Product Design

Chapter 3
INTRODUCTION to Operation Management 4e, Schroeder

Outline
DESIGN PROCESS Strategies for New-Product Introduction

New-Product Development Process

Cross-Functional Product Design DESIGN TOOLS Quality Function Deployment Design for Manufacturing
Value Analysis Modular Design
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Product Design: Why Does Operations Care?

In the old days, over the wall Now
must be able to make it (process)
technology availability of resources

must have the capacity must deliver a quality product or service must decide inventory policies
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Strategies for New-Product Introduction

Market Pull (We Make What We Can Sell)
food industry

Technology Push (We Sell What We Can

Make) electronics

Interfunctional View
personal computers

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New Product Development Process

Concept Development
Product or Service Design Pilot Production/Testing

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New Product Design Process (Figure 3.2)

Concept development

Product design

Preliminary process design

Pilot production/testing

Final process design

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New Product Design Process

To be ISO 9000 certified, an organization must define and follow a new product design process. ISO = International Organization for Standards. www.iso.ch We will talk about it more in Chapter 8.
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Cross Functional Product Design (Figure 3.3)

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Why Dont Different Areas Cooperate?

They dont speak the same language. They have different performance measures. They tend to have different personality types, i.e. they dont think alike. They are defensive about their own turfs. They are in different physical locations. They dont have time.
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Quality Function Deployment (QFD)

Also known as House of Quality Developed in Japan in 1972. Tool for concurrent design of products Customer Attributes (Voice of the Customer) Engineering Characteristics (Voice of the Engineer) Tradeoffs Competitors Comparison
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HOUSE OF QUALITY (QFD)

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Design for Manufacturing (DFM)

Value Analysis (or engineering)
Simplification of products and processes

Modular Design
Multiple products using common parts, processes and modules.
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Value Analysis
Terms in Value Analysis:
Objective: primary purpose of the product Basic Function: Makes the objective possible Secondary Function: How to perform the basic function

Value analysis seeks to improve the secondary function, e.g. how to open a can or make a tool box.

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Objectives of Value Analysis

Enhance the design of a good or service to provide higher quality at the same price, or the same quality at a lower price. Modify the design of production process to lower the cost of a good or service while maintaining or improving quality.

In other words, improve the ratio of usefulness (quality) to cost.

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DFM: An Example
(a) The original design (b) Revised design (c) Final design

Assembly using common fasteners

One-piece base & elimination of fasteners

Design for push-and-snap assembly

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DFM: An Example (continued)

a. Original Design b. 24 different parts to assemble 7 unique parts to manage in inventory

Revised Design 4 different parts to assemble

c.

3 unique parts to manage in inventory

Final Design 2 parts to assemble and manage

Question: How easy would it be to detect an assembly error with each of the designs?

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Value Analysis at Toyota

GM has 26 different seat frames. Toyota has 2. Toyotas advantage: $500 million
Source: Business Week, 31 July 2006, p. 57.

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Value Analysis at GM
Bo Andersson (VP Global Purchasing) discovered that door hinges on large SUVs and trucks could be made from 3 parts instead of 5. Savings: $21 per truck or $100 million total. It still took him three months to convince the engineers to change.
Source: Business Week, 31 July 2006, p. 57.

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Modular Design
Allows greater variety through mixing and matching of modules Develops a series of basic product components (modules) for later assembly into multiple products Reduces complexity and costs associated with large number of product variations Easy to subcontract production of modules
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Modular Design
Volvo P1 Platform
S40 sedan V50 station wagon C70 convertible C30 compact

Chrysler LX Platform
Dodge Charger Chrysler 300 Chrysler 300C Hemi Dodge Magnum wagon Dodge Challenger

Source: Boston Globe, 19 February 2006, p. K1.

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Danas Rolling Chassis

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Summary
DESIGN PROCESS Strategies for New-Product Introduction

New-Product Development Process

Cross-Functional Product Design DESIGN TOOLS Quality Function Deployment Design for Manufacturing
Value Analysis Modular Design
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End of Chapter Three

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