OPERATIONS AND SUPPLY CHAIN

MANAGEMENT 8TH EDITION

RUSSELL SOLUTIONS MANUAL

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4 - Product Design

Answers to Questions

4-1. A firm’s products and services define its customers, as well as its competitors. New products and services
often involve new markets and require new processes. The design process is the most obvious driver of change
in an organization. It capitalizes on a firm’s core competencies and determines what new competencies need
to be developed. Organizations can gain a competitive edge through designs that (1) bring ideas to the market
quickly, (2) do a better job of satisfying customer needs, and (3) are easier to manufacture, use, and repair than
existing products.

4-2. Quality of design—size; location and amount of lighting; size of blackboards; heat; presentation equipment;
Quality of conformance—no. of students crowded into room; overhead projector or lights don’t work; too hot
or too cold; instructor doesn’t speak loud enough or students are too loud.
4-3. Student answers will vary. Bad designs fail to take the user’s point of view, are too confusing to operate, are
too complex, and go against the natural tendency of the user.

4-4. Student answers will vary.

4-5. Student answers will vary.

4-6. Student answers will vary.

4-7. Perceptual maps compare customer perceptions of a company’s products with competitor products. Students
will construct a variety of maps in response to this question. Typical dimensions include: (a) cost and
reputation, (b) ease of use and features, (c) cost and variety, (d) convenience and cost.

4-8. Benchmarking refers to finding the best-in-class part, product or process, measuring one’s performance against
it, and making recommendations for improvement based on the results. Student answers will vary. Most of the
benchmarking studies compare processes, rather than products, across industries.

4-9. Again, the answers to this question will vary considerably. Some possible characteristics are: size of student
body, size of faculty and staff, salary levels, research dollars, publications, number of degrees, types of degrees,
SAT or GMAT scores, number of National Merit Scholars, graduation rate, employment rate, and average
salary of graduates.

4-10. A market analysis is conducted to assess whether or not sufficient demand for the proposed product exists to
merit investment in its further development. If the demand potential exists, an economic analysis is conducted
which looks at estimates of production and development costs and compares them to estimated sales volume.
Finally, technical and strategic analyses are completed which answer such questions as: Does the new product
require new technology? Is the risk or capital investment excessive? Does the company have sufficient labor
and management skills to support the technology required? Is sufficient capacity available for production?
Does the new product provide a competitive advantage for the company? Does it draw on corporate strengths?
Is it compatible with the core business of the firm?

4-11. Performance specifications tell how a product is to perform. Design specifications detail the measurements
and standards to which a product is to be built so that it meets performance specifications. Manufacturing
specifications outline how the processes are supposed to operate in order to produce the product to meet design
specifications.

4-12. Reliability is the probability that a given part or product will perform its intended function for a specified
length of time under normal conditions of use. Maintainability refers to the ease and/or cost with which a
product is maintained or repaired. Maintainability and reliability are closely related. For example, if a product
is cheap to manufacture and priced so low that customers throw it away when it fails (such as calculators,
telephones, and watches), maintainability may be a moot issue. Similarly, if a product is so reliable that it
rarely breaks down, then ease of repair many not be important. On the other hand, it may be less costly to make
a product easy to maintain than to increase its reliability. And for some products, both reliability and
maintainability are very important (e.g., office machines, computers).

4-13. Simplification attempts to reduce the number of parts and assemblies in a design and make the remaining parts
compatible. Fewer parts and better fitting parts provide fewer chances for error in manufacture and assembly.
Standardization makes possible the interchangeability of parts among products, resulting in higher volume
production and purchasing, lower investment in inventory, easier purchasing and material handling, fewer
quality inspections, and less difficulties in production. Modular design consists of combining standardized
building blocks or “modules’’ in a variety of ways to create unique finished products. Thus, even though the
parts may be standardized, the finished product is unique.
4-14. Design teams can obtain input from a variety of sources before erroneous decisions are made. There is often a
synergistic effect of people working together. Studies have found that the key to a good design is the
involvement and interaction of the “create, make, and market’’ functions from the beginning of the design
project. That said, working in teams can be difficult. It is usually easier and less conflicting to work solo. Team
members must be convinced that their joint effort will produce better results than individual efforts.

