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Agenda:

HOQ (is a technique in quality function development) 1. Quick review A. Important remarks on QFD B.

HW #5 2. Project phase II: team should be actively working on Phase II 3. Aggregate project plan 4. Take home midterm will be handed out in class on Thursday 10/31/2019 & will be due five days later: 5. Tuesday 11/5/19.

HOQ

Important remarks on the HOQ. (And QFD) 1. 1.1 QFD institute => www.qfdi.org has useful information on the HOQ including the HOQ template is -> 1.2 Fact: QFD was developed in Japan Toyota used QFD extensively to - reduce development time by 33% - reduce costs by 50% 1.3 when creating either the list of customer needs to the list of technical metrics, these must be done in a hierarchical manner Example: customer needs for the car door 1.4 where would you obtain good technical metrics (or specifications) for a given product? all product have a USER Manual, usually available on-line, which contains product technical specifications for the product. 2. HW #5 Problem #1 : suspension fork for a bicycle Problem #2: General remark: you can present the HOQ. Information in one of two ways: 1. Create an actual “HOUSE” as was done in the previous lecture (L #9) or the Car Door handout 2. Present the information using the process in L#9, & just presenting the information required in each Step; similar to the SBC case study in the text (HW#5, Prob #1) Prob: Create a HOQ for a (say) cell-phone or laptop or MS word - first step Dissect the product using FAST

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How do we dissect complex products (like laptops, cell-phones, ... ) Process for product dissection (or reverse engineering of a complex product Step 1: Fist understand how the product works: one sourse: “howstuffworks.com”,... =>take notes Step 2: Make a list of all the important sub-systems that are relevant for your FAST diagram. Exmaple System -> Bi-cycle Step 3: make a list of the primary (or main) function, & key sub-functions of the product Sub-function refers to the function of a sub-system Example: Bi-cycle -> main function -> “more from A to B” Sub-system: transmission has sub-functions -> “transmit power to the wheels” Step 4: write down the main function of the system on the extreme wight of the diagram Step 5:organize the diagram with the “WHYs” to the right & the “HOWs” to the left Step 6: Creating a FAST diagram from a complex product is a “Trial & error” process: to minimize the (key step) Trail & error work from both ends of the diagram (using the result of step 2&3)

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Problem 3 (HW #5) HOQ for your team’s proposed new product an important functional map is the technology evolution functional map -> Find products related to your proposed new product -> use the process develop in prob 2 Aggregate project plan Problem: How do we use Decission Analysis (DA) to create the Aggregate project plan, which is the mix of project that the company should perform over (say) the next year. Process: Step1: Identify a set of potential projects (p1, p2, ... , on) from the product development project landscape shown in the lecture #8 Exmaple: p1 : type (a) or R&D project p2: type (b) or platform product ........ Each of these project has Risk that must be modeled (see project in the HW #4) Step 2: for each project, pi, (i = 1,2, ...., n), (I) estimate cost, ci, (i = 1,2, ... , n) (Ii) use the six-step decision analysis process [lecture #6,7] to compute the pay-off or expected monetary value (emv), vi, (i = 1,2, ..., n) Example: HW #4, prob1, R&D project, V = $9.2M HW #4, prob 2, Breaking through project, V = $51.25M Step 3: introduce a project selection decision variable: for each project pi, define a binary variable, Step 4: The Cumulative or total cost, CT, of performing the projects Step 5: calculate the cumulative or total emv, VT

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Step 6: Introduce the capital budget constraint Step 7: pose the optimization (maximization) problem (aka the capital budget problem; aka Integer programming problem; “knapsack problem” in CS) Sterling the ,(i=1, .... n) in order to maxmize the cumulative to total emv (payoff) The solution of the optimization problem (4),(5) gives us the values of Computationally, to solve (4,5) Simple example to illustrate table look-up (I) 3 potential projects: p1, p2, p3

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