2 Chapter Objectives Be able to: Explain why product design is important to the success of a business.Describe the six dimensions of product design that are of particular interest to operations and supply chain managers.Describe the five phases of product and service development and explain the difference between sequential development and concurrent engineering.Discuss the different roles played by areas such as engineering and accounting during the development process.Describe some of the most common approaches to improving product and service designs, including the Define-Measure-Analyze-Design-Verify (DMADV) process, quality function deployment (QFD), design for manufacturability (DFM), and target costing.
4 Four Reasons for Developing New Products and Services New products or services can give firms a competitive advantage in the marketplace.New products or services provide benefits to the firm.Companies develop new products or services to exploit existing capabilities.Companies can use new product development to block out competitors.
5 Product Design Dimensions RepeatabilityTestabilityServiceabilityProduct volumesProduct costsMatch between the design and existing capabilities
6 Product Design Dimensions RepeatabilityConsistent productionTolerance to manufacturing variations (robustness)TestabilityEase with which critical components or functions can be tested during productionServiceabilityEase of repair, service, and evaluation
7 Product Design Dimensions Product VolumesExpanding firm’s operations by building facilities, hiring workers, buying new equipment, or planning with key suppliersProduct CostsObvious costs – Easiest to see and manageHidden costs – Not easy to track but can have a major impactNumber of parts in a productEngineering changesTransportation costs
8 Product Design Dimensions Match with Existing CapabilitiesProduct design flexibilityEasy to add features?Easy to upgrade?Process flexibilityShare processes / parts?Will upgrades make current operations obsolete?
9 Development ProcessConcept development phase – The company identifies ideas for new or revised products and services.Planning phase – The company begins to address the feasibility of a product or service.Design and development phase – The company starts to invest heavily in the development effort and builds and evaluates prototypes.
10 Development ProcessCommercial preparation phase – The firms start to invest heavily in the operations and supply chain resources needed to support the new product or service.Launch phase – For products, this means “filling up” the supply chain with products. For services, it means making the services available to the target marketplace.
12 Sequential Development vs. Concurrent Engineering Sequential development – A process in which a product or service idea must clear specific hurdles before it can go on to the next development phase.Concurrent engineering – A process where activities in different development stages are allowed to overlap with one another, shortening the total development time.
14 Organizational Roles Engineering – Provide the expertise. Marketing – Understanding the marketplace.Accounting – Play the role of “scorekeeper.”Finance – Judge the financial impact and determine how to acquire the needed capital.Designers – Handle product design and create “identities” for companies, environments, and service experiences.Purchasing – Identify the best suppliers and sign them up early in the process. Act as a consultant for materials.Suppliers – Bring opportunities for improvement, reduce financial risks, save time in development.
15 DMADV Steps: Define – Measure – Analyze – Design – Verify Define the project goals and customer deliverablesMeasure and determine customer needs and specificationsAnalyze the product or process options to meet the customer needsDesign the product or processVerify the results
16 Quality Function Deployment Quality function deployment – A graphical tool used to help organizations move from vague notions of what customers want to specific engineering and operational requirementsAlso called the House of Quality
17 Quality Function Deployment QFD Matrix:Left side: Shows customer requirements and their relative importance to target customers.Along the top: Lists specific product characteristics.Main body: Shows how each of the product characteristics does or does not support the customer requirements.Roof: Shows synergies between some of the features.
18 Quality Function Deployment QFD Matrix for a Cell PhoneFigure 15.2
19 Quality Function Deployment Using QFD Matrices to move from Customer Requirements to Process Specifications.Figure 15.3
20 Computer-Aided Systems Computer-aided design (CAD) – An information system that allows engineers to develop, modify, share, and even test designs in a virtual world.Computer-aided design/computer-aided manufacturing system (CAD/CAM) – An extension of CAD where CAD-based designs are translated into machine instructions, which are then fed automatically into computer-controlled manufacturing equipment.
21 Design for… Approaches Design for manufacturability (DFM)Considering manufacturing issues in design and development.Parts standardization, modular architecture.Design for maintainability (DFMt) –Considering maintainability issues over the product’s projected life cycle during the design and development process.
22 Design for… Approaches Design for Six Sigma (DFSS)Considering achieving Six Sigma quality levels inproduct and process design.Design for the environment (DFE)Considering environmental, safety, and health issues over the product’s projected life cycle during the design and development process.
23 Target Costing and Value Analysis Target costing – The process of designing a product to meet a specific cost objective.Setting the planned selling price and subtracting the desired profit as well as marketing and distribution costs.Value analysis – The process of examining all elements of a component, an assembly, an end product, or a service to make sure it fulfills its intended function at the lowest total cost.Value = function/cost
24 Developing Products and Services Case Study Design for Supply Chain Programs
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