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1 Product Design 2021

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9 views

1 Product Design 2021

Uploaded by

asfar ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 40

operat!

ons
management

Pirzada
November 9, 2021
Goods and Services Selection

Excellence is the key to success.

• For max potential for success, many companies focus on only


a few products (core competency).
e.g. Honda: outstanding engines. Intel: microprocessors,

• Companies keep on designing and developing new products.


• This requires strong communication among customer, product,
processes, and suppliers.
Goods and Services Selection: Facts

• 3M’s goal is to produce 30% of its profit from products


introduced in the past 4 years.
• Apple generates almost 60% of its revenue from products
launched in the past 4 years.
Products: Tangible + intangibles (services)
• Disney continues to innovate with new rides.
• DuPont estimates that it takes 250 ideas to yield one
marketable product.
Product decision: is to develop and implement a product strategy
that meets the demands of the marketplace with a competitive
advantage.
Market leader:
A product or company
which has the highest
percentage of total sales
revenue of a particular
market.
Product Life Cycles

Products are born. They live and they die.


Product’s life as divided into:
• Introduction,
• Growth,
• Maturity, and
• Decline

Product life cycles: a few days (Tournament), months (seasonal


fashions), years (Video game), or decades (Boeing 737).
“Fine Design High Dying products
tuned” stabilized volume
production

Figure 5.2:
Product Life Cycle, Sales, Cost, Profit, and Loss
Generating New Products

Communication with customers,


innovative cultures,
R&D,
strong leadership,
formal incentives, and
training.

Reading assignment
Page 204
p r o d c t d e s i g n
Product Design Process

Contract- Manufacturers & Outsourcing


Decision making on which parts, subassemblies will be
designed, manufactured or tested by the company on
contracted with another company or outsourcing of any
operation to another firm.
Product Design Process

Core Competency
- one thing that you can do better than your competitors

 Potential access to wider market (B&D tools)


 Increases customer benefits (Sun)
 Hard to imitate. (Dell)
Product
Development Phases

 Planning: strategy, target market, constrains

 Concept Development, needs of market, concepts evaluated

 System Design : subsystem decomposition

 Design Detail: complete specifications

 Testing/ Refinement: multiple versions

 Production Ramp-up, training, beta versions


Market Systems

 Tech-Push System: new tech Gore-Tex: Teflon


 Platform Tech: around pre-existing tech, Walkman
 Process Intensive Products: new processes/ mass products
e.g. cereal shapes
 Customized Products:
 High-Risk Products: technical/market risks
 Quick Build Products: software, electronics
 Complex Systems: system level issues, aircrafts,
automobiles.
Economic Analysis

 Using measurable factors to help determine:


 Operational design and development decisions
 Go/no-go milestones

 Building a Base-Case Financial Model


 A financial model consisting of major cash flows
 Sensitivity Analysis for “what if” questions
Designing for Customer

 Interfunctional teams: from marketing, design engineering,


and manufacturing

 Voice of the customer

 House of Quality
Quality function deployment: (QFD)

QFD
Determining customer requirements and translating them
into the attributes that each functional area can
understand and act on.

House of quality
A planning matrix to relate customer “wants” to “how” the firm
is going to meet those “wants.”
Building a House of Quality

1. Identify customer wants (‘Whats’)


2. Identify how the good/service will satisfy customer wants.
(specific product characteristics)
3. Relate customer wants to product ‘hows’
4. Identify how do our ‘hows’ tie together?)
5. Develop importance ratings.
6. Evaluate competing products.
7. Determine your performance, and the competitor’s
Performance against these attributes.
Product Design

Customer
requirements is
the basis for this
matrix, and
used to translate
them into
operating or
engineering
goals.
Figure 5.4: House of Quality Sequence Indicates How to Deploy Resources to
Achieve Customer Requirements
Concurrent Engineering

Speedier product development through simultaneous


performance
facilitated by teams representing all affected areas (known as
cross-functional teams).
Designing for
Manufacturing
Traditional Approach
“We design it, you build it” or “Over the wall”

Concurrent Engineering
“Let’s work together simultaneously”
Manufacturability and Value Engineering

1. Reduced complexity of the product.


2. Reduction of environmental impact.
3. Additional standardization of components.
4. Improvement of functional aspects of the product.
5. Improved job design and job safety.
6. Improved maintainability (serviceability) of the product.
7. Robust design.
Designing for Customer

Value Analysis/ Value Engineering


Achieve equivalent or better performance at a lower cost while
maintaining all functional requirements defined by the
customer
 Does the item have any design features that are not
necessary?
 Can two or more parts be combined into one?
 How can we cut down the weight?
 Are there nonstandard parts that can be eliminated?
Each time the bracket is
redesigned and simplified,
we are able to produce it
for less.

Figure 5.5: Cost Reduction of a Bracket via Value Engineering


Designing for
Manufacturing & Assembly

Improvements arise from simplification of the product by


reducing the number of separate parts:

 During the operation of the product, does the part move


relative to all other parts already assembled?
 Must the part be of a different material or be isolated from
other parts already assembled?
 Must the part be separate from all other parts to allow the
disassembly of the product for adjustment or maintenance?
Designing for
Manufacturing & Assembly
Reduction of the number of separate parts

Proposed design (above) and


redesign employing DFA (left).
Designing for
Manufacturing

Performance dimensions and measures

Time-to-market Productivity Quality

 Freq. of new products  Engineering hours per  Conformance-reliability


introduced. project. in use.
Time to market  Cost of materials and Design-performance and
introduction. tooling per project. customer satisfaction.
Number stated and  Actual versus plan.  Yield-factory and field.
number completed.
 Actual versus plan.
 Percentage of sales
from new products.
Self Study

 Manufacturability and Value Engineering

 Issues and types for Product Design


Learning Curves

A curve displaying the relationship between unit production


time and the cumulative number of unit produced.

Assumptions:

The unit production time is inversely proportional to the


cumulative number of unit produced.

The decrease in unit production time decrease with time (or


with cumulative number of unit produced).

The pattern of reduction in unit production time is


predictable.
Learning Curves

It was observed that, as output doubled, there is a reduction in


direct production workers-hours per unit between doubled
units.

This reduction of workers-hours per unit is called as learning


percentage or improvement factor.

Table of unit values for different improvement curves


are given in the book.
Learning Curves
Learning Curves
Learning Curves
Learning Curves

Yx = K xn

x: unit number
Yx : number of direct labor hours required to make xth unit.
K : number of direct labor hours required to make ist unit.
n: logb/ log 2
b: learning percentage

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