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Process Management: Creating Value Along the Supply Chain (1st edition) Wisner and Stanley
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Chapter Outline
Introduction
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COPYRIGHT 2008 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.
Learning Objectives
After completing this chapter, you should be able to: Describe the product development process Understand the quality function deployment process Define integrated product development and concurrent engineering Describe technology advances in new product development Understand the role of suppliers in new product development
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COPYRIGHT 2008 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.
Introduction
The essence of any organization is the products or services it
offers. There is an obvious link between the design of those products or services and the success of the organization. Organizations that have well-designed products or services are more likely to realize their goals than those with poorly designed products or services. Hence, organizations have a vital stake in achieving good product and service design.
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Basic research: Research and development teams find ways to increase the number of product innovations Skunkworks: Teams that develop new products in a short timeframe, outside the normal rules of organization. Kaizen investigative teams: Cross-functional teams that visit customer sites, observing the customer using its products and asking lots of questions.
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Developing the concept: If an idea fits with companys strategy, mission, objectives, and financial capabilities, it is further developed.
Quality function deployment (QFD) is a structured approach for integrating the voice of the customer into the product or service development process. The purpose is to ensure that customer requirements are factored into every aspect of the process. House of quality: A graphic tool used by QFD. It's called the House of Quality because of the correlation matrix that is roof shaped and sits on top of the main body of the matrix. The correlation matrix evaluates how the defined product specifications optimize or sub-optimize each other. Benefits: Improved products, processes, services Provides direction for the design process and keeps teams focused Can be used for further improvements
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Warranty Specs
Technical Comparison
Operates properly Easy to understand directions Properly packaged Features Extended Warranty Importance Weighting Target Values Our product
Competitor A's product Competitor B's product
Weight
Customer Requirements
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Our Product
Figure 2.2
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Design Targets
Business case: a written justification for approving the new product/service idea.
drawings of the new product and develop prototypes. Service blueprinting: the standard tool for service
process design
limited basis. Once pilot production is complete, production is ramped up slowly, then volumes are increased to a full-scale launch of the product.
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Greet Customer
Take order
Order Prepared
Sales tracked
Figure 2.4
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Three-dimensional concurrent engineering (3DCE): design of the product, process, and supply chain are considered simultaneously.
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Modularity: the reduction in the number of parts used per product Computer-aided design (CAD): CAD uses computer graphics for product
design.
Advances in technology
DFMA software: a software that can be used anytime during the product
development cycle to analyze and understand the cost effects of design decisions and to improve product design. can quickly analyze and manipulate different design approaches. the resulting lean design will contain fewer parts and be easier to manufacture. can explore alternatives in processes and materials, and immediately see the cost impact of various decisions. allows company to look critically at an existing design, and uncover opportunities for cost savings--primarily through the reduction of parts in the design. engineers who use DFMA reduce or even eliminate costly, back-and-forth tweaking exercises which normally plague the product development process.
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marketing decisions. Product focus: customer does not necessarily know what he or she wants. Early supplier involvement: suppliers are involved in planning, design, and production stages of new product development.
Heightened degree of integration and collaboration Determining the extent of supplier integration / involvement
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Process Selection
Necessary fit between product
development and process development Considerations: volume, variety, equipment flexibility, employee skills Four types of production processes:
Job shop Batch processes Assembly line Continuous production
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over an extended period of time Variability Innovation and changes in service delivery
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