Chap.1 Production Planning

8/10/2019 Chap.1 Production Planning

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1Introduction of

Production Design

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Outline

1. Product Life Cycle

2. Product Development

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Outline - Continued

Generating New Products New Product Opportunities

Importance of New Products

Product Development

Product Development System

Quality Function Deployment (QFD)

Organizing for Product Development

Manufacturability and Value Engineering

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Regal Marine

Global market

3-dimensional CAD system

Reduced product development time

Reduced problems with tooling

Reduced problems in production

Assembly line production

JIT

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Product Decision

The objective of the product decision is to develop

and implement a product strategy that meets the

demands of the marketplace with a competitive

advantage

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Product Strategy Options

Differentiation

Shouldice Hospital

Low cost

Taco Bell

Rapid response Toyota

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1. Product Life Cycles

May be any length from a few

hours to decades The operations function must

be able to introduce newproducts successfully

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Product Life Cycles

Negativecash flow

Introduction Growth Maturity Decline

Sales,cost,andcashflow Cost of development and production

Cashflow

Net revenue (profit)

Sales revenue

Loss

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Product Life Cycle

Introductory Phase

Fine tuning may warrantunusual expenses for

1. Research

2. Product development

3. Process modification andenhancement

4. Supplier development

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Product Life Cycle

Growth Phase

Product design begins tostabilize

Effective forecasting ofcapacity becomes necessary

Adding or enhancing capacitymay be necessary

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Product Life Cycle

Maturity Phase

Competitors now established

High volume, innovativeproduction may be needed

Improved cost control,reduction in options, paringdown of product line

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Product Life Cycle

Decline Phase

Unless product makes aspecial contribution to theorganization, must plan toterminate offering

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Product Life Cycle Costs

Costs incurred

Costs committed

Ease of change

Concept Detailed Manufacturing Distribution,design design service,

prototype and disposal

Percentoftotal

cost

100

80

60

40

20

0

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Product-by-Value Analysis

Lists products in descending order of their

individual dollar contribution to the firm

Lists the total annual dollar contribution of

the product

Helps management evaluate alternative

strategies

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Product-by-Value Analysis

Individual

Contribution ($)

Total Annual

Contribution ($)Love Seat $102 $36,720

Arm Chair $87 $51,765

Foot Stool $12 $6,240Recliner $136 $51,000

Sams Furniture Factory

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New Product Opportunities

1. Understanding thecustomer

2. Economic change

3. Sociological anddemographic change

4. Technological change

5. Political/legal change

6. Market practice, professionalstandards, suppliers, distributors

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Importance of New Products

Industryleader

Topthird

Middlethird

Bottomthird

Percentage of Sales from New Products50%

40%

30%

20%

10%

Position of Firm in Its Industry

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Scope ofproduct

developmentteam

2. Product Development

Scope fordesign andengineering

teams

Evaluation

Introduction

Test Market

Functional Specifications

Design Review

Product Specifications

Customer Requirements

Ability

Ideas

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Quality Function Deployment

1. Identify customer wants

2. Identify how the good/service will satisfy customer

wants

3. Relate customer wants to product hows

4. Identify relationships between the firms hows

5. Develop importance ratings

6. Evaluate competing products

7. Compare performance to desirable technical

attributes

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QFD House of Quality

Relationshipmatrix

How to satisfycustomer wants

Interrelationships

Competitiv

e

assessment

Technicalevaluation

Target values

What thecustomer

wants

Customerimportance

ratings

Weightedrating

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House of Quality (HOQ) Example

Your team has been charged withdesigning a new camera for GreatCameras, Inc.

The first action isto construct aHouse of Quality


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HOQ

Customer

importancerating(5 = highest)

