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Syllabus

Syllabus. Class 1 (Mar 10): chap 1; chap 2, case study March 17 – No Class Class 2: (Mar 24) chap 5; chap 6 ( thru 243) Class 3: (Mar 31) chap 7; chap 9 (Take home exam) Class 4: (Apr 7) Webster Spring Break Class 5: (Apr 14) chap 10, chap 11

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Syllabus

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  1. Syllabus • Class 1 (Mar 10): chap 1; chap 2, case study • March 17 – No Class • Class 2: (Mar 24) chap 5; chap 6 ( thru 243) • Class 3: (Mar 31) chap 7; chap 9 (Take home exam) • Class 4: (Apr 7) Webster Spring Break • Class 5: (Apr 14) chap 10, chap 11 • Class 6: (Apr 21) chap 6 (243-250); chap 12, case study • Class 7: (Apr 28) Reverse Logistics – need “The Forklifts Have Nothing To Do!” Available in the Lewis and Clark Bookstore; chap 14; chap 16; Supply Chain Security • Class 8: (May 5) Chap 13; Chap 3, Take home exam • Class 9: (May 12) No Class • Other requirements: →visit Harley-Davidson Plant in Kansas City to see operations management in practice and write a 3-5 page paper comparing the class slides and readings to the Harley operations

  2. Grades • Class Participation – 10% • Mid Term – 40% • Final Exam – 40% • Harley Paper – 10%

  3. Decision Analysis

  4. The Payoff Table • A method of organizing & illustrating the payoffs from different decisions given various states of nature • A payoff is the outcome of the decision – a Craps table pay off chart is an example of a payoff chart

  5. Payoff Table States Of Nature (Alternatives) Decision a b 1 Payoff 1/a Payoff 1/b 2 Payoff 2/a Payoff 2/b

  6. Decision Making Criteria Under Uncertainty • Maximax criterion (optimistic) • Choose decision with the maximum of the maximum payoffs • Minimin criterion (pessimistic)  Choose decision with the minimum of the minimum payoffs Maximin criterion • Choose decision with the maximum of the minimum payoffs

  7. STATES OF NATURE Good Foreign Poor Foreign DECISION Competitive Conditions Competitive Conditions Expand $ 800,000 $ 500,000 Maintain status quo 1,300,000-150,000 Sell now 320,000 320,000 Maximums: 1,300,000; 500,000 Minimums: 500,000; 320,000; -150,000

  8. Chapter 5 Products and Services

  9. Product Design • Specifies materials • Determines dimensions & tolerances • Defines appearance • Sets performance standards

  10. Service Design • Specifies what the customer is to experience • Physical items • Sensual benefits • Psychological benefits

  11. An Effective Design Process • Matches product/service characteristics with customer needs • Meets customer requirements in simplest, most cost-effective manner • Reduces time to market - haste vs. speed to market • Minimizes revisions - quality designed into the product

  12. Stages in the Design Process • Idea Generation — Product Concept - can you create your own market? What role does the voice of the customer play in idea generation? • Feasibility Study — Performance Specifications • Preliminary Design — Prototype - testing and redesign • Final Design — Final Design Specifications • Process Planning — Manufacturing Specifications - make to order/stock – assembly line?

  13. Idea generation Feasibility study Performance specifications Product or service concept Form design Suppliers Customers R&D Revising and testing prototypes Marketing Competitors Production design Functional design Design specifications Manufacturing or delivery specifications New product or service launch Pilot run and final tests Final design & process plans The Design Process

  14. Idea Generation • Suppliers, distributors, salespersons • Trade journals and other published material • Warranty claims, customer complaints, failures • Customer surveys, focus groups, interviews • Field testing, trial users • Research and development

  15. More Idea Generators • Perceptual Maps • Visual comparison of customer perceptions • Benchmarking • Comparing product/service against best-in-class • Reverse engineering • Dismantling competitor’s product to improve your own product

  16. GOOD TASTE LOW NUTRITION HIGH NUTRITION BAD TASTE Perceptual Map of Breakfast Cereals

  17. GOOD TASTE Cocoa Puffs LOW NUTRITION HIGH NUTRITION Cheerios Rice Krispies Wheaties Shredded Wheat BAD TASTE Perceptual Map of Breakfast Cereals

  18. Feasibility Study • Market Analysis - Market Segmentation • Economic Analysis • Technical / Strategic Analysis • Performance Specifications Not unlike mission analysis or Intelligence Preparation of the Battlefield

  19. Risk Analysis 1. Identify the Hazards 2. Assess hazards to determine risks. 3. Develop controls and make risk decisions. 4. Implement controls. 5. Supervise and evaluate. From FM 100-14

  20. Preliminary Design How will it look? • Create form & functional design • Build prototype • Test prototype • Revise prototype • Retest

  21. Functional Design(How the Product Performs) • Reliability • Probability product performs intended function for specified length of time • Maintainability • Ease and/or cost or maintaining/repairing product

