Design of Goods and Services - University of Northern …schragec/present 5.pdf1 Chris Schrage OPS 5...
Transcript of Design of Goods and Services - University of Northern …schragec/present 5.pdf1 Chris Schrage OPS 5...
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Chris Schrage OPS 5 1
Design of Goods and Services
Operations ManagementChapter 5
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1st of the ten OM strategy decisions
� Products� TANGIBLE� INTANGIBLE
� Product offerings exploit core competencies� Technology� Customization
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Product Strategy Options
DifferentiationLow-costResponse
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Product Life Cycle
� Introductory Phase
�Growth phase
�Maturity Phase
�Decline Phase
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Product by Value Analysis
� Ranking of products based on dollar contribution to company� Individual product
contribution� Total annual contribution
� Focuses the strategic direction for products
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New product opportunities
� Understanding the customer� Economic change� Sociological and demographic
change� Technological change� Political/legal change� Other
� Market practice� Professional standards� Suppliers� Distributors
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New Product Impact
� Generally first mover will acquire major market square
� Hamilton Sundstrand� 1 in 10 projects result in successful product
� Concept to market 15 to 20 years� Millions of dollars of investment per project
� Thousands of new projects every year� Only a fraction gain market acceptance or
enough market share to be profitable
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Product Development� Concepts come from a variety of sources
� Internal� External
� Must be evaluated every step of the processIdeasFirm’s abilities or competenciesCustomer requirementsFunctional specificationsProduct specificationsDesign reviewTest marketIntroductionEvaluation
Scope of product
develop
ment team
Scope of design and engineering teams
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QFD- Quality Function Deployment
� Determining what the customer wants� Translating the customers desires into the design� Seven steps to “House of Quality”
� Identify customer Wants� Determine how the “product” will satisfy –
� Characteristics, features, aesthetics, attributes� Relate the Wants to Hows� Relate to the firm’s Hows� Develop importance ratings� Evaluate competing products� Consider technical attributes
� Your company� Competing firms
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Organizing product development
Firm
R&D Engineering Manufacturing
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Issues for Product Design
� Manufacturability� Value Engineering� Robust design� Modular design� CAD computer aided design� CAM computer aided manufacturing� Virtual reality � Value analysis� Ethics� Environmentally friendly designs
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Product Development Continuum
Cost
Speed
Risk
Internal
SharedHigh
RapidLengthy
Shared
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External Development Strategies
� Purchasing technology by acquiring a firm� Joint ventures
� FAW-VW
� Alliances
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Defining the product
� What is the function of the product?� How should the product be produced to fulfill its
purpose?� What levels of quality are required?
� Engineering Drawings� Bill of Materials
� Listing of components� (recipes)
� Portion-control standards
� Quality specifications
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Documents for production
�Assembly chart�Route sheet�Work order�Engineering change notice (ECN)�Configuration management�Product Life-Cycle Management (PLM)
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Service Design
� Customer interaction� Design� Delivery
� Cost and Quality� Customization delayed to last stages� Modularize segments
� Customization
� Automation/reduced customer interaction
One or the other or both
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Moment of Truth
ExperienceDetractors
StandardExpectations
ExperienceEnhancers
Customer Satisfaction
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Transition to Production
� Project managers� Product development
teams� Integration of the
product development and manufacturing organization
Goal is to make sure the transition from R&D to manufacturing isas smooth as possible.
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Fighting change is like holding your breath. If you persist you will
die.