2. Manufacturing Environment 1

Product DesignProduct design is the process of

deciding the company’s product unique characteristics and features.Product design defines a product’s

characteristics like - Appearance, materials, dimensions, tolerances, performance standards

Product design must support the business strategy

Product design must match the needs and preferences of the targeted customer group

1Chapter 2 Manufacturing Environment

Objectives of Product Design• To generate profit in long run

• To achieve the desired product quality

• To reduce the development time

• To minimize the cost of product

• To ensure the manufacturability

2 Product Design and Development 2

Factors Influencing Product Design

• Customer requirements• Convenience of the user• Trade off between function and form• Work methods and equipments• Cost-price ratio• Product quality• Process capability• Effect on existing products• packaging


Characteristics of Good Design

• Functionality – Meeting the objective of customers need

• Reliability– Dependability on the performance for designed period

of time without deterioration in quality• Productivity

– Reducing number of operations– Replacing the operations that take more time than

stipulated– Replacing the operations that cost mores the budget

with improved technology2 Product Design and Development 4

…Characteristics of Good Design• Quality

– Process: Inspection only informs us about the quality but it is the process that builds the quality in a product.

– Material: Material play an important role in making the product durable and reliable.

– Tolerances in the dimensions of individual parts affect the final quality of assembled product.

• Standardization– Producing various types of products adds to the cost of

production– So, it is important to consider the options of

standardization in terms of• Parts to be used• Using common manufacturing facilities


…Characteristics of Good Design

• Maintainability– Product design should be such that maintaining would be

simple and cost effective in terms of repair and replacement of defective part

– Effective design minimizes the downtime thereby achieving customer satisfaction

• Cost effective– Cost of production for a product is influenced at the

designing stage– Design plays an important role in economical

manufacturing2 Product Design and Development 6

Product Design Development

1.Need Identification: Identify customer’s need

2.Concept Development: Description of form, functions, features

3.Product Design: Specification of geometry, materials, and tolerances

4.Production Process Design and Development: Design and develop systems like material acquisition, human resource, storing, transportation, distribution etc.


Product Design Process5. Testing and Refinement:

Prototypes are made and tested and improvements are done

6. Product Launch and Support: • Train workforce• Provide warranty• Avail repair parts and after sale services• Upgrade parts


Product Life Cycle• Product life cycle is the predictable pattern of demand

throughout the product life.• Products are born. They live and they die• Phases: Introduction, growth, maturity, decline• Product life cycles may be of few hours( a

newspaper), months (seasonal fashions), years (video cassette tapes) or decades (generators).

• Typically a firm has negative cash flow while it develops a product. When the product is successful, those loses may be recovered.

Chapter 2 Manufacturing Environment 9

Operational Issues in PLCIssues Introductory Growth Maturity Decline

Product variety Different variety

Increasing standardization

Emergence of dominant design

Commodity characteristics

Product Volume

Low Increasing High High

Industry Structure

Small competitors

Fall out and consolidation

Few large competitors

Survivors

Competition Product characteristics

Product quality and availability

Price and dependability

Price


Stages in the Product Life Cycle

Introduction

Growth

Maturity

Decline

Gro

wth

ra

te mp3 players

mp4 players

CD players

iphone

Floppy Disks

cassette players

DVD’s

Fax Machine

¨ Best period to increase market share¨ R&D engineering are critical

Introduction

Strategy & Issues During Product Life

• Company Strategy & Issues

¨ Product design and development are critical

¨ Frequent product and process design changes

¨ Short production runs¨ High production costs¨ Utmost attention to quality¨ Quick elimination of market-revealed

design defects

¨ OM Strategy & Issues


¨ Sensitive to Changes in price or quality

¨ Marketing is critical¨ Strengthen niche

Growth



¨ Forecasting is critical¨ Product and process reliability¨ Competitive product improvements

and options¨ Enhance distribution


¨ Poor time to increase market share¨ Competitive costs become critical¨ Usually poor time to change quality or

price¨ Defend position via fresh promotional and

distribution approaches

Maturity



¨ Standardization - Increasing stability of manufacturing process

¨ Less rapid product changes and more minor annual model changes

¨ Optimum capacity¨ Long production runs¨ Re-examination of necessity of design

changes


¨ Cost control critical to market share

Decline



¨ Little product differentiation¨ Cost minimization¨ Overcapacity in the industry¨ Prune line to eliminate items not

returning a good margin¨ Reduce capacity

Process Life Cycle and Selection of Appropriate Technology

• Process technologies have life cycles similar to product life cycle

• Types of manufacturing technologies changes in its life cycle because of change in volume, process innovation, and automation

• Manufacturing process technology begin from job shop at start up and moves towards the continuous process technology.

