Chapter 3:Product DesignOperations Management in the Supply Chain: Decisions and Cases,6th editionCopyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

3-*Chapter 3 OutlineDESIGN PROCESSStrategies for New-Product IntroductionNew-Product Development ProcessCross-Functional Product DesignSupply Chain CollaborationDESIGN TOOLSQuality Function DeploymentDesign for Manufacturing Value AnalysisModular Design

3-*Product Design:Why Does Operations Care?Traditionally: throw the design over the wallToday:must be able to make the product (process)technologyavailability of resourcesmust have the right type and amount of capacitymust deliver a quality product or servicemust have right inventory at right time

3-*Strategies for New-Product IntroductionMarket Pull - Make what we can sellOrganize resources to fulfill customer demandFood industry

Technology Push - Sell what we can makeDevelop superior technologies and productsElectronics

Interfunctional View most difficultCross-functional team designPersonal computers

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3-*New Product Development ProcessConcept DevelopmentIdea generation and evaluation of alternative ideasProduct DesignDesign of the physical productDesign of the production processPilot Production/TestingTesting production prototypesFinalizing production processFinalizing information package specifying details

3-*New Product Design Process (Figure 3.2)Pilot production/testing

3-*Cross-Functional Product DesignSequential approachFunctions (marketing, engineering, operations) operate without consulting each other. This is the over the wall approach.Often results in misalignment.Concurrent approach Functions cooperate, work together over the same time frame.Cross-functional teams.Not always best approach.

3-*Cross-Functional Product Design (Figure 3.3)

3-*Why Is Functional Cooperation a Challenge?They dont speak the same language.They use different performance measures.They tend to have different personality types, i.e., they dont think alike.They can be defensive about their own turfs.They may be in different physical locations.They dont have time.

3-*Supply Chain CollaborationRelationships with CustomersAsk the right questionsProvide incentivesCreate collaborative technology platformInclude as advisors to design team

3-*Supply Chain CollaborationCriteria for Relationships with SuppliersTechnical expertiseCapability cost, time, quality targetsCapacity Low risk

3-*Quality Function Deployment (QFD)House of QualityTool for interfunctional cooperationCustomer Attributes Voice of the CustomerEngineering Characteristics Voice of the EngineerHelps identify tradeoffsCan include target values and competitive comparison

3-*House of Quality (QFD)

3-*HOUSE OF QUALITY (QFD)

3-*Design for Manufacturing (DFM)Value Analysis (usefulness:cost)Simplification of products and processes

Modular DesignMultiple products using common parts, processes, and modules

3-*Objectives of Value AnalysisEnhance the design of good/service to provide better quality at the same price.

Modify the design of production process to lower the cost of good/service while maintaining or improving quality.

In other words, improve the ratio of usefulness (quality) to cost.

3-*Value Analysis

Terms in Value Analysis:Objective: primary purpose of the productBasic Function: makes the objective possibleSecondary Function: how to perform the basic function

Value analysis seeks to improve the secondary function, e.g., how to open a can or make a tool box.

3-*DFM: An Example

3-*Value Analysis at ToyotaGM has 26 different seat frames.Toyota has 2.Toyotas advantage: $500 millionSource: Businessweek, 31 July 2006, p. 57.

3-*Value Analysis at GMBo Anderson (VP Global Purchasing) discovered that door hinges on large SUVs and trucks could be made from 3 parts instead of 5. Savings = $21 per truck, $100 million total. It took him 3 months to convince the engineers to change the hinge.Source: Businessweek, 31 July 2006, p. 57.

3-*Modular DesignAllows greater variety through mixing and matching modules

Develops basic product components (modules) use in multiple products

High product variety from limited component variety

Small number of components enables large number of combinations, e.g., Dell notebooks

3-*Modular DesignVolkswagen A5 PlatformAudi Q3 crossover SUVAudi A3 convertible/hatchbackAudi TT turbo hatchbackVW Touran SUVVW Caddy light commercial vehicleVW Jetta

Chrysler LX PlatformChrysler 300Dodge ChargerDodge Magnum wagonLancia Thema (Italian)

3-*Chapter 3 OutlineDESIGN PROCESSStrategies for New-Product IntroductionNew-Product Development ProcessCross-Functional Product DesignSupply Chain CollaborationDESIGN TOOLSQuality Function DeploymentDesign for Manufacturing Value AnalysisModular Design

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