Product Strategy Options : differentiation

Utilize a planning matrix to relate customer wants to how the firm is going to meet those wants

7 for product design

– Market requirements to product success – Cross-functional teams often involving vendors – Open, highly participative environment

• Product design begins to stabilize • Effective forecasting of capacity becomes necessary • Adding or enhancing capacity may be necessary

• A correction or modification to a product’s definition or documentation – Engineering drawings – Bill of material Quite common with long product life cycles, long manufacturing lead times, or rapidly changing technologies

The need to manage ECNs has led to the development of configuration management systems • A product’s planned and changing components are accurately identified • Control and accountability for change are identified and maintained

Product Strategy Options: Rapid Response

– Cooperative agreements between independent organizations – Useful when technology is developing – Reduces risks Product Development Continuum

Life Cycle and Strategy (1)

Benefits of CAD/CAM(5)

the objective of ____ is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage

• Product is designed so that small variations in production or assembly do not adversely affect the product • Typically results in lower cost and higher quality

• Unless product makes a special contribution to the organization, management must plan to terminate offering

Deploying resources through the organization in response to customer requirements

Quality Function Deployment (2)

Instructions to produce a given quantity of a particular item, usually to a schedule

First definition is in terms of functions • Rigorous specifications are developed during the design phase • Manufactured products will have an engineering drawing • Bill of material (BOM) lists the components of a product

Organizing for Product Development (6)

Product Strategy Options : low cost

• Focuses on design improvement during production • Seeks improvements leading either to a better product or a product that can be produced more economically with less environmental impact

Identifies the point of production where components flow into subassemblies and ultimately into the final product

group tech benefits

Product manager drives the product through the product development system and related organizations

No organizational divisions

– Shows dimensions, tolerances, and materials – Shows codes for Group Technology product documents

Generating new products (6)

(7) Quality Function Deployment

3 product strategy options

– Simultaneous performance of product development stages – Speedier product development – Facilitated by cross-functional teams

Life Cycle and Strategy Introductory Phase • Fine tuning may warrant unusual expenses for (4)

– Both organizations learn – Risks are shared

The need to manage ECNs has led to the development of configuration management systems • A product’s planned and changing components are accurately identified • Control and accountability for change are identified and maintained

3 Product Life Cycle

1. Product quality 2. Shorter design time 3. Production cost reductions 4. Database availability 5. New range of capabilities

Sustainability means meeting the needs of the present without compromising the ability of future generations to meet their needs • LCA is a formal evaluation of the environmental impact of a product

product documents (2)

Lists the operations and times required to produce a component

– Determine what will satisfy the customer – Translate those customer desires into the target design

– Cross functional – representatives from all disciplines or functions – Product development teams, design for manufacturability teams, value engineering teams

Utilizing specialized computers and program to control manufacturing equipment • Often driven by the CAD system (CAD/CAM) • Additive manufacturing – Extension of CAD that builds products by adding material layer upon layer

• Using computers to design products and prepare engineering documentation • Shorter development cycles, improved accuracy, lower cost • Information and designs can be deployed worldwide

– Simultaneous performance of product development stages – Speedier product development – Facilitated by cross-functional teams

- Lists products in descending order of their individual dollar contribution to the firm • Lists the total annual dollar contribution of the product • Helps management evaluate alternative strategies

• Focuses on design improvement during production • Seeks improvements leading either to a better product or a product that can be produced more economically with less environmental impact

• Utilizing specialized computers and program to control manufacturing equipment • Often driven by the CAD system (CAD/CAM) • Additive manufacturing – Extension of CAD that builds products by adding material layer upon layer

• Parts grouped into families with similar characteristics • Coding system describes processing and physical characteristics • Part families can be produced in dedicated manufacturing cells

Manufacturability and Value Engineering (7 benefits)

– Cooperative agreements between independent organizations – Useful when technology is developing – Reduces risks

Documents for Production

• 3D Object Modeling – Small prototype development • Design for Manufacturing and Assembly (DFMA) – Solve manufacturing problems during the design stage • CAD through the Internet • International data exchange through STEP • 3D printing

• Products designed in easily segmented components • Adds flexibility to both production and marketing • Improved ability to satisfy customer requirements

Product Development Continuum (6)

• Produce components themselves or buy from an outside source • Variations in – Quality – Cost – Delivery schedules • Critical to product definition

• May be any length from a few days to decades • The operations function must be able to introduce new products successfully

• A visual form of communication in which images substitute for reality and typically allow the user to respond interactively • Allows people to ‘see’ the finished design before a physical model is built • Very effective in large-scale designs such as plant layout

– Lists components, quantities, and where used – Shows product structure product documents

• The integration of digital information with the user's environment in real time – Digital information or images superimposed on an existing image – Useful in product design, assembly and maintenance operations, tool or specification information

• Shows exploded view of product • Details relative locations to show how to assemble the product

– Duties and responsibilities are defined – Difficult to foster forward thinking

• Competitors now established • High volume, innovative production may be needed • Improved cost control, reduction in options, paring down of product line

– Speeds development – Issues concern the fit between the acquired organization and product and the host