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-O =S=Operations Management Design of Goods and Services Chapter 5,><))' OutlineGlobal Company Profile: Regal Marine Goods and Services Selection Product Strategy Options Support Competitive Advantage Generation of New Product Opportunities Product Life Cycles Life Cycle and Strategy Product-by-value Analysis Product Development Product Development System Quality Function Deployment (QFD) Organizing for Product Development Manufacturability and Value Engineering CPPPPZCOutline - continuedIssues for Product Design Robust Design Modular Design Computer-Aided Design (CAD) Value Analysis Environmentally Friendly Design Time-Based Competition Purchase of Technology by Acquiring Firm Joint Ventures Alliances\ZhZZBZhBOutline - continuedDefining the Product Make-or-buy Decisions Group Technology Documents for Production Service Design Documents for Service Application of Decision Trees to Product Design Transition to ProductiontZ'Z(ZZIZ&(ILearning Objectives1When you complete this chapter, you should be able to : Identify or Define: Product life cycle Product development team Manufacturabililty and value engineering Robust design Time-based competition Modular design Computer aided design Value analysis Group technology Configuration management\8ZPP^F8f<Learning Objectives continued  Regal MarineGlobal market 3-dimensional CAD reduced product development time reduced problems with tooling reduced problems in production Assembly line JIT6 ^ ^Humor in Product Design What is a Product?Need-satisfying offering of an organization Example P&G does not sell laundry detergent P&G sells the benefit of clean clothes Customers buy satisfaction, not parts May be a good or a serviceP, KA, KA  Product Strategy OptionsProduct differentiation  'Generation of New Product Opportunities(P(Economic change< Product Components  Product Life Cycle$Introduction Growth Maturity Decline Product Life Cycle Introduction* P fbFine tuning research product development process modification and enhancement supplier development& W W Product Life Cycle Growth*PfProduct design begins to stabilize Effective forecasting of capacity becomes necessary Adding or enhancing capacity may be necessaryProduct Life Cycle Maturity*PfCompetitors now established High volume, innovative production may be needed Improved cost control, reduction in options, paring down of product lineProduct Life Cycle Decline*PfLUnless product makes a special contribution, must plan to terminate offering+Product Life Cycle, Sales, Cost, and Profit,Z, !Percent of Sales From New Product"!$ (Products in Various Stages of Life Cycle)F)   #Product-by-Value AnalysisLists products in descending order of their individual dollar contribution to the firm. Helps management evaluate alternative strategies.Product Development StagesvIdea generation Assessment of firm s ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market Introduction to Market Evaluation8:F )FPI# =Quality Function DeploymentIdentify customer wants Identify how the good/service will satisfy customer wants Relate customer wants to product hows Identify relationships between the firm s hows Develop importance ratings Evaluate competing products3 > +8!J\House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements]Z] Idea Generation StageProvides basis for entry into market Sources of ideas Market need (60-80%); engineering & operations (20%); technology; competitors; inventions; employees Follows from marketing strategy Identifies, defines, & selects best market opportunitiesL6e 96e 9Customer Requirements Stage,Identifies & positions key product benefits Stated in core benefits proposition (CBP) Example: Long lasting with more power (Sears Die Hard Battery)V,k 3j gIdentifies detailed list of product attributes desired by customer Focus groups or 1-on-1 interviews ND 0Z*# 0Z D#Functional Specification StageDefines product in terms of how the product would meet desired attributes Identifies product s engineering characteristics Example: printer noise (dB) Prioritizes engineering characteristics May rate product compared to competitors R{C{WProduct Specification StageDetermines how product will be made Gives product s physical specifications Example: Dimensions, material etc. Defined by engineering drawing Done often on computer Computer-Aided Design (CAD)L$7L"7 @Quality Function DeploymentPProduct design process using cross-functional teams Marketing, engineering, manufacturing Translates customer preferences into specific product characteristics Involves creating 4 tabular  Matrices or  Houses Breakdown product design into increasing levels of detailT5Z&ZyZ:Z5&y:ATo Build House of QualityIdentify customer wants Identify how the good/service will satisfy customer wants. Relate the customer s wants to the product s hows. Identify relationships between the firm s hows. Develop importance ratings Evaluate competing productsZ -,9BHouse of Quality Sequence CHouse of Quality ExampleYou ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality."KHouse of Quality ExampleEHouse of Quality ExampleFHouse of Quality ExampleGHouse of Quality ExampleHHouse of Quality ExampleIHouse of Quality Example(Manufacturability and Value Engineering)P)Benefits: reduced complexity of products additional standardization of products improved functional aspects of product improved job design and job safety improved maintainability of the product robust design&  1Cost Reduction of a Bracket via Value Engineering2P2Issues for Product DevelopmentxRobust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design Robust DesignkProduct is designed so that small variations in production or assembly do not adversely affect the product Modular DesigncProducts designed in easily segmented components. Adds flexibility to both production and marketing Computer Aided Design (CAD)Designing products at a computer terminal or work station Design engineer develops rough sketch of product Uses computer to draw product Often used with CAMD<R<Q!Benefits of CAD/CAMShorter design time Database availability New capabilities Example: Focus more on product ideas Improved product quality Reduced production costs6<%2<%2"Value AnalysisFocuses on design improvement during production Seeks improvements leading either to a better product or a product which can be more economically produced.Environmentally Sound Strategy$ Benefits Safe and environmentally sound products Minimum raw material and energy waste Product differentiation Environmental liability reduction Cost effective compliance with environmental regulations Recognition as good corporate citizen&   >Environmentally Friendly DesignMake products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less materialTime-based CompetitionProduct life cycles are becoming shorter. \Faster developers of new products gain on slower developers and obtain a competitive advantage0+c*c ?5Cost Reduction of a Bracket Through Value Engineering$Product DocumentsEngineering drawing Shows dimensions, tolerances, & materials Shows codes for Group Technology Bill of Material Lists components, quantities & where used Shows product structurepKB:fB% Monterey Jack(a) U.S. grade AA. Monterey cheese shall conform to the following requirements: (1)Flavor. Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feed flavor. (2)Body and texture. A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes (3)Color. Shall have a natural, uniform, bright and attractive appearance. (4)Finish and appearance - bandaged and paraffin-dipped. The rind shall be sound, firm, and smooth providing a good protection to the cheeseRF> x C8V&Engineering Drawing Example '8Engineering Drawings - Show Dimensions, Tolerances, etc.9P9(Bill of Material Example )Examples of Bills of Materials*Make-or-Buy DecisionsDecide whether or not you want (or need) to produce an item May be able to purchase the item as a  standard item from another manufacturer+ Group Technology Characteristics!P!Parts grouped into families Similar, more standardized parts Uses coding system Describes processing & physical characteristics Part families produced in manufacturing cells Mini-assembly linest!0/!0/  ,Group Technology Code Example -1Group Technology Schemes Enable Grouping of Parts.Group Technology BenefitsImproved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenance/Production Documents7Assembly Drawings Assembly chart Route sheet Work order0Assembly DrawingShows exploded view of product1#Assembly Chart for A Tuna Sandwich$P$ 2#Assembly Drawing and Assembly Chart$P$3 Route SheetLists all operations4 Work Order 5Engineering Change Notice (ECN) P JA correction or modification of an engineering drawing or bill of material6Configuration Management2A system by which a product s planned and changing components are accurately identified and for which control and accountability of change are maintained72Service Design - Nature of Customer Participation81Improving Customer Relations at a Drive-up Window2Z2`Be especially discreet when talking with customer through the microphone Provide written instructions for customers who must fill out forms you provide Mark lines to be completed or attach a note with instructions Always say  please and  thank you Establish eye contact with the customer if the distance allows it If the transaction requires that the customer park the car and come into the lobby, apologize for the inconvenience.9Moment-of-Truth at GTE:/Application of Decision Trees to Product DesignXParticularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes. Considerations: Include all possible alternatives and states of nature - including  doing nothing Enter payoffs at end of branch Approach determining expected values by  pruning tree 6;Transition to ProductionFirst issue: knowing when to move to production! Second: must view product development as evolutionary, not responsibility of single individual/department Third: expect to need a trial production period to work the bugs out Fourth: recognize that responsibility must also transition/4      !"#$%&'()*+,-./0123456789:; <=>?@BCDE F#G$H%I&J'K4  ` ̙33` ` ff3333f` 333MMM` f` f` 3>?" dd(x?d3dHP n?" dd@   @@``PR     ` p>> jb(  4  NH$FEFE  $ RClick to edit Master text styles Second level Third level Fourth level Fifth level!     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B Introduction 6 4  BCDE4F<fp? { xzP Gu@@   6  ` xaxa1?  >Maturity  7  BLCHDEFp?%%H=<|.- {|+/ w-C" m4 P^ ] 0< l pL@KL@DX H  0}a ? f̙33  [S''(    <ϔ T  C Few Successes(8 P  'P fB  6fp? fB  6fp?i  fB  6fp? i fB  6fp? i fB  6fp?i    ZhԔ xaxa1? >  50  Zה xaxa1?h   7500   Zh۔ xaxa1?  81000   Zxaxa1? 81500   Zߔ xaxa1?B` 82000fB   6fp? i fB   6fp?  fB  6fp?) * fB  6fp?OP  T xaxa1?I   EDevelopment StageZ  T xaxa1?P :NumberZ  Z8 xaxa1?X L1000,  Tt xaxa1?`~  JMarket requirementZ  T$ xaxa1? W V$Design review, Testing, Introduction%%  ZT xaxa1?3 )  :25T   # <  ZH xaxa1?  AIdeas   Z xaxa1? J1750*  Tp xaxa1?p E  MProduct specificationZ  Z4 xaxa1?  F  K100,  3 B CDE4Fo? `    @    `r f2  6ff1?`  f2  6ff1?h q f2  6f1?+< f2   6ff1? Jf2 ! 6f1?y    " 0 p   QFunctional specifications 2f2 # 6f1?&   $ 0  PD  D One success! 2  % 0d   ;500 2 & c BC`DE(Fo x Pppp8@` @   P@ H  0}a ? f̙33 # 0(  x  c $ `   x  c $    H  0}a ? f̙33  LD(  x  c $' `   r  S x(        6) .0*. ,$D  0 c!Scope of product development team&" 2"f  00.  PP  yAScope of design for manufacturability and value engineering teamsB 2Bf^r  6o   ^  6oPp 0 H  0}a ? f̙33 I  (  l  C <: `   l  C @ 0    H  0}a ? ff333$ H @Dd(  0D+ Dl D C K P    D C AxC:\WINNT\Profiles\ubretri\Desktop\My Briefcase\05-00050.bmp`P0H D 0}a ? ff333  XP`(  x  c $R `   0   PX xaxa1 ?` @0<$ 0   ,@ @`H  0}a ? f̙33k  35(   F P PP   P PP   Tlg xaxa1? P JHouse of Quality(2>   fk UU1)?P =  Customer Requirements. ##55FFrR  BG/*8c?U    Z{ UU8c?] ;  yProduct Characteristics(##55FFf B 61?D G f B 61?H K f  B 61?  f  B 61?  f  B 61?  f  B 61?" % f  B 61?H" K$ f B 61?D" G$ f  61?P! " f  61?P$ % f B 61?" $ f B 61?" $ f  61?! " f  61?$ % f B 61?"" %$ f B 61?" $ f  61?(! " f  61?($ % f B 61?D* G f B 61?H* K f B 61?*  f B 61?*  f B 61?*  f B 61?"* % f B 61?H K f  B 61?D G f ! 61?P  f " 61?P  f #B 61?  f $B 61?  f % 61?  f & 61?  f 'B 61?" % f (B 61?  f ) 61?(  f * 61?(  f +B 61?D GP f ,B 61?H KP f -B 61? P f .B 61? P f /B 61? P f 0B 61?" %P x 1 c $ `   l 4 C P  @   l 5 C   C    H  0}a ? f̙335  34i(  y8 @  4@   Z莖 xaxa1?b   JHouse of Quality(2D  # l UU1)?@ U   Customer Requirements. ##55FFxR  HG/*8c?     ` UU8c?   yProduct Characteristics(##55FFhT W ,L # P f B 61?W  f  B 61?W  f  B 61?/W 2 f  B 61?5W 8 f  B 61?W  f  B 61?W  f B 61?  f B 61?  f  61? + f  61? + f B 61?5 8 f B 61?/ 2 f  61?>  f  61?>  f B 61?  f B 61?  f  61? , f  61? , f B 61?  f B 61?  f B 61?/ 2 f B 61?5 8 f B 61?  f B 61?  f  B 61?  f !B 61?  f " 61? + f # 61? + f $B 61?5 8 f %B 61?/ 2 f & 61?>  f ' 61?>  f (B 61?  f )B 61?  f * 61? , f + 61? , f ,B 61? Lf -B 61? Lf .B 61?/ 2Lf /B 61?5 8Lf 0B 61? Lf 1B 61? Lx 2 c $l `   0 3   xaxa1 ? <$ 0   ,@ @`H  0}a ? f̙33  360 I(  0   Ė xaxa1 ?` <$ 0   ,@ @`Y8  PP  6 PP   Zؖ xaxa1?b P JHouse of Quality(2#  # lܖ UU1)? =  Product Characteristics.##55FFxR  HG/*8c?:     ` UU8c?B ;  zComponent Specifications(##55FFhT W ,L  # : P f  B 61?W  f  B 61?W  f  B 61?/W 2 f B 61?5W 8 f B 61?W  f B 61?W  f B 61?  f B 61?  f  61? + f  61? + f B 61?5 8 f B 61?/ 2 f  61?>  f  61?>  f B 61?  f B 61?  f  61? , f  61? , f B 61?  f B 61?  f B 61?/ 2 f  B 61?5 8 f !B 61?  f "B 61?  f #B 61?  f $B 61?  f % 61? + f & 61? + f 'B 61?5 8 f (B 61?/ 2 f ) 61?>  f * 61?>  f +B 61?  f ,B 61?  f - 61? , f . 61? , f /B 61? Lf 0B 61? Lf 1B 61?/ 2Lf 2B 61?5 8Lf 3B 61? Lf 4B 61? Lx 5 c $ `   H  0}a ? f̙33 = RJ(  r  S  0   0   | FEFE1 ?P3 <$ 0   ,@ @`H  0}a ? f̙33 > *(  x  c $ `   r  S  3    H  0}a ? f̙33 ?  ""P(  x  c $, `   F P   PP l  < f? '  l  < ?(  l  < ? "  l  < ?2P l  < ? W l   < 3?# . l   < f?5 .    6"  ?) P  VDesign Characteristics$P l   < 3?.5 l   < 3?2' l  < ?. 1W l  < 3?. W1l  < 3?'DP l  < 3?'PD~B  N Do?.  ~B  N Do?'  ~B  N Do?W  <h8  ?X, A Quality PlanP   <  ?` 43 pProduction ProcessB P     <L:  ? }  SSpecific Components$  P   B@  ?   RDesign Characteristics P   BHG  ?@ p' x  OSpecific Components P   BD  ?   lProduction Process> P     6L  ?<?   ICustomer Requirements02 l  < ?# ) l  < ?3 W l  < ?,2P   B R  ?. f  ;House 2   <T  ?5   ;House 1 ! <X  ?]    ;House 3 " <[  ?W  ;House 4H  0}a ? f̙33m @  @(    C x`k $C$C1 ?F9 -   ,@ @`  c n FEFEA1 ?X L       Zo $C$C1?R H   m 1984-1994 T/Maker Co. x  c $r `   H  0}a ? M G LL`H7L(  H^ H 6o?L#   ^ H 61?Ao ^ H 61?G  ^ H 6o? #  ^ H 6o?L%  ^ H 6o? %  ^ H 6o?L/ ^  H 6o? / X  H 0o?L  X  H 0o?L  X  H 0o?L * X  H 0o?L X H 0o?L X H 0o?   X H 0o? #  X H 0o? #  X H 0o?  0 X H 0o?  0 X H 0o? 4  X H 0o? 4  X H 0o? : X H 0o? : X H 0o? ? X H 0o? ? X H 0o?  X H 0o?   H  `̖ $C$C1?Y PM |JHigh relationship K Medium relationship m Low RelationshipZ? 2X H 01?.PZGX H 01?.Pj8X H 01?<_iFX  H 01?<_iFX !H 01?.o8X "H 01?<oFX #H 0o?.8X $H 0o?<FX %H 01?.8X &H 01?<FX 'H 01?LPZ X (H 01?L_i X )H 0o?L X *H 0o?L   +H T8 $C$Cf1?_p  uCustomer Requirements&P ,H <d 1?X   UCustomer Importance&  FX -H 0o? _i X .H 0o? PZ X /H 0o? o X 0H 0o? o X 1H 0o?  X 2H 0o?  X 3H 0o?  X 4H 0o?  X 5H 0o?   X 6H 0o? Xb X 7H 0o? _i X 8H 0o?  X 9H 0o?   X :H 0o?   X ;H 0o?   X H 0o?  X ?H 0o? _i X @H 0o? PZ X AH 0o? o X BH 0o?  X CH 0o?  X DH 0o?   X EH 0o?   X FH 0o? #  X GH 0o?   X HH 0o? %  X IH 0o? * X JH 0o? / X KH 0o?  X LH 0o?  X MH 0o? Xb X NH 0o? _i X OH 0o?  X PH 0o?   X QH 0o?   X RH 0o?   X SH 0o? * X TH 0o?  X UH 0o?  X VH 0o? _i X WH 0o? PZ X XH 0o? o X YH 0o?  X ZH 0o?  X [H 0o?   X \H 0o?   X ]H 0o? #  X ^H 0o?   X _H 0o? %  X `H 0o? * X aH 0o? / X bH 0o?  X cH 0o?  X dH 0o? Xbf X eH 0o? _if X fH 0o? f X gH 0o?   f X hH 0o?   f X iH 0o?   f X jH 0o? *f X kH 0o? f X lH 0o? f X mH 0o?k _i X nH 0o?k PZ X oH 0o?k ot X pH 0o?x o X qH 0o?k t X rH 0o?x  X sH 0o?k t X tH 0o?x  X uH 0o?k   t X vH 0o?x   X wH 0o?k # = t X xH 0o?x # = X yH 0o?k B  t X zH 0o?x B  X {H 0o?k  0 t X |H 0o?x  0 X }H 0o?k 4 t X ~H 0o?x 4  X H 0o?k :t X H 0o?x : X H 0o?k ?t X H 0o?x ? X H 0o?k  X H 0o?k  X H 01? PZ? X H 01? _i? X H 0o?D PZ\ X H 0o?S Pj\ X H 0o?D _iM X H 0o?D _iM X H 0o?D o M X H 0o?S o \ X H 0o?  ? X H 0o?D % M X H 0o?S % \ X H 0o?D *  M X H 0o?S *  \ X H 0o?   ? X H 0o?D  0 M X H 0o?S  0 \ X H 0o?D 4 M X H 0o?S 4 \ X H 0o? *? X H 0o?D :M X H 0o?S :\ X H 0o?D ?M X H 0o?S ?\ X H 0o? ? X H 0o? ? X H 0o?D \ X H 0o?S \ X H 0o?D M X H 0o?D M  H ZX̙ $C$C1?` TA  ] Target Valuesx H c $Hԙ `Z    F  G H  G` H 0Ԕ?# . 8` H 0Ԕ?# < F` H 0Ԕ? .0 8` H 0Ԕ? <0 F` H 0Ԕ?4 .8` H 0Ԕ?4 <F` H 0Ԕ? .:8` H 0Ԕ? <:F` H 0Ԕ??.8` H 0Ԕ??<F` H 0Ԕ?.G` H 0Ԕ?.8` H 0Ԕ?<F` H 0Ԕ?<F` H 0Ԕ? . 8` H 0Ԕ? < FxB H H DԔ?  8xB H H DԔ? xB H H DԔ?/`.xB H H DԔ?0 R*. H s     BChDEF Ԕ 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||h@  =xB H H DԔ? :FH H 0}a ? eY B XXX( @ x  c $ 0   d  <1?O#   d  <1?O%  d  <1?L0 d  <31?Io d  <31?H d   <1? #  d   <1? %  d   <1? / ^   61?L  ^   61?L  ^  61?L * ^  61?L ^  61?L ^  61?   ^  61? #  ^  61? #  ^  61?  0 ^  61?  0 ^  61? 4  ^  61? 4  ^  61? : ^  61? : ^  61? ? ^  61? ? ^  61?  ^  61?     fL $C$C1? t |JHigh relationship K Medium relationship m Low RelationshipZ? 2^  6jJ?.PZG^   6jJ?.Pj8^ ! 6jJ?<_iF^ " 6jJ?<_iF^ # 6jJ?.o8^ $ 6jJ?<oF^ % 6jJ?.8^ & 6jJ?<F^ ' 6jJ?.8^ ( 6jJ?<F^ ) 61?LPZ ^ * 61?L_i ^ + 61?L ^ , 61?L   - Z $C$C31?Xv  uCustomer Requirements&P . B 1?X   UCustomer Importance&  F^ / 61? _i ^ 0 61? PZ ^ 1 61? o ^ 2 61? o ^ 3 61?  ^ 4 61?  ^ 5 61?  ^ 6 61?  ^ 7 61?   ^ 8 61? PZ ^ 9 61? _i ^ : 61?  ^ ; 61?   ^ < 61?   ^ = 61?   ^ > 61? * ^ ? 61?  ^ @ 61?  ^ A 61? _i ^ B 61? PZ ^ C 61? o ^ D 61?  ^ E 61?  ^ F 61?   ^ G 61?   ^ H 61? #  ^ I 61?   ^ J 61? %  ^ K 61? * ^ L 61? / ^ M 61?  ^ N 61?  ^ O 61? PZ ^ P 61? _i ^ Q 61?  ^ R 61?   ^ S 61?   ^ T 61?   ^ U 61? * ^ V 61?  ^ W 61?  ^ X 61? _i ^ Y 61? PZ ^ Z 61? o ^ [ 61?  ^ \ 61?  ^ ] 61?   ^ ^ 61?   ^ _ 61? #  ^ ` 61?   ^ a 61? %  ^ b 61? * ^ c 61? / ^ d 61?  ^ e 61?  ^ f 61? PZf ^ g 61? _if ^ h 61? f ^ i 61?   f ^ j 61?   f ^ k 61?   f ^ l 61? *f ^ m 61? f ^ n 61? f ^ o 61?k _i ^ p 61?k PZ ^ q 61?k ot ^ r 61?x o ^ s 61?k t ^ t 61?x  ^ u 61?k t ^ v 61?x  ^ w 61?k   t ^ x 61?x   ^ y 61?k # = t ^ z 61?x # = ^ { 61?k B  t ^ | 61?x B  ^ } 61?k  0 t ^ ~ 61?x  0 ^  61?k 4 t ^  61?x 4  ^  61?k :t ^  61?x : ^  61?k ?t ^  61?x ? ^  61?k  ^  61?k  ^  61? PZ? ^  61? _i? ^  61?D PZ\ ^  61?S Pj\ ^  61?D _iM ^  61?D _iM ^  61?D o M ^  61?S o \ ^  61?  ? ^  61?D % M ^  61?S % \ ^  61?D *  M ^  61?S *  \ ^  61?   ? ^  61?D  0 M ^  61?S  0 \ ^  61?D 4 M ^  61?S 4 \ ^  61? *? ^  61?D :M ^  61?S :\ ^  61?D ?M ^  61?S ?\ ^  61? ? ^  61? ? ^  61?D \ ^  61?S \ ^  61?D M ^  61?D M    `X0 $C$C1?` TA  ] Target Values L  G #  G`  0o?# . 8`  0o?# < F`  0o? .0 8`  0o? <0 F`  0o?4 .8`  0o?4 <F`  0o? .:8`  0o? <:F`  0o??.8`  0o??<F`  0o?.G`  0o?.8`  0o?<F`  0o?<F`  0o? . 8`  0o? < F~B  N Do?  8~B  N Do? ~B  N Do?/`.~B  N Do?0 R*.  # j    BChDEF o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||h@  =~B  N Do? :F  BX>  ? v  < Light weight   B?  ? p  ; Easy to use   BF  ? p  8Reliable $  ZO $C$C1?v_ DWhat the customer desires ( wall )# 2#  BQ 1?#  c  @Aluminum Parts  B  6o?  f ?  6o?  f @  6o?#  f A  6o?  f B  6o?%  f C  6o?  * f D  6o?/  f E  6o?  f F  6o?  f G  6o?P Z f H  6o?_ i f I  6o?  f J  6o?  f K  6o?  f L  6o?  f M  6o?  * f N  6o?  f O  6o?  f P  6o?_ i f Q  6o?P Z f R  6o?o  f S  6o?  f T  6o?   f U  6o?  f V  6o?  f W  6o?#  f X  6o?  f Y  6o?%  f Z  6o?  * f [  6o?/  f \  6o?  f ]  6o?  f ^  6o?P Zf f _  6o?_ if f `  6o? f f a  6o?  f f b  6o?  f f c  6o?  f f d  6o?  *f f e  6o? f f f  6o? f f g  6o?_k i f h  6o?Pk Z f i  6o?ok t f j  6o?ox  f k  6o?k t f l  6o?x  f m  6o?k t f n  6o?x  f o  6o? k  t f p  6o? x  f q  6o?# k = t f r  6o?# x = f s  6o?B k  t f t  6o?B x  f u  6o? k 0 t f v  6o? x 0 f w  6o?4 k t f x  6o?4 x  f y  6o? k :t f z  6o? x : f {  6o??k t f |  6o??x  f }  6o?k  f ~  6o?k  f   6o?P Z? f   6o?_ i? f   6o?PD Z\ f   6o?PS j\ f   6o?_D iM f   6o?_D iM f   6o?oD  M f   6o?oS  \ f   6o?  ? f   6o? D % M f   6o? S % \ f   6o?* D  M f   6o?* S  \ f   6o?  ? f   6o? D 0 M f   6o? S 0 \ f   6o?4 D M f   6o?4 S \ f   6o?  *? f   6o? D :M f   6o? S :\ f   6o??D M f   6o??S \ f   6o? ? f   6o? ? f   6o?D \ f   6o?S \ f   6o?D M f   6o?D M     ` $C$Co?T` A  ] Target Values T  G  #  G`   0o?# . 8`   0o?# < F`   0o? .0 8`   0o? <0 F`   0o?4 .8`   0o?4 <F`   0o? .:8`   0o? <:F`   0o??.8`   0o??<F`   0o?.G`   0o?.8`   0o?<F`   0o?<F`   0o? . 8`   0o? < F~B   N Do?  8~B   N Do? ~B   N Do?/`.~B   N Do?0 R*.   # j    BChDEF o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||h@  =~B   N Do? :F   N  o?v   < Light weight    N  o?p   ; Easy to use    N\  o?p   8Reliable    B o?#  c  @Aluminum Parts   B軝 o?% Q  < Auto Focus     BÝ o?/Q  ? Auto Exposure   N(ȝ  o?   3   Nʝ  o?r   1   Np͝  o? v  2f   6o?P.ZGf   6o?P.j8f   6o?_<iFf   6o?_<iFf   6o?o.8f   6o?o<Ff   6o?.8f   6o?<F   <Н  o?  T"Average customer importance rating# 2#        BCDE(F o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||  X0@`P @   X`H   0}a ? e D  ee(d(  (x ( c $<۝ `   c8 M (0 l ( <o?# O  l ( <o?% O l ( <o?0L l ( <3o?oA l ( <3o? G l  ( <o?  l  ( <o?%  l  ( <o?/  f  ( 6o? L f  ( 6o? L f ( 6o? L* f ( 6o?L f ( 6o?L f ( 6o?  f ( 6o?#  f ( 6o?#  f ( 6o? 0 f ( 6o? 0 f ( 6o?4  f ( 6o?4  f ( 6o?  : f ( 6o?  : f ( 6o??  f ( 6o??  f ( 6o?  f ( 6o?   (  f| $C$C1?Y LM |JHigh relationship K Medium relationship m Low RelationshipZ? 2f ( 6o?P.ZGf  ( 6o?P.j8f !( 6o?_<iFf "( 6o?_<iFf #( 6o?o.8f $( 6o?o<Ff %( 6o?.8f &( 6o?<Ff '( 6o?.8f (( 6o?<Ff )( 6o?PLZ f *( 6o?_Li f +( 6o?L f ,( 6o? L  -( ZX $C$C3o?vX  uCustomer Requirements&P .( B o? X  UCustomer Importance&  Ff /( 6o?_ i f 0( 6o?P Z f 1( 6o?o  f 2( 6o?o  f 3( 6o?  f 4( 6o?  f 5( 6o?  f 6( 6o?  f 7( 6o?  f 8( 6o?P Z f 9( 6o?_ i f :( 6o?  f ;( 6o?  f <( 6o?  f =( 6o?  f >( 6o?  * f ?( 6o?  f @( 6o?  f A( 6o?_ i f B( 6o?P Z f C( 6o?o  f D( 6o?  f E( 6o?   f F( 6o?  f G( 6o?  f H( 6o?#  f I( 6o?  f J( 6o?%  f K( 6o?  * f L( 6o?/  f M( 6o?  f N( 6o?  f O( 6o?P Z f P( 6o?_ i f Q( 6o?  f R( 6o?  f S( 6o?  f T( 6o?  f U( 6o?  * f V( 6o?  f W( 6o?  f X( 6o?_ i f Y( 6o?P Z f Z( 6o?o  f [( 6o?  f \( 6o?   f ]( 6o?  f ^( 6o?  f _( 6o?#  f `( 6o?  f a( 6o?%  f b( 6o?  * f c( 6o?/  f d( 6o?  f e( 6o?  f f( 6o?P Zf f g( 6o?_ if f h( 6o? f f i( 6o?  f f j( 6o?  f f k( 6o?  f f l( 6o?  *f f m( 6o? f f n( 6o? f f o( 6o?_k i f p( 6o?Pk Z f q( 6o?ok t f r( 6o?ox  f s( 6o?k t f t( 6o?x  f u( 6o?k t f v( 6o?x  f w( 6o? k  t f x( 6o? x  f y( 6o?# k = t f z( 6o?# x = f {( 6o?B k  t f |( 6o?B x  f }( 6o? k 0 t f ~( 6o? x 0 f ( 6o?4 k t f ( 6o?4 x  f ( 6o? k :t f ( 6o? x : f ( 6o??k t f ( 6o??x  f ( 6o?k  f ( 6o?k  f ( 6o?P Z? f ( 6o?_ i? f ( 6o?PD Z\ f ( 6o?PS j\ f ( 6o?_D iM f ( 6o?_D iM f ( 6o?oD  M f ( 6o?oS  \ f ( 6o?  ? f ( 6o? D % M f ( 6o? S % \ f ( 6o?* D  M f ( 6o?* S  \ f ( 6o?  ? f ( 6o? D 0 M f ( 6o? S 0 \ f ( 6o?4 D M f ( 6o?4 S \ f ( 6o?  *? f ( 6o? D :M f ( 6o? S :\ f ( 6o??D M f ( 6o??S \ f ( 6o? ? f ( 6o? ? f ( 6o?D \ f ( 6o?S \ f ( 6o?D M f ( 6o?D M  (  `L $C$Co?T` A  ] Target Values T  G (#  G` ( 0Ԕ?# . 8` ( 0Ԕ?# < F` ( 0Ԕ? .0 8` ( 0Ԕ? <0 F` ( 0Ԕ?4 .8` ( 0Ԕ?4 <F` ( 0Ԕ? .:8` ( 0Ԕ? <:F` ( 0Ԕ??.8` ( 0Ԕ??<F` ( 0Ԕ?.G` ( 0Ԕ?.8` ( 0Ԕ?<F` ( 0Ԕ?<F` ( 0Ԕ? . 