developing products and services chapter 15. text: quality management 5 th edition authors: david...
TRANSCRIPT
Text: Quality Management 5th edition
Authors: David Goetsch & Stanley Davis
Where appropriate reference text page numbers will be on bottom of slides
Developing Products and Services
• Why bother?
• New product development process
• What is good design?
– An operations and supply chain perspective
Why Bother?
External benefits
Internal benefits
Exploit strengths/core competencies
Block competitors
Internal Benefits
Shorter cycle time, less cost, less waste, …
For example:
• NCR 2760:– Only 15 “components”
– 85% fewer parts / 65% fewer vendors
– Snaps together
– Lifetime cost for a SINGLE fastener: $12,500
Exploit Strengths and Core Competencies
• Honda – Motorcycles Automobiles
• John Deere– Farm equipment Lawn equipment
• Hewlett-Packard– Color printers Digital photography
Block Competitors
Gillette
• “made a point of designing its Sensor razor so that it … would be difficult for competitors to copy”
Microsoft
• bundling Windows and Explorer
Finally ...
• 30% of revenues and profits come from products introduced in the last 5 years
• Development time decreasing:– Typically 31 months in 1992– Less than 24 months now– Less than 18 months for many high-tech
products
Operations and Supply Chain Operations and Supply Chain PerspectivesPerspectives
• Repeatability, testability and Repeatability, testability and serviceability of the designserviceability of the design
• Product volumesProduct volumes
• Product costsProduct costs
• Match with existing capabilitiesMatch with existing capabilities
Repeatability, Testability and Repeatability, Testability and ServiceabilityServiceability
• Repeatability– Consistent production – Tolerance to manufacturing variations (robustness)
• Testability– Non-value added activity, so should be easy and
inexpensive to do
• Serviceability– Ease of repair, critical for products expected to be
serviced or repaired (autos)
Product Volumes and CostProduct Volumes and Cost
• Determines process strategies– Types of equipment – Level of automation– Staffing required
• Determines level of customization
• Determines level of after-sales support
‘Hidden’ Costs
• Number of parts in a product– Increased handling, tracking, and other
inventory costs– More procedures required
• Engineering changes– Affect entire supply chain
• Transportation costs– Logistics becoming a significant cost– Size, shape, weight, packaging are concerns
Match with Existing Capabilities
• Product design flexibilityEasy to add features?Easy to upgrade?
Examples: PCs, home theater systems
• Process flexibilityShare processes / parts?Will upgrades make current operations
obsolete?
PlanningDesign and
DevelopmentPreparationand Launch
ConceptDevelopment
Time
Survival rateof an idea
$ spenton idea
Model of Development Process
Concept Development
Planning Design and Development
Commercial Preparation
Launch
Propose new technologies
Develop product or service ideas
Identify general performance characteristics
Identify underlying technologies
Develop detailed specifications
Build and test prototypes
Resolve remaining technical problems
Evaluate field experience
Analyze warranty returns
Engineering Functional Activities
Concept Development
Planning Design and Development
Commercial Preparation
Launch
Provide market input
Propose and investigate product or service concepts
Define target customer needs
Estimate sales and margins
Include customer in development effort
Conduct customer tests
Evaluate prototypes
Plan marketing rollout
Train sales force
Prepare sales procedures
Select distribution channels
Fill downstream supply chain
Sell and promote
Marketing Functional Activities
Concept Development
Planning Design and Development
Commercial Preparation
Launch
Scan suppliers for promising technologies and capabilities
Develop initial cost estimates
Identify key supply chain partners
Develop detailed process maps of operations and supply chain flows
Test new processes
Build pilot units using new operations
Train personnel
Verify supply chain flows
Ramp up volumes
Meet cost targets
Meet quality and other performance target goals
Operations and Supply Chain Functional Activities
Concurrent Engineering
CONCEPTDEVELOPMENT
PLANNING
DESIGN ANDDEVELOPMENT
COMMERCIALPREPARATION
LAUNCH
DEVELOPMENT TIME
Overlapping development phases requires tight coordination, but shrinks overall development time
Design Players
• Engineering• Marketing• Accounting• Finance• Designers• Purchasing — presourcing• Suppliers — gray and black box
design participation
Design Approaches
• DMADV (Define-Measure-Analyze-Design-Verify)
• QFD (Quality Function Deployment)• CAD (Computer-Aided Design)• CAD/CAM (Computer-Aided Design / Computer-
Aided Manufacturing)• DFM (Design for Manufacturability)• DFMt (Design for Maintainability)• DFSS (Design for Six Sigma)• DFE (Design for the Environment)
DMADV
Steps
• Define goals and deliverables
• Measure and determine needs and specifications
• Analyze product or process options
• Design product or process
• Verify results
Quality Function Deployment
INEXPENSIVE
RUGGED
GOOD LOOKING
MORE MEMORYFUNCTIONS
IMPORTANCE
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Synergies
QFD Linkages
PRODUCT CHARACTERISTICS
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PRODUCT SPECIFICATIONS
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PROCESS CHARACTERISTICS
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PROCESS SPECIFICATIONS
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Customer requirements product characteristics product specifications
process characteristics process specifications
Design for Manufacturing (DFM)
What are the manufacturing costsof the proposed design?
What Impact?Costs OK?
Reducecomponent
costs
Reduceoperations
costs
Reducedistribution
costs
NO
NO
NOYES
Acceptable DesignGo Ahead
Modular Design
• Allows higher level of customization
• Retains lower-cost advantage of higher volumes for core components
• Easier assembly
• Facilitates servicing and repairs
• Allows for upgrades
Modular Design Examples
• Balley Engineered Structures– 7 different kinds of panels
– “Customized” walk-in coolers
– From these, assembles almost endless variety of finished products
• Personal Computer Manufacturers
• Manufactured Home Builders
DFMt, DFSS, DFE
• DFMt — focuses on long-term serviceability of the product or service
• DFSS — focuses on achieving Six Sigma quality levels less than 3.4 defects per one million opportunities
• DFE — focuses on reducing environmental effects of product or process (Hewlett-Packard design guidelines, page 166)
Target Costing:Value Analysis
Goals:• Maximize function / cost• How can we increase this ratio?• Focus on secondary functions
– Packaging– Shipping– Custom parts and tooling – Use of standard parts– Make versus buy