductionIntroduction
Fine tuning researchproduct developmentprocess modification and enhancement supplier development
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Product Life CycleProduct Life CycleGrowthGrowth
Product design begins to stabilize Effective forecasting of capacity becomes
necessary Adding or enhancing capacity may be necessary
to accommodate the increase in product demand.
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Product Life CycleProduct Life CycleMaturityMaturity
Competitors are now established High volume, innovative production may be
needed Improved cost control, reduction in options, paring
down of product line may be required to maintain profitability and market share.
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Product Life CycleProduct Life CycleDeclineDecline
Product life is at an end. Unless product makes a special contribution to the
firm’s reputation or can be sold with high contribution, their production must be terminated.
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Product Life Cycle, Sales, Cost, Product Life Cycle, Sales, Cost, and Profitand Profit
Sale
s, C
ost &
Pro
fit
.
Introduction Maturity DeclineGrowth
Cost ofDevelopment
& ManufactureSales Revenue
Time
Cash flowLoss
Profit
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Product-by-Value AnalysisProduct-by-Value Analysis
Effective operations manager select items that show the greatest promise.
Product-by-value analysis lists products in descending order of their individual dollar contribution to the firm.
Also lists the total annual contribution of the product It helps management evaluate possible strategies for
each product. It also tells management which products should be
eleminated,
New Product OpportunitiesNew Product Opportunities
Brainstorming is a useful tool to generate new product ideas.
1.1. Understanding the customerUnderstanding the customer
2.2. Economic changeEconomic change
3.3. Sociological and demographic changeSociological and demographic change
4.4. Technological changeTechnological change
5.5. Political/legal changePolitical/legal change
6.6. Market practice, professional standards, Market practice, professional standards, suppliers, distributorssuppliers, distributors
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Product Development StagesProduct Development Stages
Idea generation Assessment of firm’s ability to carry out idea Customer Requirements Functional Specification – how the product will work? Product Specifications – how the product will be made? Design Review – Are the product specifications the best to
meet customers requirements? Test Market – Does product meets customers
expectation? Introduction to Market Evaluation – success or fail?
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Quality Function DeploymentQuality Function Deployment
Quality Function Deployment (QFD) refers to :i) identifying what will satisfy customerii) translate it into the target design
The idea of QFD is to understand what customer wants and to identify alternative process solutions.
QFD is used early in design process to help determine what will satisfy the customer and where to deploy quality efforts.
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Quality Function DeploymentQuality Function Deployment
One of the tools of QFD is the house of quality. House of quality is a graphic technique for defining
the relationship between customers desires and product or service.
There are 7 steps to build house of quality.
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7 Steps to built house of quality7 Steps to built house of quality1. Identify customer wants2. Identify how the good/service will satisfy customer
wants3. Relate customer wants to product hows4. Identify relationships between the firm’s hows5. Develop importance ratings6. Evaluate competing products7. Determine the desirable technical attributes,
company’s performance and competitors performance.
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QFD House of QualityQFD House of Quality
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House of Quality Sequence Indicates House of Quality Sequence Indicates How to Deploy Resources to Achieve How to Deploy Resources to Achieve
Customer RequirementCustomer Requirementss
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Organizing for Product Organizing for Product DevelopmentDevelopment
Historically – distinct departments Duties and responsibilities are defined Difficult to foster forward thinking
Today – team approach Representatives from all disciplines or functions Concurrent engineering – cross functional team
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Manufacturability andManufacturability and Value Engineering Value Engineering
Activities are concerned with improvement of design and specification at the research, development, design and production stages of product development.
It can reduce costs.