Lightweight 3

Easy to use 4

Reliable 5Easy to hold steady 2

Color correction 1

What thecustomer

wants

What theCustomer

Wants

RelationshipMatrix

TechnicalAttributes and

Evaluation

How to SatisfyCustomer Wants

Interrelationships

Analysisof

Com

petitors


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HOQWhat theCustomer

Wants

RelationshipMatrix


Evaluation


Interrelationships

An

alysisof

Competitors

Lowelectricityrequirements

Aluminum

componen

ts

Autofocu

s

Autoexpo

sure

Paintpallet

Ergonomicdesign



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Lightweight 3

Easy to use 4

Reliable 5

Easy to hold steady 2Color corrections 1

HOQWhat theCustomer

Wants

RelationshipMatrix


Evaluation


Interrelationships

An

alysisof

Competitors

5 = High relationship

3 = Medium relationship

1 = Low relationship

Relationship matrix


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HOQWhat theCustomer

Wants

RelationshipMatrix


Evaluation


Interrelationships

An

alysisof

Competitors

L

owelectric

ityrequirements

A

luminumc

omponents

A

utofocus

A

utoexposure

P

aintpallet

E

rgonomicdesign

Relationshipsbetween the

things we can do


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HOQ

Weightedrating

What theCustomer

Wants

RelationshipMatrix


Evaluation


Interrelationships

An

alysisof

Competitors

Lightweight 3

Easy to use 4Reliable 5

Easy to hold steady 2

Color corrections 1

Our importance ratings 22 9 27 27 32 25


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HOQ

Co

mpanyA

Co

mpanyB

G P

G P

F GG P

P P

Lightweight 3

Easy to use 4

Reliable 5Easy to hold steady 2

Color corrections 1

Our importance ratings 22 5

How well docompeting products

meet customer wants

What theCustomer

Wants

RelationshipMatrix


Evaluation


Interrelationships

Analysisof

Competitors


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HOQ

Targetvalues(Technicalattributes)

Technicalevaluation

Company A 0.7 60% yes 1 ok G

Company B 0.6 50% yes 2 ok F

Us 0.5 75% yes 2 ok G

0.5A

75%

2to

2circuits

Failure1pe

r10,000

Panelranki

ng

What theCustomer

Wants

RelationshipMatrix


Evaluation


Interrelationships

Analysisof

Competitors


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HOQ

Deploying resources through theorganization in response tocustomer requirements

Production

process

Qualityplan

House4

Specific

components

Productionprocess

House3

Design

charac

teristics

Specificcomponents

House

2

Customer

requirements

Designcharacteristics

House1

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Organizing Product Development

Historicallydistinct departments Duties and responsibilities are defined Difficult to foster forward thinking

A Champion Product manager drives the product through

the product development system and relatedorganizations

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Organizing Product Development

Team approach

Cross functionalrepresentatives from all

disciplines or functions

Product development teams, design formanufacturability teams, value engineering

teams

Japanese whole organization approach

No organizational divisions

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Manufacturability andValue Engineering

Benefits:

1. Reduced complexity of products

2. Reduction of environmental impact

3. Additional standardization of products

4. Improved functional aspects of product

5. Improved job design and job safety

6. Improved maintainability (serviceability) of the

product

7. Robust design

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Cost Reduction of a Bracket viaValue Engineering

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Issues for Product Development Robust design

Modular design

Computer-aided design (CAD)

Computer-aided manufacturing (CAM)

Virtual reality technology

Value analysis Environmentally friendly design

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Robust Design

Product is designed so that smallvariations in production or

assembly do not adversely affectthe product

Typically results in lower cost and

higher quality

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Modular Design

Products designed in easily segmented

components

Adds flexibility to both production and marketing

Improved ability to satisfy customer

requirements

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Computer Aided Design (CAD) Using computers to

design products and

prepare engineering

documentation

Shorter development

cycles, improved

accuracy, lower cost Information and designs

can be deployed

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Extensions of CAD

Design for Manufacturing and Assembly(DFMA)

Solve manufacturing problems during the

design stage

3-D Object Modeling Small prototype

development

CAD through the

internet

International data

exchange through STEP

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Computer-Aided Manufacturing

(CAM)

Utilizing specialized computers

and program to controlmanufacturing equipment

Often driven by the CAD system(CAD/CAM)

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Benefits of CAD/CAM

1. Product quality

2. Shorter design time

3. Production cost reductions4. Database availability

5. New range of capabilities

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Virtual Reality Technology

Computer technology used to develop an

interactive, 3-D model of a product from the

basic CAD data

Allows people to see the finished design beforea physical model is built

Very effective in large-scale designs such as

plant layout

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Value Analysis

Focuses on design improvement duringproduction

Seeks improvements leading either to a better

product or a product which can be produced

more economically with less environmentalimpact

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Ethics, Environmentally Friendly

Designs, and Sustainability

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The Ethical Approach

View product design from asystems perspective

Inputs, processes, outputs

Costs to the firm/costs to society

Consider the entire life cycle of

the product

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The Ethical Approach Goals

1. Developing safe end environmentallysound practices

2. Minimizing waste of resources3. Reducing environmental liabilities

4. Increasing cost-effectiveness of

complying with environmentalregulations

5. Begin recognized as a goodcorporate citizen

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Guidelines for Environmentally

