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Heizer - Om12 - ch05 Final Design of Goods and Services
Heizer - Om12 - ch05 Final Design of Goods and Services
Heizer - Om12 - ch05 Final Design of Goods and Services
and Services 5
PowerPoint presentation to accompany
Heizer, Render, Munson
Operations Management, Twelfth Edition
Principles of Operations Management, Tenth Edition
► Global market
► 3-dimensional CAD system
► Reduced product development time
► Reduced problems with tooling
► Reduced problems in production
► Assembly line production
► JIT
Copyright © 2017 Pearson Education, Inc. 5-4
Learning Objectives
When you complete this chapter you
should be able to :
5.1 Define product life cycle
5.2 Describe a product development system
5.3 Build a house of quality
5.4 Explain how time-based competition is
implemented by OM
40% –
Percent of sales from
10% –
0% – Figure 5.1
Industry Top Middle Bottom
leader third third third
► Differentiation
► Shouldice Hospital
► Low cost
► Taco Bell
► Rapid response
► Toyota
Loss Profit
Loss
Introduction Growth Maturity Decline
Figure 5.2
Growth Phase
Decline Phase
80 –
Percent of total cost
60 –
Costs incurred
40 –
20 –
Ease of change
0–
Customer Requirements
Functional Specifications
Introduction
Evaluation
assessment
Competitive
What the Relationship
customer matrix
wants
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Technical
Attributes and
Evaluation
What the
customer wants
Customer
importance
rating
(5 = highest)
Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
High resolution 1
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Technical
Attributes and
Evaluation
Low electricity requirements
Aluminum components
Ergonomic design
Customer Wants
Auto exposure
Auto focus
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
High resolution 1
Relationship matrix
© 2014 Pearson Education, Inc. 5 - 28
Interrelationships
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Technical
Attributes and
Evaluation
Relationships between
the things we can do
Aluminum components
Ergonomic design
Auto exposure
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
High resolution 1
Weighted rating
How to Satisfy
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Technical
Attributes and
Evaluation
Company B
Company A
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
High resolution 1 P P
How to Satisfy
Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants
Technical
Attributes and
Evaluation
Panel ranking
Target values
(Technical
2 circuits
attributes)
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
Aluminum components
Example
Ergonomic design
Auto exposure
Company A
Company B
Auto focus
Completed
Lightweight 3 G P
House of Easy to use 4 G P
Quality Reliable
Easy to hold steady
5
2
F G
G P
High resolution 1 P P
Our importance ratings 22 9 27 27 32 25
Panel ranking
(Technical
attributes)
2 circuits
2’ to ∞
0.5 A
75%
Company A 0.7 60% yes 1 ok G
Technical
Company B 0.6 50% yes 2 ok F
evaluation
© 2014 Pearson Education, Inc. Us 0.5 75% yes 2 ok G 5 - 33
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
Copyright © 2017 Pearson Education, Inc. 5 - 34
Organizing for Product
Development
► Traditionally – distinct departments
► Duties and responsibilities are defined
► Difficult to foster forward thinking
► A Champion
► Product manager drives the product
through the product development
system and related organizations
Figure 5.5
1. Product quality
2. Shorter design time
3. Production cost reductions
4. Database availability
5. New range of capabilities
Figure 5.8
Figure 5.10
Copyright © 2017 Pearson Education, Inc. 5 - 62
Group Technology Benefits
1. Improved design
2. Reduced raw material and purchases
3. Simplified production planning and
control
4. Improved layout, routing, and machine
loading
5. Reduced tooling setup time, work-in-
process, and production time
► 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
Setup Operation
Process Machine Operations Time Time/Unit
1 Auto Insert 2 Insert Component 1.5 .4
Set 56
2 Manual Insert Component .5 2.3
Insert 1 Set 12C
3 Wave Solder Solder all 1.5 4.1
components
to board
4 Test 4 Circuit integrity .25 .5
test 4GY
Work Order
Production Delivery
Dept Location
Figure 5.12
▶ Automation
▶ Reduces cost, increases customer
service
▶ Moment of truth
▶ Critical moments between the customer
and the organization that determine
customer satisfaction
(.4)
High sales
(.6)
Low sales
Do nothing
Figure 5.13
Copyright © 2017 Pearson Education, Inc. 5 - 83
Decision Tree Example
$2,500,000 Revenue
(.4) – 1,000,000 Mfg cost ($40 x 25,000)
Purchase CAD – 500,000 CAD cost
High sales
$1,000,000 Net
$800,000 Revenue
(.6) Low sales – 320,000 Mfg cost ($40 x 8,000)
– 500,000 CAD cost
Hire and train engineers – $20,000 Net loss
(.4)
High sales
EMV (purchase CAD system) = (.4)($1,000,000) + (.6)(– $20,000)
(.6)
Low sales
Do nothing
Figure 5.13
Copyright © 2017 Pearson Education, Inc. 5 - 84
Decision Tree Example
$2,500,000 Revenue
(.4) – 1,000,000 Mfg cost ($40 x 25,000)
Purchase CAD – 500,000 CAD cost
$388,000 High sales
$1,000,000 Net
$800,000 Revenue
(.6) Low sales – 320,000 Mfg cost ($40 x 8,000)
– 500,000 CAD cost
Hire and train engineers – $20,000 Net loss
(.4)
High sales
EMV (purchase CAD system) = (.4)($1,000,000) + (.6)(– $20,000)
= $388,000
(.6)
Low sales
Do nothing
Figure 5.13
Copyright © 2017 Pearson Education, Inc. 5 - 85
Decision Tree Example
$2,500,000 Revenue
(.4) – 1,000,000 Mfg cost ($40 x 25,000)
Purchase CAD – 500,000 CAD cost
$388,000 High sales
$1,000,000 Net
$800,000 Revenue
(.6) Low sales – 320,000 Mfg cost ($40 x 8,000)
– 500,000 CAD cost
Hire and train engineers – $20,000 Net loss
$365,000
$2,500,000 Revenue
(.4) – 1,250,000 Mfg cost ($50 x 25,000)
High sales – 375,000 Hire and train cost
$875,000 Net
$800,000 Revenue
(.6) – 400,000 Mfg cost ($50 x 8,000)
Low sales – 375,000 Hire and train cost
Do nothing $0 $25,000 Net