Om Section 3 Lecturer
Transcript of Om Section 3 Lecturer
-
8/4/2019 Om Section 3 Lecturer
1/28
Foreign Trade University
-
8/4/2019 Om Section 3 Lecturer
2/28
Content Product Design
Process Selection
Capacity Planning
-
8/4/2019 Om Section 3 Lecturer
3/28
Product Decision
The good or service the organization provides society
Top organizations typically focus on core products:
Core Competency
Customers buy satisfaction, not just a physical good or
particular service
Fundamental to an organization's strategy with implicationsthroughout the operations function
-
8/4/2019 Om Section 3 Lecturer
4/28
Product Decision
Core competency:
- Access to a wide variety of markets- Increase perceived customer benefits
- Hard for competitors to imitate
-
8/4/2019 Om Section 3 Lecturer
5/28
Product Strategy Options
Differentiation
Apple
Low cost
Taco Bell
Rapid response
Toyota
-
8/4/2019 Om Section 3 Lecturer
6/28
Product and Service DesignProcess
Set of activities:
- Translate customer needs and wants into product and
service requirements;- Refine existing products and services;
- Develop new products and/or services;
- Formulate quality goals;
- Formulate cost target;
- Construct and test prototypes;
- Document specifications
-
8/4/2019 Om Section 3 Lecturer
7/28
The Generic Product Development
ProcessPhase 0:Planning
Phase 1:ConceptDevelopment
Phase 2:System-levelDesign
Phase 3:Detail Design
Phase 4:Testing andRefinement
Phase 5:Production Ramp-up
Marketing-Articulate market
opportunity-Define market
segments
-Collect customer
needs.-Identify lead users-Identify
competitive products
-Develop plan for
product options and
extended product
family-Set target sales
price point(s)
-Develop marketing
plan-Develop promotion
and launch materials-Facilitate field
testing
-Place early
production with key
customers
Design-Consider product
platform and
architecture.-Assess new
technologies
-Investigate
feasibility of product
concepts.-Develop industrial
design concepts.-Build and test
experimental
prototypes
-Generate alternative
product
architectures.-Define major
subsystems and
interfaces.-Refine industrial
design
-Define part
geometry.-Choose materials.-Assign tolerances.-Complete industrial
design control
documentation.
-Reliability testing.-Life testing.-Performance
testing.-Obtain regulatory
approvals.-Implement design
changes
Evaluate early
production output.
G
-
8/4/2019 Om Section 3 Lecturer
8/28
The Generic Product Development
ProcessPhase 0:Planning
Phase 1:Concept Development
Phase 2:System-level Design
Phase 3:Detail Design
Phase 4:Testing and
Refinement
Phase 5:Production Ramp-up
Manufacturing-Identify production
constraints-Set supply chain
strategy
-Estimate
manufacturing cost.-Assess production
feasibility
-Identify suppliers for
key components.-Perform make-buy
analysis.-Define final assembly
scheme.-Set target costs
-Define piece-part
production processes.-Design tooling.-Define quality
assurance processes.-Begin procurement of
long-lead tooling.
-Facilitate supplier
ramp-up.-Refine fabrication and
assembly processes.-Train work force.-Refine quality
assurance processes.
-Begin operation of
entire production
system.
Other functions-Research:
Demonstrate available
technologies.-Finance: Provide
planning goals.-General
management: Allocate
project resources
-Finance: Facilitate
economic analysis.-Legal: Investigate
patent issues.
-Finance: Facilitate
make-buy analysis.-Service: Identify
service issues.
Sales: Develop sales
plan.
-
8/4/2019 Om Section 3 Lecturer
9/28
Designing for the customers
Ideal CustomerProduct
House of quality
Quality Function
Deployment
Value Analysis/
Value Engineering
-
8/4/2019 Om Section 3 Lecturer
10/28
Quality Function Deployment An approach to get the voice of the customer into the
design specification of a product.
Use inter-functional teams from marketing, designengineering, and manufacturing
Credited by Toyota Motor Corporation
Reduce costs on its cars by more than 60% (shortening
design times
-
8/4/2019 Om Section 3 Lecturer
11/28
Quality Function Deployment
House of Quality
Consumers
needs andpreferences
Customerrequirements
Technicalrequirements
-
8/4/2019 Om Section 3 Lecturer
12/28
House of Quality
Customer
Requirements
TechnicalCharacteristics
Important
To Customer
1 2 3 4 ... Competitiveevaluation(Company
and its
competitors)
123 Correlation4...Importance WeightingTarget ValuesTechnical evaluation
Correlation
Matrix
-
8/4/2019 Om Section 3 Lecturer
13/28
Value Analysis
Achieve equivalent or better performance at a lower cost while
maintaining all functional requirements defined by the
customer
Does the item have any design features that are notnecessary?
