5

Design of Goods
and Services

PowerPoint presentation to accompany

Heizer and Render
Operations Management, 10e
Principles of Operations Management, 8e

PowerPoint slides by
nijati. kamili

2011 Pearson Education, Inc. publishing as Prentice Hall

5-1

Product Development
Ideas
System

Figure 5.3

Ability
Customer Requirements
Functional Specifications
Scope of
product
development
team

Product Specifications Scope for

design and
Design Review
engineering
teams
Test Market
Introduction
Evaluation

2011 Pearson Education, Inc. publishing as Prentice Hall

5-2

Quality Function
Deployment
1. Identify customer wants
2. Identify how the good/service will satisfy
customer wants
3. Relate customer wants to product hows
4. Identify relationships between the firms hows
5. Develop importance ratings
6. Evaluate competing products
7. Compare performance to desirable technical
attributes
2011 Pearson Education, Inc. publishing as Prentice Hall

5-3

QFD House of Quality

What the
customer
wants

Target values

How to satisfy
customer wants

Relationship
matrix

Competitive
assessment

Customer
importance
ratings

Interrelationships

Weighted
rating

Technical
evaluation
2011 Pearson Education, Inc. publishing as Prentice Hall

5-4

House of Quality Example

Your team has been charged with
designing a new camera for Great
Cameras, Inc.
The first action is
to construct a
House of Quality

2011 Pearson Education, Inc. publishing as Prentice Hall

5-5

House of Quality Example

Interrelationships

What the
Customer
Wants

Technical
Attributes and
Evaluation

What the
customer
wants

Lightweight
Easy to use
Reliable
Easy to hold steady
Color correction
2011 Pearson Education, Inc. publishing as Prentice Hall

Relationship
Matrix

Analysis of
Competitors

How to Satisfy
Customer Wants

Customer
importance
rating
(5 = highest)

3
4
5
2
1
5-6

House of Quality Example

Interrelationships

Relationship
Matrix

2011 Pearson Education, Inc. publishing as Prentice Hall

Ergonomic design

Paint pallet

Auto exposure

Auto focus

Technical
Attributes and
Evaluation

Aluminum components

Low electricity requirements

What the
Customer
Wants

Analysis of
Competitors

How to Satisfy
Customer Wants

How to Satisfy
Customer Wants

5-7

House of Quality Example

Interrelationships

What the
Customer
Wants

High relationship
Medium relationship
Low relationship
Lightweight
Easy to use
Reliable
Easy to hold steady
Color corrections

Relationship
Matrix

Analysis of
Competitors

How to Satisfy
Customer Wants

Technical
Attributes and
Evaluation

3
4
5
2
1

Relationship matrix
2011 Pearson Education, Inc. publishing as Prentice Hall

5-8

House of Quality Example

Interrelationships

What the
Customer
Wants

Relationship
Matrix

Analysis of
Competitors

How to Satisfy
Customer Wants

2011 Pearson Education, Inc. publishing as Prentice Hall

Ergonomic design

Paint pallet

Auto exposure

Auto focus

Aluminum components

Relationships
between the
things we can do

Low electricity requirements

Technical
Attributes and
Evaluation

5-9

House of Quality Example

Interrelationships

What the
Customer
Wants

Relationship
Matrix

Analysis of
Competitors

How to Satisfy
Customer Wants

Technical
Attributes and
Evaluation

Lightweight
3
Easy to use
4
Reliable
5
Easy to hold steady
2
Color corrections
1
Our importance ratings

22

27 27

32

25

Weighted
rating
2011 Pearson Education, Inc. publishing as Prentice Hall

5 - 10

Interrelationships

How to Satisfy
Customer Wants

Relationship
Matrix

Company A

Technical
Attributes and
Evaluation

How well do
competing products
meet customer wants
Lightweight
3
Easy to use
4
Reliable
5
Easy to hold steady
2
Color corrections
1
Our importance ratings
2011 Pearson Education, Inc. publishing as Prentice Hall

Company B

What the
Customer
Wants

Analysis of
Competitors

House of Quality Example

G
G
F
G
P
22

P
P
G
P
P

5
5 - 11

Interrelationships

How to Satisfy
Customer Wants

2 circuits

2 to

0.5 A

Target
values
(Technical
attributes)

