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Chapter 3 - Product Design &
Process Selection
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Concurrent Engineering
Old over-the-wall sequential products
design process
Each function did its work and
passed it to the next function
Improved Concurrent Engineering process
All functions form a design team
that develops specifications,
involves customers early, solves
potential problems, reduces costs,
& shortens time to market
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Product Design & Process Selection -
definedProduct design the process of defining all of the companies product
characteristics
Product design must support product manufacturability (the ease
with which a product can be made)
Product design defines a products characteristics of:
3
appearance,
materials,
dimensions,
tolerances, and
performance
standards.
Process Selection the development of the process necessary to produce
the designed product.
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The Product Design Process
Step 1 Planning & Idea Development - Someone thinks of a need and a
product/service design to satisfy it: customers, marketing, engineering,
competitors, benchmarking, reverse engineering
Step 2 - Product Screening - Every business needs a formal/structured
evaluation process: fit with facility and labor skills, size of market,contribution margin, break-even analysis, return on sales
Step 3 Preliminary Design and Testing - Technical specifications are
developed, prototypes built, testing starts
Step 4 Final Design - Final design based on test results, facility, equipment,
material, & labor skills defined, suppliers identified
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The Product Design Process
Idea development: all products begin with anidea whether from:
customers,
competitors or
suppliers
Reverse engineering: buying a competitorsproduct
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Product Design Process
Idea developments selection affects
Product quality
Product cost
Customer satisfaction
Overallmanufacturability the ease with which
the product can be made
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Product Screening
After a product idea has been developed it is
evaluated to determine its likelihood of
success.
Operations:What are the production needs of the proposed new productand how do they match our existing resources?
Marketing What is the potential size of the market for the proposed new
product?
How much effort will be needed to develop a market for the product ?
Finance What is the proposed new products financial potential, cost, and
return on investment?
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Product Screening Tool Break-Even
Analysis
Computes the quantity of goods company
needs to sell to cover its costs
QBE = F/ (SP - VC
) QBE Break even quantity
F Fixed costs
SP selling price/unit
VC Variable cost
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Product Screening Tool Break-Even
Analysis cont
Break-even analysis considers two functions of Q
Total cost sum of fixed and variable cost
Total cost = F + (VC)*Q
Revenue amount of money brought in from sales
Revenue = (SP) * Q
Q = number of units sold
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Break-Even Analysis: Graphical Approach
Compute quantity of goods that
must be sold to break-even
Compute total revenue at an
assumed selling price Compute fixed cost and variable
cost for several quantities
Plot the total revenue line and the
total cost line
Intersection is break-even
Sensitivity analysis can be done to
examine changes in all of the
assumptions made
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Preliminary Design and Testing
Design engineers translate general
performance specifications in to technical
specifications.
Prototypes are built and tested.
Changes are made based on test results, and
the process of revising, rebuilding a prototype,
and testing continues.
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Final Design
This is where final product specifications aredrawn up.
The final specifications are then translated into
specific processing instructions to manufacturethe product, which include selecting equipment,outlining jobs that need to be performed,identifying specific materials needed and
suppliers that will be used, and all the otheraspects of organizing the process of productproduction.
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FACTORSIMPACTINGPRODUCT
DESIGN
Design for Manufacture
Product Life Cycle
Concurrent Engineering
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2010 Wiley 14
Design for Manufacturing (DFM)
Guidelines to produce a product easily and profitably
Simplification - Minimize parts
Standardization
Design parts for multiply applications
Simplify operations
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Process
Process: Any set of activities performed by anorganization that takes inputs and transformsthem into outputs ideally of grater value to the
organization.
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Process Selection
Intermittent processes:
Processes used to produce a variety of products withdifferent processing requirements in lower volumes. (suchas healthcare facility)
Repetitive processes:
Processes used to produce one or a few standardizedproducts in high volume. (such as a cafeteria, or car wash)
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Process Types
Process types can be: Project process make a one-at-a-time product exactly to
customer specifications
Batch process small quantities of product in groups or
batches based on customer orders or specifications Line process large quantities of a standard product
Continuous process very high volumes of a fully standardproduct
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Product-Process Grid
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Intermittent VS. Repetitive Facility Layouts
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Process Selection Considerations
Process selection is based on five principal
considerations
1. Product-Process Grid
2. Degree of vertical integration
3. Flexibility of resources
4. Mix between capital & human resources
5. Degree of customer contact
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Process Decisions-Vertical Integration
Vertical integration refers to the degree a firm chooses to doprocesses itself- raw material to sales
Backward Integration means moving closer to primary
operations Forward Integration means moving closer to customers
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Linking Product Design & Process
Selection
Impact of Product Life Cycle:
Intermittent and repetitive operations typically focus onproducing products in different stages of the product lifecycle. Intermittent is best for early in product life; repetitive isbetter for later when demand is more predicable.
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Process flow analysis : A technique used for evaluating a
process in terms of the sequence of steps from inputs to
outputs with the goal of improving its design.
Process flowchart: A chart showing the sequence
of steps in producing the product or service.
Flowchart Symbols for Process Design
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Tasks or operations
Examples: Giving an
admission ticket to a
customer, installing a
engine in a car, etc.
Decision Points
Examples: How much
change should be
given to a customer
Purpose and Examples
Flowchart Symbols for Process Design
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Examples: Sheds,
lines of people waiting
for a service, etc.
Examples: Customers
moving to a seat,
mechanic getting a
tool, etc.
Storage areas or
queues
Flows of
materials or
customers
Purpose and Examples
Flowchart Symbols for Process Design
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Process Improvement
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Product and Service Strategy
Type of operation is directly related to product
and service strategy
T
hree basic strategies include Make-to-stock; in anticipation of demand
Assemble-to-order; built from standard
components on order
Make-to-order; produce to customer specificationat time of order
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Product and Service Strategy Options
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Flowchart for Different Product Strategies
at Antonios Pizzaria
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Process Performance Metrics
Process performance metrics defined:
Measurement of different process
characteristics that tell us how a process is
performing
Determining if a process is functioning properly is
required Determination requires measuring performance
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Process Performance Metrics
Run Time: is time required to produce a batch
of parts
SetupT
ime: is the time required to prepare amachine to make a particular item
Operation time: is the sum of the run time
and setup time
Throughput rate: The output rate that the
process is expected to produce over a period
of time
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Metrics Example: At Zelles Dry Cleaning, it takes anaverage of3 hours to dry clean & press a shirt,with value-added time estimated at110 min. Workersare paid for a 7-hour workday but work 5 hr/day,accounting for breaks and lunch. Zelles completes 25shirts per day, while the industry standard is 28 for acomparable facility.
Process Velocity = (Throughput Time)/(Value-added time)
= (210 minutes/shirt)/(110 minutes/shirt) = 1.90
Labor Utilization = (Time in Use)/(Time Available)
= (5 hr)/(7 hr) = .786 or 78.6%
Efficiency = (Actual Output)/(Standard Output)
= (25 shirts/day)/(28 shirts/day) = .89 or 89%
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Principle (Little's Law)
Little's Law says that, under steady state
conditions, the average number of items in a
queuing system equals the average rate at
which items arrive multiplied by the average
time that an item spends in the system.
WIP = Throughput Time * Throughput Rate
Throughput Time =WIP * Cycle Time
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Throughput Time
A basic process performance
metric is throughput time. A
lower throughput time means
that more products can movethrough the system. One goal of
process improvement is to
reduce throughput time.
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