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2008 Prentice Hall, Inc. 5 – 1 Operations Management Chapter 5 – Chapter 5 – Product Product Design Design PowerPoint presentation to accompany PowerPoint presentation to accompany Heizer/Render Heizer/Render Operations Management, Operations Management, 10 Ed. 10 Ed. Extensive changes have been made to this slide set by Ömer Yağız. (revised March 20123

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Page 1: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 1

Operations ManagementOperations ManagementChapter 5 – Chapter 5 – Product Product DesignDesign

PowerPoint presentation to accompany PowerPoint presentation to accompany Heizer/Render Heizer/Render Operations Management, Operations Management, 10 Ed.10 Ed.

Extensive changes have been made to this slide set by Ömer Yağız. (revised March 20123

Page 2: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 2

OutlineOutline

Global Company Profile: Regal Global Company Profile: Regal MarineMarine

Goods and Services SelectionGoods and Services Selection Product Strategy Options Support Product Strategy Options Support

Competitive AdvantageCompetitive Advantage

Product Life CyclesProduct Life Cycles

Life Cycle and StrategyLife Cycle and Strategy

Product-by-Value AnalysisProduct-by-Value Analysis

Page 3: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 3

Outline - ContinuedOutline - Continued Generating New ProductsGenerating New Products

New Product OpportunitiesNew Product Opportunities

Importance of New Products Importance of New Products

Product DevelopmentProduct Development Product Development SystemProduct Development System

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

Organizing for Product DevelopmentOrganizing for Product Development

Manufacturability and Value Manufacturability and Value EngineeringEngineering

Page 4: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 4

Outline - ContinuedOutline - Continued Issues for Product DesignIssues for Product Design

Robust DesignRobust Design

Modular DesignModular Design

Computer-Aided Design (CAD)Computer-Aided Design (CAD)

Computer-Aided Manufacturing (CAM)Computer-Aided Manufacturing (CAM)

Virtual Reality TechnologyVirtual Reality Technology

Value AnalysisValue Analysis

Ethics and Environmentally Friendly Ethics and Environmentally Friendly DesignDesign

Page 5: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 5

Outline - ContinuedOutline - Continued

Time-Based CompetitionTime-Based Competition Purchasing Technology by Acquiring Purchasing Technology by Acquiring

a Firma Firm

Joint VenturesJoint Ventures

Alliances Alliances

Defining a ProductDefining a Product Make-or-Buy DecisionsMake-or-Buy Decisions

Group TechnologyGroup Technology

Page 6: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 6

Outline - ContinuedOutline - Continued

Documents For ProductionDocuments For Production Product Life-Cycle Management (PLM)Product Life-Cycle Management (PLM)

Service DesignService Design Documents for ServicesDocuments for Services

Application of Decision Trees to Application of Decision Trees to Product DesignProduct Design

Transition to ProductionTransition to Production

Page 7: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 7© 2011 Pearson

Regal MarineRegal Marine

Global marketGlobal market

3-dimensional CAD system3-dimensional CAD system Reduced product development timeReduced product development time

Reduced problems with toolingReduced problems with tooling

Reduced problems in productionReduced problems in production

Assembly line productionAssembly line production

JITJIT

Page 8: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 8©

The objective of the product decision The objective of the product decision is to develop and implement a is to develop and implement a

product strategy that meets the product strategy that meets the demands of the marketplace with a demands of the marketplace with a

competitive advantagecompetitive advantage

Product DecisionProduct Decision

Page 9: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 9©

The good or service the organization The good or service the organization provides societyprovides society

Top organizations typically focus on Top organizations typically focus on core productscore products

Customers buy satisfaction, not just Customers buy satisfaction, not just a physical good or particular servicea physical good or particular service

Fundamental to an organization's Fundamental to an organization's strategy with implications throughout strategy with implications throughout the operations functionthe operations function

Product DecisionProduct Decision

Page 10: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 10

Product strategyProduct strategy

Product strategy is vital for a Product strategy is vital for a company’s successcompany’s success

Top companies focus on only a few Top companies focus on only a few products and then concentrate on products and then concentrate on those productsthose products