75%

Technical
Attributes and
Evaluation

Panel ranking

Relationship
Matrix

Failure 1 per 10,000

What the
Customer
Wants

Analysis of
Competitors

House of Quality Example

Company A 0.7 60% yes 1

ok G

Technical Company B 0.6 50% yes 2

evaluation
Us
0.5 75% yes 2

ok F

2011 Pearson Education, Inc. publishing as Prentice Hall

ok G
5 - 12

Company B

Company A

Ergonomic design

Paint pallet

Auto exposure

Auto focus

Aluminum components

Completed
House of
Quality

Low electricity requirements

House of Quality Example

Lightweight

G P

Easy to use

G P

Reliable

F G

Easy to hold steady 2

G P

Color correction

2011 Pearson Education, Inc. publishing as Prentice Hall

Panel ranking

Failure 1 per 10,000

2 to

75%

0.5 A

Target values
(Technical
attributes)

2 circuits

Our importance ratings 22 9 27 27 32 25

Company A

0.7 60% yes

ok

Technical Company B
evaluation Us

0.6 50% yes

ok

0.5 75% yes

ok

5 - 13

House of Quality Sequence

Deploying resources through the
organization in response to
customer requirements

Customer
requirements

Design
characteristics

House
1

Design
characteristics

Specific
components

House
2

Specific
components

Production
process

House
3

Production
process

Quality
plan

House
4

Figure 5.4
2011 Pearson Education, Inc. publishing as Prentice Hall

5 - 14

Organizing for Product

Development
Historically distinct departments
Duties and responsibilities are
defined
Difficult to foster forward thinking

A Champion
Product manager drives the product
through the product development
system and related organizations
2011 Pearson Education, Inc. publishing as Prentice Hall

5 - 15

Organizing for Product

Development
Team approach
Cross functional representatives
from all disciplines or functions
Product development teams, design
for manufacturability teams, value
engineering teams

Japanese whole organization

approach
No organizational divisions
2011 Pearson Education, Inc. publishing as Prentice Hall

5 - 16

Manufacturability and
Value Engineering
Benefits:
1. Reduced complexity of products
2. Reduction of environmental impact
3. Additional standardization of products
4. Improved functional aspects of product
5. Improved job design and job safety
6. Improved maintainability (serviceability) of
the product
7. Robust design
2011 Pearson Education, Inc. publishing as Prentice Hall

5 - 17

Cost Reduction of a Bracket

via Value Engineering

Figure 5.5
2011 Pearson Education, Inc. publishing as Prentice Hall

5 - 18

Issues for Product

Development
Robust design
Modular design
Computer-aided design (CAD)
Computer-aided manufacturing (CAM)
Virtual reality technology
Value analysis
Environmentally friendly design
2011 Pearson Education, Inc. publishing as Prentice Hall

5 - 19

Robust Design
Product is designed so that small
variations in production or
assembly do not adversely affect
the product
Typically results in lower cost
and higher quality

2011 Pearson Education, Inc. publishing as Prentice Hall

5 - 20

Modular Design
Products designed in easily
segmented components
Adds flexibility to both production
and marketing
Improved ability to satisfy customer
requirements

2011 Pearson Education, Inc. publishing as Prentice Hall

5 - 21

Computer Aided Design

(CAD)
Using computers to
design products and
prepare engineering
documentation
Shorter development
cycles, improved
accuracy, lower cost
Information and
designs can be
deployed worldwide
2011 Pearson Education, Inc. publishing as Prentice Hall

5 - 22

Extensions of CAD
Design for Manufacturing and Assembly
(DFMA)
Solve manufacturing problems during the
design stage

3-D Object Modeling

Small prototype
development

CAD through the

internet
International data
exchange through STEP
2011 Pearson Education, Inc. publishing as Prentice Hall

5 - 23

Computer-Aided
Manufacturing (CAM)
Utilizing specialized computers
and program to control
manufacturing equipment
Often driven by the CAD system
(CAD/CAM)

2011 Pearson Education, Inc. publishing as Prentice Hall

5 - 24

Benefits of CAD/CAM
1. Product quality
2. Shorter design time
3. Production cost reductions
4. Database availability
5. New range of capabilities

2011 Pearson Education, Inc. publishing as Prentice Hall

5 - 25

Virtual Reality Technology

Computer technology used to
develop an interactive, 3-D model of
a product from the basic CAD data
Allows people to see the finished
design before a physical model is
built
Very effective in large-scale designs
such as plant layout
2011 Pearson Education, Inc. publishing as Prentice Hall

5 - 26

Value Analysis
Focuses on design improvement
during production
Seeks improvements leading either
to a better product or a product
which can be produced more
economically with less
environmental impact

2011 Pearson Education, Inc. publishing as Prentice Hall

5 - 27

Ethics, Environmentally
Friendly Designs, and
Sustainability
It is possible to enhance productivity
and deliver goods and services in an
environmentally and ethically
responsible manner
In OM, sustainability means ecological
stability
Conservation and renewal of resources
through the entire product life cycle
2011 Pearson Education, Inc. publishing as Prentice Hall

5 - 28