Product, Service & Process Design

Transcription

1 Strategies for new product introduction market pull we make what we can sell example: food industry technology push we sell what we can make example: electronics inter-functional view example: personal computers Product development process typical phases of product development planning concept development product or service design pilot production, testing and refinement production ramp up designing a product without co-operation outcome is shown in figure 3.1 (Schroeder, 5/e) -1-

2 Economic analysis of development costs using measurable factors to help determine operational design and development decisions go and no-go milestones building a base case financial model a financial model consisting of major cash flows sensitivity for what if analysis Inter-relationships How to Satisfy Customer Wants House of Quality What the Customer Wants Relationship Matrix Analysis of Competitors Technical Attributes and Evaluation -2-

3 Designing for the customer ideal customer product quality function deployment (QFD) inter-functional team from marketing, design engineering, and manufacturing also known as house of quality» voice of customer/engineer, competitors comparison»example: exhibit 4.6 (Jacobs, 12/e) value analysis / engineering achieve equivalent or better performance at a lower cost while maintaining all functional requirements of customer by eliminating redundant features, non standard parts, or consider two or more parts be combined Product design in the old days, over the wall we design it, you build it now, concurrent engineering must be able to make it (process) technology availability of resources must have the capacity must deliver a quality product or service must decide inventory policies -3-

4 Product design design for manufacturing and assembly (DFMA) improvements arise from simplification of the product by reducing the number of separate parts: during the operation of the product, does the part move relative to all other parts already assembled? must the part be of a different material or be isolated from other parts already assembled? must the part be separate from all other parts to allow the disassembly of the product for adjustment/maintenance? modular design multiple products using common parts, processes and modules Measuring development performance dimensions measures time to market productivity quality frequency of new products introduced time to market introduction number stated and number completed percentage of sales from new products engineering hours per project cost of materials and tooling per project actual versus plan conformance reliability in use performance and customer satisfaction -4-

5 Product and process flow basic work flow structures project, batch layout, and work center manufacturing cell assembly line continuous process process flow structures job shop batch shop assembly line continuous flow Product and process flow product process matrix high low Standardization low project manufacturing cell work center Product Volume line continuous process high -5-

6 Product and process flow product flow characteristics continuous process highly standardized and automated (beer, paper, etc) high volumes of production, flexibility limited commodity products low cost is the order winner assembly line flow linear sequence of operations for discrete products high volume, standardized products (appliances, etc) inflexibility in product and volume very efficient but large capital investment Product and process flow product flow characteristics batch flow production of batches or lots batches flow from one work center to another low volume products many different types of products flow is jumbled and intermittent flexible labour and equipment -6-

7 Product and process flow type of customer order make to stock (MTS) produce finished goods; customer buys from inventory advantage: smooth production disadvantage: inventory make to order (MTO) start production when customer orders advantage: no finished goods inventory disadvantage: intermittent production assemble to order (ATO) advantages: less inventory, faster service disadvantage: some WIP inventory Product and process flow type of customer order customization point MTO MTO ATO MTS supplier fabrication assembly distribution Figure 4.4 (Schroeder, 5/e) -7-

8 Product and process flow process selection decisions factors affecting process choice market conditions and competition capital requirements labour supply and cost state of technology product process strategy strategy must consider not only the product or service, but also how to produce it as many industries move through their product life cycles, they also move through a process life cycle figure 4.5 product process matrix (Schroeder, 5/e) Product and process flow focused operations rationale company may have products or services with different volumes and levels of standardization, mixing them in the same operation can cause significant problems separating different products/services in the same facility types of focus product focus process type, technology volume of sales make-to-stock and make-to-order new products and mature products -8-

9 Product and process flow mass customization rationale provide products in lot sizes of one in high volume economies of scope instead of economies of scale» a high variety of products from a single process possible because of flexible manufacturing forms of customization modular production & ATO (example: Dell) fast changeover (example: Motorola) postponement of options (example: Hewlett-Packard) Service business what is it? the management of organizations whose primary business requires interaction with the customer to produce the service types of service facilities based where the customer must go to the service facility field based where the production and consumption of the service takes place in the customer s environment -9-

10 Service business The Service Strategy customer centered view The Customer The Systems The People Service business service system design matrix high Degree of customer/server contact buffered permeable reactive low Sales Opportunity Exhibit 7.6 (Jacobs, 12/e) mail contact internet & on-site technology phone contact face-to-face tight specs face-to-face loose specs face-to-face total customization Production Efficiency low high -10-

