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TransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-1?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458OperationsManagement

DesignofGoodsandServices

Chapter6TransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-2?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458OutlineGlobalCompanyProfile:RegalMarineGoodsandServicesSelectionProductStrategyOptionsGenerationofNewProductOpportunitiesProductLifeCyclesLifeCycleandStrategyEnvironmentallyFriendlyProductsProductDevelopmentProductDevelopmentSystemOrganizingforProductDevelopmentManufacturabilityandValueEngineeringTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-3?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458Outline-continuedIssuesforProductDevelopmentRobustDesignTime-basedCompetitionModularDesignComputer-AidedDesign(CAD)ValueAnalysisProduct-by-ValueAnalysisDefiningtheProductMake-or-buyDecisionsGroupTechnologyTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-4?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458Outline-continuedDocumentsforProductionServiceDesignDocumentsforServiceApplicationofDecisionTreestoProductDesignTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-5?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458LearningObjectivesIdentifyordefinetermsrelatedtoproductdesignExplain:Product-by-valueanalysisProductdocumentationConcurrentengineeringJapaneseapproachtoproductdevelopmentTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-6?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458RegalMarineGlobalmarket3-dimensionalCADreducedproductdevelopmenttimereducedproblemswithtoolingreducedproblemsinproductionAssemblylineJITTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-7?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458AsEngineeringdesignedit.?1984-1994T/MakerCo.AsOperationsmadeit.?1984-1994T/MakerCo.AsMarketinginterpretedit.?1984-1994T/MakerCo.Asthecustomerwantedit.?1984-1994T/MakerCo.HumorinProductDesignTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-8?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458Need-satisfyingofferingofanorganizationExampleP&GdoesnotselllaundrydetergentP&GsellsthebenefitofcleanclothesCustomersbuysatisfaction,notpartsMaybeagoodoraserviceWhatisaProduct?TransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-9?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ProductStrategyOptionsProductdifferentiationLowcostRapidresponseTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-10?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458GenerationofNewProductOpportunitiesEconomicchangeSociologicalanddemographicchangeTechnologicalchangePolitical/legalchangeChangesinmarketpracticeprofessionalstandardssuppliersanddistributorsTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-11?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ProductProductIdeaPackagePhysicalGoodFeaturesQualityLevelService(Warranty)Brand(Name)ProductComponentsTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-12?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ProductLifeCycleIntroductionGrowthMaturityDeclineTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-13?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ProductLifeCycle

IntroductionFinetuningresearchproductdevelopmentprocessmodificationandenhancementsupplierdevelopmentTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-14?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ProductLifeCycle

GrowthProductdesignbeginstostabilizeEffectiveforecastingofcapacitybecomesnecessaryAddingorenhancingcapacitymaybenecessaryTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-15?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ProductLifeCycle

MaturityCompetitorsnowestablishedHighvolume,innovativeproductionmaybeneededImprovedcostcontrol,reductioninoptions,paringdownofproductlineTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-16?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ProductLifeCycle

DeclineUnlessproductmakesaspecialcontribution,mustplantoterminateofferingTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-17?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ProductLifeCycle,Sales,Cost,andProfitIntroductionMaturityDeclineGrowthLossCostofDevelopment&ManufactureSalesRevenueNetRevenueTimeTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-18?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458PercentofSalesFromNewProductTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-19?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ProductsinVariousStagesofLifeCycleGrowthDeclineTimeSalesVirtualRealityRoller

BladesJetSkiBoeing727Intro-ductionMaturityTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-20?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458EnvironmentallySound

StrategyBenefitsSafeandenvironmentallysoundproductsMinimumrawmaterialandenergywasteProductdifferentiationEnvironmentalliabilityreductionCosteffectivecompliancewithenvironmentalregulationsRecognitionasgoodcorporatecitizenTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-21?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.074580500100015002000DevelopmentStageNumber1000Market

requirementDesignreview,Testing,Introduction25Ideas1750Product

specification100Functional

specification500FewSuccessesTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-22?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ProductDevelopmentStagesIdeagenerationAssessmentoffirm抯abilitytocarryoutCustomerRequirementsFunctionalSpecificationProductSpecificationsDesignReviewTestMarketIntroductiontoMarketEvaluationScopeofdesignformanufacturabilityandvalueengineeringteamsScopeofproductdevelopmentteamTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-23?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458IdeaGenerationStageProvidesbasisforentryintomarketSourcesofideasMarketneed(60-80%);engineering&operations(20%);technology;competitors;inventions;employeesFollowsfrommarketingstrategyIdentifies,defines,&selectsbestmarketopportunitiesTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-24?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458HouseofQualityCustomer

RequirementsProductCharacteristicsCustomerRequirementsStageIdentifies&positionskey

productbenefitsStatedincorebenefitsproposition(CBP)Example:Longlastingwithmorepower

(Sears?DieHardBattery)IdentifiesdetailedlistofproductattributesdesiredbycustomerFocusgroupsor

1-on-1interviewsTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-25?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458DefinesproductintermsofhowtheproductwouldmeetdesiredattributesIdentifiesproduct抯engineeringcharacteristicsExample:printernoise(dB)PrioritizesengineeringcharacteristicsMayrateproductcomparedtocompetitorsHouseofQualityCustomer

