MBA.782.Mfg.ProcCAJ The Product Design Process Factors in Design Decision Process Types Process Flows Product-Process Matrix Break-Even Analysis Operations Management Product Design and Process Selection Manufacturing

MBA.782.Mfg.ProcCAJ Idea Development –customers, competitors, reverse engineering Product Screening –___________ on Operations, Marketing, and Finance Preliminary Design and Testing –marketing testing; prototyping; Final Design –finalize design Prod. Design Proc. Selection Steps in Product Design

MBA.782.Mfg.ProcCAJ Concept and Design expend about ___ percent of the total cost while committing almost ___ percent of the manufacturing cost.... Product Design/Process Selection - Mfg. Opportunity for Product Design Change

MBA.782.Mfg.ProcCAJ Design for Manufacturing –____________ number of components Product Life Cycle –introduction, growth, maturity, and decline Concurrent Engineering –cross-functional teams vs. ______________________ Remanufacturing –ease of ___________________ Prod. Design Proc. Selection Factors to Consider in Design

MBA.782.Mfg.ProcCAJ Product Design/Process Selection - Mfg. Process Selection Selecting the type of production process to make the product is a ____________ decision. A volume / variety sensitivity issue… –just a few  make them ____ ________ –many  ____________ ______

MBA.782.Mfg.ProcCAJ Process Selection. Types of Processes Conversion –_____ ___________ into ingredients Fabrication –ingredients into a specific form Assembly –specific forms _____________ together Testing –evaluation / performance procedures

MBA.782.Mfg.ProcCAJ Process Selection. Process Flow Structures Project Job Shop Batch Assembly Process Degree of customization Product Volume

MBA.782.Mfg.ProcCAJ Process Flow Choice Project Project Management –Demand - –production begins _________ customer order is received –Variety - –Unique, _____ of a kind –Volume - –______ –Inventory - – _____ materials –Operations - –Product stationary during build; resources __________ to site

MBA.782.Mfg.ProcCAJ Process Flow Choice Job Shop Make to Order ( _____ ) –Demand - –production begins _________ customer order is received –Variety - –_______ degree of customization –Volume - –________ order quantities –Inventory - – _____ materials –Operations - –different, ________, sequence of operatins - “___________”

MBA.782.Mfg.ProcCAJ Process Flow Choice Batch Assemble to Order ( ______ ) –Demand - –assembly ________ customer selects options –Variety - –_______ number of final configurations –Volume - –_______ larger than job shop –Inventory - –components and ___________________ –Operations - –few, _______________ sequences of operations

MBA.782.Mfg.ProcCAJ Process Flow Choice Assembly Line Make to Stock ( ____ ) - “mass production” –Demand - –production based on _________________ demand –Variety - –standard products with variety through _________ –Volume - –_______ volumes –Inventory - –___________-_______ available for immediate delivery –Operations - –______ sequence of operations - “repetitive”

MBA.782.Mfg.ProcCAJ Process Flow Choice Process Continuous - “ ________ ” industries –Demand - –________________, highly automated, 24 / 7 / 365 –Variety - –_____________ outputs; commodities –Volume - –______ high volumes –Inventory - –____ primary input material moves through without stopping –Operations - –dedicated, __________ intensive

MBA.782.Mfg.ProcCAJ Volume vs. Product Stage Process Flow Choice Product Life Cycle Volume IntroductionGrowthMaturityDecline

MBA.782.Mfg.ProcCAJ Rate of Innovation vs. Process Evolution Process Flow Choice Process Life Cycle Rate of Innovation Fluid Pattern Transitional Pattern Specific Pattern

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 Commercial Printer French Restaurant Heavy Equipment Coffee Shop Automobile Assembly Burger King Sugar Refinery Flexibility (High) Unit Cost (High) Flexibility (Low) Unit Cost (Low) Source: Modified from Robert Hayes and Steven Wheelwright, Restoring Our Competitive Edge: Competing through Manufacturing (New York: John Wiley & Sons, 1984). p Process Structure Process life cycle stage Product Structure - Product life cycle stage

MBA.782.Mfg.ProcCAJ Break-Even Analysis –chart to represent alternative total costs due to the ___________ of units produced –suitable when initial investment and fixed cost are __________ and variable costs are _________________ to the number of units produced Process Flow Choice Choosing Among Alternative Processes

MBA.782.Mfg.ProcCAJ Exhibit 5.12 in text Alternative Processes Break-Even Analysis Chart

MBA.782.Mfg.ProcCAJ Alternative Processes Break-Even Analysis Revenue = Total Cost P * Q = FC i + VC i * Q Total Cost 1 = Total Cost 2 FC 1 + VC 1 * Q = FC 2 + VC 2 * Q FC i = fixed cost, P = price, VC i = variable cost, and Q = break even quantity

MBA.782.Mfg.ProcCAJ Break-Even Analysis Example Problem A manufacturing process has a fixed cost of $150,000 per month. Each unit of product being produced contains $25 worth of material and takes $45 of labor. How many units are needed to break even if each completed unit has a value of $90? CAJ9; p.171; #7

MBA.782.Mfg.ProcCAJ Product Design/Process Selection - Mfg

MBA.782.Mfg.ProcCAJ Product Design/Process Selection - Mfg

MBA.782.Mfg.ProcCAJ Product Design/Process Selection - Mfg Chapter Wrap-Up Read Chapter 5 Concepts / Terminology Review Lecture Notes Recommended Problems