– Honda – engine technologyHonda – engine technology

– Intel – microprocessorsIntel – microprocessors

– Logitech – mice, keyboardsLogitech – mice, keyboards

– Microsoft – PC softwareMicrosoft – PC software

– HP – laptops, printersHP – laptops, printers

Page 11: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 11

Objective of Product Objective of Product StrategyStrategy

to link product decision withto link product decision with– investmentinvestment

– market sharemarket share

– product life cycleproduct life cycle

– breadth (genişlik, çeşitlilik) of the product linebreadth (genişlik, çeşitlilik) of the product line

Objective of product decision is to Objective of product decision is to develop and implement a product strategy develop and implement a product strategy that meets the demands of the that meets the demands of the marketplace with a competitive advantagemarketplace with a competitive advantage

Page 12: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 12

Product selection-definition-design Product selection-definition-design stagesstages

The good or service the The good or service the organization provides societyorganization provides society

Top organizations typically focus on Top organizations typically focus on core productscore products

Customers buy satisfaction, not just Customers buy satisfaction, not just a physical good or particular servicea physical good or particular service

Fundamental to an organization's Fundamental to an organization's strategy with implications strategy with implications throughout the operations functionthroughout the operations function

Product DecisionProduct Decision

Page 13: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 13

Product Strategy OptionsProduct Strategy Options

DifferentiationDifferentiation Shouldice HospitalShouldice Hospital – hernia (fıtık) – hernia (fıtık)

treatment; Dünyagöz eye centerstreatment; Dünyagöz eye centers

Low costLow cost Taco BellTaco Bell - minimum labor required - minimum labor required

Rapid responseRapid response ToyotaToyota – changing consumer tastes; – changing consumer tastes;

speed of product developmentspeed of product development

Page 14: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 14©

Product Life CyclesProduct Life Cycles

May be any length from a few hours to decades

The operations function must be able to introduce new products successfully

Page 15: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 15©

Product Life CyclesProduct Life Cycles

Negative cash flow

Introduction Growth Maturity Decline

Sal

es,

cost

, an

d c

ash

flo

w Cost of development and production

Cash flow

Net revenue (profit)

Sales revenue

Loss

Figure 5.1

Page 16: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 16©

Product Life CycleProduct Life Cycle

Introductory PhaseIntroductory Phase

Fine tuning may warrant unusual expenses for

1. Research

2. Product development

3. Process modification and enhancement

4. Supplier development

Page 17: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 17©

Product Life CycleProduct Life Cycle

Growth PhaseGrowth Phase

Product design begins to stabilize

Effective forecasting of capacity becomes necessary

Adding or enhancing capacity may be necessary

Page 18: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 18©

Product Life CycleProduct Life Cycle

Maturity PhaseMaturity Phase

Competitors now established

High volume, innovative production may be needed

Improved cost control, reduction in options, paring down of product line

Page 19: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 19©

Product Life CycleProduct Life Cycle

Decline PhaseDecline Phase

Unless product makes a special contribution to the organization, must plan to terminate offering

Page 20: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 20

Product-by-Value AnalysisProduct-by-Value Analysis

Lists products in descending Lists products in descending order of their individual dollar order of their individual dollar contribution to the firmcontribution to the firm

Lists the total annual dollar Lists the total annual dollar contribution of the productcontribution of the product

Helps management evaluate Helps management evaluate alternative strategiesalternative strategies

This is in line with the Pareto This is in line with the Pareto priciple (vital few; not the trivial priciple (vital few; not the trivial many)many)

Page 21: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 21

Product-by-Value AnalysisProduct-by-Value Analysis

Individual Contribution ($)

Total Annual Contribution ($)

Love Seat $102 $36,720

Arm Chair $87 $51,765

Foot Stool $12 $6,240

Recliner $136 $51,000

Sam’s Furniture FactorySam’s Furniture Factory

Page 22: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 22

New Product OpportunitiesNew Product Opportunities

1.1. Understanding the Understanding the customercustomer is basic is basic

2.2. Economic changeEconomic change

3.3. Sociological and Sociological and demographic changedemographic change

4.4. Technological changeTechnological change

5.5. Political/legal changePolitical/legal change

6.6. Market practice, professional Market practice, professional standards, suppliers, distributorsstandards, suppliers, distributors

Brainstorming

is a useful tool

Page 23: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 23

Product Development Product Development SystemSystem

Fig. 5-3

Page 24: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 24

Quality Function Quality Function DeploymentDeployment

Identify customer wantsIdentify customer wants

Identify how the good/service will satisfy Identify how the good/service will satisfy customer wantscustomer wants

