hello welcome to ATI 4614 when we mention the word product you may think tangible goods while actually products include goods and services so the insurance policy is product and the mortgage is considered as a product this module will address the product design and development the development will start with gathering customer or user requirements which can be translated into design specifications through the use of various tools techniques and methods the design and development is the initial stage of product lifecycle the module will define their phases of the product lifecycle and their relation with different operations management decision areas the Regal Marine is a boating company in Orlando who use global market and just-in-time strategies in their production of the company's products in addition the company used 3d or 3-dimensional CAD systems to a reduced product development time reduce problems in tooling and reduce problems in production the company's production is based on a simply line approach this is the opening story of this chapter which explains the success that will be that will be achieved when selecting the proper product design strategy the successful strategy links product decisions with investment market share and product lifecycle the objective of the product decision is to develop and implement product strategy that meets demand with competitive advantage during the design companies must understand the customer by satisfaction not just the physical product or the service limited product life cycle requires searching for a replacement and the development of new products the continuous development of new products to replace those expiring or obsolete products when collecting customer requirements and letting that into a product associated processes required to produce the product will be identified - and then we also can identify the product components we'll which will assist me in identifying the suppliers for each component a new product should generate substantial revenue for the company so the objective of the product decision is to develop and implement a product strategy that needs demands of the marketplace with competitive advantage there are three major product strategies that can be selected that we can select from differentiation which is providing goods or services that are different from other competitors in the market the second strategy is competing with offering lower cost than competitors and the first strategy is to respond to customers faster than other competitors in the market and later on you will see that we can actually mix - or actually all three of them if needed to achieve our competitive advantage in the market product lifecycle as we explained in other lectures can be divided into four phases introduction growth maturity and decline this cycle may vary in length from few hours such as newspaper to the case such as the Space Shuttle whether it's a long or short life cycle Operations Manager has to develop a system to design and introduce new products during the introduction the product will be in the design and development phase spending more on research and testing maybe also having short runs but not much of a sale for that you can see that the revenue in this phase the cost will be more than the sales revenue which means the product in a loss in the gross phase the in the growth phase the product design will be finalized so the company will start making long runs which will reduce the cost and increase sales revenue in this phase cost and revenue will break-even then sales revenue will start exceeding the cost to generate profit the third phase will be the maturity phase where little or no changes will be made and the company will concentrate more on marketing the last phase will be the decline phase where sales revenue will decline and the demand for that product will start fading at that point the product will be replaced with a new one in the introduction stage the product is tuned for the market this tuning will be done through research to identify the product call and analyze the market acceptance to such a new product also a study will be conducted to identify the targeted audience the research results will be reported to the team of developers to start product development based on market and customer specifications through prototyping and testing the product will be modified and enhanced before that final release included in their research will be finding the best reliable suppliers of product components in the growth stage the product design will begin to stabilize and forecast for the capacity and demand will be necessary in the stage that Enterprise has to decide on adding or enhancing their capacity to satisfy market needs in the maturity phase the product should be able to compete in the market with the to produce high volume or use innovative way of production if needed with the experience gained about the product managers will be able to improve and control the cost and reduce some activities or processes that does not add value to the customer and will not be willing to pay for in the decline phase the product demand will start declining unless the product makes special contribution to the organization if it's not contributing to the organization there must be a plan to terminate or exchange that product with a new product for example Intel will offer a new generation of CPUs as soon as the old CPUs generation start to decline operations manager show their or the managers show their products in descending order based on their dollar contribution to the firm this analysis will allow managers to evaluate alternative strategies for elimination or replacement of the product to identify a new product opportunities we need to understand customer needs and customer wants most of successful new products or product ideas comes from users or being developed by lead users customer needs might stem from different changes for example an economical change which will allow people to afford to afford buying new products and new technology it could be also sociological and a demographic change which might also affect their product demand for example the family size decreased which will lead to moving to a smaller car or a smaller house could be also technically a taking logical change as the release of a you know cell phone new cell phone with new features and additional functions which will encourage people to buy based on their new technology could we could be political change such as new trade agreement or government contract that eliminate or minimize taxes or might be other opportunities that was generated by market practice professional standards suppliers and/or distributors this figure shows the product development process starting from the idea and ending up with the evaluation it highlights the activities where the scope of the product development and activities where the scope for the design and engineering when developing a new product we use quality function deployment to map the map and translate customer wants into design specifications this process is used early in the design process to capture the characteristics of the product that will satisfy customer