4-15. Concurrent design changes the design process from a sequential one, where decisions are made by separate
departments, to simultaneous decision making by design teams. Concurrent design attempts to integrate
product design and process planning into a common activity. It helps improve the quality of early design
decisions and thereby reduces the length and cost of the design process. In a group project, students are
responsible for completing an assigned portion of the project. If the project is well designed with clear
expectations, this division of labor will work. If not, considerable rework will be required.

4-16. DFM identifies product design characteristics that are inherently easy to manufacture, focuses on the design
of component parts that are easy to fabricate and assemble. Techniques for DFM include: design for assembly
(DFA), failure mode and effect analysis (FMEA), fault tree analysis (FTA), and value analysis (VA). Design
for supply chain (DFSC) considers the capabilities of suppliers at each level of the supply chain when
designing a product, and looks across products to reduce design variations, increase component commonality
and apply universal design concepts.

4-17. Failure Mode and Effects Analysis (FMEA) is a systematic approach to analyzing the causes and effects of
product failures. It begins with listing the functions of the product and each of its parts. Failure modes are then
defined and ranked in order of their seriousness and likelihood of failure. Each failure is addressed one by one,
causes are hypothesized, and design changes are made to reduce the chance of failure. The objective of FMEA
is to anticipate failures and design them out of the system. Fault tree analysis (FTA) is similar to FMEA except
that it emphasizes the interrelationship between failures, and presents the analysis more graphically. Value
analysis (also known as value engineering) was developed by General Electric in 1947 to eliminate
unnecessary features and functions in product designs. It has re-emerged as an excellent technique for use by
multifunctional design teams. An example fault tree analysis for a term paper is given on the next page.
4-18. Students will find references to design for environment (DFE), extended producer responsibility (under the
title of product stewardship), green design, remanufacturing, and sustainable development. The best source of
environmental policy for other countries is the European Union’s information site at http://europa.eu

4-19. Student responses will vary.

4-20. The ISO 14000 family of international standards offers a wide-ranging portfolio of standardized sampling,
testing and analytical methods to deal with specific environmental challenges. It has developed more than 350
international standards for monitoring the quality of air, water and soil. These standards provide business and
government with scientifically valid data on the environmental effects of economic activity, and serve in a
number of countries as the technical basis for environmental regulations. ISO 14000 also provides a strategic
approach to environmental management systems (EMS) that can be implemented in any type of organization
in either public or private sector (companies, administrations, public utilities). ISO 14000 was developed in
response to discussions of “sustainable development’’ at the United Nations Conference on Environment and
Development in Rio de Janeiro in 1992. The International Standards Organization (ISO) put together a
committee of scientists to develop the standards which were first published in 1996. A company obtains
certification from a 3rd party registrar who follows ISO 14000 document guidelines and performs audits and
site visits. Certification allows companies to use Environmental Labeling, reduces insurance, regulatory and
operating costs, and enhances market appeal. Although voluntary, ISO 14000 standards are often referenced
 in technical regulations and other types of legal documents. In addition, companies in certain industries require
their suppliers to be ISO 14000 certified. For example, Ford suppliers had to have at least one of their plants
certified by the end of 2001 and the remainder by 2003. Globally, Japan has the largest number of ISO 14000
registered companies, followed by the UK, Germany, Sweden, and the U.S.

4-21. Quality Function Deployment (QFD) is a structured process that translates the voice of the customer to
technical requirements at every stage of design and manufacture. QFD forces management to spend more time
defining the new product changes and examining the ramifications of those changes. More time spent in the
early stages of design means less time is required later to revise the design and make it work.

4-22. A robust design is one able to withstand variations in environmental and operating conditions and still operate
as intended. Example—a cell phone that works after repeatedly being dropped.

4-23. CAD has been especially useful in testing designs (CAE) and as a means of integrating design and manufacture
(CAD/CAM). Technology has enabled us to design new products more quickly, consider many more
alternatives than would be possible manually, test the design on a computer screen without building a
prototype, document the design in different forms, and automatically transfer the design to manufacturing.
Design centers or team members can be located in diverse geographic locations and still communicate freely.
Experts can collaborate on designs and make changes from a distance via the Internet.

