om proddesign

7/23/2019 OM Proddesign

http://slidepdf.com/reader/full/om-proddesign 1/69

Product Design & ProcessSelection

Operations

ManagementProf Dr Pir Roshan S Rashdi

1



2

Product Design & Process

Selection Product design is the process of deciding

on the unique characteristics andfeatures of a company’s product

Process selection is the development ofthe process necessary to produce theproduct being designed.

Product design and process selectiondecisions are lined

!oth a"ects Product cost #uality

$ustomer satisfaction



Product/Service DesignProcess

% process that denes the

Appearance and features,

Quality characteristics, Spec limits and target levels

Inputs (laor, capital, materials!

"ransformation process

Supply chain # suppliers, channels of

distriution

of a product'service that a company is

planning to produce. (



Product Design and Process

Selection

)



*

Product Design & Process

Selection + denedProduct design , the process of dening all of the companies

product characteristics

Product design must support product manufacturability

-the ease ith hich a product can be made/ Product design denes a product’s characteristics of0

appearancematerials

dimensions

tolerances andperformance

standards.

Process Selection , the development of the processnecessary to produce the designed product.



$ompanies 3aving $ompetitive

%dvantage 4hrough 4heir Products 5rgani6ations provide goods and services for

the society. 7reat products are ey to thesuccess. 4hey provide competitive advantage.

3onda0 engine technology

8icrosoft0 P$ softare

9ntel0 8icroprocessors

8ichelin0 4ires Dell $omputer0 $ustomi6ed hardare and

softare and Dell does this very fast.

:



Some ;ell <non $ompanies 3aving$ompetitive %dvantage 4hrough 4heirProducts

4oyota’s competitive advantage is rapidresponse to changing customer demand. 4heirshorter design time -less than 2 years hich isbelo the industry standard/ gives them acompetitive advantage.

3ospitals speciali6e to gain competitiveadvantage

+ children hospitals

+ heart disease

=



Product >ife $yclesProduct >ife $ycles

May e any length from a fe$May e any length from a fe$hourshours ((a ne$spapera ne$spaper!,!, monthsmonths((cell phonescell phones!, years!, years

((furnituresfurnitures!,!, to decadesto decades ((%olgs$agen &eetle%olgs$agen &eetle!!

A product's life is divided intoA product's life is divided intofour phases)* Introduction, +*four phases)* Introduction, +*

ro$th, -* Maturity, .* Declinero$th, -* Maturity, .* Decline

"he follo$ing gure sho$s"he follo$ing gure sho$sho$ these four stages areho$ these four stages arelin0ed to product sales, cashlin0ed to product sales, cash1o$ and cost*1o$ and cost* ?



Product >ife $ycles

2egativecash 1o$

Introductionro$th Maturity Decline

S a l e s , c o s t , a

n d c a s h 1 o $

3ost of development and production

3ash1o$

2et revenue (prot!

Sales revenue

4oss

@



Product >ife $ycle

Introductory PhaseIntroductory Phase

5ine tuning may $arrantunusual e6penses for

)* 7esearch

+* Product development-* Process modication and

enhancement

.* Supplier development1A



Product >ife $ycle

ro$th Phasero$th Phase

Product design egins tostaili8e

9:ective forecasting ofcapacity ecomes

necessary

Adding or enhancingcapacity may e

necessary 11



Product >ife $ycle

Maturity PhaseMaturity Phase

3ompetitors no$

estalished

;igh volume, innovativeproduction may e

needed Improved cost control is

re<uired

12



Product >ife $ycle

Decline PhaseDecline Phase

=nless product ma0es aspecial contriution tothe organi8ation, mustplan to terminate

o:ering

1(



1)

4he Product Design Process

Step 1 + 9dea Development +Someone thins of a need and a product'service

design to satisfy it0 customers maretingengineering competitors benchmaringreverse engineering

Reverse engineering0 the process ofdisassembling a product to analy6e its designfeatures



