Products and Services - Class Notes | BIT 3414, Study notes of Production and Operations Management

Download Products and Services - Class Notes | BIT 3414 and more Study notes Production and Operations Management in PDF only on Docsity! Chapter 5 Products and Services (Product Design) Ch 5 - 2 Design Approach • Sequential Design Approach --Traditional; work handed from one group to the next --Cost-Plus Pricing after product/process design complete, determine cost to produce, then add profit • Concurrent Design Approach --Diverse Teams; simultaneous input --Price-Minus Pricing determine selling price before design, set target cost to produce, compare at each stage # products total = # surviving to time t + # that have failed before time t R(t) = Q(t) = R(t) + Q(t) = 1 Ch 5 - 5 Reliability # surviving to time t # products total # that have failed before time t # products total Ch 5 - 6 Computing Reliability Components in series all components must function for the system (product) to function Component A Component B RA = 0.90 RB = 0.90 Rsystem = (RA)(RB) 0.90 0.90 Ch 5 - 7 Glen is building a new prototype for a product his team is designing. The prototype will only function correctly if all 5 of the required components function correctly. Based on information provided by suppliers, the reliabilities of the 5 components vary as follows: 0.9800, 0.9752, 0.9910, 0.9522, and 0.9641. What is the reliability of the prototype? Ch 5 - 10 Multi-level Parallel Component Example 0.85 0.95 0.60 Ch 5 - 11 Marcia is developing a product with 4 major components, A, B, C, and D, that must each function in order for the product to function. Components A and B each have a reliability of 0.9975, and components C and D each have a reliability of 0.9200. Marcia has decided to improve the chances of components C and D functioning properly by installing one backup component each for C and D. The backup components will automatically start functioning in the event that C or D fails. Each of the backups has a reliability of 0.9200. What is the reliability of the product?