Relate customer wants to product howsRelate customer wants to product hows

Identify relationships between the firm’s howsIdentify relationships between the firm’s hows

Develop importance ratingsDevelop importance ratings

Evaluate competing productsEvaluate competing products

Compare performance to desirable technical Compare performance to desirable technical attributesattributes

Page 25: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 25

QFD House of QualityQFD House of Quality

Relationshipmatrix

How to satisfycustomer wants

Interrelationships

Co

mp

etit

ive

asse

ssm

ent

Technicalevaluation

Target values

What the customer

wants

Customer Customer importance importance

ratingsratings

Weighted Weighted ratingrating

Page 26: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 26

House of Quality ExampleHouse of Quality Example

Your team has been charged with Your team has been charged with designing a new camera for Great designing a new camera for Great Cameras, Inc.Cameras, Inc.

The first action is The first action is to construct a to construct a House of QualityHouse of Quality

Page 27: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 27

House of Quality ExampleHouse of Quality Example

CustomerCustomerimportanceimportance

ratingrating(5 = highest)(5 = highest)

Lightweight 3Easy to use 4Reliable 5Easy to hold steady 2Color correction 1

What the What the customer customer

wantswants

What the Customer

Wants

RelationshipMatrix

TechnicalAttributes and

Evaluation

How to SatisfyCustomer Wants

Interrelationships

An

alys

is o

fC

om

pet

ito

rs

Page 28: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 28

House of Quality ExampleHouse of Quality ExampleWhat the Customer

Wants

RelationshipMatrix

TechnicalAttributes and

Evaluation

How to SatisfyCustomer Wants

Interrelationships

An

alys

is o

fC

om

pet

ito

rs

Lo

w e

lect

rici

ty r

equ

irem

ents

Alu

min

um

co

mp

on

ents

Au

to f

ocu

s

Au

to e

xpo

sure

Pai

nt

pal

let

Erg

on

om

ic d

esig

n

How to SatisfyCustomer Wants

Page 29: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 29

Lightweight 3Easy to use 4Reliable 5Easy to hold steady 2Color corrections 1

House of Quality ExampleHouse of Quality ExampleWhat the Customer

Wants

RelationshipMatrix

TechnicalAttributes and

Evaluation

How to SatisfyCustomer Wants

Interrelationships

An

alys

is o

fC

om

pet

ito

rs

High relationshipHigh relationship

Medium relationshipMedium relationship

Low relationshipLow relationship

Relationship matrixRelationship matrix

Page 30: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 30

House of Quality ExampleHouse of Quality ExampleWhat the Customer

Wants

RelationshipMatrix

TechnicalAttributes and

Evaluation

How to SatisfyCustomer Wants

Interrelationships

An

alys

is o

fC

om

pet

ito

rs

Lo

w e

lect

rici

ty r

equ

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ents

Alu

min

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co

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on

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Au

to f

ocu

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Au

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xpo

sure

Pai

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pal

let

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on

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esig

n

Relationships Relationships between the between the things we can dothings we can do

Page 31: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 31

House of Quality ExampleHouse of Quality Example

Weighted Weighted ratingrating

What the Customer

Wants

RelationshipMatrix

TechnicalAttributes and

Evaluation

How to SatisfyCustomer Wants

Interrelationships

An

alys

is o

fC

om

pet

ito

rs

Lightweight 3Easy to use 4Reliable 5Easy to hold steady 2Color corrections 1

Our importance ratings 22 9 27 27 32 25

Page 32: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 32

House of Quality ExampleHouse of Quality Example

Co

mp

any

A

Co

mp

any

B

G PG PF GG PP P

Lightweight 3Easy to use 4Reliable 5Easy to hold steady 2Color corrections 1

Our importance ratings 22 5

How well do How well do competing products competing products meet customer wantsmeet customer wants

What the Customer

Wants

RelationshipMatrix

TechnicalAttributes and

Evaluation

How to SatisfyCustomer Wants

Interrelationships

An

alys

is o

fC

om

pet

ito

rs

Page 33: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 33

House of Quality ExampleHouse of Quality ExampleWhat the Customer

Wants

RelationshipMatrix

TechnicalAttributes and

Evaluation

How to SatisfyCustomer Wants

Interrelationships

An

alys

is o

fC

om

pet

ito

rsTarget values(Technical attributes)

