BUS 322 Lecture Notes - Lecture 8: Quality Function Deployment, Whole-Life Cost, Lean Manufacturing

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 322
• Professor: Mahmoudian Fereshteh

Document Summary

Cost life cycle: r&d (upstream), design: most cost (upstream), manufacturing/providing the service (upstream), marketing/distribution (downstream), customer service (downstream) Sales life cycle: introduction, growth, maturity, decline, withdrawal => important cost issue arises each stage, some has accelerated life cycle. Target costing: price - current cost = current profit. Competitor price - current profit = target cost. New tech (advanced cost techniques), higher productivity, redesigning. Value engineering + kaizen costing: continuous improvement, operational control (manufacturing stage) Quality function deployment: value engineering + marketing analysis + target costing = redesign/cost reduction components. Benefit desired profitability on new, redesigned products decrease cost (effective, efficient design) without reducing quality and functionality, product development time (improved coordination of design, manufacturing, marketing) increase customer satisfaction (design focus customer value), communication, cooperation, overall product quality. Manufacturing cycle time (lead time): receipt order to shipment. Start (rm orders) + finish time (time production complete) defined in several ways.