Documente Academic
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Management
Chapter 5 –
Design of Goods
and Services
PowerPoint presentation to accompany
Heizer/Render
Principles of Operations Management, 7e
Operations Management, 9e
© 2008 Prentice Hall, Inc. 5–1
Outline
Global 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
Differentiation
Shouldice Hospital
Low cost
Taco Bell
Rapid response
Toyota
Sales revenue
Net revenue (profit)
Cash
flow
Negative
cash flow Loss
80 –
Percent of total cost
60 – Costs incurred
40 –
20 – Ease of change
0–
Concept Detailed Manufacturing Distribution,
design design service,
prototype and disposal
© 2008 Prentice Hall, Inc. 5 – 18
Product-by-Value Analysis
40%
30%
20%
10%
50 –
Magic Kingdom
Combined data only prior to 1993
40 – Epcot
Disney-MGM Studios
Animal Kingdom
30 –
20 –
10 –
0 – 84 86 88 90 92 94 96 98 00 02 04
© 2008 Prentice Hall, Inc. 5 – 23
Product Development
System
Ideas
Customer Requirements
Functional Specifications
Introduction
Evaluation
© 2008 Prentice Hall, Inc. 5 – 24
Quality Function
Deployment
Identify 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 products
Compare performance to desirable technical
attributes
© 2008 Prentice Hall, Inc. 5 – 25
QFD House of Quality
Interrelationships
Customer
importance
How to satisfy
ratings
customer wants
Competitive
assessment
What the Relationship
customer matrix
wants
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
What the
Technical
Attributes and
Evaluation
customer
wants Customer
importance
rating
(5 = highest)
Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
Color correction 1
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Technical
Low electricity requirements
Attributes and
Evaluation
Aluminum components
Ergonomic design
Auto exposure
How to Satisfy
Customer Wants
Paint pallet
Auto focus
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Medium relationship
Low relationship
Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
Color corrections 1
Relationship matrix
© 2008 Prentice Hall, Inc. 5 – 30
Interrelationships
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Technical
Attributes and
Evaluation
Aluminum components
Ergonomic design
Auto exposure
Paint pallet
Auto focus
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Technical
Attributes and
Evaluation
Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
Color corrections 1
Our importance ratings 22 9 27 27 32 25
Weighted
rating
© 2008 Prentice Hall, Inc. 5 – 32
Interrelationships
How to Satisfy
Customer Wants
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Technical
Attributes and
Company A
Company B
Evaluation
How well do
competing products
meet customer wants
Lightweight 3 G P
Easy to use 4 G P
Reliable 5 F G
Easy to hold steady 2 G P
Color corrections 1 P P
Our importance ratings 22 5
© 2008 Prentice Hall, Inc. 5 – 33
Interrelationships
How to Satisfy
Customer Wants
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Technical
Attributes and
Evaluation
2 circuits
(Technical
2’ to ∞
attributes)
0.5 A
75%
Company A 0.7 60% yes 1 ok G
Technical
evaluation Company B 0.6 50% yes 2 ok F
Us 0.5 75% yes 2 ok G
© 2008 Prentice Hall, Inc. 5 – 34
House of Quality Example
Aluminum components
Ergonomic design
Auto exposure
Company A
Company B
Paint pallet
Auto focus
Completed
House of Lightweight
Easy to use
3
4
G P
G P
Quality Reliable
Easy to hold steady 2
5 F G
G P
Color correction 1 P P
Our importance ratings 22 9 27 27 32 25
2 circuits
2’ to ∞
0.5 A
75%
Company A 0.7 60% yes 1 ok G
Technical
evaluation Company B 0.6 50% yes 2 ok F
Us 0.5 75% yes 2 ok G
© 2008 Prentice Hall, Inc. 5 – 35
House of Quality Sequence
Deploying resources through the
organization in response to
customer requirements
Quality
plan
Production
process
Production
Specific
House
process
components
components
House 4
Specific
Design
characteristics
characteristics
3
House
Design
2
requirements
Customer
House
1
Figure 5.4
Figure 5.5
© 2008 Prentice Hall, Inc. 5 – 40
Issues for Product
Development
Robust design
Modular design
Computer-aided design (CAD)
Computer-aided manufacturing (CAM)
Virtual reality technology
Value analysis
Environmentally friendly design
1. Product quality
2. Shorter design time
3. Production cost reductions
4. Database availability
5. New range of capabilities
Design
Production
Destruction
For Design …
For Manufacture/Assembly …
Occupational Safety and Health
Administration
Environmental Protection Agency
Professional ergonomic standards
State and local laws dealing with
employment standards, discrimination, etc.
© 2008 Prentice Hall, Inc. 5 – 55
Legal and Industry
Standards
For Disassembly/Disposal …
Figure 5.8
Figure 5.10
Assembly drawing
Assembly chart
Route sheet
Work order
Engineering change notices (ECNs)
Shows exploded
view of product
Details relative
locations to
show how to
assemble the
product
Work Order
Item Quantity Start Date Due Date
157C 125 5/2/08 5/4/08
Production Delivery
Dept Location
F32 Dept K11