Technical evaluation

Company A 0.7 60% yes 1 ok G

Company B 0.6 50% yes 2 ok F

Us 0.5 75% yes 2 ok G

0.5

A

75%

2’ t

o ∞

2 ci

rcu

its

Fai

lure

1 p

er 1

0,00

0

Pan

el r

anki

ng

Page 34: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 34

House of Quality ExampleHouse of Quality Example

Completed Completed House of House of QualityQuality

Lightweight 3

Easy to use 4

Reliable 5

Easy to hold steady 2

Color correction 1

Our importance ratings

Lo

w e

lect

rici

ty r

equ

irem

ents

Alu

min

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Co

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Co

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G P

G P

F G

G P

P P

Target values(Technical attributes)

Technical evaluation

Company A 0.7 60% yes 1 ok G

Company B 0.6 50% yes 2 ok F

Us 0.5 75% yes 2 ok G

0.5

A

75

%

2’

to ∞

2 c

irc

uit

s

Fa

ilu

re 1

pe

r 1

0,0

00

Pa

ne

l ra

nk

ing

22 9 27 27 32 25

Page 35: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 35

House of Quality SequenceHouse of Quality Sequence

Des

ign

ch

arac

teri

stic

s

Specific components

House 2

Cu

sto

mer

re

qu

irem

ents

Design characteristics

House 1

Sp

ecif

ic

com

po

nen

ts

Production process

House 3 P

rod

uct

ion

p

roce

ss

Quality plan

House 4

Figure 5.4Figure 5.4

Deploying resources through the Deploying resources through the organization in response to organization in response to customer requirementscustomer requirements

Page 36: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 36

QFD SourcesQFD SourcesQFD Institute (http://www.qfdi.org) Institute (http://www.qfdi.org)

Glenn Glenn Mazur

(http://www(http://www.m.mazurazur.net.net))

International International Council for QFD for QFD (ICQFD) (ICQFD) (http://(http://www.www.icqfd.org)icqfd.org)

Akao Prize ( Prize (http://qfdi.org/akaoprize.htm))

Isixsigma (Isixsigma (http://www.isixsigma.com))

Page 37: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 37

QFD SourcesQFD Sources

DRM Associates DRM Associates

((http://www.npd-solutions.com))

QFD at Univ. of SheffieldQFD at Univ. of Sheffield

http://www.hit.ac.il/staff/frumy/QFD_Sheffield.htmQFD2000

Page 38: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 38

QFD SoftwareQFD Software

QFD/CAPTURE by QFD/CAPTURE by QFD Capture

QFD2000 (QFD2000 (http://www.qfd2000.co.uk))

Page 39: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 39

Quality Function Quality Function DeploymentDeployment

The 19th International & 25th N. American

Symposium on QFD

2013 September 6–72013 September 6–7

Santa Fe, New Mexico USASanta Fe, New Mexico USA

Page 40: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 40

Quality Function Quality Function DeploymentDeployment

PLEASE REFER TO SLIDE SET PLEASE REFER TO SLIDE SET

TITLED TITLED

‘‘QUALITY FUNCTION DEPLOYMENT (QFD)’QUALITY FUNCTION DEPLOYMENT (QFD)’

AVAILABLE AT THE COURSE PAGEAVAILABLE AT THE COURSE PAGE

(We will come back to this slide set after we take (We will come back to this slide set after we take an in-depth look at QFD)an in-depth look at QFD)

Page 41: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 41©

Organizing for Product Organizing for Product DevelopmentDevelopment

Historically – distinct departmentsHistorically – distinct departments Duties and responsibilities are Duties and responsibilities are

defineddefined Difficult to foster forward thinkingDifficult to foster forward thinking

A ChampionA Champion Product manager drives the product Product manager drives the product

through the product development through the product development system and related organizations system and related organizations

Page 42: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 42©

Organizing for Product Organizing for Product DevelopmentDevelopment

Team approachTeam approach Cross functional – representatives Cross functional – representatives

from all disciplines or functionsfrom all disciplines or functions

Product development teams, design Product development teams, design for manufacturability teams, value for manufacturability teams, value engineering teamsengineering teams

