1

Introduction of
Production Design

Outline
Product Life Cycle
2. Product Development
1.

5-2

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

5-3

Regal Marine
Global market
3-dimensional CAD system
Reduced product development time
Reduced problems with tooling

Reduced problems in production

Assembly line production

JIT

5-4
4

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

5-5

Product Decision
The good or service the organization provides

society
Top organizations typically focus on core
products
Customers buy satisfaction, not just a physical
good or particular service
Fundamental to an organization's strategy with
implications throughout the operations function

5-6

Product Strategy Options

Differentiation
Shouldice Hospital

Low cost
Taco Bell

Rapid response
Toyota

57
-7

1. Product Life Cycles

May be any length from a few
hours to decades

The operations function must

be able to introduce new
products successfully

5-8

Sales, cost, and cash flow

Product Life Cycles

Cost of development and production
Sales revenue
Net revenue (profit)

Cash
flow

Negative
cash flow

Introduction

Loss

Growth

Maturity

Decline

5-9

Product Life Cycle

Introductory Phase
Fine tuning may warrant
unusual expenses for
1. Research
2. Product development
3. Process modification and
enhancement
4. Supplier development
10

5 - 10

Product Life Cycle

Growth Phase
Product design begins to
stabilize
Effective forecasting of
capacity becomes necessary

Adding or enhancing capacity

may be necessary
5 11
- 11

Product Life Cycle

Maturity Phase
Competitors now established
High volume, innovative
production may be needed
Improved cost control,
reduction in options, paring
down of product line
5 12
- 12

Product Life Cycle

Decline Phase
Unless product makes a
special contribution to the
organization, must plan to
terminate offering

5 13
- 13

Product Life Cycle Costs

100

Costs committed

Percent of total cost

80

60

Costs incurred

40

20

Ease of change

0
Concept
design

Detailed Manufacturing
design
prototype

Distribution,
service,
and disposal

14

5 - 14

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

15

5 - 15

Product-by-Value Analysis
Sams Furniture Factory
Individual
Contribution ($)

Total Annual
Contribution ($)

Love Seat

$102

$36,720

Arm Chair

$87

$51,765

Foot Stool

$12

$6,240

Recliner

$136

$51,000

16

5 - 16

New Product Opportunities

1. Understanding the
customer
2. Economic change
3. Sociological and
demographic change
4. Technological change
5. Political/legal change
6. Market practice, professional
standards, suppliers, distributors
517
- 17

Importance of New Products

Percentage of Sales from New Products
50%
40%

30%
20%

10%

Industry
leader

Top
third

Middle
third

Bottom
third

Position of Firm in Its Industry

5 -18
18

2.

Product Development
Ideas
Ability
Customer Requirements

Functional Specifications
Scope of
product
development
team

Product Specifications Scope for

design and
Design Review
engineering
teams
Test Market
Introduction
Evaluation
5 19
- 19

Quality Function Deployment

1.
2.
3.
4.

5.
6.
7.

Identify customer wants

Identify how the good/service will satisfy customer
wants
Relate customer wants to product hows
Identify relationships between the firms hows
Develop importance ratings
Evaluate competing products
Compare performance to desirable technical
attributes
20

5 - 20

QFD House of Quality

What the
customer
wants

Target values

Interrelationships
How to satisfy
customer wants

Relationship
matrix

Competitive
assessment

Customer
importance
ratings

Weighted
rating

Technical
evaluation
21

House of Quality (HOQ) Example

Your team has been charged with
designing a new camera for Great
Cameras, Inc.
The first action is
to construct a
House of Quality

5 - 22

Interrelationships

HOQ
What the
Customer
Wants

Technical
Attributes and
Evaluation

What the
customer
wants

Lightweight
Easy to use
Reliable
Easy to hold steady
Color correction

Relationship
Matrix

Analysis of
Competitors

How to Satisfy
Customer Wants

Customer
importance
rating
(5 = highest)

