INTRODUCTION

to
Operations Management
Chapter 3, Product Design

5e, Schroeder
McGraw-Hill/Irwin

Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Outline
DESIGN PROCESS
Strategies for New-Product Introduction
New-Product Development Process
Cross-Functional Product Design
Supply Chain Collaboration
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
Idea generation and evaluation of alternative ideas

Product Design
Design of the physical product
Design of the production process

Pilot Production/Testing
Testing production prototypes
Finalize the information package
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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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Cross Functional Product Design

Traditionally, individual functional areas
(engineering, operations, marketing) operate
without consulting each other. This is the
sequential or over the wall approach.
Often results in misalignment.
Concurrent approach requires the various
functional areas to cooperate and work
together in the same time frame.
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Cross Functional Product Design (Figure 3.3)

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Why Dont Different Functional 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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Supply Chain Collaboration

Working across functional areas

AND collaborating with
customers and suppliers

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Supply Chain Collaboration

Customers
Ask the right questions
Provide incentives
Create collaborative technology
platform
Include customers as advisors to design
team
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Supply Chain Collaboration

Suppliers should have:
Technical expertise
Capability
Capacity
Low risk

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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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HOUSE OF QUALITY (QFD)

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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 product 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
24 different parts to assemble
7 unique parts to manage in inventory

b.

Revised Design
4 different parts to assemble
3 unique parts to manage in inventory

c.

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
Supply Chain Collaboration
DESIGN TOOLS
Quality Function Deployment
Design for Manufacturing
Value Analysis
Modular Design

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End of Chapter Three

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