Solutions to Problems
4-1. Most students will not find these instructions clear. For example, should the center line be folded lengthwise
or widthwise? Which way should the airplane be folded in half? How exactly do you fold back the wings? A
diagram of each step would definitely help in communicating the design. It’s fun to see how many different
prototypes the students come up with from the same design instructions. After the class agrees on a set
procedure, revise the instructions, draw a diagram, and test them on an unsuspecting student.

4-2. Folding the paper lengthwise in alternate directions could be made clearer if you added “like an accordion.’’
Words such as “fan out’’ and “small fold’’ in “nose’’ of plane are imprecise. It is also unclear whether to fold
the paper lengthwise or widthwise (either way will do). As with the first design, a diagram would be helpful.
This plane was easier to construct but did not look as much like a plane! In terms of flying ability, this plane
is supposed to fly further (like a glider). The first plane flies higher and faster.

4-3. This system has both parallel and series components. Calculate the reliability of the parallel components first:

a. x = 0.95 broadcast success

5
4-4.
x = 0.9898 subsystem reliability
b. x = 0.98 broadcast success
5

x = 0.9960 subsystem reliability

 c. x = 0.99 broadcast success
5

x = 0.9980 subsystem reliability

4-5.

RS = 1 − (1 − R1 )(1 − R2 ) (1 − R3 )
= 1 − ( 0.10 )( 0.20 )( 0.30 )
= 0.9440

4-6. a. Vendor 1: .94  .90 + .10 (.86 )   .93 = .8620

Vendor 2: .85  .93 + .07 (.88 )   .95 = .8007

Vendor 3: .92  .95 + .05 (.90 )   .90 = .8239
Choose vendor 1.

b. Vendor 1: .94  .86  .90  .93 = .6766

Vendor 2: .85  .88  .93  .95 = .6609
Vendor 3: .92  .90  .95  .90 = .7079
Yes, choose vendor 3.

4-7. a. .98  .97  .95  .96  .99 = 0.8583

No, the probability of failure is (1 − .8583) = 0.1417
b. 5 0.96 = 0.9919
Each component would need a reliability of .9919

4-8. a. System A reliability = .93 x .93 = .8649

Component cost = $1500 x 2 = $3000
Failure cost = (1-.8649) x $10,000 = $351
Total cost of system A = $4351

b. System B reliability = .95 x .95 x .95 = .8574

Component cost = $2000 x 3 = $6000
Failure cost = (1-.8574) x $10,000 = $1426
Total cost of system B = $7426

System A is more reliable and less costly than System B.

c. System C reliability = [.95 + (.05)(.90)] x .95 x [.95 + (.05)(.90)] = .9405

Component cost = ($1000 x 2) + ($2000 x 3) = $8000
 Failure cost = (1-.9405) x $10,000 = $595
Total cost of system C = $8595

d. System D reliability = [.90 + (.10)(.90)] x [.90 + (.10)(.90)] x [.90 + (.10)(.90)] = .9703

Component cost = $1000 x 6= $6000
Failure cost = (1-.9703) x $10,000 = $297
Total cost of system D = $6297

System D is more reliable and less costly than System C. This is somewhat surprising because we usually
think of a more reliable system as being more costly.

4-9. a.

Component No. System Purchase Failure Failure Total

System Reliability Components Reliability Cost Cost Probability Cost
Basic 0.80 5 0.3277 $1,000 $50,000 0.6723 $34,616.00
Standard 0.90 5 0.5905 $2,000 $50,000 0.4095 $22,475.50
Professional 0.99 5 0.9510 $5,000 $50,000 0.0490 $7,450.50

Choose the professional system.

b.

Component No. System Purchase Failure Failure Total

System w/backup Components Reliability Cost Cost Probability Cost
Basic 0.960 5 0.8154 $2,000 $50,000 0.1846 $11,231.37
Standard 0.9900 5 0.9510 $4,000 $50,000 0.0490 $6,450.50
Professional 0.9999 5 0.9995 $10,000 $50,000 0.0005 $10,025.00
Choose the standard system.