1*

4he Product Design ProcessStep 1 + 9dea Development + Someone thins of a need and a

product'service design to satisfy it0 customers mareting

engineering competitors benchmaring reverseengineering

Step 2 + Product Screening + Bvery business needs a

formal'structured evaluation process0 t ith facility andlabor sills si6e of maret contribution margin brea+evenanalysis return on sales

Step ( , Preliminary Design and 4esting + 4echnical

specications are developed prototypes built testing starts

Step ) , Cinal Design + Cinal design based on test resultsfacility equipment material & labor sills denedsuppliers identied



Product design Product design is the process of

deciding on the unique characteristicsand features of a company’s product

4he method by hich ne productsevolve from conceptuali6ation throughengineering to manufacturing and

mareting. Steps in product include idea

generation product screeningpreliminary design and testing and naldesign

1:



Scope ofproduct

developme

nt team

Product DevelopmentSystem

Scope fordesign

andengineerin

g teams

9valuation

Introduction

"est Mar0et

5unctional Specications

Design 7evie$

Product Specications

3ustomer 7e<uirements

Aility

Ideas

1=



1?

4he Product DesignProcess

9dea development0 all productsbegin ith an idea hether from0 customers competitors or suppliers



9dea 7eneration

IdeasCompetitor based

Supply chain based

Research based

1@



Reverse Bngineering

Reverse engineering is thedismantling and inspectingof a competitor’s product todiscover productimprovements*

2A



Research & Development -R&D/

5rgani6ed e"orts to increase

scientic noledge or productinnovation & may involve0 Basic Research advances noledge

about a subect ithout near+term

eEpectations of commercialapplications.

Applied Research achieves commercialapplications.

Development converts results of 21



22

Product Design Process

9dea developments selection a"ects

Product quality

Product cost

$ustomer satisfaction

5verall manufacturaility , the ease

ith hich the product can be made



8anufacturability 8anufacturability is the ease of

farication and/or assemly$hich is important for

$ost

Productivity #uality

2(



2)

Design for 8anufacturing-DC8/

uidelines to produce a product

easily and protaly

Simplication > Minimi8e parts

Standardi8ation

Design parts for multiply

applications

=se modular design

Simplify operations



Design $hange to Reducethe Fumber of Parts in a !racet

2*



$oncurrent Bngineering

Concurrent engineering is the ringing togetherof engineering design and

manufacturing personnelearly in the design phase*

2:



2=

$oncurrent Bngineering

Old ?over>the>$all@ se<uential products

design process

Bach function did its or and passed it tothe neEt function

Improved 3oncurrent 9ngineering process

%ll functions form a design team thatdevelops specications involves customers

early solves potential problems reduces

costs & shortens time to maret



2?



2@

Over the Wall Approach

Desig

nMf

g

New

Product



Story of Tree Swing:

What marketing suggested Add unnecessary value and complexity

Fail to consult engineers

1,(A



Story of Tree Swing: What management approved

Cost conscious , Detached from customers

1,(1



Story of Tree Swing: As designed by Engineering

Technical interpretation rather than practicalStops after ‘can we build it

1,(2



What was manufactured

You will get what you have been givenDetached from users, specifier & designers

1,((

Story of Tree Swing:



Story of Tree Swing: As maintenance installed it

Necessity is mother of inventionEnjoy quick fix, sticky tapes

1,()



Story of Tree Swing: What the customer wanted

If only we had listened, understood, andchecked with them once in a while

1,(*



(:

>ife $ycles of Products

Time

Introduction

Growth

Maturity

Saturation

Decline

D e

m a n d

Flash memory

Compact discs

cassettes

Design

for low

volume



(=

!rea+Bven %nalysis

!rea+even analysis is a tool used to computethe amount of goods that have to be sold ustto cover costs.

!rea+even analysis considers to functions of# 4otal cost , sum of Eed and variable cost

4otal cost G C H -I$/J# Revenue , amount of money brought in from sales

Revenue G -SP/ J #

# G number of units sold



(?

