Design of Goods

1
Design of Goods Services

• What is involved in product design
• How is it done?
• Quality function deployment (QFD)
• Important issues to OM

2
Product Strategy

• Degree of standardization/customization
• Shouldice Hospital vs Peninsula Regional Medical
  Center
• Cafeteria vs gourmet restaurant
• Affects process choice, equipment, HR, etc.
• Product strategy should support business strategy
• Differentiation customized, high performance
  quality, unique features
• Low cost standardized, efficiency, quality
  conformance
• Response requires flexibility and/or speed,
  often more customized
• Product design affects customer satisfaction,
  product quality, and product cost!!!

3
Product Development

• What is done (Fig. 5.3 in text)?
• Determine what customer wants
• Design the product to do what the customer wants
• Figure out how it will be produced
• Make sure this is the best approach
• Test market to see if it meets customer
  expectations
• What must be considered?
• Market requirements / changes
• Cash flow / availability
• Organizations capabilities

4
Product Development

• How have products traditionally been developed in
  US?
• In functional silos

5
Product Development

• How have products traditionally been developed in
  US?
• In functional silos lacks forward thinking

6
Product Development

• Better approach
• Using a product manager to champion the product
  through the functional silos
• Even better approach
• Product development team
• What are the advantages of this approach?
• Concurrent engineering rather than sequential
• Expertise combined initially rather than over
  the wall
• Results?
• Faster getting product to market
• Reduced cost of product development
• Product is more marketable, manufacturable and
  serviceable

7
Product Development

• What is done?
• Determine what customer wants
• Design the product to do what the customer wants
• Figure out how it will be produced
• Make sure this is the best approach
• Test market to see if it meets customer
  expectations

8
Product Development

• What is done in QFD?
• Determine what will satisfy the customer
• Translate those customer desires into the target
  design
• Links needs of customer with design,
  development, engineering, manufacturing and
  service functions (QFD Institute)
• When is it used? Why then?
• Early in the design process
• Identify what will satisfy customer
• Determine where to employ quality efforts
• Cost of design increases over development process
• Very valuable product development tool
• Address many issues early in design process
• Brings expertise from many areas together early

Forward thinking
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11
House of Quality Sequence
12
Product Design Issues

• Robust design
• Modular design
• CAD
• CAM
• Ethical environmentally friendly designs

• What is it?
• Example caramel
• Results
• Reduced production costs
• Improved quality consistency

13
Product Design Issues

• Robust design
• Modular design
• CAD
• CAM
• Ethical environmentally friendly designs

• What is it?
• Example Dell
• Results
• Faster production with more customization
• Product changes incorporated more quickly

Dell Video cards 128 MB, 256 MB, Memory 512
MB, 1GB, 2GB, Hard drive 80 GB, 160GB, CD or
DVD drives single DVD, 16x dual drive, 48x dual
drive, Monitors 17 analog flat panel, 17
digital flat panel,
14
Product Design Issues

• Robust design
• Modular design
• CAD
• CAM
• Ethical environmentally friendly designs

• What is it?
• Results

15
Product Design Issues

• Robust design
• Modular design
• CAD
• CAM
• Ethical environmentally friendly designs

• What is it?
• Results
• Reduced design/development time
• Fast, easy modifications
• Manipulate, analyze and test without a prototype
• Greater precision
• Virtual design teams

16
Product Design Issues

• Robust design
• Modular design
• CAD
• CAM
• Ethical environmentally friendly designs

• What is it?
• Results
• Greater precision in production
• Faster production
• Cost reduction (setup material, waste)
• When used with CAD
• Check on processing while designing
• Faster information flow so reduced time for
  production
• Greater accuracy

17
Product Design Issues
Fords River Rouge plant in Michigan

• Robust design
• Modular design
• CAD
• CAM
• Ethical environmentally friendly design

• What is it?
• Example Ford Motor Co.
• Results
• Enhanced image
• Reduced production and distribution costs
• Improved quality

ISO 14000 International environmental management
standards
18
Product Design Issues

• Some guidelines
• Make products recyclable
• Use recycled materials
• Use less harmful ingredients
• Use lighter components
• Use less energy
• Use less material

• Robust design
• Modular design
• CAD
• CAM
• Ethical environmentally friendly design