Bài giảng Operations Management - Chapter 5: Design of Goods and Services

Outline GLOBAL COMPANY PROFILE: REGAL MARINE GOODS AND SERVICES SELECTION Product Strategy Options Support Competitive Advantage Product Life Cycles Life Cycle and Strategy Product-by-value Analysis GENERATING NEW PRODUCTS New Product Opportunities Importance of New Products

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Operations Management Design of Goods and Services Chapter 51OutlineGLOBAL COMPANY PROFILE: REGAL MARINEGOODS AND SERVICES SELECTIONProduct Strategy Options Support Competitive AdvantageProduct Life CyclesLife Cycle and StrategyProduct-by-value AnalysisGENERATING NEW PRODUCTSNew Product OpportunitiesImportance of New Products2Outline - continuedPRODUCT DEVELOPMENTProduct Development SystemQuality Function Deployment (QFD)Organizing for Product DevelopmentManufacturability and Value EngineeringISSUES FOR PRODUCT DESIGNRobust DesignModular DesignComputer-Aided Design (CAD)Computer-Aided ManufacturingVirtual Reality TechnologyValue AnalysisEnvironmentally Friendly Design3Outline - continuedTime-Based CompetitionPurchase of Technology by Acquiring FirmJoint VenturesAlliances Defining the ProductMake-or-buy DecisionsGroup TechnologyDOCUMENTS FOR PRODUCTIONSERVICE DESIGNDocuments for ServiceApplication of Decision Trees to Product DesignTransition to Production4Learning ObjectivesWhen you complete this chapter, you should be able to :Identify or Define:Product life cycleProduct development team Manufacturabililty and value engineeringRobust designTime-based competitionModular designComputer aided designValue analysisGroup technologyConfiguration management5Learning Objectives - ContinuedWhen you complete this chapter, you should be able to:Explain:AlliancesConcurrent engineeringProduct-by-value analysisProduct documentation6Regal MarineGlobal market3-dimensional CADreduced product development timereduced problems with toolingreduced problems in productionAssembly lineJIT7As Engineering designed it.© 1984-1994 T/Maker Co.As Operations made it.© 1984-1994 T/Maker Co.As Marketing interpreted it.© 1984-1994 T/Maker Co.As the customer wanted it.© 1984-1994 T/Maker Co.Humor in Product Design8Need-satisfying offering of an organizationExample P&G does not sell laundry detergentP&G sells the benefit of clean clothesCustomers buy satisfaction, not partsMay be a good or a serviceWhat is a Product?9Product Strategy OptionsProduct differentiationLow costRapid response10Generation of New Product OpportunitiesEconomic changeSociological and demographic changeTechnological changePolitical/legal changeChanges inmarket practiceprofessional standardssuppliers and distributors11Legislation/ Implementation DateStated PurposeIndustry CriticismElectrical-Waste directive (2006)Makes electrical equipment easier to recycle in part by banning some hazardous substancesBans some common flame retardants, raising the likelihood of firesTelecom-data-protection directive (mid-2003)Protects privacy on e-mail and the internetMakes surfing more onerous by restricting use of “cookies” to remember peoples preferencesBiotech-Labeling laws (2003)Strengthens existing food-label laws and introduces labeling for animal feed containing genetically modified contentEncourages food processors and supermarkets to avoid using genetically modified ingredients, and farmers could stop growing themPedestrian-protection initiative (2001-2012) (when all new cars sold in Europe must comply)Reduces injuries and casualties in road accidentsRaises costs of cars and restricts automaker’s design freedomChemicals review (staggered through 2012)Eliminates health hazards due to chemicalsRestricts even minute use of dangerous substances, such as ethanol, in products such as cosmetics and detergentsWarning12ProductProductIdeaPackagePhysicalGoodFeaturesQualityLevelService(Warranty)Brand(Name)Product Components13Product Life CycleIntroductionGrowthMaturityDecline14Product Life Cycle IntroductionFine tuningresearchproduct developmentprocess modification and enhancementsupplier development15Product Life Cycle GrowthProduct design begins to stabilizeEffective forecasting of capacity becomes necessaryAdding or enhancing capacity may be necessary16Product Life Cycle