2.Prod Design AnalisiS DevLOP.

7/26/2019 2.Prod Design AnalisiS DevLOP.

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OPERATIONS MANAGEMENT

PRODUCT DECISION, ANALYSIS ANDDEVELOPMENT

PROF. NITIN KUBDE


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What is a Product?

The term PRODUCT is often used as a catch-all word

to identify solutions to its target maret! We willfollow this a""roach and "ermit the term "roduct toco#er offerings that fall into one of the followingcategories


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Contd..

$oods

%er#ices

&deas


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PRODUCT D'C&%&O(?

T)' %&*P+'R W,!!


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T)' +'%% %&*P+'R W,!!


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W),T &% PRODUCT D'%&$(?

It is a systematic formulation whichleads to the selection of material it!s

s"ecification and its aesthetica""earance of the "roduct to #emanufactured. Thou$h "roduct desi$n is

a "art of en$ineerin$ desi$n #ut its rolein o"eration mana$ement is %ery crucial.


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Contd&

Product desi$n is concerned with the formand function of the "roduct.

.OR* D'%&$( / .UCT&O(,+

D'%&$(


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&*PORT,(C' O. PRODUCTD'%&$(

Production or o"erations strate$y isdirectly influenced #y "roduct desi$n forthe followin$ reasons.

'. As "roducts are desi$ned all the detailedcharacteristics of each "roduct are esta#lished.

(. Each "roduct characteristics directly affectshow the "roduct can #e made or "roduced )i.e."rocess technolo$y and "rocess desi$n*


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Contd&

+. ,ow the "roduct is made determines thedesi$n of the "roduction strate$y)"roduction desi$n* which is the heart of

"roduction and o"eration strate$y.


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Contd&

Product desi$n directly affects "roduct-uality "roduction and customersatisfaction. ,ence the desi$n of "roduct is

crucial to stay in today!s $lo#al com"etition. A $ood "roduct desi$n can im"ro%e the

mareta#ility of a "roduct main$ it easierto o"erate or use u"$radin$ its -uality

im"ro%in$ a""earance and/or reducin$manufacturin$ costs.


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W),T DO'% PRODUCT D'%&$(DO?

The acti#ities and res"onsi0ilities of "roduct designincludes following1

Translating customer needs and wants into "roduct

and re2uirements 3mareting4! Refining e5isting "roducts 3mareting4!

De#elo"ing new "roducts 3mareting / "roductdesign4!

.ormulating 2uality goals 32uality assurance6

"roduction4! .ormulating cost targets 3,ccounting4!

Documentary s"ecifications 3"roduct design4!


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O78'CT&9'% O. PRODUCTD'%&$(

The o%erall o#0ecti%e is "rofit$eneration in the lon$ run.

To achie%e the desired "roduct-uality.

To reduce the de%elo"ment time andcost to the minimum.

To reduce the cost of "roduct.


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C),R,CT'R&%T&C% O. $OODPRODUCT D'%&$(

1 23NCTION OR PER2ORMANCE1 APPEARANCE OR AEST,ETICS1 RE4IA5I4IT6

1 MAINTAINA5I4IT61 A7AI4A5I4IT61 PRO83CI5I4IT61 SIMP4I2ICATION

1 STAN8AR8ISATION1 SPECI2ICATION1 SA2ET6


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Contd&

.U(CT&O( OR P'R.OR*,(C'9: The functionor "erformance is what customer e;"ects the"roduct to do sol%e his/her "ro#lem or for

certain #enefits leadin$ to satisfaction. ,PP',R,(C' OR ,'%T)'T&C%9: This

includes the style colour loo feel etc. whicha""eals to the human sense and adds %alue tothe "roduct.

R'+&,7&+&T9: This refers to the len$th oftime a "roduct can #e used #efore it fails.


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Contd&

*,&(T,&(,7&+&T9: This refers to therestoration of a "roduct once it has failed.

,9,&+,7&+&T9: This refers to the continuity

of ser%ice to the customer. A%aila#ility is acom#ination of relia#ility and maintaina#ility.,i$h relia#ility and maintaina#ility ensures hi$ha%aila#ility.

PRODUC&7&+&T9: This refers to the ease ofmanufacture with minimum cost )economic"roduction*.


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Contd& %&*P+&.&C,T&O(9: It refers to the elimination

of the com"le; features so that the intendedfunction is "erformed with reduced costs hi$her-uality or more customer satisfaction.

%T,(D,RD&%,T&O(9: It refers to the desi$nacti%ity that reduces %ariety amon$ a $rou" of"roducts or "arts.

%P'C&.&C,T&O(1- A s"ecification is a detailed

descri"tion of a material "art or "roductincludin$ "hysical measures such a dimensions%olume wei$ht surface finish etc.


