1 © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved Chapter 4 Product Design

2 © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved Product Design Process Product Development Process —Concurrent engineering Economic Analysis of Development Projects Designing for the Customer —QFD Design for Manufacturability Measuring Product Development Performance Global Product Design and Manufacturing OBJECTIVES

3 © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved The Product Design Process Contract Manufacturers —Outsource none core competencies —Car components Core Competencies —What you do best —Competitive advantage —Characteristics:  Variety of markets  Customer benefits  Non-imitable

4 © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved Typical Phases of Product Development Planning Concept Development System-Level Design Design Detail Testing and Refinement Production Ramp-up

5 © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved Concurrent Engineering Defined Concurrent engineering can be defined as the simultaneous development of project design functions, with open and interactive communication existing among all team members for the purposes of reducing time to market, decreasing cost, and improving quality and reliability —Reducing time to market —Decreasing cost, and —Improving quality and reliability

6 © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved Concurrent Engineering(Continued) Teams provide the primary integration mechanism in CE programs There are three types of teams —Program Management Team —Technical Team —Design-Build Teams Time savings of CE programs are created by performing activities in parallel

7 © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved Economic Analysis of Project Development Projects Captures measurable factors only Economic analysis useful to help determine: —Operational design & development decisions —Go/no go milestones Build a base-case financial model: —Model consisting of major cash flows —Sensitivity analysis for “what if” questions

8 © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved Designing for the Customer Quality Function Deployment Value Analysis/ Value Engineering Ideal Customer Product House of Quality

9 © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved Designing for the Customer: Quality Function Deployment Interfunctional teams from marketing, design engineering, and manufacturing Voice of the customer —Customer requirements —Does customer always know what he wants? —Manufacturer must interpret customer’s wants/needs House of Quality —Team uses customer feedback to make decisions —Translate customer requirements into goals

Designing for the Customer: The House of Quality ©The McGraw-Hill Companies, Inc., Customer requirements information forms the basis for this matrix, used to translate them into operating or engineering goals.

11 © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved Designing for the Customer: Value Analysis/Value Engineering (VA/VE) Achieve equivalent or better performance at a lower cost while maintaining all functional requirements defined by the customer —Technique for determining value content of a product —Value is what people are willing to pay for something —Does the item have any design features that are not necessary? —Can two or more parts be combined into one? —How can we cut down the weight? —Are there nonstandard parts that can be eliminated?

12 © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved Design for Manufacturability Traditional Approach —“We design it, you build it” or “Over the wall” —Very long lead times —Often cost prohibitive Concurrent Engineering —“Let’s work together simultaneously” —Team engineering/design concept —Avoids pitfalls of traditional approach

13 © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved Design for Manufacturing and Assembly Greatest improvements related to DFMA arise from simplification of the product by reducing the number of separate parts: 1.During the operation of the product, does the part move relative to all other parts already assembled? 2.Must the part be of a different material or be isolated from other parts already assembled? 3.Must the part be separate from all other parts to allow the disassembly of the product for adjustment or maintenance?

14 © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved Measuring Product Development Performance Measures Frequency of new products introduced Time to market introduction Number stated and number completed Actual versus plan Percentage of sales from new products Frequency of new products introduced Time to market introduction Number stated and number completed Actual versus plan Percentage of sales from new products Time-to-market Productivity Quality Engineering hours per project Cost of materials and tooling per project Actual versus plan Engineering hours per project Cost of materials and tooling per project Actual versus plan Conformance-reliability in use Design-performance and customer satisfaction Yield-factory and field Conformance-reliability in use Design-performance and customer satisfaction Yield-factory and field Performance Dimension