MaturityCompetitors now establishedHigh volume, innovative production may be neededImproved cost control, reduction in options, paring down of product line17Product Life Cycle DeclineUnless product makes a special contribution, must plan to terminate offering18Product Life Cycle, Sales, Cost, and ProfitSales, Cost & Profit . IntroductionMaturityDeclineGrowthCost ofDevelopment& ManufactureSales RevenueTimeCash flowLossProfit19Percent of Sales From New Product20Products in Various Stages of Life CycleGrowthDeclineTimeSalesVirtual RealityRoller BladesJet SkiBoeing 727IntroductionMaturity21Few Successes0500100015002000Development StageNumber1000Market requirementDesign review,Testing, Introduction25Ideas1750Product specification100Functional specificationsOne success!50022Product-by-Value AnalysisLists products in descending order of their individual dollar contribution to the firm.Helps management evaluate alternative strategies.23Product Development StagesIdea generationAssessment of firm’s ability to carry outCustomer RequirementsFunctional SpecificationProduct SpecificationsDesign ReviewTest MarketIntroduction to MarketEvaluationScope of product development teamScope of design for manufacturability and value engineering teams24Quality Function DeploymentIdentify customer wantsIdentify how the good/service will satisfy customer wantsRelate customer wants to product howsIdentify relationships between the firm’s howsDevelop importance ratingsEvaluate competing products25QFD House of Quaoity26House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements27Idea Generation StageProvides basis for entry into marketSources of ideasMarket need (60-80%); engineering & operations (20%); technology; competitors; inventions; employeesFollows from marketing strategyIdentifies, defines, & selects best market opportunities28Customer Requirements StageIdentifies & positions key product benefitsStated in core benefits proposition (CBP)Example: Long lasting with more power (Sears’ Die Hard Battery)Identifies detailed list of product attributes desired by customer Focus groups or 1-on-1 interviewsHouse of QualityCustomer RequirementsProduct Characteristics29Functional Specification StageDefines product in terms of how the product would meet desired attributesIdentifies product’s engineering characteristicsExample: printer noise (dB)Prioritizes engineering characteristicsMay rate product compared to competitors’House of QualityCustomer RequirementsProduct Characteristics30Determines how product will be madeGives product’s physical specifications Example: Dimensions, material etc.Defined by engineering drawingDone often on computerComputer-Aided Design (CAD)Product Specification StageHouse of QualityProductCharacteristicsComponent Specifications31Quality Function DeploymentProduct design process using cross-functional teamsMarketing, engineering, manufacturingTranslates customer preferences into specific product characteristicsInvolves creating 4 tabular ‘Matrices’ or ‘Houses’Breakdown product design into increasing levels of detail32You’ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality.© 1984-1994 T/Maker Co.House of Quality Example33House of Quality ExampleHigh relationship  Medium relationship  Low RelationshipCustomerRequirementsCustomerImportanceTarget Values34House of Quality ExampleHigh relationship  Medium relationship  Low RelationshipTarget ValuesLight weightEasy to useReliableWhat the customer desires (‘wall’)AluminumPartsAutoFocusAutoExposureCustomerRequirementsCustomerImportance35House of Quality ExampleHigh relationship  Medium relationship  Low RelationshipCustomerRequirementsCustomerImportanceTarget ValuesLight weightEasy to useReliableAluminumPartsAutoFocusAutoExposure312Average customer importance rating36House of Quality ExampleHigh relationship  Medium relationship  Low RelationshipCustomerRequirementsCustomerImportanceLight weightEasy to useReliableAluminumPartsAutoFocusAutoExposure321Relationship between customer attributes & engineering characteristics (‘rooms’)37House of Quality ExampleHigh relationship  Medium relationship  Low RelationshipCustomerRequirementsCustomerImportanceTarget ValuesLight weightEasy to useReliableAluminumPartsAutoFocusAutoExposure321511Target values for