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Contd&

%,.'T1- The "roduct must #e safe to theuser and should not cause any accident whileusin$ or should not cause any health ha


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%T,$'% &( PRODUCT D'%&$(

CO(C'PT&O(

,CC'PT,(C'

':'CUT&O( '9,+U,T&O(

TR,(%+,T&O(

PR'-PRODUCT&O(


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.,CTOR% &(.+U'(C&($ PRODUCT D'%&$(

CU%TO*'R R';U&R'*'(T%

CO(9'(&'(C' O. T)' OP'R,TOR ORU%'R

TR,D'-O.. 7'TW''( .U(CT&O( ,(D.OR*

TP'% O. *,T'R&,+% U%'D

WOR< *'T)OD% ,(D ';U&P*'(T%

CO%T=PR&C' R,T&O

PRODUCT ;U,+&T


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='>>>>

=?>>>

=@>>>

=>>>

0 10 20 30 40 50

Units Sold

Total revenuesline

Breakeven

Point

25 units

Operating

income

Operatingloss

Page 72

Total costs

line

7R',< - '9'( > C),RT%


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Contd..

CO%T


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7R',< - '9'( > C),RT%Contd!!

CO%T

C,P,C&T


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Contd..

PROC'%% C,P,7&+&T

'..'CT O( ':&%T&($ PRODUCT%

P,C


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Design Influences ManufacturingCost

8esi$n is the sin$le most im"ortant areawhere the efforts to minimise manufacturin$cost are really rewardin$.

Costs can #e curtailed more easily at desi$nsta$e and once "roduct has #een desi$nedor de%elo"ed %ery little can #e done e;ce"tto cut corners here and there. some of theareas where si$nificant sa%in$s can #e madeat the desi$n sta$e are discussed hereunder9


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a1 *,T'R&,+%

Only those materials which mae the "roduct "erformsatisfactorily are selected. If chea"er material canwor satisfactorily there are no us to $o for costly.

Materials which are easily a%aila#le in the maret are

used.


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01*achina0ility--

Some materials are easy to machine allow hi$hercuttin$ s"eeds and cause less tool wear and#reaa$e. E%en if such materials are costly theyshould #e "referred if there is $reater sa%in$s due to

lower machinin$ cost.


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c1 *ae-or-0uy decisions::

Manufacture a "art for which #est technical nowhow is a%aila#le.

Manufacture a "art if its "rocurement is e;"ected tore-uire lar$e amount of money e%ery year.

5uy "arts which are a%aila#le at -uite reasona#lerates in maret 5uy "arts which re-uire the use of s"ecial

manufacturin$ "rocess/e-ui"ment which utilisation ise;"ected to #e %ery "oor


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d1 Tolerances1

A#solute uniformity to "roduce each "ieceto an e;act dimension is not onlyim"ossi#le to o#tain in "roduction #ut alsois costly to a""roach. tolerances aresti"ulated toB

Pro%ide a necessary fit or clearance#etween the matin$ "arts.

Ensure interchan$e a#ility #etween the

"arts. Ena#le manufacturin$ of "roducts/"arts at

the lowest cost


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e1 Use of standard "arts--

Standard "arts cost less to #uy since theyare "roduced #y their manufacturers lar$e-uantities on s"ecial "ur"ose machines

with s"ecial "ur"ose toolin$ to cater toneeds of a lar$e num#ers of customers.

Standard "arts are easy to "rocure frommulti"le sources with smaller lead time

there#y reducin$ "rocurement cost andin%entory carryin$ cost.


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f1 9ariety reduction or use of fewer"arts4

7ariety reduction is the %oluntary elimination ofunnecessary %ariety in the "roducts materialscom"onents tools etc.

5enefits of %ariety reduction include reduced

manufacturin$ cost lower in%entory in%estmentlesser la#our cost fewer defecti%es #etter -uality andeconomy in #uyin$ cost


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g1 Tool design1

Product desi$n should #e such that com"any!se;istin$ manufacturin$ facilities:machines toolsfi;tures etc.:are utili


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PRO83CT 8E7E4OPMENT

Product de%elo"ment is the creation of new"roduct or some chan$es done in thee;istin$ "roduct to meet the new demandsof the maret.


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PRO83CT

8E7E4OPMENT

Introduction of new "roduct Im"ro%ement of e;istin$ "roduct

Short term o#0ecti%es 4on$ term o#0ecti%es


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Introduction of new "roduct

Gi%e "ractical sha"e to the ideas.

3tili


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Im"ro%ement of e;istin$ "roduct

Short term o#0ecti%es.

to "ro%ide new loo.

to satisfy immediate need ofcustomer.

to stimulate sales #y "ro%idin$ newad%anta$e.

to utili


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4on$ term o#0ecti%es.

to mono"olies maret.

to mae "roduct on -uality #asis to reduce the cost of manufacturin$.

to ensure lon$ term $rowth #y tyin$

the customer to the #rand.


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Product life cycle


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Customers Generation of idea R8 acti%ities

Ad%ance "roduct "lannin$

Ad%ance desi$n

8etailed en$ineerin$ desi$n

2inal desi$n

Production "rocess desi$n and de%elo"ment

('W PRODUCT D'%&$( / D'9'+OP*'(T


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Relationshi" #etween Research6

De#elo"ment andDesign! Product Research $enerates #asic informationwhich $ets con%erted into "ractical endsdurin$ de%elo"ment and into final "hysicalform on com"letion of desi$n.

Product de%elo"ment in%ol%es im"ro%ementof e;istin$ "roduct.

"roduct desi$n in%ol%es the de%elo"ment ofs"ecification of a "roduct.

2.Prod Design AnalisiS DevLOP.

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