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Chapter 3, Product DesignChapter 3, Product Design
INTRODUCTIONINTRODUCTIONtoto
Operations ManagementOperations Management
5e, SchroederCopyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
OutlineOutlineDESIGN PROCESSDESIGN PROCESS
– Strategies for New-Product IntroductionStrategies for New-Product Introduction
– New-Product Development ProcessNew-Product Development Process
– Cross-Functional Product DesignCross-Functional Product Design
– Supply Chain CollaborationSupply Chain Collaboration
DESIGN TOOLSDESIGN TOOLS
– Quality Function DeploymentQuality Function Deployment
– Design for ManufacturingDesign for Manufacturing
Value AnalysisValue Analysis
Modular DesignModular Design3-2
Product Design:Product Design:Why Does Operations Care?Why Does Operations Care?
In the old days, “over the wall”In the old days, “over the wall”
Now:Now:– must be able to make it (process)must be able to make it (process)
technologytechnology
availability of resourcesavailability of resources
– must have the capacitymust have the capacity– must deliver a quality product or servicemust deliver a quality product or service– must decide inventory policiesmust decide inventory policies
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Strategies for New-Product Strategies for New-Product IntroductionIntroduction
Market Pull Market Pull (“We Make What We Can Sell”)(“We Make What We Can Sell”)– food industryfood industry
Technology Push Technology Push (“We Sell What We Can Make”)(“We Sell What We Can Make”)– electronicselectronics
Interfunctional ViewInterfunctional View– personal computerspersonal computers
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New Product Development ProcessNew Product Development Process
Concept DevelopmentConcept Development– Idea generation and evaluation of alternative ideasIdea generation and evaluation of alternative ideas
Product DesignProduct Design– Design of the physical productDesign of the physical product– Design of the production processDesign of the production process
Pilot Production/TestingPilot Production/Testing– Testing production prototypesTesting production prototypes– Finalize the ‘information package’Finalize the ‘information package’
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New Product Design Process New Product Design Process (Figure 3.2)(Figure 3.2)
Pilot production/testing Final process design
Preliminary process design
Concept development
Product design
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Cross Functional Product DesignCross Functional Product Design
Traditionally, individual functional areas Traditionally, individual functional areas (engineering, operations, marketing) operate (engineering, operations, marketing) operate without consulting each other. This is the without consulting each other. This is the sequential or ‘over the wall’ approach.sequential or ‘over the wall’ approach.
Often results in misalignment.Often results in misalignment.
Concurrent approach requires the various Concurrent approach requires the various functional areas to cooperate and work functional areas to cooperate and work together in the same time frame.together in the same time frame.
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Cross Functional Product Design (Figure 3.3)Cross Functional Product Design (Figure 3.3)
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Why Don’t Different Functional Areas Why Don’t Different Functional Areas Cooperate?Cooperate?
They don’t speak the same language.They don’t speak the same language.
They have different performance measures.They have different performance measures.
They tend to have different personality types, i.e., They tend to have different personality types, i.e., they don’t think alike.they don’t think alike.
They are defensive about their own turfs.They are defensive about their own turfs.
They are in different physical locations.They are in different physical locations.
They “don’t have time.”They “don’t have time.”
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Supply Chain CollaborationSupply Chain Collaboration
Working across functional areas Working across functional areas AND collaborating with AND collaborating with customers and supplierscustomers and suppliers
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Supply Chain CollaborationSupply Chain Collaboration
CustomersCustomers• Ask the right questionsAsk the right questions
• Provide incentivesProvide incentives
• Create collaborative technology Create collaborative technology platformplatform
• Include customers as advisors to design Include customers as advisors to design teamteam
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Supply Chain CollaborationSupply Chain Collaboration
Suppliers should have:Suppliers should have:• Technical expertiseTechnical expertise
• Capability Capability
• Capacity Capacity
• Low riskLow risk
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Quality Function Deployment (QFD)Quality Function Deployment (QFD)
Also known as “House of Quality”Also known as “House of Quality”
Developed in Japan in 1972Developed in Japan in 1972
Tool for concurrent design of productsTool for concurrent design of products
Customer Attributes (“Voice of the Customer Attributes (“Voice of the Customer”)Customer”)
Engineering Characteristics (“Voice of the Engineering Characteristics (“Voice of the Engineer”)Engineer”)
TradeoffsTradeoffs
Competitors’ ComparisonCompetitors’ Comparison3-14
HOUSE OF QUALITY (QFD)
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HOUSE OF QUALITY (QFD)
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HOUSE OF QUALITY (QFD)
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Design for Manufacturing (DFM)Design for Manufacturing (DFM)
Value Analysis (or engineering)Value Analysis (or engineering)– Simplification of products and processesSimplification of products and processes
Modular DesignModular Design– Multiple products using common parts, Multiple products using common parts,
processes, and modulesprocesses, and modules
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Value AnalysisValue Analysis
Terms in Value Analysis:Terms in Value Analysis:– Objective: primary purpose of the productObjective: primary purpose of the product
– Basic Function: Makes the objective possibleBasic Function: Makes the objective possible
– Secondary Function: How to perform the basic functionSecondary Function: How to perform the basic function
Value analysis seeks to improve the secondary Value analysis seeks to improve the secondary function, e.g., how to open a can or make a tool box.function, e.g., how to open a can or make a tool box.
