OPMT 303 1st Edition Lecture 3 Chapter Outline 1 Reasons for Products and service design 2 Major Functions of Strategy Design 3 Product Design 4 Service Design I Reasons for Product and service design a Economic i Low demand high cost ii Warranty claims iii Need to reduce cost b Social and Demographic i Aging ii Population shifts c Political liability or legal i Government changes ii New laws iii Safety issues d Competitive i New products or services ii Enhanced products or services iii New advertising e Cost of Availability i Raw materials ii Components iii Labor cost iv Resources f Technological i Processes ii Products Product and service design redesign should be closely related to the organizations strategy II Major functions of design strategy a Customer satisfaction b Cost III c Quality d Time to market e Competitive advantage Product Design a R D research and development organized efforts that are directed toward increasing scientific knowledge and product or process innovation i Advances in medicine semiconductors communication and space technology ii Basic research applied research or development b Warranty claims i Increased legal cost c Legal ethical and environmental i Productivity liability responsibility of manufacturers for any injury or damage caused by a faulty product because of poor workmanship or design ii Uniform commercial code products carry an implication of merchantability and fitness a product must be useable for its intended purposes d Competitiveness i Reverse engineering when companies purchase a competitor s product and they carefully dismantle it and inspect it searching for ways to improve their own product ii Benchmarking identifying others organizations that are best at something and study how they do it to improve their own operation e Concurrent Engineering i Bringing design and manufacturing engineering people together early in the design phase to simultaneously develop the product and the process for creating the product f CAD i Computer Aided Design computer software to create or modify an engineering design including geometric modeling stress and strain analysis and simulation of part movement drafting and storing specifications ii Major benefit of CAD is the increased productivity of designers g CAM i Computer Aided Manufacturing linking NC numerically controlled machines CNC computerized numerical control and robotics to monitor production process coordinate flow of materials between machines and routing or rerouting jobs 1 NC machines programmed to follow a set of processing instructions based on mathematical relationships that tell the machine the details of the operation being performed 2 CNC individual machines have their own computer h Quality Function Development IV i Structured approach for integrating the voice of the customer into both the product and service development process ii Purpose to insure that customer requirements are factored into every aspect of the process iii House of Quality a correlation matrix constructed for technical requirements i Standardization extent to which there is absence of variety in a product service or process i Advantages 1 Fewer parts to deal with in inventory and manufacturing 2 Order fillable from inventory 3 Opportunities for long production runs and automation 4 Need for fewer parts justifies increased expenditures on perfecting designs and improving quality control procedures ii Disadvantages 1 Decreased variety results in less consumer appeal 2 Designs may be frozen with too many imperfections remaining 3 High cost of design changes and increases resistance to improvements j Mass Customization i Computer integrated manufacturing ii A system that uses an integrating computer system to link a broad range of manufacturing activities including engineering design flexible manufacturing systems purchasing order processing and production planning and control k Design for technologies i DFM 1 Design for manufacturing 2 Used to indicate the designing of products that are compatible with an organization s capabilities ii DFA 1 Design for assembly 2 Reduces the number of parts in an assembly as well as the assembly methods and sequence that will be employed iii DFR 1 Design for recycling 2 Design the facilities with the recovery of materials and components in used products for reuse iv DFD 1 Design for disassembly 2 Design so that used products can be easily taken apart Service Design a The service package i Supportive Facility ii the physical resources that must be in place before a service can be sold iii Ex Golf courses ski lifts hospital airplane b Facilitating goods i the material consumed by the buyer or item provided be the consumer ii Ex Food items legal documents golf clubs c Explicit services i benefits readily observable by the senses ii The essential or intrinsic features iii Ex Quality of meals attitude of waiter on time departure d Implicit Services i psychological benefits or extrinsic features with which the consumer may sense only vaguely ii Ex Privacy of loan office security of well lighted parking lot