8` ( 0Ԕ? < FxB ( H DԔ?  8xB ( H DԔ? xB ( H DԔ?/`.xB ( H DԔ?0 R*. ( s     BChDEF Ԕ 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||h@  =xB ( H DԔ? :F ( NL)  o?v   < Light weight  ( Nh-  o?p   ; Easy to use  ( N@1  o?p   8Reliable  ( B3 o?#  c  @Aluminum Parts ( BX7 o?% Q  < Auto Focus   ( BX; o?/Q  ? Auto Exposure ( N<  o?   6K ( N(C  o?& !  6K ( NE  o?& !  6K ( NG  o?n i  6K ( N|K  o?n i  6K ( N  o?   3 ( NTR  o? |  2 ( NHU  o?r   1 ( ZW $C$C1?@  Relationship between customer attributes & engineering characteristics ( rooms )Q 2Q (      BCDE(F o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E|| ( P@`8@HX @   @ fB ( 6Do P H ( 0}a ? g E gg0 g(  0x 0 c $Dg `   Sf8 M 00 l 0 <o? O  l 0 <o?% O l 0 <o?0@ l 0 <3o?oA l 0 <3o? G l  0 <o?  l  0 <o?%  l  0 <o?/  f  0 6o? L f  0 6o? L f 0 6o? L* f 0 6o?L f 0 6o?L f 0 6o?  f 0 6o?#  f 0 6o?#  f 0 6o? 0 f 0 6o? 0 f 0 6o?4  f 0 6o?4  f 0 6o?  : f 0 6o?  : f 0 6o??  f 0 6o??  f 0 6o?  f 0 6o?   0  fDz $C$C1?Y LM |JHigh relationship K Medium relationship m Low RelationshipZ? 2f 0 6o?P.ZGf  0 6o?P.j8f !0 6o?_<iFf "0 6o?_<iFf #0 6o?o.8f $0 6o?o<Ff %0 6o?.8f &0 6o?<Ff '0 6o?.8f (0 6o?<Ff )0 6o?PLZ f *0 6o?_Li f +0 6o?L f ,0 6o? L  -0 Zp $C$C3o?vX  uCustomer Requirements&P .0 BĈ o? X  UCustomer Importance&  Ff /0 6o?_ i f 00 6o?P Z f 10 6o?o  f 20 6o?o  f 30 6o?  f 40 6o?  f 50 6o?  f 60 6o?  f 70 6o?  f 80 6o?P Z f 90 6o?_ i f :0 6o?  f ;0 6o?  f <0 6o?  f =0 6o?  f >0 6o?  * f ?0 6o?  f @0 6o?  f A0 6o?_ i f B0 6o?P Z f C0 6o?o  f D0 6o?  f E0 6o?   f F0 6o?  f G0 6o?  f H0 6o?#  f I0 6o?  f J0 6o?%  f K0 6o?  * f L0 6o?/  f M0 6o?  f N0 6o?  f O0 6o?P Z f P0 6o?_ i f Q0 6o?  f R0 6o?  f S0 6o?  f T0 6o?  f U0 6o?  * f V0 6o?  f W0 6o?  f X0 6o?_ i f Y0 6o?P Z f Z0 6o?o  f [0 6o?  f \0 6o?   f ]0 6o?  f ^0 6o?  f _0 6o?#  f `0 6o?  f a0 6o?%  f b0 6o?  * f c0 6o?/  f d0 6o?  f e0 6o?  f f0 6o?P Zf f g0 6o?_ if f h0 6o? f f i0 6o?  f f j0 6o?  f f k0 6o?  f f l0 6o?  *f f m0 6o? f f n0 6o? f f o0 6o?_k i f p0 6o?Pk Z f q0 6o?ok t f r0 6o?ox  f s0 6o?k t f t0 6o?x  f u0 6o?k t f v0 6o?x  f w0 6o? k  t f x0 6o? x  f y0 6o?# k = t f z0 6o?# x = f {0 6o?B k  t f |0 6o?B x  f }0 6o? k 0 t f ~0 6o? x 0 f 0 6o?4 k t f 0 6o?4 x  f 0 6o? k :t f 0 6o? x : f 0 6o??k t f 0 6o??x  f 0 6o?k  f 0 6o?k  f 0 6o?P Z? f 0 6o?_ i? f 0 6o?PD Z\ f 0 6o?PS j\ f 0 6o?_D iM f 0 6o?_D iM f 0 6o?oD  M f 0 6o?oS  \ f 0 6o?  ? f 0 6o? D % M f 0 6o? S % \ f 0 6o?* D  M f 0 6o?* S  \ f 0 6o?  ? f 0 6o? D 0 M f 0 6o? S 0 \ f 0 6o?4 D M f 0 6o?4 S \ f 0 6o?  *? f 0 6o? D :M f 0 6o? S :\ f 0 6o??D M f 0 6o??S \ f 0 6o? ? f 0 6o? ? f 0 6o?D \ f 0 6o?S \ f 0 6o?D M f 0 6o?D M  0  ` $C$Co?T` A  ] Target Values T  G 0#  G` 0 0o?# . 8` 0 0o?# < F` 0 0o? .0 8` 0 0o? <0 F` 0 0o?4 .8` 0 0o?4 <F` 0 0o? .:8` 0 0o? <:F` 0 0o??.8` 0 0o??<F` 0 0o?.G` 0 0o?.8` 0 0o?<F` 0 0o?<F` 0 0o? . 8` 0 0o? < F~B 0 N Do?  8~B 0 N Do? ~B 0 N Do?/`.~B 0 N Do?0 R*. 0 # j    BChDEF o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||h@  =~B 0 N Do? :F 0 N췟  o?v   < Light weight  0 N  o?p   ; Easy to use  0 NL  o?p   <Reliable f 0 Bß o?C  c  @Aluminum Parts 0 BŸ o?U Q  < Auto Focus   0 Bʟ o?/Q  ? Auto Exposure 0 N͟  o?   6K 0 NП  o?& !  6K 0 N(ԟ  o?& !  :Kf 0 Nן  o?n i  6K 0 N۟  o?n i  :Kf 0 N8ߟ  o?   3 0 N,  o? |  2 0 N  o?r   31f 0 Np  o?, P p  5 0 N  o?: P p  1 0 N  o?J Nj  1v 0 Z $C$C1?`  Target values for engineering characteristics ( basement ); key outputH 2H 0      BC`DE4F o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E|| @ 8@pXxX(` @    `  0 N,  o?&  6JH 0 0}a ? mc F cb8b(  8x 8 c $ `   a8 M 8 l 8 <o?# O  l 8 <o?% O l 8 <o?0L0 l 8 <3o?oA l 8 <3o? G l  8 <o?#  l  8 <o?%  l  8 <o?/  f  8 6o? L f  8 6o? L f 8 6o? L* f 8 6o?L f 8 6o?L f 8 6o?  f 8 6o?#  f 8 6o?#  f 8 6o? 0 f 8 6o? 0 f 8 6o?4  f 8 6o?4  f 8 6o?  : f 8 6o?  : f 8 6o??  f 8 6o??  f 8 6o?  f 8 6o?   8  f $C$C1?Y LM |JHigh relationship K Medium relationship m Low RelationshipZ? 2f 8 6o?P.ZGf  8 6o?P.j8f !8 6o?_<iFf "8 6o?_<iFf #8 6o?o.8f $8 6o?o<Ff %8 6o?.8f &8 6o?<Ff '8 6o?.8f (8 6o?<Ff )8 6o?PLZ f *8 6o?_Li f +8 6o?L f ,8 6o? L  -8 Z$ $C$C3o?vX  uCustomer Requirements&P .8 B& o? X  UCustomer Importance&  Ff /8 6o?_ i f 08 6o?P Z f 18 6o?o  f 28 6o?o  f 38 6o?  f 48 6o?  f 58 6o?  f 68 6o?  f 78 6o?  f 88 6o?P Z f 98 6o?_ i f :8 6o?  f ;8 6o?  f <8 6o?  f =8 6o?  f >8 6o?  * f ?8 6o?  f @8 6o?  f A8 6o?_ i f B8 6o?P Z f C8 6o?o  f D8 6o?  f E8 6o?   f F8 6o?  f G8 6o?  f H8 6o?#  f I8 6o?  f J8 6o?%  f K8 6o?  * f L8 6o?/  f M8 6o?  f N8 6o?  f O8 6o?P Z f P8 6o?_ i f Q8 6o?  f R8 6o?  f S8 6o?  f T8 6o?  f U8 6o?  * f V8 6o?  f W8 6o?  f X8 6o?_ i f Y8 6o?P Z f Z8 6o?o  f [8 6o?  f \8 6o?   f ]8 6o?  f ^8 6o?  f _8 6o?#  f `8 6o?  f a8 6o?%  f b8 6o?  * f c8 6o?/  f d8 6o?  f e8 6o?  f f8 6o?P Zf f g8 6o?_ if f h8 6o? f f i8 6o?  f f j8 6o?  f f k8 6o?  f f l8 6o?  *f f m8 6o? f f n8 6o? f f o8 6o?_k i f p8 6o?Pk Z f q8 6o?ok t f r8 6o?ox  f s8 6o?k t f t8 6o?x  f u8 6o?k t f v8 6o?x  f w8 6o? k  t f x8 6o? x  f y8 6o?# k = t f z8 6o?# x = f {8 6o?B k  t f |8 6o?B x  f }8 6o? k 0 t f ~8 6o? x 0 f 8 6o?4 k t f 8 6o?4 x  f 8 6o? k :t f 8 6o? x : f 8 6o??k t f 8 6o??x  f 8 6o?k  f 8 6o?k  f 8 6o?P Z? f 8 6o?_ i? f 8 6o?PD Z\ f 8 6o?PS j\ f 8 6o?_D iM f 8 6o?_D iM f 8 6o?oD  M f 8 6o?oS  \ f 8 6o?  ? f 8 6o? D % M f 8 6o? S % \ f 8 6o?* D  M f 8 6o?* S  \ f 8 6o?  ? f 8 6o? D 0 M f 8 6o? S 0 \ f 8 6o?4 D M f 8 6o?4 S \ f 8 6o?  *? f 8 6o? D :M f 8 6o? S :\ f 8 6o??D M f 8 6o??S \ f 8 6o? ? f 8 6o? ? f 8 6o?D \ f 8 6o?S \ f 8 6o?D M f 8 6o?D M  8  `G $C$Co?T` A  ] Target Values T  G 8#  G` 8 0o?# . 8` 8 0o?# < F` 8 0o? .0 8` 8 0o? <0 F` 8 0o?4 .8` 8 0o?4 <F` 8 0o? .:8` 8 0o? <:F` 8 0o??.8` 8 0o??<F` 8 0o?.G` 8 0o?.8` 8 0o?<F` 8 0o?<F` 8 0o? . 8` 8 0o? < F~B 8 N Do?  8~B 8 N Do? ~B 8 N Do?/`.~B 8 N Do?0 R*. 8 # j    BChDEF o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||h@  =~B 8 N Do? :F 8 NU  o?v   < Light weight  8 NY  o?p   ; Easy to use  8 N^  o?p   <Reliable f 8 Ba o?`  c  @Aluminum Parts 8 B` o?` Q  < Auto Focus   8 Bh o?0Q  ? Auto Exposure 8 Nk  o?   6K 8 NJ  o?& !  6K 8 Np  o?& !  :Kf 8 Nxt  o?n i  6K 8 Nw  o?n i  :Kf 8 N|  o?   3 8 N\  o? |  2 8 N  o?r   31f 8 N  o?, P p  5 8 N,  o?: P p  1 8 N@  o?J Nj  1 8 NX  o?&  6JH 8 0}a ?    *(  x  c $$ `   r  S       H  0}a ? f̙33  @:(  x  c $d `     c ZA6" D:\ph_figures\06-00050.TIF H  0}a ? f̙33  `0(  x  c $ `   x  c $H    H  0}a ? f̙33  0(  x  c $0 `   x  c $콡    H  0}a ? f̙33  0(  x  c $ġ `   x  c $ʡ    H  0}a ? f̙33|    , $  (    HA1?`  xp&&&&&&888888LLLLLLTTWWTTffffiiOOaaiiOOaakkWWhhkkWWhhxxssppxxssppxxxxxxxx``ff``ff}}pp}}pppppp^^^^˞II˞IIκκhhhTTWWTT(kkWWhhiiOOaa&&&&&&hhhLLLLLLxxssppߣ6ߣxxxxκ^^888888^^^^˞IIpp``ffff}}pp0    ܡ xaxa1 ? <$ 0   ,@ @`  Z\ xaxa1? tt J 1995 Corel Corp. x  c $H `   H  0}a ? f̙33 ! 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QQ @Wide upward diagonalX fB X 68c?QPfB X 68c?QP X  ` xaxa1?& F80mm&ffB X 68c?aalB X <8c??lB X <8c? fB X 68c?a a lB X <8c?h X T( xaxa1?k | TProduct Code: 1 5 3 1 (2$J X T4 xaxa1?` Du  Part function (round rod) Material (steel) Max. length (50 < L < 150) Primary machine (lathe)  X T$ xaxa1?0 + ? Round Rod (2  XB X 0D XB X 0D pp XB X@ 0D p XB X 0D  XB  X@ 0D 0 XB !X 0D  XB "X@ 0D  r #X S  i0   XB $X@ 0D ` H X 0}a ? f̙33 - `4( : `x ` c $ `   | ` S TA6PD:\ph_figures\06-00090.TIF@H ` 0}a ? f̙33 . XPh(  h0 h  3 xaxa1 ?`00<$ 0   ,@ @`x h c $4] `   H h 0}a ? f̙33 / p (  px p c $ `   r p S h        p  fA ?1dd? c% X $0!0H p 0}a ? f̙33  0   xD (  x x  `, xaxa1 ? @    ,@ @`j x B1))?3` h x HA1?Yw hhhքS x Tp0 xaxa1?qy >Head 2  x T|3 xaxa1? Jy >Neck 2  x T6 xaxa1? h !  @Handle 2  x T: xaxa1?  AEnd Cap 2 ^B  x 68c?N^B  x 68c?g t ^B  x@ 68c?k W^B  x@ 68c?% M   x Zp> xaxa1?l  O 1984-1994 T/Maker Co. x x c $? `   H x 0}a ? f̙33j 1 @(    NA ?1? ) t $0!0:߿:߿UUUUx  c $K `   H  0}a ? f̙33 2 `4( pZz  x  c $V `   |  S TA6 D:\ph_figures\06-00100.TIF @` H  0}a ? f̙33V 3 (  x  c $2 `      |c xaxa1 ?` @0   ,@ @`  ZA ?1))?s, H $0!0\H  0}a ? f̙333 4 ۗRRs(  x  c $o `   8 `]  R`] N = {  f dN =   = )N =   =   c jB CdDEF1? 3Hb}-Wwq?hobYRJ7Dh:4-%'U'?Vo   ) D%a*|06=BI O(WC^^eylt|}xr*mAhUbh^zYUQNJHFE B         + *~ +s *e *W *H )9 '( & $ #|h S>'o\J9*tcQ?0lZH6"q@x D!z'J,27;@jEBILPTVZ\|^m`cb]cZcwx@Yk8   s xB ChDEF1? 3Hb}/Xwp@hpaYTL8Dj<5-%*Y+BYq  , G%e*07=DJP-XG^cf}mu|}wq0mFh[bn^XUQNJGFE B         - . /x .k .^ -N -? */ ) ( &" lW B,saM>. xfVD2"p^L:%rBz F%|*K059?DjHCMPUX\_`}doecf[fZgy|@Xn= R  c "B C=DEF1? "6Mf7}bwrmidO]XRMEM@~94.'An 2DWj  7Pj"'-16 <)@EEbLQWZ]^_']F]fZWTPN I# G> DY At A             v b K 6   nR7n~\{Gu5q#nkgdc^\YVUyRiQWOHN7O&MNMNOPQRVY]Ye+nvf2^*^0 \9"&+/46:<<<eh@,8 `   s 0B CCDEF1? 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U&l*/29=DHO6UT[o_cgloruw(w=zS{j{{z@ i X E s (BCDEHFP1?RR!3Ha|,U ;xkpf\T1LcB;1)$!P|   ,=M`r  '%<(R-k06:AFLQX8YY\v^`cffgij-j@kSlfl{jj@ ]  F s BC DEF1?bb  -CYsBm!Suk`KWKA7.F%w  "3EVfv  "2BQ^%o(|.27=CEKM QU0YB]T_ebweghklnnppst#u/u=uKuWvbvovzuuut@_ t i X G s (BCDEHFP1?RR 4H`|-W =mulcY6NfF=4,($T  /@Qbs  &=R%j(-27=AHM8UX[v_dglop s!u6vIv^vpvvu@7 k +  H s BC*DEF1?bb)))($!!2G`{ *R~7g~s/h`]TI?!6P-|%  "1?O_m} !7Mcx '.5>AFK,N@QQVeYv[_`cfhilmno!o.r;pGsTtatmuzvvwwwzz@L vX I s (BCDEHFP1?RROOOyQiR\TOUDX7Y-]!_`dglqw|{ucmJf0^WPID>6w1\*C&(!  xaL5   T%&-4e:4AHPVn];b ipv|U,{`H3!@` pX J s (BCDEHFP1?RR"4Ha|0ZzumAgs`XP I<Bm:2+#-Z(=Si  0J%e*05;AHN!V8]Sclkszuojc `[#X.U:QDNOK\IiGxFEB@w o  K Za~ xaxa1?E  HDept Oper Date 2 L Zg xaxa1? :Work 2 M Z ̅ xaxa1?^   ;Order 2 N Z[ xaxa1? - T Approved: JM, (2  O Za4 xaxa1?J9  C Manufacturing 2 P Z xaxa1?~{ O 1984-1994 T/Maker Co.  Q <h `] L8Authorizes producing a given item, usually to a scheduleH  0}a ? f̙33 5 0(  x  c $| `   x  c $Ȓ    H  0}a ? f̙33 6 0( pZz  x  c $8 `   x  c $    H  0}a ? f̙33 7  .(  r  S Ĵ P0   |  S TA6PD:\ph_figures\06-00110.TIF  H  0}a ? f̙33 8  *(  x  c $ `   r  S p P    H  0}a ? f̙33  9 C ; @   (  ^  6jJ x  c $̱ `   X  0^  63jJ   0ѱ 3 >   0ܱ 3i  r2Experience Detractors I had to call more than once to get through. A recording spoke to me rather than a person While on hold, I get silence,and wonder if I am disconnected. The operator sounded like he was reading a form routine questions. The operator sounded uninterested I felt the operator rushed me. $(2 23   <α jJ < ^   6jJP X   03P   0 P 5  p0Standard Expectations Only one local number needs to be dialed I never get a busy signal I get a human being to answer my call quickly and he or she is pleasant and responsive to my problem A timely resolution to my problem is offered The operator is able to explain to me what I can expect to take place$(2 21R  s *3  6T jJ  U#Experience Enhancers The operator was sincerely concerned and apologetic about my problem He asked intelligent questions that allowed me to feel confident in his abilities The operator offered various times to have work done, to suit my schedule Ways to avoid future problems were suggested$ 2$H  0}a ? f̙33 : ` *(  x  c $t `   r  S  `    H  0}a ? f̙33 ;  *(  x  c $T `   r  S  `    H  0}a ? f̙330 @"(  ^  S       S    @    H  0޽h ? ̙330 p"(  ^  S       S    @    H  0޽h ? ̙330  "(   ^   S        S    @    H   0޽h ? ̙330 "(  ^  S       S #   @    H  0޽h ? ̙330 "(  ^  S       S h4   @    H  0޽h ? ̙330 $l(  $^ $ S     : $ S O   @  : hTRegal Marine provides an example where everything fits together. You may wish to discuss the  production line where: - bows and hulls are individually hand-produced - bows and hulls are joined as they move to an assembly line - wooden decks are delivered one-at-a-time to the installation station - engines (one of few purchased elements) are installed - wiring harnesses (produced in-house) are installed - upholstered items are installed - vessel is moved to test tank for testing - watertight, gauge, and systems H $ 0޽h ? ̙330 0,"(  ,^ , S      , S И   @    H , 0޽h ? ̙330 P4B(  4^ 4 S      4 S    @   >*This slide provides an opportunity to introduce the complex nature of a product. There are a number of examples one can discuss here: McDonald s/ Burger King/Wendys (their product is more than hamburgers); your particular college or university; Microsoft; auto manufacturers.H 4 0޽h ? ̙330 p<n(  <^ < S      < S    @   jVAsk students to identify products or companies which rely on each of these strategies.H < 0޽h ? ̙33W 0 D(  D^ D S       D S X͎   @   Each of the items listed forms the basis for developing a new product idea. Ask students to provide examples of products fitting each element.H D 0޽h ? ̙331 0 L(  L^ L S      L S    @   }iOne might remind students that a product is defined not only by what it has, but also by what is missing.H L 0޽h ? ̙33 0 TV(  T^ T S      T S '   @   R>This slide begins an in depth study of the product life cycle.H T 0޽h ? ̙33 0 \"(  \^ \ S      \ S (3   @    H \ 0޽h ? ̙33 0 d"(  d^ d S      d S X?   @    H d 0޽h ? ̙330 0l"(  l^ l S      l S J   @    H l 0޽h ? ̙330 Pt"(  t^ t S      t S V   @    H t 0޽h ? ̙330 |tp| (  |^ | S     n | S ̈   @   Previous slides have related the product life cycle to various management issues. This is the first to relate it to cash flow. Ask students for suggestions as to how one might eliminate the loss occurring toward the end of the product s life cycle.H | 0޽h ? ̙330 $(  ^  S       S $   @    This slide suggests that product innovation is a  way-of-life for industry leaders. Does this suggest that one of the most important activities in which a company engages is that of  adaptation ? If so, will this become more or less of an issue in the future?H  0޽h ? ̙330 <(  ^  S       S Ȕ   @   8$This slide gave a reasonable depiction of the growth stage for these products when it was created. Does it still? Ask students to consider the length of the lifetime of each of the products listed. Are the lifetimes similar? What ranges of lifetime would they estimate for these products?H  0޽h ? ̙330 0L(  ^  S       S    @   H4Environmental issues are becoming more important in product design. Ask students for example of companies which stress environmentally sound design and production practices. Also ask them to suggest some examples of companies which have a very poor environmental record. Why does such a difference exist?H  0޽h ? ̙330 tl(  ^  S     f  S    @   This slide suggests the relatively small number of product concepts that actually become successful. Ask students to suggest reasons for such a poor success rate. Can they also suggest ways by which the success rate might be improved?H  0޽h ? ̙3320 (  ^  S       S 6   @   ~jThis slide indicates the stages in the product development process. It also attempts to indicate organizational teams assigned to accomplish specific elements. Students might be asked to consider the utility of having the process broken down among several work groups. Would success be improved if all these activities were carried out by a single  project team from start to finish, rather than sequentially by teams of specialists?H  0޽h ? ̙33a0 !p( D8KAK ^  S       S `   @   One notion which might be discussed at this stage is the attempts by manufacturers to add information to an existing good rather than develop a new good.H  0޽h ? ̙330 D<(  ^  S     6  S    @   Here begins the attempt to link the product directly with the customer. You might specify a product and ask students to identify first the attributes of interest to the customer, and second the  benefits to the customer.H  0޽h ? ̙33R0  (  ^  S       S |Ŗ   @   At this point we have to start adding precision to our specifications. If we want a product to be  easy to use, what exactly does that mean? To use by whom? With what level of preparation? Etc.H  0޽h ? ̙33[0 (  ^  S        S    @   At this point, we have to develop the information necessary to actually produce the product - and, to know that it has been produced appropriately.H  0޽h ? ̙330 0M(  ^  S       S ܟ   @   IManufacturability and value engineering encompass many issues. You may wish to stress the point that we consider in detail not only what the product is, but how it is to be produced and maintained - the best design is optimized across all these activities, not just one or another.  H  0޽h ? ̙330 jbP(  ^  S     \  S    @   This slide illustrates changes made over a series of iterations in design. Cost is obviously reduced. You might ask students if the perceive any change in quality as the design iterations progressed and the cost was reduced.H  0޽h ? ̙330 pX(  ^  S       S    @   T@This slide introduces some of the issues of product development.H  0޽h ? ̙330 ld(  ^  S     ^  S á   @   After discussing the concept of robust design, you might identify a product and ask students to identify the use of robust design in its production. (One example is the use of the plastic seal on the inside of soda bottle caps)H  0޽h ? ̙33?0 p(  ^  S       S D6   @   wAsk the students to consider the effect of time-based competition not only on the producer, but also on the customer. Assume that you order two computers, through a catalog, directly from the factory. If you place one order today, and a second two days from now (for the same model, etc.), you may well receive two machines sufficiently different that the installation procedure for one will not work on the second. The producer has to deal with the issue of producing a constantly evolving product, but you also have to manage the problem created by the increasingly short and perhaps in a sense, artificial, product lifetimes.H  0޽h ? ̙33y0 91(  ^  S     +  S 8ѡ   @   Ask your students to suggest examples of products that are produced in modular fashion. Certainly microcomputers provide a good example; also cars, motorcycles, and hamburgers.H  0޽h ? ̙33b 0 "(  ^  S       S    @   CAD can be viewed both as a sophisticated design tool, and as the first step in developing a completely integrated production process. CAD=>CAM=> ... CIM.H  0޽h ? ̙33!0 ~v(  ^  S     p  S p   @   You might point out here that modern CAD systems with 3D representation and virtual reality capability allow one to  consumer test a product before it is produced. Students will probably be familiar with some of the televised automobile company ads.H  0޽h ? ̙33"0 QI (   ^   S     C   S    @   You might suggest that your students view value analysis as value engineering during, rather than prior to, production. Value analysis helps continually improve both design and production methodology.H   0޽h ? ̙33#0 X(  ^  S       S #   @   T@Product-by-value analysis helps identify appropriate priorities.H  0޽h ? ̙33$0 VN(  iP ^  S     H  S b   @   This slide introduces the concept of  product documents. Examples will be found in subsequent slides.H  0޽h ? ̙33{%0 ;3$(  $^ $ S     - $ S 0u   @   An excerpt from the specifications for Monterey Jack cheese. You might ask students to compare their perception of several other cheese to this excerpt, and note the differences.H $ 0޽h ? ̙33r&0 2*,( FFLF$F;K ,^ , S     $ , S    @   You might note to the students that the engineering drawing contains all dimensions necessary to produce the product - but specifies nothing about the production process.H , 0޽h ? ̙33'0 4"(  4^ 4 S      4 S    @    H 4 0޽h ? ̙33z(0 :20<(  <^ < S     , < S    @   Remind students that the Bill of Material indicates all parts or kits required to assemble a unit of the product and that bills of materials at multiple levels are required to fully specify each and every individual part contained in the finished unit. (The bill of material portrayed on the slide specifies a  frame assembly, but does not tell us what pieces are required to produce the assembly. This information would be contained in a lower level bill of materials.)H < 0޽h ? ̙33)0 PD"(  D^ D S      D S    @    H D 0޽h ? ̙33*0 pL"(  L^ L S      L S    @    At this point, one can raise the arguments for producing in-house versus purchasing. It might be useful in this instance to look both at manufacturing and services. Useful examples can be developed from: - the publishing industry where the publisher may perform the editing and project management, but contract virtually everything else out; - the role of production in house versus that of purchasing services outside in developing a distance education program, or staffing a hospital; - the procedure followed in the development of the Microsoft Windows 97 operating system, versus that for the Linux operating system. You might also ask your students to consider the relationship between the make-or-buy decision and the concept of the virtual organization.H L 0޽h ? ̙33@+0 T(  T^ T S      T S Ӧ   @   xYou might ask your students to consider the requirements necessary for the concept of group technology to be successful.H T 0޽h ? ̙33,0 \"(  \^ \ S      \ S U   @    H \ 0޽h ? ̙33-0 d"( $:KVKTdKdtK d^ d S      d S    @    H d 0޽h ? ̙33 .0 l\(  l^ l S      l S l   @   XDYou might ask your students to consider the  downside to group technology. Are the limitations it places on development and production significant or important?H l 0޽h ? ̙33/0 tQ(  t^ t S      t S p#   @   M9This slide introduces the notion of production documents.H t 0޽h ? ̙3300 0|"( FlF(.K$:K |^ | S      | S LG   @    H | 0޽h ? ̙3310 JBP( O  ^  S     <  S Q   @   One could obviously ask students to give examples of assembly charts for other common  products. H  0޽h ? ̙33j20 *"p( FFFlF ^  S       S [   @   This slide depicts both an Assembly Drawing and and Assembly Chart. Note that the Chart depicts both the relationship of the pieces and the sequence of assembly.H  0޽h ? ̙3330 U(  ^  S       S dk   @   Q=Note that the Route Sheet depicts both operations and timing.H  0޽h ? ̙3340 "(  ^  S       S    @    H  0޽h ? ̙3350 "( TFeF|FF ^  S       S \   @    H  0޽h ? ̙33g60 '( TTFeF|F ^  S       S 0   @   One might point out to students that as the market environment tends to evolve more rapidly, configuration management will become an even more important issue.H  0޽h ? ̙3370  <(  ^  S       S 蹱   @   8$Ask students to suggest example of services showing the various degrees of customer interaction in design. You might also ask students whether they would anticipate some the the notions of service design (customization, for example) to become important in manufacturing (mass customization?)H  0޽h ? ̙3380 0 V(  ^  S       S Tȱ   @   R>This illustrates some of the considerations in service design.H  0޽h ? ̙33c90 #P ( Lk$F@2FT ^  S       S    @   This slide illustrates some lessons learned by GTE You might ask students to cite examples illustrating the application of these lesson in other companiesH  0޽h ? ̙33<:0 p (  ^  S       S H   @   tThis slide should probably be used simply to provide a reason for studying decision trees at a later time (Module A)H  0޽h ? ̙33 ;0  ](  ^  S       S    @   YEThis slide introduces the problem of transitioning a product from design and development to production. It would probably be helpful to use this slide as the basis for a discussion of each of the issues. 