RequirementsProductCharacteristicsFunctionalSpecificationStageTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-26?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458DetermineshowproductwillbemadeGivesproduct抯physicalspecificationsExample:Dimensions,materialetc.Definedbyengineering

drawingDoneoftenoncomputerComputer-AidedDesign(CAD)HouseofQualityProductCharacteristicsComponentSpecificationsProductSpecificationStageTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-27?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458Manufacturabilityand

ValueEngineeringBenefits:reducedcomplexityofproductsadditionalstandardizationofproductsimprovedfunctionalaspectsofproductimprovedjobdesignandjobsafetyimprovedmaintainabilityoftheproductrobustdesignTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-28?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458IssuesforProductDevelopmentRobustdesignTime-basedcompetitionModulardesignComputer-aideddesignValueanalysisProduct-by-valueanalysisTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-29?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458RobustDesignProductisdesignedsothatsmallvariationsinproductionorassemblydonotadverselyaffecttheproductTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-30?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458Time-basedCompetitionProductlifecyclesarebecomingshorter.

\FasterdevelopersofnewproductsgainonslowerdevelopersandobtainacompetitiveadvantageTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-31?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ModularDesignProductsdesignedineasilysegmentedcomponents.AddsflexibilitytobothproductionandmarketingTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-32?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458Designingproductsat

acomputerterminalor

workstationDesignengineer

developsrough

sketchofproductUsescomputerto

drawproductOftenusedwithCAM?1995CorelCorp.ComputerAidedDesign(CAD)TransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-33?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ShorterdesigntimeDatabaseavailabilityNewcapabilitiesExample:FocusmoreonproductideasImprovedproductqualityReducedproductioncostsBenefitsofCAD/CAMTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-34?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ValueAnalysisFocusesondesignimprovementduringproductionSeeksimprovementsleadingeithertoabetterproductoraproductwhichcanbemoreeconomicallyproduced.TransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-35?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458Product-by-ValueAnalysisListsproductsindescendingorderoftheirindividualdollarcontributiontothefirm.Helpsmanagementevaluatealternativestrategies.TransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-36?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458EngineeringdrawingShowsdimensions,tolerances,&materialsShowscodesforGroupTechnologyBillofMaterialListscomponents,quantities&whereusedShowsproductstructure?1984-1994T/MakerCo.ProductDocumentsTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-37?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458MontereyJack(a)U.S.gradeAA.Montereycheesesahllconformtothefollowingrequirements:(1)Flavor.Isfineandhighlypleasing,freefromundesirableflavorsandodors.Maypossessaveryslightacidorfeedflavor.(2)Bodyandtexture.Aplugdrawnfromthecheeseshallbereasonablyfirm.Itshallhavenumeroussmallmechanicalopeningsevenlydistributedthroughouttheplug.Itshallnotpossesssweetholes,yeastholes,orothergasholes(3)Color.Shallhaveanatural,uniform,brightandattractiveappearance.(4)Finishandappearance-bandagedandparaffin-dipped.Therindshallbesound,firm,andsmoothprovidingagoodprotectiontothecheeseCodeofFederalRegulation,Parts53to109,.RevisedasofJan.1,1985,GeneralServiceAdministrationTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-38?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458EngineeringDrawingExampleTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-39?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458?1995CorelCorp.BillofMaterialExampleTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-40?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458Make-or-BuyDecisionsDecidewhetherornotyouwant(orneed)toproduceanitemMaybeabletopurchasetheitemasa搒tandarditem?fromanothermanufacturerTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-41?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458PartsgroupedintofamiliesSimilar,morestandardizedpartsUsescodingsystemDescribesprocessing&physicalcharacteristicsPartfamiliesproduced

inmanufacturingcellsMini-assemblylines?1984-1994T/MakerCo.GroupTechnologyCharacteristicsTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-42?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458112mm60mm4mmx45?chamfer80mmProduct

Code:

1531

Partfunction(roundrod)Material(steel)Max.length(50<L<150)Primarymachine(lathe)RoundRodGroupTechnologyCodeExampleTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-43?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ImprovedproductdesignReducedpurchasesReducedwork-in-processinventoryImprovedrouting&machineloadingReducedsetup&productiontimesSimplifiedproductionplanning&controlGroupTechnologyBenefitsTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-44?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ProductionDocumentsAssemblyDrawingsAssemblychartRoutesheetWorkorderTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-45?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458ShowsexplodedviewofproductHeadNeckHandleEndCap?1984-1994T/MakerCo.AssemblyDrawingTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-46?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458AssemblyChartTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-47?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458RouteSheetListsalloperationsTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-48?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458WorkOrderDeptOperDateWorkOrderApproved:JMManufacturing?1984-1994T/MakerCo.Authorizesproducingagivenitem,usuallytoascheduleTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer&Render)6-49?1998byPrenticeHall,Inc.ASimon&SchusterCompanyUpperSaddleRiver,N.J.07458EngineeringChangeNotice(ECN)AcorrectionormodificationofanengineeringdrawingorbillofmaterialTransparencyMasterstoaccompanyOperationsManagement,5E(Heizer

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