6. Learning Objectives - Continued When you complete this chapter, you should be able to: Explain : Alliances Concurrent engineering Product-by-value analysis Product documentation
12. Legislation/ Implementation Date Stated Purpose Industry Criticism Electrical-Waste directive (2006) Makes electrical equipment easier to recycle in part by banning some hazardous substances Bans some common flame retardants, raising the likelihood of fires Telecom-data-protection directive (mid-2003) Protects privacy on e-mail and the internet Makes surfing more onerous by restricting use of “cookies” to remember peoples preferences Biotech-Labeling laws (2003) Strengthens existing food-label laws and introduces labeling for animal feed containing genetically modified content Encourages food processors and supermarkets to avoid using genetically modified ingredients, and farmers could stop growing them Pedestrian-protection initiative (2001-2012) (when all new cars sold in Europe must comply) Reduces injuries and casualties in road accidents Raises costs of cars and restricts automaker’s design freedom Chemicals review (staggered through 2012) Eliminates health hazards due to chemicals Restricts even minute use of dangerous substances, such as ethanol, in products such as cosmetics and detergents Warning
13. Product Components Product Product Idea Package Physical Good Features Quality Level Service (Warranty) Brand (Name)
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19. Product Life Cycle, Sales, Cost, and Profit Sales, Cost & Profit . Introduction Maturity Decline Growth Cost of Development & Manufacture Sales Revenue Time Cash flow Loss Profit
27. House of Quality Sequence Indicates How to Deploy Resources to Achieve Customer Requirements
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34. House of Quality Example High relationship Medium relationship Low Relationship Customer Requirements Customer Importance Target Values
35. House of Quality Example High relationship Medium relationship Low Relationship Target Values Light weight Easy to use Reliable What the customer desires (‘wall’) Aluminum Parts Auto Focus Auto Exposure Customer Requirements Customer Importance
36. House of Quality Example High relationship Medium relationship Low Relationship Customer Requirements Customer Importance Target Values Light weight Easy to use Reliable Aluminum Parts Auto Focus Auto Exposure 3 1 2 Average customer importance rating
37. House of Quality Example High relationship Medium relationship Low Relationship Customer Requirements Customer Importance Light weight Easy to use Reliable Aluminum Parts Auto Focus Auto Exposure 3 2 1 Relationship between customer attributes & engineering characteristics (‘rooms’)
38. House of Quality Example High relationship Medium relationship Low Relationship Customer Requirements Customer Importance Target Values Light weight Easy to use Reliable Aluminum Parts Auto Focus Auto Exposure 3 2 1 5 1 1 Target values for engineering characteristics (‘basement’); key output
39. House of Quality Example High relationship Medium relationship Low Relationship Customer Requirements Customer Importance Target Values Light weight Easy to use Reliable Aluminum Parts Auto Focus Auto Exposure 3 2 1 5 1 1
54. Product Development Continuum External Development Strategies Alliances Joint Ventures Purchase Technology or Expertise by Acquiring the Developer Internal Development Strategies Migrations of Existing Products Enhancement to Existing Products New Internally Developed Products Internal ----------------------Cost of Product Development --------------------- Shared Lengthy --------------------Speed of Product Development--------------- Rapid and/or Existing High ------------------------- Risk of Product Development ----------------------- Shared
60. Bill of Materials – Manufacturing Plant and Fast-Food Restaurant Bill of Material for a Panel Weldment Hard Rock Café’s Hickory BBQ Bacon Cheeseburger Number Description Qty Description Qty A60-71 Panel Weldm’t 1 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 1 8 oz. 2 slices 2 strips ½ cup 1 oz. 1 leaf 1 slice 4 rings 1 slice 5 oz. 1 tsp 1 1 A 60-7 R 60-17 R 60-428 P 60-2 Lower Roller Assembly Roller Pin Locknet 1 1 1 1 60-72 R 60-57-1 A 60-4 02-50-1150 Guide Assem. Rear Support Angle Roller Assem. 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
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63. Group Technology Code Example Product Code: 1 5 3 1 Part function (round rod) Material (steel) Max. length (50 < L < 150) Primary machine (lathe) Round Rod 112mm 60mm 4mm x 45° chamfer 80mm
