5–1OperationsManagementOperationsManagementChapter5-DesignofGoodsandServicesChapter5-DesignofGoodsandServicesPowerPointpresentationtoaccompanyPowerPointpresentationtoaccompanyHeizer/RenderHeizer/RenderPrinciplesofOperationsManagement,6ePrinciplesofOperationsManagement,6eOperationsManagement,8eOperationsManagement,8e5–2OutlineOutlineGlobalCompanyProfile:RegalGlobalCompanyProfile:RegalMarineMarineGoodsAndServicesSelectionGoodsAndServicesSelectionProductStrategyOptionsSupportProductStrategyOptionsSupportCompetitiveAdvantageCompetitiveAdvantageProductLifeCyclesProductLifeCyclesLifeCycleandStrategyLifeCycleandStrategyProductProduct--byby--ValueAnalysisValueAnalysis5–3OutlineOutline--ContinuedContinuedGeneratingNewProductsGeneratingNewProductsNewProductOpportunitiesNewProductOpportunitiesImportanceofNewProductsImportanceofNewProductsProductDevelopmentProductDevelopmentProductDevelopmentSystemProductDevelopmentSystemQualityFunctionDeployment(QFD)QualityFunctionDeployment(QFD)OrganizingforProductDevelopmentOrganizingforProductDevelopmentManufacturabilityandValueManufacturabilityandValueEngineeringEngineering5–4OutlineOutline--ContinuedContinuedIssuesForProductDesignIssuesForProductDesignRobustDesignRobustDesignModularDesignModularDesignComputerComputer--AidedDesign(CAD)AidedDesign(CAD)ComputerComputer--AidedManufacturing(CAM)AidedManufacturing(CAM)VirtualRealityTechnologyVirtualRealityTechnologyValueAnalysisValueAnalysisEthicsandEnvironmentallyFriendlyEthicsandEnvironmentallyFriendlyDesignDesign5–5OutlineOutline--ContinuedContinuedTimeTime--BasedCompetitionBasedCompetitionPurchaseofTechnologybyAcquiringPurchaseofTechnologybyAcquiringFirmFirmJointVenturesJointVenturesAlliancesDefiningtheProductAlliancesDefiningtheProductMakeMake--oror--BuyDecisionsBuyDecisionsGroupTechnologyGroupTechnologyDocumentsForProductionDocumentsForProduction5–6OutlineOutline--ContinuedContinuedProductLifecycleManagement(PLM)ProductLifecycleManagement(PLM)ServiceDesignServiceDesignDocumentsforServicesDocumentsforServicesApplicationofDecisionTreestoApplicationofDecisionTreestoProductDesignProductDesignTransitiontoProductionTransitiontoProduction5–7LearningObjectivesLearningObjectivesProductlifecycleProductlifecycleProductdevelopmentteamProductdevelopmentteamManufacturabilityandvalueengineeringManufacturabilityandvalueengineeringRobustdesignRobustdesignTimeTime--basedcompetitionbasedcompetitionWhenyoucompletethischapter,youshouldWhenyoucompletethischapter,youshouldbeableto:beableto:IdentifyorDefine:IdentifyorDefine:5–8LearningObjectivesLearningObjectivesModulardesignModulardesignComputeraideddesignComputeraideddesignValueanalysisValueanalysisGrouptechnologyGrouptechnologyConfigurationmanagementConfigurationmanagementWhenyoucompletethischapter,youshouldWhenyoucompletethischapter,youshouldbeableto:beableto:IdentifyorDefine:IdentifyorDefine:5–9LearningObjectivesLearningObjectivesAlliancesAlliancesConcurrentengineeringConcurrentengineeringProductProduct--byby--valueanalysisvalueanalysisProductdocumentationProductdocumentationWhenyoucompletethischapter,youshouldWhenyoucompletethischapter,youshouldbeableto:beableto:Explain:Explain:5–10RegalMarineRegalMarineGlobalmarketGlobalmarket33--dimensionalCADsystemdimensionalCADsystemReducedproductdevelopmenttimeReducedproductdevelopmenttimeReducedproblemswithtoolingReducedproblemswithtoolingReducedproblemsinproductionReducedproblemsinproductionAssemblylineproductionAssemblylineproductionJITJIT5–11ThegoodorservicetheorganizationThegoodorservicetheorganizationprovidessocietyprovidessocietyToporganizationstypicallyfocusonToporganizationstypicallyfocusoncoreproductscoreproductsCustomersbuysatisfaction,notjustCustomersbuysatisfaction,notjustaphysicalgoodorparticularserviceaphysicalgoodorparticularserviceFundamentaltoanorganization'sFundamentaltoanorganization'sstrategywithimplicationsstrategywithimplicationsthroughouttheoperationsfunctionthroughouttheoperationsfunctionProductDecisionProductDecision5–12ProductStrategyOptionsProductStrategyOptionsDifferentiationDifferentiationShouldiceHospitalShouldiceHospitalLowcostLowcostTacoBellTacoBellRapidresponseRapidresponseToyotaToyota5–13ProductLifeCyclesProductLifeCyclesMaybeanylengthfromafewMaybeanylengthfromafewhourstodecadeshourstodecadesTheoperationsfunctionmustTheoperationsfunctionmustbeabletointroducenewbeabletointroducenewproductssuccessfullyproductssuccessfully5–14ProductLifeCyclesProductLifeCyclesNegativecashflowIntroductionIntroductionGrowthGrowthMaturityMaturityDeclineDeclineSales,cost,andcashflowSales,cost,andcashflowCostofdevelopmentandproductionCostofdevelopmentandproductionCashCashflowflowNetrevenue(profit)Netrevenue(profit)SalesrevenueSalesrevenueLossLossFigure5.1Figure5.15–15ProductLifeCycleCostsProductLifeCycleCostsCostsincurredCostsincurredCostscommittedCostscommittedEaseofchangeEaseofchangeConceptConceptDetailedDetailedMan