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-O =8T=Operations Management Design of Goods and Services Chapter 5,><))' OutlineGlobal Company Profile: Regal Marine Goods and Services Selection Product Strategy Options Support Competitive Advantage Product Life Cycles Life Cycle and Strategy Product-by-value Analysis Generating New Products New Product Opportunities Importance of New Products ~CP}PP5PPC}5Outline - continuedUProduct Development Product Development System Quality Function Deployment (QFD) Organizing for Product Development Manufacturability and Value Engineering Issues for Product Design Robust Design Modular Design Computer-Aided Design (CAD) Computer-Aided Manufacturing Virtual Reality Technology Value Analysis Environmentally Friendly DesignfPPZPOutline - continuedTime-Based Competition Purchase of Technology by Acquiring Firm Joint Ventures Alliances Defining the Product Make-or-buy Decisions Group Technology Documents for Production Service Design Documents for Service Application of Decision Trees to Product Design Transition to ProductionPCPP'P(PPIPA&(ILearning Objectives1When you complete this chapter, you should be able to : Identify or Define: Product life cycle Product development team Manufacturabililty and value engineering Robust design Time-based competition Modular design Computer aided design Value analysis Group technology Configuration management\8ZPP^F8f<Learning Objectives continued  Regal MarineGlobal market 3-dimensional CAD reduced product development time reduced problems with tooling reduced problems in production Assembly line JIT6 ^ ^Humor in Product Design What is a Product?Need-satisfying offering of an organization Example P&G does not sell laundry detergent P&G sells the benefit of clean clothes Customers buy satisfaction, not parts May be a good or a serviceP, KA, KA  Product Strategy OptionsProduct differentiation  'Generation of New Product Opportunities(P(Economic change< Product Components  Product Life Cycle$Introduction Growth Maturity Decline Product Life Cycle Introduction* P fbFine tuning research product development process modification and enhancement supplier development& W W Product Life Cycle Growth*PfProduct design begins to stabilize Effective forecasting of capacity becomes necessary Adding or enhancing capacity may be necessaryProduct Life Cycle Maturity*PfCompetitors now established High volume, innovative production may be needed Improved cost control, reduction in options, paring down of product lineProduct Life Cycle Decline*PfLUnless product makes a special contribution, must plan to terminate offering+Product Life Cycle, Sales, Cost, and Profit,Z, !Percent of Sales From New Product"!$ (Products in Various Stages of Life Cycle)F)   #Product-by-Value AnalysisLists products in descending order of their individual dollar contribution to the firm. Helps management evaluate alternative strategies.Product Development StagesvIdea generation Assessment of firm s ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market Introduction to Market Evaluation8:F )FPI# =Quality Function DeploymentIdentify customer wants Identify how the good/service will satisfy customer wants Relate customer wants to product hows Identify relationships between the firm s hows Develop importance ratings Evaluate competing products3 > +8!J\House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements]Z] Idea Generation StageProvides basis for entry into market Sources of ideas Market need (60-80%); engineering & operations (20%); technology; competitors; inventions; employees Follows from marketing strategy Identifies, defines, & selects best market opportunitiesL6e 96e 9Customer Requirements Stage,Identifies & positions key product benefits Stated in core benefits proposition (CBP) Example: Long lasting with more power (Sears Die Hard Battery)V,k 3j gIdentifies detailed list of product attributes desired by customer Focus groups or 1-on-1 interviews ND 0Z*# 0Z D#Functional Specification StageDefines product in terms of how the product would meet desired attributes Identifies product s engineering characteristics Example: printer noise (dB) Prioritizes engineering characteristics May rate product compared to competitors R{C{WProduct Specification StageDetermines how product will be made Gives product s physical specifications Example: Dimensions, material etc. Defined by engineering drawing Done often on computer Computer-Aided Design (CAD)L$7L"7 @Quality Function DeploymentPProduct design process using cross-functional teams Marketing, engineering, manufacturing Translates customer preferences into specific product characteristics Involves creating 4 tabular  Matrices or  Houses Breakdown product design into increasing levels of detailT5Z&ZyZ:Z5&y:ATo Build House of QualityIdentify customer wants Identify how the good/service will satisfy customer wants. Relate the customer s wants to the product s hows. Identify relationships between the firm s hows. Develop importance ratings Evaluate competing productsZ -,9BHouse of Quality Sequence CHouse of Quality ExampleYou ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality."KHouse of Quality ExampleEHouse of Quality ExampleFHouse of Quality ExampleGHouse of Quality ExampleHHouse of Quality ExampleIHouse of Quality Example(Manufacturability and Value Engineering)P)Benefits: reduced complexity of products additional standardization of products improved functional aspects of product improved job design and job safety improved maintainability of the product robust design&  1Cost Reduction of a Bracket via Value Engineering2P2Issues for Product DevelopmentxRobust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design Robust DesignkProduct is designed so that small variations in production or assembly do not adversely affect the product Modular DesigncProducts designed in easily segmented components. Adds flexibility to both production and marketing Computer Aided Design (CAD)Designing products at a computer terminal or work station Design engineer develops rough sketch of product Uses computer to draw product Often used with CAMD<R<Q!Benefits of CAD/CAMShorter design time Database availability New capabilities Example: Focus more on product ideas Improved product quality Reduced production costs6<%2<%2"Value AnalysisFocuses on design improvement during production Seeks improvements leading either to a better product or a product which can be more economically produced.Environmentally Sound Strategy$ Benefits Safe and environmentally sound products Minimum raw material and energy waste Product differentiation Environmental liability reduction Cost effective compliance with environmental regulations Recognition as good corporate citizen&   >Environmentally Friendly DesignMake products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less materialTime-based CompetitionProduct life cycles are becoming shorter. \Faster developers of new products gain on slower developers and obtain a competitive advantage0+c*c ?5Cost Reduction of a Bracket Through Value Engineering$Product DocumentsEngineering drawing Shows dimensions, tolerances, & materials Shows codes for Group Technology Bill of Material Lists components, quantities & where used Shows product structurepKB:fB% Monterey Jack(a) U.S. grade AA. Monterey cheese shall conform to the following requirements: (1)Flavor. Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feed flavor. (2)Body and texture. A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes (3)Color. Shall have a natural, uniform, bright and attractive appearance. (4)Finish and appearance - bandaged and paraffin-dipped. The rind shall be sound, firm, and smooth providing a good protection to the cheeseRF> x C8V&Engineering Drawing Example '8Engineering Drawings - Show Dimensions, Tolerances, etc.9P9(Bill of Material Example )Examples of Bills of Materials*Make-or-Buy DecisionsDecide whether or not you want (or need) to produce an item May be able to purchase the item as a  standard item from another manufacturer+ Group Technology Characteristics!P!Parts grouped into families Similar, more standardized parts Uses coding system Describes processing & physical characteristics Part families produced in manufacturing cells Mini-assembly linest!0/!0/  ,Group Technology Code Example -1Group Technology Schemes Enable Grouping of Parts.Group Technology BenefitsImproved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenance/Production Documents7Assembly Drawings Assembly chart Route sheet Work order0Assembly DrawingShows exploded view of product1#Assembly Chart for A Tuna Sandwich$P$ 2#Assembly Drawing and Assembly Chart$P$3 Route SheetLists all operations4 Work Order 5Engineering Change Notice (ECN) P JA correction or modification of an engineering drawing or bill of material6Configuration Management2A system by which a product s planned and changing components are accurately identified and for which control and accountability of change are maintained72Service Design - Nature of Customer Participation81Improving Customer Relations at a Drive-up Window2Z2`Be especially discreet when talking with customer through the microphone Provide written instructions for customers who must fill out forms you provide Mark lines to be completed or attach a note with instructions Always say  please and  thank you Establish eye contact with the customer if the distance allows it If the transaction requires that the customer park the car and come into the lobby, apologize for the inconvenience.9Moment-of-Truth at GTE:/Application of Decision Trees to Product DesignXParticularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes. 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Operations 9-))--). ).2  Operations 9-))--). .2 g Management=)-(-)A(-. ).2 d Management=)-(-)A(-.@"Arial Narrow bwbw0- .12 Design of Goods and Services#   &  . .12 Design of Goods and Services#   &  ՜.+,0p iceP, KA, KA  Product Strategy OptionsProduct differentiation  'Generation of New Product Opportunities(P(Economic change< Product Components  Product Life Cycle$Introduction Growth Maturity Decline Product Life Cycle Introduction* P fbFine tuning research product development process modification and enhancement supplier development& W W Product Life Cycle Growth*PfProduct design begins to stabilize Effective forecasting of capacity becomes necessary Adding or enhancing capacity may be necessaryProduct Life Cycle Maturity*PfCompetitors now established High volume, innovative production may be needed Improved cost control, reduction in options, paring down of product lineProduct Life Cycle Decline*PfLUnless product makes a special contribution, must plan to terminate offering+Product Life Cycle, Sales, Cost, and Profit,Z, !Percent of Sales From New Product"!$ (Products in Various Stages of Life Cycle)F)   #Product-by-Value AnalysisLists products in descending order of their individual dollar contribution to the firm. Helps management evaluate alternative strategies.Product Development StagesvIdea generation Assessment of firm s ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market Introduction to Market Evaluation8:F )FPI# =Quality Function DeploymentIdentify customer wants Identify how the good/service will satisfy customer wants Relate customer wants to product hows Identify relationships between the firm s hows Develop importance ratings Evaluate competing products3 > +8!J\House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements]Z] Idea Generation StageProvides basis for entry into market Sources of ideas Market need (60-80%); engineering & operations (20%); technology; competitors; inventions; employees Follows from marketing strategy Identifies, defines, & selects best market opportunitiesL6e 96e 9Customer Requirements Stage,Identifies & positions key product benefits Stated in core benefits proposition (CBP) Example: Long lasting with more power (Sears Die Hard Battery)V,k 3j gIdentifies detailed list of product attributes desired by customer Focus groups or 1-on-1 interviews ND 0Z*# 0Z D#Functional Specification StageDefines product in terms of how the product would meet desired attributes Identifies product s engineering characteristics Example: printer noise (dB) Prioritizes engineering characteristics May rate product compared to competitors R{C{WProduct Specification StageDetermines how product will be made Gives product s physical specifications Example: Dimensions, material etc. Defined by engineering drawing Done often on computer Computer-Aided Design (CAD)L$7L"7 @Quality Function DeploymentPProduct design process using cross-functional teams Marketing, engineering, manufacturing Translates customer preferences into specific product characteristics Involves creating 4 tabular  Matrices or  Houses Breakdown product design into increasing levels of detailT5Z&ZyZ:Z5&y:ATo Build House of QualityIdentify customer wants Identify how the good/service will satisfy customer wants. Relate the customer s wants to the product s hows. Identify relationships between the firm s hows. Develop importance ratings Evaluate competing productsZ -,9BHouse of Quality Sequence CHouse of Quality ExampleYou ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality."KHouse of Quality ExampleEHouse of Quality ExampleFHouse of Quality ExampleGHouse of Quality ExampleHHouse of Quality ExampleIHouse of Quality Example-L"Organizing for Product DevelopmentHistorically  distinct departments Duties and responsibilities are defined Difficult to foster forward thinking Today  team approach Representatives from all disciplines or functions Concurrent engineering  cross functional teamL$Ma$Ma(Manufacturability and Value Engineering)P)Benefits: reduced complexity of products additional standardization of products improved functional aspects of product improved job design and job safety improved maintainability of the product robust design&  1Cost Reduction of a Bracket via Value Engineering2P2Issues for Product DevelopmentxRobust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design Robust DesignkProduct is designed so that small variations in production or assembly do not adversely affect the product Modular DesigncProducts designed in easily segmented components. Adds flexibility to both production and marketing Computer Aided Design (CAD)Designing products at a computer terminal or work station Design engineer develops rough sketch of product Uses computer to draw product Often used with CAMD<R<Q!Benefits of CAD/CAMShorter design time Database availability New capabilities Example: Focus more on product ideas Improved product quality Reduced production costs6<%2<%2.MExtensions of CADDesign for Manufacturing and Assembly (DFMA) 3-D Object Modeling CAD/CAM  CAD info is translated into machine control instructions (CAM)0NVirtual RealityComputer technology used to develop an interactive, 3-D model of a product. Especially helpful in design of layouts (factory, store, home, office)"Value AnalysisFocuses on design improvement during production Seeks improvements leading either to a better product or a product which can be more economically produced. Environmentally Friendly DesignsBenefits Safe and environmentally sound products Minimum raw material and energy waste Product differentiation Environmental liability reduction Cost-effective compliance with environmental regulations Recognition as good corporate citizen&   >* Green ManufacturingMake products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less materialTime-based CompetitionProduct life cycles are becoming shorter. \Faster developers of new products gain on slower developers and obtain a competitive advantage0+c*c1OProduct Development Continuum ?5Cost Reduction of a Bracket Through Value Engineering$Product DocumentsEngineering drawing Shows dimensions, tolerances, & materials Shows codes for Group Technology Bill of Material Lists components, quantities & where used Shows product structurepKB:fB% Monterey Jack(a) U.S. grade AA. Monterey cheese shall conform to the following requirements: (1)Flavor. Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feed flavor. (2)Body and texture. A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes (3)Color. Shall have a natural, uniform, bright and attractive appearance. (4)Finish and appearance - bandaged and paraffin-dipped. The rind shall be sound, firm, and smooth providing a good protection to the cheeseRF> x C8V&Engineering Drawing Example '8Engineering Drawings - Show Dimensions, Tolerances, etc.9P9(Bill of Material Example )Examples of Bills of Materials*Make-or-Buy DecisionsDecide whether or not you want (or need) to produce an item May be able to purchase the item as a  standard item from another manufacturer+ Group Technology Characteristics!P!Parts grouped into families Similar, more standardized parts Uses coding system Describes processing & physical characteristics Part families produced in manufacturing cells Mini-assembly linest!0/!0/  ,Group Technology Code Example -1Group Technology Schemes Enable Grouping of Parts.Group Technology BenefitsImproved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenance/Production Documents7Assembly Drawings Assembly chart Route sheet Work order0Assembly DrawingShows exploded view of product1#Assembly Chart for A Tuna Sandwich$P$ 2#Assembly Drawing and Assembly Chart$P$3 Route SheetLists all operations4 Work Order 5Engineering Change Notice (ECN) P JA correction or modification of an engineering drawing or bill of material6Configuration Management2A system by which a product s planned and changing components are accurately identified and for which control and accountability of change are maintained72Service Design - Nature of Customer Participation81Improving Customer Relations at a Drive-up Window2Z2`Be especially discreet when talking with customer through the microphone Provide written instructions for customers who must fill out forms you provide Mark lines to be completed or attach a note with instructions Always say  please and  thank you Establish eye contact with the customer if the distance allows it If the transaction requires that the customer park the car and come into the lobby, apologize for the inconvenience.9Moment-of-Truth at GTE:/Application of Decision Trees to Product DesignXParticularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes. 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Slide TitlesNN Slide TitlesO. .2 Bq Chapter 5t# . .2 @o Chapter 5t# .--0kClip (MS_ClipArt_Gallery.20,Microsoft Clip Galleryz0s VISIO Visio.Drawing.40 VISIO0tDocument Word.Document.80.Microsoft Word Document0uClip (MS_ClipArt_Gallery.20,Microsoft Clip Galleryz0v VISIO Visio.Drawing.40 VISIO0wDocument Word.Document.80.Microsoft Word Document/ 0DArial Narrow L$| v 0( 0h"DSymbolarrow L$| v 0( 0h DArialarrow L$| v 0( 0h"0DMonotype Sorts$| v 0( 0h@DBrush Script MT$| v 0( 0hBPDWingdingspt MT$| v 0( 0h ` .  @n?" dd@  @@``   t      GP m >^<J  5Jz@ll>A)$5>>5wU>1     N !"#$%&'():+/1,(-06869:5;<7=SV;N#^)+a./ CEmKM)QsUAZ[]_R%cgkgAq1ju{}LASE\"W F 2 >?@AB#CDEwHIJK  FG539?0 2$cNS'_ m 2$ͣ;Dݦ$ѦvQm 2$nT9tlT7X85\2$q%/#Ds2$ v.54m҉b$PknU+)2$#&]=OA Yu2$+cwDG~b$hrchawgԑ؄2$qK _t7Y#b$_N)q_gr%8N"$"ZAfkdK|b$c[ VXc $ f3333@f, g42d2dv 0Hp p<4dddd` 0L} \Rg4KdKdv 0dp@ ppuʚ;2Nʚ;<4!d!d{ 0<4dddd{ 0:2___PPT9/ 0? -O =X=Operations Management Design of Goods and Services Chapter 5,><))' OutlineGlobal Company Profile: Regal Marine Goods and Services Selection Product Strategy Options Support Competitive Advantage Product Life Cycles Life Cycle and Strategy Product-by-value Analysis Generating New Products New Product Opportunities Importance of New Products ~CP}PP5PPC}5Outline - continuedUProduct Development Product Development System Quality Function Deployment (QFD) Organizing for Product Development Manufacturability and Value Engineering Issues for Product Design Robust Design Modular Design Computer-Aided Design (CAD) Computer-Aided Manufacturing Virtual Reality Technology Value Analysis Environmentally Friendly DesignfPPZPOutline - continuedTime-Based Competition Purchase of Technology by Acquiring Firm Joint Ventures Alliances Defining the Product Make-or-buy Decisions Group Technology Documents for Production Service Design Documents for Service Application of Decision Trees to Product Design Transition to ProductionPCPP'P(PPIPA&(ILearning Objectives1When you complete this chapter, you should be able to : Identify or Define: Product life cycle Product development team Manufacturabililty and value engineering Robust design Time-based competition Modular design Computer aided design Value analysis Group technology Configuration management\8ZPP^F8f<Learning Objectives continued  Regal MarineGlobal market 3-dimensional CAD reduced product development time reduced problems with tooling reduced problems in production Assembly line JIT6 ^ ^Humor in Product Design What is a Product?Need-satisfying offering of an organization Example P&G does not sell laundry detergent P&G sells the benefit of clean clothes Customers buy satisfaction, not parts May be a good or a serviceP, KA, KA  Product Strategy OptionsProduct differentiation  'Generation of New Product Opportunities(P(Economic change< Product Components  Product Life Cycle$Introduction Growth Maturity Decline Product Life Cycle Introduction* P fbFine tuning research product development process modification and enhancement supplier development& W W Product Life Cycle Growth*PfProduct design begins to stabilize Effective forecasting of capacity becomes necessary Adding or enhancing capacity may be necessaryProduct Life Cycle Maturity*PfCompetitors now established High volume, innovative production may be needed Improved cost control, reduction in options, paring down of product lineProduct Life Cycle Decline*PfLUnless product makes a special contribution, must plan to terminate offering+Product Life Cycle, Sales, Cost, and Profit,Z, !Percent of Sales From New Product"!