3
4
5
2
1
5 - 23

Interrelationships

HOQ

Relationship
Matrix

Ergonomic design

Paint pallet

Auto exposure

Auto focus

Technical
Attributes and
Evaluation

Aluminum components

Low electricity requirements

What the
Customer
Wants

Analysis of
Competitors

How to Satisfy
Customer Wants

How to Satisfy
Customer Wants

5 - 24

Interrelationships

HOQ
What the
Customer
Wants

5 = High relationship
3 = Medium relationship
1 = Low relationship

Lightweight
Easy to use
Reliable
Easy to hold steady
Color corrections

Relationship
Matrix

Analysis of
Competitors

How to Satisfy
Customer Wants

Technical
Attributes and
Evaluation

3
4
5
2
1

Relationship matrix
5 - 25

Interrelationships

HOQ
What the
Customer
Wants

Relationship
Matrix

Analysis of
Competitors

How to Satisfy
Customer Wants

Ergonomic design

Paint pallet

Auto exposure

Auto focus

Aluminum components

Relationships
between the
things we can do

Low electricity requirements

Technical
Attributes and
Evaluation

5 - 26

Interrelationships

HOQ
What the
Customer
Wants

Relationship
Matrix

Analysis of
Competitors

How to Satisfy
Customer Wants

Technical
Attributes and
Evaluation

Lightweight
Easy to use
Reliable
Easy to hold steady
Color corrections

Our importance ratings

3
4
5
2
1

22

27 27

32

25

Weighted
rating
5 - 27

Interrelationships

Technical
Attributes and
Evaluation

How well do
competing products
meet customer wants
Lightweight
Easy to use
Reliable
Easy to hold steady
Color corrections
Our importance ratings

3
4
5
2
1
22

Company B

Relationship
Matrix

Company A

What the
Customer
Wants

Analysis of
Competitors

HOQ

How to Satisfy
Customer Wants

G
G
F
G
P

P
P
G
P
P

5
5 - 28

Interrelationships

2 circuits

2 to

75%

Target
values
(Technical
attributes)

0.5 A

Technical
Attributes and
Evaluation

Panel ranking

Relationship
Matrix

Failure 1 per 10,000

What the
Customer
Wants

Analysis of
Competitors

HOQ

How to Satisfy
Customer Wants

Company A 0.7 60% yes 1

ok G

Technical
evaluation Company B 0.6 50% yes 2
Us
0.5 75% yes 2

ok F
ok G
5 - 29

Company B

Company A

Ergonomic design

Paint pallet

Auto exposure

Auto focus

Aluminum components

Lightweight

G P

Easy to use

G P

Reliable

F G

Easy to hold steady 2

G P

Color correction

Panel ranking

Failure 1 per 10,000

2 to

75%

Target values
(Technical
attributes)

2 circuits

Our importance ratings 22 9 27 27 32 25

0.5 A

Completed
House of
Quality

Low electricity requirements

HOQ

Company A

0.7 60% yes

ok

Technical
Company B
evaluation

0.6 50% yes

ok

0.5 75% yes

ok

Us

5 - 30

HOQ
Deploying resources through the
organization in response to
customer requirements
Quality
plan

Customer
requirements

House
1

House
2

House
3

Production
process

Design
characteristics

Design
characteristics

Specific
components

Specific
components

Production
process

House
4

31

5 - 31

Organizing Product Development

Historically distinct departments
Duties and responsibilities are defined
Difficult to foster forward thinking

A Champion
Product manager drives the product through

the product development system and related

organizations

32

5 - 32

Organizing Product Development

Team approach
Cross functional representatives from all

disciplines or functions
Product development teams, design for
manufacturability teams, value engineering
teams
Japanese whole organization approach
No organizational divisions

33

5 - 33

Manufacturability and
Value 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

34

5 - 34

Cost Reduction of a Bracket via

Value Engineering

5 35
- 35

Issues for Product Development

Robust design

Modular design
Computer-aided design (CAD)
Computer-aided manufacturing (CAM)
Virtual reality technology
Value analysis
Environmentally friendly design

36

5 - 36

Robust Design
Product is designed so that small
variations in production or
assembly do not adversely affect
the product
Typically results in lower cost and
higher quality

37

5 - 37

Modular Design
Products designed in easily segmented

components
Adds flexibility to both production and marketing
Improved ability to satisfy customer
requirements

38

5 - 38

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
worldwide
39

5 - 39

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
40

5 - 40

Computer-Aided Manufacturing
(CAM)
Utilizing specialized computers
and program to control
manufacturing equipment
Often driven by the CAD system
(CAD/CAM)

5 41
- 41

Benefits of CAD/CAM
1.
2.
3.
4.
5.

Product quality
Shorter design time
Production cost reductions
Database availability
New range of capabilities

5 42
- 42

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 before
a physical model is built
Very effective in large-scale designs such as
plant layout

543
- 43

Value Analysis
Focuses on design improvement during

production
Seeks improvements leading either to a better
product or a product which can be produced
more economically with less environmental
impact

44

5 - 44

Ethics, Environmentally Friendly

Designs, and Sustainability

45

5 - 45

The Ethical Approach

View product design from a
systems perspective
Inputs, processes, outputs
Costs to the firm/costs to society

Consider the entire life cycle of

the product

546
- 46

The Ethical Approach

Goals

1. Developing safe end environmentally

sound practices
2. Minimizing waste of resources
3. Reducing environmental liabilities
4. Increasing cost-effectiveness of
complying with environmental
regulations
5. Begin recognized as a good
corporate citizen
47

5 - 47

Guidelines for Environmentally

Friendly Designs
1.
2.

3.
4.
5.

6.

Make products recyclable

Use recycled materials
Use less harmful ingredients
Use lighter components
Use less energy
Use less material

48

5 - 48

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

49

5 - 49

Engineering Drawings

50

5 - 50

Bills of Material
BOM for Panel Weldment
NUMBER

DESCRIPTION

QTY

A 60-71

PANEL WELDMT

A 60-7
R 60-17
R 60-428
P 60-2

LOWER ROLLER ASSM.

ROLLER
PIN
LOCKNUT

1
1
1
1

A 60-72
R 60-57-1
A 60-4
02-50-1150

GUIDE ASSM. REAR

SUPPORT ANGLE
ROLLER ASSM.
BOLT

1
1
1
1

A 60-73
A 60-74
R 60-99
02-50-1150

GUIDE ASSM. FRONT

SUPPORT WELDMT
WEAR PLATE
BOLT

1
1
1
1
551
- 51

Bills of Material
Hard Rock
Cafes Hickory
BBQ Bacon
Cheeseburger

DESCRIPTION

QTY

Bun
Hamburger patty
Cheddar cheese
Bacon
BBQ onions
Hickory BBQ sauce
Burger set
Lettuce
Tomato
Red onion
Pickle
French fries
Seasoned salt
11-inch plate
HRC flag

1
8 oz.
2 slices
2 strips
1/2 cup
1 oz.
1 leaf
1 slice
4 rings
1 slice
5 oz.
1 tsp.
1
1
552
- 52

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

53

5 - 53

Group Technology Scheme

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

Slotted

Threaded

Drilled

Machined

54

5 - 54

Group Technology Benefits

1.
2.
3.
4.
5.

Improved design
Reduced raw material and purchases
Simplified production planning and control
Improved layout, routing, and machine loading
Reduced tooling setup time, work-in-process, and
production time

55

5 - 55

Documents for Production

Assembly drawing
Assembly chart

Route sheet
Work order
Engineering change notices (ECNs)

56

5 - 56

Assembly Drawing
Shows exploded
view of product
Details relative
locations to
show how to
assemble the
product

57

5 - 57

Assembly Chart
1
2
3
4
5
6
7
8
9

R 209 Angle
R 207 Angle
Bolts w/nuts (2)

Left
SA bracket A1
1 assembly

R 209 Angle
R 207 Angle
Bolts w/nuts (2)

Right
bracket
SA
A2
2 assembly

Identifies the point of

production where
components flow into
subassemblies and
ultimately into the
final product

Bolt w/nut
R 404 Roller

A3

Lock washer
Part number tag

10

Poka-yoke
inspection
A4

Box w/packing material

11

A5
5 58
- 58

Route Sheet
Lists the operations and times required
to produce a component
Process

Machine

Operations

Auto Insert 2

Manual
Insert 1
Wave Solder

Test 4

Insert Component
Set 56
Insert Component
Set 12C
Solder all
components
to board
Circuit integrity
test 4GY

Setup
Time

Operation
Time/Unit

1.5

.4

.5

2.3

1.5

4.1

.25

.5

5 59
- 59

Work Order
Instructions to produce a given quantity
of a particular item, usually to a schedule
Work Order
Item

Quantity

Start Date

Due Date

157C

125

5/2/08

5/4/08

Production
Dept

Delivery
Location

F32

Dept K11
5 60
- 60

Engineering Change Notice

(ECN)
A correction or modification to a
products definition or
documentation
Engineering drawings
Bill of material
Quite common with long product life
cycles, long manufacturing lead times, or
rapidly changing technologies
561
- 61

Product Life-Cycle Management

(PLM)
Integrated software that brings
together most, if not all, elements of
product design and manufacture
Product design
CAD/CAM, DFMA
Product routing
Materials
Assembly
Environmental
62
5 - 62

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

63
5 - 63

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 managing

transition
Project managers
Product development teams
Integrate product development and

manufacturing organizations

64
5 - 64

End of Chap. 1

65
5 - 65