Management
Design Operations of Goods and Services Chapter 5
Humor in Product Design
As the customer wanted it. As Marketing interpreted it.
1984-1994 T/Maker Co.
1984-1994 T/Maker Co.
As Operations made it.
As Engineering designed it.
1984-1994 T/Maker Co.
1984-1994 T/Maker Co.
Product Life Cycle
Introduction Growth Maturity Decline
Product Life Cycle, Sales, Cost, and Profit
Cost of Development & Manufacture
Sales, Cost & Profit . Sales Revenue
Profit Loss
Growth
Cash flow
Time
Introduction
Maturity
Decline
Products in Various Stages of Life Cycle
Sales
Growth
Roller Blades
Introduction
Maturity
Jet Ski
Decline
Virtual Reality
Time
Boeing 727
Few Successes
Number
2000
Ideas 1750
Design review, Testing, Introduction
1500
1000 500
Market requirement
1000
Functional specifications
500
Product specification
100
25
One success!
0
Development Stage
Product-by-Value Analysis
Lists products in descending order of their individual dollar contribution to the firm. Helps management evaluate alternative strategies.
Product Development Stages
Scope of product development team
Idea generation Assessment of firm's ability to carry out Customer Requirements Functional Specification Scope of design for Product Specifications manufacturability and Design Review value engineering teams Test Market Introduction to Market Evaluation
Quality Function Deployment
Identify customer wants Identify how the good/service will satisfy customer wants Relate customer wants to product hows Identify relationships between the firm's hows Develop importance ratings Evaluate competing of products
House Quality Example
You've 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.
QFD House of Quality
House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements
Organizing for Product Development
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
Issues for Product Development
Robust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design
Computer Aided Design (CAD)
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
1995 Corel Corp.
Benefits of CAD/CAM
Shorter design time Database availability New capabilities
Example: Focus more on product ideas
Improved product quality Reduced production costs
Extensions of CAD
Design for Manufacturing and Assembly (DFMA) 3-D Object Modeling CAD/CAM CAD info is translated into machine control instructions (CAM)
1995 Corel Corp.
Virtual Reality
Computer technology used to develop an interactive, 3-D model of a product. Especially helpful in design of layouts (factory, store, home, office)
Make-or-Buy Decisions
Decide whether or not you want (or need) to produce an item May be able to purchase the item as a "standard item" from another manufacturer