11 Standard execution time 2 minutes Brush Service business shoes Apply polish example of service blueprinting secs Total acceptable execution time 5 minutes Clean shoes Seen by customer 45 secs secs Fail point Buff 45 secs Wrong color wax Collect payment 15 secs Materials (e.g., polish, cloth) Line of visibility Not seen by customer but necessary to performance Select and purchase supplies Service business three contrasting service designs production line approach example: McDonald s self service approach example: automatic teller machines personal attention approach example: Ritz-Carlton Hotel Company managing customer introduced variation variability in arrival, request, capability, effort, subjective preference -11-

12 Service business characteristics of a well designed service system each element is consistent with the operating focus user friendly robust structured to maintain consistent performance easily provides effective links between the back office and the front office so that nothing falls between the cracks manages evidence of service quality in such a way that customers see the value of the service provided it is cost effective Reference chapters 3, 4, 5 & 6 (Schroeder, 5/e) -12-

13 Quality one of the four key objectives of operations historical development of quality concepts inspection (early 1900s) statistics quality control (Shewhart, 1940s) quality management (1960s) responsibility of everyone in the organization meeting (or exceeding) customer requirements now and in the future Quality pioneers W. Edwards Deming ( ) 14 Management Principles advocate of statistical process control emphasis on continuous improvement PDCA wheel (example) Joseph Juran ( ) quality trilogy: planning, control and improvement emphasis on management Quality Handbook plus many others -13-

14 Dimensions of quality quality of design determined before the product is produced put wishes of customers into specifications concurrent design through the QFD process quality of conformance producing a product to meet the specifications Dimensions of quality abilities availability continuity of service to customers reliability length of time that a product can be used before it fails measured by MTBF maintainability restoration of the product or service once it has failed measured by MTTR figure

15 Dimensions of quality field service warranty, repair or replacement of the product after it has been sold also called customer service after sales service, or service dimensions promptness competence integrity Service quality measures are perceptual or subjective SERVQUAL most popular measure uses a questionnaire consisting of 22 items an aggregate measure of the following five dimensions five dimensions of service tangibles reliability responsiveness assurance empathy -15-

16 Quality planning, control and improvement implementing through quality cycle define quality attributes on the basis of customer needs decide how to measure each attribute set quality standards establish appropriate tests for each standards find and correct causes of poor quality continue to make improvements Poka-Yoke by Toyota s Shigeo Shingo means mistake proofing, developed in 1960s a design approach so that mistakes cannot occur ISO 9000 standards established in 1987 guidelines for designing manufacturing selling, and servicing products provides some assurance that supplier follows accepted business practices in areas covered required by many companies especially in Europe -16-

17 ISO 9000 standards quality management principles principle 1: customer focus principle 2: leadership principle 3: involvement of people principle 4: process approach principle 5: system approach to management principle 6: continual improvement principle 7: factual approach to decision making principle 8: mutually beneficial supplier relationships Supply chain quality principles for outsourcing supplier involved in product design suppliers maintain high quality therefore high rolled yield operations must manage risk e.g. defective toys suppliers should be certified e.g. ISO 9000 don t rely just on price and product samples -17-

18 Quality control systems break down production process into sub-processes and internal customers identify critical points where inspection or measurement should take place four steps in designing QC systems identify critical points decide on the type of measurement: variables/attribute decide on the amount of inspection to be used decide who should do the inspection Quality control systems types of measurement attribute measurement evaluated with a discrete choice counts, such as the number (or proportion) of defects variables measurement measured on a continuous scale mean, range or deviation of critical characteristics -18-

19 Process quality control basic assumptions every process has random variation in it processes are not usually found in a state of control state of control unnecessary variation is eliminated assignable (special) causes identified and corrected remaining variation is because of random causes common causes, occur randomly cannot be changed unless process is redesigned Process quality control formulas for statistical process control (3 sigma) p chart : p 1 p x-bar chart : p 3 x 2 A R n R chart : LCL D3 R, UCL D4 R where A 2, D 3, D 4 are constants depend on sample size process capability C p = spec width process width, higher the better more widely used measure C pk = USL LSL Min,

20 Continuous improvement aim reduce the variability of the product or process priority processes with strategic importance low process capability use seven tools of quality control flow charts, run (trend) charts, control charts pareto charts, histogram, scatter (x-y) diagram cause-effect (fishbone or Ishikawa) charts Six Sigma quality introduction defect level of 3.4 parts per million (ppm) process range is +4.5 and 7.5, thus, C pk = 1.5 airline fatalities are 6.4 sigma, most processes are 4 process improvement steps (DMAIC) define measure analyze improve control -20-