Japanese “whole organization” Japanese “whole organization” approachapproach No organizational divisionsNo organizational divisions

Page 43: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 43

Manufacturability andManufacturability and Value Engineering Value Engineering

Benefits:Benefits:

1.1. Reduced complexity of productsReduced complexity of products

2.2. Additional standardization of productsAdditional standardization of products

3.3. Improved functional aspects of productImproved functional aspects of product

4.4. Improved job design and job safetyImproved job design and job safety

5.5. Improved maintainability (serviceability) Improved maintainability (serviceability) of the productof the product

6.6. Robust designRobust design

Page 44: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 44

Cost Reduction of a Bracket Cost Reduction of a Bracket via Value Engineeringvia Value Engineering

Figure 5.5Figure 5.5

Page 45: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 45

Issues for Product Issues for Product DevelopmentDevelopment

Robust designRobust design

Modular designModular design

Computer-aided design (CAD)Computer-aided design (CAD)

Computer-aided manufacturing (CAM)Computer-aided manufacturing (CAM)

Virtual reality technologyVirtual reality technology

Value analysisValue analysis

Environmentally friendly designEnvironmentally friendly design

Page 46: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 46

Robust DesignRobust Design

Product is designed so that small Product is designed so that small variations in production or variations in production or assembly do not adversely affect assembly do not adversely affect the productthe product

Typically results in lower cost and Typically results in lower cost and higher qualityhigher quality

Page 47: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 47

Modular DesignModular Design

Products designed in easily Products designed in easily segmented componentssegmented components

Adds flexibility to both production Adds flexibility to both production and marketingand marketing

Improved ability to satisfy customer Improved ability to satisfy customer requirementsrequirements

Page 48: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 48

Using computers to Using computers to design products and design products and prepare engineering prepare engineering documentationdocumentation

Shorter development Shorter development cycles, improved cycles, improved accuracy, lower costaccuracy, lower cost

Information and Information and designs can be designs can be deployed worldwidedeployed worldwide

Computer Aided Design Computer Aided Design (CAD)(CAD)

Page 49: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 49

Design for Manufacturing and Assembly Design for Manufacturing and Assembly (DFMA)(DFMA) Solve manufacturing problems during the Solve manufacturing problems during the

design stagedesign stage

3-D Object Modeling3-D Object Modeling Small prototype Small prototype

developmentdevelopment

CAD through the CAD through the internetinternet

International data International data exchange through STEPexchange through STEP

Extensions of CADExtensions of CAD

Page 50: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 50

Computer-Aided Computer-Aided Manufacturing (CAM)Manufacturing (CAM)

Utilizing specialized computers Utilizing specialized computers and program to control and program to control manufacturing equipmentmanufacturing equipment

Often driven by the CAD system Often driven by the CAD system (CAD/CAM)(CAD/CAM)

Page 51: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 51

1.1. Product qualityProduct quality

2.2. Shorter design timeShorter design time

3.3. Production cost reductionsProduction cost reductions

4.4. Database availabilityDatabase availability

5.5. New range of capabilitiesNew range of capabilities

Benefits of CAD/CAMBenefits of CAD/CAM

Page 52: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 52

Goals for Ethical and Goals for Ethical and Environmentally Friendly Environmentally Friendly

DesignsDesigns

1.1. Develop safe and more environmentally Develop safe and more environmentally sound productssound products

2.2. Minimize waste of raw materials and energyMinimize waste of raw materials and energy

3.3. Reduce environmental liabilitiesReduce environmental liabilities

4.4. Increase cost-effectiveness of complying Increase cost-effectiveness of complying with environmental regulationswith environmental regulations

5.5. Be recognized as a good corporate citizenBe recognized as a good corporate citizen

Page 53: © 2008 Prentice Hall, Inc.5 – 1 Operations Management Chapter 5 – Product Design PowerPoint presentation to accompany Heizer/Render Operations Management,

© 2008 Prentice Hall, Inc. 5 – 53

Service DesignService Design Service typically includes direct Service typically includes direct

interaction with the customerinteraction with the customer Increased opportunity for customizationIncreased opportunity for customization