!rea+Bven %nalysis0 7raphical%pproach



(@

Process Selection

Product design considerations must includethe process

9ntermittent processes0 Processes used to produce a variety of

products ith di"erent processingrequirements in loer volumes. -such ashealthcare facility/

Repetitive processes0 Processes used to produce one or a fe

standardi6ed products in high volume. -suchas a cafeteria or car ash/



)A

Product+Process 7rid



)1

Process 4ypes

Process types can be0 Proect process , mae a one+at+a+time

product eEactly to customer specications !atch process , small quantities of product

in groups or batches based on customerorders or specications

>ine process , large quantities of a standardproduct

$ontinuous process , very high volumes of afully standard product

Process types eEist on a continuum



)2

9ntermittent IS. Repetitive

Cacility >ayouts



)(

Process Selection$onsiderations

Process selection is ased onve principal considerations

1. Product+Process 7rid2. Degree of vertical integration

(. CleEibility of resources

). 8iE beteen capital & humanresources

*. Degree of customer contact



Process Decisions+Iertical9ntegration & 8ae or !uy

Vertical integration refers to the degree a rm choosesto do processes itself> ra$ material to sales !acard 9ntegration means moving closer to primary operations Corard 9ntegration means moving closer to customers

A rm's Make-or-Buy choices should e ased on thefollo$ing considerations Strategic impact %vailable capacity BEpertise #uality considerations Speed $ost -Eed cost H variable cost/mae G $ost -Eed cost H Iariable cost/buy

see 3h .B

&usiness are trending to$ard less backward integration, more

outsourcing ))



)*

Product >ife $ycle also a"ectsdecisions

Product life cycle #series of changingproduct demand

3onsider product

life cycle stages Introduction ro$th Maturity Decline

5acility C processinvestment dependson life cycle



Tass or operations

!"amples# $iving an

admission ticet to a

customer% installing a

engine in a car% etc&

!"amples# $iving an

admission ticet to a

customer% installing a

engine in a car% etc&

Decision 'oints!"amples# (o) much

change should be

given to a customer%

)hich )rench shouldbe used% etc&

!"amples# (o) much

change should be

given to a customer%

)hich )rench shouldbe used% etc&

Purpose and !amples

Source0 $hase Kacobs & %quilano Operations Management for Competitive Advantage 11'e

5lo$chart Symols for Process Design

):

5lo$chart Symols for Process



!"amples# Sheds%

lines of people )aiting

for a service% etc&

!"amples# Sheds%

lines of people )aiting

for a service% etc&

!"amples# Customers

moving to a seat%

mechanic getting a

tool% etc&

!"amples# Customers

moving to a seat%

mechanic getting a

tool% etc&

Storage areas or

*ueues

+lo)s of

materials or

customers

Purpose and !amples

Source0 $hase Kacobs & %quilano Operations Management for Competitive Advantage 11'e

5lo$chart Symols for ProcessDesign

)=



)?

Process 9mprovement

5ften stages inthe productionprocess can be

performed inparallel asshon here in-c/ and -d/. 4heto stages canproducedi"erentproducts -c/ orthe sameproduct -d/.



)@

Process Performance8etrics

Process performance metrics ,

dened0 8easurement of di"erent

process characteristics that tell usho a process is performing Determining if a process is functioning

properly is required Determination requires measuring

performance



*A

Process Performance8etrics



Metrics 96ample0 %t Lelle’s Dry $leaning ittaes an average of ( M hours to dry clean &press a shirt ith value+added time estimated

at 11A min. ;orers are paid for a =+hourorday but or * M hr'day accounting forbreas and lunch. Lelle’s completes 2* shirtsper day hile the industry standard is 2? for acomparable facility.