• Volume and standardization are low in initial stages of life cycle making unit manufacturing cost higher

• High volume is produced and process are standardized during last stages of life cycle making unit cost lower


Manufacturing Process Flow Design

• It is a method to evaluate the specific processes that raw materials, parts, and subassemblies follow as they move through the plant.

• A good way to start analyzing a process is with a diagram showing the basic elements of a process.


3 Process Selection 18

Types of Production Process

• Job shop• Batch production• Assembly line• Continuous production• Project production

Job Shop• A process technology suitable for a variety of

custom-designed products in small volumes• Customer and producer work on pre-decided

parameters in terms of specifications and costs of the products

• Example: Tailoring shops, printing shops, building contractors, etc.


…Job Shop• Characteristics

– Each product uses only a small portion of the shop’s human resources and general purpose equipment

– With large number of diverse jobs, elaborate job-tracking and control systems are used

– Much time is spent waiting for access to equipment

– Some equipment is overloaded while other is idle– Cost of production is not very competitive


Batch Production• A process technology suitable for a variety of

products in varying volumes

• Settings are frequently changed and form a formidable part of cycle time to producer

• Example: Pharmaceutical companies, paint manufacturing companies, steel pressed parts


…Batch Production• Characteristics

– Cost of infrastructure is high– General purpose machines and material handling

equipment are procured– Material handling and storage is immense– Heavy cost in terms of input materials that needs

to be stored to facilitate at short notice– Skilled and unskilled labor is required– Main consideration for management are: minimum

idle time, minimum in process inventory, perfect coordination between various production shops.


Assembly Line• Assembly Line: Specialized

equipments, skilled manpower are used and developed to produce limited range and high volume of products such as Automobile manufacturer


Continuous Flow• Conversion or further processing of

undifferentiated materials such

• Example– Chemical manufacturer


Product Process Matrix

• IV.• Continuous

• Flow

• III.• Assembly

• Line

• II.• Batch

• I.• Job

• Shop

• Low• Volume,• One of a

• Kind

• Multiple• Products,

• Low• Volume

• Few• Major

• Products,• Higher• Volume

• High• Volume,

• High• Standard-

• ization• Commerci

al• Printe

r• Frenc

h Restaurant

• Heavy• Equipment• Automobile

• Assembly• Burger King

• Sugar• Refinery

• Flexibility (High)• Unit Cost (High)

• Flexibility (Low)• Unit Cost (Low)

• These are the major stages of product and process life cycles

None feasible

None feasible


Product-Process Matrix• Representative industries are listed on the

diagonal of the matrix• Void corners represent incompatible product-

process combinations• Manufacturing flexibility and quality are

competitive priorities in earlier stages, priorities shift toward dependable and competitive cost in later stages


Product Process Matrix• Product process matrix helps us understand why

and how companies change their production operations

• As products, market requirement, and competition change, so must equipment, procedures, and human resources

• If process changes are not made to accommodate product life cycles, the result is competitive disadvantage


Process• A process is a sequence of activities that is intended to achieve some result

to create some added value for the customers.

• A process that does not meet the needs of the firm will punish the firm every minute.

• Objective– Meet or exceed customer requirements– Meet cost & managerial goals

• Has long-run effects– Production efficiency– Product & volume flexibility– Cost & quality


Types of Processes• Conversion (ex. Iron ore into steel

sheets)

• Fabrication : Changing materials into specific form(ex. Forming gold into a crown for tooth)

• Assembly: Assembling parts into components (ex. The production process in a modern car plant)

• Testing :Not fundamental process, but acted as a stand–alone major activity (ex. quality of products)


Symbols for Process Design

• O: Operations

• Ð: Transportations

• : Inspection

• Ⅾ: Delay

• : Storage30Chapter 2 Manufacturing Environment

Tools• Assembly drawing: exploded view of

product showing its components• Assembly chart: Information presented

in the assembly drawing about order and flow pattern

• Route sheet: Specifies operations and process routing for a particular part

• Process flow chart: A graphic tool used to analyze and classify the inter-departmental activities. It is useful in visualization of all operations of operations. It divides activities into five categories: Operations, transportation, storage, inspection, delay.


Assembly Chart: Setting up Fan

• A-1• SA-1

• 1

• 2

• 3

• 4

• Frame

• Mount switch

• Motor housing

• Blade

• A-6• Component/Assembling Operation

• Inspection32Chapter 2 Manufacturing Environment

Process Flow ChartMaterial Received from Supplier

Inspect Material for Defects

Defects found?

Return to Supplier for Credit

Yes

No, Continue…


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2. Manufacturing Environment 1