Chapter 1, Heizer/Render, 5th edition
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Transcript Chapter 1, Heizer/Render, 5th edition
Operations
Management
Design of Goods and Services
1
Humor in Product Design
As the customer wanted it
© 1984-1994 T/Maker Co.
As Operations made it
© 1984-1994 T/Maker Co.
As Marketing
interpreted it
© 1984-1994 T/Maker Co.
As Engineering
designed it
© 1984-1994 T/Maker Co.
2
Product Development System
Idea generation
Assessment of firm’s ability to carry out
Customer Requirements
Functional Specification
Product Specifications
Design Review
Test Market
Introduction to Market
Evaluation
3
Quality Function Deployment
Determines what will satisfy the customer
Translates those desires into specific product
characteristics
Product design process using cross-functional
teams
Marketing, engineering, manufacturing
“House of quality” tool used
8
Manufacturability and
Value Engineering
Help improve pdt’s design, pdn, maintainability & use
Benefits:
reduced complexity of products
additional standardization of products
improved functional aspects of product
improved job design and job safety
improved maintainability of the product
Best cost-avoidance technique
Focus on achieving functional specs in the most
optimal manner
9
Cost Reduction of a Bracket via
Value Engineering
10
Issues for Product Development
Robust design
Modular design
Computer-aided design – DFMA; 3D object
modeling
Computer-aided manufacturing
Virtual Reality Technology
Value analysis
Environmentally friendly design
11
Robust Design
Product is designed so that small variations in
production or assembly do not adversely
affect the quality of the product e.g IC
amplifier developed in AT&T
12
Modular Design
Products designed in easily segmented
components.
Adds flexibility to both production and
marketing
Customization possible through modularity
E.g. high-fidelity stereos, Harley Davidson,
McDonalds, Dell Computers, etc
13
Computer Aided Design (CAD)
Interactively designing & documenting products
at a computer terminal or work station
Design engineer
develops rough
sketch of product
Uses computer to
draw product
Often used with CAM
© 1995 Corel Corp.
14
Benefits of CAD
Shorter development cycles
Better products
Accurate flow of info to other departments
Helpful for tool-designers and programmers of
CAM
Cost effective method for making design
changes
15
Extensions of CAD
Design for Manufacturing and Assembly
(DFMA)
3-D Object Modeling
CAD/CAM – CAD info is translated into
machine control instructions (CAM)
© 1995 Corel Corp.
16
Computer Aided Manufacturing (CAM)
Use of specialized computer programs to
direct and control manufacturing
equipment
CAD/CAM often used together
© 1995 Corel Corp.
17
Benefits of CAD/CAM
Production Flexibility
Product Quality
Shorter design time
Database availability
New capabilities
Example: rotate and depict objects in 3D form
Reduced production costs
18
Virtual Reality
Computer technology used to develop an
interactive, 3-D model of a product with the
help of images
Especially helpful in design of layouts (factory,
store, home, office)
19
Environmentally Friendly Designs
Goals include
Developing safe and environmentally sound products
Minimizing waste of raw materials and energy
Differentiating product from competitors
Reducing environmental liabilities
20
“Green” Manufacturing
Making environmentally sound products through
efficient processes
Make products recyclable e.g. Tuborg
Use recycled materials e.g. Scotch-Brite
Use less harmful ingredients
Use less energy
Use less material
21
Product Development Continuum
External Development Strategies
Alliances
Joint Ventures
Purchase Technology or Expertise by Acquiring the
Developer
Internal Development Strategies
Migrations of Existing Products
Enhancement to Existing Products
New Internally Developed Products
Internal ----------------Cost of Product Development------------------------- Shared
Lengthy ---------------Speed of Product Development-----Rapid and/or Existing
High --------------------- Risk of Product Development ------------------------ Shared
22
Product Definition
Engineering drawing
Shows dimensions, tolerances, &
materials
Shows codes for Group Technology
Bill of Material
Lists components, quantities &
where used
Shows product structure
23
Group Technology Characteristics
Parts grouped into families
Uses coding system
Similar, more standardized parts
Describes processing & physical
characteristics
Part families produced
in manufacturing cells
Mini-assembly lines
© 1984-1994 T/Maker Co. 26
Group Technology Code Example
4mm x 45° chamfer
80mm
60mm
Round Rod
Product Code:
1 5 3 1
112mm
Part function (round rod)
Material (steel)
Max. length (50 < L < 150)
Primary machine (lathe)
27
Group Technology Schemes Enable
Grouping of Parts
28
Moment-of-Truth at a Computer Company
Experience Detractors
Standard Expectations
I had to call more than once to
get through.
