1. 1 © The McGraw-Hill Companies, Inc., 2004 Chapter 5 Product Design & Process Selection- Manufacturing

2. 2 © The McGraw-Hill Companies, Inc., 2004 Typical Phases of Product Design Development —Concurrent engineering Designing for the Customer —QFD Design for Manufacturability Types of Processes Process Flow Structures Process Flow Design Global Product Design and Manufacturing OBJECTIVES

3. 3 © The McGraw-Hill Companies, Inc., 2004 Typical Phases of Product Design Development Concept Development —Product architecture —Conceptual design —Target market Product Planning —Market building —Small-scale testing —Investment/financial requirements

4. 4 © The McGraw-Hill Companies, Inc., 2004 Typical Phases of Product Design Development Product/Process Engineering —Tools/equipment design —Building/testing prototypes Pilot Production/Ramp-up —Volume production and prove out —Volume increases to commercial targets —Factory start-up

5. 5 © The McGraw-Hill Companies, Inc., 2004 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. 6 © The McGraw-Hill Companies, Inc., 2004 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. 7 © The McGraw-Hill Companies, Inc., 2004 Designing for the Customer Quality Function Deployment Value Analysis/ Value Engineering Ideal Customer Product House of Quality

8. 8 © The McGraw-Hill Companies, Inc., 2004 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

9. Designing for the Customer: The House of Quality ©The McGraw-Hill Companies, Inc., 2004 9 Customer requirements information forms the basis for this matrix, used to translate them into operating or engineering goals.

10. 10 © The McGraw-Hill Companies, Inc., 2004 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?

11. 11 © The McGraw-Hill Companies, Inc., 2004 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

12. 12 © The McGraw-Hill Companies, Inc., 2004 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?

13. 13 © The McGraw-Hill Companies, Inc., 2004 Types of Processes Conversion (e.g., Iron ore to steel) —Converts natural resources to raw materials —Provides inputs to others Fabrication (e.g., Changes sheet metal to car fenders) —Changes raw materials into a specific form Assembly (e.g., Assembles the fender into cars) —Assembles final products Testing (e.g., For quality of products)

14. 14 © The McGraw-Hill Companies, Inc., 2004 Process Flow Structures Job shop (e.g., Copy center making a single copy of a student term paper) —Small batches of a large number of different products Batch shop (e.g., Copy center making 10,000 copies of an ad piece for a business) —Standardized job shop, products follow the same flow pattern Assembly Line (e.g., Automobile manufacturer) —Discrete parts manufactured on a line, following a sequence Continuous Flow (e.g., Petroleum manufacturer) —Production of undifferentiated materials (foods, chemicals) —Often runs 24 hours/day

15. 15 © The McGraw-Hill Companies, Inc., 2004 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 Automobile Assembly Burger King Sugar Refinery Flexibility (High) Unit Cost (High) Flexibility (Low) Unit Cost (Low) Exhibit 5.10 These are the major stages of product and process life cycles

16. 16 © The McGraw-Hill Companies, Inc., 2004 Virtual Factory Defined A virtual factory can be defined as a manufacturing operation where activities are carried out not in one central plant, but in multiple locations by suppliers and partner firms as part of a strategic alliance Partners must understand their own operations and that of other partners The partnership has integrated network of capabilities

17. 17 © The McGraw-Hill Companies, Inc., 2004 Break-Even Analysis A standard approach to choosing among alternative processes or equipment Model seeks to determine the point in units produced (and sold) where we will start making profit on the process or equipment Model seeks to determine the point in units produced (and sold) where total revenue and total cost are equal

18. 18 © The McGraw-Hill Companies, Inc., 2004 Break-Even Analysis Visually presents alternative profit/losses As a function of units produced/sold Choice depends on anticipated demand Most suitable when alternative entails large fixed costs Variable costs are proportional to number of units produced

19. 19 © The McGraw-Hill Companies, Inc., 2004 Break-Even Analysis (Continued) This formula can be used to find any of its components algebraically if the other parameters are known Break-even Demand = Purchase cost of process or equipment Price per unit - Cost per unit or Total fixed costs of process or equipment Unit price to customer - Variable costs per unit Purchase cost of process or equipment Price per unit - Cost per unit or Total fixed costs of process or equipment Unit price to customer - Variable costs per unit

20. 20 © The McGraw-Hill Companies, Inc., 2004 Break-Even Analysis VC FC TC TR PROFIT LOSS $ Quantity BEP Q*

21. 21 © The McGraw-Hill Companies, Inc., 2004 Break-Even Analysis (Continued) Example: Suppose you want to purchase a new computer that will cost $5,000. It will be used to process written orders from customers who will pay $25 each for the service. The cost of labor, electricity and the form used to place the order is $5 per customer. How many customers will we need to serve to permit the total revenue to break- even with our costs? Break-even Demand: = Total fixed costs of process or equipment Unit price to customer – Variable costs = 5,000/(25-5) = 250 customers Example: Suppose you want to purchase a new computer that will cost $5,000. It will be used to process written orders from customers who will pay $25 each for the service. The cost of labor, electricity and the form used to place the order is $5 per customer. How many customers will we need to serve to permit the total revenue to break- even with our costs? Break-even Demand: = Total fixed costs of process or equipment Unit price to customer – Variable costs = 5,000/(25-5) = 250 customers

22. 22 © The McGraw-Hill Companies, Inc., 2004 Process Flow Design Defined A process flow design can be defined as a mapping of the specific processes that raw materials, parts, and subassemblies follow as they move through a plant The most common tools to conduct a process flow design include assembly drawings, assembly charts, and operation and route sheets

23. 23 © The McGraw-Hill Companies, Inc., 2004 Process Flow Design Assembly drawing —Exploded view of the product —Shows its component parts Assembly chart —Uses information in assembly drawing —Defines how parts go together —Shows their order of assembly Operation and route sheet —Specifies operations and process routing —Shows types of equipment/tools requirements

24. 24 © The McGraw-Hill Companies, Inc., 2004 Example: Assembly Chart (Gozinto) A-2SA-2 4 5 6 7 Lockring Spacer, detent spring Rivets (2) Spring-detent A-5 Component/Assy Operation Inspection From Exhibit 5.14

25. 25 © The McGraw-Hill Companies, Inc., 2004 Example: Process Flow Chart Material Received from Supplier Inspect Material for Defects Defects found? Return to Supplier for Credit Yes No, Continue…

26. 26 © The McGraw-Hill Companies, Inc., 2004 Global Product Design and Manufacturing Strategies Joint Ventures —Two companies form a third independent company —For example, GM/Toyota —Facilitates globalization Strategic Suppliers —Suppliers with operations matching parent company’s foreign operation —Provide materials and manufacturing know-how Global Product Design Strategy —Develop standard modules common to all units sold globally (Honda Accord chassis)

27. 27 © The McGraw-Hill Companies, Inc., 2004 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