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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
TechnicalAttributes and
Evaluation
How to SatisfyCustomer Wants
Interrelationships
An
alysisof
Competitors
Lowelectricityrequirements
Aluminum
componen
ts
Autofocu
s
Autoexpo
sure
Paintpallet
Ergonomicdesign
How to SatisfyCustomer Wants
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Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2Color corrections 1
HOQWhat theCustomer
Wants
RelationshipMatrix
TechnicalAttributes and
Evaluation
How to SatisfyCustomer Wants
Interrelationships
An
alysisof
Competitors
5 = High relationship
3 = Medium relationship
1 = Low relationship
Relationship matrix
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HOQWhat theCustomer
Wants
RelationshipMatrix
TechnicalAttributes and
Evaluation
How to SatisfyCustomer Wants
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
TechnicalAttributes and
Evaluation
How to SatisfyCustomer Wants
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
TechnicalAttributes and
Evaluation
How to SatisfyCustomer Wants
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
TechnicalAttributes and
Evaluation
How to SatisfyCustomer Wants
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
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