Can two or more parts be combined into one?
How can we cut down the weight?
Are there nonstandard parts that can be eliminated?
-
8/4/2019 Om Section 3 Lecturer
14/28
Standardization Extent to which there is absence of variety in a product,
service, or process.
Eg: Computers, milk, automatic car wash services...
Advantages:
- Interchangeable parts => Reduce variety;- Reduce time and cost to train employees, to design jobs,
to schedule job, handle inventory ...
Disadvantages:
- Limit the range of customers;
- A manufacturer may freeze a design prematurely=> high
cost of design changes leads resistance to improvements
-
8/4/2019 Om Section 3 Lecturer
15/28
Design for Manufacturing
Traditional Approach
- We design it, you build it or Over the wall
Concurrent Engineering
- Lets work together simultaneously
Computer-Aided Design (CAD)- Use computer graphics to design components and
products to exact measurement and detail
-
8/4/2019 Om Section 3 Lecturer
16/28
Measuring Product DevelopmentPerformance
Performance Dimension Measures
Freq. Of new products introduced
Time to market introduction
Number stated and number completed
Actual versus planPercentage of sales from new products
Engineering hours per project
Cost of materials and tooling per project
Actual versus plan
Conformance-reliability in use
Design-performance and customer satisfaction
Yield-factory and field
Time-to-market
Productivity
Quality
-
8/4/2019 Om Section 3 Lecturer
17/28
Process Selection
Forecasting
Product and
Service
Design
Technological
Change
Process
Selection
CapacityPlanning
Facilities and
Equipment
Layout
Work Design
-
8/4/2019 Om Section 3 Lecturer
18/28
Make or Buy Decisions
Available Capacity
Expertise
Quality Considerations
The nature of demand
Cost
-
8/4/2019 Om Section 3 Lecturer
19/28
Process Flow Structure
Job shop (ex. Copy center making a single copy of astudent term paper)
Batch shop (ex. Copy center making 10,000 copies ofan ad piece for a business)
Assembly Line (ex. Automobile manufacturer)
Continuous Flow (ex. Petroleum manufacturer)
-
8/4/2019 Om Section 3 Lecturer
20/28
Product Process Matrix
-
8/4/2019 Om Section 3 Lecturer
21/28
Capacity Planning
An upper limit that an operating unit can handle. An operating unit might be a plant, department, machine,
store, or worker.
Measurement units: number of cars per shift; gallons of
fuel per day, number of meals served per day...
Questions:
- What kind of capacity is needed?- How much is needed?
- When is it needed?
-
8/4/2019 Om Section 3 Lecturer
22/28
Measuring Capacity
Design Capacity: the maximum output that can possibly
be attained (under ideal conditions)
Effective Capacity: the maximum possible output given a
product mix, scheduling difficulties, machine
maintenance, quality factors,...
Actual Output: actual achievement
-
8/4/2019 Om Section 3 Lecturer
23/28
Measurement of system effectiveness
- Efficiency = Actual Output / Effective Capacity
- Utilization = Actual Output / Design Capacity
Example:
-
8/4/2019 Om Section 3 Lecturer
24/28
Determining Capacity Requirement
Longterm consideration
- Overall level of capacity, eg: facility size
- Forecast trend or cycle
Shortterm consideration
- Probable variations in capacity requirements
- Need for seasonal, random or irregular fluctuations
-
8/4/2019 Om Section 3 Lecturer
25/28
Cost Volume Analysis
Also called Break-even analysis
A standard approach to choosing among alternative processes
or equipment
Model seeks to determine the point in units produced (and
sold) where we will start making profit on the process or
equipment
Model seeks to determine the point in units produced (and
sold) where total revenue and total cost are equal
-
8/4/2019 Om Section 3 Lecturer
26/28
Cost Volume Analysis
This formula can be used to find any ofits components algebraically if the other
parameters are known
Break-even Demand= Purchase cost of process or equipmentPrice per unit - Cost per unit
orTotal fixed costs of process or equipment
Unit price to customer - Variable costs per unit
-
8/4/2019 Om Section 3 Lecturer
27/28
ABR NAMEFC Fixed costAVC Variable cost per unitTC Total costTR Total revenueP Price, revenue per unitQ Quantity or volume of outputQBEP Break-even quantity ProfitMC Marginal costMR
Marginal revenue
-
8/4/2019 Om Section 3 Lecturer
28/28
Example
Ha Anh Company wants to make a new product. Cost for
leasing new equipment is $7,000. Variable costs would be
$3 per product, and the product would retail for $8 each.
1. How many products must be sold in order to break
even?
2. What would the profit (loss) be if 1000 products are
made and sold in a month?3. How many products must be sold to realize a profit of
$4000?