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Manufacturability andManufacturability and Value Engineering Value Engineering
Benefits: reduced complexity of products additional standardization of products improved functional aspects of product improved job design and job safety improved maintainability of the product robust design
Cost Reduction of a Bracket Cost Reduction of a Bracket through Value Engineeringthrough Value Engineering
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Issues for Product DevelopmentIssues for Product DevelopmentImportant techniques to design a product: Robust design Modular design Computer-aided design Computer-aided Manufacturing Virtual reality technology Value analysis Environmentally friendly design
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Robust DesignRobust Design
Product is designed so that small variations in production or assembly do not adversely affect the product
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Modular DesignModular Design
Products designed in easily segmented components.
Adds flexibility to both production and marketing
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Designing products at a computer terminal or work station Design engineer
develops rough sketch of product
Uses computer to draw product
Often used with CAM(Computer Aided Manufacturing).
© 1995 Corel Corp.
Computer Aided Design (CAD)Computer Aided Design (CAD)
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Design for Manufacturing and Assembly (DFMA)Solve manufacturing problems during the design stage
3-D Object ModelingSmall prototype development
International data exchange through STEP
© 1995 Corel Corp.
Extensions of CADExtensions of CAD
Computer-Aided Manufacturing Computer-Aided Manufacturing (CAM)(CAM)
Utilizing specialized computers and program Utilizing specialized computers and program to control manufacturing equipmentto control manufacturing equipment
Often driven by the CAD systemOften driven by the CAD system
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Shorter design time Database availability New capabilities
Example: Focus more on product ideas Improved product quality Reduced production costs
Benefits of CAD/CAMBenefits of CAD/CAM
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Virtual RealityVirtual Reality
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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Value AnalysisValue Analysis
Focuses on design improvement during production
Seeks improvements leading either to a better product or a product which can be more economically produced.
Ethics and Environmentally Ethics and Environmentally Friendly DesignsFriendly Designs
It is possible to enhance productivity, drive down It is possible to enhance productivity, drive down costs, and preserve resourcescosts, and preserve resources
The Ethical ApproachThe Ethical Approach
1.1. View product design from a systems View product design from a systems perspectiveperspective
2.2. Consider the entire life cycle of the productConsider the entire life cycle of the product
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Environmentally Friendly DesignsEnvironmentally Friendly Designs
Benefits Safe and environmentally sound products Minimum raw material and energy waste Product differentiation Environmental liability reduction Cost-effective compliance with environmental
regulations Recognition as good corporate citizen
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““Green” ManufacturingGreen” Manufacturing
Make products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less material
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Time-based CompetitionTime-based Competition
Product life cycles are becoming shorter.
Faster developers of new products gain on slower developers and obtain a competitive advantage
Acquiring TechnologyAcquiring Technology
By Purchasing a FirmBy Purchasing a Firm Speeds developmentSpeeds development Issues concern the fit between the acquired Issues 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 between independent Cooperative agreements between independent
organizationsorganizations
Defining The ProductDefining The Product
First definition is in terms of functionsFirst definition is in terms of functions Rigorous specifications are developed during Rigorous specifications are developed during
the design phasethe design phase Manufactured products will have an Manufactured products will have an
engineering drawingengineering drawing Bill of material (BOM) lists the components of Bill of material (BOM) lists the components of
a producta product
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Engineering drawing Shows dimensions, tolerances, &
materials Shows codes for Group Technology
Bill of Material Lists components, quantities & where
used Shows product structure
Product DocumentsProduct Documents
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Make-or-Buy DecisionsMake-or-Buy Decisions
The choosing between producing a component or a service and purchasing it from an outside source.
The make or buy decision distinguishes between what the firm wants to produce and what it wants to purchase.
May be able to purchase the item as a “standard item” from another manufacturer
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Parts grouped into families Similar, more standardized parts
Uses coding system Describes processing & physical
characteristics Part families produced
in manufacturing cells Mini-assembly lines
© 1984-1994 T/Maker Co.
