Engineering Change Notice
Engineering Change Notice
Configuration Management Configuration Management
The need to manage ECNs has led The need to manage ECNs has led to the development of configuration to the development of configuration
management systems management systems
A product’s planned and changing A product’s planned and changing components are accurately
components are accurately identified and control and identified and control and
accountability for change are accountability for change are
identified and maintained identified and maintained
Product Life-Cycle Product Life-Cycle Management (PLM) Management (PLM)
Integrated software that brings Integrated software that brings
together most, if not all, elements of together most, if not all, elements of
product design and manufacture product design and manufacture
Product designProduct design
CAD/CAM, DFMACAD/CAM, DFMA
Product routingProduct routing
MaterialsMaterials
AssemblyAssembly
EnvironmentalEnvironmental
Service Design Service Design
Service typically includes direct Service typically includes direct interaction with the customer
interaction with the customer
Increased opportunity for customizationIncreased opportunity for customization
Reduced productivityReduced productivity
Cost and quality are still determined at Cost and quality are still determined at the design stage
the design stage
Delay customizationDelay customization
ModularizationModularization
Reduce customer interaction, often Reduce customer interaction, often through automation
through automation
Service typically includes direct Service typically includes direct interaction with the customer
interaction with the customer
Increased opportunity for customizationIncreased opportunity for customization
Reduced productivityReduced productivity
Cost and quality are still determined at Cost and quality are still determined at the design stage
the design stage
Delay customizationDelay customization
ModularizationModularization
Reduce customer interaction, often Reduce customer interaction, often through automation
through automation
(c) Customer participation in design and delivery such as counseling, college education, financial management of personal affairs, or interior decorating
Service Design Service Design
Figure 5.12 (a) Customer participation in design
such as pre-arranged funeral services or cosmetic surgery
(b) Customer participation in (b) Customer participation in delivery such as stress test for delivery such as stress test for cardiac exam or delivery of a cardiac exam or delivery of a babybaby
Moments of Truth Moments of Truth
Concept created by Jan Carlzon of Concept created by Jan Carlzon of Scandinavian Airways
Scandinavian Airways
Critical moments between the Critical moments between the
customer and the organization that customer and the organization that
determine customer satisfaction determine customer satisfaction
There may be many of these momentsThere may be many of these moments
These are opportunities to gain or These are opportunities to gain or lose business
lose business
The technician was
sincerely concerned and apologetic about my problem
He asked intelligent
questions that allowed me to feel confident in his abilities
The technician offered various times to have work done to suit my schedule Ways to avoid future problems were suggested
Experience Enhancers
Only one local number needs to be dialed
I never get a busy signal I get a human being to answer my call quickly and he or she is pleasant and responsive to my problem
A timely resolution to my problem is offered
The technician is able to explain to me what I can expect to happen next
Standard Expectations
Moments-of-Truth Moments-of-Truth
Computer Company Hotline Computer Company Hotline
I had to call more than once to get through
A recording spoke to me rather than a person While on hold, I get
silence,and wonder if I am disconnected
The technician sounded like he was reading a form of routine questions
The technician sounded uninterested
I felt the technician rushed me
Experience Detractors
Figure 5.13 Figure 5.13
Documents for Services Documents for Services
High levels of customer High levels of customer
interaction necessitates different interaction necessitates different
