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Lecture 3 OM

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Lecture 3 OM

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Design of Goods and Services

Topics

1. Generating New Products


2. Product Development Continuum
3. Issues for Product Design
4. Defining a Product
5. Documents for Production
6. Service Design

2
Generating New Products
Product Development Stages

4
Car development process
Quality Function Deployment (QFD)

Customer Requirements Engineering Specifications


 Big TV  Big TV (92”)
 Fast cooling  Fast cooling (40 C to 20 C in 10 minutes)
 Low noise  Low noise (<40 dB)
 Light weight  Light weight (<200 gms)
 Long life  Long life (10K On/Off)
 Comfortable  Comfortable (?)
 Smooth surface  Smooth surface (<5 microns)

 Quality Function Deployment (QFD)


 Determine what will satisfy the customer
 Translate those customer desires into the target design
 QFD is NOT for improving quality.
 House of quality
 A planning matrix to relate customer wants to how the firm
is going to meet those wants.
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House of Quality
Product Development Continuum
Product Development Continuum

Design driven companies


 Apple, Samsung
 Google (205+ products), Microsoft
 3M- over 60K products
 Rubbermaid- ‘00s of products

Product life cycles are becoming shorter


and the rate of technological change is
increasing.
 Time-based competition from price-based
competition.
 Developing new products faster can result in a
competitive advantage.
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Shortening product life cycle

 New technology and changes in the tastes is


reducing product life cycle
 TV, Incandescent bulbs, Watches, Fans…
 Shoes, Garments, Jewelry…

 Product life
 Maruti- 800: 25+ yrs, Ambassador- 40+ yrs.
 Light vehicles, platforms introduced during the 1980s
lasted 8.6 years’ those introduced 1990s and 2000s
existing for an average of 7.6 years.

 Product development time


 The development of a new therapeutic product
10 to 12 years from product identification to
commercialization.
Car development process
Product Development Continuum

External Development Strategies


Alliances
Joint ventures
Purchase technology or expertise
by acquiring the developer

Internal Development Strategies


Migrations of existing products
Enhancements to existing products
New internally developed products

Internal Cost of product development Shared


Lengthy Speed of product development Rapid and/
or Existing
High Risk of product development Shared

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Issues for Product Design
Issues for Product Design

1. Modular design
2. Robust design
3. Value analysis
4. Computer-aided design (CAD)
5. Computer-aided manufacturing (CAM)
6. Virtual reality technology
7. Sustainability and Life Cycle Assessment (LCA)
Modular Design

Products designed in easily segmented components.

Adds flexibility to production and marketing


 A very large number of final products from few
components.
 Operational benefits- lower inventory, fewer machines,
high capacity utilization, economics of scale in
production, fewer vendors, lower product development
cost, shorter assembly time….
Robust Design….1

 The product is designed so that small


variations in production or environment do not
adversely affect product performance.

 Robust design exploits non-linear relationship


between input and output.

 Robust performance to large variations-


Value Analysis….1/2

 Seeks improvements in product design that


leads to a better product which can be
produced more economically.

 Focuses on function of the product.


 Same function can be achieved from different
designs.
 Choose the design with lowest cost.
Value Analysis….2/2

Benefits of Value Analysis- Fewer components, fewer


processes, standard components…lower material cost,
lower manufacturing cost, lower assembly cost…
Design for Manufacturability and Assembly ….1/2

Manufacturability at design stage- DFMA

Benefits:
 Improve ease of manufacture.
 Improve ease of assembly.
 Reduced complexity of the product.
 Additional standardization of components.
 Improved job design and job safety.
 Improved maintainability (serviceability) of the product.
DFMA….2/2

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Computer Aided Design (CAD)

 Using computers to design products and


prepare engineering documentation.

 Operational benefits- Shorter development cycle,


improved accuracy, can be used in CAM….

Popular CAD software-


 AutoCAD, Alibre Design, Geometric Design, CATIA, Femap, Fusion
360, Kompas 3D, Key Creator, LightWave, Solidworks, SketchUp,
SolidFace…..
Extensions of CAD

 3-D Object Modeling for heat,


stress, vibration analysis.

 3-D printing.
 Complex design, low volume,
remote/produce anywhere.
Computer-Aided Manufacturing (CAM)

 Utilizing specialized computers and program


to control manufacturing equipment.
 Often driven by the CAD system (CAD/CAM).

Operational benefits-
 Shorter production time.
 Complex design
 Database availability.
 New range of capabilities.
Car development process
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.
Sustainability and Life Cycle Assessment (LCA)

 Sustainability means meeting the


needs of the present without
compromising the ability of future
generations to meet their needs.

 LCA is a evaluation of the


environmental impact of a product.

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