3–13–1

3–23–2 Chapter Three Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

3–33–3 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. LO3–1: Know the issues associated with product design and the typical processes used by companies. LO3–2: Illustrate how different criteria can impact the design of a product. LO3–3: Contrast how service products can have different design criteria compared to manufactured products. LO3–4: Evaluate the economic impact of a new product on a company. LO3–5: Illustrate how product development is measured in a company.

3–43–4 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Companies continuously bring new products to market Product design is integral to success Product design differs significantly depending on the industry Companies often outsource major functions – Contract manufacturer: an organization capable of manufacturing and/or purchasing all the components needed to produce a finished product

3–53–5 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Core competency: the one thing a company can do better than its competitors A core competency has three characteristics: – It provides potential access to a wide variety of markets – It increases perceived customer benefits – It is hard for competitors to imitate

3–63–6 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Sun Microsystems designs the SPARC chips used in its high-performance workstations but subcontracts the fabrication of those chips to specialized chip makers (while maintaining ownership of the intellectual property). A pharmaceutical company may purchase information on genetic targets from a genomics company, contract with a specialist in combinatorial chemistry for rapid synthesis and screening of candidate compounds, and even utilize a contract research organization to conduct clinical trials but retain ownership of the intellectual property (patents, experimental data, trademarks, etc.) of the drug that eventually comes to market.

3–73–7 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Dell has developed a set of highly specialized systems that support its make-to-order operating strategy. Dell has created a set of proprietary logistical processes that range from the design of its web page through its information systems infrastructure (a process that has proved difficult for others to imitate). Dell owns the data about what people are buying and in which combinations. It also has been vertically integrated into final assembly facilities that are designed to efficiently produce in lot sizes of one. Finally, while it outsources components, Dell uses longer-term relationships with its suppliers and links them into its information system to support quick response.

3–83–8 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Defer judgment Build on the ideas of others Stay focused on the topic One person at a time Go for quantity Encourage wild ideas Be visual

3–93–9 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Phase 0: Planning Phase 1: Concept development Phase 2: System-level design Phase 3: Design detail Phase 4: Testing and refinement Phase 5: Production ramp-up

3–10 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Precedes project approval Begins with corporate strategy Includes assessment of technology developments and market objectives Output is the project mission statement

3–11 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Needs of the target market are identified Alternative product concepts are generated and evaluated One or more concepts are selected for further development and testing – Concept: a description of the form, function, and features of a product

3–12 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Definition of the product architecture Decomposition of the product into subsystems and components Final assembly scheme for the production system is usually defined Output: – Geometric layout of the product – Functional specifications for each subsystem – Preliminary process flow diagram

3–13 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Complete specification of the geometry, materials, and tolerances for all parts Identification of all the standard parts to be purchased from suppliers Process plan is established Tooling is designed Output: – Drawings describing the geometry of each part and its tooling – Specifications of purchased parts – Process plan

3–14 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Construction and evaluation of multiple preproduction versions of product – Same geometry and material as production version – Not necessarily fabricated with the actual production processes Prototypes tested to determine if the product will work as designed

3–15 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Product is made using the intended production system Need to train workers and resolve any remaining problems Products may be supplied to preferred customers for evaluation Transition to ongoing production is gradual

3–16 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.

3–17 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Technology-push products: firm begins with new technology and looks for a market Platform products: built around a preexisting technological subsystem Process-intensive products: production process has an impact on the properties of the product – Product design cannot be separated from process design

3–18 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Customized products: new products are slight variations of existing configurations High-risk products: technical or market uncertainties create high risks of failure Quick-build products: rapid modeling and prototyping enables many design-build-test cycles

3–19 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Complex systems: systems must be decomposed into several subsystems and many components Generic: begins with a market opportunity and team selects appropriate technologies to meet customer needs

3–20 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. 3-20

3–21 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Quality Function Deployment Value Analysis/ Value Engineering Ideal Customer Product House of Quality

3–22 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Interfunctional teams from marketing, design engineering, and manufacturing Begins with listening to the customer – Uses market research – Customer preferences are defined and broken down into customer requirements House of quality

3–23 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. QFD involves converting the expectations and demands of the customers into clear objectives, which are then translated into the vehicle specification. For example, Topspeed found that passengers became uncomfortable if the car rolled more than two degrees and side acceleration exceeded 13.2 feet per second squared. These data were used to help define design criteria for the chassis engineers.

3–24 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Customer requirements information forms the basis for this matrix, used to translate them into operating or engineering goals

3–25 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Purpose is to simplify products and processes Objective is to achieve better performance at a lower cost while maintaining all functional requirements defined by the customer – Does the item have any design features that are not necessary? – Can two or more parts be combined into one? – How can we cut down the weight? – Are there nonstandard parts that can be eliminated?

3–26 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Traditional approach – “We design it, you build it” or “over the wall” Concurrent engineering – “Let’s work together simultaneously”

3–27 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Greatest improvements related to DFMA arise from simplification of the product by reducing the number of separate parts: – During the operation of the product, does the part move relative to all other parts already assembled? – Must the part be of a different material or be isolated from other parts already assembled? – Must the part be separate from all other parts to allow the disassembly of the product for adjustment or maintenance?

3–28 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.

3–29 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.

3–30 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Ecodesign: the incorporation of environmental considerations in the design and development of products or services – The whole life cycle is considered – The product is considered as a system – A multi-criteria approach is used Application of ecodesign can benefit business

3–31 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. BioBag biodegradable and compostable plastic bags are used for carrying produce and are supplied on a roll. Text on the bag says “This bag is certified compostable. Use, reuse, then compost.”

3–32 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Service products are very different Direct customer involvement introduces significant variability in the process Questions to address: – How will this variability be addressed? – What are the implications for operational cost and the customer service experience?

3–33 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Service experience fit – The new service should fit into the current service experience for the customer Operational fit – Existing processes should be able to support the operation of the new service Financial impact – Introducing a new service should be financially justified

3–34 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.

3–35 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Using measurable factors to help determine: – Go/no-go milestones – Operational design and development decisions Building a base-case financial model A financial model consisting of major cash flows – Sensitivity analysis for “what if” questions

3–36 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.

3–37 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. Longer product development time Higher/lower sales volume Higher/lower sales price Higher/lower development costs

3–38 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved. A steady stream of new products is important to competitiveness Firms must respond to changing customer needs and competitor moves Ability to identify opportunities and bring new products to market is critical – Must also be efficient

3–39 Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.