Chapter 5

1. Chapter 5 Product Design & Process Selection-Manufacturing

2. OBJECTIVES • 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

3. 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. 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. Concurrent EngineeringDefined • 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. 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. House of Quality Value Analysis/ Value Engineering Quality Function Deployment Designing for the Customer Ideal Customer Product

8. 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. 9 Correlation: Strong positive X Positive X X Negative X X X Strong negative * Engineering Characteristics Competitive evaluation X = Us Check force on level ground Energy needed to close door Energy needed to open door Accoust. Trans. Window Door seal resistance Water resistance A = Comp. A Importance to Cust. B = Comp. B Customer Requirements (5 is best) 1 2 3 4 5 AB X Easy to close 7 X AB Stays open on a hill 5 Easy to open 3 XAB A X B Doesn’t leak in rain 3 No road noise 2 X A B Relationships: Importance weighting 10 6 6 9 2 3 Strong = 9 Medium = 3 Target values Reduce energy level to 7.5 ft/lb Reduce energy to 7.5 ft/lb. Reduce force to 9 lb. Small = 1 Maintain current level Maintain current level Maintain current level 5 BA BA B B BXA X Technical evaluation (5 is best) B 4 X A X A 3 A X 2 X 1 Designing for the Customer: The House of Quality Customer requirements information forms the basis for this matrix, used to translate them into operating or engineering goals. • The McGraw-Hill Companies, Inc., 2004

10. 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. 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. Design for Manufacturing and Assembly • Greatest improvements related to DFMA arise from simplification of the product by reducing the number of separate parts: • During the operation of the product, does the part move relative to all other parts already assembled? • Must the part be of a different material or be isolated from other parts already assembled? • Must the part be separate from all other parts to allow the disassembly of the product for adjustment or maintenance?

13. 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. 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. Few Major Products, Higher Volume High Volume, High Standard- ization Low Volume, One of a Kind Multiple Products, Low Volume Flexibility (High) Unit Cost (High) I. Job Shop Commercial Printer French Restaurant II. Batch Heavy Equipment III. Assembly Line Automobile Assembly Burger King IV. Continuous Flow Sugar Refinery Flexibility (Low) Unit Cost (Low) Exhibit 5.10 These are the major stages of product and process life cycles

16. Virtual FactoryDefined 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. 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. 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. Break-Even Analysis (Continued) Break-even Demand = This formula can be used to find any of its components algebraically if the other parameters are known 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. Break-Even Analysis TR $ PROFIT BEP VC TC FC LOSS Q* Quantity

21. 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

22. Process Flow DesignDefined • 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. 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. Lockring 4 Spacer, detent spring 5 SA-2 A-2 Rivets (2) 6 Spring-detent 7 A-5 Component/Assy Operation Inspection Example: Assembly Chart (Gozinto) From Exhibit 5.14

25. Example: Process Flow Chart Material Received from Supplier No, Continue… Inspect Material for Defects Defects found? Yes Return to Supplier for Credit

26. 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. Measuring Product Development Performance Performance Dimension Measures • 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 • Engineering hours per project • Cost of materials and tooling per project • Actual versus plan Productivity • Conformance-reliability in use • Design-performance and customer satisfaction • Yield-factory and field Quality