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