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►Major factors in strategyMajor factors in strategy CostCost QualityQuality Time-to-marketTime-to-market Customer satisfactionCustomer satisfaction Competitive advantageCompetitive advantage

Product and Service Design

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Trends in Product & Service DesignTrends in Product & Service Design

► Increased emphasis on or attention to:Increased emphasis on or attention to: Customer satisfactionCustomer satisfaction

Reducing time to introduce new product Reducing time to introduce new product or serviceor service

Reducing time to produce productReducing time to produce product

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Trends in Product & Service Trends in Product & Service Design Design (Cont’d)(Cont’d)

► Increased emphasis on or attention to:Increased emphasis on or attention to: The organization’s capabilities to produce The organization’s capabilities to produce

or deliver the itemor deliver the item

Environmental concernsEnvironmental concerns

Designing products & services that are Designing products & services that are “user friendly” “user friendly”

Designing products that use less materialDesigning products that use less material

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► Translate customer wants and needs into Translate customer wants and needs into product and service requirementsproduct and service requirements

► Refine existing products and servicesRefine existing products and services► Develop new products and servicesDevelop new products and services► Formulate quality goalsFormulate quality goals► Formulate cost targetsFormulate cost targets► Construct and test prototypesConstruct and test prototypes► Document specificationsDocument specifications

Product or Service Design ActivitiesProduct or Service Design Activities

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Reasons for Product or Service Reasons for Product or Service DesignDesign

►Be competitiveBe competitive

► Increase business growth & profitsIncrease business growth & profits

►Avoid downsizing with development Avoid downsizing with development of new productsof new products

► Improve product qualityImprove product quality

►Achieve cost reductions in labor or Achieve cost reductions in labor or materialsmaterials

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►Development time and costDevelopment time and cost►Product or service costProduct or service cost►Resulting product or service qualityResulting product or service quality►Capability to produce or deliver a given Capability to produce or deliver a given

product or serviceproduct or service

Objectives of Product and Objectives of Product and Service DesignService Design

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►Taking into account the capabilities of Taking into account the capabilities of the organization in designing goods and the organization in designing goods and servicesservices

Design For OperationsDesign For Operations

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► InternalInternal EmployeesEmployees Marketing departmentMarketing department R&D departmentR&D department

►ExternalExternal Customers (QFD)Customers (QFD) CompetitorsCompetitors SuppliersSuppliers

Sources of Ideas for Products Sources of Ideas for Products and Servicesand Services

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► PlanningPlanning

► Concept DevelopmentConcept Development

► System-Level designSystem-Level design

► Design DetailDesign Detail

► Testing and RefinementTesting and Refinement

► Production Ramp-upProduction Ramp-up

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Variants of Generic product Variants of Generic product Development ProcessDevelopment Process

►Generic market-pullGeneric market-pull►Technology push productsTechnology push products►Platform productsPlatform products►Process intensive productProcess intensive product►Customized productsCustomized products►High risk productsHigh risk products►Quick build productsQuick build products►Complex systemsComplex systems

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Economic Analysis of Project Economic Analysis of Project Development CostsDevelopment Costs

►Using measurable factors to help Using measurable factors to help determine:determine: Operational design and Operational design and

development decisionsdevelopment decisions Go/no-go milestonesGo/no-go milestones

►Building a Base-Case Financial Building a Base-Case Financial ModelModel A financial model consisting of A financial model consisting of

major cash flowsmajor cash flows Sensitivity Analysis for “what if” Sensitivity Analysis for “what if”

questionsquestions

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Designing for the Designing for the Customer Customer

Quality FunctionDeployment

Value Analysis/Value Engineering

Ideal Customer Product

House of Quality

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Designing for the Designing for the Customer: Customer:

Quality Function Quality Function DeploymentDeployment

►Interfunctional teams from Interfunctional teams from marketing, design engineering, marketing, design engineering, and manufacturingand manufacturing

►Voice of the customerVoice of the customer

►House of Quality House of Quality

Designing for the Customer: Designing for the Customer: The House of QualityThe House of Quality

Customer Requirements

Importance to

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Customer requirements information forms the basis for this matrix, used to translate them into operating or engineering goals.