Group Technology CharacteristicsGroup Technology Characteristics
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Improved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenance
Group Technology BenefitsGroup Technology Benefits
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Production DocumentsProduction Documents
Assembly Drawing Assembly chart Route sheet Work order
Assembly DrawingAssembly Drawing
Shows exploded view Shows exploded view of productof product
Details relative Details relative locations to show locations to show how to assemble the how to assemble the productproduct
Figure 5.11 (a)Figure 5.11 (a)
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)
SA1
SA2
A1
A2
A3
A4
A5
LeftLeftbracketbracket
assemblyassembly
RightRightbracketbracket
assemblyassembly
Poka-yoke Poka-yoke inspectioninspection
Figure 5.11 (b)Figure 5.11 (b)
Identifies the point of Identifies the point of production where production where components flow into components flow into subassemblies and subassemblies and ultimately into the final ultimately into the final productproduct
Route SheetRoute SheetLists the operations and times required to produce Lists the operations and times required to produce a componenta component
Setup OperationProcess 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 4.1components to board
4 Test 4 Circuit integrity .25 .5test 4GY
Work OrderWork Order
Instructions to produce a given quantity of a Instructions to produce a given quantity of a particular item, usually to a scheduleparticular item, usually to a schedule
Work OrderItem Quantity Start Date Due Date
Production DeliveryDept Location
157C 125 5/2/06 5/4/06
F32 Dept K11
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Engineering Change Notice (ECN)Engineering Change Notice (ECN)
A correction or modification of an engineering drawing or bill of material
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Configuration ManagementConfiguration Management
A system by which a product’s planned and changing components are accurately identified and for which control and accountability of change are maintained
Product Lifecycle ManagementProduct Lifecycle Management
Integrated software that brings together most, if Integrated software that brings together most, if not all, elements of product design and not all, elements of product design and manufacturemanufacture Product designProduct design CAD/CAM, DFMACAD/CAM, DFMA Product routingProduct routing MaterialsMaterials AssemblyAssembly EnvironmentalEnvironmental
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Service Design -Service Design - Nature of Customer Participation Nature of Customer Participation
Moments of TruthMoments of Truth
Concept created by Jan Carlzon of Scandinavian Concept created by Jan Carlzon of Scandinavian AirwaysAirways
Critical moments between the customer and the Critical moments between the customer and the organization that determine customer satisfactionorganization that determine customer satisfaction
There may be many of these momentsThere may be many of these moments These are opportunities to gain or lose businessThese are opportunities to gain or lose business
The technician was sincerely concerned and apologetic about my problemHe asked intelligent questions that allowed me to feel confident in his abilitiesThe technician offered various times to have work done to suit my scheduleWays to avoid future problems were suggested
Experience Enhancers
Only one local number needs to be dialedI never get a busy signalI get a human being to answer my call quickly and he or she is pleasant and responsive to my problemA timely resolution to my problem is offeredThe technician is able to explain to me what I can expect to happen next
Standard Expectations
Moments-of-Truth Moments-of-Truth Computer Company HotlineComputer Company Hotline
I had to call more than once to get throughA recording spoke to me rather than a personWhile on hold, I get silence,and wonder if I am disconnectedThe technician sounded like he was reading a form of routine questionsThe technician sounded uninterestedI felt the technician rushed me
Experience Detractors
Figure 5.13Figure 5.13
Documents for ServicesDocuments for Services
High levels of customer interaction High levels of customer interaction necessitates different documentationnecessitates different documentation
Often explicit job instructions for moments-Often explicit job instructions for moments-of-truthof-truth
Scripts and storyboards are other Scripts and storyboards are other techniquestechniques
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Improving Customer Relations at Improving Customer Relations at a Drive-up Windowa Drive-up Window
Be especially discreet when talking with customer through the
microphone
Provide written instructions for customers who must fill out forms you
provide
Mark lines to be completed or attach a note with instructions
Always say ”please” and “thank you”
Establish eye contact with the customer if the distance allows it
If the transaction requires that the customer park the car and come
into the lobby, apologize for the inconvenience.
Transition to ProductionTransition 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 Responsibility must also transition as the product
moves through its life cycle