EXAM 3 STUDY GUIDE FINAL Session 27 28 A Developing Products and Services a How do designs affect supply chains b New product development process c What is good design d An operations and supply chain perspective B Product Design Facts a 30 of revenues and profits come from products introduced in the last 5 years b Development time decreasing i Typically 31 months in 1992 Less than 24 months now ii Less than 18 months for many high tech products iii High tech examples are cell phones DVD players wide screen TVs computers iv software C Operations and Supply Chain Perspectives a Repeatability testability and serviceability of the design Consistent production Tolerance to manufacturing variations robustness i Repeatability ii Testability iii Serviceability Non value added activity so should be easy and inexpensive to do Ease of repair critical for products expected to be serviced or repaired autos b Product volumes and Product Costs i Determines process strategies Types of equipment Level of automation Staffing required Determines level of customization Determines level of after sales support ii Hidden Costs Number of parts in a product 1 Increased handling tracking and other inventory costs 2 More procedures required Engineering changes 1 Affect entire supply chain Transportation costs 1 Logistics becoming a significant cost 2 Size shape weight packaging are concerns c Match with existing capabilities Product design flexibility 1 Easy to add features 2 Easy to upgrade 3 Examples PCs home theater systems Process flexibility 1 Share processes parts 2 Will upgrades make current operations obsolete D The Development Process a Typically lead by the functional group Project Management b Project Management often reports to Development Engineering Marketing or the CEO or COO c brings new products to light E Engineering Functional Activities i beginning and end mgmt recruit from other teams for project managers a 5 STEP PROCESS i typical for product to go through ii generic way products and services are brought into world b planning no funding yet c design and development budget now available d launch beta test friends willing to put with agony of problem to get new product probably for free F Marketing Functional Activities G Operations and SC Functional Activities a launch pilots first few out of manufacturing house H Concurrent Engineering a putting it all together i ii overlapping can t stop working on one phase without finishing it no closure of previous work so its not disregarded i aesthetics vs function of product designer vs engineer i aesthetics vs function of product designer vs engineer I Design Players a Engineering b Marketing c Quality Reliability Assurance d Finance e Designers f Purchasing presourcing g Suppliers design participation J Design Approaches a QFD Quality Function Deployment house of quality b CAD CAM Computer Aided Design Computer Aided Manufacturing network of computer system that has all design related components online and on file CAM equipment and tools used to design product i DFx Design for 1 DFM Design for Manufacturability 2 DFMt Design for Maintainability 3 DFSS Design for Six Sigma Robustness 4 DFS Design for the Sustainability ii designers must take all of these into account K Quality Function Deployment a x and check marks weight numerical value i ii iii can t accept all features decide which will be used based on wishes allows you to make decisions for products quantify wishes and quantify technical requirements to find best fit for both L QFD Linkages M Design for Manufacturing DFM a manufacturing costs need to identify what that is b Reducing look one or more of these to reduce costs reduce costs throughout lifetime of product i ex reduce supplier costs etc w out hurting quality of product N Modular Design a Allows higher level of customization b Retains lower cost advantage of higher volumes for core components c Easier assembly d Facilitates servicing and repairs e Allows for upgrades f Ex Balley Engineered Structures i 7 different kinds of panels ii Customized walk in coolers iii From these assembles almost endless variety of finished products g Ex Personal Computer Manufacturers h Ex Manufactured Home Builders O DFMt DFSS DFE a DFMt focuses on long term serviceability of the product or service i design for maintenance b DFSS focuses on achieving Six Sigma quality levels less than 3 4 defects per one million opportunities c DFE focuses on reducing environmental effects of product or process Hewlett Packard design guidelines page 166 i design for six sigma i design for environment P Target Costing Value Analysis a Goals i Maximize function cost 1 attempt to minimize amount of function How can we increase this ratio Focus on secondary functions ii iii 1 Packaging 2 Shipping 3 Custom parts and tooling 4 Use of standard parts 5 Make versus buy Session 29 A Introduction a Examples of projects i Development and Market Release of the iPhone ii Channel Route between England and France iii Disney World Construction iv Implementation of a New ERP system v Projects rather than repetitive tasks are now the basis for most value added in business Tom Peters B Project vs Process Work a Project i Take place outside the process world ii Unique and separate from normal organization work iii Continually evolving b Process i Ongoing day to day activities ii Use existing systems properties and capabilities iii Typically repetitive c A project is a temporary endeavor undertaken to create a unique product or service PMBoK 2000 d A project is a unique venture with a beginning and an end conducted by people to meet established goals within parameters of cost schedule and quality e Projects are goal oriented involve the coordinated undertaking of interrelated activities are of finite duration and are all to a degree unique Buchanan Boddy 92 Frame 95 C Elements of Projects a Complex one time processes b Limited by budget schedule and resources i resources least limiting time is most important c Developed to resolve a clear goal or set of goals i what project is intended to do d Customer focused e 2nd place may come out on TOP blockbuster vs Netflix Netflix now better i ex google now better than Yahoo D General Project Characteristics a Ad hoc endeavors with a clear life cycle i separate than mainstream of what company is up to b Building blocks in the design and execution of organizational strategies i major pieces of strategic plan c Responsible for the newest and