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    of 20

    Product Design

    5
    PowerPoint presentation to accompany
    Heizer and Render
    Operations Management, Global Edition, Eleventh Edition
    Principles of Operations Management, Global Edition, Ninth Edition

    PowerPoint slides by Jeff Heyl

    © 2014
    © 2014
    Pearson
    Pearson
    Education
    Education 5-1
    Goods and Services Selection
    ► Organizations exist to provide
    goods or services to society
    ► Goods and services selection are
    critical to achieving competitive
    advantage
    ► Great products are the key to
    success
    ► Top organizations typically focus
    on core products
    © 2014 Pearson Education 5-2
    Some Well Known Companies Having
    Competitive Advantage Through Their
    Products
    Honda: engine technology
    Microsoft: PC software
    Intel: Microprocessors
    Michelin: Tires
    Dell Computer: Customized hardware
    and software and Dell does this very
    fast.

    © 2014 Pearson Education 5-3


    Product Decision

    The objective of the product decision


    is to develop and implement a
    product strategy that meets the
    demands of the marketplace with a
    competitive advantage

    © 2014 Pearson Education 5-4


    Product Life Cycles

    ► May be any length from a few


    days to decades
    ► The operations function must be
    able to introduce new products
    successfully

    © 2014 Pearson Education 5-5


    Product Life Cycles
     May be any length from a few hours
    (a newspaper), months (cell
    phones), years (furnitures), to
    decades (Wolgswagen Beetle)
     A product’s life is divided into four
    phases:1. Introduction, 2. Growth, 3.
    Maturity, 4. Decline
     The operations function must be able
    to introduce new products
    successfully

    © 2014 Pearson Education 5-6


    Product Life Cycle
    Cost of development and production
    Sales, cost, and cash flow

    Sales revenue
    Net revenue (profit)

    Cash
    flow

    Negative
    cash flow Loss

    Introduction Growth Maturity Decline

    Figure 5.2

    © 2014 Pearson Education 5-7


    Life Cycle and Strategy
    Introductory Phase
    ► Fine tuning may warrant
    unusual expenses for
    1. Research
    2. Product development
    3. Process modification and
    enhancement
    4. Supplier development

    © 2014 Pearson Education 5-8


    Product Life Cycle

    Growth Phase

    ► Product design begins to


    stabilize
    ► Effective forecasting of capacity
    becomes necessary
    ► Adding or enhancing capacity
    may be necessary

    © 2014 Pearson Education 5-9


    Product Life Cycle
    Maturity Phase

    ► Competitors now established


    ► High volume, innovative
    production may be needed
    ► Improved cost control, reduction
    in options, paring down of
    product line

    © 2014 Pearson Education 5 - 10


    Product Life Cycle

    Decline Phase

    ► Unless product makes a special


    contribution to the organization,
    must plan to terminate offering

    © 2014 Pearson Education 5 - 11


    Product Definition
    Documents
    ► Engineering drawing
    ► Shows dimensions, tolerances, and
    materials
    ► Shows codes for Group Technology
    ► Bill of Material
    ► Lists components, quantities and where
    used
    ► Shows product structure

    © 2014 Pearson Education 5 - 12


    Engineering Drawings

    Figure 5.8

    © 2014 Pearson Education 5 - 13


    Bills of Material
    Figure 5.9 (a) BOM for a Panel Weldment

    NUMBER DESCRIPTION QTY


    A 60-71 PANEL WELDM’T 1
    A 60-7 LOWER ROLLER ASSM. 1
    R 60-17 ROLLER 1
    R 60-428 PIN 1
    P 60-2 LOCKNUT 1
    A 60-72 GUIDE ASSM. REAR 1
    R 60-57-1 SUPPORT ANGLE 1
    A 60-4 ROLLER ASSM. 1
    02-50-1150 BOLT 1
    A 60-73 GUIDE ASSM. FRONT 1
    A 60-74 SUPPORT WELDM’T 1
    R 60-99 WEAR PLATE 1
    02-50-1150 BOLT 1

    © 2014 Pearson Education 5 - 14


    Documents for Production

    ► Assembly drawing
    ► Assembly chart
    ► Route sheet
    ► Work order
    ► Engineering change notices (ECNs)

    © 2014 Pearson Education 5 - 15


    Assembly Drawing

    ► Shows exploded
    view of product
    ► Details relative
    locations to show
    how to assemble
    the product

    Figure 5.11 (a)

    © 2014 Pearson Education 5 - 16


    Assembly Chart
    R 209 Angle
    1
    Left
    R 207 Angle SA bracket Identifies the point of
    2 A1
    1 assembly
    Bolts w/nuts (2)
    production where
    3 components flow into
    R 209 Angle subassemblies and
    4 ultimately into the final
    Right
    R 207 Angle SA bracket product
    5 A2
    2 assembly
    Bolts w/nuts (2)
    6
    Bolt w/nut
    7
    R 404 Roller
    8 A3
    Lock washer Poka-yoke
    9 inspection
    Part number tag
    10 A4
    Box w/packing material Figure 5.11 (b)
    11 A5

    © 2014 Pearson Education 5 - 17


    Route Sheet
    Lists the operations and times required to
    produce a component

    Setup Operation
    Process Machine Operations Time Time/Unit
    1 Auto Insert 2 Insert Component 1.5 .4
    Set 56
    2 Manual Insert Component .5 2.3
    Insert 1 Set 12C
    3 Wave Solder Solder all 1.5 4.1
    components
    to board
    4 Test 4 Circuit integrity .25 .5
    test 4GY

    © 2014 Pearson Education 5 - 18


    Work Order
    Instructions to produce a given quantity of a
    particular item, usually to a schedule

    Work Order

    Item Quantity Start Date Due Date

    157C 125 5/2/08 5/4/08

    Production Delivery
    Dept Location

    F32 Dept K11

    © 2014 Pearson Education 5 - 19


    Engineering Change Notice
    (ECN)
    ► A correction or modification to a
    product’s definition or documentation
    ► Engineering drawings
    ► Bill of material

    Quite common with long product life cycles,


    long manufacturing lead times, or rapidly
    changing technologies

    © 2014 Pearson Education 5 - 20

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