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CH06Developing Products and Services(运营管理,英文版)

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Developing Products and Services
? Why bother?
? New product development process

? What is good design?
– An operations and supply chain perspective

?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 1

Why Bother?
? External benefits

? Internal benefits
? Exploit strengths/core competencies ? Block competitors
?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 2

External Benefits

Competitive Advantage

?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 3

Internal Benefits
Shorter cycle time, less cost, less waste, …, e.g.
? NCR 2760:
– Only 15 “components” – 85% fewer parts / 65% fewer vendors – Snaps together – Lifetime cost for a SINGLE fastener: $12,500

?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 4

Exploit Strengths and Core Competencies
? Honda
– Motorcycles ? Automobiles

? John Deere
– Farm equipment ? Lawn equipment

? Hewlett-Packard
– Color printers ? Digital photography

?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 5

Block Competitors
Gillette ? “made a point of designing its Sensor razor so that it … would be difficult for competitors to copy” Microsoft ? bundling Windows and Explorer

?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 6

Finally ...
? 30% of revenues and profits come from products introduced in the last 5 years ? Development time:
– Typically 31 months in 1992 – Less than 25 months now – Less than 18 months for many hightech products
?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 7

Operations and Supply Chain Perspectives
? Repeatability, testability and serviceability of the design ? Product volumes ? Product costs ? Match with existing capabilities

?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 8

Repeatability, Testability and Serviceability
? Repeatability
– Consistent production – Tolerance to manufacturing variations (robustness)

? Testability
– Non-value added activity, so should be easy and inexpensive to do

? Serviceability
– Ease of repair, critical for products expected to be serviced or repaired (autos)
?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 9

Product Volumes and Cost
? Determines process strategies
– Types of equipment – Level of automation – Staffing required

? Determines level of customization ? Determines level of after-sales support
?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 10

Match with Existing Capabilities
? Product design flexibility ?Easy to add features? ?Easy to upgrade? ? Process flexibility ?Share processes / parts? ?Will upgrades make current operations
obsolete?
?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 11

Model of Development Process
Concept Development Planning

Design and Development

Preparation and Launch

Survival rate of an idea

$ spent on idea
Time
?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 12

Engineering Functional Activities
Concept Development
? Propose new technologies ? Develop product or service ideas

Planning

Design and Development

Commercial Preparation
? Resolve remaining technical problems

Launch
? Evaluate field experience ? Analyze warranty returns

? Identify ? Develop general detailed performance specifications characteristics ? Build and test prototypes ? Identify underlying technologies

?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 13

Marketing Functional Activities
Concept Development
? Provide market input ? Propose and investigate product or service concepts

Planning
? Define target customer needs ? Estimate sales and margins ? Include customer in development effort

Design and Development

Commercial Preparation

Launch
? Fill downstream supply chain ? Sell and promote

? Conduct ? Train sales customer tests force ? Evaluate ? Prepare sales prototypes procedures ? Plan ? Select marketing distribution rollout channels

?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 14

Operations and Supply Chain Functional Activities
Concept Development Planning Design and Development
? Develop detailed process maps of operations and supply chain flows ? Test new processes

Commercial Preparation
? Build pilot units using new operations ? Train personnel ? Verify supply chain flows

Launch
? Ramp up volumes ? Meet cost targets ? Meet quality and other performance target goals

? Scan suppliers ? Develop initial for promising cost estimates technologies ? Identify key and supply chain capabilities partners

?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 15

Concurrent Engineering
CONCEPT DEVELOPMENT PLANNING DESIGN AND DEVELOPMENT
COMMERCIAL PREPARATION

Overlapping development phases requires tight coordination, but shrinks overall development time

LAUNCH

DEVELOPMENT TIME
?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 16

What is Good Design?
Traditional View:

? Is it easy to use?

? Is it attractive? ? Is it safe?
?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 17

Cost of Design
Estimate: 80% of item cost determined at design stage
? Obvious and hidden costs:
– Component cost – Operations cost – Engineering changes – Distribution costs
?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 18

Quality Function Deployment
x
OFF-THE-SHELF ELECTRONICS PRODUCT CHARACTERISTICS MOLDED PLASTIC CASING CUSTOM ELECTRONICS

IMPORTANCE INEXPENSIVE GOOD LOOKING RUGGED MORE MEMORY FUNCTIONS

CUSTOMER REQUIREMENTS

7 4 5 3

x x
Chapter 6, Slide 19

?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

THICKER CASING

QFD Linkages
Customer requirements ? product characteristics ? product specifications ? process characteristics ? process specifications

PRODUCT CHARACTERISTICS CUSTOMER REQUIREMENTS PRODUCT SPECIFICATIONS PRODUCT CHARACTERISTI CS PROCESS CHARACTERISTICS PRODUCT SPECIFICATIONS PROCESS SPECIFICATIONS PROCESS CHARACTERISTI CS

?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 20

Design for Manufacturing (DFM)
What are the manufacturing costs of the proposed design? Reduce component costs Reduce operations costs Reduce distribution costs

NO

What Impact? Costs OK? YES Acceptable Design Go Ahead

NO

NO

?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 21

Modular Design
? Allows higher level of customization ? Retains lower-cost advantage of higher volumes for core components ? Easier assembly ? Facilitates servicing and repairs ? Allows for upgrades
?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 22

Modular Design Examples
? Balley Engineered Structures
– 7 different kinds of panels
– “Customized” walk-in coolers – From these, assembles almost endless variety of finished products

? Personal Computer Manufacturers ? Manufactured Home Builders
?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

Chapter 6, Slide 23

Target Costing: Value Analysis
Goals:
? Maximize value / cost ? How can we increase this ratio? ? Focus on secondary functions
– – – – – Packaging Shipping Custom parts and tooling Use of standard parts Make versus buy
Chapter 6, Slide 24

?2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield




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