Discussion 7 - 327
Chapter 3:
Product Design
Operations Management in the
Supply Chain: Decisions and Cases,
6th edition
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
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Chapter 3 Outline
• DESIGN PROCESS
• Strategies for New-Product Introduction
• New-Product Development Process
• Cross-Functional Product Design
• Supply Chain Collaboration
• DESIGN TOOLS
• Quality Function Deployment
• Design for Manufacturing – Value Analysis
• Modular Design
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Product Design:
Why Does Operations Care?
• Traditionally: throw the design “over the wall”
• Today:
• must be able to make the product (process)
• technology
• availability of resources
• must have the right type and amount of capacity
• must deliver a quality product or service
• must have right inventory at right time
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Strategies for New-Product Introduction
• Market Pull - “Make what we can sell” • Organize resources to fulfill customer demand • Food industry
• Technology Push - “Sell what we can make” • Develop superior technologies and products • Electronics
• Interfunctional View – most difficult • Cross-functional team design • Personal computers
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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
• Finalizing production process
• Finalizing ‘information package’ specifying details
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New Product Design Process (Figure 3.2)
Pilot production/testing Final process design
Preliminary process design
Concept development
Product design
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Cross-Functional Product Design
• Sequential approach
• Functions (marketing, engineering, operations) operate without consulting each other. This is the ‘over the wall’ approach.
• Often results in misalignment.
• Concurrent approach
• Functions cooperate, work together over the same time frame.
• Cross-functional teams.
• Not always “best” approach.
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Cross-Functional Product Design (Figure 3.3)
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Why Is Functional Cooperation a Challenge?
• They don’t speak the same language.
• They use different performance measures.
• They tend to have different personality types, i.e., they
don’t think alike.
• They can be defensive about their own turfs.
• They may be in different physical locations.
• They “don’t have time.”
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Supply Chain Collaboration
Relationships with Customers
• Ask the right questions
• Provide incentives
• Create collaborative technology
platform
• Include as advisors to design team
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Supply Chain Collaboration
Criteria for Relationships with Suppliers
• Technical expertise
• Capability – cost, time, quality targets
• Capacity
• Low risk
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Quality Function Deployment (QFD)
• “House of Quality”
• Tool for interfunctional cooperation
• Customer Attributes
• “Voice of the Customer”
• Engineering Characteristics
• “Voice of the Engineer”
• Helps identify tradeoffs
• Can include target values and competitive comparison
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House of Quality (QFD)
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HOUSE OF QUALITY (QFD)
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Design for Manufacturing (DFM)
• Value Analysis (usefulness:cost)
• Simplification of products and processes
• Modular Design
• Multiple products using common parts,
processes, and modules
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Objectives of Value Analysis
• Enhance the design of good/service to provide better quality at the same price.
• Modify the design of production process to lower the cost of good/service while maintaining or improving quality.
• In other words, improve the ratio of usefulness (quality) to cost.
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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.
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DFM: An Example
(c) Final design
Design for push-and-snap
assembly
· 2 total parts
· 2 unique parts
(a) The original design
Assembly using
common fasteners
· 24 total parts
· 7 unique parts
(b) Revised design
One-piece base &
elimination of fasteners
· 4 total parts
· 3 unique parts
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Value Analysis at Toyota
GM has 26 different seat frames.
Toyota has 2.
Toyota’s advantage: $500 million
Source: Businessweek, 31 July 2006, p. 57.
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Value Analysis at GM
Bo Anderson (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, $100
million total. It took him 3 months to
convince the engineers to change the hinge.
Source: Businessweek, 31 July 2006, p. 57.
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Modular Design • Allows greater variety through ‘mixing and
matching’ modules
• Develops basic product components (modules) use in multiple products
• High product variety from limited component variety
• Small number of components enables large number of combinations, e.g., Dell notebooks
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Modular Design • Volkswagen A5 Platform
• Audi Q3 crossover SUV • Audi A3 convertible/hatchback • Audi TT turbo hatchback • VW Touran SUV • VW Caddy light commercial vehicle • VW Jetta
• Chrysler LX Platform • Chrysler 300 • Dodge Charger • Dodge Magnum wagon • Lancia Thema (Italian)
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Chapter 3 Outline
• DESIGN PROCESS
• Strategies for New-Product Introduction
• New-Product Development Process
• Cross-Functional Product Design
• Supply Chain Collaboration
• DESIGN TOOLS
• Quality Function Deployment
• Design for Manufacturing – Value Analysis
• Modular Design