3. Generating New Products - OM Issues

8/13/2019 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



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Ethics and Environmentally Friendly Designs


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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.



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Make products recyclable

Use recycled materials

Use less harmful ingredients

Use lighter components

Use less energy

Use less material


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