3. Generating New Products - OM Issues
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Transcript of 3. Generating New Products - OM Issues
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Subject:OperationsManagement
ChapterIII: Generating New ProductsOM IssuesNew Product opportunities, Product Development Stages, QFD, Kano
Model, Manufacturability and Value Engineering, Issues for Product
DesignRobust, Modular, CAD and CAM, VA
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Global Strategy
Standardized ProductEconomies of Scale
Cross Cultural Learning
EXAMPLES
Mobile Phones
TVs
International Strategy
Import/export or
license existing product
EXAMPLES
Harley Davidson
Apple Products
Multi Domestic Strategy
Use existing domestic
model globally
Franchise, JV, subsidiaries
EXAMPLES
MC Donald
Cars
Transnational Strategy
Move resources, ideaacross national boundaries
Economies of Scale
Cross Cultural Learning
EXAMPLES
Nestle
Coca Cola
Low High
Local Responsiveness Considerations(Quick Response and / or Differentiation)
High
CostReductionConsiderations
International Operational Strategies
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Process Design
Low Moderate High
Volume
High
Moderate
Low
Variety
ofProdu
cts
Process-focused
JOB SHOPS
(Print shop, emergencyroom, machine shop, fine-
dining
restaurant)
Repetitive (modular)
focusASSEMBLY LINE
(Cars, appliances,TVs, fast-foodrestaurants) Product focused
CONTINUOUS
(steel, beer, paper,bread, institutionalkitchen)
Mass Customization
Customization at highVolume
(Dell Computers PC,cafeteria)
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Good Operations Managers try to integrate and develop strong
communication among customer, product, processes andsuppliers that results in high success rate for their new
products.
Product Decision
An effective product strategy, links product decision with
investment, market share, and product life cycle, and defines
the breadth of the product line.
Objective of the Product Decision is to develop and
implement a product strategy that meet the demands of
the market place with a competitive advantage.
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As Engineering
designed it.
1984-1994 T/Maker Co.
As Operations made
it.
1984-1994 T/Maker Co.
As Marketing
interpretedit.
1984-1994 T/Maker Co.
As thecustomer
wanted it.
1984-1994 T/Maker Co.
Humor in Product Design
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Translate customer wants and needs into product and
service requirements
Refine existing products and services
Develop new products and or services
Formulate quality goals
Formulate cost targets
Construct and test prototypes
Document everything
What Does Product and Service Design Do?
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Generating New Products
New Product Opportunities
Political
Economical Technological
Sociological and Demographic
Legal
Environmental
Customer
PESTLE + Customer
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Cost
Quality
Time-to-market Customer satisfaction
Competitive advantage
Value Analysis
Major Factors in Product / Service Design
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Is the item necessary?
Does it add value?
Are there any
alternative sources?
Is there any substitute
at low cost but with
same quality?
Can two or more parts
/ assemblies be
combines?
Value Analysis
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Understand what the customer wants
Profit Vs. Quality
Other factors to consider are,
Function
Cost
Appearance
Volume
Ease of Production
Ease of assembly
Ease of maintenance
Ease of Services
Objectives of Product and Service Design
Design for OperationsConsidering overall capabilities of the
organization in designing goods and services.
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Major Factors in Product / Service Design
1. Product Development System and Stages
2. Product Liability and Uniform Commercial Code3. Product and Process Life Cycle (PPLC)
4. Standardization and Interchangeability of parts
5. Design for Mass Customizationa. Mass Customization
b. Delayed Differentiation
c. Modular Design
6. Reliability, Failure and Normal Operating Conditions
7. Robust Design
8. Degree of Newness
9. Cultural Differences
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Idea generation Assessment of firms ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market Introduction to Market Evaluation
Scopeofproduct
developmenttea
m
Scope of design for
manufacturability and
value engineering
teams
Phases in Product Design and Development
An effective product strategy links product decisions with Cash Flow, Market
Dynamics, PLC, and the organizationscapabilities
Optimum product development depends not only on support from other parts of
the firm but also on the successful integration of all 10 OM decisions, from
product design to maintenance.
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QFD,
Is a Product Design Process using CFTs (Cross-Functional Teams)
Marketing, engineering, manufacturing
Translates customer preferences into specific product characteristics
Involves creating 4 tabular Matricesor Houses
Breakdown product design into increasing levels of detail
QFD helps in,
Determining what will satisfy the customer and where and how to deploy quality
efforts.
Quality Function Deployment
QFD - A process for determining customer requirements (customer wants)and
translating them into the attributes (the hows) that each functional area can
understand and act on.
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Correlation
matrix
Designrequirements
Customer
require-
ments
Competitive
assessment
Relationship
matrix
Specifications
or
target values
The House of Quality
One of the tools of QFD is House of Quality
House of Quality is a graphic technique for defining the relationship between
customer desires and product (or service)
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QFDHouse of Quality Sequence indicates how to deploy
resources to achieve customer requirements
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Identify customer wants
Identify howthe good / service will satisfy customer wants
Relate customer wantsto product hows
Identify relationships between the firms hows Develop importance ratings
Evaluate competing products
Determine the desirable technical attributes, your
performance, and the competitors performance against theseattributes.
Steps to build House of Quality
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Youve been assigned
temporarily to a QFD
team. The goal of the
team is to develop a new
camera design. Build a
House of Quality.