Only one local number needs to
be dialed
A recording spoke to me rather
than a person
I never get a busy signal
While on hold, I get silence,and
wonder if I am disconnected.
The operator sounded like he
was reading a form of routine
questions.
The operator sounded
uninterested
I felt the operator rushed me.
I get a human being to answer
my call quickly and he or she is
pleasant and responsive to my
problem
A timely resolution to my
problem is offered
The operator is able to explain
to me what I can expect to take
place
Experience Enhancers
The operator was
sincerely concerned and
apologetic about my
problem
He asked intelligent
questions that allowed
me to feel confident in
his abilities
The operator offered
various times to have
work done, to suit my
schedule
Ways to avoid future
problems were
suggested
29
Application of Decision Trees to Product
Design
Particularly useful when there are a series of
decisions and outcomes which lead to other
decisions and outcomes.
Considerations:
Include all possible alternatives and states of
nature - including “doing nothing”
Enter payoffs at end of branch
Approach determining expected values by
“pruning” tree
30
Operations
Management
Process Strategy
Process Strategies
Involves determining how to produce a good
or provide a service within constraints
Objective
Meet or exceed customer requirements
Meet cost & managerial goals
Has long-run effects
Production efficiency
Product & volume flexibility
Cost & quality
Fit of Process, Volume, and Variety
Low-Volume
(Intermittent)
High Variety
One or few units per
run, high variety
(allows customization)
Changes in modules
Modest runs, standardized
modules
Low Variety; Changes
in attributes (such as
grade, quality, size,
thickness, etc.)
Long runs only
Repetitive Process
(Modular)
Process focus
projects, job shop,
(print, carpentry)
Standard Register
High-Volume
(Continuous)
Mass
Customization
(difficult to achieve,
but huge rewards)
Repetitive
(autos, motorcycles)
Harley Davidson
Dell Computer Co.,
Levis Jeans
Product focus
(commercial baked
goods, steel, glass)
Steel, Cement
Process-Focused Strategy
Facilities are organized by process
Similar processes are together
Example: All drill presses are together
Low volume, high variety products
‘Jumbled’ flow
Product A
Operation
Other names
Job shop
1
Product B
2
3
Process-Focused Example
Custom Woodworking Shop
Cutting Planing Shaping Assembly Sanding Finishing
1
Job A
Job B
1
2
5
6
5
6
3
2
4
3
4
Drilling Turning
7
Process Focus - Pros & Cons
Advantages
Greater product flexibility
More general purpose equipment – equipments
not dedicated to one product
Disadvantages
High production cost per unit
More difficult production planning & control
Low equipment utilization (5% to 25%)
Process-Focus Examples
Bank
Hospital
Machine
Shop
Repetitive Focused Strategy
Facilities often organized by assembly lines
Characterized by modules
Parts & assemblies made in modules
Modules combined for many output options
Other names
Assembly line
Production line
E.g. auto-manufacturing, pc’s, house-hold appliances,
etc
Assembly Line Example
Raw Material
Components
4
2
Assemblies
1
Raw Material
3
Components
Product/Material Flow
Production Operation
5
Subassem.
Fin. Goods
7
Repetitive Focus - Considerations
Product focused process that uses modules
More structured than process-focused, less structured
than product focused
Enables semi-customization
Using modules, it enjoys economic advantage of
continuous process, and custom advantage of lowvolume, moderately high-variety model
Repetitive Focus - Examples
Fast
Food
Clothes
Dryer
McDonald’s
over 95 billion served
Truck
Repetitive Focus
Product-Focused Strategy
Facilities are organized by product
High volume, low variety
Conversion or further processing of undifferentiated
materials such as petroleum, chemicals, or beer
Follows a predetermined sequence of steps, but flow is
continuous rather than discrete – highly standardized
Other names
Line flow production
Continuous production
Production Process at
NUCOR Steel
Product Focus - Pros & Cons
Advantages
Lower production cost per unit
Lower but more specialized labor skills
Easier production planning and control
Higher equipment utilization (70% to 90%)
Disadvantages
Lower product flexibility
More specialized equipment
Product-Focused Examples
Soft Drinks
(Continuous,
then Discrete)
Paper (Continuous)
Mass Customization
Using technology and imagination to rapidly
mass-produce products that cater to unique
customer desires
Under mass customization the three process
models become so flexible that distinctions
between them blur, making variety and
volume issues less significant