INTRODUCTION
to
Operations Management
Chapter 3, Product Design
5e, Schroeder
McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Outline
DESIGN PROCESS
– Strategies for New-Product Introduction
– New-Product Development Process
– Cross-Functional Product Design
– Supply Chain Collaboration
DESIGN TOOLS
– Quality Function Deployment
– Design for Manufacturing
Value Analysis
Modular Design
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Product Design:
Why Does Operations Care?
In the old days, “over the wall”
Now:
– must be able to make it (process)
technology
availability of resources
– must have the capacity
– must deliver a quality product or service
– must decide inventory policies
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Strategies for New-Product
Introduction
Market Pull (“We Make What We Can Sell”)
– food industry
Technology Push (“We Sell What We Can Make”)
– electronics
Interfunctional View
– personal computers
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New Product Development Process
Concept Development
– Idea generation and evaluation of alternative ideas
Product Design
– Design of the physical product
– Design of the production process
Pilot Production/Testing
– Testing production prototypes
– Finalize the ‘information package’
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New Product Design Process (Figure 3.2)
Concept development
Product design
Preliminary process design
Pilot production/testing
Final process design
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Cross Functional Product Design
Traditionally, individual functional areas
(engineering, operations, marketing) operate
without consulting each other. This is the
sequential or ‘over the wall’ approach.
Often results in misalignment.
Concurrent approach requires the various
functional areas to cooperate and work
together in the same time frame.
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Cross Functional Product Design (Figure 3.3)
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Why Don’t Different Functional Areas
Cooperate?
They don’t speak the same language.
They have different performance measures.
They tend to have different personality types, i.e.,
they don’t think alike.
They are defensive about their own turfs.
They are in different physical locations.
They “don’t have time.”
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Supply Chain Collaboration
Working across functional areas
AND collaborating with
customers and suppliers
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Supply Chain Collaboration
Customers
• Ask the right questions
• Provide incentives
• Create collaborative technology
platform
• Include customers as advisors to design
team
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Supply Chain Collaboration
Suppliers should have:
• Technical expertise
• Capability
• Capacity
• Low risk
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Quality Function Deployment (QFD)
Also known as “House of Quality”
Developed in Japan in 1972
Tool for concurrent design of products
Customer Attributes (“Voice of the
Customer”)
Engineering Characteristics (“Voice of the
Engineer”)
Tradeoffs
Competitors’ Comparison
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HOUSE OF QUALITY (QFD)
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HOUSE OF QUALITY (QFD)
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HOUSE OF QUALITY (QFD)
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Design for Manufacturing (DFM)
Value Analysis (or engineering)
– Simplification of products and processes
Modular Design
– Multiple products using common parts,
processes, and modules
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Value Analysis
Terms in Value Analysis:
– Objective: primary purpose of the product
– Basic Function: Makes the objective possible
– Secondary Function: How to perform the basic function
Value analysis seeks to improve the secondary
function, e.g., how to open a can or make a tool box.
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Objectives of Value Analysis
Enhance the design of a good or service to provide
higher quality at the same price, or the same quality at
a lower price.
Modify the design of production process to lower the
cost of a product or service while maintaining or
improving quality.
In other words, improve the ratio of usefulness
(quality) to cost.
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DFM: An Example
(a) The original design
(b) Revised design
(c) Final design
Assembly using
common fasteners
One-piece base &
elimination of fasteners
Design for push-and-snap
assembly
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DFM: An Example (continued)
a.
Original Design
• 24 different parts to assemble
• 7 unique parts to manage in inventory
b.
Revised Design
• 4 different parts to assemble
• 3 unique parts to manage in inventory
c.
Final Design
• 2 parts to assemble and manage
Question: How easy would it be to detect an assembly error with
each of the designs?
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Value Analysis at Toyota
GM has 26 different seat frames.
Toyota has 2.
Toyota’s advantage: $500 million
Source: Business Week, 31 July 2006, p. 57.
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Value Analysis at GM
Bo Andersson (VP Global Purchasing)
discovered that door hinges on large SUVs
and trucks could be made from 3 parts
instead of 5. Savings: $21 per truck or
$100 million total. It still took him three
months to convince the engineers to change.
Source: Business Week, 31 July 2006, p. 57.
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Modular Design
Allows greater variety through ‘mixing and
matching’ of modules
Develops a series of basic product components
(modules) for later assembly into multiple products
Reduces complexity and costs associated with large
number of product variations
Easy to subcontract production of modules
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Modular Design
Volvo P1 Platform
–
–
–
–
S40 sedan
V50 station wagon
C70 convertible
C30 compact
Chrysler LX Platform
–
–
–
–
–
Dodge Charger
Chrysler 300
Chrysler 300C Hemi
Dodge Magnum wagon
Dodge Challenger
Source: Boston Globe, 19 February 2006, p. K1.
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Dana’s “Rolling Chassis”
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Summary
DESIGN PROCESS
– Strategies for New-Product Introduction
– New-Product Development Process
– Cross-Functional Product Design
– Supply Chain Collaboration
DESIGN TOOLS
– Quality Function Deployment
– Design for Manufacturing
Value Analysis
Modular Design
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End of Chapter Three
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