1984-1994 T/Maker Co.
The House of Quality Example
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QFDHouse of Quality
h l
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Customer
Requirements
Easy to close
Stays open on a hill
Easy to open
Doesnt leak in rain
No road noise
Importance weighting
Engineering
Characteristics
Energyneeded
toclosedoor
Checkforce
onlevel
ground
Energyneeded
toopendoor
Waterresistance
10 6 6 9 2 3
7
5
3
3
2
X
X
X
X
X
Correlation:
Strong positive
Positive
NegativeStrong negative
X*
Competitive evaluation
X = UsA = Comp. A
B = Comp. B(5 is best)
1 2 3 4 5
X AB
X AB
XAB
A X B
X A B
Relationships:
Strong = 9
Medium = 3
Small = 1Target values
Reduceenergy
levelto7.5
ft/lb
Reduceforce
to9lb.
Reduceenergy
to7.5
ft/lb.
Maintain
currentlevel
Technical evaluation
(5 is best)
5
4
3
2
1
B
A
X
BA
X B
A
X
B
X
A
BXABA
X
Doorseal
resistance
Accoust.Trans.
Window
Maintain
currentlevel
Maintain
currentlevel
QFD Another Example
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Kano Model
Customer Needs
CustomerSatisfa
ction
Excitement
Expected
Must Have
Kano Model
O i i f d l
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Four Approaches
1. Traditional US ApproachAn Organization with distinct departments (R & D,Engineering, Manufacturing etc.)
2. Assigning the Product Manager: PM is assigned to champion the product
through the product development system and related organizations.
3. Use of Teams: Product Development Teams, Design for Manufacturability
Teams, Value Engineering Teams
1. Also called as Cross Functional Teams
2. Use of such teams is also called as ConcurrentEngineering(Bringing together of
engineering design and manufacturing personnel early in the design phase.)
4. Japanese Approach:Collegial model and less structured, no strict
departmentalization.
III. Organizing for Product Development
IV M f bili d V l E i i
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Benefits:1. Reduced complexity of the product2. Additional standardization of components:
3. Improvement of functional aspects of the product:
4. Improved Job Design and Job Safety
5. Improved Maintainability (or Serviceability) of a product
6. Robust Design
IV. Manufacturability and Value Engineering
Manufacturability and Value Engineering activities are concerned with
improvement of design and specifications at the Research, Development, Designand Production stages of product development. They provide immediate benefit
of Cost Reduction
ISSU S O O UC SIG
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ISSUES FOR PRODUCT DESIGN
Issues for Product Design
1. Robust Design
2. Modular Design
3. Computer-Aided Design (CAD)
4. Computer-Aided Manufacturing (CAM)
R b t D i
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Robust Design
The product is designed
so that small variations inproduction or assembly
do not adversely affect
the product.
A design that can be
produced to
requirements even with
unfavorable conditions in
the production process.
A Design that results inproducts or services that
can function over a broad
range of conditions.
M d l D i
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Modular design is a form of standardization in which componentparts are subdivided into modules that are easily replaced orinterchanged.
It allows:
easier diagnosis and remedy of failures
easier repair and replacement
simplification of manufacturing and assembly
Adds flexibility to both production and marketing
Products designed in easily segmented components.
Modular Design
Comp ter Aided Design (CAD)
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CAD is the use of computers to interactively design products and prepare
engineering documentation.
CAD allows designers to use 3Dimensional drawings to save time and money. Design engineer develops rough sketch of product
Uses computer to draw product
Often used with CAM
CAD and Internet and E-Commerce
Design for Manufacture and Assembly (DFMA) Software Allows integration
products designs before the product is manufactured
3-D Object Modeling Useful for small prototype development by rapidly
building up a model in very thin layers of synthetic materials for evaluation. Standard for the Exchange of Product Data (STEP): Permits manufacturers to
express 3-D product information in a standard format so it can be exchanged
internationally, allowing geographically dispersed manufacturers to integrate
design, manufacture, and support processes.
Computer Aided Design (CAD)
C t Aid d M f t i (CAM)
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CAM refers to the use of specialized
computer programs to direct andcontrol manufacturing equipment.
Computer Aided Manufacturing (CAM)
D t f P d ti
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Assembly Drawing
Assembly Chart
Route Sheet
Work Order
Documents for Production
Documents for Production
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Documents for Production
Documents for Production
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Documents for Production
Documents for Production
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Documents for Production
Ethics and Environmentally Friendly Designs
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Ethics and Environmentally Friendly Designs
1. At the Design Stage:
2. At the Production Stage:
3. At the Destruction Stage:
Ethical Approach:
View the products from the systems perspective Impact of product on the
entire economy.
Life cycle view of the product from design to disposition.
Ethics and Environmentally Friendly Designs
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Make products recyclable
Use recycled materials
Use less harmful ingredients
Use lighter components
Use less energy
Use less material
Ethics and Environmentally Friendly Designs
Global Product Design
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Virtual teams Uses combined efforts of a team of designers
working in different countries
Provides a range of comparative advantages over
traditional teams such as:
Engaging the best human resources around the world
Possibly operating on a 24-hr basis
Global customer needs assessment
Global design can increase marketability
Global Product Design
Reverse Engineering
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The dismantling and inspecting
of a competitors product to discover
product improvements.
Reverse Engineering
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Thank
You