Process Ielocity G -4hroughput 4ime/'-Ialue+addedtime/G -21A minutes'shirt/'-11A minutes'shirt/ G

)*E>abor Ntili6ation G -4ime in Nse/'-4ime %vailable/

G -* M hr/'-= hr/ G .=?: or FG*H

BOciency G -%ctual 5utput/'-Standard 5utput/

G -2* shirts'day/'-2? shirts'day/ G .?@ orG

*1



*2

4hroughput 4ime

% basic processperformance metric isthroughput time. % loer

throughput time means thatmore products can movethrough the system. 5negoal of processimprovement is to reducethroughput time.

i i d i &



*(

>ining Product Design &Process Selection

Product design and process selection aredirectly lined

4ype of product selected denes type ofoperation required 4ype of operation available denes

broader organi6ational aspects such as

Bquipment required Cacility arrangement 5rgani6ational structure

>i i P d D i &



*)

>ining Product Design &Process Selection con’t

9mpact of Product >ife $ycle0

9ntermittent and repetitive operations

typically focus on producing productsin di"erent stages of the product lifecycle. 9ntermittent is best for early in

product life repetitive is better forlater hen demand is morepredicable.

>i i P d D i &



**

>ining Product Design &Process Selection con’t

9mpact of $ompetitive Priorities09ntermittent operations are

typically less competitive oncost than repetitive operations.-4hin Qo" the rac vs. custom

tailored clothing./



*:

>ining Design & Process Selection0Summary

Organi8ational Decisions appropriate for di:erent types ofoperations

P d t d S i



Product and ServiceStrategy

4ype of operation is directly relatedto product and service strategy

4hree basic strategies include 8ae+to+stoc in anticipation of demand

%ssemble+to+order built from standardcomponents on order

8ae+to+order produce to customerspecication at time of order

*=



*?

Product and Service Strategy5ptions



*@

Clochart for Di"erent ProductStrategies at %ntonio’s Pi66aria



:A

4echnology Decisions

Information "echnology

Simplify rst then apply appropriate technology

BRP 7PS RC9D %utomation

%utomated 8aterial 3andling0 %utomated guided

vehicles -%7I/ %utomated storage & retrieval

systems -%S'RS/

CleEible 8anufacturing Systems -C8S/

Robotics & Fumerically+$ontrolled -F$/ equipment



:1

B+manufacturing

;eb+based environment createsnumerous business opportunities toinclude Product design collaboration Process design collaboration

$omputer+aided design , uses computergraphics to design ne products

$omputer+integrated manufacturing ,integration of product design processplanning and manufacturing using anintegrated computer system



:2

Design of Services

Service design is unique in that the service

and entire service concept are being

designed

must dene both the service and concept

+ Physical elements aesthetic & psychological

benets

e.g. promptness friendliness ambiance Product and service design must match the needs

and preferences of the targeted customer group



:(

Designing Services vsProducts

Services are di"erent frommanufacturing as they

Produce intangible products 9nvolve a high degree of customer

contact

4ype of service is classiedaccording to degree of customercontact



:)

Service Design 8atriE

Service 3haracteristics Pure services #uasi+8anufacturing 8iEed services

Service Pac0age 4he physical goods 4he sensual benets 4he psychological

benets Di:ering designs

Substitute technologyfor people

7et customer involved 3igh customer attention



:*

Remanufacturing

Nses components of old products inthe production of ne ones and

has0 Bnvironmental benets

$ost benets

7ood for0 $omputers televisions automobiles




::

Product Design and ProcessSelection %cross the

5rgani6ation Strategic and nancial of product

design and process selection

mandates operations or closelyacross the organi6ation 8areting is impacted by product that

is produced

Cinance is integral to the productdesign and process selection issuesdue to frequent large nancial outlays




:=

Product Design and ProcessSelection %cross the

5rgani6ation , con’t Strategic and nancial of product design

and process selection mandates

operations or closely across theorgani6ation 9nformation services has to be developed to

match the needs of the production process

3uman resources provides important inputto the process selection decisions forstaOng needs



$omputer+%ided Design

Computer-Aided Design (CAD) is product

design using computer graphics. increases productivity of designers ( to 1A

times

creates a database for manufacturinginformation on product specications

provides possibility of engineering and costanalysis on proposed designs

:?



Design for manufacturing -DC8/

Design for assembly -DC%/ Design for recycling -DCR/

Remanufacturing

Design for disassembly -DCD/

Robust design

Product design

om proddesign

Documents