Recap

Chapter 4 and Chapter 7

CHAPTER 4

What Does Product & Service Design Do?

• 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• Translate product and service specifications into process

specifications

Idea Generation

• Supply chain-based• Competitor-based

– Reverse engineering: Dismantling and inspecting a competitor’s product to discover product improvements

• Research-based– Basic research– Applied research– Development

Design Considerations

• Legal Factors (Mandatory)– Product liability: The responsibility a manufacturer has for any injuries or damages caused by

as faulty product

• Ethics• Human Factors• Cultural Factors• Environmental Factors: sustainability

– 3R: reduce, reuse, recycle• Life Stage• Standardization• Mass Customerization

– Delayed differentiation and Modular design

• Quality Function Deployment/The House of Quality• An approach that integrates the “voice of the customer” into both product

and service development• The purpose is to ensure that customer requirements are factored into every

aspect of the process

• Kano Model– Basic quality– Performance quality– Excitement quality

Designing (products) for Production

1. Concurrent engineering2. Computer-Assisted Design (CAD)3. Production requirements

a. Design For Manufacturing (DFM)b. Design For Assembly (DFA)

4. Component commonality

Reliability

• Reliability is expressed as a probability:– (Single Component Reliability) The probability that

a part, or a single component works.– The probability that the product or system will

function when activated– The probability that the product or system will

function for a given length of time

What is this system’s reliability?

.80

.85

.75

.80

.95

.70

.90

.9925.99 .97

.9531

.95+(1-.95)*.8 1-((1-.75)*(1-.8)*(1-.85)) .9+(1-.9)*.7

.99*.9925*.97

.85+(1-.85)*(.8+(1-.8)*.75)

Exponential Distribution

Exponential Distribution – Formula

failuresbetween Mean timeMTBF

failure before service ofLength

...7183.2

where

) before failure (no /

T

e

eTP MTBFT

Availability

• The fraction of time a piece of equipment is expected to be available for operation

repair toMean timeMTR

failuresbetween Mean timeMTBF

whereMTRMTBF

MTBFtyAvailabili

CHAPTER 7

Quality of Work Life

• Important aspects of quality of work life:– Working conditions

• Physical• Psychological

– Compensation• Time-based systems• Output-based systems

– Incentive programs

• Knowledge-based systems

– Job Design

Behavioral Approaches to Job Design

• Job Enlargement– Giving a worker a larger portion of the total task

by horizontal loading

• Job Enrichment– Increasing responsibility for planning and

coordination tasks, by vertical loading

• Job Rotation– Workers periodically exchange jobs

Observed Time

nsobservatio ofNumber

timesrecorded of Sum

timeObservedOT

where

OT

n

x

n

x

i

i

Normal Time

j

jx

x

j

j

jj

element for rating ePerformanc PR

element for timeAverage

timeNormal NT

where

PR NT

Assumes that performance ratings are made on an element-by-element basis

Standard Time

on workday based percentage Allowance 1

1AF

timejobon based percentage Allowance 1AF

and

factor AllowanceAF

timeStandard ST

where

AFNTST

day

job

AA

AA

• Suppose a worker can do k cycles per day.

ST

Example (from Problem Solving)

• Ahe worker’s time averaged 1.9 minutes per cycle, and the worker was given a rating of 120 percent. Assuming an allowance factor of 12 percent of workday, determine the standard time for this job.

• Solution:ST = NT*AF=(1.9*120%)*(1/(1-12%))=2.59

RECALL FROM CHAPTER 1

Supply and Demand

Supply Demand>

Supply Demand<

Supply Demand=

WastefulCostly

Opportunity LossCustomer

Dissatisfaction

Ideal

Operations & Supply Chains

Sales & Marketing

4 Sources of Process Variation• Variety of goods or services being offered

– The greater the variety of goods and services offered, the greater the variation in production or service requirements.

• Structural variation in demand– These are generally predictable (seasonal variation or seasonality, e.g., swimwear,

warm clothes, Christmas, tourist seasons, school supplies).– They are important for capacity planning

• Random variation– Natural variation that is present in all processes (e.g., random demand etc.).

Generally, it cannot be influenced by managers.• Assignable variation

– Variation that has identifiable sources. (e.g., defective inputs, incorrect work methods, equipment etc.)

– This type of variation can be reduced, or eliminated, by analysis and corrective action.

Case Study

• Apple Readies a Big Bet on Big-Screen Phones

• What design considerations have Apple put into their new product?– Legal/ethical– Human factors– Cultural factors– Environmental factors– Standardization/Customerization

• How big is the bet?– Quantity of the new products.