Reduced productivityReduced productivity

Cost and quality are still determined at Cost and quality are still determined at the design stagethe design stage Delay customizationDelay customization as late in the as late in the

process as possibleprocess as possible

ModularizationModularization (health insurance (health insurance packages, ISP services)packages, ISP services)

Reduce customer interaction, often Reduce customer interaction, often through automationthrough automation (ATM’s, e-ticket) (ATM’s, e-ticket)

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Service typically includes direct Service typically includes direct interaction with the customerinteraction with the customer Increased opportunity for customizationIncreased opportunity for customization

Reduced productivityReduced productivity

Cost and quality are still determined at Cost and quality are still determined at the design stagethe design stage Delay customizationDelay customization

ModularizationModularization

Reduce customer interaction, often Reduce customer interaction, often through automationthrough automation

(c) Customer participation in design and delivery such as counseling, college education, financial management of personal affairs, or interior decorating

Service DesignService Design

Figure 5.12

(a) Customer participation in design such as pre-arranged funeral services or cosmetic surgery

(b) Customer participation in (b) Customer participation in delivery such as stress test for delivery such as stress test for cardiac exam or delivery of a cardiac exam or delivery of a babybaby

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Moments of TruthMoments of Truth

““Kritik an” or “zurnanın zırt dediği an”Kritik an” or “zurnanın zırt dediği an”

Concept created by Jan Carlzon of Concept created by Jan Carlzon of Scandinavian AirwaysScandinavian Airways

Critical moments between the Critical moments between the customer and the organization that customer and the organization that determine customer satisfactiondetermine customer satisfaction

There may be many of these momentsThere may be many of these moments

These are opportunities to gain or These are opportunities to gain or lose businesslose business

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The technician was sincerely concerned and apologetic about my problem

He asked intelligent questions that allowed me to feel confident in his abilities

The technician offered various times to have work done to suit my schedule

Ways to avoid future problems were suggested

Experience Enhancers

Only one local number needs to be dialed

I never get a busy signal

I get a human being to answer my call quickly and he or she is pleasant and responsive to my problem

A timely resolution to my problem is offered

The technician is able to explain to me what I can expect to happen next

Standard Expectations

Moments-of-Truth Moments-of-Truth Computer Company HotlineComputer Company Hotline

I had to call more than once to get through

A recording spoke to me rather than a person

While on hold, I get silence,and wonder if I am disconnected

The technician sounded like he was reading a form of routine questions

The technician sounded uninterested

I felt the technician rushed me

Experience Detractors

Figure 5.13Figure 5.13

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Documents for ServicesDocuments for Services

High levels of customer High levels of customer interaction necessitates different interaction necessitates different documentationdocumentation

Often explicit job instructions for Often explicit job instructions for moments-of-truthmoments-of-truth

Scripts and storyboards are Scripts and storyboards are other techniquesother techniques

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SERVICE BLUEPRINTING & FAILSAFING

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SERVICE BLUEPRINTING & FAILSAFING

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YOU ARE NOT RESPONSIBLE YOU ARE NOT RESPONSIBLE FOR THE SUBSEQUENT FOR THE SUBSEQUENT

MATERIAL MATERIAL

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Virtual Reality TechnologyVirtual Reality Technology

Computer technology used to Computer technology used to develop an interactive, 3-D model of develop an interactive, 3-D model of a product from the basic CAD dataa product from the basic CAD data

Allows people to ‘see’ the finished Allows people to ‘see’ the finished design before a physical model is design before a physical model is builtbuilt

Very effective in large-scale designs Very effective in large-scale designs such as plant layoutsuch as plant layout

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Value AnalysisValue Analysis

Focuses on design improvement Focuses on design improvement during productionduring production

Seeks improvements leading either Seeks improvements leading either to a better product or a product to a better product or a product which can be produced more which can be produced more economicallyeconomically

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Ethics and Environmentally Ethics and Environmentally Friendly DesignsFriendly Designs

It is possible to enhance productivity, It is possible to enhance productivity, drive down costs, and preserve drive down costs, and preserve resourcesresources

Effective at any stage of the product life cycleEffective at any stage of the product life cycle

DesignDesign

ProductionProduction

DestructionDestruction

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The Ethical ApproachThe Ethical Approach

View product design from a View product design from a systems perspectivesystems perspective Inputs, processes, outputsInputs, processes, outputs