Customer requirements information forms the basis for this matrix, used to translate them into operating or engineering goals.

15Designing for the Customer: Designing for the Customer:

Value Analysis/Value Value Analysis/Value Engineering Engineering

► Achieve equivalent or better Achieve equivalent or better performance at a lower cost while performance at a lower cost while maintaining all functional maintaining all functional requirements defined by the customerrequirements defined by the customer Does the item have any design Does the item have any design

features that are not necessary?features that are not necessary? Can two or more parts be combined Can two or more parts be combined

into one?into one? How can we cut down the weight?How can we cut down the weight? Are there nonstandard parts that Are there nonstandard parts that

can be eliminated?can be eliminated?

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►Traditional ApproachTraditional Approach ““We design it, you build it” or “Over We design it, you build it” or “Over

the wall”the wall”

►Concurrent EngineeringConcurrent Engineering ““Let’s work together Let’s work together

simultaneously”simultaneously”

Design for ManufacturabilityDesign for Manufacturability

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Measuring Product Measuring Product Development PerformanceDevelopment Performance

Measures

•Freq. Of new products introduced•Time to market introduction•Number stated and number completed•Actual versus plan•Percentage of sales from new products

•Freq. Of new products introduced•Time to market introduction•Number stated and number completed•Actual versus plan•Percentage of sales from new products

Time-to-marketTime-to-market

ProductivityProductivity

QualityQuality

•Engineering hours per project•Cost of materials and tooling per project•Actual versus plan

•Engineering hours per project•Cost of materials and tooling per project•Actual versus plan

•Conformance-reliability in use•Design-performance and customer satisfaction•Yield-factory and field

•Conformance-reliability in use•Design-performance and customer satisfaction•Yield-factory and field

Performance Dimension

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Types of ProcessesTypes of Processes►Conversion (ex. Iron to steel)Conversion (ex. Iron to steel)

►Fabrication (ex. Sheet metal Fabrication (ex. Sheet metal to tool) to tool)

►Assembly (ex. Parts to Assembly (ex. Parts to components)components)

►Testing (ex. For quality of Testing (ex. For quality of products)products)

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Process Flow StructuresProcess Flow Structures

► Job shop (ex. machine shop)Job shop (ex. machine shop)

► Batch shop (ex. Electronic Batch shop (ex. Electronic devices)devices)

► Assembly Line (ex. Automobile Assembly Line (ex. Automobile manufacturer)manufacturer)

► Continuous Flow (ex. Petroleum Continuous Flow (ex. Petroleum manufacturer) manufacturer)

IV.Continuous

Flow

III.Assembly

Line

II.Batch

I.Job

Shop

LowVolume,One of a

Kind

MultipleProducts,

LowVolume

FewMajor

Products,HigherVolume

HighVolume,

HighStandard-

izationCommercial

PrinterFrench

Restaurant

HeavyEquipment

AutomobileAssembly

Burger King

SugarRefinery

Flexibility (High)Unit Cost (High)

Flexibility (Low)Unit Cost (Low)

These are the major stages of product and process life cycles

These are the major stages of product and process life cycles

Product structure Product life cycle

Process structureProcess life cycle stage

21Manufacturing Process Flow Manufacturing Process Flow

DesignDesign

►A A process flow designprocess flow design can be can be defined as a mapping of the defined as a mapping of the specific processes that raw specific processes that raw materials, parts, and materials, parts, and subassemblies follow as they subassemblies follow as they move through a plantmove through a plant

►The most common tools to The most common tools to conduct a process flow design conduct a process flow design include assembly drawings, include assembly drawings, assembly charts, and operation assembly charts, and operation and route sheetsand route sheets

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Example: Assembly Chart (Gozinto)Example: Assembly Chart (Gozinto)

A-2SA-2

4

5

6

7

Lockring

Spacer, detent spring

Rivets (2)

Spring-detent

A-5Component/Assy Operation

Inspection

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Example: Process Flow Chart Example: Process Flow Chart

Material Received from Supplier

Inspect Material for Defects Defects

found?

