Heizer_om13_ppt_05.pptx

Operations Management: Sustainability and Supply Chain Management Thirteenth Edition Chapter 5 Design of Goods and Services Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Goods and Services Selection (1 of 3) • Organizations exist to provide goods or services to society...

Operations Management: Sustainability and Supply Chain Management Thirteenth Edition Chapter 5 Design of Goods and Services Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Goods and Services Selection (1 of 3) • Organizations exist to provide goods or services to society • Great products are the key to success • Top organizations typically focus on core products • Customers buy satisfaction, not just a physical good or particular service • Fundamental to an organization's strategy with implications throughout the operations function Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Goods and Services Selection (2 of 3) • Limited and predictable life cycles requires constantly looking for, designing, and developing new products • Utilize strong communication among customer, product, processes, and suppliers • New products generate substantial revenue Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Product Decision The objective of the product decision is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Product Strategy Options • Differentiation – Shouldice Hospital • Low cost – Taco Bell • Rapid response – Toyota Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Product Life Cycles • May be any length from a few days to decades • The operations function must be able to introduce new products successfully Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Product Life Cycle Figure 5.2 Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Life Cycle and Strategy Introductory Phase • Fine tuning may warrant unusual expenses for 1. 2. 3. 4. Research Product development Process modification and enhancement Supplier development Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Product Life Cycle (1 of 3) Growth Phase • Product design begins to stabilize • Effective forecasting of capacity becomes necessary • Adding or enhancing capacity may be necessary Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Product Life Cycle (2 of 3) Maturity Phase • Competitors now established • High volume, innovative production may be needed • Improved cost control, reduction in options, paring down of product line Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Product Life Cycle (3 of 3) Decline Phase • Unless product makes a special contribution to the organization, management must plan to terminate offering Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Product Life Cycle Costs Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Generating New Products 1. Understanding the customer 2. Economic change 3. Sociological and demographic change 4. Technological change 5. Political and legal change 6. Market practice, professional standards, suppliers, distributors Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Product Development Stages Figure 5.3 Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Quality Function Deployment (1 of 2) • Quality function deployment (QFD) – Determine what will satisfy the customer – Translate those customer desires into the target design • House of quality – Utilize a planning matrix to relate customer wants to how the firm is going to meet those wants Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Quality Function Deployment (2 of 2) 1. Identify customer wants 2. Identify how the good/service will satisfy customer wants 3. Relate customer wants to product hows 4. Identify relationships between the firm’s hows 5. Develop our importance ratings 6. Evaluate competing products 7. Compare performance to desirable technical attributes Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved QFD House of Quality Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved House of Quality Example (1 of 9) Your team has been charged with designing a new camera for Great Cameras, Inc. The first action is to construct a House of Quality Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Organizing for Product Development (1 of 4) • Traditionally – distinct departments – Duties and responsibilities are defined – Difficult to foster forward thinking • A Champion – Product manager drives the product through the product development system and related organizations Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Organizing for Product Development (2 of 4) • Team approach – Cross functional – representatives from all disciplines or functions – Product development teams, design for manufacturability teams, value engineering teams • Japanese “whole organization” approach – No organizational divisions Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Organizing for Product Development (3 of 4) • Product development teams – Market requirements to product success – Cross-functional teams often involving vendors – Open, highly participative environment Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Organizing for Product Development (4 of 4) • Concurrent engineering – Simultaneous performance of product development stages – Speedier product development – Facilitated by cross-functional teams Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Manufacturability and Value Engineering • Benefits: 1. Reduced complexity of the product 2. Reduction of environmental impact 3. Additional standardization of components 4. Improvement of functional aspects of the product 5. Improved job design and job safety 6. Improved maintainability (serviceability) of the product 7. Robust design Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Augmented Reality • The integration of digital information with the user's environment in real time – Digital information or images superimposed on an existing image – Useful in product design, assembly and maintenance operations, tool or specification information Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Value Analysis • Focuses on design improvement during production • Seeks improvements leading either to a better product or a product that can be produced more economically with less environmental impact Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Sustainability and Life Cycle Assessment (LCA) • Sustainability means meeting the needs of the present without compromising the ability of future generations to meet their needs • LCA is a formal evaluation of the environmental impact of a product Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Product Development Continuum (1 of 4) • Product life cycles are becoming shorter and the rate of technological change is increasing • Developing new products faster can result in a competitive advantage • Time-based competition Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Bills of Material (1 of 2) BOM for a Panel Weldment Figure 5.9 (a) NUMBER A 60-71 DESCRIPTION PANEL WELDM’T QTY 1 A 60-7 R 60-17 R 60-428 P 60-2 LOWER ROLLER ASSM. ROLLER PIN LOCKNUT 1 1 1 1 A 60-72 R 60-57-1 A 60-4 02-50-1150 GUIDE ASSM. REAR SUPPORT ANGLE ROLLER ASSM. BOLT 1 1 1 1 A 60-73 A 60-74 R 60-99 02-50-1150 GUIDE ASSM. FRONT SUPPORT WELDM’T WEAR PLATE BOLT 1 1 1 1 Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Bills of Material (2 of 2) Hard Rock Cafe’s Hickory BBQ Bacon Cheeseburger Figure 5.9 (b) DESCRIPTION Bun Hamburger patty Cheddar cheese Bacon BBQ onions Hickory BBQ sauce Burger set Lettuce Tomato Red onion Pickle French fries Seasoned salt 11-inch plate HRC flag QTY 1 8 oz. 2 slices 2 strips 1/2 cup 1 oz. blank 1 leaf 1 slice 4 rings 1 slice 5 oz. 1 tsp. 1 1 Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Designing More Efficient Services (1 of 2) • Limit the options – Improves efficiency and ability to meet customer expectations • Delay customization • Modularization – Eases customization of a service Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Designing More Efficient Services (2 of 2) • Automation – Reduces cost, increases customer service • Moment of truth – Critical moments between the customer and the organization that determine customer satisfaction Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved