Production and Operations Management

Module 2: Product, Process and Service design

P r o d u cti o n
and
M a r k eting O p e rati on s
C usto me r

Pro du ct
D e sign a n d
D e velo p m e nt

Product Design
• Products are designed to meet customer requirements , needs and expectations
• Examples: Car, TV, Soap, Garments, perfumes, Apartments
• Examples: Bank loans, course curriculum, postal services,

Product design and Development stages

1. Design and development Inputs( eg. Features, safety, customer needs and expectations,
Regulations)
2. Design and Development Outputs ( eg Specifications, Drawings )
3. Design and development review ( with production, maintenance, QA for
manufacturability and serviceability)
4. Design Verification ( eg. calculations, prototype and testing)
5. Design and development validation ( eg. Performance testing , field trials)

Product design concepts

1. Research and development
• Using state of knowledge on the subject for commercial applications ( Applied
research)
2. Reverse Engineering
• Dismantling and studying competitors products. Reduces development time.
Provides opportunity to improve on the competitor’s product
3. Manufacturability
• To ensure ease of manufacture and assembly. Using existing manufacturing
capabilities such as machines, equipment, Skills of workers .
 4. Standardization
• Refers to use of less variety of parts to build a products.
• Modular design refers to standardization of modules or sub-assembly of parts.
• Reduced cost. Faster time to market, Ease of maintenance and servicing.
• Example: use of indicator lamps, meters for various models of Motorcycles
5. Robust design
• Designing a product that is operational in varying environmental and other
conditions of usage (eg. dust, vibration, temperature , humidity, over load )
6. Concurrent Engineering
• Involvement of other functional areas during early stages of design
• Functions like Marketing, production, purchase, Tool design, servicing are
involved for review and incorporation of any changes required.
• Faster time to market. No holdups during production.
7. Computer-aided design
• Use of computer soft ware for design
• Three dimensional visualizations possible.
• Faster, accurate, cost effective, easy to change, easy to transmit, easy to
collaborate,
• Links to computer aided manufacturing possible

P r o d uc t d esi g n c o nc e pts
• L ife C yc le o f pr o d uct

M a t u ri t y
Dem and
D e cl i n e

gro wth

In cu b ati o n

Time
Manufacturing processes ( Production processes)

Broad classification:
1. Forming processes
• Change shape of work piece without adding or removing material
2. Machining processes
• Change shape of work piece by removal of material in the form of chips or
particles
3. Assembly processes
• Joining or fastening of parts/ components
4. Heat treatment
• Heating , soaking and cooling of parts in furnace at determined levels to obtain
desired mechanical properties
5. Finishing processes
• Change the surface properties of parts. For protective and decorative purposes. Eg
corrosion resistance, coloring, aesthetics

Forming processes

• Casting- pouring or forcing molten material into moulds of desired cavity. Eg.
Gravity casting, injection moulding, pressure die- casting
• Forging-Formed during plastic state by impact or force. Eg. Die forging, upset
forging, roll forging
• Extrusion- forcing the metal through to obtain desired cross section
• Drawing -Pulling material through dies of desired cross section. Eg. Wire drawing
• Stamping- normally for thin sheets. Impacting in a press to obtain desired size and
shape.
• Embossing or coining- Stretching of metal in a closed die. Eg. Making of currency
coins. Medals
Machining processes
• Turning- material is removed by a cutting tool in contact with rotating work piece.
• Drilling and boring- making of holes using drill bit. Making of large circular cavities
using boring tools
• Milling- making of flat surfaces on work piece using a milling cutter
• Grinding- Finishing of circular parts or flat parts using a rotating grinding wheel.
Normally for hardened parts.
• Shaping and planning- material is removed by linear motion of a cutting tool on work
piece.
• Electro –discharge machining( EDM)- Erosion of material by sparking between
electrode and work piece. For very hard materials , intricately shaped parts, tooling
Assembly processes
• Welding-joining of work pieces by fusion due to heat. eg. Gas welding, arc welding,
spot welding, seam welding, laser welding
• Brazing- joining of metals using brazing alloys. Strength of joint less than welding
 • Soldering- joining of metals using soldering alloys. Eg. Making of PCBs. Soldering
of wires. Normally for electrical connections
• Riveting- joining of overlapped plates by upsetting rivets in holes . Eg. Boiler
• Fastening-joining using screws, nut and bolts
• Assembly using adhesives- used for metals, wood, plastics, rubber. Eg furniture,
shoes, toys
Heat treatment processes
• Annealing- softening to improve machinablity
• Normalizing-to improve grain structure and relive internal stresses
• Hardening- to increase hardness which improves wear properties.
• Tempering- normally follows hardening. To decrease brittleness
• Case hardening- to increase hardness in surface only leaving the core tough.
• Cyaniding-immersion of steel in molten bath of carburizing salt followed by
quenching. Distortion is less.
Finishing processes
cleaning is done to remove dirt, oil, scale, rust before and after finishing operations
• Metallic coatings- Electroplating, Hot dipping, Galvanizing ( zinc coating), Tin
coating, Phosphating, anodizing ( for aluminum)
• Plastic coating- PVC, Nylon, Polythene etc to prevent rusting for tanks, pipelines etc
• Organic finishes- Paints, varnishes, enamels
• Inorganic finishes- ceramic coatings, porcelain enamels. Highly wear resistant

Process planning
• Process planning deals with methods of converting Input materials into finished
products. A Production process is a series of manufacturing operations performed at work
stations to achieve the design specifications at planned output.
• Types of processes
– Continuous process
– Semi-continuous
– Batch process
– Job shop
– Project

Starting point for process design is the outputs from product design. These may be product
specification, Drawing, Technical specifications , Product standards etc.

Output Quantity requirements greatly influences the process planning and design

Process planning consists of two areas:

• Process design
• Operations design
Process design
covers the overall conversion/ transformation process
1. Input materials required
2. Sequence of operations
3. Existing Infrastructure
1. Machine and equipments
2. Facilities ( handling, storage)
3. Layout of plant
4. Tooling ( devices required to produce a particular product- commercial tools, special
tools)
6. Inspection and testing stages and methods
7. Quantities to be produced

Operation design:
Covers how individual operation are to be.
1. Design of individual operations in a process
2. Man-machine relation ship
3. Economics
4. Work standards

The Basic objective of Process planning and design is to:

• Produce products that consistently meet design specifications
• Produce products at the lowest cost
• Produce products with proven production technology

System approach to process planning and design

Input Process Output

Inputs
• Product information
• Resources ( machines, equipment, facilities)
• Output requirements
• Manpower availability

Process
• Selection of type of processes ( forming, machining etc)
• Make or buy decisions
• Equipment studies
• Production sequence
• Tooling studies
 • Inspection and testing studies

Out puts
•
• Production sequence and equipments
• Raw material specifications
• Layout of machines
• Tooling requirements
• Inspection stages and equipments

Process planning aids:

Assembly charts- gives pictorially step by step assembly sequence and what items to be
assembled till finished product is produced
Process charts:
Operation process chart- gives the sequence of operations, machine to be used, tooling
needed, inspection stages. These are also called “ROUTING SHEETS”
Flow process charts-gives graphically, with symbols, manufacturing operations,
inspection stages, Transport operations, Delays, storage requirements.
Man-machine chart- gives a graphical representation of what worker will be doing and
machine will be doing over time. This is to effectively use workers time when machine is
operating unattended. This is to increase productivity.

Types of process designs

• Product focused production system
o All production processes or organized an a continuous flow. Required
machines are lined up to make the product
• Process focused production system
o Machines/ equipments are grouped according to process ( machining,
forming etc). products flow from one location to another depending on
the process. Travel distances are more. Products are stored without
processing for want of machine.
• Group Technology ( Cellular manufacturing)
o Products are grouped into families based on processing requirements .
o Machines re lined up to process each family . this gives the advantage
of product focused system to batch production.

Economic analysis
• Process which gives lowest cost per unit is the best
• Processes to have the same capability. Otherwise we may have to take cost of rejections
into calculations. Increase production by rejection percentage and add raw material cost
to your calculation
 • Take into consideration the total number of products to be made , if there are any
limitations

• Manufacturing cost per unit may include

• Setup cost
• Tooling cost
• Fixture cost
• Operating cost ( labour, power etc)

Production costs
• Fixed costs (Depreciation, Insurance, administration etc)
• Variable costs ( material, consumables, power , Direct labour costs etc)

Break even analysis is done to determine quantity to be produced to cover the production cost.
Producing less than break even quantity results in loss to the company.

Example
Fixed cost is Rs 50 000 per year, Material cost is Rs. 50/ pc, other variable cost is Rs 30/ pc . the
Process A Process B selling price is
Rs 100 / pc .
Components / setup 4000 3000 What is the
break even
Setup cost Rs 300 Rs 1500 point?
Production rate / hr 10 15 Let X be the
break even
Operating cost /`hr 20 20 Quantity. Then
Operating hrs /setup 4000/10=400 3000/15=200 50, 000 + 50 X
+ 30 X = 100
Operating cost 400 X 20=8000 200 X 20=4000 X
X = 50000 / 20
Total mfg. cost 300+8000=8300 1500+4000=5500 =2500.

Cost/piece 8300/4000=2.057 5500/3000=1.833 Comparing

processes to
determine
which is the best.
Production Technology
Mechanisation- deals with replacement of hard manual muscle power by using devices like
power lifts, conveyors , hydraulic and pneumatic devices etc.

Automation- deals with all activities in production operations and service operations to make
them faster, accurate, with minimum human intervention and cheaper at high production
volumes

Production technology deals with automation all aspects of manufacturing, which includes:
o Production activities
o Planning and procurement activities
o Inspection activities
o Integration of design with production ( CAD/CAM)
o handling, storage , transport

Automation levels/`areas
• Automated machines
– Machines with pallet changers, Tool magazine , Automatic tool changers, strip
feeders, tool wear detection and correction, in- built inspection system
• Machine attachments
– Attachments to make the machine more versatile. Grinding attachments on lathe,
power operated holding devices, Quick change tooling, copying attachments ,
digital readouts, strip feeders
• Numerically controlled machines
– Machine movements controlled by servo motors , stepper motors (closed loop or
open loop), multi-axis controls, eg. Lathes, milling machines
• Robots
– Programmable devices . Can pick and place, weld, paint . Load and unload
components with in its reach. Can work in hazardous areas. Can tend many
machines.
• Automated inspection devices
– Vision systems, on –line inspection devices, Computerized measuring machines
• Automated Identification systems
 – Automatic acquisition of information, eg bar code systems, smart cards, RFID,
biometrics
• Automated process controls
– Continuous checking of performance and automatic correction/ adjustment of
process parameters. Eg. Power stations, oil refineries, chemical plants
• Automated storage and retrieval systems (ASRS)
– Taking orders , collecting materials from locations in ware house and delivery to
dispatch section or to production areas. Eg. Garments, tools, hardware
• Automated lines
– Machines linked together by automatic raw material feeders, transport
equipments. Hard automation. Good for single part produced in very large
quantities
• Flexible manufacturing systems
– CNC Machines linked together by AGVs( automatic guided vehicles). Highly
programmable and hence flexible. Normally used for a family of similar
components. Set up times are less and hence can handle very small batch
quantities economically.

Advantages of automation
1. Enhanced productivity
2. Improved and uniform Quality
3. Reduced total cost per unit
4. Better production control
5. Dangerous and unpleasant tasks can be easily handled
6. Fewer accidents

Disadvantages of automation ( constraints)

1. Heavy capital investment
2. Displacement of Labour
3. Tighter input material specification may be needed.
4. Cost of material shortages/ breakdowns are high
5. Reduced demand is disastrous.
Problem
An automotive component manufacturer wants to improve competitiveness. Cost of 3
manufacturing methods are as below:
1. On the basis of economic analysis , rate the three alternatives.
2. If 1,50,00 units are to be produced in a year, what would be the most desirable and least
desirable alternative?

CM CNC FMS
Annual production( units) 1,00,000 1,00,000 1,00,000
Annual fixed costs Rs 90,000 1, 90.000 3, 20, 000
Variable cost per unit Rs 29.40 Rs 28.50 Rs 27.30