Friendly Designs

1. Make products recyclable

2. Use recycled materials

3. Use less harmful ingredients

4. Use lighter components

5. Use less energy

6. Use less material

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Product Documents

Engineering drawing

Shows dimensions, tolerances, and materials

Shows codes for Group Technology

Bill of Material Lists components, quantities and where used

Shows product structure

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Engineering Drawings

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Bills of MaterialBOM for Panel Weldment

NUMBER DESCRIPTION QTY

A 60-71 PANEL WELDMT 1

A 60-7 LOWER ROLLER ASSM. 1R 60-17 ROLLER 1

R 60-428 PIN 1P 60-2 LOCKNUT 1

A 60-72 GUIDE ASSM. REAR 1R 60-57-1 SUPPORT ANGLE 1A 60-4 ROLLER ASSM. 1

02-50-1150 BOLT 1A 60-73 GUIDE ASSM. FRONT 1A 60-74 SUPPORT WELDMT 1R 60-99 WEAR PLATE 102-50-1150 BOLT 1

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Bills of Material

Hard RockCafes HickoryBBQ BaconCheeseburger

DESCRIPTION QTYBun 1Hamburger patty 8 oz.Cheddar cheese 2 slicesBacon 2 stripsBBQ onions 1/2 cupHickory BBQ sauce 1 oz.Burger set

Lettuce 1 leafTomato 1 sliceRed onion 4 ringsPickle 1 slice

French fries 5 oz.Seasoned salt 1 tsp.11-inch plate 1HRC flag 1

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Group Technology Scheme

Parts grouped into families with similar

characteristics

Coding system describes processing and

physical characteristics

Part families can be produced

in dedicated manufacturing cells

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Group Technology Scheme

(a) Ungrouped Parts(b) Grouped Cylindrical Parts (families of parts)

Grooved Slotted Threaded Drilled Machined

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Group Technology Benefits

1. Improved design

2. Reduced raw material and purchases

3. Simplified production planning and control

4. Improved layout, routing, and machine loading5. Reduced tooling setup time, work-in-process, and

production time

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Documents for Production

Assembly drawing

Assembly chart

Route sheet Work order

Engineering change notices (ECNs)

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Assembly Drawing

Shows explodedview of product

Details relativelocations toshow how toassemble the

product

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Assembly Chart

1

2

3

4

5

6

7

8

9

10

11

R 209 Angle

R 207 Angle

Bolts w/nuts (2)

R 209 Angle

R 207 Angle

Bolt w/nut

R 404 Roller

Lock washer

Part number tag

Box w/packing material

Bolts w/nuts (2)

SA1

SA2

A1

A2

A3

A4

A5

Leftbracket

assembly

Right

bracketassembly

Poka-yokeinspection

Identifies the point ofproduction wherecomponents flow intosubassemblies and

ultimately into thefinal product

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Route Sheet

Lists the operations and times requiredto produce a component

Setup OperationProcess Machine Operations Time Time/Unit

1 Auto Insert 2 Insert Component 1.5 .4Set 56

2 Manual Insert Component .5 2.3Insert 1 Set 12C

3 Wave Solder Solder all 1.5 4.1

componentsto board

4 Test 4 Circuit integrity .25 .5test 4GY

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Work Order

Instructions to produce a given quantityof a particular item, usually to a schedule

Work Order

Item Quantity Start Date Due Date

Production DeliveryDept Location

157C 125 5/2/08 5/4/08

F32 Dept K11

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Engineering Change Notice

(ECN) A correction or modification to a

products definition or

documentation Engineering drawings

Bill of material

Quite common wi th long product l ife

cyc les, long manufactur ing lead t imes, or

rapid ly chang ing techno logies

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Product Life-Cycle Management

(PLM)

Integrated software that bringstogether most, if not all, elements ofproduct design and manufacture

Product design

CAD/CAM, DFMA

Product routing

Materials Assembly

Environmental

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Transition to Production

Know when to move to production

Product development can be viewed as

evolutionary and never complete

Product must move from design to production

in a timely manner

Most products have a trial production period

to insure producibility

Develop tooling, quality control, training Ensures successful production

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Transition to Production

Responsibility must also transition as the

product moves through its life cycle

Line management takes over from design

Three common approaches to managingtransition

Project managers

Product development teams

Integrate product development andmanufacturing organizations

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End of Chap. 1

Chap.1 Production Planning

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