In this chapter we will discuss: Strategies for new-product introduction, new-product development process, cross-functional product design, supply chain collaboration, quality function deployment, design for manufacturing.
INTRODUCTION to Operations Management Chapter 3, Product Design 5e, Schroeder McGrawHill/Irwin Copyright © 2011 by The McGrawHill Companies, Inc. All rights reserved Outline DESIGN PROCESS – Strategies for NewProduct Introduction – NewProduct Development Process – CrossFunctional Product Design – Supply Chain Collaboration DESIGN TOOLS – Quality Function Deployment – Design for Manufacturing Value Analysis Modular Design 32 Product Design: Why Does Operations Care? In the old days, “over the wall” Now: – must be able to make it (process) technology availability of resources – – – must have the capacity must deliver a quality product or service must decide inventory policies 33 Strategies for New-Product Introduction Market Pull (“We Make What We Can Sell”) – food industry Technology Push (“We Sell What We Can Make”) – electronics Interfunctional View – personal computers 34 35 New Product Development Process Concept Development – Idea generation and evaluation of alternative ideas Product Design – Design of the physical product – Design of the production process Pilot Production/Testing – Testing production prototypes – Finalize the ‘information package’ 36 New Product Design Process (Figure 3.2) Concept development Product design Preliminary process design Pilot production/testing Final process design 37 Cross Functional Product Design Traditionally, individual functional areas (engineering, operations, marketing) operate without consulting each other. This is the sequential or ‘over the wall’ approach Often results in misalignment Concurrent approach requires the various functional areas to cooperate and work together in the same time frame 38 Cross Functional Product Design (Figure 3.3) 39 Why Don’t Different Functional Areas Cooperate? They don’t speak the same language They have different performance measures They tend to have different personality types, i.e., they don’t think alike They are defensive about their own turfs They are in different physical locations They “don’t have time.” 310 HOUSE OF QUALITY (QFD) 315 HOUSE OF QUALITY (QFD) 316 HOUSE OF QUALITY (QFD) 317 Design for Manufacturing (DFM) Value Analysis (or engineering) – Simplification of products and processes Modular Design – Multiple products using common parts, processes, and modules 318 Value Analysis Terms in Value Analysis: – – – Objective: primary purpose of the product Basic Function: Makes the objective possible Secondary Function: How to perform the basic function Value analysis seeks to improve the secondary function, e.g., how to open a can or make a tool box 319 Objectives of Value Analysis Enhance the design of a good or service to provide higher quality at the same price, or the same quality at a lower price Modify the design of production process to lower the cost of a product or service while maintaining or improving quality In other words, improve the ratio of usefulness (quality) to cost 320 DFM: An Example (a) The original design (b) Revised design (c) Final design Assembly using common fasteners One-piece base & elimination of fasteners Design for push-and-snap assembly 321 DFM: An Example (continued) a Original Design • 24 different parts to assemble • unique parts to manage in inventory b Revised Design • different parts to assemble • unique parts to manage in inventory c Final Design • parts to assemble and manage Question: How easy would it be to detect an assembly error with each of the designs? 322 Value Analysis at Toyota GM has 26 different seat frames Toyota has 2 Toyota’s advantage: $500 million Source: Business Week, 31 July 2006, p. 57 323 Value Analysis at GM Bo Andersson (VP Global Purchasing) discovered that door hinges on large SUVs and trucks could be made from 3 parts instead of 5. Savings: $21 per truck or $100 million total. It still took him three months to convince the engineers to change Source: Business Week, 31 July 2006, p. 57 324 Modular Design Allows greater variety through ‘mixing and matching’ of modules Develops a series of basic product components (modules) for later assembly into multiple products Reduces complexity and costs associated with large number of product variations Easy to subcontract production of modules 325 Modular Design Volvo P1 Platform – – – – S40 sedan V50 station wagon C70 convertible C30 compact Chrysler LX Platform – – – – – Dodge Charger Chrysler 300 Chrysler 300C Hemi Dodge Magnum wagon Dodge Challenger Source: Boston Globe, 19 February 2006, p. K1 326 Dana’s “Rolling Chassis” 327 Summary DESIGN PROCESS – Strategies for NewProduct Introduction – NewProduct Development Process – CrossFunctional Product Design – Supply Chain Collaboration DESIGN TOOLS – Quality Function Deployment – Design for Manufacturing Value Analysis Modular Design 328 End of Chapter Three 329 ... different parts to assemble • unique parts to manage in inventory b Revised Design • different parts to assemble • unique parts to manage in inventory c Final Design • parts to assemble and manage... Pilot Production/Testing – Testing production prototypes – Finalize the ‘information package’ 36 New Product Design Process (Figure 3.2) Concept development Product? ?design Preliminary process? ?design. ..Outline DESIGN? ?PROCESS – Strategies for New? ?Product? ?Introduction – New? ?Product? ?Development Process – CrossFunctional? ?Product? ?Design – Supply Chain Collaboration DESIGN? ?TOOLS – Quality Function Deployment