documentation documentation
Often explicit job instructions Often explicit job instructions for moments-of-truth
for moments-of-truth
Scripts and storyboards are Scripts and storyboards are other techniques
other techniques
Application of Decision Application of Decision Trees to Product Design Trees to Product Design
Particularly useful when there are a Particularly useful when there are a series of decisions and outcomes series of decisions and outcomes which lead to other decisions and which lead to other decisions and
outcomes outcomes
Application of Decision Application of Decision Trees to Product Design Trees to Product Design
Include all possible alternatives and Include all possible alternatives and states of nature - including “doing states of nature - including “doing
nothing”
nothing”
Enter payoffs at end of branchEnter payoffs at end of branch
Determine the expected value of each Determine the expected value of each branch and “prune” the tree to find
branch and “prune” the tree to find the alternative with the best expected the alternative with the best expected
value value
Procedures Procedures
(.6)(.6) Low sales Low sales
(.4)(.4) High sales High sales (.6)
(.6) Low salesLow sales (.4)(.4)
High sales High sales
Decision Tree Example Decision Tree Example
Purchase CAD
Hire and train engineers
Do nothing
Figure 5.14 Figure 5.14
(.6)
(.6) Low salesLow sales (.4)(.4)
High sales High sales
Decision Tree Example Decision Tree Example
Purchase CAD
(.6) Low sales Low sales
(.4) High sales
Hire and train engineers
Do nothing
Figure 5.14 Figure 5.14
$2,500,000
$2,500,000 RevenueRevenue - 1,000,000
- 1,000,000 Mfg cost ($40 x 25,000)Mfg cost ($40 x 25,000) - 500,000
- 500,000 CAD costCAD cost
$1,000,000
$1,000,000 NetNet
$800,000
$800,000 RevenueRevenue - 320,000
- 320,000 Mfg cost ($40 x 8,000)Mfg cost ($40 x 8,000) - 500,000
- 500,000 CAD costCAD cost - $20,000
- $20,000 Net lossNet loss
EMV (purchase CAD system) = (.4)($1,000,000) + (.6)(- $20,000)
(.6)
(.6) Low salesLow sales (.4)(.4)
High sales High sales
Decision Tree Example Decision Tree Example
Purchase CAD
$388,000
(.6) Low sales Low sales
(.4) High sales
Hire and train engineers
Do nothing
Figure 5.14 Figure 5.14
$2,500,000
$2,500,000 RevenueRevenue - 1,000,000
- 1,000,000 Mfg cost ($40 x 25,000)Mfg cost ($40 x 25,000) - 500,000
- 500,000 CAD costCAD cost
$1,000,000
$1,000,000 NetNet
$800,000
$800,000 RevenueRevenue - 320,000
- 320,000 Mfg cost ($40 x 8,000)Mfg cost ($40 x 8,000) - 500,000
- 500,000 CAD costCAD cost - $20,000
- $20,000 Net lossNet loss
EMV (purchase CAD system) = (.4)($1,000,000) + (.6)(- $20,000)
= $388,000
(.6)(.6) Low sales Low sales
(.4)(.4) High sales High sales (.6)
(.6) Low salesLow sales (.4)(.4)
High sales High sales
Decision Tree Example Decision Tree Example
Purchase CAD
$388,000
Hire and train engineers
$365,000
Do nothing $0
$0
$0 NetNet
$800,000
$800,000 RevenueRevenue - 400,000
- 400,000 Mfg cost ($50 x 8,000)Mfg cost ($50 x 8,000) - 375,000
- 375,000 Hire and train costHire and train cost
$25,000
$25,000 NetNet
$2,500,000
$2,500,000 RevenueRevenue - 1,250,000
- 1,250,000 Mfg cost ($50 x 25,000)Mfg cost ($50 x 25,000) - 375,000
- 375,000 Hire and train costHire and train cost
$875,000
$875,000 NetNet
$2,500,000
$2,500,000 RevenueRevenue - 1,000,000
- 1,000,000 Mfg cost ($40 x 25,000)Mfg cost ($40 x 25,000) - 500,000
- 500,000 CAD costCAD cost
$1,000,000
$1,000,000 NetNet
$800,000
$800,000 RevenueRevenue - 320,000
- 320,000 Mfg cost ($40 x 8,000)Mfg cost ($40 x 8,000) - 500,000
- 500,000 CAD costCAD cost - $20,000
- $20,000 Net lossNet loss
Figure 5.14 Figure 5.14
Transition to Production Transition to Production
Know when to move to productionKnow when to move to production
Product development can be viewed as Product development can be viewed as evolutionary and never complete
evolutionary and never complete
Product must move from design to Product must move from design to production in a timely manner
production in a timely manner
Most products have a trial production Most products have a trial production period to insure producibility
period to insure producibility
Develop tooling, quality control, trainingDevelop tooling, quality control, training
Ensures successful productionEnsures successful production