Chapter 6 6.

Market practice, professional standards,

Design of Goods suppliers, distributors
and Services
Brainstorming is useful tool
Product Decision
-The good or service the organization provides society Product Development System
-Top organizations typically focus on core products
-Customers buy satisfaction, not just a physical good or
particular service
-Fundamental to an organization's strategy with implications
throughout the operations function

Product Strategy Options

-Differentiation
-Shouldice Hospital
-Low cost Quality Function Deployment
-Taco Bell -Identify customer wants
-Rapid response
-Identify how the good/service will satisfy
-Toyota customer wants

Product Life Cycles -Relate customer wants to product hows

-Identify relationships between the firm’s hows

-Develop importance ratings

-Evaluate competing products

-Compare performance to desirable technical

Attributes

QFD House of Quality

Product Life Cycle Costs

Product-by-Value Analysis

House of Quality Example

-Your team has been charged with designing a
new camera for Great Cameras, Inc.

-The first action is to construct a House of

New Product Opportunities Quality

1.Understanding the customer

2. Economic change
3. Sociological and demographic change
4. Technological change
5. Political/legal change
 House of Quality Sequence Robust Design
Deploying resources through the organization in -Product is designed so that small variations
response to customer requirements production or assembly do not adversely affect
the product

-Typically results in lower cost and higher quality

Modular Design
Organizing for Product Development -​Products designed in easily segmented
components
Historically ​– distinct departments -Adds flexibility to both production
-Duties and responsibilities are defined and marketing
-Difficult to foster forward thinking -Improved ability to satisfy customer
A Champion Requirements
-Product manager drives the product through the
product development system and related organizations Computer Aided Design (CAD)

Team approach -Using computers to design products and

- Cross functional – representatives from prepare engineering documentation
all disciplines or functions -Shorter development cycles, improved
accuracy, lower cost
- Product development teams, design -Information and designs can be deployed
for manufacturability teams, value worldwide
engineering teams Extensions of CAD
Japanese “whole organization” approach -Design for Manufacturing and Assembly
No organizational divisions (DFMA)
-Solve manufacturing problems during the
Manufacturability and Value Engineering design stage
Benefits:
1. Reduced complexity of products -3-D Object Modeling
2. Additional standardization of products -Small prototype development
3. Improved functional aspects of product
4. Improved job design and job safety CAD through the internet
5. Improved maintainability (serviceability) -International data exchange through STEP
of the product
6. Robust design Computer-Aided Manufacturing (CAM)
Cost Reduction of a Bracket via Value Engineering -Utilizing specialized computers and program to
control manufacturing equipment

-Often driven by the CAD system (CAD/CAM)

Benefits of CAD/CAM
Issues for Product Development 1. Product quality
-Robust design 2. Shorter design time
-Modular design 3. Production cost reductions
-Computer-aided design (CAD) 4. Database availability
-Computer-aided manufacturing (CAM) 5. New range of capabilities
-Virtual reality technology Virtual Reality Technology
-Value analysis -Computer technology used to develop an
-Environmentally friendly design interactive, 3-D model of a product from the basic
CAD data

-Allows people to ‘see’ the finished design

before a physical model is built
-Very effective in large-scale designs such as plant -Occupational Safety and Health Administration
layout -Environmental Protection Agency
Value Analysis -Professional ergonomic standards
-Focuses on design improvement during production -State and local laws dealing with
-Seeks improvements leading either to a better employment standards, discrimination, etc.
product or a product which can be produced more
Economically For Disassembly/Disposal …
-Vehicle Recycling Partnership
Ethics and Environmentally Friendly Designs -Increasingly rigid laws worldwide
It is possible to enhance productivity,
drive down costs, and preserve Time-Based Competition
resources -Product life cycles are becoming shorter and
the rate of technological change is increasing
Effective at any stage of the product life cycle
-Design -Developing new products faster can result in a
-Production competitive advantage
-Destruction
The Ethical Approach Product Development Continuum
-View product design from a systems perspective External Development Strategies
-Inputs, processes, outputs
-Costs to the firm/costs to Alliances
Society Joint ventures
Purchase technology or expertise
Consider the entire life cycle of the product by acquiring the developer