  22. 0.90 0.90 Computing Reliability Components in series 0.90 x 0.90 = 0.81

  23. 0.90 0.90 0.90 R2 0.95 R1 Computing Reliability Components in series 0.90 x 0.90 = 0.81 Components in parallel 0.95 + 0.90(1-0.95) = 0.995

  24. MTBF MTBF + MTTR System Availability, SA = System Availability

  25. MTBF MTBF + MTTR System Availability, SA = PROVIDER MTBF (HR) MTTR (HR) A 60 4.0 B 36 2.0 C 24 1.0 System Availability

  26. MTBF MTBF + MTTR System Availability, SA = PROVIDER MTBF (HR) MTTR (HR) A 60 4.0 B 36 2.0 C 24 1.0 System Availability SAA = 60 / (60 + 4) = .9375 or 93.75% SAB = 36 / (36 + 2) = .9473 or 94.73% SAC = 24 / (24 + 1) = .96 or 96%

  27. Production Design • Part of the preliminary design phase • Simplification • Standardization • Modularity

  28. Final Design & Process Plans • Produce detailed drawings & specifications • Create workable instructions for manufacture • Select tooling & equipment • Prepare job descriptions • Determine operation & assembly order • Program automated machines

  29. Improving the Design Process • Design teams • Concurrent design • Design for manufacture & assembly • Design to prevent failures and ensure value • Design for environment • Measure design quality • Utilize quality function deployment • Design for robustness • Engage in collaborative design

  30. Breaking Down Barriers to Effective Design

  31. Design Teams Preferred solution = cross functional teams • Marketing, manufacturing, engineering • Suppliers, dealers, customers • Lawyers, accountants, insurance companies

  32. Concurrent Design • Improves quality of early design decisions • Decentralized - suppliers complete detailed design • Incorporates production process • Scheduling and management can be complex as tasks are done in parallel • include the customer in the process!!

  33. Design for Manufacture and Assembly • Design a product for easy& economical production • Incorporate production design early in the design phase • Improves quality and reduces costs • Shortens time to design and manufacture • also known as Design for Six Sigma

  34. Design for Six Sigma • Define – the goals of the design activity • Measure – customer input to determine what is critical to quality from the customers’ perspective – what are customer delighters? What aspects are critical to quality? • Analyze – innovative concepts for products and services to create value for the customer • Design – new processes, products, and services to deliver customer value • Verify – new systems perform as expected

  35. DFM Guidelines • Minimize the number of parts, tools, fasteners, and assemblies • Use standard parts and repeatable processes • Modular design • Design for ease of assembly, minimal handling • Allow for efficient testing and parts replacement

  36. Design for Assembly (DFA) • Procedure for reducing number of parts • Evaluate methods for assembly • Determine assembly sequence

  37. Design Review • Failure Mode and Effects Analysis (FMEA) • A systematic approach for analyzing causes & effects of failures • Prioritizes failures • Attempts to eliminate causes

  38. Value Analysis (Value Engineering) Is there value added? • Ratio of value / cost • Assessment of value : 1. Can we do without it? 2. Does it do more than is required? 3. Does it cost more than it is worth? 4. Can something else do a better job 5. Can it be made by less costly method, tools, material? 6. Can it be made cheaper, better or faster by someone else?Should we contract it out?

  39. Design for Environment • Design from recycled material • Use materials which can be recycled • Design for ease of repair • Minimize packaging • Minimize material & energy used during manufacture, consumption & disposal • green laws in Europe -

  40. Examples • Recycling of oil • carpets in land fills - 4 billion pounds in land fills annually • Xerox and Hewlett-Packard - pay for return of printer cartridges on larger printers

  41. Quality Function Deployment (QFD) • Translates the “voice of the customer” into technical design requirements • Displays requirements in matrix diagrams • First matrix called “house of quality” • Series of connected houses

  42. Design for Robustness • Product can fail due to poor design quality • Products subjected to many conditions • Robust design studies • Controllable factors - under designer’s control • Uncontrollable factors - from user or environment • Designs products for consistent performance

  43. Consistency is Important • Consistent errors are easier to correct than random errors • Parts within tolerances may yield assemblies which aren’t • Consumers prefer product characteristics near their ideal values

  44. Characteristics of Services • Services are intangible • Service output is variable • Service have higher customer contact • Services are perishable • Service inseparable from delivery • Tend to be decentralized and dispersed • Consumed more often than products • Services can be easily emulated • Call girl principle – value diminishes after service is rendered

  45. A Well-Designed Service System is • Consistent with firm’s strategic focus • Customer friendly • Easy to sustain • Effectively linked between front & back office • Cost effective • Visible to customer

  46. Chapter 6 Processes and Technologies

  47. Process Strategy • Overall approach to producing goods and services • Defines: • Capital intensity • Process flexibility • Vertical integration • Customer involvement

  48. Types of Processes • Projects • Batch production • Mass production • Continuous production

  49. Process Planning • Make-or-buy decisions • Process selection • Specific equipment selection • Process plans • Process analysis

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