Tag: product design

OM in the News: Designing a Spot for the iPhone in Your Car

Jeep designers got inspiration for this in-door net when they peeked in car windows and saw a bottle secured with a bungee cord
Jeep designers got inspiration for this in-door net when they peeked in car windows and saw a bottle secured with a bungee cord

When you are covering Chapter 5, Design of Goods and Services, and want a current example of all the issues operations managers face, here is a Wall Street Journal article (July 18, 2013) you may find interesting. In it, we find that Chris Shinouskis, whose title is “Engineering Specialist for Storage” at GM, is one of a handful of designers who carve out compartments to hold the ever-growing array of items people bring into their cars.

Adding storage can be a hard-fought battle, especially as cars today come crammed with high-tech safety, information and entertainment systems, all of which require space-hogging wiring and hardware. But buyers are demanding it–65% of new-car buyers said interior storage is “very” or “extremely important”– as they spend more time on the road and bring their tablets to stay plugged in.

Complicating the storage challenge is the fact that it can take 4 years to develop or completely redesign a model, while the technology world moves much faster. For example, Apple offered 4 generations of its iPad tablet in under 3 years. Matt Rutman, a Ford  storage specialist, was adamant that the new SUV needed a place, right above the shifter, for mobile-phone storage and charging. “I was told it wasn’t possible,” says  Rutman. “So I went back to my own computer and figured it out myself.” His solution involved redoing the ventilation system behind the dash, and moving up the video screen and controls.

The glove compartment, in particular, often becomes catchall for junk, so Chrysler has just designed a glove box in its new Dodge Dart deep enough to fit a small laptop or tablet. To make it fit, Chrysler had to mount the heating and cooling unit vertically, instead of the normal horizontal fit. With the importance of drinks and cell phones, the 2014 Chevy Malibu offers two cup holders and two cellphone cradles, one each for the driver and the passenger.

Discussion questions:

1. What is the role of value engineering in these auto design decisions?

2. What issues do “storage specialists” face?

OM in the News: Apple Redesigns the iPhone Connector — The World Freaks Out

This is indeed from the title of Businessweek’s (July 26, 2012) article about the 30 pin connector found in every Apple product for the past 9 years. That was when Steve Jobs  unveiled the third-generation iPod, the first device with a plug design that has become nearly as significant to independent manufacturers as iTunes has to the music industry. The bottom-mounted connector capable of transferring songs and charging the music player is now a standard Apple  component. Makers of mobile accessories use the plug’s specifications when designing chargers, cases, speakers, and stands for iPods, iPhones, and iPads.

That $1.3 billion-a-year market will soon be upended by the connector’s first overhaul since 2003. The new plug will have only 19 connector pins, down from 30 in the port used by more than 600 million iPods, iPhones, and iPads, as well as millions of third-party accessories. Manufacturers who took the design for granted aren’t thrilled.  “There’s an entire ecosystem built around a single connector that’s going to be obsolete,” says one industry expert.

Apple executives are well aware of that. The company sells its own peripherals and enjoys a lucrative relationship with third-party accessory makers, who pay about $4 for each accessory authorized by Apple. Apple has long kept a close eye on the accessory market and in 2010 slapped patent-infringement lawsuits on companies that sold unlicensed iPod cables, chargers, and speakers.

Regardless of the disruption it will cause, the redesign is overdue. Wireless software is making plugs less critical, as new accessories can play music from an iPod, tablet, or smartphone without a physical link. Some companies have stopped making Apple accessories pending a formal announcement.

The bottom line: A design upgrade for Apple’s connector, unchanged for nearly a decade, could mean new peripherals for much of its huge existing user base.

Discussion questions:

1. How is OM a part of this  product redesign?

2. Describe another product’s redesign and its similarity to the impact on the market.

OM in the News: Will the New Ford F-150 Be Tough Enough?

Just west of Detroit, Ford is working on one of the biggest gambles in its 108-year history: a pickup truck with a largely aluminum body. The radical redesign (a topic in Chapter 5) will help meet tougher federal fuel-economy targets. But as The Wall Street Journal (July 27, 2012) reports, Ford will have to overcome a host of manufacturing obstacles, plus convince die-hard pickup buyers that aluminum is as tough as steel.

Ford is hoping the switch to the lighter metal will cut the weight of its F-150 truck by about 700 pounds,  a 15% reduction. This would enable Ford’s trucks to go farther on a gallon of gasoline, and open the door to the use of smaller engines to further boost fuel economy. (Other car makers also are experimenting with aluminum. Novelis, the world leader in rolled sheet aluminum, is tripling its U.S. production capacity of  aluminum used to make body panels).

Few have as much at stake as Ford. The F-series is one of the most profitable motor-vehicle lines in the world. In 2011, a third of Ford’s $8.8 billion global operating profit was generated by F-series sales. But aluminum is more expensive than steel, and extensive use could drive up costs by $1,500, cut the F-series’ hefty profit margins, or push away price-sensitive customers. Aluminum also is trickier to work with. The switch will require investment in $100’s of millions  in new manufacturing equipment, and the use of auto-assembly techniques that pose challenges in high-volume production. A big headache is the lack of magnetism, requiring powerful and electricity-hungry vacuums to be used to pick up the aluminum sheets for transfer. Assembly plants now use giant magnets to move steel body panels around. Aluminum also is more springy than steel and it scratches more easily.