$ (Products in Various Stages of Life Cycle)F)   #Product-by-Value AnalysisLists products in descending order of their individual dollar contribution to the firm. Helps management evaluate alternative strategies.Product Development StagesvIdea generation Assessment of firm s ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market Introduction to Market Evaluation8:F )FPI# =Quality Function DeploymentIdentify customer wants Identify how the good/service will satisfy customer wants Relate customer wants to product hows Identify relationships between the firm s hows Develop importance ratings Evaluate competing products3 > +8!J\House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements]Z] Idea Generation StageProvides basis for entry into market Sources of ideas Market need (60-80%); engineering & operations (20%); technology; competitors; inventions; employees Follows from marketing strategy Identifies, defines, & selects best market opportunitiesL6e 96e 9Customer Requirements Stage,Identifies & positions key product benefits Stated in core benefits proposition (CBP) Example: Long lasting with more power (Sears Die Hard Battery)V,k 3j gIdentifies detailed list of product attributes desired by customer Focus groups or 1-on-1 interviews ND 0Z*# 0Z D#Functional Specification StageDefines product in terms of how the product would meet desired attributes Identifies product s engineering characteristics Example: printer noise (dB) Prioritizes engineering characteristics May rate product compared to competitors R{C{WProduct Specification StageDetermines how product will be made Gives product s physical specifications Example: Dimensions, material etc. Defined by engineering drawing Done often on computer Computer-Aided Design (CAD)L$7L"7 @Quality Function DeploymentPProduct design process using cross-functional teams Marketing, engineering, manufacturing Translates customer preferences into specific product characteristics Involves creating 4 tabular  Matrices or  Houses Breakdown product design into increasing levels of detailT5Z&ZyZ:Z5&y:ATo Build House of QualityIdentify customer wants Identify how the good/service will satisfy customer wants. Relate the customer s wants to the product s hows. Identify relationships between the firm s hows. Develop importance ratings Evaluate competing productsZ -,9BHouse of Quality Sequence CHouse of Quality ExampleYou ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality."KHouse of Quality ExampleEHouse of Quality ExampleFHouse of Quality ExampleGHouse of Quality ExampleHHouse of Quality ExampleIHouse of Quality Example-L"Organizing for Product DevelopmentHistorically  distinct departments Duties and responsibilities are defined Difficult to foster forward thinking Today  team approach Representatives from all disciplines or functions Concurrent engineering  cross functional teamL$Ma$Ma(Manufacturability and Value Engineering)P)Benefits: reduced complexity of products additional standardization of products improved functional aspects of product improved job design and job safety improved maintainability of the product robust design&  1Cost Reduction of a Bracket via Value Engineering2P2Issues for Product DevelopmentxRobust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design Robust DesignkProduct is designed so that small variations in production or assembly do not adversely affect the product Modular DesigncProducts designed in easily segmented components. Adds flexibility to both production and marketing Computer Aided Design (CAD)Designing products at a computer terminal or work station Design engineer develops rough sketch of product Uses computer to draw product Often used with CAMD<R<Q!Benefits of CAD/CAMShorter design time Database availability New capabilities Example: Focus more on product ideas Improved product quality Reduced production costs6<%2<%2.MExtensions of CADDesign for Manufacturing and Assembly (DFMA) 3-D Object Modeling CAD/CAM  CAD info is translated into machine control instructions (CAM)0NVirtual RealityComputer technology used to develop an interactive, 3-D model of a product. Especially helpful in design of layouts (factory, store, home, office)"Value AnalysisFocuses on design improvement during production Seeks improvements leading either to a better product or a product which can be more economically produced. Environmentally Friendly DesignsBenefits Safe and environmentally sound products Minimum raw material and energy waste Product differentiation Environmental liability reduction Cost-effective compliance with environmental regulations Recognition as good corporate citizen&   >* Green ManufacturingMake products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less materialTime-based CompetitionProduct life cycles are becoming shorter. \Faster developers of new products gain on slower developers and obtain a competitive advantage0+c*c1OProduct Development Continuum$Product DocumentsEngineering drawing Shows dimensions, tolerances, & materials Shows codes for Group Technology Bill of Material Lists components, quantities & where used Shows product structurepKB:fB% Monterey Jack(a) U.S. grade AA. Monterey cheese shall conform to the following requirements: (1)Flavor. Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feed flavor. (2)Body and texture. A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes (3)Color. Shall have a natural, uniform, bright and attractive appearance. (4)Finish and appearance - bandaged and paraffin-dipped. The rind shall be sound, firm, and smooth providing a good protection to the cheeseRF> x C8V&Engineering Drawing Example '8Engineering Drawings - Show Dimensions, Tolerances, etc.9P9(Bill of Material Example )Examples of Bills of Materials*Make-or-Buy DecisionsDecide whether or not you want (or need) to produce an item May be able to purchase the item as a  standard item from another manufacturer+ Group Technology Characteristics!P!Parts grouped into families Similar, more standardized parts Uses coding system Describes processing & physical characteristics Part families produced in manufacturing cells Mini-assembly linest!0/!0/  ,Group Technology Code Example -1Group Technology Schemes Enable Grouping of Parts.Group Technology BenefitsImproved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenance/Production Documents7Assembly Drawings Assembly chart Route sheet Work order0Assembly DrawingShows exploded view of product1#Assembly Chart for A Tuna Sandwich$P$ 2#Assembly Drawing and Assembly Chart$P$3 Route SheetLists all operations4 Work Order 5Engineering Change Notice (ECN) P JA correction or modification of an engineering drawing or bill of material6Configuration Management2A system by which a product s planned and changing components are accurately identified and for which control and accountability of change are maintained72Service Design - Nature of Customer Participation81Improving Customer Relations at a Drive-up Window2Z2`Be especially discreet when talking with customer through the microphone Provide written instructions for customers who must fill out forms you provide Mark lines to be completed or attach a note with instructions Always say  please and  thank you Establish eye contact with the customer if the distance allows it If the transaction requires that the customer park the car and come into the lobby, apologize for the inconvenience.9Moment-of-Truth at GTE:/Application of Decision Trees to Product DesignXParticularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes. Considerations: Include all possible alternatives and states of nature - including  doing nothing Enter payoffs at end of branch Approach determining expected values by  pruning tree 6;Transition to ProductionFirst issue: knowing when to move to production! Second: must view product development as evolutionary, not responsibility of single individual/department Third: expect to need a trial production period to work the bugs out Fourth: recognize that responsibility must also transition/4      !"#$%&'()*+,-./0123456789:; <=>?@BCDE F#G$H%I&J/Ln   t(  tr t S `    t s *H! P, (External Development Strategies Alliances Joint Ventures Purchase Technology or Expertise by Acquiring the DeveloperP 0F2 82#02<0<2 i,+CB t s *3f` f  Internal Development Strategies Migrations of Existing Products Enhancement to Existing Products New Internally Developed ProductsD 8F2 822I022 i t 0t  @  h8Internal ----------------------Cost of Product Development --------------------- Shared Lengthy --------------------Speed of Product Development---------------Rapid and/or Existing High ------------------------- Risk of Product Development ----------------------- Shared \ 2V0Z< 822^0P20A OhX t 0f0 H t 0}a ? ff333 0xZ{p?& |B\Ġ 婈( M"Q q8ĨDVmm vC%ڪGttu:5Nuje;v7 (mm~;=9Ĕ7(t}"t"RNPC$\.gѹ//)̼(%~1@$ C9:h<0PL4_^ԁO7"ڃ{n+A$.~P/M|NDؚr֓鿒$ߟ"Mc]{+k 4VbW@{n~ם~= l}¼)X$@ `2` T4@-L@0P h 8p.``.`04,p!`)F kx꼵v,i.E:csa}]m5Ν*֬lok[rhfEjgs{DܡU˱¡phr6:9lY73^>l]|֖Luy41(uL]+$Ͱ.BV#o3l5Q7NQoG׹_S2 Aeڶ>eOe0yC=c?,{YXNͨS@mO-QӴ,>tINZ>I_Ei 5Mp*I\d֥cfd7U6*>T>I8}#'J}kkeV3cO?>Oe7C? 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Helps management evaluate alternative strategies.Product Development StagesvIdea generation Assessment of firm s ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market Introduction to Market Evaluation8:F )FPI# =Quality Function DeploymentIdentify customer wants Identify how the good/service will satisfy customer wants Relate customer wants to product hows Identify relationships between the firm s hows Develop importance ratings Evaluate competing products3 > +8!J\House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements]Z] Idea Generation StageProvides basis for entry into market Sources of ideas Market need (60-80%); engineering & operations (20%); technology; competitors; inventions; employees Follows from marketing strategy Identifies, defines, & selects best market opportunitiesL6e 96e 9Customer Requirements Stage,Identifies & positions key product benefits Stated in core benefits proposition (CBP) Example: Long lasting with more power (Sears Die Hard Battery)V,k 3j gIdentifies detailed list of product attributes desired by customer Focus groups or 1-on-1 interviews ND 0Z*# 0Z D#Functional Specification StageDefines product in terms of how the product would meet desired attributes Identifies product s engineering characteristics Example: printer noise (dB) Prioritizes engineering characteristics May rate product compared to competitors R{C{WProduct Specification StageDetermines how product will be made Gives product s physical specifications Example: Dimensions, material etc. Defined by engineering drawing Done often on computer Computer-Aided Design (CAD)L$7L"7 @Quality Function DeploymentPProduct design process using cross-functional teams Marketing, engineering, manufacturing Translates customer preferences into specific product characteristics Involves creating 4 tabular  Matrices or  Houses Breakdown product design into increasing levels of detailT5Z&ZyZ:Z5&y:ATo Build House of QualityIdentify customer wants Identify how the good/service will satisfy customer wants. Relate the customer s wants to the product s hows. Identify relationships between the firm s hows. Develop importance ratings Evaluate competing productsZ -,9BHouse of Quality Sequence CHouse of Quality ExampleYou ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality."KHouse of Quality ExampleEHouse of Quality ExampleFHouse of Quality ExampleGHouse of Quality ExampleHHouse of Quality ExampleIHouse of Quality Example-L"Organizing for Product DevelopmentHistorically  distinct departments Duties and responsibilities are defined Difficult to foster forward thinking Today  team approach Representatives from all disciplines or functions Concurrent engineering  cross functional teamL$Ma$Ma(Manufacturability and Value Engineering)P)Benefits: reduced complexity of products additional standardization of products improved functional aspects of product improved job design and job safety improved maintainability of the product robust design&  1Cost Reduction of a Bracket via Value Engineering2P2Issues for Product DevelopmentxRobust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design Robust DesignkProduct is designed so that small variations in production or assembly do not adversely affect the product Modular DesigncProducts designed in easily segmented components. Adds flexibility to both production and marketing Computer Aided Design (CAD)Designing products at a computer terminal or work station Design engineer develops rough sketch of product Uses computer to draw product Often used with CAMD<R<Q!Benefits of CAD/CAMShorter design time Database availability New capabilities Example: Focus more on product ideas Improved product quality Reduced production costs6<%2<%2.MExtensions of CADDesign for Manufacturing and Assembly (DFMA) 3-D Object Modeling CAD/CAM  CAD info is translated into machine control instructions (CAM)0NVirtual RealityComputer technology used to develop an interactive, 3-D model of a product. Especially helpful in design of layouts (factory, store, home, office)"Value AnalysisFocuses on design improvement during production Seeks improvements leading either to a better product or a product which can be more economically produced. Environmentally Friendly DesignsBenefits Safe and environmentally sound products Minimum raw material and energy waste Product differentiation Environmental liability reduction Cost-effective compliance with environmental regulations Recognition as good corporate citizen&   >* Green ManufacturingMake products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less materialTime-based CompetitionProduct life cycles are becoming shorter. \Faster developers of new products gain on slower developers and obtain a competitive advantage0+c*c1OProduct Development Continuum$Product DocumentsEngineering drawing Shows dimensions, tolerances, & materials Shows codes for Group Technology Bill of Material Lists components, quantities & where used Shows product structurepKB:fB% Monterey Jack(a) U.S. grade AA. Monterey cheese shall conform to the following requirements: (1)Flavor. Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feed flavor. (2)Body and texture. A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes (3)Color. Shall have a natural, uniform, bright and attractive appearance. (4)Finish and appearance - bandaged and paraffin-dipped. The rind shall be sound, firm, and smooth providing a good protection to the cheeseRF> x C8V&Engineering Drawing Example '8Engineering Drawings - Show Dimensions, Tolerances, etc.9P9(Bill of Material Example )Examples of Bills of Materials*Make-or-Buy DecisionsDecide whether or not you want (or need) to produce an item May be able to purchase the item as a  standard item from another manufacturer+ Group Technology Characteristics!P!Parts grouped into families Similar, more standardized parts Uses coding system Describes processing & physical characteristics Part families produced in manufacturing cells Mini-assembly linest!0/!0/  ,Group Technology Code Example -1Group Technology Schemes Enable Grouping of Parts.Group Technology BenefitsImproved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenance/Production Documents7Assembly Drawings Assembly chart Route sheet Work order0Assembly DrawingShows exploded view of product1#Assembly Chart for A Tuna Sandwich$P$ 2#Assembly Drawing and Assembly Chart$P$3 Route SheetLists all operations4 Work Order 5Engineering Change Notice (ECN) P JA correction or modification of an engineering drawing or bill of material6Configuration Management2A system by which a product s planned and changing components are accuratp       !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz|}~ely identified and for which control and accountability of change are maintained72Service Design - Nature of Customer Participation81Improving Customer Relations at a Drive-up Window2Z2`Be especially discreet when talking with customer through the microphone Provide written instructions for customers who must fill out forms you provide Mark lines to be completed or attach a note with instructions Always say  please and  thank you Establish eye contact with the customer if the distance allows it If the transaction requires that the customer park the car and come into the lobby, apologize for the inconvenience.9Moment-of-Truth at GTE:/Application of Decision Trees to Product DesignXParticularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes. 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-O =Y=Operations Management Design of Goods and Services Chapter 5,><))' OutlineGlobal Company Profile: Regal Marine Goods and Services Selection Product Strategy Options Support Competitive Advantage Product Life Cycles Life Cycle and Strategy Product-by-value Analysis Generating New Products New Product Opportunities Importance of New Products vCP}PP5PPC}5Outline - continuedUProduct Development Product Development System Quality Function Deployment (QFD) Organizing for Product Development Manufacturability and Value Engineering Issues for Product Design Robust Design Modular Design Computer-Aided Design (CAD) Computer-Aided Manufacturing Virtual Reality Technology Value Analysis Environmentally Friendly DesignfPPZPOutline - continuedTime-Based Competition Purchase of Technology by Acquiring Firm Joint Ventures Alliances Defining the Product Make-or-buy Decisions Group Technology Documents for Production Service Design Documents for Service Application of Decision Trees to Product Design Transition to ProductionPCPP'P(PPIPA'(ILearning Objectives1When you complete this chapter, you should be able to : Identify or Define: Product life cycle Product development team Manufacturabililty and value engineering Robust design Time-based competition Modular design Computer aided design Value analysis Group technology Configuration managementb8PP^F8f<Learning Objectives continued  Regal MarineGlobal market 3-dimensional CAD reduced product development time reduced problems with tooling reduced problems in production Assembly line JIT6 ^ ^Humor in Product Design What is a Product?Need-satisfying offering of an organization Example P&G does not sell laundry detergent P&G sells the benefit of clean clothes Customers buy satisfaction, not parts May be a good or a serviceP, KA, KA Product Strategy OptionsProduct differentiation  'Generation of New Product Opportunities(P(Economic change< Product Components  Product Life Cycle$Introduction Growth Maturity Decline Product Life Cycle Introduction* P fbFine tuning research product development process modification and enhancement supplier development& W W Product Life Cycle Growth*PfProduct design begins to stabilize Effective forecasting of capacity becomes necessary Adding or enhancing capacity may be necessaryProduct Life Cycle Maturity*PfCompetitors now established High volume, innovative production may be needed Improved cost control, reduction in options, paring down of product lineProduct Life Cycle Decline*PfLUnless product makes a special contribution, must plan to terminate offering+Product Life Cycle, Sales, Cost, and Profit,Z, !Percent of Sales From New Product"!$ (Products in Various Stages of Life Cycle)F)   #Product-by-Value AnalysisLists products in descending order of their individual dollar contribution to the firm. Helps management evaluate alternative strategies.Product Development StagesvIdea generation Assessment of firm s ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market Introduction to Market Evaluation8:F )FPI# =Quality Function DeploymentIdentify customer wants Identify how the good/service will satisfy customer wants Relate customer wants to product hows Identify relationships between the firm s hows Develop importance ratings Evaluate competing products3 > +8!J\House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements]Z] Idea Generation StageProvides basis for entry into market Sources of ideas Market need (60-80%); engineering & operations (20%); technology; competitors; inventions; employees Follows from marketing strategy Identifies, defines, & selects best market opportunitiesL6e 96e 9Customer Requirements Stage,Identifies & positions key product benefits Stated in core benefits proposition (CBP) Example: Long lasting with more power (Sears Die Hard Battery)F,k 3k gIdentifies detailed list of product attributes desired by customer Focus groups or 1-on-1 interviews JD 0Z*# 0Z D#Functional Specification StageDefines product in terms of how the product would meet desired attributes Identifies product s engineering characteristics Example: printer noise (dB) Prioritizes engineering characteristics May rate product compared to competitors R{C{WProduct Specification StageDetermines how product will be made Gives product s physical specifications Example: Dimensions, material etc. Defined by engineering drawing Done often on computer Computer-Aided Design (CAD)L$7L"7 @Quality Function DeploymentPProduct design process using cross-functional teams Marketing, engineering, manufacturing Translates customer preferences into specific product characteristics Involves creating 4 tabular  Matrices or  Houses Breakdown product design into increasing levels of detailL5&y:5&y:ATo Build House of QualityIdentify customer wants Identify how the good/service will satisfy customer wants. Relate the customer s wants to the product s hows. Identify relationships between the firm s hows. Develop importance ratings Evaluate competing productsZ -,9BHouse of Quality Sequence CHouse of Quality ExampleYou ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality."KHouse of Quality ExampleEHouse of Quality ExampleFHouse of Quality ExampleGHouse of Quality ExampleHHouse of Quality ExampleIHouse of Quality Example-L"Organizing for Product DevelopmentHistorically  distinct departments Duties and responsibilities are defined Difficult to foster forward thinking Today  team approach Representatives from all disciplines or functions Concurrent engineering  cross functional teamL$Ma$Ma(Manufacturability and Value Engineering)P)Benefits: reduced complexity of products additional standardization of products improved functional aspects of product improved job design and job safety improved maintainability of the product robust design&  1Cost Reduction of a Bracket via Value Engineering2P2Issues for Product DevelopmentxRobust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design Robust DesignkProduct is designed so that small variations in production or assembly do not adversely affect the product Modular DesigncProducts designed in easily segmented components. Adds flexibility to both production and marketing Computer Aided Design (CAD)Designing products at a computer terminal or work station Design engineer develops rough sketch of product Uses computer to draw product Often used with CAMD<R<Q!Benefits of CAD/CAMShorter design time Database availability New capabilities Example: Focus more on product ideas Improved product quality Reduced production costs6<%2<%2.MExtensions of CADDesign for Manufacturing and Assembly (DFMA) 3-D Object Modeling CAD/CAM  CAD info is translated into machine control instructions (CAM)0NVirtual RealityComputer technology used to develop an interactive, 3-D model of a product. Especially helpful in design of layouts (factory, store, home, office)"Value AnalysisFocuses on design improvement during production Seeks improvements leading either to a better product or a product which can be more economically produced. Environmentally Friendly DesignsBenefits Safe and environmentally sound products Minimum raw material and energy waste Product differentiation Environmental liability reduction Cost-effective compliance with environmental regulations Recognition as good corporate citizen&   >* Green ManufacturingMake products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less materialTime-based CompetitionProduct life cycles are becoming shorter. \Faster developers of new products gain on slower developers and obtain a competitive advantage0+c*c1OProduct Development Continuum$Product DocumentsEngineering drawing Shows dimensions, tolerances, & materials Shows codes for Group Technology Bill of Material Lists components, quantities & where used Shows product structurepKB:fB% Monterey Jack(a) U.S. grade AA. Monterey cheese shall conform to the following requirements: (1)Flavor. Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feed flavor. (2)Body and texture. A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes (3)Color. Shall have a natural, uniform, bright and attractive appearance. (4)Finish and appearance - bandaged and paraffin-dipped. The rind shall be sound, firm, and smooth providing a good protection to the cheeseRF> x C8V&Engineering Drawing Example '8Engineering Drawings - Show Dimensions, Tolerances, etc.9P9(Bill of Material Example 2P  *Make-or-Buy DecisionsDecide whether or not you want (or need) to produce an item May be able to purchase the item as a  standard item from another manufacturer+ Group Technology Characteristics!P!Parts grouped into families Similar, more standardized parts Uses coding system Describes processing & physical characteristics Part families produced in manufacturing cells Mini-assembly linest!0/!0/ ,Group Technology Code Example -1Group Technology Schemes Enable Grouping of Parts.Group Technology BenefitsImproved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenance/Production Documents6Assembly Drawing Assembly chart Route sheet Work order0Assembly DrawingShows exploded view of product1#Assembly Chart for A Tuna Sandwich$P$ 2#Assembly Drawing and Assembly Chart$P$3 Route SheetLists all operations4 Work Order 5Engineering Change Notice (ECN) P JA correction or modification of an engineering drawing or bill of material6Configuration Management2A system by which a product s planned and changing components are accurately identified and for which control and accountability of change are maintained72Service Design - Nature of Customer Participation81Improving Customer Relations at a Drive-up Window2Z2`Be especially discreet when talking with customer through the microphone Provide written instructions for customers who must fill out forms you provide Mark lines to be completed or attach a note with instructions Always say  please and  thank you Establish eye contact with the customer if the distance allows it If the transaction requires that the customer park the car and come into the lobby, apologize for the inconvenience.9%Moment-of-Truth at a Computer Company&F&:/Application of Decision Trees to Product DesignXParticularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes. Considerations: Include all possible alternatives and states of nature - including  doing nothing Enter payoffs at end of branch Approach determining expected values by  pruning tree 6;Transition to ProductionFirst issue: knowing when to move to production! Second: must view product development as evolutionary, not responsibility of single individual/department Third: expect to need a trial production period to work the bugs out Fourth: recognize that responsibility must also transition/      !"#$%&'(*+,-./0123456789:; <=>?@BCDE F#G$H%I&J/L_  ` ̙33` ` ff3333f` 333MMM` f` f` 3>?" dd(x?d3dHP n?" dd@   @@``PR     ` p>> +(  4  NxFEFE   RClick to edit Master text styles Second level Third level Fourth level Fifth level!     S  Np xFEFE Zpf x {PowerPoint presentation to accompany Heizer/Render - Principles of Operations Management, 5e, and Operations Management, 7e|{  %Q"  NxFEFE W `  x > 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458??   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" # $ % & ' ( ) * + , - . / 0 1 2 3 4 5 6 7 8 9 : ; < = > ? @ A B C D E F G H I J K L M N O P Q R S T U V W X Y Z [ \ ] ^ _ ` a b c d e f g h i j k l m n o r  s t u v w x y z { | ~  $ ( @ x  c $%0  % ^   61?L  8 T0 0T   fh%$C$C1?   |JHigh relationship K Medium relationship m Low RelationshipN? 2f  6  f  6      `%$C$C1? T   ] Target ValuesB  T Do?  0 B  Z Do?  0B  T Do? /B  T Do? 0 *  # j    BChDEF o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E|| h@ E B  T Do?  :  B`( ? vV P  < Light weight   B( ? p   ; Easy to use   B ( ? p   8Reliable ,  Z ($C$C1? v DWhat the customer desires ( wall )# 2#  Bx(1? #   @Aluminum Parts  B(1? %  < Auto Focus    B(1? /  ? Auto Exposure        BChDE@F  o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E|| XD0( (PHxPH(88h @     ZB  s *D   ZB  s *D   `  03  ZB  s *D 00  - Zl%$C$C31? v  uCustomer Requirements&P . B,%1?   UCustomer Importance&  FZB  s *D @@ ZB  s *D P P ZB  s *D   ZB  s *D   H  0}a ?  C `" 0 $(   R   s *3P0 0 R   s *0 0 x   c $!%0  %     fP%$C$C1? [  JHigh relationship K Medium relationship m Low RelationshipNA 2 %  ZV%$C$C3o?v  uCustomer Requirements&P &  BJ%o?  UCustomer Importance&  F    `T~%$C$Co? T  ] Target ValuesF  0   E## B   T Do? 0 B   T Do? 0B   T Do?/B   T Do?0 *   # j    BChDEF o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||h@ E B   T Do? :   N0% o?4 v.  < Light weight    NL% o? p  ; Easy to use    N% o? p  8Reliable    B0%o?#   @Aluminum Parts   B%o? %  < Auto Focus     B%o? / ? Auto Exposure   N\% o? @  3   N% o?   1   N% o? v  2   <% o?  & T"Average customer importance rating# 2#        BCDE(F o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||  X0@`P @   X`X   0P LB   c $D P LB   c $D P LB   c $D P LB   c $D@@ LB   c $D0 0 0 LB   c $D  LB   c $D00 H   0}a ? A D P%(@Q(  (x ( c $#`  # 8 P0  (0P  (  f#$C$C1?   |JHigh relationship K Medium relationship m Low RelationshipN? 2` ( 03P0 0 f ( 6 0  -( Zl#$C$C3o?v  uCustomer Requirements&P .( B#o?  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The operator sounded uninterested I felt the operator rushed me. $(2  26   <ۘjJ *f   6jJP `   03P   0P 5  p0Standard Expectations Only one local number needs to be dialed I never get a busy signal I get a human being to answer my call quickly and he or she is pleasant and responsive to my problem A timely resolution to my problem is offered The operator is able to explain to me what I can expect to take place$(2 21Z  s *3  6jJ  U#Experience Enhancers The operator was sincerely concerned and apologetic about my problem He asked intelligent questions that allowed me to feel confident in his abilities The operator offered various times to have work done, to suit my schedule Ways to avoid future problems were suggested$ 2$H  0}a ? f̙33 ; *(  x  c $͘`   r  S HΘ`   H  0}a ? f̙33r r 0 : 0< GK ^ & 0d f Zi Bl o z 0o r t P S " 2(  N | 3v(@   mF"System 0-&TNPP & UUUUUUUUzaΩ-n_( UUUU-UU-UUza pR8tpXB2" ( 6UUGVUUbkUUprUUpza.8#s%\](( UUUUUUUUF3XE+IY*Ta JFIFddDucky<Adobed       Chart MSGraph.Chart.804Microsoft Graph 2000 Chart0FClip (MS_ClipArt_Gallery.20,Microsoft Clip Galleryz0F VISIO Visio.Drawing.40 VISIO0FDocument Word.Document.80.Microsoft Word Document0FClip (MS_ClipArt_Gallery.20,Microsoft Clip Gallery0FDocument Word.Document.80.Microsoft Word Document/ 0DArial NarrowF,F|dv 0|( 0"DSymbolarrowF,F|dv 0|( 0 DArialarrowF,F|dv 0|( 0"0DMonotype SortsF|dv 0|( 0@DBrush Script MTF|dv 0|( 0BPDWingdingspt MTF|dv 0|( 0`DTimes New RomanF|dv 0|( 0 ` .  @n?" dd@  @@``  !O     GP m :^<(8 ]_Q <aa:9W[h&Q::aQ+:&&S6_b^5]d[fZ3YhXiWjVN1UlT0SnR/QpPqOWN:V5SM(UK[HyG;OFUNE:M>a<3[ a:Z W6LT10/.W"#9 !%!- ,(+S'*)Y('&]%$]\4J4:}9;#A+   QRO0?82D(2$cNS'_ m 2$ͣ;Dݦ$ѦvQm 2$nT9tlT7X85\2$q%/#Ds2$ v.54m҉b$PknU+)2$`x5i2$8EJLSG|# Vr$$E2fY_,I!)iyb$΁r?|~-M2$\صN^v5Vm2$5g!>#&]=OA Yu$b$hrchawgԑ؄2$qK _t7Y#b$_N)q_gr%8N"$"ZAfkdK|b$c[ VXr$%{쉈-rqK~iir$T,><ȿ$Xijr$j ir$Ω-n_i<r$ pR8tpXB2" ir$.8#s%\](ic $ 33333@3, g42d2dv 0p>p0p <4dddd` 0,FXg4KdKdv 0pdp@ ppuʚ;2Nʚ;<4!d!d{ 0<4dddd{ 0:2___PPT9/ 0? -O =U=Operations Management Design of Goods and Services Chapter 5,><))' OutlineGlobal Company Profile: Regal Marine Goods and Services Selection Product Strategy Options Support Competitive Advantage Product Life Cycles Life Cycle and Strategy Product-by-value Analysis Generating New Products New Product Opportunities Importance of New Products vCP}PP5PPC}5Outline - continuedUProduct Development Product Development System Quality Function Deployment (QFD) Organizing for Product Development Manufacturability and Value Engineering Issues for Product Design Robust Design Modular Design Computer-Aided Design (CAD) Computer-Aided Manufacturing Virtual Reality Technology Value Analysis Environmentally Friendly DesignfPPZPOutline - continuedTime-Based Competition Purchase of Technology by Acquiring Firm Joint Ventures Alliances Defining the Product Make-or-buy Decisions Group Technology Documents for Production Service Design Documents for Service Application of Decision Trees to Product Design Transition to ProductionPCPP'P(PPIPA'(ILearning Objectives1When you complete this chapter, you should be able to : Identify or Define: Product life cycle Product development team Manufacturabililty and value engineering Robust design Time-based competition Modular design Computer aided design Value analysis Group technology Configuration managementb8PP^F8f<Learning Objectives continued  Regal MarineGlobal market 3-dimensional CAD reduced product development time reduced problems with tooling reduced problems in production Assembly line JIT6 ^ ^Humor in Product Design What is a Product?Need-satisfying offering of an organization Example P&G does not sell laundry detergent P&G sells the benefit of clean clothes Customers buy satisfaction, not parts May be a good or a serviceP, KA, KA Product Strategy OptionsProduct differentiation  'Generation of New Product Opportunities(P(Economic change< Product Components  Product Life Cycle$Introduction Growth Maturity Decline Product Life Cycle Introduction* P fbFine tuning research product development process modification and enhancement supplier development& W W Product Life Cycle Growth*PfProduct design begins to stabilize Effective forecasting of capacity becomes necessary Adding or enhancing capacity may be necessaryProduct Life Cycle Maturity*PfCompetitors now established High volume, innovative production may be needed Improved cost control, reduction in options, paring down of product lineProduct Life Cycle Decline*PfLUnless product makes a special contribution, must plan to terminate offering+Product Life Cycle, Sales, Cost, and Profit,Z, !Percent of Sales From New Product"!$ (Products in Various Stages of Life Cycle)F)   #Product-by-Value AnalysisLists products in descending order of their individual dollar contribution to the firm. Helps management evaluate alternative strategies.Product Development StagesvIdea generation Assessment of firm s ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market Introduction to Market Evaluation8:F )FPI# =Quality Function DeploymentIdentify customer wants Identify how the good/service will satisfy customer wants Relate customer wants to product hows Identify relationships between the firm s hows Develop importance ratings Evaluate competing products3 > +8!J\House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements]Z] Idea Generation StageProvides basis for entry into market Sources of ideas Market need (60-80%); engineering & operations (20%); technology; competitors; inventions; employees Follows from marketing strategy Identifies, defines, & selects best market opportunitiesL6e 96e 9Customer Requirements Stage,Identifies & positions key product benefits Stated in core benefits proposition (CBP) Example: Long lasting with more power (Sears Die Hard Battery)F,k 3k gIdentifies detailed list of product attributes desired by customer Focus groups or 1-on-1 interviews JD 0Z*# 0Z D#Functional Specification StageDefines product in terms of how the product would meet desired attributes Identifies product s engineering characteristics Example: printer noise (dB) Prioritizes engineering characteristics May rate product compared to competitors R{C{WProduct Specification StageDetermines how product will be made Gives product s physical specifications Example: Dimensions, material etc. Defined by engineering drawing Done often on computer Computer-Aided Design (CAD)L$7L"7 @Quality Function DeploymentPProduct design process using cross-functional teams Marketing, engineering, manufacturing Translates customer preferences into specific product characteristics Involves creating 4 tabular  Matrices or  Houses Breakdown product design into increasing levels of detailL5&y:5&y:CHouse of Quality ExampleYou ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality."KHouse of Quality ExampleEHouse of Quality ExampleFHouse of Quality ExampleGHouse of Quality ExampleHHouse of Quality ExampleIHouse of Quality Example-L"Organizing for Product DevelopmentHistorically  distinct departments Duties and responsibilities are defined Difficult to foster forward thinking Today  team approach Representatives from all disciplines or functions Concurrent engineering  cross functional teamL$Ma$Ma(Manufacturability and Value Engineering)P)Benefits: reduced complexity of products additional standardization of products improved functional aspects of product improved job design and job safety improved maintainability of the product robust design&  1Cost Reduction of a Bracket via Value Engineering2P2Issues for Product DevelopmentxRobust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design Robust DesignkProduct is designed so that small variations in production or assembly do not adversely affect the product Modular DesigncProducts designed in easily segmented components. Adds flexibility to both production and marketing Computer Aided Design (CAD)Designing products at a computer terminal or work station Design engineer develops rough sketch of product Uses computer to draw product Often used with CAMD<R<Q!Benefits of CAD/CAMShorter design time Database availability New capabilities Example: Focus more on product ideas Improved product quality Reduced production costs6<%2<%2.MExtensions of CADDesign for Manufacturing and Assembly (DFMA) 3-D Object Modeling CAD/CAM  CAD info is translated into machine control instructions (CAM)0NVirtual RealityComputer technology used to develop an interactive, 3-D model of a product. Especially helpful in design of layouts (factory, store, home, office)"Value AnalysisFocuses on design improvement during production Seeks improvements leading either to a better product or a product which can be more economically produced. Environmentally Friendly DesignsBenefits Safe and environmentally sound products Minimum raw material and energy waste Product differentiation Environmental liability reduction Cost-effective compliance with environmental regulations Recognition as good corporate citizen&   >* Green ManufacturingMake products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less materialTime-based CompetitionProduct life cycles are becoming shorter. \Faster developers of new products gain on slower developers and obtain a competitive advantage0+c*c1OProduct Development Continuum$Product DocumentsEngineering drawing Shows dimensions, tolerances, & materials Shows codes for Group Technology Bill of Material Lists components, quantities & where used Shows product structurepKB:fB% Monterey Jack(a) U.S. grade AA. Monterey cheese shall conform to the following requirements: (1)Flavor. Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feed flavor. (2)Body and texture. A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes (3)Color. Shall have a natural, uniform, bright and attractive appearance. (4)Finish and appearance - bandaged and paraffin-dipped. The rind shall be sound, firm, and smooth providing a good protection to the cheeseRF> x C8V&Engineering Drawing Example '8Engineering Drawings - Show Dimensions, Tolerances, etc.9P9(Bill of Material Example 2P  *Make-or-Buy DecisionsDecide whether or not you want (or need) to produce an item May be able to purchase the item as a  standard item from another manufacturer+ Group Technology Characteristics!P!Parts grouped into families Similar, more standardized parts Uses coding system Describes processing & physical characteristics Part families produced in manufacturing cells Mini-assembly linest!0/!0/ ,Group Technology Code Example -1Group Technology Schemes Enable Grouping of Parts.Group Technology BenefitsImproved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenance/Production Documents6Assembly Drawing Assembly chart Route sheet Work order0Assembly DrawingShows exploded view of product1#Assembly Chart for A Tuna Sandwich$P$ 2#Assembly Drawing and Assembly Chart$P$3 Route SheetLists all operations4 Work Order 5Engineering Change Notice (ECN) P JA correction or modification of an engineering drawing or bill of material6Configuration Management2A system by which a product s planned and changing components are accurately identified and for which control and accountability of change are maintained72Service Design - Nature of Customer Participation81Improving Customer Relations at a Drive-up Window2Z2`Be especially discreet when talking with customer through the microphone Provide written instructions for customers who must fill out forms you provide Mark lines to be completed or attach a note with instructions Always say  please and  thank you Establish eye contact with the customer if the distance allows it If the transaction requires that the customer park the car and come into the lobby, apologize for the inconvenience.9%Moment-of-Truth at a Computer Company&F&:/Application of Decision Trees to Product DesignXParticularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes. Considerations: Include all possible alternatives and states of nature - including  doing nothing Enter payoffs at end of branch Approach determining expected values by  pruning tree 6;Transition to ProductionFirst issue: knowing when to move to production! Second: must view product development as evolutionary, not responsibility of single individual/department Third: expect to need a trial production period to work the bugs out Fourth: recognize that responsibility must also transition/      !"#$%&'(*+,-./0123456789:; <=@BCDE F#G$H%I&J/L  kc.9 (  x  c $`      `txaxa1?,  <Growth   BCDE Fp?@/}    `lxaxa1?? =DeclinedB   <8c?;;R dB   <8c? ] dB   <8c?\ dL M q  #  X| `B  0fp?q q `B  0fp?  `B  0fp?L L `B  0fp? `B  0fp?( ( `B  0fp? `B  0fp?  `B  0fp?q q `B  0fp?  `B  0fp?M M    `xaxa1? j  4Time3L   #   `B  0p?`B  0p?~~`B  0p?FF`B  0p?`B  0p?`B   0p?  `B ! 0p?i i `B " 0p?2 2 `B # 0p?  `B $ 0p?   % Zxaxa1? 5Sales   MZ  &#  KxJ ,$D0 ' Txaxa1?  M  #Virtual Realityf2 ( 61?I Z  *  `xaxa1?  ! Roller Bladesd2 + <1?kX    \  ,#  =,$D0 - Zxaxa1? \  Jet Skif2 . 61?.   S`  /# O ,$D0f2 0 61?)S 1 T xaxa1?\`   Boeing 727 3 Zxaxa1? B Introduction  6  `|xaxa1?5 p >Maturity  7  BLCHDEFfp?%%H=<|.- {|+/ w-C" m4 P^ ] 0< l pL@KL@OH H  0}a ? f̙33 G PH@(  Hx H c $͕`Z   [8   H ` H 0` P0 Z H s *3P` 0  H  f$C$C1?   ~JHigh relationship K Medium relationship m Low RelationshipN@ 2Z H s *3P` 0 f H 6P f H 6P f H 6P0  +H Z$C$Cf1?o qCustomer Requirements"P ,H B1? h SCustomer Importance$  F H  `XI$C$C1?p Q  [ Target Values@ _ V H_ V~B H N Do?_ HB H T4 Do?,~B H N Do?w V~B H N Do? b~> H s     BChDEF o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||h@ k M~B H N Do?k VZB H s *DP f H 6  f H 6 p ZB H s *D` P` `B H 0Dol Pl ZB H s *DpPp H H 0}a ?  B p $ ( @ x  c $q0  q ^   61?L  8 T0 0T   f4$I$C$C1?  ? ~JHigh relationship K Medium relationship m Low RelationshipN@ 2f  6  f  6      `1I$C$C1? T   ] Target ValuesB  T Do?  0 B  Z Do?  0B  T Do? /B  T Do? 0 *  # j    BChDEF o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E|| h@ E B  T Do?  :  B;I ? vV P  < Light weight   B|.I ? p   ; Easy to use   Bd@I ? p   8Reliable ,  ZpDI$C$C1? v DWhat the customer desires ( wall )# 2#  B4MI1? #   @Aluminum Parts  B8PI1? %  < Auto Focus    BSI1? /  ? Auto Exposure        BChDE@F  o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E|| XD0( (PHxPH(88h @     ZB  s *D   ZB  s *D   `  03  ZB  s *D 00  - Zl[I$C$C31? v  uCustomer Requirements&P . BaI1?   UCustomer Importance&  FZB  s *D @@ ZB  s *D P P ZB  s *D   ZB  s *D   H  0}a ?  C " 0 $(   R   s *3P0 0 R   s *0 0 x   c $\I0  I     fI$C$C1? :  JHigh relationship K Medium relationship m Low RelationshipNA 2 %  ZI$C$C3o?v  uCustomer Requirements&P &  BIo?  UCustomer Importance&  F    `\I$C$Co? T  ] Target ValuesF  0   E## B   T Do? 0 B   T Do? 0B   T Do?/B   T Do?0 *   # j    BChDEF o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||h@ E B   T Do? :   NpI o?4 v.  < Light weight    NI o? p  ; Easy to use    NTI o? p  8Reliable    BIo?#   @Aluminum Parts   B8Io? %  < Auto Focus     BIo? / ? Auto Exposure   NI o? @  3   NI o?   1   NI o? v  2   <I o?  & T"Average customer importance rating# 2#        BCDE(F o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||  X0@`P @   X`X   0P LB   c $D P LB   c $D P LB   c $D P LB   c $D@@ LB   c $D0 0 0 LB   c $D  LB   c $D00 H   0}a ? C D %(@S(  (x ( c $PI`  I 8 P0  (0P  (  fI$C$C1? ?  ~JHigh relationship K Medium relationship m Low RelationshipN@ 2` ( 03P0 0 f ( 6 0  -( ZT$C$C3o?v  uCustomer Requirements&P .( BIo?  UCustomer Importance&  F~B ( N Do? 0 ~B ( N Do? 0~B ( N Do?/~B ( N Do?0 * ( s     BChDEF o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||h@ E ~B ( N Do? : ( NI o?v4 .  < Light weight  ( NI o?p   ; Easy to use  ( NI o?p   8Reliable  ( B$Ro?#   @Aluminum Parts ( BRo?%  < Auto Focus   ( BRo?/ ? Auto Exposure ( N R o? 3  -  6K ( NR o?&  !  6K ( NR o?& !  6K ( NR o?n i  6K ( NTR o?n i  6K ( NR o? :  3 ( NR o? |  2 ( N R o?   1 ( Z#R$C$C1?@A  Relationship between customer attributes & engineering characteristics ( rooms )Q 2Q (      BCDE(F o 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E|| ( P@`8@HX @   @ f ( 6P ZB ( s *DP  ZB ( s *DP  ZB ( s *D@@ ZB ( s *D  ZB ( s *D  ZB ( s *D00 H ( 0}a ? 5  E +00 I(  0R 0 s *30 0 X 0 00 0 x 0 c $MR`  R  0  fNR$C$C1? ? ~JHigh relationship K Medium relationship m Low RelationshipN@ 2 -0 Z\\R$C$C3o?v  uCustomer Requirements&P .0 B`Ro?  UCustomer Importance&  F 0  `kR$C$Co? 