wants one of the tools that's used is the house of quality to develop a house of quality we need to perform the following steps identify customer once identify how the goods or service will satisfy customer ones related customer wants to product house identify relationships between the firm's house they will develop important ratings and evaluate competitors or competing products this figure shows the house of quality and the different areas that might be captured in this graphical representation the figure will be used to identify relationships between customer wants and product design specifications and their interrelationships between the design specifications and each other to understand the let's go over or through the following example your team has been charged with designing a new camera for great cameras incorporated so the first action will be to construct a house of quality customer once can be summarized in the table and their importance can be documented as shown in the figure the importance of having lightweight product is three out of five while the reliable camera it it's very important and rated five out of five for the ease of use is for easy to hold steady s2 and high resolution is one to satisfy a customer once we design the product with the specifications that map's to each one such as low electricity requirements aluminum components auto focus auto exposure high number of pixels and ergonomic designs the low electricity requirements has low relationship with light weight and that can be represented by the weight of the battery that will be used in the camera it should be easy to use the electrical part of the camera but will have low relationship with low electricity requirements while on the other hand it will have medium relationship with the camera reliability you want the part of the reliability you want the camera to work all the time so you want the power or the electricity to be available for a death cameras also although it's low electricity but it should be reliable for the use when it needed other relationships can be interpreted in the same way where we can see where we have a medium strong or a weak or low relationship notice that you don't have to fill all cells with radiation in some cases there is no relationship that can be identified or established between the design specifications and the ones so we don't have to fill all these cells in addition we can identify the interrelationship of that specifications with each other high number of pixels has strong relationship with the autofocus and auto exposure and the relationship it can be either again you know high medium low or you can do the plus and minus signs the plus is like positive correlation and the negative is negative correlation between the two specifications design specifications look at the other stablished relationships in the figure and how they relate to each other now let's use let's see if we have other companies that produce the same product and how well our product compared to their products in the market notice that we have P for poor F for fair and G for good so this is company this is company B and then we can add our company or the camera once we design it to a third column and start comparing the different criteria and different specs with the other companies then we need to include the technical attributes of product and the technical evaluation for the company versus other companies the electricity is 0.5 amps compared to the requirements of other companies at 0.6 0.7 m/s which means that I can use lower battery size lower battery capabilities and that will be easier to find and use the autofocus is from 2 to infinity which is similar to other companies the higher resolution is either equal or double that other competitors and we can compare also the number of failures pair 10,000 units and you can see that the number of failures with one pair 10,000 is acceptable and ok for all companies including our design this will be the overall picture of the house of quality with the identified ones and specifications and their relationships so just by looking at this figure you can identify the relations you can identify the importance of the customer once and you can identify the design specifications we can use actually the house of quality to map design specifications to the required components so what are the components that would be required to satisfy those design specifications and then from that we can move again using a house of quality and identify the processes that will be mapped to the components how can I simple or put those components within that camera and then we map those processes to a quality plan to ensure quality in the whole process of developing and building that camera through history it shows that organizations always used a distinct Department for product development with certain duties and responsibilities in other cases product manager will be their champion and will carry the product through the development process so whether it's that traditional which is having addressed one department for development or for design development or having a champion and those are considered as isolated design areas or isolate design methods that might not assist in the design process or the efficiency of the development the current organization or all organizations now are concentrating more on team approach where the development team has cross-functional representatives from all disciplines or functions so you'll have different backgrounds that can assist in the development process the team will assist in the development design and value engineering of that product also there is what we call a Japanese approach which involves the whole organization in the development process manufacturability and a value engineering are activities concerned with improving of the design and specifications at the research development design stage and pre-production stages of their product development when we do short runs to make sure that the product is working fine now the benefits of that that we are reducing the complexity of the product we have reduction of the environmental impact additional standardization of components so if they are used in different models or different types why why to create new ones we can use the same standard components again and we can buy them of the Shelf improvement of functional aspects of the product improved job design and job safety improved maintainability and serviceability of their product and of course we will have robust design through value engineering we can look at the design and explore alternatives to produce the same product with lowest cost not compromising quality for example that bracket shown here using value engineering still perform the same function but using different material and was wilded instead of using screws and bullets as shown in the first design using different material and using the welding we were able to reduce the cost from three dollar 50 cents to 80 cents and that's the value engineering that will be all for this session if you have any questions or concerns use the provided channels and I'll be more than glad to assist you thank you and have a great day