Product DesignProduct Design

Chapter 3Chapter 3

INTRODUCTION to Operation Management 4e, Schroeder

Copyright © 2008 by The McGraw-Hill Companies, Inc., All Rights Reserved.

McGraw-Hill/Irwin

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OutlineOutlineDESIGN PROCESSDESIGN PROCESS

– Strategies for New-Product IntroductionStrategies for New-Product Introduction

– New-Product Development ProcessNew-Product Development Process

– Cross-Functional Product DesignCross-Functional Product Design

DESIGN TOOLSDESIGN TOOLS

– Quality Function DeploymentQuality Function Deployment

– Design for ManufacturingDesign for Manufacturing

Value AnalysisValue Analysis

Modular DesignModular Design

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Product Design:Product Design:Why Does Operations Care?Why Does Operations Care?

In the old days, “over the wall”In the old days, “over the wall”

NowNow– must be able to make it (process)must be able to make it (process)

technologytechnology

availability of resourcesavailability of resources

– must have the capacitymust have the capacity– must deliver a quality product or servicemust deliver a quality product or service– must decide inventory policiesmust decide inventory policies

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Strategies for New-Product Strategies for New-Product IntroductionIntroduction

Market Pull Market Pull (“We Make What We Can Sell”)(“We Make What We Can Sell”)– food industryfood industry

Technology Push Technology Push (“We Sell What We Can (“We Sell What We Can Make”)Make”)– electronicselectronics

Interfunctional ViewInterfunctional View– personal computerspersonal computers

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New Product Development ProcessNew Product Development Process

Concept DevelopmentConcept Development

Product or Service DesignProduct or Service Design

Pilot Production/TestingPilot Production/Testing

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New Product Design Process New Product Design Process (Figure 3.2)(Figure 3.2)

Pilot production/testing Final process design

Preliminary process design

Concept development

Product design

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New Product Design ProcessNew Product Design Process

•To be ISO 9000 certified, an organization must define and follow a new product design process.

•ISO = International Organization for Standards. www.iso.ch

•We will talk about it more in Chapter 8.

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Cross Functional Product Design (Figure 3.3)Cross Functional Product Design (Figure 3.3)

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Why Don’t Different Areas Cooperate?Why Don’t Different Areas Cooperate?

They don’t speak the same language.They don’t speak the same language.

They have different performance measures.They have different performance measures.

They tend to have different personality types, i.e. They tend to have different personality types, i.e. they don’t think alike.they don’t think alike.

They are defensive about their own turfs.They are defensive about their own turfs.

They are in different physical locations.They are in different physical locations.

They “don’t have time.”They “don’t have time.”

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Quality Function Deployment (QFD)Quality Function Deployment (QFD)

Also known as “House of Quality”Also known as “House of Quality”

Developed in Japan in 1972.Developed in Japan in 1972.

Tool for concurrent design of productsTool for concurrent design of products

Customer Attributes (“Voice of the Customer Attributes (“Voice of the Customer”)Customer”)

Engineering Characteristics (“Voice of the Engineering Characteristics (“Voice of the Engineer”)Engineer”)

TradeoffsTradeoffs

Competitors’ ComparisonCompetitors’ Comparison

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HOUSE OF QUALITY (QFD)

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Design for Manufacturing (DFM)Design for Manufacturing (DFM)

Value Analysis (or engineering)Value Analysis (or engineering)– Simplification of products and processesSimplification of products and processes

Modular DesignModular Design– Multiple products using common parts, Multiple products using common parts,

processes and modules.processes and modules.

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Value AnalysisValue Analysis

Terms in Value Analysis:Terms in Value Analysis:– Objective: primary purpose of the productObjective: primary purpose of the product

– Basic Function: Makes the objective possibleBasic Function: Makes the objective possible

– Secondary Function: How to perform the basic functionSecondary Function: How to perform the basic function

Value analysis seeks to improve the secondary Value analysis seeks to improve the secondary function, e.g. how to open a can or make a tool box.function, e.g. how to open a can or make a tool box.

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Objectives of Value AnalysisObjectives of Value Analysis

Enhance the design of a good or service to provide Enhance the design of a good or service to provide higher higher qualityquality at the same at the same priceprice, or the same , or the same qualityquality at at a lower a lower priceprice..

Modify the design of production process to lower the Modify the design of production process to lower the costcost of a good or service while maintaining or of a good or service while maintaining or improving improving qualityquality..

In other words, improve the ratio of usefulness In other words, improve the ratio of usefulness ((qualityquality) to ) to costcost..

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DFM: An ExampleDFM: An Example

(c) Final design

Design for push-and-snap assembly

(b) Revised design

One-piece base & elimination of fasteners

(a) The original design

Assembly using common fasteners

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DFM: An Example DFM: An Example (continued)(continued)

a. Original Design

• 24 different parts to assemble

• 7 unique parts to manage in inventory

b. Revised Design

• 4 different parts to assemble

• 3 unique parts to manage in inventory

c. Final Design

• 2 parts to assemble and manage

Question: How easy would it be to detect an assembly error with each of the designs?

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Value Analysis at ToyotaValue 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.

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Value Analysis at GMValue 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.

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Modular DesignModular Design

Allows greater variety through ‘mixing and Allows greater variety through ‘mixing and matching’ of modulesmatching’ of modules

Develops a series of basic product components Develops a series of basic product components (modules) for later assembly into multiple products(modules) for later assembly into multiple products

Reduces complexity and costs associated with large Reduces complexity and costs associated with large number of product variationsnumber of product variations

Easy to subcontract production of modulesEasy to subcontract production of modules

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Modular DesignModular DesignVolvo P1 PlatformVolvo P1 Platform– S40 sedanS40 sedan– V50 station wagonV50 station wagon– C70 convertibleC70 convertible– C30 compactC30 compact

Chrysler LX PlatformChrysler LX Platform– Dodge ChargerDodge Charger– Chrysler 300Chrysler 300– Chrysler 300C HemiChrysler 300C Hemi– Dodge Magnum wagonDodge Magnum wagon– Dodge ChallengerDodge Challenger

Source: Boston Globe, 19 February 2006, p. K1.Source: Boston Globe, 19 February 2006, p. K1.

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Dana’s “Rolling Chassis”Dana’s “Rolling Chassis”

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SummarySummaryDESIGN PROCESSDESIGN PROCESS

– Strategies for New-Product IntroductionStrategies for New-Product Introduction

– New-Product Development ProcessNew-Product Development Process

– Cross-Functional Product DesignCross-Functional Product Design

DESIGN TOOLSDESIGN TOOLS

– Quality Function DeploymentQuality Function Deployment

– Design for ManufacturingDesign for Manufacturing

Value AnalysisValue Analysis

Modular DesignModular Design

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End of Chapter Three