4-10. a. .90 *.90 *.90 = .729

b. .90 + (.10*.80) = .98; .98 * .98 * .98 = .941

4-11. a. .75 *.75 * .75 = .422

b. .99 * .50 * .70 = .347
c. (.60 + (.40*.60)) * .80 * (.50 + (.50*.40)) = .470
d. Choice c. is most reliable

4.12 a. Reliability Of Bus Travel = 0.90 * 0.93 = .837

b. Reliability Of Air Travel = .90 * .50 = .45

••
c. Reliability Of Car Travel = .70 + (.30*.40) = .82

d. Reliability of Car and Bus Travel = (.79 + (.19 *.40)) * .93 = .813

Choose a. Bus Travel

4-13. a. .97 *.97 * .95 *.90 = .80
.90 * .90 * .90 * .90 = .65

b. [.90 + (1-.90)*.90] * [.90 + (1-.90)*.90] * [.90 + (1-.90)*.90] * [.90 + (1-.90)*.90] = .961

[.97 + (1-.97)*.80)] * [.97 + (1-.97)*.80)] * [.95 + (1-.95)*.80)] *[.90 + (1-.90)*.80] = .959

With replacement workers, shift reliability improves by 30% during the summer months and 16% during
the rest of the year.

c. Yes, Lisa gets a Super Fry award.

4-14.

4-15.

4-16. SA = MTBF / (MTBF + MTTR) = 100/(100+24) = .8065

4-17.

MTBF MTTR System

Provider (hours) (hours) Availability
Able Copy 40 1 0.9756
Business Mate 80 4 0.9524
Copy Whiz 240 8 0.9677

Choose Able Copy

4-18.

No. of
failures MTBF MTTR System
Provider per 8 hrs (mins) (mins) Availability
Airway 10 48 2 0.9600
Bellular 8 60 4 0.9375
CyCom 3 160 10 0.9412

Choose Airway

4-19.

Mean Time Mean Time

No. of MTBF to Reach to Fix MTTR System
Provider problems (hours) Customer Customer (hours) Availability
JCN 50 (8 x 40) / 50 = 6.4 3 2 5 0.5614
Bell 100 (8 x 40) / 100 = 3.2 2 1 3 0.5161
Comtron 250 (8 x 40) / 250 = 1.3 1 0.5 1.5 0.4604

Choose JCN

4-20. Choose Yourizon.

Time to regain Failure Uptime

No. service, Rate, as %,
ISP Failures MTTR MTBF SA
Xceptional 12 2 40 0.952
Yourizon 4 4 120 0.968
Zelltell 3 10
160 0.941
4-21. Answers will vary. Here is a representative solution.
4-22. Answers will vary. Here is a possible QFD matrix.
4-23. Answers will vary. This is a sample set up for the problem.
4-24. Students will come up with some interesting examples. Here is a sample worksheet, also available as an excel
file on the text website.
CASE SOLUTION 4.1 - Lean and Mean
CASE SOLUTION 4.2 – Greening Product Design

1. Hal expresses the reaction of many who view green design as “the next big thing” in management circles, perhaps
a passing fad. However, he does have a point that changing a design so significantly is not a simple process, and
that he needs time to explore the consequences of these changes. Perhaps he also needs time to explore the benefits
of green design.
2. A good way to justify green design is to quantify the effects on both the environment and the bottom line, short-
term and long-term.
3. Some companies, such as Patagonia, incorporate green design into their mission, i.e., who they are as a
company. Green design spurs innovation and becomes a competitive advantage. Other companies, such as Wal-
Mart, have found such large cost savings from green design that they also gain an advantage. Customers also
pressure companies to act responsibly and their actions can affect sales. These are the most common reasons,
other than legal requirements, why companies go green.
4. It is generally easy to purchase green commodity products, like light bulbs. The challenge is choosing a
sustainable product when it is more costly, less convenient or less attractive. An interesting Harvard Business
School report, entitled “Sweatshop Labor is Wrong Unless the Jeans are Cute”
(http://hbswk.hbs.edu/item/6126.html) says that ethical behavior is influenced by the desirability of the
product. Thus, we might buy a green product that costs a little more, but not a lot; or we might opt for a non-
green product if it is “cute.”