engineering characteristics (‘basement’); key output38House of Quality ExampleHigh relationship  Medium relationship  Low RelationshipCustomerRequirementsCustomerImportanceTarget ValuesLight weightEasy to useReliableAluminumPartsAutoFocusAutoExposure32151139Organizing for Product DevelopmentHistorically – distinct departmentsDuties and responsibilities are definedDifficult to foster forward thinkingToday – team approachRepresentatives from all disciplines or functionsConcurrent engineering – cross functional team40Manufacturability and Value EngineeringBenefits:reduced complexity of productsadditional standardization of productsimproved functional aspects of productimproved job design and job safetyimproved maintainability of the productrobust design41Cost Reduction of a Bracket via Value Engineering42Issues for Product DevelopmentRobust designTime-based competitionModular designComputer-aided designValue analysisEnvironmentally friendly design43Robust DesignProduct is designed so that small variations in production or assembly do not adversely affect the product44Modular DesignProducts designed in easily segmented components.Adds flexibility to both production and marketing45Designing products at a computer terminal or work stationDesign engineer develops rough sketch of productUses computer to draw productOften used with CAM© 1995 Corel Corp.Computer Aided Design (CAD)46Shorter design timeDatabase availabilityNew capabilities Example: Focus more on product ideasImproved product qualityReduced production costsBenefits of CAD/CAM47Design for Manufacturing and Assembly (DFMA)3-D Object ModelingCAD/CAM – CAD info is translated into machine control instructions (CAM)© 1995 Corel Corp.Extensions of CAD48Virtual RealityComputer technology used to develop an interactive, 3-D model of a product.Especially helpful in design of layouts (factory, store, home, office)49Value AnalysisFocuses on design improvement during productionSeeks improvements leading either to a better product or a product which can be more economically produced.50Environmentally Friendly DesignsBenefitsSafe and environmentally sound productsMinimum raw material and energy wasteProduct differentiationEnvironmental liability reductionCost-effective compliance with environmental regulationsRecognition as good corporate citizen51“Green” ManufacturingMake products recyclableUse recycled materialsUse less harmful ingredientsUse lighter componentsUse less energyUse less material52Time-based CompetitionProduct life cycles are becoming shorter. Faster developers of new products gain on slower developers and obtain a competitive advantage53Product Development ContinuumExternal Development StrategiesAlliances Joint Ventures Purchase Technology or Expertise by Acquiring the DeveloperInternal Development StrategiesMigrations of Existing Products Enhancement to Existing ProductsNew Internally Developed ProductsInternal ----------------------Cost of Product Development --------------------- SharedLengthy --------------------Speed of Product Development---------------Rapid and/or ExistingHigh ------------------------- Risk of Product Development ----------------------- Shared 54Engineering drawingShows dimensions, tolerances, & materialsShows codes for Group TechnologyBill of Material Lists components, quantities & where usedShows product structure© 1984-1994 T/Maker Co.Product Documents55Monterey Jack(a) U.S. grade AA. Monterey cheese shall conform to the following requirements:(1)Flavor. Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feed flavor.(2)Body and texture. A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes(3)Color. Shall have a natural, uniform, bright and attractive appearance.