R505

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Ch 5 - Products and Services

The Design Process (for goods and/or services) (p181)
1. Idea Generation
  1. Benchmarking for new products - part of TQM, Ch 3
  2. Computerized Knowledge Base of Ideas - previous paper - for your info only - not necessary to read.
    1. Lyons, Patrick, Thomas Abraham, Larry W. Boone, and Brenda Massetti, "Using AI Technology for Technology Transfer", Proceedings of the Second International Conference of Artificial Intelligence Applications on Wall Street, Apr. 22, 1993, Software Engineering Press, Gaithersburg, MD 20879, pp. 242-249.
    2. Abstract: Organizations can facilitate the process of technology transfer by encouraging organizational members to suggest ideas that may not be practical today, but have a reasonable likelihood of implementation in the not too distant future. This paper describes a computerized system whose purpose is to help organizations become aware of the innovative ideas of their organizational members. Specifically, it describes a knowledge-based system to store, sort, evaluate, and make readily available to problem solvers both old and new ideas produced through employee suggestion programs and from other sources.
2. *Feasibility Study (p184)
  1. Consider threats and opportunities in the firm’s environment (Continuation of Strategy Formulation Process - Ch 2)
    1. Economic changes - reduced interest rates
    2. Sociological and demographic changes - reduced family size
    3. Technological changes - reduced computing costs
    4. Political changes - collapse of USSR
  2. Consider the firm’s strengths and weaknesses
    1. Capital, mgt ability, productivity, market positions, technical competence
  3. Select products that match firm’s strengths with opportunities, while avoiding threats and weaknesses. (Mgt 700)
  4. Write performance specifications - include user-based quality standards (Ch 3)
3. Preliminary Design - consists of:
  1. Form Design - shape, size, color, style, market appeal, …
  2. *Functional Design - how the product performs - main concerns:
    1. Reliability - see below
    2. *Maintainability - the ease with which the product is maintained (kept in acceptable operating condition).
    3. *Minimization of Life Cycle Cost - total of purchase price and maintenance activities (increasing reliability increases price, but reduces maintenance).
  3. *Design Specifications - includes design-based and support-based quality standards (Ch 3)
4. Final Design - detailed drawings and production specifications for new product after testing and trial production. Includes production-based quality standards (Ch 3)
  1. *Services - service blueprint of a lending operation - Fig 6.6, p235.
  2. *Goods - bills of material, assembly charts, . . . (Ch 6, page 230)
5. Production Design - more in Chapter 6.
Reliability (p184)
1. Def - Reliability - probability that a product (or component) will function properly for a given length of time.
  1. If a system consists of a series of three independently operating components, then the system reliability, R_s, is:
    R_s = R₁ * R₂ * R₃,
    where R_i is the reliability of the i-th component.
  2. Revised Solved Problem on page 212 - one assembly with 3 components with R₁ = 0.97, R₂ = 0.94, R₃ = 0.99.
    R_s = R₁ * R₂ * R₃ = 0.97 * 0.94 * 0.99 = 0.90
2. *Redundancy - a system can improve its reliability by adding redundant components in parallel.
  1. If component 2 has a backup with reliability R_2b, then the reliability, R_2s , of the two components is:
    R_2s= Prob(first component works) +
    Prob(first component fails) * Prob(backup works)
    = R₂ + (1.0 - R₂) * R_2b
  2. Above problem where component 2 has an identical backup with R_2b = 0.94. What is overall reliability?
        R_2s = 0.94 + 0.06 * 0.94 = 0.9964
        R_s = R₁ * R_2s * R₃ = 0.97 * 0.9964 * 0.99 = 0.9568
        Click here for Excel worksheet solution.
        Do assigned HW - Problem 5-7.
Reducing Time-to-Market (p190)
1. *Design Teams - marketing, engineering, production.
2. *Concurrent Design - simultaneous design of product and its production process.
3. *Design for Production (Manufacture) - designing a product (good or service) so that it can be produced easily and economically (value engineering).
Technology in Design (p193)
1. *Computer-Aided Design - software that uses computer graphics to assist in the creation, modification, and analysis of a design.
2. *Computer-Aided Engineering - software that performs engineering analysis with information from a CAD database.
Improving the Quality of Design (p196)
1. *Design for the Environment - designing a product from material that can be recycled or easily repaired rather than discarded (green design).
2. *Quality Function Deployment (QFD) (p200)
  1. Def - QFD - a structured process that translates the voice of the customer into technical design requirements.
  2. Series of Four Connected Diagrams - see Fig. 5.13, p205
  3. First Diagram converts customer requirements into product design characteristics. See Figs. 5.7-12. Contains:
    1. Customer requirements
    2. Competitive assessment
    3. Product characteristics
    4. Relationship matrix - between customer requirements and product characteristics
    5. Trade-off matrix - among product characteristics
    6. Technical assessments and design targets
  4. For more info (not required), see Quality Function Deployment Institute at www.qfdi.org.
3. *Design for Robustness - the cost effective design of a product to withstand variations in environmental and operating conditions.
  (This page was last edited on October 23, 2006 .)