Product Design

Goods and Services Selection

Product decision the selection,

definition, and design of products.

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.
Product Life Cycles
Sales, cost, and cash flow

Cost of development
and production
Sales RevenueNet revenue
(profit)
Loss
Cash
flow
Negative
cash flow

Introduction Growth Maturity Decline

Product-by-value Analysis
a listing of product in descending order of their individual dollar
contribution to the firm as well as the total annual dollar contribution.

y
factor
r n i ture
a m s fu
S Individual contribution Total Annual
($) Contribution ($)
Love seat $136 $51,000

Arm chair $102 $36,720

Foot stool $87 $31,765

Recliner $12 $6,240

Generating New Products

Product design takes place on

continuing basis because products die
and need to be replace.
Importance of New Products
New value for customers
Improved society
Continued existence of the company
Product Development

Product development System

A series of steps that includes the

conceptualization, design, development,
and marketing of newly created or newly
rebranded goods or services.
Quality function deployment (QFD)

a process for determining

customer requirements and
translating them into the
attributes that each functional
area can understand and act on

house of quality is a graphic

technique for defining the
relationship between customers
desires and product (or service).
Issues for Product
Design
Six Important Techniques in Designing a
Product

Robust Design
Modular Design
Computer-Aided Design (CAD)
Computer-Aided Manufacturing
(CAM)
Virtual Reality Technology
Value Analysis
 Robust Design
A design where small variations in
production or assembly do not
adversely affect the product
 Modular Design

A design in which parts or components of a

product are subdivided into modules that are
easily interchanged or replaced
 Computer-Aided Design (CAD)
the use of computers to develop and document a
product

Extensions of CAD:

Design for
Manufacture and 3-D Object
Assembly (DFMA) Modelling
software

Focuses on the effect An extension of CAD

of design on that builds small
assembly prototype
Computer-Aided Manufacturing (CAM)

The use of information technology

to control machinery
Benefits of CAD and CAM
Product Quality
Shorter Design Time
Production Cost reductions
Database Availability
New Range of Capabilities
Virtual Reality Technology
Form of communication in which
images substitute for reality and
tech and typically allow the user to
respond interactively
 Value Analysis
A review of successful products
that takes place during the
production process.
Ethics, Environmentally-Friendly
Designs and Sustainability
 Sustainability
A production system that supports
conservation and renewal of sources
 Systems and Life Cycle
Perspectives

Systems Perspective
-View a product in terms of its impact on sustainability

Life Cycle Perspective

-part of a (LCA) Life cycle Assessment initiative. LCA is part
of the ISO 14000; assesses the environmental impact of product
Goals for ethical, environment-friendly designs

Develop safe and more environmentally sound products

Minimize wast of raw materials
Reduce environmental liabilities
Increase cost-effectiveness of complying with
environmental regulations
Be recognized as good corporate citizen.
Guidelines for ethical, environment-friendly designs

1. Make products recyclable.

2. Use recycled materials.

3. Use less harmful ingredients.

4. Use lighter components.

5. Use less energy.

6. Use less material.

Law and Industry Standards

Laws and Industry standards can help

operations managers make ethical and socially
responsible decisions
Time-Based Competition
Time-Based Competition
Competition based on time; rapidly
developing products and moving them to
market
Strategies
Purchasing Technology by Acquiring a firm

Joint Ventures Alliances

Firms establishing joint Cooperative agreements

ownership to pursue new that all firms to remain
products or markets. independent, but pursue
strategies consistent
with their individual
missions.
Defining a Product
 Defining a Product

Function what it is to do

Physical Aspect what it looks like

 Defining a Product

Engineering Drawing Bill of Material

A drawing that shows the A list of components, their

dimensions, tolerances, description, and the quantity
materials, and finishes of a of each recquired to make
component one unit of a product
Make-or-Buy Decisions

The choice between producing a component

or a service and purchasing it from an outside
source
Group Technology

A product and component coding

system that specifies the type of
processing and the parameters of the
processing; it allows similar products to
be grouped
Documents for Production
Assembly drawing
- an explode view of the product.

Assembly chart
- a graphic means of identifying how components flow into
subassemblies and final products.

Route sheet
- a listing of the operations necessary to produce a component
with the material specified in the bill of material.

Work order
- an instructions to make a given quantity of a particular item.

Engineering change notices (ECN)

- a correction or modification of an engineering drawing or bill
of material.

Configuration management
- a system by which a products planned and changing
components are accurately identified.
Product Life-Cycle Management (PLM)
- software programs that tie together many phases of product design and
manufacture.

Service Design
- is the activity of planning and organizing people, infrastructure,
communication and material components of a service in order to improve its quality
and the interaction between the service provider and its customers.

Application of Design Trees to Product Design

1. Be sure that all possible alternatives and states of nature are included in
the tree. This includes an alternative of doing nothing.
2. Payoffs are entered at the end of the appropriate branch.
3. The objective is to determine the expected value of each course of action
and prune the tree to find the alternative with the best expected value.

Transition to Production
- it identifies customer requirements, discusses product concept, and covers
master scheduling and risk analysis, as well as design considerations, prototypes,
and tooling essentials. Among other things, it also explains how to identify and
augment facility requirements, initiate production ramp up, evaluate packaging,
and institute defect control.