Transcript PRODUCTIONS/OPERATIONS MANAGEMENT
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CHAPTER 4
Product and Service Design
Operations Management, Eighth Edition, by William J. Stevenson Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
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Product and Service Design
Major factors in design strategy Cost Quality Time-to-market Customer satisfaction Competitive advantage Product and service design – or redesign – should be closely tied to an organization’s strategy
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Product or Service Design Activities
Translate customer wants and needs into product and service requirements Refine existing products and services Develop new products and services Formulate quality goals Formulate cost targets Construct and test prototypes Document specifications
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Reasons for Product or Service Design
Economic Social and demographic Political, liability, or legal Competitive Technological
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Objectives of Product and Service Design Main focus Customer satisfaction Secondary focus Function of product/service Cost/profit Quality Appearance Ease of production/assembly Ease of maintenance/service
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Designing For Operations
Taking into account the capabilities of the organization in designing goods and services
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Legal, Ethical, and Environmental Issues Legal FDA, OSHA, IRS Product liability Uniform commercial code Ethical Releasing products with defects Environmental EPA
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Regulations & Legal Considerations
Product Liability -
A manufacturer is liable for any injuries or damages caused by a faulty product.
Uniform Commercial Code -
Products carry an implication of merchantability and fitness.
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Designers Adhere to Guidelines
Produce designs that are consistent with the goals of the company Give customers the value they expect Make health and safety a primary concern Consider potential harm to the environment
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Other Issues in Product and Service Design Product/service life cycles How much standardization Product/service reliability Range of operating conditions
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Life Cycles of Products or Services
Figure 4.1
Growth Maturity Saturation Introduction Time Decline
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Standardization
Standardization Extent to which there is an absence of variety in a product, service or process Standardized products are immediately available to customers
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Mass Customization
• Mass customization: A strategy of producing standardized goods or services, but incorporating some degree degree of customization Delayed differentiation Modular design
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Delayed Differentiation
• Delayed differentiation is a postponement tactic Producing but not quite completing a product or service until customer preferences or specifications are known
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Modular Design
Modular design
is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged. It allows: easier diagnosis and remedy of failures easier repair and replacement simplification of manufacturing and assembly
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Reliability
Reliability
: The ability of a product, part, or system to perform its intended function under a prescribed set of conditions
Failure
: Situation in which a product, part, or system does not perform as intended
Normal operating conditions
: The set of conditions under which an item’s reliability is specified
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Improving Reliability
• Component design • Production/assembly techniques • Testing • Redundancy/backup • Preventive maintenance procedures • User education • System design
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Product Design
Product Life Cycles Robust Design Concurrent Engineering Computer-Aided Design Modular Design
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Robust Design
Robust Design: Design that results in products or services that can function over a broad range of conditions
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Reverse Engineering
Reverse engineering is the
dismantling and inspecting of a competitor’s product to discover product improvements.
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Research & Development (R&D)
Organized efforts to increase scientific knowledge or product innovation & may involve:
Basic Research
advances knowledge about a subject without near-term expectations of commercial applications.
Applied Research
achieves commercial applications.
Development
converts results of applied research into commercial applications.
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Manufacturability
Manufacturability
is the ease of fabrication and/or assembly which is important for:
Cost Productivity Quality
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Concurrent Engineering
Concurrent engineering
is the bringing together of engineering design and manufacturing personnel early in the design phase.
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Computer-Aided Design
Computer-Aided Design (CAD)
is product design using computer graphics.
increases productivity of designers, 3 to 10 times creates a database for manufacturing information on product specifications provides possibility of engineering and cost analysis on proposed designs
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Recycling
Recycling: recovering materials for future use Recycling reasons Cost savings Environment concerns Environment regulations
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Reliability
Reliability
: The ability of a product, part, or system to perform its intended function under a prescribed set of conditions
Failure
: Situation in which a product, part, or system does not perform as intended
Normal operating conditions
of conditions under which an item’s reliability is specified : The set
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Reliability is a Probability
Probability that the product or system will: Function when activated Function for a given length of time Independent events Events whose occurrence or nonoccurrence do not influence each other Redundancy The use of backup components to increase reliability
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Rule 1
Lamp 1
.90
Lamp 2
.80
.90 x .80 = .72
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Rule 2
.80
Lamp 2 (backup)
.90
Lamp 1 .90 + (1-.90)*.80 = .98
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Rule 3
.70
Lamp 3 (backup for Lamp 2)
.80
Lamp 2 (backup for Lamp1)
.90
Lamp 1 1 – P(all fail) 1-[(1-.90)*(1-.80)*(1-.70)] = .994
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Example S-1 Reliability
Determine the reliability of the system shown
.90
.92
.98
.90
.95
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Example S-1 Solution
The system can be reduced to a series of three components
.98
.90+.90(1-.90) .95+.92(1-.95) .98 x .99 x .996 = .966
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Improving Reliability
Component design Production/assembly techniques Testing Redundancy/backups Preventive maintenance procedures User education System design
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PROBLEM#1
A system consists of three identical components. In order for the system to perform as intended, all of the components must perform.
Each has the same probability of performance. If the system is to have a 0.92 probability of performing, what is the minimum probability of performing needed by each of the individual components?
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PROBLEM#2
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PROBLEM#3
Due to the extreme cost of interrupting production, a firm has two standby machines available in case a particular machine breaks down. The machine in use has a reliability of .94, and the backups have reliabilities of .90 and .80. In the event of a failure, either backup can be pressed into service. If one fails, the other backup can be used. Compute the system reliability.
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