Costs to the firm/costs to Costs to the firm/costs to societysociety

Consider the entire life cycle of Consider the entire life cycle of the productthe product

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Guidelines for Environmentally Guidelines for Environmentally Friendly DesignsFriendly Designs

1.1. Make products recyclableMake products recyclable

2.2. Use recycled materialsUse recycled materials

3.3. Use less harmful ingredientsUse less harmful ingredients

4.4. Use lighter componentsUse lighter components

5.5. Use less energyUse less energy

6.6. Use less materialUse less material

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Defining The ProductDefining The Product

First definition is in terms of First definition is in terms of functionsfunctions

Rigorous specifications are Rigorous specifications are developed during the design phasedeveloped during the design phase

Manufactured products will have an Manufactured products will have an engineering drawingengineering drawing

Bill of material (BOM) lists the Bill of material (BOM) lists the components of a productcomponents of a product

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Engineering drawingEngineering drawing

Shows dimensions, tolerances, and Shows dimensions, tolerances, and materialsmaterials

Shows codes for Group TechnologyShows codes for Group Technology

Bill of Material Bill of Material

Lists components, quantities and Lists components, quantities and where usedwhere used

Shows product structureShows product structure

Product DocumentsProduct Documents

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Engineering DrawingsEngineering Drawings

Figure 5.8Figure 5.8

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Bills of MaterialBills of MaterialBOM for Panel WeldmentBOM for Panel Weldment

NUMBERNUMBER DESCRIPTIONDESCRIPTION QTYQTY

A 60-71A 60-71 PANEL WELDM’TPANEL WELDM’T 11

A 60-7A 60-7 LOWER ROLLER ASSM.LOWER ROLLER ASSM. 11R 60-17R 60-17 ROLLER ROLLER 11R 60-428R 60-428 PIN PIN 11P 60-2P 60-2 LOCKNUT LOCKNUT 11

A 60-72A 60-72 GUIDE ASSM. REARGUIDE ASSM. REAR 11R 60-57-1R 60-57-1 SUPPORT ANGLE SUPPORT ANGLE 11A 60-4A 60-4 ROLLER ASSM. ROLLER ASSM. 1102-50-115002-50-1150 BOLT BOLT 11

A 60-73A 60-73 GUIDE ASSM. FRONTGUIDE ASSM. FRONT 11A 60-74A 60-74 SUPPORT WELDM’T SUPPORT WELDM’T 11R 60-99R 60-99 WEAR PLATE WEAR PLATE 1102-50-115002-50-1150 BOLT BOLT 11 Figure 5.9 (a)Figure 5.9 (a)

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Bills of MaterialBills of Material

Hard Rock Hard Rock Cafe’s Hickory Cafe’s Hickory BBQ Bacon BBQ Bacon CheeseburgerCheeseburger

DESCRIPTIONDESCRIPTION QTYQTY

BunBun 11Hamburger pattyHamburger patty 8 oz.8 oz.Cheddar cheeseCheddar cheese 2 slices2 slicesBaconBacon 2 strips2 stripsBBQ onionsBBQ onions 1/2 cup1/2 cupHickory BBQ sauceHickory BBQ sauce 1 oz.1 oz.Burger setBurger set LettuceLettuce 1 leaf1 leaf TomatoTomato 1 slice1 slice Red onionRed onion 4 rings4 rings PicklePickle 1 slice1 sliceFrench friesFrench fries 5 oz.5 oz.Seasoned saltSeasoned salt 1 tsp.1 tsp.11-inch plate11-inch plate 11HRC flagHRC flag 11

Figure 5.9 (b)Figure 5.9 (b)

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Parts grouped into families with Parts grouped into families with similar characteristicssimilar characteristics

Coding system describes Coding system describes processing and physical processing and physical characteristicscharacteristics

Part families can be produced Part families can be produced in dedicated manufacturing cellsin dedicated manufacturing cells

Group TechnologyGroup Technology

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Group Technology SchemeGroup Technology Scheme

Figure 5.10Figure 5.10

(a) Ungrouped Parts(b) Grouped Cylindrical Parts (families of parts)

Grooved Slotted Threaded Drilled Machined

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1.1. Improved designImproved design

