1. Product Design & Process Selection
MBA 8452 Systems and Operations Management
Product Design & Process Selection
— Manufacturing

2. Introduction to Operations Management/ Operations Strategy
Process Analysis
and Design
Project
Management
Planning for Production
Process Control
and Improvement
Process Analysis
Capacity Management
Quality
Management
Aggregate Planning
Job Design
Statistical
Process Control
Just in Time
Scheduling
Manufacturing
Layout/
Assembly Line Balancing
Inventory Control
Supply Chain
Management
Services
Waiting Line Analysis

3. Objective: Manufacturing Design
Describe the Manufacturing Process Categories
Explain The Product-Process Matrix
Describe the Changes in Process Design
Calculate Break-Even Analysis

4. Product Design Process
Concept Development
Product Planning
Detailed Engineering
Engineering Release (Sign-Off)

5. Improving Product Design: Concurrent Engineering
Definition
cross-functional coordination, integration, and simultaneous development of product
Benefits
reducing time to market
decreasing cost
improving quality and reliability

6. Traditional Design vs. Concurrent Design
Traditional design: walls between functional areas
customers
Marketing
Design
Engineers
Manuf.
Production
Product concept
Performance specs
Design specs
Manaufacturing specs
Concurrent design: break down the walls between functional areas

7. Improving Product Design: Quality Function Deployment
Translate the “voice of the customer” into technical design requirements
Use interfunctional teams from marketing, engineering, and manufacturing
Basic tool--House of Quality

8. 6. Technical assessment and
House Of Quality
6. Technical assessment and
target values
1. Customer
requirements
4. Relationship
matrix
3. Product
characteristics
Importance
2. Competitive
assessment
5. Tradeoff
Matrix

9. 5 3 2 1 4 6 House of Quality: An Example Correlation: *
Strong positive
Positive
Negative
Strong negative *
House of Quality: An Example 5
Engineering Characteristics
Energy needed
to close door
Check force on level ground
to open door
Water resistance
Door seal
resistance
Accoust. Trans.
Window
Competitive evaluation
X = Us
A = Comp. A
B = Comp. B
(5 is best) X AB
X AB
XAB
A X B
X A B 3
Importance to Cust.
Customer
Requirements
Easy to close
Stays open on a hill
Easy to open
Doesn’t leak in rain
No road noise 7 5 3 2
Relationships:
Strong = 9
Medium = 3
Small = 1 2 1 4
Technical evaluation
(5 is best) 5 4 3 2 1 B A X BA
BXA
Target values
Importance weighting 10 6 9
Reduce energy
level to 7.5 ft/lb
Reduce force
to 9 lb.
to 7.5 ft/lb.
current level
Maintain 6

10. Improving Product Design: Design for Manufacture & Assembly
Value Analysis/Value Engineering (VA/VE)
focus on the ratio of value to cost
Guidelines
Simplification (fewer parts)
Standardization (more standard parts)
Modular design (combining parts)

11. Types of Processes Assembly line Continuous process
Project
Job shop/Batch production
Continuous process
Assembly line

12. Product - Process Matrix
Product Characteristics
One-of-a Low Vol Multiple Limited Products High Volume
Kind Low Std Products High Volume High Demand
Movie
production
High flexibility
& unit cost
Type of Process
Project
Job Shop
Batch
Assembly Line
Continuous
Printing
shop
Fast food
restaurant
Auto
assembly
Oil, sugar
refinery
Low flexibility
& unit cost

13. Process Selection Break-even Analysis
Single Process--Adopt it or not?
Break-even point:
Profit= > demandBE=?
Two Processes--Which one is better?
Cross-over point:
Profit1=Profit > demandCO=?

14. Break-even Analysis Example--I
Tom Smith, a recent graduate of GSU, has just formed a company called the New Age Surf to provide high speed internet access with a competitive price of $20 per month. The fixed cost each month is estimated to be $60,000. Unit cost for each customer is approximately $10 per month. How many customers must be attracted in order to break even?

15. Break-even Analysis Example--II
Suppose now Tom is given another option. Instead of purchasing equipments, he can rent them from other companies. This will reduce the monthly fixed cost to $20,000. But unit cost for each customer will be $15 per month. What option should Tom adopt?