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MANAGEMENT OF MACHINES MANAGEMENT OF MACHINES AND MATERIALS (MS-5) AND MATERIALS (MS-5) UNIT 2 UNIT 2 PRODUCT SELECTION PRODUCT SELECTION Roshan Gnyawali Roshan Gnyawali
MANAGEMENT OF MACHINES MANAGEMENT OF MACHINES AND MATERIALS (MS-5)AND MATERIALS (MS-5)
UNIT 2UNIT 2PRODUCT SELECTIONPRODUCT SELECTION
Roshan GnyawaliRoshan Gnyawali
2-2
Strategic Decision (Long-term Decision)
Other decisions (capacity planning, process planning, location, human resource etc.) depend upon it.
Basis of Competitiveness and Profitability
Involves other areas as marketing, R&D
Requires Top Management Support
Product and Service SelectionProduct and Service Selection
2-3
1. Translate customer wants and needs into product and service requirements
2. Refine existing products and services3. Develop new products and services4. Formulate quality goals5. Formulate cost targets6. Construct and test prototypes7. Document specifications
Product or Service Design ActivitiesProduct or Service Design Activities
2-4
Reasons for Product or Service Reasons for Product or Service DesignDesign
Economic
Social and demographic changes
Political, liability, or legal
Competitiveness
Cost or availability
Technological advances
Product and service design – or redesign – should be closely tied to an organization’s strategy
2-5
Objectives of Product DesignObjectives of Product Design
Main focus Customer satisfaction Understand what the customer wants
Secondary focus Function of product/service Cost/profit Quality Appearance Ease of production/assembly Ease of maintenance/service
2-6
Life Cycles of Products or ServicesLife Cycles of Products or Services
Time
Introduction
Growth
Maturity
Saturation
Decline
Dem
and
2-7
Product Selection ProcessProduct Selection Process
Pure Research
Applied Research
Screening
Economic Analysis
Product Development
Process Development
Design and Testing
Marketing Research Idea Generation
2-8
Product Selection ProcessProduct Selection Process
Pure Research
Applied Research
Screening
Economic Analysis
Product Development
Process Development
Design and Testing
Marketing Research Idea Generation
Development
Design
Selection
ResearchResearch
2-9
ResearchResearch
Organized efforts to increase scientific knowledge or product innovation
Basic Research: knowledge about a subject
Applied Research: commercial focus
Development: convert into commercial application
Market Research: Consumer Survey, Dealer Survey, opinion polls
Idea Generation: Brainstorming, panel discussion, scenario building, technology forecasting
2-10
Research…Research… New Idea Mortality curve
2-11
SelectionSelection
Qualitative Phase (Screening)
Match Corporate Strategy, Capitalize on Strengths
Exploit Familiarity Factor
Familiarity with similar products and services
Familiarity with similar transformation process
Familiarity with similar market segments
Familiarity with similar distribution channels.
Quantitative Phase
Economic Analysis
NPV, IRR, B/C Ratio
2-12
DevelopmentDevelopment
Creation, Modification or Extension Product Development Process
Planning
Concept Development
System-Level Design
Detailed Engineering Design
Testing and Refinement
Production Ramp-up
2-13
Development…Development…
Function Cost Quality Reliability Maintainability Producibility Timing Accessibility
Legal, Ethical, Environmental, Social Factors
Appearance Safety
More Important for Service Design
Key Elements of a Product Design
2-14
Product DesignProduct Design
Two Methods Standard Product (Standardization)
Product Variety Mass Customization
Delayed Differentiation Modularization
Design Simplification Structuring of Options
2-15
StandardizationStandardization
Standardization: Extent to which there is an absence of variety in a product, service or process
Standardized products are immediately available to customers
2-16
Advantages of StandardizationAdvantages of Standardization
2-17
Disadvantages of StandardizationDisadvantages of Standardization
Designs may be frozen with too many imperfections remaining.
High cost of design changes increases resistance to improvements.
Decreased variety results in less consumer appeal.
2-18
• Mass customization: A strategy of producing standardized
goods or services, but incorporating some degree of customization
Delayed differentiation Modular design
Mass CustomizationMass Customization
2-19
• Delayed differentiation is a postponement tactic Producing but not quite completing a
product or service until customer preferences or specifications are known
Delayed DifferentiationDelayed Differentiation
2-20
Modular DesignModular Design
Modular design is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged. It allows:
easier diagnosis and remedy of failures
easier repair and replacement
simplification of manufacturing and assembly
Design SimplificationDesign Simplification
It attempts to simplify the design.
Combining two or more parts into one.
Eliminate some parts.
Lower Production cost
Lower Material Cost2-21
OptionsOptions
Provide variety to product
Increased Attractiveness
Broad Range of Customers
Pricing can be complicated
2-22
Product and Process Innovation
Uncoordinated processesPerformance maximization
Integrated processesCost minimization
Need Stimulate
d
Output rate
Stimulated
Technology Stimulated
Cost Stimulated
2-24
Computer-Aided DesignComputer-Aided Design
Computer-Aided Design (CAD) is product design using computer graphics. increases productivity of designers, 3 to 10
times
creates a database for manufacturing information on product specifications
provides possibility of engineering and cost analysis on proposed designs
2-25
Quality Function Deployment Voice of the customer House of quality
Quality Function DeploymentQuality Function Deployment
QFD: An approach that integrates the “voice of the customer” into the product and service development process.
2-26
The House of QualityThe House of Quality
Correlation matrix
Designrequirements
Customerrequire-ments
Competitiveassessment
Relationshipmatrix
Specificationsor
target values
2-27
Customer Requirements
Importance to Cust.Easy to close
Stays open on a hill
Easy to open
Doesn’t leak in rain
No road noise
Importance weighting
Engineering Characteristics
Ene
rgy
need
ed
to c
lose
doo
r
Che
ck f
orce
on
leve
l gr
ound
Ene
rgy
need
ed
to o
pen
door
Wat
er r
esis
tanc
e
10 6 6 9 2 3
7
5
3
3
2
X
X
X
X
X
Correlation:Strong positivePositiveNegativeStrong negative
X*Competitive evaluation
X = UsA = Comp. AB = Comp. B(5 is best)
1 2 3 4 5
X AB
X AB
XAB
A X B
X A B
Relationships:Strong = 9Medium = 3Small = 1Target values
Red
uce
ener
gy
leve
l to
7.5
ft/lb
Red
uce
forc
eto
9 lb
.
Red
uce
ener
gy to
7.5
ft/l
b.
Mai
ntai
ncu
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t lev
elTechnical evaluation(5 is best)
54321
B
A
X
BAX B
AX
BXA
BXABA
X
Doo
r se
al
resi
stan
ce
Acc
oust
. Tra
ns.
Win
dow
Mai
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el
Mai
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el
House of Quality ExampleHouse of Quality Example
Discussion Questions
Describe the product selection process with the help of an example of a new small car.
Give two examples for each of a service and manufacturing firm, of the impact of technology in service and product design.
Discuss with suitable examples, the process of launching a new product in the market. Explain with the help of suitable examples.
What do you mean by “Product Life Cycle”? State the different stages of a product life cycle and also the factors affecting the decisions at each stage of product life cycle.
Discussion Questions
What are the factors that cause organizations to redesign their products or services? Describe some of the ways a product designer can use CAD.
Some suggest that customer expectation is the key to service success. Give an example from your own experience to support or refute this assertion.
End of Unit 2
UNIT 3: Process SelectionUNIT 3: Process Selection
