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

3 product strategy options

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

Product Strategy Options : differentiation

Product Strategy Options : low cost

Product Strategy Options: Rapid Response

Life Cycle and Strategy (1)

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

3 Product Life Cycle

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

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

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

- 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

Generating new products (6)

Quality Function Deployment (2)

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

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

(7) Quality Function Deployment

Deploying resources through the organization in response to customer requirements

Organizing for Product Development (6)

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

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

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

No organizational divisions

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

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

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

Manufacturability and Value Engineering (7 benefits)

7 for product design

• 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

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

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

• 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

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

• 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

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

Benefits of CAD/CAM(5)

• 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

• 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

• 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

• 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

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 Development Continuum (6)

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

– Both organizations learn – Risks are shared

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

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

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

product documents (2)

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

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

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

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

group tech benefits

Documents for Production

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

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

Lists the operations and times required to produce a component

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

• 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

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