76. Moment-of-Truth at a Computer Company Experience Detractors I had to call more than once to get through. A recording spoke to me rather than a person While on hold, I get silence,and wonder if I am disconnected. The operator sounded like he was reading a form of routine questions. The operator sounded uninterested I felt the operator rushed me. Standard Expectations Only one local number needs to be dialed I never get a busy signal I get a human being to answer my call quickly and he or she is pleasant and responsive to my problem A timely resolution to my problem is offered The operator is able to explain to me what I can expect to take place Experience Enhancers The operator was sincerely concerned and apologetic about my problem He asked intelligent questions that allowed me to feel confident in his abilities The operator offered various times to have work done, to suit my schedule Ways to avoid future problems were suggested
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Editor's Notes
Regal Marine provides an example where everything fits together. You may wish to discuss the “production line” where: - bows and hulls are individually hand-produced - bows and hulls are joined as they move to an assembly line - wooden decks are delivered one-at-a-time to the installation station - engines (one of few purchased elements) are installed - wiring harnesses (produced in-house) are installed - upholstered items are installed - vessel is moved to test tank for testing - watertight, gauge, and systems
This slide provides an opportunity to introduce the complex nature of a product. There are a number of examples one can discuss here: McDonald’s/ Burger King/Wendys (their product is more than hamburgers); your particular college or university; Microsoft; auto manufacturers.
Ask students to identify products or companies which rely on each of these strategies.
Each of the items listed forms the basis for developing a new product idea. Ask students to provide examples of products fitting each element.
One might remind students that a product is defined not only by what it has, but also by what is missing.
This slide begins an in depth study of the product life cycle.
Previous slides have related the product life cycle to various management issues. This is the first to relate it to cash flow. Ask students for suggestions as to how one might eliminate the loss occurring toward the end of the product’s life cycle.
This slide suggests that product innovation is a “way-of-life” for industry leaders. Does this suggest that one of the most important activities in which a company engages is that of “adaptation”? If so, will this become more or less of an issue in the future?
This slide gave a reasonable depiction of the growth stage for these products when it was created. Does it still? Ask students to consider the length of the lifetime of each of the products listed. Are the lifetimes similar? What ranges of lifetime would they estimate for these products?
This slide suggests the relatively small number of product concepts that actually become successful. Ask students to suggest reasons for such a poor success rate. Can they also suggest ways by which the success rate might be improved?
This slide indicates the stages in the product development process. It also attempts to indicate organizational teams assigned to accomplish specific elements. Students might be asked to consider the utility of having the process broken down among several work groups. Would success be improved if all these activities were carried out by a single “project team” from start to finish, rather than sequentially by teams of specialists?
One notion which might be discussed at this stage is the attempts by manufacturers to add information to an existing good rather than develop a new good.
Here begins the attempt to link the product directly with the customer. You might specify a product and ask students to identify first the attributes of interest to the customer, and second the “benefits” to the customer.
At this point we have to start adding precision to our specifications. If we want a product to be “easy to use,” what exactly does that mean? To use by whom? With what level of preparation? Etc.
At this point, we have to develop the information necessary to actually produce the product - and, to know that it has been produced appropriately.
Manufacturability and value engineering encompass many issues. You may wish to stress the point that we consider in detail not only what the product is, but how it is to be produced and maintained - the best design is optimized across all these activities, not just one or another.
This slide illustrates changes made over a series of iterations in design. Cost is obviously reduced. You might ask students if the perceive any change in quality as the design iterations progressed and the cost was reduced.
This slide introduces some of the issues of product development.
After discussing the concept of robust design, you might identify a product and ask students to identify the use of robust design in its production. (One example is the use of the plastic seal on the inside of soda bottle caps)
Ask your students to suggest examples of products that are produced in modular fashion. Certainly microcomputers provide a good example; also cars, motorcycles, and hamburgers.
