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Design of Goods and Services
- 1. A Report in Production and Operations Management By: Ulysses Maniago
- 3. ► Organizations exist to provide goods or services to society ► Great products are the key to success ► Top organizations typically focus on core products ► Customers buy satisfaction, not just a physical good or particular service ► Fundamental to an organization's strategy with implications throughout the operations function
- 4. ► Goods or services are the basis for an organization's existence ► Limited and predicable life cycles requires constantly looking for, designing, and developing new products ► New products generate substantial revenue
- 5. The objective of the product decision is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage
- 6. ► May be any length from a few days to decades ► The operations function must be able to introduce new products successfully
- 7. Introduction Growth Maturity Decline
- 8. Introductory Phase ► Fine tuning may warrant unusual expenses for 1. Research 2. Product development 3. Process modification and enhancement 4. Supplier development
- 9. Growth Phase ► Product design begins to stabilize ► Effective forecasting of capacity becomes necessary ► Adding or enhancing capacity may be necessary
- 10. Maturity Phase ► Competitors now established ► High volume, innovative production may be needed ► Improved cost control, reduction in options, paring down of product line
- 11. Decline Phase Unless product makes a special contribution to the organization, must plan to terminate offering
- 12. Negative cash flow Introduction Growth Maturity Decline Sales,cost,andcashflow Cost of development and production Cash flow Net revenue (profit) Sales revenue Loss Figure 5.2
- 13. ► Lists products in descending order of their individual dollar contribution to the firm ► Lists the total annual profit contribution of the product ► Helps management evaluate alternative strategies
- 14. 1. Understanding the customer 2. Economic change 3. Sociological and demographic change 4. Technological change 5. Political and legal change 6. Market practice, professional standards, suppliers, distributors
- 15. The creation of products with new or different characteristics that offer new or additional benefits to the customer. Product development may involve modification of an existing product or its presentation, or formulation of an entirely new product that satisfies a newly defined customer want or market niche.
- 16. Robust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design “Green” manufacturing
- 17. Products are designed so that they may be manufactured uniformly and consistently despite adverse manufacturing and environmental conditions.
- 18. Product life cycles are becoming shorter. ∴ Faster developers of new products gain on slower developers and obtain a competitive advantage
- 19. Products designed in easily segmented components known as modular designs Adds flexibility to both production and marketing Examples: ◦ Airbus – wings ◦ Fast food – buns, vegetables, etc. ◦ Computers
- 20. Designing products at a computer terminal or work station ◦ Design engineer develops rough sketch of product ◦ Uses computer to draw product Often used with CAM (Computer Aided Manufacturing) © 1995 Corel Corp.
- 21. Benefits of CAD ◦ Shorter design time ◦ Database availability ◦ New capabilities ◦ Improved product quality ◦ Reduced production costs Extensions ◦ Design for Manufacturing and Assembly (DFMA) ◦ 3-D Object Modeling ◦ CAD info is translated into machine control instructions (CAM)
- 22. Computer technology used to develop an interactive, 3-D model of a product Especially helpful in design of layouts (e.g. factory, store, home, office, etc.) [video] AutoCAD 3D Printing Source: http://www.youtube.com/watch?v=9XXBLoVwRCA
- 23. Focuses on design improvement during production Seeks improvements leading either to a better product or a product which can be more economically produced
- 24. Benefits ◦ Safe and environmentally sound products ◦ Minimum raw material and energy waste ◦ Product differentiation ◦ Environmental liability reduction ◦ Cost-effective compliance with environmental regulations ◦ Recognition as good corporate citizen
- 25. Make products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less material
- 26. Scope for design and engineering teams Evaluation Introduction Test Market Functional Specifications Design Review Product Specifications Customer Requirements Feasibility Concept
- 27. Thank you!
Hinweis der Redaktion
- Example: P&G does not sell laundry detergent. P&G sells the benefit of clean clothes
- to relate it to cash flow
- 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. example is the use of the plastic seal on the inside of soda bottle caps. umbrella fabric that will not deteriorate when exposed to varying environments. food products that have long shelf lives
- 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. Example: copmputer systems
- 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. Computer integrated manufacturing
- 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.
- 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?