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Helps management evaluate alternative strategies.Product Development StagesvIdea generation Assessment of firm s ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market Introduction to Market Evaluation8:F )FPI# =Quality Function DeploymentIdentify customer wants Identify how the good/service will satisfy customer wants Relate customer wants to product hows Identify relationships between the firm s hows Develop importance ratings Evaluate competing products3 > +8!J\House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements]Z] Idea Generation StageProvides basis for entry into market Sources of ideas Market need (60-80%); engineering & operations (20%); technology; competitors; inventions; employees Follows from marketing strategy Identifies, defines, & selects best market opportunitiesL6e 96e 9Customer Requirements Stage,Identifies & positions key product benefits Stated in core benefits proposition (CBP) Example: Long lasting with more power (Sears Die Hard Battery)F,k 3k gIdentifies detailed list of product attributes desired by customer Focus groups or 1-on-1 interviews JD 0Z*# 0Z D#Functional Specification StageDefines product in terms of how the product would meet desired attributes Identifies product s engineering characteristics Example: printer noise (dB) Prioritizes engineering characteristics May rate product compared to competitors R{C{WProduct Specification StageDetermines how product will be made Gives product s physical specifications Example: Dimensions, material etc. Defined by engineering drawing Done often on computer Computer-Aided Design (CAD)L$7L"7 @Quality Function DeploymentPProduct design process using cross-functional teams Marketing, engineering, manufacturing Translates customer preferences into specific product characteristics Involves creating 4 tabular  Matrices or  Houses Breakdown product design into increasing levels of detailL5&y:5&y:CHouse of Quality ExampleYou ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality."KHouse of Quality ExampleEHouse of Quality ExampleFHouse of Quality ExampleGHouse of Quality ExampleHHouse of Quality ExampleIHouse of Quality Example-L"Organizing for Product DevelopmentHistorically  distinct departments Duties and responsibilities are defined Difficult to foster forward thinking Today  team approach Representatives from all disciplines or functions Concurrent engineering  cross functional teamL$Ma$Ma(Manufacturability and Value Engineering)P)Benefits: reduced complexity of products additional standardization of products improved functional aspects of product improved job design and job safety improved maintainability of the product robust design&  1Cost Reduction of a Bracket via Value Engineering2P2Issues for Product DevelopmentxRobust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design Robust DesignkProduct is designed so that small variations in production or assembly do not adversely affect the product Modular DesigncProducts designed in easily segmented components. Adds flexibility to both production and marketing Computer Aided Design (CAD)Designing products at a computer terminal or work station Design engineer develops rough sketch of product Uses computer to draw product Often used with CAMD<R<Q!Benefits of CAD/CAMShorter design time Database availability New capabilities Example: Focus more on product ideas Improved product quality Reduced production costs6<%2<%2.MExtensions of CADDesign for Manufacturing and Assembly (DFMA) 3-D Object Modeling CAD/CAM  CAD info is translated into machine control instructions (CAM)0NVirtual RealityComputer technology used to develop an interactive, 3-D model of a product. Especially helpful in design of layouts (factory, store, home, office)"Value AnalysisFocuses on design improvement during production Seeks improvements leading either to a better product or a product which can be more economically produced. Environmentally Friendly DesignsBenefits Safe and environmentally sound products Minimum raw material and energy waste Product differentiation Environmental liability reduction Cost-effective compliance with environmental regulations Recognition as good corporate citizen&   >* Green ManufacturingMake products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less materialTime-based CompetitionProduct life cycles are becoming shorter. \Faster developers of new products gain on slower developers and obtain a competitive advantage0+c*c1OProduct Development Continuum$Product DocumentsEngineering drawing Shows dimensions, tolerances, & materials Shows codes for Group Technology Bill of Material Lists components, quantities & where used Shows product structurepKB:fB% Monterey Jack(a) U.S. grade AA. Monterey cheese shall conform to the following requirements: (1)Flavor. Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feed flavor. (2)Body and texture. A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes (3)Color. Shall have a natural, uniform, bright and attractive appearance. (4)Finish and appearance - bandaged and paraffin-dipped. The rind shall be sound, firm, and smooth providing a good protection to the cheeseRF> x C8V&Engineering Drawing Example '8Engineering Drawings - Show Dimensions, Tolerances, etc.9P9(Bill of Material Example 2P  *Make-or-Buy DecisionsDecide whether or not you want (or need) to produce an item May be able to purchase the item as a  standard item from another manufacturer+ Group Technology Characteristics!P!Parts grouped into families Similar, more standardized parts Uses coding system Describes processing & physical characteristics Part families produced in manufacturing cells Mini-assembly linest!0/!0/ ,Group Technology Code Example -1Group Technology Schemes Enable Grouping of Parts.Group Technology BenefitsImproved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenance/Production Documents6Assembly Drawing Assembly chart Route sheet Work order0Assembly DrawingShows exploded view of product1#Assembly Chart for A Tuna Sandwich$P$ 2#Assembly Drawing and Assembly Chart$P$3 Route SheetLists all operations4 Work Order 5Engineering Change Notice (ECN) P JA correction or modification of an engineering drawing or bill of material6Configuration Management2A system by which a product s planned and changing components are accurately identified and for which control and accountability of change are maintained72Service Design - Nature of Customer Participation81Improving Customer Relations at a Drive-up Window2Z2`Be especially discreet when talking with customer through the microphone Provide written instructions for customers who must fill out forms you provide Mark lines to be completed or attach a note with instructions Always say  please and  thank you Establish eye contact with the customer if the distance allows it If the transaction requires that the customer park the car and come into the lobby, apologize for the inconvenience.9%Moment-of-Truth at a Computer Company&F&:/Application of Decision Trees to Product DesignXParticularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes. Considerations: Include all possible alternatives and states of nature - including  doing nothing Enter payoffs at end of branch Approach determining expected values by  pruning tree 6;Transition to ProductionFirst issue: knowing when to move to production! Second: must view product development as evolutionary, not responsibility of single individual/department Third: expect to need a trial production period to work the bugs out Fourth: recognize that responsibility must also transition/      !"#$%&'(*+,-./0123456789:; <=@BCDE F#G$H%I&J/Lr[ C 7 h< 5 v(@   m Chart MSGraph.Chart.804Microsoft Graph 2000 Chart0Clip (MS_ClipArt_Gallery.20,Microsoft Clip Galleryz0 VISIO Visio.Drawing.40 VISIO0)Document Word.Document.80.Microsoft Word Document0BClip (MS_ClipArt_Gallery.20,Microsoft Clip Gallery0BDocument Word.Document.80.Microsoft Word Document/ 0DArial NarrowBL8Bv 0( 0h"DSymbolarrowBL8Bv 0( 0h DArialarrowBL8Bv 0( 0h"0DMonotype Sorts8Bv 0( 0h@DBrush Script MT8Bv 0( 0hBPDWingdingspt MT8Bv 0( 0h`DTimes New Roman8Bv 0( 0h ` .  @n?" dd@  @@``  !O     GP m C^<8 y zs <||**CDv xh sCC|s"\Ct5 R 6 7 VWX9NZ:;N_`a:-5t(ceh ;i!U":k ,u v.w7x/x0/ v|,9GV;v^D]\%XZYXW !VG'"S J!w yOy #lDB#m" '( ) g+r0*2YU>D(2$cNS'_ m C2$ͣ;Dݦ$ѦvQm C2$nT9tlT7X85\C2$q%/#DsC2$ v.54m҉Cb$PknU+)C2$`x5iC2$8EJLSG|# VCr$$E2fY_,I!)iyCb$΁r?|~-MC2$\صN^v5VmC2$5g!>#&]=OA YuC$Cb$hrchawgԑ؄C2$qK _t7Y#Cb$_N)q_gr%8NC"$"ZAfkdK|Cb$c[ VXCr$%{쉈-rqK~iiCr$T,><ȿ$XijCr$j iCr$Ω-n_i<Cr$ pR8tpXB2" iCr$.8#s%\](iCc $ 33333@3, g42d2dv 0Tp0p <4dddd` 0L$BXg4KdKdv 0dp@ ppuʚ;2Nʚ;<4!d!d{ 0<4dddd{ 0:2___PPT9/ 0? -O =U=Operations Management Design of Goods and Services Chapter 5,><))' OutlineGLOBAL COMPANY PROFILE: REGAL MARINE GOODS AND SERVICES SELECTION Product Strategy Options Support Competitive Advantage Product Life Cycles Life Cycle and Strategy Product-by-value Analysis GENERATING NEW PRODUCTS New Product Opportunities Importance of New Products CP}PP5PPZC}3Outline - continuedUPRODUCT DEVELOPMENT Product Development System Quality Function Deployment (QFD) Organizing for Product Development Manufacturability and Value Engineering ISSUES FOR PRODUCT DESIGN Robust Design Modular Design Computer-Aided Design (CAD) Computer-Aided Manufacturing Virtual Reality Technology Value Analysis Environmentally Friendly Design`PFFFOutline - continuedTime-Based Competition Purchase of Technology by Acquiring Firm Joint Ventures Alliances Defining the Product Make-or-buy Decisions Group Technology DOCUMENTS FOR PRODUCTION SERVICE DESIGN Documents for Service Application of Decision Trees to Product Design Transition to ProductionPCFF'F(FFIFC'(ILearning Objectives1When you complete this chapter, you should be able to : Identify or Define: Product life cycle Product development team Manufacturabililty and value engineering Robust design Time-based competition Modular design Computer aided design Value analysis Group technology Configuration management`8PP^F8f<Learning Objectives - Continued  Regal MarineGlobal market 3-dimensional CAD reduced product development time reduced problems with tooling reduced problems in production Assembly line JIT6 ^ ^Humor in Product Design What is a Product?Need-satisfying offering of an organization Example P&G does not sell laundry detergent P&G sells the benefit of clean clothes Customers buy satisfaction, not parts May be a good or a serviceP, KA, KA Product Strategy OptionsProduct differentiation  'Generation of New Product Opportunities(P(Economic change< Product Components  Product Life Cycle$Introduction Growth Maturity Decline Product Life Cycle Introduction* P fbFine tuning research product development process modification and enhancement supplier development& W W Product Life Cycle Growth*PfProduct design begins to stabilize Effective forecasting of capacity becomes necessary Adding or enhancing capacity may be necessaryProduct Life Cycle Maturity*PfCompetitors now established High volume, innovative production may be needed Improved cost control, reduction in options, paring down of product lineProduct Life Cycle Decline*PfLUnless product makes a special contribution, must plan to terminate offering+Product Life Cycle, Sales, Cost, and Profit,Z, !Percent of Sales From New Product"!$ (Products in Various Stages of Life Cycle)F)   #Product-by-Value AnalysisLists products in descending order of their individual dollar contribution to the firm. Helps management evaluate alternative strategies.Product Development StagesvIdea generation Assessment of firm s ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market Introduction to Market Evaluation8:F )FPI# =Quality Function DeploymentIdentify customer wants Identify how the good/service will satisfy customer wants Relate customer wants to product hows Identify relationships between the firm s hows Develop importance ratings Evaluate competing products3 > +8!J\House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements]Z] Idea Generation StageProvides basis for entry into market Sources of ideas Market need (60-80%); engineering & operations (20%); technology; competitors; inventions; employees Follows from marketing strategy Identifies, defines, & selects best market opportunitiesL6e 96e 9Customer Requirements Stage,Identifies & positions key product benefits Stated in core benefits proposition (CBP) Example: Long lasting with more power (Sears Die Hard Battery)F,k 3k gIdentifies detailed list of product attributes desired by customer Focus groups or 1-on-1 interviews JD 0Z*# 0Z D#Functional Specification StageDefines product in terms of how the product would meet desired attributes Identifies product s engineering characteristics Example: printer noise (dB) Prioritizes engineering characteristics May rate product compared to competitors R{C{WProduct Specification StageDetermines how product will be made Gives product s physical specifications Example: Dimensions, material etc. Defined by engineering drawing Done often on computer Computer-Aided Design (CAD)L$7L"7 @Quality Function DeploymentPProduct design process using cross-functional teams Marketing, engineering, manufacturing Translates customer preferences into specific product characteristics Involves creating 4 tabular  Matrices or  Houses Breakdown product design into increasing levels of detailL5&y:5&y:CHouse of Quality ExampleYou ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality."KHouse of Quality ExampleEHouse of Quality ExampleFHouse of Quality ExampleGHouse of Quality ExampleHHouse of Quality ExampleIHouse of Quality Example-L"Organizing for Product DevelopmentHistorically  distinct departments Duties and responsibilities are defined Difficult to foster forward thinking Today  team approach Representatives from all disciplines or functions Concurrent engineering  cross functional teamL$Ma$Ma(Manufacturability and Value Engineering)P)Benefits: reduced complexity of products additional standardization of products improved functional aspects of product improved job design and job safety improved maintainability of the product robust design&  1Cost Reduction of a Bracket via Value Engineering2P2Issues for Product DevelopmentxRobust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design Robust DesignkProduct is designed so that small variations in production or assembly do not adversely affect the product Modular DesigncProducts designed in easily segmented components. Adds flexibility to both production and marketing Computer Aided Design (CAD)Designing products at a computer terminal or work station Design engineer develops rough sketch of product Uses computer to draw product Often used with CAMD<R<Q!Benefits of CAD/CAMShorter design time Database availability New capabilities Example: Focus more on product ideas Improved product quality Reduced production costs6<%2<%2.MExtensions of CADDesign for Manufacturing and Assembly (DFMA) 3-D Object Modeling CAD/CAM  CAD info is translated into machine control instructions (CAM)0NVirtual RealityComputer technology used to develop an interactive, 3-D model of a product. Especially helpful in design of layouts (factory, store, home, office)"Value AnalysisFocuses on design improvement during production Seeks improvements leading either to a better product or a product which can be more economically produced. Environmentally Friendly DesignsBenefits Safe and environmentally sound products Minimum raw material and energy waste Product differentiation Environmental liability reduction Cost-effective compliance with environmental regulations Recognition as good corporate citizen&   >* Green ManufacturingMake products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less materialTime-based CompetitionProduct life cycles are becoming shorter. \Faster developers of new products gain on slower developers and obtain a competitive advantage0+c*c1OProduct Development Continuum$Product DocumentsEngineering drawing Shows dimensions, tolerances, & materials Shows codes for Group Technology Bill of Material Lists components, quantities & where used Shows product structurepKB:fB% Monterey Jack(a) U.S. grade AA. Monterey cheese shall conform to the following requirements: (1)Flavor. Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feed flavor. (2)Body and texture. A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes (3)Color. Sh all have a natural, uniform, bright and attractive appearance. (4)Finish and appearance - bandaged and paraffin-dipped. The rind shall be sound, firm, and smooth providing a good protection to the cheeseRF> x C8V&Engineering Drawing Example '8Engineering Drawings - Show Dimensions, Tolerances, etc.9P9(Bill of Material Example 2P  *Make-or-Buy DecisionsDecide whether or not you want (or need) to produce an item May be able to purchase the item as a  standard item from another manufacturer+ Group Technology Characteristics!P!Parts grouped into families Similar, more standardized parts Uses coding system Describes processing & physical characteristics Part families produced in manufacturing cells Mini-assembly linest!0/!0/ ,Group Technology Code Example -1Group Technology Schemes Enable Grouping of Parts.Group Technology BenefitsImproved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenance/Production Documents6Assembly Drawing Assembly chart Route sheet Work order0Assembly DrawingShows exploded view of product1#Assembly Chart for A Tuna Sandwich$P$ 2#Assembly Drawing and Assembly Chart$P$3 Route SheetLists all operations4 Work Order 5Engineering Change Notice (ECN) P JA correction or modification of an engineering drawing or bill of material6Configuration Management2A system by which a product s planned and changing components are accurately identified and for which control and accountability of change are maintained72Service Design - Nature of Customer Participation81Improving Customer Relations at a Drive-up Window2Z2`Be especially discreet when talking with customer through the microphone Provide written instructions for customers who must fill out forms you provide Mark lines to be completed or attach a note with instructions Always say  please and  thank you Establish eye contact with the customer if the distance allows it If the transaction requires that the customer park the car and come into the lobby, apologize for the inconvenience.9%Moment-of-Truth at a Computer Company&F&:/Application of Decision Trees to Product DesignXParticularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes. Considerations: Include all possible alternatives and states of nature - including  doing nothing Enter payoffs at end of branch Approach determining expected values by  pruning tree 6;Transition to ProductionFirst issue: knowing when to move to production! Second: must view product development as evolutionary, not responsibility of single individual/department Third: expect to need a trial production period to work the bugs out Fourth: recognize that responsibility must also transition/      !"#$%&'(*+,-./0123456789:; <=@BCDE F#G$H%I&J/L  `0( X: x  c $ `    x  c $ M    H  0}a ? f̙33  *(  x  c $: `    r  S ; 0    H  0}a ? f̙33  *(  x  c $? `    r  S xA C    H  0}a ? f̙33  0(  x  c $B `    x  c $$C ]   H  0}a ? f̙33p <  (    # lH?B@4&yC%%1E2w,1Hv !0J"SMONQR%=&B#&m "#sg$@0-w;uAD(2$cNS'_ m 2$ͣ;Dݦ$ѦvQm 2$nT9tlT7X85\2$q%/#Ds2$ v.54m҉b$PknU+)2$`x5i2$8EJLSG|# Vr$$E2fY_,I!)iyb$΁r?|~-M2$\صN^v5Vm2$5g!>#&]=OA Yu$b$hrchawgԑ؄2$qK _t7Y#b$_N)q_gr%8N"$"ZAfkdK|b$c[ VXr$%{쉈-rqK~iir$T,><ȿ$Xijr$j ir$Ω-n_i<r$ pR8tpXB2" ir$.8#s%\](ic $ 33333@3, g42d2dv 0Tp0p <4dddd` 0Ld ZXg4KdKdv 0dp@ ppuʚ;2Nʚ;<4!d!d{ 0<4dddd{ 0:2___PPT9/ 0? -O =U=Operations Management Design of Goods and Services Chapter 5,><))' OutlineGLOBAL COMPANY PROFILE: REGAL MARINE GOODS AND SERVICES SELECTION Product Strategy Options Support Competitive Advantage Product Life Cycles Life Cycle and Strategy Product-by-value Analysis GENERATING NEW PRODUCTS New Product Opportunities Importance of New Products CP}PP5PPZC}3Outline - continuedUPRODUCT DEVELOPMENT Product Development System Quality Function Deployment (QFD) Organizing for Product Development Manufacturability and Value Engineering ISSUES FOR PRODUCT DESIGN Robust Design Modular Design Computer-Aided Design (CAD) Computer-Aided Manufacturing Virtual Reality Technology Value Analysis Environmentally Friendly Design\PFFFOutline - continuedTime-Based Competition Purchase of Technology by Acquiring Firm Joint Ventures Alliances Defining the Product Make-or-buy Decisions Group Technology DOCUMENTS FOR PRODUCTION SERVICE DESIGN Documents for Service Application of Decision Trees to Product Design Transition to ProductionPCFF'F(FFIFC'(ILearning Objectives1When you complete this chapter, you should be able to : Identify or Define: Product life cycle Product development team Manufacturabililty and value engineering Robust design Time-based competition Modular design Computer aided design Value analysis Group technology Configuration managementb8PP^F8f<Learning Objectives - Continued  Regal MarineGlobal market 3-dimensional CAD reduced product development time reduced problems with tooling reduced problems in production Assembly line JIT6 ^ ^Humor in Product Design What is a Product?Need-satisfying offering of an organization Example P&G does not sell laundry detergent P&G sells the benefit of clean clothes Customers buy satisfaction, not parts May be a good or a serviceP, KA, KA Product Strategy OptionsProduct differentiation  'Generation of New Product Opportunities(P(Economic change< Product Components  Product Life Cycle$Introduction Growth Maturity Decline Product Life Cycle Introduction* P fbFine tuning research product development process modification and enhancement supplier development& W W Product Life Cycle Growth*PfProduct design begins to stabilize Effective forecasting of capacity becomes necessary Adding or enhancing capacity may be necessaryProduct Life Cycle Maturity*PfCompetitors now established High volume, innovative production may be needed Improved cost control, reduction in options, paring down of product lineProduct Life Cycle Decline*PfLUnless product makes a special contribution, must plan to terminate offering+Product Life Cycle, Sales, Cost, and Profit,Z, !Percent of Sales From New Product"!$ (Products in Various Stages of Life Cycle)F)   #Product-by-Value AnalysisLists products in descending order of their individual dollar contribution to the firm. Helps management evaluate alternative strategies.Product Development StagesvIdea generation Assessment of firm s ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market Introduction to Market Evaluation8:F )FPI# =Quality Function DeploymentIdentify customer wants Identify how the good/service will satisfy customer wants Relate customer wants to product hows Identify relationships between the firm s hows Develop importance ratings Evaluate competing products3 > +8!J\House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements]Z] Idea Generation StageProvides basis for entry into market Sources of ideas Market need (60-80%); engineering & operations (20%); technology; competitors; inventions; employees Follows from marketing strategy Identifies, defines, & selects best market opportunitiesL6e 96e 9Customer Requirements Stage,Identifies & positions key product benefits Stated in core benefits proposition (CBP) Example: Long lasting with more power (Sears Die Hard Battery)F,k 3k gIdentifies detailed list of product attributes desired by customer Focus groups or 1-on-1 interviews JD 0Z*# 0Z D#Functional Specification StageDefines product in terms of how the product would meet desired attributes Identifies product s engineering characteristics Example: printer noise (dB) Prioritizes engineering characteristics May rate product compared to competitors R{C{WProduct Specification StageDetermines how product will be made Gives product s physical specifications Example: Dimensions, material etc. Defined by engineering drawing Done often on computer Computer-Aided Design (CAD)L$7L"7 @Quality Function DeploymentPProduct design process using cross-functional teams Marketing, engineering, manufacturing Translates customer preferences into specific product characteristics Involves creating 4 tabular  Matrices or  Houses Breakdown product design into increasing levels of detailL5&y:5&y:CHouse of Quality ExampleYou ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality."KHouse of Quality ExampleEHouse of Quality ExampleFHouse of Quality ExampleGHouse of Quality ExampleHHouse of Quality ExampleIHouse of Quality Example-L"Organizing for Product DevelopmentHistorically  distinct departments Duties and responsibilities are defined Difficult to foster forward thinking Today  team approach Representatives from all disciplines or functions Concurrent engineering  cross functional teamL$Ma$Ma(Manufacturability and Value Engineering)P)Benefits: reduced complexity of products additional standardization of products improved functional aspects of product improved job design and job safety improved maintainability of the product robust design&  1Cost Reduction of a Bracket via Value Engineering2P2Issues for Product DevelopmentxRobust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design Robust DesignkProduct is designed so that small variations in production or assembly do not adversely affect the product Modular DesigncProducts designed in easily segmented components. Adds flexibility to both production and marketing Computer Aided Design (CAD)Designing products at a computer terminal or work station Design engineer develops rough sketch of product Uses computer to draw product Often used with CAMD<R<Q!Benefits of CAD/CAMShorter design time Database availability New capabilities Example: Focus more on product ideas Improved product quality Reduced production costs6<%2<%2.MExtensions of CADDesign for Manufacturing and Assembly (DFMA) 3-D Object Modeling CAD/CAM  CAD info is translated into machine control instructions (CAM)0NVirtual RealityComputer technology used to develop an interactive, 3-D model of a product. Especially helpful in design of layouts (factory, store, home, office)"Value AnalysisFocuses on design improvement during production Seeks improvements leading either to a better product or a product which can be more economically produced. Environmentally Friendly DesignsBenefits Safe and environmentally sound products Minimum raw material and energy waste Product differentiation Environmental liability reduction Cost-effective compliance with environmental regulations Recognition as good corporate citizen&   >* Green ManufacturingMake products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less materialTime-based CompetitionProduct life cycles are becoming shorter. \Faster developers of new products gain on slower developers and obtain a competitive advantage0+c*c1OProduct Development Continuum$Product DocumentsEngineering drawing Shows dimensions, tolerances, & materials Shows codes for Group Technology Bill of Material Lists components, quantities & where used Shows product structurepKB:fB% Monterey Jack(a) U.S. grade AA. Monterey cheese shall conform to the following requirements: (1)Flavor. Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feed flavor. (2)Body and texture. A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes (3)Color. Shall have a natural, uniform, bright and attractive appearance. (4)Finish and appearance - bandaged and paraffin-dipped. The rind shall be sound, firm, and smooth providing a good protection to the cheeseRF> x C8V&Engineering Drawing Example '8Engineering Drawings - Show Dimensions, Tolerances, etc.9P9(Bill of Material Example 2P  *Make-or-Buy DecisionsDecide whether or not you want (or need) to produce an item May be able to purchase the item as a  standard item from another manufacturer+ Group Technology Characteristics!P!Parts grouped into families Similar, more standardized parts Uses coding system Describes processing & physical characteristics Part families produced in manufacturing cells Mini-assembly linest!0/!0/ ,Group Technology Code Example -1Group Technology Schemes Enable Grouping of Parts.Group Technology BenefitsImproved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenance/Production Documents6Assembly Drawing Assembly chart Route sheet Work order0Assembly DrawingShows exploded view of product1#Assembly Chart for A Tuna Sandwich$P$ 2#Assembly Drawing and Assembly Chart$P$3 Route SheetLists all operations4 Work Order 5Engineering Change Notice (ECN) P JA correction or modification of an engineering drawing or bill of material6Configuration Management2A system by which a product s planned and changing components are accurately identified and for which control and accountability of change are maintained72Service Design - Nature of Customer Participation81Improving Customer Relations at a Drive-up Window2Z2`Be especially discreet when talking with customer through the microphone Provide written instructions for customers who must fill out forms you provide Mark lines to be completed or attach a note with instructions Always say  please and  thank you Establish eye contact with the customer if the distance allows it If the transaction requires that the customer park the car and come into the lobby, apologize for the inconvenience.9%Moment-of-Truth at a Computer Company&F&:/Application of Decision Trees to Product DesignXParticularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes. Considerations: Include all possible alternatives and states of nature - including  doing nothing Enter payoffs at end of branch Approach determining expected values by  pruning tree 6;Transition to ProductionFirst issue: knowing when to move to production! Second: must view product development as evolutionary, not responsibility of single individual/department Third: expect to need a trial production period to work the bugs out Fourth: recognize that responsibility must also transition/      !"#$%&'(*+,-./0123456789:; <=@BCDE F#G$H%I&J/L  0(  x  c $\`   x  c $,]  H  0}a ? f̙33r < " (    # lx#e#e @0     NFEFE    ,$ 0 When you complete this chapter, you should be able to: Explain: Alliances Concurrent engineering Product-by-value analysis Product documentationT7Z Q7fQH  0}a ? f̙33rS b4Z6 / 95_v(@   ml Chart MSGraph.Chart.804Microsoft Graph 2000 Chart0lClip (MS_ClipArt_Gallery.20,Microsoft Clip Galleryz0l VISIO Visio.Drawing.40 VISIO0Document Word.Document.80.Microsoft Word Document0Clip (MS_ClipArt_Gallery.20,Microsoft Clip Gallery0Document Word.Document.80.Microsoft Word Document/ 0DArial NarrowZ,x Z|dv 0|( 0"DSymbolarrowZ,x Z|dv 0|( 0 DArialarrowZ,x Z|dv 0|( 0"0DMonotype Sortsx Z|dv 0|( 0@DBrush Script MTx Z|dv 0|( 0BPDWingdingspt MTx Z|dv 0|( 0`DTimes New Romanx Z|dv 0|( 0 ` .  @n?" dd@  @@``  !O     GP m C^<8  D <||**C&B ChX CC|%CXXt     U 0W1GN2FE_7a:S8}(ce!h;i#UY:k.VuBw:C2CQ B7|<n0>H?B@4&yC%%1E2w,1Hv !0J"SMONQR%=&B#&m "#sg$@0-w;uAD(2$cNS'_ m 2$ͣ;Dݦ$ѦvQm 2$nT9tlT7X85\2$q%/#Ds2$ v.54m҉b$PknU+)2$`x5i2$8EJLSG|# Vr$$E2fY_,I!)iyb$΁r?|~-M2$\صN^v5Vm2$5g!>#&]=OA Yu$b$hrchawgԑ؄2$qK _t7Y#b$_N)q_gr%8N"$"ZAfkdK|b$c[ VXr$%{쉈-rqK~iir$T,><ȿ$Xijr$j ir$Ω-n_i<r$ pR8tpXB2" ir$.8#s%\](ic $ 33333@3, g42d2dv 0pp0p <4dddd` 0,d ZXg4KdKdv 0pdp@ ppuʚ;2Nʚ;<4!d!d{ 0<4dddd{ 0:2___PPT9/ 0? -O =U=Operations Management Design of Goods and Services Chapter 5,><))' OutlineGLOBAL COMPANY PROFILE: REGAL MARINE GOODS AND SERVICES SELECTION Product Strategy Options Support Competitive Advantage Product Life Cycles Life Cycle and Strategy Product-by-value Analysis GENERATING NEW PRODUCTS New Product Opportunities Importance of New Products CP}PP5PPZC}3Outline - continuedUPRODUCT DEVELOPMENT Product Development System Quality Function Deployment (QFD) Organizing for Product Development Manufacturability and Value Engineering ISSUES FOR PRODUCT DESIGN Robust Design Modular Design Computer-Aided Design (CAD) Computer-Aided Manufacturing Virtual Reality Technology Value Analysis Environmentally Friendly Design\PFFFOutline - continuedTime-Based Competition Purchase of Technology by Acquiring Firm Joint Ventures Alliances Defining the Product Make-or-buy Decisions Group Technology DOCUMENTS FOR PRODUCTION SERVICE DESIGN Documents for Service Application of Decision Trees to Product Design Transition to ProductionPCFF'F(FFIFC'(ILearning Objectives1When you complete this chapter, you should be able to : Identify or Define: Product life cycle Product development team Manufacturabililty and value engineering Robust design Time-based competition Modular design Computer aided design Value analysis Group technology Configuration managementb8PP^F8f<Learning Objectives - Continued  Regal MarineGlobal market 3-dimensional CAD reduced product development time reduced problems with tooling reduced problems in production Assembly line JIT6 ^ ^Humor in Product Design What is a Product?Need-satisfying offering of an organization Example P&G does not sell laundry detergent P&G sells the benefit of clean clothes Customers buy satisfaction, not parts May be a good or a serviceP, KA, KA Product Strategy OptionsProduct differentiation  'Generation of New Product Opportunities(P(Economic change< Product Components  Product Life Cycle$Introduction Growth Maturity Decline Product Life Cycle Introduction* P fbFine tuning research product development process modification and enhancement supplier development& W W Product Life Cycle Growth*PfProduct design begins to stabilize Effective forecasting of capacity becomes necessary Adding or enhancing capacity may be necessaryProduct Life Cycle Maturity*PfCompetitors now established High volume, innovative production may be needed Improved cost control, reduction in options, paring down of product lineProduct Life Cycle Decline*PfLUnless product makes a special contribution, must plan to terminate offering+Product Life Cycle, Sales, Cost, and Profit,Z, !Percent of Sales From New Product"!$ (Products in Various Stages of Life Cycle)F)   #Product-by-Value AnalysisLists products in descending order of their individual dollar contribution to the firm. Helps management evaluate alternative strategies.Product Development StagesvIdea generation Assessment of firm s ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market Introduction to Market Evaluation8:F )FPI# =Quality Function DeploymentIdentify customer wants Identify how the good/service will satisfy customer wants Relate customer wants to product hows Identify relationships between the firm s hows Develop importance ratings Evaluate competing products3 > +8!J\House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements]Z] Idea Generation StageProvides basis for entry into market Sources of ideas Market need (60-80%); engineering & operations (20%); technology; competitors; inventions; employees Follows from marketing strategy Identifies, defines, & selects best market opportunitiesL6e 96e 9Customer Requirements Stage,Identifies & positions key product benefits Stated in core benefits proposition (CBP) Example: Long lasting with more power (Sears Die Hard Battery)F,k 3k gIdentifies detailed list of product attributes desired by customer Focus groups or 1-on-1 interviews JD 0Z*# 0Z D#Functional Specification StageDefines product in terms of how the product would meet desired attributes Identifies product s engineering characteristics Example: printer noise (dB) Prioritizes engineering characteristics May rate product compared to competitors R{C{WProduct Specification StageDetermines how product will be made Gives product s physical specifications Example: Dimensions, material etc. Defined by engineering drawing Done often on computer Computer-Aided Design (CAD)L$7L"7 @Quality Function DeploymentPProduct design process using cross-functional teams Marketing, engineering, manufacturing Translates customer preferences into specific product characteristics Involves creating 4 tabular  Matrices or  Houses Breakdown product design into increasing levels of detailL5&y:5&y:CHouse of Quality ExampleYou ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality."KHouse of Quality ExampleEHouse of Quality ExampleFHouse of Quality ExampleGHouse of Quality ExampleHHouse of Quality ExampleIHouse of Quality Example-L"Organizing for Product DevelopmentHistorically  distinct departments Duties and responsibilities are defined Difficult to foster forward thinking Today  team approach Representatives from all disciplines or functions Concurrent engineering  cross functional teamL$Ma$Ma(Manufacturability and Value Engineering)P)Benefits: reduced complexity of products additional standardization of products improved functional aspects of product improved job design and job safety improved maintainability of the product robust design&  1Cost Reduction of a Bracket via Value Engineering2P2Issues for Product DevelopmentxRobust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design Robust DesignkProduct is designed so that small variations in production or assembly do not adversely affect the product Modular DesigncProducts designed in easily segmented components. Adds flexibility to both production and marketing Computer Aided Design (CAD)Designing products at a computer terminal or work station Design engineer develops rough sketch of product Uses computer to draw product Often used with CAMD<R<Q!Benefits of CAD/CAMShorter design time Database availability New capabilities Example: Focus more on product ideas Improved product quality Reduced production costs6<%2<%2.MExtensions of CADDesign for Manufacturing and Assembly (DFMA) 3-D Object Modeling CAD/CAM  CAD info is translated into machine control instructions (CAM)0NVirtual RealityComputer technology used to develop an interactive, 3-D model of a product. Especially helpful in design of layouts (factory, store, home, office)"Value AnalysisFocuses on design improvement during production Seeks improvements leading either to a better product or a product which can be more economically produced. Environmentally Friendly DesignsBenefits Safe and environmentally sound products Minimum raw material and energy waste Product differentiation Environmental liability reduction Cost-effective compliance with environmental regulations Recognition as good corporate citizen&   >* Green ManufacturingMake products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less materialTime-based CompetitionProduct life cycles are becoming shorter. \Faster developers of new products gain on slower developers and obtain a competitive advantage0+c*c1OProduct Development Continuum$Product DocumentsEngineering drawing Shows dimensions, tolerances, & materials Shows codes for Group Technology Bill of Material Lists components, quantities & where used Shows product structurepKB:fB% Monterey Jack(a) U.S. grade AA. Monterey cheese shall conform to the following requirements: (1)Flavor                        ! " # $ % & ' ( ) * + , - . / 0 1 2 3 4 5 6 7 8 9 : ; < = > ? @ A B C D E F G H I J K L M N O P Q R S T U V W X Y Z [ \ ] ^ _ ` a b c d e f g h i j k l m n o p q r s t u v w x y z { | } ~  . Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feed flavor. (2)Body and texture. A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes (3)Color. Shall have a natural, uniform, bright and attractive appearance. (4)Finish and appearance - bandaged and paraffin-dipped. The rind shall be sound, firm, and smooth providing a good protection to the cheeseRF> x C8V&Engineering Drawing Example '8Engineering Drawings - Show Dimensions, Tolerances, etc.9P9(Bill of Material Example 2P  *Make-or-Buy DecisionsDecide whether or not you want (or need) to produce an item May be able to purchase the item as a  standard item from another manufacturer+ Group Technology Characteristics!P!Parts grouped into families Similar, more standardized parts Uses coding system Describes processing & physical characteristics Part families produced in manufacturing cells Mini-assembly linest!0/!0/ ,Group Technology Code Example -1Group Technology Schemes Enable Grouping of Parts.Group Technology BenefitsImproved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenance/Production Documents6Assembly Drawing Assembly chart Route sheet Work order0Assembly DrawingShows exploded view of product1#Assembly Chart for A Tuna Sandwich$P$ 2#Assembly Drawing and Assembly Chart$P$3 Route SheetLists all operations4 Work Order 5Engineering Change Notice (ECN) P JA correction or modification of an engineering drawing or bill of material6Configuration Management2A system by which a product s planned and changing components are accurately identified and for which control and accountability of change are maintained72Service Design - Nature of Customer Participation81Improving Customer Relations at a Drive-up Window2Z2`Be especially discreet when talking with customer through the microphone Provide written instructions for customers who must fill out forms you provide Mark lines to be completed or attach a note with instructions Always say  please and  thank you Establish eye contact with the customer if the distance allows it If the transaction requires that the customer park the car and come into the lobby, apologize for the inconvenience.9%Moment-of-Truth at a Computer Company&F&:/Application of Decision Trees to Product DesignXParticularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes. Considerations: Include all possible alternatives and states of nature - including  doing nothing Enter payoffs at end of branch Approach determining expected values by  pruning tree 6;Transition to ProductionFirst issue: knowing when to move to production! 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-O =)V=Operations Management Design of Goods and Services Chapter 5,><))' OutlineGLOBAL COMPANY PROFILE: REGAL MARINE GOODS AND SERVICES SELECTION Product Strategy Options Support Competitive Advantage Product Life Cycles Life Cycle and Strategy Product-by-value Analysis GENERATING NEW PRODUCTS New Product Opportunities Importance of New Products CP}PP5PPZC}3Outline - continuedUPRODUCT DEVELOPMENT Product Development System Quality Function Deployment (QFD) Organizing for Product Development Manufacturability and Value Engineering ISSUES FOR PRODUCT DESIGN Robust Design Modular Design Computer-Aided Design (CAD) Computer-Aided Manufacturing Virtual Reality Technology Value Analysis Environmentally Friendly Design\PFFFOutline - continuedTime-Based Competition Purchase of Technology by Acquiring Firm Joint Ventures Alliances Defining the Product Make-or-buy Decisions Group Technology DOCUMENTS FOR PRODUCTION SERVICE DESIGN Documents for Service Application of Decision Trees to Product Design Transition to ProductionPCFF'F(FFIFC'(ILearning Objectives1When you complete this chapter, you should be able to : Identify or Define: Product life cycle Product development team Manufacturabililty and value engineering Robust design Time-based competition Modular design Computer aided design Value analysis Group technology Configuration managementb8PP^F8f<Learning Objectives - Continued  Regal MarineGlobal market 3-dimensional CAD reduced product development time reduced problems with tooling reduced problems in production Assembly line JIT6 ^ ^Humor in Product Design What is a Product?Need-satisfying offering of an organization Example P&G does not sell laundry detergent P&G sells the benefit of clean clothes Customers buy satisfaction, not parts May be a good or a serviceP, KA, KA Product Strategy OptionsProduct differentiation  'Generation of New Product Opportunities(P(Economic change< Product Components  Product Life Cycle$Introduction Growth Maturity Decline Product Life Cycle Introduction* P fbFine tuning research product development process modification and enhancement supplier development& W W Product Life Cycle Growth*PfProduct design begins to stabilize Effective forecasting of capacity becomes necessary Adding or enhancing capacity may be necessaryProduct Life Cycle Maturity*PfCompetitors now established High volume, innovative production may be needed Improved cost control, reduction in options, paring down of product lineProduct Life Cycle Decline*PfLUnless product makes a special contribution, must plan to terminate offering+Product Life Cycle, Sales, Cost, and Profit,Z, !Percent of Sales From New Product"!$ (Products in Various Stages of Life Cycle)F)   #Product-by-Value AnalysisLists products in descending order of their individual dollar contribution to the firm. Helps management evaluate alternative strategies.Product Development StagesvIdea generation Assessment of firm s ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market Introduction to Market Evaluation8:F )FPI# =Quality Function DeploymentIdentify customer wants Identify how the good/service will satisfy customer wants Relate customer wants to product hows Identify relationships between the firm s hows Develop importance ratings Evaluate competing products3 > +86RQFD House of Quaoity !J\House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements]Z] Idea Generation StageProvides basis for entry into market Sources of ideas Market need (60-80%); engineering & operations (20%); technology; competitors; inventions; employees Follows from marketing strategy Identifies, defines, & selects best market opportunitiesL6e 96e 9Customer Requirements Stage,Identifies & positions key product benefits Stated in core benefits proposition (CBP) Example: Long lasting with more power (Sears Die Hard Battery)F,k 3k gIdentifies detailed list of product attributes desired by customer Focus groups or 1-on-1 interviews JD 0Z*# 0Z D#Functional Specification StageDefines product in terms of how the product would meet desired attributes Identifies product s engineering characteristics Example: printer noise (dB) Prioritizes engineering characteristics May rate product compared to competitors R{C{WProduct Specification StageDetermines how product will be made Gives product s physical specifications Example: Dimensions, material etc. Defined by engineering drawing Done often on computer Computer-Aided Design (CAD)L$7L"7 @Quality Function DeploymentPProduct design process using cross-functional teams Marketing, engineering, manufacturing Translates customer preferences into specific product characteristics Involves creating 4 tabular  Matrices or  Houses Breakdown product design into increasing levels of detailL5&y:5&y:CHouse of Quality ExampleYou ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality."KHouse of Quality ExampleEHouse of Quality ExampleFHouse of Quality ExampleGHouse of Quality ExampleHHouse of Quality ExampleIHouse of Quality Example-L"Organizing for Product DevelopmentHistorically  distinct departments Duties and responsibilities are defined Difficult to foster forward thinking Today  team approach Representatives from all disciplines or functions Concurrent engineering  cross functional teamL$Ma$Ma(Manufacturability and Value Engineering)P)Benefits: reduced complexity of products additional standardization of products improved functional aspects of product improved job design and job safety improved maintainability of the product robust design&  1Cost Reduction of a Bracket via Value Engineering2P2Issues for Product DevelopmentxRobust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design Robust DesignkProduct is designed so that small variations in production or assembly do not adversely affect the product Modular DesigncProducts designed in easily segmented components. Adds flexibility to both production and marketing Computer Aided Design (CAD)Designing products at a computer terminal or work station Design engineer develops rough sketch of product Uses computer to draw product Often used with CAMD<R<Q!Benefits of CAD/CAMShorter design time Database availability New capabilities Example: Focus more on product ideas Improved product quality Reduced production costs6<%2<%2.MExtensions of CADDesign for Manufacturing and Assembly (DFMA) 3-D Object Modeling CAD/CAM  CAD info is translated into machine control instructions (CAM)0NVirtual RealityComputer technology used to develop an interactive, 3-D model of a product. Especially helpful in design of layouts (factory, store, home, office)"Value AnalysisFocuses on design improvement during production Seeks improvements leading either to a better product or a product which can be more economically produced. Environmentally Friendly DesignsBenefits Safe and environmentally sound products Minimum raw material and energy waste Product differentiation Environmental liability reduction Cost-effective compliance with environmental regulations Recognition as good corporate citizen&   >* Green ManufacturingMake products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less materialTime-based CompetitionProduct life cycles are becoming shorter. \Faster developers of new products gain on slower developers and obtain a competitive advantage0+c*c1OProduct Development Continuum$Product DocumentsEngineering drawing Shows dimensions, tolerances, & materials Shows codes for Group Technology Bill of Material Lists components, quantities & where used Shows product structurepKB:fB% Monterey Jack(a) U.S. grade AA. Monterey cheese shall conform to the following requirements: (1)Flavor. Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feed flavor. (2)Body and texture. A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes (3)Color. Shall have a natural, uniform, bright and attractive appearance. (4)Finish and appearance - bandaged and paraffin-dipped. The rind shall be sound, firm, and smooth providing a good protection to the cheeseRF> x C8V&Engineering Drawing Example '8Engineering Drawings - Show Dimensions, Tolerances, etc.9P9(Bill of Material Example 2P  *Make-or-Buy DecisionsDecide whether or not you want (or need) to produce an item May be able to purchase the item as a  standard item from another manufacturer+ Group Technology Characteristics!P!Parts grouped into families Similar, more standardized parts Uses coding system Describes processing & physical characteristics Part families produced in manufacturing cells Mini-assembly linest!0/!0/ ,Group Technology Code Example -1Group Technology Schemes Enable Grouping of Parts.Group Technology BenefitsImproved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenance/Production Documents6Assembly Drawing Assembly chart Route sheet Work order0Assembly DrawingShows exploded view of product1#Assembly Chart for A Tuna Sandwich$P$ 2#Assembly Drawing and Assembly Chart$P$3 Route SheetLists all operations4 Work Order 5Engineering Change Notice (ECN) P JA correction or modification of an engineering drawing or bill of material6Configuration Management2A system by which a product s planned and changing components are accurately identified and for which control and accountability of change are maintained72Service Design - Nature of Customer Participation81Improving Customer Relations at a Drive-up Window2Z2`Be especially discreet when talking with customer through the microphone Provide written instructions for customers who must fill out forms you provide Mark lines to be completed or attach a note with instructions Always say  please and  thank you Establish eye contact with the customer if the distance allows it If the transaction requires that the customer park the car and come into the lobby, apologize for the inconvenience.9%Moment-of-Truth at a Computer Company&F&:/Application of Decision Trees to Product DesignXParticularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes. Considerations: Include all possible alternatives and states of nature - including  doing nothing Enter payoffs at end of branch Approach determining expected values by  pruning tree 6;Transition to ProductionFirst issue: knowing when to move to production! 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Helps management evaluate alternative strategies.Product Development StagesvIdea generation Assessment of firm s ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market Introduction to Market Evaluation8:F )FPI# =Quality Function DeploymentIdentify customer wants Identify how the good/service will satisfy customer wants Relate customer wants to product hows Identify relationships between the firm s hows Develop importance ratings Evaluate competing products3 > +86RQFD House of Quaoity !J\House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements]Z] Idea Generation StageProvides basis for entry into market Sources of ideas Market need (60-80%); engineering & operations (20%); technology; competitors; inventions; employees Follows from marketing strategy Identifies, defines, & selects best market opportunitiesL6e 96e 9Customer Requirements Stage,Identifies & positions key product benefits Stated in core benefits proposition (CBP) Example: Long lasting with more power (Sears Die Hard Battery)F,k 3k gIdentifies detailed list of product attributes desired by customer Focus groups or 1-on-1 interviews JD 0Z*# 0Z D#Functional Specification StageDefines product in terms of how the product would meet desired attributes Identifies product s engineering characteristics Example: printer noise (dB) Prioritizes engineering characteristics May rate product compared to competitors R{C{WProduct Specification StageDetermines how product will be made Gives product s physical specifications Example: Dimensions, material etc. Defined by engineering drawing Done often on computer Computer-Aided Design (CAD)L$7L"7 @Quality Function DeploymentPProduct design process using cross-functional teams Marketing, engineering, manufacturing Translates customer preferences into specific product characteristics Involves creating 4 tabular  Matrices or  Houses Breakdown product design into increasing levels of detailL5&y:5&y:CHouse of Quality ExampleYou ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality."KHouse of Quality ExampleEHouse of Quality ExampleFHouse of Quality ExampleGHouse of Quality ExampleHHouse of Quality ExampleIHouse of Quality Example-L"Organizing for Product DevelopmentHistorically  distinct departments Duties and responsibilities are defined Difficult to foster forward thinking Today  team approach Representatives from all disciplines or functions Concurrent engineering  cross functional teamL$Ma$Ma(Manufacturability and Value Engineering)P)Benefits: reduced complexity of products additional standardization of products improved functional aspects of product improved job design and job safety improved maintainability of the product robust design&  1Cost Reduction of a Bracket via Value Engineering2P2Issues for Product DevelopmentxRobust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design Robust DesignkProduct is designed so that small variations in production or assembly do not adversely affect the product Modular DesigncProducts designed in easily segmented components. Adds flexibility to both production and marketing Computer Aided Design (CAD)Designing products at a computer terminal or work station Design engineer develops rough sketch of product Uses computer to draw product Often used with CAMD<R<Q!Benefits of CAD/CAMShorter design time Database availability New capabilities Example: Focus more on product ideas Improved product quality Reduced production costs6<%2<%2.MExtensions of CADDesign for Manufacturing and Assembly (DFMA) 3-D Object Modeling CAD/CAM  CAD info is translated into machine control instructions (CAM)0NVirtual RealityComputer technology used to develop an interactive, 3-D model of a product. Especially helpful in design of layouts (factory, store, home, office)"Value AnalysisFocuses on design improvement during production Seeks improvements leading either to a better product or a product which can be more economically produced. Environmentally Friendly DesignsBenefits Safe and environmentally sound products Minimum raw material and energy waste Product differentiation Environmental liability reduction Cost-effective compliance with environmental regulations Recognition as good corporate citizen&   >* Green ManufacturingMake products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less materialTime-based CompetitionProduct life cycles are becoming shorter. \Faster developers of new products gain on slower developers and obtain a competitive advantage0+c*c1OProduct Development Continuum$Product DocumentsEngineering drawing Shows dimensions, tolerances, & materials Shows codes for Group Technology Bill of Material Lists components, quantities & where used Shows product structurepKB:fB% Monterey Jack(a) U.S. grade AA. Monterey cheese shall conform to the following requirements: (1)Flavor. Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feed flavor. (2)Body and texture. A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes (3)Color. Shall have a natural, uniform, bright and attractive appearance. (4)Finish and appearance - bandaged and paraffin-dipped. The rind shall be sound, firm, and smooth providing a good protection to the cheeseRF> x C8V&Engineering Drawing Example '8Engineering Drawings - Show Dimensions, Tolerances, etc.9P9(Bill of Material Example 2P  *Make-or-Buy DecisionsDecide whether or not you want (or need) to produce an item May be able to purchase the item as a  standard item from another manufacturer+ Group Technology Characteristics!P!Parts grouped into families Similar, more standardized parts Uses coding system Describes processing & physical characteristics Part families produced in manufacturing cells Mini-assembly linest!0/!0/ ,Group Technology Code Example -1Group Technology Schemes Enable Grouping of Parts.Group Technology BenefitsImproved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenance/Production Documents6Assembly Drawing Assembly chart Route sheet Work order0Assembly DrawingShows exploded view of product1#Assembly Chart for A Tuna Sandwich$P$ 2#Assembly Drawing and Assembly Chart$P$3 Route SheetLists all operations4 Work Order 5Engineering Change Notice (ECN) P JA correction or modification of an engineering drawing or bill of material6Configuration Management2A system by which a product s planned and changing components are accurately identified and for which control and accountability of change are maintained72Service Design - Nature of Customer Participation81Improving Customer Relations at a Drive-up Window2Z2`Be especially discreet when talking with customer through the microphone Provide written instructions for customers who must fill out forms you provide Mark lines to be completed or attach a note with instructions Always say  please and  thank you Establish eye contact with the customer if the distance allows it If the transaction requires that the customer park the car and come into the lobby, apologize for the inconvenience.9%Moment-of-Truth at a Computer Company&F&:/Application of Decision Trees to Product DesignXParticularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes. Considerations: Include all possible alternatives and states of nature - including  doing nothing Enter payoffs at end of branch Approach determining expected values by  pruning tree 6;Transition to ProductionFirst issue: knowing when to move to production! Second: must view product development as evolutionary, not responsibility of single individual/department Third: expect to need a trial production period to work the bugs out Fourth: recognize that responsibility must also transition/      !"#$%&'(*+,-./0123456789:; <=@BCDE F#G$H%I&J/LP"  "" -"(  r  S X `  +  r <`   #"*`< .  <u?   pRestricts even minute use of dangerous substances, such as ethanol, in products such as cosmetics and detergentsqPq  <u?  t*Eliminates health hazards due to chemicals+P+  <du?   t*Chemicals review (staggered through 2012) +P+  < u?<   TP 8  <@u?   zRaises costs of cars and restricts automaker s design freedom>P>  <u?  {1Reduces injuries and casualties in road accidents2P2  <جu?   [Pedestrian-protection initiative (2001-2012) (when all new cars sold in Europe must comply)\P\  <wu?<   TP >  <Tmu?   Encourages food processors and supermarkets to avoid using genetically modified ingredients, and farmers could stop growing themP2  <bu?  tStrengthens existing food-label laws and introduces labeling for animal feed containing genetically modified contentuPu  <u?  fBiotech-Labeling laws (2003)P  <l u?<  TP r  <u?  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H#I!JSyKLL!NPa /n{B#$o#& ' upi*t0} 9u?D ?2$cNS'_ m 2$ͣ;Dݦ$ѦvQm 2$nT9tlT7X85\2$q%/#Ds2$ v.54m҉b$PknU+)2$`x5i2$8EJLSG|# Vr$$E2fY_,I!)iyb$΁r?|~-M2$\صN^v5Vm2$5g!>#&]=OA YuR$E+IY*Ta ;Xwb$hrchawgԑ؄2$qK _t7Y#b$_N)q_gr%8N"$"ZAfkdK|b$c[ VXr$%{쉈-rqK~iir$T,><ȿ$Xijr$j ir$Ω-n_i<r$ pR8tpXB2" ir$.8#s%\](i2$pljv~Ss2$ w\Vy2$wAѶ t2$r K23/U>+2$#B$ IJKAȲc $ 33333@3, g42d2dv 0pHp0p`<4dddd` 0,`` g4KdKdv 0pdp@ ppuʚ;Nʚ;<4!d!d{ 0<4dddd{ 0:2___PPT9/ 0? -O =cV=Operations Management Design of Goods and Services Chapter 5,><))' OutlineGLOBAL COMPANY PROFILE: REGAL MARINE GOODS AND SERVICES SELECTION Product Strategy Options Support Competitive Advantage Product Life Cycles Life Cycle and Strategy Product-by-value Analysis GENERATING NEW PRODUCTS New Product Opportunities Importance of New Products CP}PP5PPZC}3Outline - continuedUPRODUCT DEVELOPMENT Product Development System Quality Function Deployment (QFD) Organizing for Product Development Manufacturability and Value Engineering ISSUES FOR PRODUCT DESIGN Robust Design Modular Design Computer-Aided Design (CAD) Computer-Aided Manufacturing Virtual Reality Technology Value Analysis Environmentally Friendly Design\PFFFOutline - continuedTime-Based Competition Purchase of Technology by Acquiring Firm Joint Ventures Alliances Defining the Product Make-or-buy Decisions Group Technology DOCUMENTS FOR PRODUCTION SERVICE DESIGN Documents for Service Application of Decision Trees to Product Design Transition to ProductionPCFF'F(FFIFC'(ILearning Objectives1When you complete this chapter, you should be able to : Identify or Define: Product life cycle Product development team Manufacturabililty and value engineering Robust design Time-based competition Modular design Computer aided design Value analysis Group technology Configuration managementb8PP^F8f<Learning Objectives - Continued  Regal MarineGlobal market 3-dimensional CAD reduced product development time reduced problems with tooling reduced problems in production Assembly line JIT6 ^ ^Humor in Product Design What is a Product?Need-satisfying offering of an organization Example P&G does not sell laundry detergent P&G sells the benefit of clean clothes Customers buy satisfaction, not parts May be a good or a serviceP, KA, KA Product Strategy OptionsProduct differentiation  'Generation of New Product Opportunities(P(Economic change<7S  Product Components  Product Life Cycle$Introduction Growth Maturity Decline Product Life Cycle Introduction* P fbFine tuning research product development process modification and enhancement supplier development& W W Product Life Cycle Growth*PfProduct design begins to stabilize Effective forecasting of capacity becomes necessary Adding or enhancing capacity may be necessaryProduct Life Cycle Maturity*PfCompetitors now established High volume, innovative production may be needed Improved cost control, reduction in options, paring down of product lineProduct Life Cycle Decline*PfLUnless product makes a special contribution, must plan to terminate offering+Product Life Cycle, Sales, Cost, and Profit,Z, !Percent of Sales From New Product"!$ (Products in Various Stages of Life Cycle)F)   #Product-by-Value AnalysisLists products in descending order of their individual dollar contribution to the firm. Helps management evaluate alternative strategies.Product Development StagesvIdea generation Assessment of firm s ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market Introduction to Market Evaluation8:F )FPI# =Quality Function DeploymentIdentify customer wants Identify how the good/service will satisfy customer wants Relate customer wants to product hows Identify relationships between the firm s hows Develop importance ratings Evaluate competing products3 > +86RQFD House of Quaoity !J\House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements]Z] Idea Generation StageProvides basis for entry into market Sources of ideas Market need (60-80%); engineering & operations (20%); technology; competitors; inventions; employees Follows from marketing strategy Identifies, defines, & selects best market opportunitiesL6e 96e 9Customer Requirements Stage,Identifies & positions key product benefits Stated in core benefits proposition (CBP) Example: Long lasting with more power (Sears Die Hard Battery)F,k 3k gIdentifies detailed list of product attributes desired by customer Focus groups or 1-on-1 interviews JD 0Z*# 0Z D#Functional Specification StageDefines product in terms of how the product would meet desired attributes Identifies product s engineering characteristics Example: printer noise (dB) Prioritizes engineering characteristics May rate product compared to competitors R{C{WProduct Specification StageDetermines how product will be made Gives product s physical specifications Example: Dimensions, material etc. Defined by engineering drawing Done often on computer Computer-Aided Design (CAD)L$7L"7 @Quality Function DeploymentPProduct design process using cross-functional teams Marketing, engineering, manufacturing Translates customer preferences into specific product characteristics Involves creating 4 tabular  Matrices or  Houses Breakdown product design into increasing levels of detailL5&y:5&y:CHouse of Quality ExampleYou ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality."KHouse of Quality ExampleEHouse of Quality ExampleFHouse of Quality ExampleGHouse of Quality ExampleHHouse of Quality ExampleIHouse of Quality Example-L"Organizing for Product DevelopmentHistorically  distinct departments Duties and responsibilities are defined Difficult to foster forward thinking Today  team approach Representatives from all disciplines or functions Concurrent engineering  cross functional teamL$Ma$Ma(Manufacturability and Value Engineering)P)Benefits: reduced complexity of products additional standardization of products improved functional aspects of product improved job design and job safety improved maintainability of the product robust design&  1Cost Reduction of a Bracket via Value Engineering2P2Issues for Product DevelopmentxRobust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design Robust DesignkProduct is designed so that small variations in production or assembly do not adversely affect the product Modular DesigncProducts designed in easily segmented components. Adds flexibility to both production and marketing Computer Aided Design (CAD)Designing products at a computer terminal or work station Design engineer develops rough sketch of product Uses computer to draw product Often used with CAMD<R<Q!Benefits of CAD/CAMShorter design time Database availability New capabilities Example: Focus more on product ideas Improved product quality Reduced production costs6<%2<%2.MExtensions of CADDesign for Manufacturing and Assembly (DFMA) 3-D Object Modeling CAD/CAM  CAD info is translated into machine control instructions (CAM)0NVirtual RealityComputer technology used to develop an interactive, 3-D model of a product. Especially helpful in design of layouts (factory, store, home, office)"Value AnalysisFocuses on design improvement during production Seeks improvements leading either to a better product or a product which can be more economically produced. Environmentally Friendly DesignsBenefits Safe and environmentally sound products Minimum raw material and energy waste Product differentiation Environmental liability reduction Cost-effective compliance with environmental regulations Recognition as good corporate citizen&   >* Green ManufacturingMake products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less materialTime-based CompetitionProduct life cycles are becoming shorter. \Faster developers of new products gain on slower developers and obtain a competitive advantage0+c*c1OProduct Development Continuum$Product DocumentsEngineering drawing Shows dimensions, tolerances, & materials Shows codes for Group Technology Bill of Material Lists components, quantities & where used Shows product structurepKB:fB% Monterey Jack(a) U.S. grade AA. Monterey cheese shall conform to the following requirements: (1)Flavor. Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feed flavor. (2)Body and texture. A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes (3)Color. Shall have a natural, uniform, bright and attractive appearance. (4)Finish and appearance - bandaged and paraffin-dipped. The rind shall be sound, firm, and smooth providing a good protection to the cheeseRF> x C8V&Engineering Drawing Example '8Engineering Drawings - Show Dimensions, Tolerances, etc.9P9(Bill of Material Example 2P  *Make-or-Buy DecisionsDecide whether or not you want (or need) to produce an item May be able to purchase the item as a  standard item from another manufacturer+ Group Technology Characteristics!P!Parts grouped into families Similar, more standardized parts Uses coding system Describes processing & physical characteristics Part families produced in manufacturing cells Mini-assembly linest!0/!0/ ,Group Technology Code Example -1Group Technology Schemes Enable Grouping of Parts.Group Technology BenefitsImproved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenance/Production Documents6Assembly Drawing Assembly chart Route sheet Work order0Assembly DrawingShows exploded view of product1#Assembly Chart for A Tuna Sandwich$P$ 2#Assembly Drawing and Assembly Chart$P$3 Route SheetLists all operations4 Work Order 5Engineering Change Notice (ECN) P JA correction or modification of an engineering drawing or bill of material6Configuration Management2A system by which a product s planned and changing components are accurately identified and for which control and accountability of change are maintained72Service Design - Nature of Customer Participation81Improving Customer Relations at a Drive-up Window2Z2`Be especially discreet when talking with customer through the microphone Provide written instructions for customers who must fill out forms you provide Mark lines to be completed or attach a note with instructions Always say  please and  thank you Establish eye contact with the customer if the distance allows it If the transaction requires that the customer park the car and come into the lobby, apologize for the inconvenience.9%Moment-of-Truth at a Computer Company&F&:/Application of Decision Trees to Product DesignXParticularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes. Considerations: Include all possible alternatives and states of nature - including  doing nothing Enter payoffs at end of branch Approach determining expected values by  pruning tree 6;Transition to ProductionFirst issue: knowing when to move to production! Second: must view product development as evolutionary, not responsibility of single individual/department Third: expect to need a trial production period to work the bugs out Fourth: recognize that responsibility must also transition/      !"#$%&'(*+,-./0123456789:; <=@BCDE F#G$H%I&J/LP_  ` ̙33` ` ff3333f` 333MMM` f` f` 3>?" dd(x?d3dHP n?" dd@   @@``PR     ` p>> +(  4  N)FEFE   RClick to edit Master text styles Second level Third level Fourth level Fifth level!     S  N6FEFE Zpf  {PowerPoint presentation to accompany Heizer/Render - Principles of Operations Management, 5e, and Operations Management, 7e|{  %Q"  N ?FEFE W `   > 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458??   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