Chapter 5- Design of Goods and Services

Adding service efficiency

- limit the options - delay customization - modularization - automation - moment of truth

Benefits of manufacturability and value engineering

- reduced product complexity - reduced environmental impact - additional standardization of components - improvement of functional aspects of the product - improved job design and job safety - improved maintainability (serviceability) of product - robust design

Approaches to organizing for product development

- traditional (different departments) - "champion" the product - product development teams - Japanese: entire organization

Factors to generate new products

1. Understand the customer 2. Economic change 3. Sociological and demographic change 4. Technological change 5. Political and legal change 6. Other changes through market practice, professional standards, suppliers, and distributors

Manufacturability and value engineering

Activities that help improve a product's design, production, maintainability, and use

Documents for production

Assembly drawing; assembly chart; route sheet; work order; and engineering change notices (ECN's)

Time-based competition

Competition based on time; rapidly developing products and moving them to the market

Alliances

Cooperative agreements that allow firms to remain independent, but pursue strategies consistent with their individual missions

Engineering change notices (ECNs)

Correction or modification of an engineering drawing or bill of material

CAD extensions

Design for manufacture and assembly (DFMA), computer-aided manufacturing (CAM), and virtual reality

Modular design

Design in which parts or components of a product are subdivided into modules that are easily interchanged or replaced

Robust design

Design that can be produced to requirements even with unfavorable conditions in the production process

Objective of product design

Develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage

Engineering drawing

Drawing that shows the dimensions, tolerances, materials, and finishes of a component

Assembly drawing

Exploded view of the product

3D printing

Extension of CAD that builds prototypes and small lots

Joint ventures

Firms establishing joint ownership to pursue new products or markets

Process-chain-network (PCN) analysis

Focuses on the ways in which processes can be designed to optimize interaction between firms and their customers

Life Cycle Assessment (LCA)

Formal evaluation of the product's environmental impact

House of quality

Graphic technique for defining the relationship between customer desires and product/service

Approaches to ensure a successful transition to production

Have a project manager; use product development teams; integration of the product development and manufacturing organizations

Work order

Instruction to make a given quantity of a particular item, usually to a given schedule

Computer-aided design (CAD)

Interactive use of computer to develop and document a product

Four phases of the product life cycle

Introduction, growth, maturity, and decline

How products and services are defined by OM

Its functions

Transition to production

Knowing when to move a product from development to production

Bill of material (BOM)

List of hierarchy of components, their description, and the quantity of each required to make one unit of a product

Product-by-value analysis

List of products, in descending order of their individual dollar contribution to the firm, as well as the total annual dollar contribution of the product

Route sheet

Listing of operations necessary to produce the component with the material specified in the bill of material

Sustainability

Meeting the needs of the present without compromising the ability of future generations to meet their needs

Internal product development strategies

Migration of existing products; enhancements to existing products; new internally developed products

Manufacturability test

Period of trial production to ensure that the design is indeed producible

Quality function deployment

Process for determining customer requirements (customer "wants") and translating them into the attributes (the "hows") that each functional area can understand and act on

Group technology

Product and component coding system that specifies the size, shape, and type of processing; allows similar products to be grouped

External product development strategies

Purchasing technology by acquiring a firm; joint ventures; forming alliances

Value analysis

Review of successful products that takes place during the production process

Issues for product design

Robust design, modular design, computer-aided design/computer-aided manufacturing (CAD/CAM), virtual reality technology, value analysis, and sustainability/life cycle assessment (LCA)

Product design

Selection, definition, and design of products

Assembly chart

Shows in schematic form how a product is assembled

Concurrent engineering

Simultaneous performance of the various stages of product development

Product life-cycle management (PLM)

Software programs that tie together many phases of product design and manufacture

Design for manufacture and assembly (DFMA)

Software that allows designers to look at the effect of design on manufacturing of the product

Configuration management

System by which a product's planned and changing components are accurately identified

Product development teams

Teams charged with moving from market requirements for a product to achieving product success

Computer-aided manufacturing (CAM)

Use of information technology to control machinery

Virtual reality

Visual form of communication in which images substitute for reality and typically allow the user to respond interactively

Product development stages

concept --> feasibility --> customer requirements to win orders --> functional specifications --> product specifications and manufacturability --> design review --> test market --> introduction to market --> evaluation