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Objectives of Value AnalysisObjectives of Value Analysis
Enhance the design of a good or service to provide Enhance the design of a good or service to provide higher higher qualityquality at the same at the same priceprice, or the same , or the same qualityquality at a lower at a lower priceprice..
Modify the design of production process to lower the Modify the design of production process to lower the costcost of a product or service while maintaining or of a product or service while maintaining or improving improving qualityquality..
In other words, improve the ratio of usefulness In other words, improve the ratio of usefulness ((qualityquality) to ) to costcost..
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DFM: An ExampleDFM: An Example
(c) Final design
Design for push-and-snap assembly
(b) Revised design
One-piece base & elimination of fasteners
(a) The original design
Assembly using common fasteners
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DFM: An Example DFM: An Example (continued)(continued)
a. Original Design
• 24 different parts to assemble
• 7 unique parts to manage in inventory
b. Revised Design
• 4 different parts to assemble
• 3 unique parts to manage in inventory
c. Final Design
• 2 parts to assemble and manage
Question: How easy would it be to detect an assembly error with each of the designs?
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Value Analysis at ToyotaValue Analysis at Toyota
GM has 26 different seat frames.
Toyota has 2.
Toyota’s advantage: $500 million
Source: Business Week, 31 July 2006, p. 57.
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Value Analysis at GMValue Analysis at GM
Bo Andersson (VP Global Purchasing) discovered that door hinges on large SUVs and trucks could be made from 3 parts instead of 5. Savings: $21 per truck or $100 million total. It still took him three months to convince the engineers to change.
Source: Business Week, 31 July 2006, p. 57.
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Modular DesignModular Design
Allows greater variety through ‘mixing and Allows greater variety through ‘mixing and matching’ of modulesmatching’ of modules
Develops a series of basic product components Develops a series of basic product components (modules) for later assembly into multiple products(modules) for later assembly into multiple products
Reduces complexity and costs associated with large Reduces complexity and costs associated with large number of product variationsnumber of product variations
Easy to subcontract production of modulesEasy to subcontract production of modules
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Modular DesignModular DesignVolvo P1 PlatformVolvo P1 Platform– S40 sedanS40 sedan– V50 station wagonV50 station wagon– C70 convertibleC70 convertible– C30 compactC30 compact
Chrysler LX PlatformChrysler LX Platform– Dodge ChargerDodge Charger– Chrysler 300Chrysler 300– Chrysler 300C HemiChrysler 300C Hemi– Dodge Magnum wagonDodge Magnum wagon– Dodge ChallengerDodge Challenger
Source: Boston Globe, 19 February 2006, p. K1.Source: Boston Globe, 19 February 2006, p. K1.
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Dana’s “Rolling Chassis”Dana’s “Rolling Chassis”
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SummarySummaryDESIGN PROCESSDESIGN PROCESS
– Strategies for New-Product IntroductionStrategies for New-Product Introduction
– New-Product Development ProcessNew-Product Development Process
– Cross-Functional Product DesignCross-Functional Product Design
– Supply Chain CollaborationSupply Chain Collaboration
DESIGN TOOLSDESIGN TOOLS
– Quality Function DeploymentQuality Function Deployment
– Design for ManufacturingDesign for Manufacturing
Value AnalysisValue Analysis
Modular DesignModular Design3-28
End of Chapter Three
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