BITS Pilani Pilani Campus

Operations Management QMZG526 (Lecture No. 8)

Design of Goods & Services

PB Venkataraman Mechanical Engineering

BITS Pilani, Pilani Campus

Product Life Cycle

2

Introduction Growth Maturity Decline

Sales

Cost of development

Cost of production

Cash flow

State as: Low, High, Increase, Decrease, Stable

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Product Life Cycle

3

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Product-by-value-analysis

4

Reduce cost / increase price

Stay ahead

Get rid of Enlarge market

Low High

High

Individual contribution

Tota

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ntr

ibu

tio

n

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Product Development Stages

5

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Strategy Vs Product Design

6

Strategy Product design techniques

Cost 1. Standardization

2. Rationalization

3. VA/VE

Convenience 1. QFD

2. DfX

Differentiation (Quality) 1. Mass customization

2. Concurrent Engineering

3. Rapid Prototype Development

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Standardization

7

• Is the process of reducing variations

• Variations can be due to sporadic or assignable causes

• Assignable causes are detectable and can be managed instantly

• Sporadic causes accumulate over a period of time to result in a

product complexity, which requires correction at product design

• Standardization can be in the form of ‘combination’ or ‘reduction’

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Rationalization

8

• Is the process of reducing complexity

• Complexity is significant in ‘organic growth’

• Rationalization is achieved generally through elimination

• Product-value-analysis is a useful tool to identify candidates

for rationalization

• The key challenge to rationalization is the resistance to

change status-quo

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Value Analysis / Value Engineering

9

• Value of a product / service can be looked as:

o Cost value – the value for which the product is sold / purchased

o Functional value – the value realized by the consumer on its usage

o Esteem value – the intangible value attached to the brand by the consumer

• Value engineering is the process by which the value of the product is

increased retaining the cost value

• Alternatively, the value perceived by the consumer is increased

without increasing the cost to the consumer

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QFD

10

Left to the students to self-learn from the textbook

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DfX

11

• Design for manufacturing (ex., tolerancing)

• Design for assembly (ex., least tools)

• Design for maintainability (ex., MTTR, Modularization)

• Design for service (ex., easy access)

• Design for reliability (ex., MTBF)

• Design for sustainability (environment) (ex., disposal)

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Mass Customization

12

• Mass production is to exploit the economy of scale

• Customization is the way of personalizing product and service

• Mass customization combines the benefits of both

• Modularized design is the key to mass customization

• Mass produced sub-assemblies / modules get customized

when assembled to specification

• Sub-assemblies / modules are stocked and assembled to order

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Concurrent Engineering

13

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Rapid Prototyping

14

• Is the technique / tool used to reduce new product development period

• Very useful where time-to-market is the key to success of new product

launch

• The Rapid Prototyping Equipment (3D printer) generates the product /

component model from CAD files

• The model may not be functional but gives the touch and feel of the new

product

• Faro-Arm is a variant, which is useful to reconstruct the CAD drawings

from a sample part. This method is useful in reverse engineering

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End of Lecture 8