Return to Supplier for Credit

Yes

No, Continue…

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Set Up TimeSet Up Time: : This is the time needed to This is the time needed to prepare for doing an operation. Examples are prepare for doing an operation. Examples are mixing the dough to make pancakes, cleaning mixing the dough to make pancakes, cleaning the paint nozzles prior to changing the color of the paint nozzles prior to changing the color of an automated painting machine, switching on an automated painting machine, switching on and activating a database before accessing and activating a database before accessing records from it, and signing on before buying records from it, and signing on before buying things from Amazon. There may also be a things from Amazon. There may also be a significant time expended in preparation. For significant time expended in preparation. For example, we may have to not only do the example, we may have to not only do the physical set up but also undertake some trial physical set up but also undertake some trial and error production before we get the and error production before we get the operation correct. An example of set up time is operation correct. An example of set up time is the time required to learn a new topic like the time required to learn a new topic like “capacity”. After having spent so much time “capacity”. After having spent so much time getting it correct we must use it some place! getting it correct we must use it some place!

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►Run TimeRun Time: : This is the time required to This is the time required to produce a part or carry out an operation produce a part or carry out an operation once the set up has been accomplished. once the set up has been accomplished. In the lathe example it is 2 seconds. In In the lathe example it is 2 seconds. In the oven example it is the baking time. the oven example it is the baking time. The former is a situation when parts are The former is a situation when parts are made one at a time and the latter an made one at a time and the latter an example of example of batch batch processing. In general processing. In general most tasks can be defined as one at a most tasks can be defined as one at a time, batch or continuous.time, batch or continuous.

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If it takes 36 hours to set up a lathe to If it takes 36 hours to set up a lathe to produce a screw, and it takes 2 seconds produce a screw, and it takes 2 seconds to make a screw, we may wish to make a to make a screw, we may wish to make a few thousand having set up the lathe. few thousand having set up the lathe.

If an oven has a capacity to bake 2 dozen If an oven has a capacity to bake 2 dozen cookies at a time, then we may choose a cookies at a time, then we may choose a reasonable number of cookies to bake at reasonable number of cookies to bake at a time. The consideration here is that the a time. The consideration here is that the cost of baking (reflected in time spent in cost of baking (reflected in time spent in the oven) is the same for 1 cookie to two-the oven) is the same for 1 cookie to two-dozen cookies. dozen cookies.

27consider the capacity of a process called consider the capacity of a process called

“heating” water to make tea. Assume that “heating” water to make tea. Assume that the kettle can hold one gallon of water and the kettle can hold one gallon of water and that the time it takes to heat water to the that the time it takes to heat water to the appropriate temperature is five minutes. We appropriate temperature is five minutes. We say that the cycle time for this task is five say that the cycle time for this task is five minutes. The capacity of “heating” is 1 minutes. The capacity of “heating” is 1 gallon per five minutes and in an hour we gallon per five minutes and in an hour we can do 12 cycles (60/5) and the resultant can do 12 cycles (60/5) and the resultant capacity of this task is 12 gallons per hour. capacity of this task is 12 gallons per hour. Another example is of packing a computer. If Another example is of packing a computer. If it takes on the average 12 minutes to pack a it takes on the average 12 minutes to pack a computer, the capacity of the operation is 1 computer, the capacity of the operation is 1 computer in 12 minutes or 5 computers per computer in 12 minutes or 5 computers per hour. The cycle time is 12 minutes. hour. The cycle time is 12 minutes. Remember that Capacity is a rate — it is the Remember that Capacity is a rate — it is the maximum rate at which work can be done.maximum rate at which work can be done.

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