Design Goods Slides

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  • 1. Mini-Presentation
    • Describe an example of product or service design from your experience
  • 3 to 4 minutes presentation
  • Great opportunity to secure your participation grade!

2. Outlines: Design of Goods and Services

  • Trend in New Product/Service Design and Development
  • Product Life Cycles, Life Cycle and Strategy
  • Product Design and Development System
  • Sequential Design and Concurrent Engineering
  • Application of Decision Tree to Product Design
  • Quality Function Deployment (QFD):Translating Customer Attributes into Product Characteristics:
  • Organizing for Product Development

3. Trends in New Product/Service Design and Development

  • SHIFT TOWARD A SERVICE ECONOMY
  • New product design and innovation has been shifting away from manufacturing and toward the service sector.
  • SHIFT TOWARD INFORMATION AND COMMUNICATIONS TECHNOLOGY
  • Information revolution demanded new product and service design and development.
  • GLOBALIZATION OF MARKETS
  • A firm needs a product design robust enough to sell vigorously in foreign markets.

4. Trends in New Product/Service Design and Development

  • RISE OF CONSUMERISM
  • Sellers of goods and services must now listen to customers before deciding what to offer.
  • CRITICAL IMPORTANCE OF TIME
  • Time has come to dominate the product/service design and development process.
  • QUALITY RULES
  • A poor understanding of customers needs almost guarantees failures in design quality in addition to potentialfailures in quality of conformance.

5. Product Life Cycles Introduction Growth Maturity Decline Standardization Less rapid product changes - more minor changes Optimumcapacity Increasing stability of process Long production runs Product improvement and cost cutting Little product differentiation Cost minimization Over capacity in the industry Prune line to eliminate items not returning good margin Reduce capacity Forecasting critical Product and process reliability Competitive product improvements and options Increase capacity Shift toward product focused Enhance distribution Product design and development critical Frequent product and process design changes Short production runs High production costs Limited models Attention to quality Best period to increase market share R&D product engineering critical Practical to change price or quality image Strengthen niche Cost control critical Poor time to change image, price, or quality Competitive costs become critical Defend market position OM Strategy/Issues Company Strategy/Issues HDTV CD-ROM Color copiers Drive-thru restaurants Fax machines Station wagons Sales 3 1/2 Floppy disks Internet 6. Product Life Cycle, Sales, Cost, and Profit Sales, Cost & Profit. Introduction Maturity Decline Growth Cost of Development & Manufacture Sales Revenue Time Cash flow Loss Profit 7. Product Life Cycle Introduction

  • Fine tuning
    • research
    • product development
    • process modification and enhancement
    • supplier development

8. Product Life Cycle Growth

  • Product design begins to stabilize
  • Effective forecasting of capacity becomes necessary
  • Adding or enhancing capacity may be necessary

9. Product Life Cycle Maturity

  • Competitors now established
  • High volume, innovative production may be needed
  • Improved cost control, reduction in options, paring down of product line

10. Product Life Cycle Decline

  • Unless product makes a special contribution, must plan to terminate offering
  • Successful example of reviving products profitability in the decline stage: Tamagochi, simple-function camera

11. Percent of Sales From New Product 12. Design and Development Criteria

  • PRODUCT/SERVICE QUALITY
  • Design-measured customer satisfaction
  • Conformance--Actual results versus specifications
  • Features
  • Durability
  • Serviceability and others
  • TIME TO MARKET (DEVELOPMENT SPEED)
  • Elapsed time from conception to launch
  • Time required to recover investments

13. Design and Development Criteria

  • DESIGN AND DEVELOPMENT COSTS
  • One-time development costs
  • Total costs to the customer (design, development, and manufacturing)
  • GENERAL
  • Percentage of sale from new products
  • Market share (new and sustaining)
  • REGULATION AND STANDARDS
  • ISO 9000
  • UL, CCIB, FAC, IEEE

14. Product Development Stages

  • Idea generation
  • Assessment of firms ability to carry out
  • (Form Product Development Team)
  • Customer Requirements
  • Functional Specification
  • Product Specifications
  • Design Review
  • Test Market
  • Introduction to Market
  • Evaluation

Scope of design for manufacturability and value engineering 15. Product Development without Coordination As Marketinginterpretedit. 1984-1994 T/Maker Co . Asthecustomer wanted it. 1984-1994 T/Maker Co . AsEngineeringdesigned it. 1984-1994 T/Maker Co. As Operations made it. 1984-1994 T/Maker Co. 16. Managing Design and Development Process

  • Planning, organizing, staffing, leading, and controlling the limited resources
  • SEQUENTIAL DESIGN AND DEVELOPMENT
  • Before 1985, most American firms have organized their product design and development process sequentially. The sequence typically emerges as each functional area completes its part of the project before passing on the results to the next operation.

17. Managing Design and Development Process

  • SHORTCOMINGS:
    • Frequent engineering changes (before and after product launch)
    • Ineffective communication
    • Lack of prospective thinking.
    • Longer design and development lead time

18. Managing Design and Development Process

  • CONCURRENT DESIGN AND DEVELOPMENT (CONCURRENT ENGINEERING)
  • This method sets up a comprehensive process for completing the steps in design and development through a continuing involvement of cross-functional teams of organization members.

19. Managing Design and Development Process

  • MAIN BENEFITS:
  • Shorter development cycle
  • Better cross-functional communication
  • Teamwork
  • Clear perspective.
  • In practice, concurrent engineering and sequential process are both important

20. 72-Seat Regional Propeller Aircraft: Q400 Project 21. Snapshot of Aircraft Development Beginning in spring 1996, about 380 engineers and professionals from Bombardier and its major suppliers work together in a football-size design department for the Joint Definition Phase of Q400. In this phase, all major disciplines involved in aircraft design are represented. They included engineering, design, tooling, manufacturing, marketing, sales, procurement, customer/field support, spare parts, training, publications and many more. This phase also involved refining project objectives and further negotiations. Such a co-location of company engineers and suppliers benefits both parties. It facilitates superior communication among all functions and leverages suppliers' knowledge so that new process technology can be incorporated into product development. 22. Snapshot of Aircraft Development Milestones in this 6-month JDP, including different Deign Reviews, were to determine specific targets for delivering the commitments. These iterative and interactive loops are to drive and check the detailed timing and specs from all areas. When this process was completed, it was subject to a series of Participant Exit Reviews to freeze every interface design of different structures and systems. When the Project Director accepted that review, the representatives and suppliers involved could then exit the JDP process to complete their detailed design of items under their responsibility and prepare for production. 23. Activities and Responsibilities of Concurrent Engineering

  • CONCEPTUAL DESIGN
  • Marketing:Proposes and investigates product concept
  • Engineering:Proposes new technologies and simulates performance
  • Operations:Proposes and investigates manufacturing /delivery process
  • PRODUCT DESIGN
  • Marketing:Defines markets and specific objectives
  • Engineering:Provides design, chooses components
  • Operations:Coordinates process structure with key suppliers; estimates costs

24. Activities and Responsibilities of Concurrent Engineering

  • PRODUCT AND PROCESS ENGINEERING
  • Marketing:Conducts custome