2.2. Reduced raw material and purchasesReduced raw material and purchases

3.3. Simplified production planning and Simplified production planning and controlcontrol

4.4. Improved layout, routing, and Improved layout, routing, and machine loadingmachine loading

5.5. Reduced tooling setup time, work-in-Reduced tooling setup time, work-in-process, and production timeprocess, and production time

Group Technology BenefitsGroup Technology Benefits

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Documents for ProductionDocuments for Production

Assembly drawingAssembly drawing

Assembly chartAssembly chart

Route sheetRoute sheet

Work orderWork order

Engineering change notices (ECNs)Engineering change notices (ECNs)

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Assembly DrawingAssembly Drawing

Shows exploded Shows exploded view of productview of product

Details relative Details relative locations to locations to show how to show how to assemble the assemble the productproduct

Figure 5.11 (a)Figure 5.11 (a)

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Assembly ChartAssembly Chart

1

2

3

4

5

6

7

8

9

10

11

R 209 AngleR 209 Angle

R 207 AngleR 207 Angle

Bolts w/nuts (2)Bolts w/nuts (2)

R 209 AngleR 209 Angle

R 207 AngleR 207 Angle

Bolt w/nutBolt w/nut

R 404 RollerR 404 Roller

Lock washerLock washer

Part number tagPart number tag

Box w/packing materialBox w/packing material

Bolts w/nuts (2)Bolts w/nuts (2)

SA1

SA2

A1

A2

A3

A4

A5

LeftLeftbracketbracket

assemblyassembly

RightRightbracketbracket

assemblyassembly

Poka-yoke Poka-yoke inspectioninspection

Figure 5.11 (b)Figure 5.11 (b)

Identifies the point Identifies the point of production of production where components where components flow into flow into subassemblies and subassemblies and ultimately into the ultimately into the final productfinal product

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Route SheetRoute Sheet

Lists the operations and times required Lists the operations and times required to produce a componentto produce a component

Setup OperationProcess Machine Operations Time Time/Unit

1 Auto Insert 2 Insert Component 1.5 .4 Set 562 Manual Insert Component .5 2.3

Insert 1 Set 12C3 Wave Solder Solder all 1.5 4.1

components to board

4 Test 4 Circuit integrity .25 .5test 4GY

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Work OrderWork Order

Instructions to produce a given quantity Instructions to produce a given quantity of a particular item, usually to a scheduleof a particular item, usually to a schedule

Work Order

Item Quantity Start Date Due Date

Production DeliveryDept Location

157C 125 5/2/08 5/4/08

F32 Dept K11

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Engineering Change Notice Engineering Change Notice (ECN)(ECN)

A correction or modification to a A correction or modification to a product’s definition or product’s definition or documentationdocumentation Engineering drawingsEngineering drawings

Bill of materialBill of material

Quite common with long product life cycles, long manufacturing lead times, or

rapidly changing technologies

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Configuration ManagementConfiguration Management

The need to manage ECNs has led The need to manage ECNs has led to the development of configuration to the development of configuration management systemsmanagement systems

A product’s planned and changing A product’s planned and changing components are accurately components are accurately identified and control and identified and control and accountability for change are accountability for change are identified and maintainedidentified and maintained

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Product Life-Cycle Product Life-Cycle Management (PLM)Management (PLM)

Integrated software that brings Integrated software that brings together most, if not all, elements of together most, if not all, elements of product design and manufactureproduct design and manufacture Product designProduct design

CAD/CAM, DFMACAD/CAM, DFMA

Product routingProduct routing

MaterialsMaterials

AssemblyAssembly

EnvironmentalEnvironmental

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Transition to ProductionTransition to Production

Know when to move to productionKnow when to move to production Product development can be viewed as Product development can be viewed as

evolutionary and never completeevolutionary and never complete

Product must move from design to Product must move from design to production in a timely mannerproduction in a timely manner

Most products have a trial production Most products have a trial production period to insure producibilityperiod to insure producibility Develop tooling, quality control, trainingDevelop tooling, quality control, training

Ensures successful productionEnsures successful production

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Transition to ProductionTransition to Production

Responsibility must also transition as the Responsibility must also transition as the product moves through its life cycleproduct moves through its life cycle Line management takes over from designLine management takes over from design

Three common approaches to managing Three common approaches to managing transitiontransition Project managersProject managers

Product development teamsProduct development teams

Integrate product development and Integrate product development and manufacturing organizationsmanufacturing organizations