OPMT 303 1st Edition Lecture 3Chapter Outline1. Reasons for Products and service design2. Major Functions of Strategy Design3. Product Design4. Service DesignI. Reasons for Product and service designa. Economici. Low demand, high costii. Warranty claimsiii. Need to reduce costb. Social and Demographici. Agingii. Population shiftsc. Political, liability, or legali. Government changesii. New lawsiii. Safety issuesd. Competitivei. New products or servicesii. Enhanced products or servicesiii. New advertisinge. Cost of Availabilityi. Raw materialsii. Componentsiii. Labor costiv. Resourcesf. Technologicali. Processesii. Products**Product and service design/redesign should be closely related to the organizations strategy**II. Major functions of design strategya. Customer satisfactionb. Costc. Qualityd. Time to markete. Competitive advantageIII. Product Designa. R&D (research and development)- organized efforts that are directed toward increasing scientific knowledge and product or process innovationi. Advances in medicine, semiconductors, communication, and space technologyii. Basic research, applied research, or development b. Warranty claimsi. Increased legal costc. Legal, ethical, and environmentali. 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. Competitivenessi. Reverse engineering- when companies purchase a competitor’s product and they carefully dismantle it and inspect it, searching for ways to improve their own productii. Benchmarking- identifying others organizations that are best at something and study how they do it to improve their own operatione. Concurrent Engineeringi. Bringing design and manufacturing engineering people together early in the design phase to simultaneously develop the product and the process for creating the productf. CADi. 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 specificationsii. Major benefit of CAD is the increased productivity of designersg. CAMi. 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 jobs1. 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 computerh. Quality Function Developmenti. Structured approach for integrating the “voice of the customer” into boththe 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 processi. Advantages1. Fewer parts to deal with in inventory and manufacturing2. Order fillable from inventory3. Opportunities for long production runs and automation4. Need for fewer parts justifies increased expenditures on perfecting designs and improving quality control proceduresii. Disadvantages1. Decreased variety results in less consumer appeal2. Designs may be frozen with too many imperfections remaining3. High cost of design changes and increases resistance to improvementsj. Mass Customizationi. 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 controlk. Design for technologiesi. DFM1. Design for manufacturing2. Used to indicate the designing of products that are compatible with an organization’s capabilitiesii. DFA1. Design for assembly2. Reduces the number of parts in an assembly, as well as the assembly methods and sequence that will be employed.iii. DFR1. Design for recycling2. Design the facilities with the recovery of materials and components in used products for reuseiv. DFD1. Design for disassembly2. Design so that used products can be easily taken apartIV. Service Designa. The service packagei. Supportive Facilityii. the physical resources that must be in place before a service can be soldiii. Ex. Golf courses, ski lifts, hospital, airplaneb. Facilitating goodsi. the material consumed by the buyer or item provided be the consumerii. Ex. Food items, legal documents, golf clubsc. Explicit servicesi. benefits readily observable by the sensesii. The essential or intrinsic featuresiii. Ex. Quality of meals, attitude of waiter, on time departured. Implicit Servicesi. psychological benefits or extrinsic features with which the consumer may sense only vaguelyii. Ex. Privacy of loan office, security of well lighted parking