Goals for Ethical and Environmentally Friendly Internal Development Strategies

Designs Migrations of existing products
1.Develop safe and more environmentally Enhancements to existing products
sound product New internally developed products
2.Minimize waste of raw materials and energy
3.Reduce environmental liabilities Internal
4.Increase cost-effectiveness of complying Cost of product development
with environmental regulations Shared
5.Be recognized as a good corporate citizen
Lengthy
Guidelines for Environmentally Friendly Designs Speed of product development
1.Make products recyclable Rapid and/
2.Use recycled materials or Existing
3.Use less harmful ingredients
4.Use lighter components High
5.Use less energy Risk of product development
6.Use less material Shared

Legal and Industry Standards Acquiring Technology

For Design … By Purchasing a Firm
-Federal Drug Administration -Speeds development
-Consumer Products Safety Commission -Issues concern the fit between the acquired
-National Highway Safety Administration organization and product and the host
-Children’s Product Safety Act
Through Joint Ventures
-Both organizations learn

For Manufacture/Assembly … -Risks are shared

Through Alliances
-Cooperative agreements between
independent organizations

Defining The Product

-First definition is in terms of functions Group Technology
-Rigorous specifications are developed during the -Parts grouped into families with similar
design phase characteristics
-Manufactured products will have an engineering -Coding system describes processing and
drawing physical
-Bill of material (BOM) lists the components of a characteristics
product -Part families can be produced in dedicated
manufacturing cells
Product Documents
Engineering drawing Group Technology Scheme
-Shows dimensions, tolerances, and materials
-Shows codes for Group Technology

Bill of Material
-Lists components, quantities and where use
-Shows product structure
Group Technology Benefits
Monterey Jack Cheese -Improved design
(a) U.S. grade AA. Monterey cheese shall conform to -Reduced raw material and purchases
the following requirements: -Simplified production planning and control
(1) Flavor. Is fine and highly pleasing, free from -Improved layout, routing, and machine loading
undesirable flavors and odors. May possess a very -Reduced tooling setup time, work-in-process,
slight acid or feed flavor. and production time
(2) Body and texture. A plug drawn from the
cheese shall be reasonably firm. It shall have Documents for Production
numerous small mechanical openings evenly -Assembly drawing
distributed throughout the plug. It shall not -Assembly chart
possess sweet holes, yeast holes, or other gas holes. -Route sheet
(3) Color. Shall have a natural, uniform, bright -Work order
and attractive appearance. -Engineering change notices (ECNs)
(4) Finish and appearance - bandaged and
paraffin-dipped. The rind shall be sound, firm, and Assembly Drawing
smooth providing a good protection to the cheese. -Shows exploded view of product
-Details relative locations to show how to
Engineering Drawings assemble the product

Assembly Chart
-Identifies the point of production where
components flow into subassemblies and
ultimately into the final product

Route Sheet
Bills of Material
Lists the operations and times required to
BOM for Panel Weldment
produce a component
 Work Order
Instructions to produce a given quantity of a
particular item, usually to a schedule
Documents for Services
-High levels of customer interaction necessitates
different documentation

-Often explicit job instructions for

Engineering Change Notice (ECN) moments-of-truth
A correction or modification to a product’s definition or
documentation -Scripts and storyboards are other techniques
-Engineering drawings
-Bill of material Application of Decision Trees to Product
Quite common with long product life cycles, long Design
manufacturing lead times, or rapidly changing -Particularly useful when there are a series of
technologies decisions and outcomes which lead to other
decisions and outcomes
Configuration Management
-The need to manage ECNs has led to the Application of Decision Trees to Product
development of configuration management systems Design

-A product’s planned and changing components are Procedures

accurately identified and control and accountability for -Include all possible alternatives and states of
change are identified and maintained nature - including “doing nothing”

Product Life-Cycle Management (PLM) -Enter payoffs at end of branch

Integrated software that brings together most, if not
all, elements of product design and manufacture -Determine the expected value of each branch
-Product design and “prune” the tree to find the alternative with
-CAD/CAM, DFMA the best expected value
-Product routing
-Materials
-Assembly
-Environmental

Service Design
Service typically includes direct interaction with the
customer
-Increased opportunity for customization
-Reduced productivity

Cost and quality are still determined at the design

stage
-Delay customization
-Modularization
-Reduce customer interaction, often
through automation

Service Design
Transition to Production

Know when to move to production

-Product development can be viewed as
evolutionary and never complete
-Product must move from design to
production in a timely manner

Most products have a trial production period to insure

producibility
-Develop tooling, quality control, training
-Ensures successful production

Responsibility must also transition as the product

moves through its life cycle
-Line management takes over from design

Three common approaches to managing transition

-Project managers
-Product development teams
-Integrate product development and
manufacturing organizations