(4)Finish and appearance - bandaged and paraffin-dipped. The rind shall be sound, firm, and smooth providing a good protection to the cheeseCode of Federal Regulation, Parts 53 to 109,. Revised as of Jan. 1, 1985, General Service Administration56Engineering Drawing Example57Engineering Drawings - Show Dimensions, Tolerances, etc.58© 1995 Corel Corp.Bill of Material Example59                                              Bill of Material for a Panel Weldment Hard Rock Café’s Hickory BBQ Bacon CheeseburgerNumberDescriptionQtyDescriptionQtyA60-71Panel Weldm’t1BunHamburger PattyCheddar CheeseBaconBBQ OnionsHickory BBQ SauceBurger Set Lettuce Tomato Red Onion PickleFrench FriesSeasoned Salt11-inch PlateHRC Flag18 oz.2 slices2 strips½ cup1 oz. 1 leaf1 slice4 rings1 slice5 oz.1 tsp11A 60-7R 60-17R 60-428P 60-2Lower Roller Assembly Roller Pin Locknet1111 60-72R 60-57-1A 60-402-50-1150Guide Assem. Rear Support Angle Roller Assem. Bolt1111A 60-73A 60-74R 60-9902-50-1150Guide Assm, Front Support Weldm’t Wear Plate Bolt1111 Bill of Materials – Manufacturing Plant and Fast-Food Restaurant60Make-or-Buy DecisionsDecide whether or not you want (or need) to produce an itemMay be able to purchase the item as a “standard item” from another manufacturer61Parts grouped into familiesSimilar, more standardized partsUses coding systemDescribes processing & physical characteristicsPart families produced in manufacturing cellsMini-assembly lines© 1984-1994 T/Maker Co.Group Technology Characteristics62112mm60mm4mm x 45° chamfer80mmProduct Code: 1 5 3 1 Part function (round rod) Material (steel) Max. length (50 < L < 150) Primary machine (lathe)Round RodGroup Technology Code Example63Group Technology Schemes Enable Grouping of Parts64Improved product designReduced purchasesReduced work-in-process inventoryImproved routing & machine loadingReduced setup & production timesSimplified production planning & controlSimplified maintenanceGroup Technology Benefits65Production DocumentsAssembly DrawingAssembly chartRoute sheetWork order66Shows exploded view of productHeadNeckHandleEnd Cap© 1984-1994 T/Maker Co.Assembly Drawing67123SA1A1A2Tuna FishMayonnaiseBreadTunaAssyFGSandwichAssembly Chart for A Tuna Sandwich68Assembly Drawing and Assembly Chart69Route SheetLists all operations70Work OrderDept Oper DateWorkOrderApproved: JMManufacturing© 1984-1994 T/Maker Co.Authorizes producing a given item, usually to a schedule71Engineering Change Notice (ECN)A correction or modification of an engineering drawing or bill of material72Configuration ManagementA system by which a product’s planned and changing components are accurately identified and for which control and accountability of change are maintained73Service Design - Nature of Customer Participation74Improving Customer Relations at a Drive-up WindowBe especially discreet when talking with customer through the microphoneProvide written instructions for customers who must fill out forms you provideMark lines to be completed or attach a note with instructionsAlways say ”please” and “thank you”Establish eye contact with the customer if the distance allows itIf the transaction requires that the customer park the car and come into the lobby, apologize for the inconvenience.75Moment-of-Truth at a Computer CompanyExperience DetractorsI had to call more than once to get through.A recording spoke to me rather than a personWhile on hold, I get silence,and wonder if I am disconnected.The operator sounded like he was reading a form of routine questions.The operator sounded uninterestedI felt the operator rushed me.Standard ExpectationsOnly one local number needs to be dialedI never get a busy signalI get a human being to answer my call quickly and he or she is pleasant and responsive to my problemA timely resolution to my problem is offeredThe operator is able to explain to me what I can expect to take placeExperience Enhancers The operator was sincerely concerned and apologetic about my problemHe asked intelligent questions that allowed me to feel confident in his abilitiesThe operator offered various times to have work done, to suit my scheduleWays to avoid future problems were suggested76Application of Decision Trees to Product DesignParticularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes.Considerations:Include all possible alternatives and states of nature - including “doing nothing”Enter payoffs at end of branchApproach determining expected values by “pruning” tree77Transition to ProductionFirst issue: knowing when to move to production!Second: must view product development as evolutionary, not responsibility of single individual/departmentThird: expect to need a trial production period to work the bugs outFourth: recognize that responsibility must also transition78
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