CAD can be viewed both as a sophisticated design tool, and as the first step in developing a completely integrated production process. CAD=>CAM=> ... CIM.
You might point out here that modern CAD systems with 3D representation and virtual reality capability allow one to “consumer test” a product before it is produced. Students will probably be familiar with some of the televised automobile company ads.
CAD can be viewed both as a sophisticated design tool, and as the first step in developing a completely integrated production process. CAD=>CAM=> ... CIM.
You might suggest that your students view value analysis as value engineering during, rather than prior to, production. Value analysis helps continually improve both design and production methodology.
Environmental issues are becoming more important in product design. Ask students for example of companies which stress environmentally sound design and production practices. Also ask them to suggest some examples of companies which have a very poor environmental record. Why does such a difference exist?
Ask the students to consider the effect of time-based competition not only on the producer, but also on the customer. Assume that you order two computers, through a catalog, directly from the factory. If you place one order today, and a second two days from now (for the same model, etc.), you may well receive two machines sufficiently different that the installation procedure for one will not work on the second. The producer has to deal with the issue of producing a constantly evolving product, but you also have to manage the problem created by the increasingly short and perhaps in a sense, artificial, product lifetimes.
This slide introduces the concept of “product documents.” Examples will be found in subsequent slides.
An excerpt from the specifications for Monterey Jack cheese. You might ask students to compare their perception of several other cheese to this excerpt, and note the differences.
You might note to the students that the engineering drawing contains all dimensions necessary to produce the product - but specifies nothing about the production process.
Remind students that the Bill of Material indicates all parts or kits required to assemble a unit of the product and that bills of materials at multiple levels are required to fully specify each and every individual part contained in the finished unit. (The bill of material portrayed on the slide specifies a “frame assembly,” but does not tell us what pieces are required to produce the assembly. This information would be contained in a lower level bill of materials.)
At this point, one can raise the arguments for producing in-house versus purchasing. It might be useful in this instance to look both at manufacturing and services. Useful examples can be developed from: - the publishing industry where the publisher may perform the editing and project management, but contract virtually everything else out; - the role of production in house versus that of purchasing services outside in developing a distance education program, or staffing a hospital; - the procedure followed in the development of the Microsoft Windows 97 operating system, versus that for the Linux operating system. You might also ask your students to consider the relationship between the make-or-buy decision and the concept of the virtual organization.
You might ask your students to consider the requirements necessary for the concept of group technology to be successful.
You might ask your students to consider the “downside” to group technology. Are the limitations it places on development and production significant or important?
This slide introduces the notion of production documents.
One could obviously ask students to give examples of assembly charts for other common “products.”
This slide depicts both an Assembly Drawing and and Assembly Chart. Note that the Chart depicts both the relationship of the pieces and the sequence of assembly.
Note that the Route Sheet depicts both operations and timing.
One might point out to students that as the market environment tends to evolve more rapidly, configuration management will become an even more important issue.
Ask students to suggest example of services showing the various degrees of customer interaction in design. You might also ask students whether they would anticipate some the the notions of service design (customization, for example) to become important in manufacturing (mass customization?)
This illustrates some of the considerations in service design.
This slide illustrates some lessons learned by GTE You might ask students to cite examples illustrating the application of these lesson in other companies
This slide should probably be used simply to provide a reason for studying decision trees at a later time (Module A)
This slide introduces the problem of transitioning a product from design and development to production. It would probably be helpful to use this slide as the basis for a discussion of each of the issues. Points to be made might include: - the point in time at which to transition must be chosen by consensus of both design/development and production staff - while we should view product development as evolutionary, we may be required to view the transition as iterative - where, as unforeseen problems develop in production, design changes may be required. - product design/development teams must expect to contribute to problem solving in production - product design/development staff must recognize that once the transition to production has taken place, the main responsibility for the project has also shifted