OM 300 1st Edition Lecture 4 Outline of Last Lecture I SWOT Analysis II Strategic Planning and Core Competencies III 4 Global Operations Strategy Options IV G S Selection V Product Life Cycle Outline of Current Lecture 1 Product Life Cycle 2 Quality Function Development 3 Organizing for Product Development 4 Benefits and Issues with Product Design 5 Types of Product Design Current Lecture Product Life Cycle Introductory Phase o Fine tuning may warrant unusual expenses for Research Product development Process modification and enhancement Supplier Development Growth Phase o Product design begins to stabilize o Effective forecasting of capacity becomes necessary o Adding or enhancing capacity may be necessary Maturity Phase o Competitors now established o High volume innovative production may be needed o Improved cost control reduction in options paring down of product line Decline Phase o Unless product makes a special contribution to the organization must plan to terminate offering These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Product Life Cycle Costs Product by Value Analysis Lists products in descending order of their individual dollar contribution to the firm Lists the total annual dollar contribution of the product Helps management evaluate alternative strategies New Product Opportunities Figure 5 3 Product Development Stages 1 Understanding the customer 2 Economic change 3 Sociological and demographic change 4 Technological change 5 Political legal change 6 Market practice professional standards suppliers distributors Quality Function Deployment 1 Identify customer wants 2 Identify how the good service will satisfy customer wants 3 Relate customer wants to product hows 4 Identify relationship between the firm s hows 5 Develop importance ratings 6 Evaluate competing products 7 Compare performance to desirable technical attributes QFD House of Quality QFD Details QFD House of Quality Organizing for Product Development Traditionally distinct departments o Duties and responsibilities are defined o Difficult to foster forward thinking A Champion o Product manager drives the product through the product development system and related organizations Team Approach o Cross functional representatives from all disciplines or functions o Product development teams design for manufacturability teams value engineering teams Japanese whole organization approach o No organizational Divisions Manufacturability and Value Engineering Figure 5 5 Benefits 1 Reduced complexity or products 2 Reduction of environmental impact 3 Additional standardization of products 4 Improved functional aspects of product 5 Improved job design and job safety 6 Improved maintainability serviceability of the product 7 Robust Design Issues for Product Design 1 Robust Design a Product is designed so that small variations in production or assembly do not adversely affect the product b Typically results in lower cost and higher quality 2 Modular Design a Products designed in easily segmented components b Adds flexibility to both production and marketing c Improved ability to satisfy customer requirements 3 Computer aided design CAD a Using computers to design products and prepare engineering documentation b Shorter development cycles improved accuracy lower cost c Information and designs can be deployed worldwide d Design for Manufacturing and Assembly DFMA i Solve manufacturing problems during the design stage e 3 D Object Modeling i Small prototype development f CAD through the internet 4 5 6 7 g International data exchange through STEP Computer aided manufacturing CAM a Virtual reality technology a Computer technology used to develop an interactive 3 D model of a product from the basic CAD data b Allows people to see the finished design before a physical model is built c Very effective in large scale designs such as plant layout Value analysis Sustainability and Life Cycle Assessment LCA a Sustainability means meeting the needs of the present without compromising the ability of future generations b LCA is a formal evaluation of the environmental impact of a product Product Developments Contimuum o Product life cycles are becoming shorter and the rate of technological change is increasing o Developing new products faster can result o Time Based Competition Acquiring Technology o By Purchasing a Firm o Speeds development o Issues concern the fit between the acquired organization and product and the host o Through Joint Ventures o Both organizations learn o Both take risks o Through Alliances o Cooperative agreements between independent organizations Defining a Product o First definition is in terms of functions o Rigorous specifications are developed during the design phase o Manufactured products will have an engineering drawing o Bill of material BOM lists the components of a product Product Documents Engineering drawing o Shows dimensions tolerances and materials o Shows codes for Group Technology Bill of Material o Lists components quantities and where used o Shows product structure Documents for Production Assembly drawing o Shoes exploded view of product Assembly chart o How do you do it Route sheet o Lists the operations and times required to produce a component Work order o Instructions to produce a given quantity of a particular item usually to a schedule Engineering change notices ECNs o A correction or modification to a product s definition or documentation Engineering drawings Bill of material Quite common with long product life cycles long manufacturing lead times or rapidly changing technologies