Discussion questions:

1. What are the main issues facing operations managers with this redesign?

2. What the threats and opportunities Ford faces?

OM in the News: The Making of Amazon’s Kindle Fire

The Wall Street Journal (Nov.18, 2011) has an interesting  article on the manufacture  of Amazon’s new Kindle Fire, and asks: “Is the company making any money on the $199 device”?  Two research firms that follow Apple’s production closely come up with different answers. UBM TechInsights says Amazon pays $143 for the components in the Fire.  ISuppli estimates the cost to be $203. The main difference is in the price of the 7 inch display and touch-screen assembly, which UBM puts at $50, but which ISuppli estimates to be $87.

Both firms agree that Amazon used a lot of techniques to save costs. The box the Fire comes in is the same one used to package the Fire for other retailers like Best Buy. The only accessory inside is a wall charger and cord. “Amazon’s approach was to take out everything they didn’t need”, says iSuppli.

I like this product for class discussion because its one the students care about, yet likely have very little knowledge about its inner workings.

Discussion questions:

1. Why do firms, such as iSuppli and UBM, analyze  products like the Kindle so closely?

2. Why does Amazon view the manufacturing process and component costs as a trade secret?

OM in the News: Redesigning the Chevy Malibu

 While the US’s fuel economy requirements rose just 10 mpg in the past 30 years, they are now poised to rise 2 mpg on average each year over the next decade. And by 2025, new cars must average 54.5 mpg., twice today’s standard! Short of dramatic use of battery-power and hybrid vehicles, how can auto makers reach these lofty targets?  The answer, according to The Wall Street Journal (Aug.30,2011) is a whole bunch of seemingly small product redesign changes, the topic of Chapter 5.

Here is what GM has done to the 2013 Chevy Malibu, due in showrooms early next year, to create a car that will go 92 more miles on a tank of gas than the current model:

1. Round the front bumper, to reduce drag (.4 mpg).

2.  Angular rear tail lamp, to reduce airflow (.3 mpg).

3.  A compact, battery-operated, electric motor to provide more power during acceleration (5 mpg).

4.  No spare tire, but a portable air compressor to fix a flat, thus saving 128 lbs. of weight (.4 mpg).

5.  Aluminum, instead of steel in the hood and a rounded front corner (.4 mpg).

6. “Active shutters” behind the grille to allow air to cool the engine (.3 mpg).

7. Flattened underbody panels , to improve airflow under the car (.4 mpg).

The mpg race is indeed changing product design. The car’s redesign began 3 years ago and involved concentrating on details. “It takes looking at every single gram and kilogram and every part of the car”, says the Malibu’s engineering manager. The small changes Chevy is making add up to a 7.2 mpg improvement.

Discussion questions:

1. What are some other auto changes that can yield mileage improvements?

2. Ask students to each find a product and suggest ways to make it more efficient and ecologically friendly.

OM in the News: Making Airplanes More Efficient

With airlines hemorrhaging billions of dollars a year, largely because of soaring oil prices and environmental regulations, building more efficient jets has become Boeing and Airbus’s biggest OM challenge. Pressured by airline execs,  manufacturers  have already begun making lighter planes to reduce fuel consumption. In 1980, for example, it took 46 gallons of fuel to fly a passenger 1,000 miles. Today it is down to 22 gallons–and could drop to 18 within a decade. Still, a decade ago, fuel accounted for 15% of an airline’s budget. Today, it’s 35%. And airlines worldwide may have to spend an extra $3.3 billion a year to meet new E.U. carbon dioxide restrictions on planes flying into Europe.

So when we talk about product design and sustainability considerations in Ch.5, airline OM managers are desperate for any improvements that can reduce weight and emissions. The Miami Herald (July 4, 2011) reports on some the efficiency gains that were dreams just a few years ago. Both the Boeing 787 and Airbus A350 are new long-range jets with 1/2 their bodies made of carbon-fiber composites (which weigh 20% less than traditional aluminum alloys). Engine manufacturers are unveiling brand new engines for single-aisle planes (which are 75% of the 22,000 jets worldwide)  that promise to cut fuel use by 15% (or $1 million per plane per year).

The Herald also lists more ways to save on fuel: (1)  a satellite-based air traffic control system (several years away) that could cut fuel use by 12%; (2) “winglets” added to the tip of each wing to prevent drag; (3) carrying less weight in the plane– (American is replacing 19,000 catering carts with ones that weigh 16 lbs. less. Southwest is looking at lighter weight seat covers, while Jet Blue is using thinner seats. Every pound saves 30 gallons of fuel/year); and (4), replacing older jets faster (American is replacing aging MD80s with 737 that use 35% less fuel).

Discussion questions:

1. Why is efficiency a product design issue?

2. What other changes can be made to improve operational efficiency?