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SECTION 2 STRATEGIC DESIGN

Operations Management I Dirección de Operaciones I- English teaching. Departamento de Organización de Empresas y Marketing Área de Organización de Empresas. SECTION 2 STRATEGIC DESIGN. 3º GADI- 5º DG-ADI-DER 2013-2014 Slide presentation Chapter 3. CHAPTER 3 PRODUCT DESIGN

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SECTION 2 STRATEGIC DESIGN

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  1. Operations Management I Dirección de Operaciones I- English teaching Departamento de Organización de Empresas y Marketing Área de Organización de Empresas SECTION 2STRATEGIC DESIGN 3º GADI- 5º DG-ADI-DER 2013-2014 SlidepresentationChapter 3

  2. CHAPTER 3 PRODUCT DESIGN 3.1. Product Decision 3.2. Generating New Products 3.3. Product Development 3.4. Techniques for Product Design 3.5. Service Design

  3. 3.1 Product Decision • The good or service the organization provides society • 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 decision: develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage

  4. 3.1 Product Decision Product-by-Value Analysis • Lists products in descending order of their individual dollar contribution to the firm • Lists the total annual euro contribution of the product • Helps management evaluate alternative strategies

  5. 3.1 Product Decision Product-by-Value Analysis (Example) Sam’s Furniture Factory

  6. Percentage of Sales from New Products 50% 40% 30% 20% 10% Industry leader Top third Middle third Bottom third Position of Firm in Its Industry 3.2 Generating New Products Importance of New Products

  7. 3.2 Generating New Products New Product Opportunities Understanding the customer Economic change Sociological and demographic change Technological change Political/legal change Market practice, professional standards, suppliers, distributors Brainstorming is a useful tool

  8. Ideas Ability Customer Requirements Functional Specifications Product Specifications Scope for design and engineering teams Scope of product development team Design Review Test Market Introduction Evaluation 3.3 Product Development Product Development System

  9. 3.3 Product Development 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 products • Tool: House of Quality

  10. Interrelationships How to Satisfy Customer Wants What the Customer Wants Analysis of Competitors Relationship Matrix Technical Attributes and Evaluation 3.3 Product Development

  11. 3.3 Product Development 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 Quality

  12. Interrelationships How to Satisfy Customer Wants What the Customer Wants Analysis of Competitors Relationship Matrix Technical Attributes and Evaluation What the customer wants Customer importance rating (5 = highest) Lightweight 3 Easy to use 4 Reliable 5 Easy to hold steady 2 No double exposures 1 House of Quality Example

  13. Interrelationships How to Satisfy Customer Wants What the Customer Wants Analysis of Competitors Relationship Matrix Technical Attributes and Evaluation Low electricity requirements Aluminum components Auto focus Auto exposure Auto film advance Ergonomic design How to Satisfy Customer Wants House of Quality Example

  14. Interrelationships How to Satisfy Customer Wants What the Customer Wants Analysis of Competitors Relationship Matrix High relationship Medium relationship Low relationship Technical Attributes and Evaluation Lightweight 3 Easy to use 4 Reliable 5 Easy to hold steady 2 No double exposures 1 Relationship matrix House of Quality Example

  15. Interrelationships How to Satisfy Customer Wants What the Customer Wants Analysis of Competitors Relationship Matrix Technical Attributes and Evaluation Low electricity requirements Aluminum components Auto focus Auto exposure Auto film advance Ergonomic design Relationships between the things we can do House of Quality Example

  16. Interrelationships How to Satisfy Customer Wants What the Customer Wants Analysis of Competitors Relationship Matrix Technical Attributes and Evaluation Lightweight 3 Easy to use 4 Reliable 5 Easy to hold steady 2 No double exposures 1 Our importance ratings 22 9 27 27 32 25 Weighted rating House of Quality Example

  17. Interrelationships How to Satisfy Customer Wants What the Customer Wants Analysis of Competitors Relationship Matrix Technical Attributes and Evaluation Company A Company B How well do competing products meet customer wants G P G P F G G P P P Lightweight 3 Easy to use 4 Reliable 5 Easy to hold steady 2 No double exposures 1 Our importance ratings 22 5 House of Quality Example

  18. Interrelationships How to Satisfy Customer Wants What the Customer Wants Analysis of Competitors Relationship Matrix 0.5 A 75% 2’ to ∞ 2 circuits Failure 1 per 10,000 Panel ranking Technical Attributes and Evaluation Technical attributes Company A 0.7 60% yes 1 ok G Company B 0.6 50% yes 2 ok F Us 0.5 75% yes 2 ok G Technical evaluation House of Quality Example

  19. House of Quality Example Completed House of Quality

  20. Quality plan Specific components Production process House 4 Production process Design characteristics House 2 House 3 Specific components Design characteristics House 1 Customer requirements House of Quality Sequence Deploying resources through the organization in response to customer requirements

  21. 3.3 Product Development Organizing for Product Development • Historically – distinct departments • Duties and responsibilities are defined • Difficult to foster forward thinking • Today – team approach • Cross functional – representatives from all disciplines or functions • Concurrent engineering – cross functional team

  22. 3.3 Product Development Manufacturability and Value Engineering • Benefits: • Reduced complexity of products • Additional standardization of products • Improved functional aspects of product • Improved job design and job safety • Improved maintainability of the product • Robust design

  23. 3.4 Techniques for Product Design • Robust design • Modular design • Computer-aided design (CAD) • Computer-aided manufacturing (CAM) • Virtual reality technology • Value analysis • Environmentally friendly design

  24. 3.4 Techniques for Product Design Robust Design • Products designed in easily segmented components • Adds flexibility to both production and marketing • Improved ability to satisfy customer requirements • Product is designed so that small variations in production or assembly do not adversely affect the product • Typically results in lower cost and higher quality Modular Design

  25. Using computers to design products and prepare engineering documentation Shorter development cycles, improved accuracy, lower cost Information and designs can be deployed worldwide 3.4 Techniques for Product Design Computer Aided Design (CAD) Computer Aided Manufacturing (CAM) • Utilizing specialized computers and program to control manufacturing equipment • Often driven by the CAD system

  26. 3.4 Techniques for Product Design Benefits of CAD/CAM • Product quality • Shorter design time • Production cost reductions • Database availability • New range of capabilities

  27. 3.4 Techniques for Product Design Virtual Reality Technology • Computer technology used to develop an 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 layout Value Analysis • Focuses on design improvement during production • Seeks improvements leading either to a better product or a product which can be produced more economically

  28. 3.4 Techniques for Product Design Ethics and Environmentally Friendly Designs It is possible to enhance productivity, drive down costs, and preserve resources The Ethical Approach View product design from a systems perspective Consider the entire life cycle of the product Goals Develop safe and more environmentally sound products Minimize waste of raw materials and energy Reduce environmental liabilities Increase cost-effectiveness of complying with environmental regulations Be recognized as a good corporate citizen

  29. 3.4 Techniques for Product Design Ethics and Environmentally Friendly Designs • Make products recyclable • Use recycled materials • Use less harmful ingredients • Use lighter components • Use less energy • Use less material Guidelines

  30. 3.5 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

  31. (a) Customer participation in design such as pre-arranged funeral services or cosmetic surgery (b) Customer participation in delivery such as stress test for cardiac exam or delivery of a baby (c) Customer participation in design and delivery such as counseling, college education, financial management of personal affairs, or interior decorating 3.5 Service Design

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