21 Six Sigma quality improvement cycle uses a project/team approach a process is selected for improvement a cross-functional team is formed a six sigma black belt is chosen to head the team uses DMAIC to find root causes and improve process lean and six sigma are complementary approaches to improvement lean eliminates waste, six sigma eliminates defects six sigma is project focused, lean is more broad based Quality control and improvement in industry 75% use process control charts more use of variable charts than attribute (p) charts because of sample size requirements Six Sigma rapidly gaining acceptance Quality control in the service industry SERVQUAL Reference chapters 8 & 9 (Schroeder, 5/e) -21-

22 Capacity is defined as the maximum output that can be produced over a given period of time theoretical capacity primarily determined by physical assets labor availability nominal capacity subtracts downtime, shift breaks, etc capacity utilization = output nominal capacity 100% Hierarchy of capacity decisions Aggregate Planning Facilities Decisions Facilities Decisions Aggregate Planning Scheduling Scheduling Planning Horizon (months)

23 Facilities decisions how much total capacity is needed? how large should each unit of capacity be? when is the capacity needed? what type of facilities/capacity are needed? strategy typically considers amount of capacity size of the units timing of capacity changes types of facilities needed for the long run Facilities factors affecting facilities strategy predicted demand cost of facilities likely behavior of competitors business strategy international considerations amount of capacity capacity cushion = capacity average demand build to average forecast maximize utilization at bottlenecks -23-

24 Facilities size of the units optimum unit size economies of scale production costs are not linear overhead spread over more units diseconomies of scale increased transportation costs cost of more bureaucracy increased organizational complexity Facilities timing of capacity additions preempt the competition build capacity ahead of need positive capacity cushion wait and see strategy small or negative capacity cushion lower risk strategy types of facilities product, market or process focused general purpose -24-

25 Aggregate planning characteristics a time horizon of about 12 months facilities that are considered fixed aggregated level of demand for one or few categories of product a variety of management objectives the possibility of changing both supply and demand Aggregate planning planning options options for managing demand influencing demand from customers delivering orders as promised options for influencing demand from customers pricing advertising and promotion backlog or reservations (shifting demand) development of complementary products -25-

26 Aggregate planning planning options options for managing supply delivering what is promised managing capacity and other resources options for influencing supply hiring and layoff of employees using overtime and undertime using part-time or temporary labor carrying inventory outsourcing or subcontracting making cooperative arrangements Aggregate planning basic production strategies level load strategy deliver products and services at a constant rate avoid making changes to operations chase demand strategy produce only what you sell produce products or services just in time do not produce if there are no sales typical for services -26-

27 Aggregate planning associated costs level load strategy inventory carrying costs cost of stock out or back order chase demand strategy hiring and firing costs overtime and undertime costs subcontracting costs part-time labor costs Sales and operations planning purpose balance demand and supply iterative nature 1. develop production plan 2. check implications for inventory / backlog plan 3. if necessary, adjust production plan 4. check against resource plan and availability 5. if necessary, adjust production plan 6. recheck against inventory / backlog and resources 7. continue (go to 5) until you meet all constraints -27-

28 Scheduling it is the last and most constrained decision in the capacity planning hierarchy results in a time-phased plan may range from a few hours to a few months has conflicting objectives high efficiency low inventories good customer service Scheduling batch scheduling characteristics complex scheduling environment, closely related to MRP can be thought of as network of queues customers or jobs spend most of their time in queues actual work is less than 20% of total throughput time difficulties variety of jobs processed different routing and processing requirements of each job number of different orders in the facility at any one time competition for common resources -28-

29 Scheduling batch scheduling example: figure 13.1 (Schroeder, 5/e) job work center / machine hours due date 1 A/2, B/3, C/4 3 2 C/6, A/4 2 3 B/3, C/2, A/1 4 4 C/4, B/3, A/3 4 5 A/5, B/3 2 Total machine times for the five jobs: machine A: 15 hours machine B:12 hours machine C:16 hours Scheduling Gantt charting proposed by Henry Gantt in 1917 machine performance measures: make span» total time to complete a set of jobs machine utilization» percent of make span time a machine is used used primarily to monitor progress of jobs one technique for executing the production plan example: figures 13.2 & 13.3 (Schroeder, 5/e) -29-

30 Scheduling Gantt charting A B C hour machine idle : A 5 hours B 8 hours C 4 hours Total 17 hours make span : 20 hours machine utilization : (60 17) hours 60 hours = 71.17% Scheduling other methods and techniques finite capacity scheduling theory of constraints priority dispatching rules infinite capacity loading constant time networks program evaluation review technique (PERT) critical path method (CPM) Reference chapters 12, 13 & 14 (Schroeder, 5/e) -30-