Transcript Document
Product Development
Chapter 6
Introduction
Product Development
is a process which generates concepts, designs, and plans to create services and goods to meet customer needs.
1. Analyze market to assess need 2. Design product 3. Design process for making product 4. Develop plan to market product 5. Develop plan for full-scale production 6. Analyze financial feasibility
Increasing Importance of Product Development
1. Customers demand greater product variety .
2. Customers are causing shorter product life cycles .
3. Improving technology is causing new products to be introduced 4. The impact of increasing product variety and shortening product life cycles is having a multiplicative effect on the need for product development.
5. Today, in order to be competitive, the firm may have to produce many different products with a life cycle of only five years or less . End of Life issues
Product Design
Specifies materials
Determines dimensions & tolerances
Defines appearance
Sets performance standards
Service Design
Specifies what the customer is to experience
Physical items
Sensual benefits
Psychological benefits
An Effective Design Process
Matches product/service characteristics with customer needs
Meets customer requirements in simplest, most cost-effective manner
Reduces time to market - haste vs. speed to market
Minimizes revisions - quality designed into the product
Stages in the Design Process
Idea Generation — Product Concept - can you create your own market? What role does the voice of the customer play in idea generation?
Feasibility Study — Performance Specifications
Preliminary Design — Prototype - testing and redesign
Final Design — Final Design Specifications
Process Planning — Manufacturing Specifications - make to order/stock – assembly line?
Idea Generation
Suppliers, distributors, salespersons Trade journals and other published material Warranty claims, customer complaints, failures Customer surveys, focus groups, interviews Field testing, trial users Research and development
More Idea Generators
Perceptual Maps
Visual comparison of customer perceptions Benchmarking
Comparing product/service against best-in-class Reverse engineering
Dismantling competitor’s product to improve your own product
Perceptual Map of Breakfast Cereals
GOOD TASTE LOW NUTRITION HIGH NUTRITION BAD TASTE
Perceptual Map of Breakfast Cereals
LOW NUTRITION GOOD TASTE Cocoa Puffs HIGH NUTRITION Rice Krispies Wheaties Cheerios Shredded Wheat BAD TASTE
© Russell and Taylor, Prentice Hall, 2004
Perceptual Map of Breakfast Cereals
LOW NUTRITION GOOD TASTE How do I get here?
Cocoa Puffs HIGH NUTRITION Rice Krispies Wheaties Cheerios Shredded Wheat BAD TASTE
© Russell and Taylor, Prentice Hall, 2004
Feasibility Study
Market Analysis Market Segmentation
Economic Analysis Technical / Strategic Analysis Performance Specifications Risk Analysis
Economic Analysis
• • •
Can we produce it at a volume to make a profit?
If not, why produce?
How many do we have to make to break even?
Break Even Analysis
Total Costs = Total Revenues (Volume x Price) = (Fixed Costs + Variable Costs) Profit = (Total Revenue – Total Costs)
B/E Point = Fixed Costs Sales Price – Variable Costs
Example
Fixed Costs = $2000 Variable Costs = $5/item Sales Price = $10/item B/E PT = Fixed Costs ($2000) Sales Price ($10) – Variable Costs ($5) B/E point = ($2000/$5) 400 items
Risk Analysis
1. Identify the Hazards 2.Assess hazards to determine risks.
3.Develop controls and make risk decisions.
4.Implement controls.
5.Supervise and evaluate.
Preliminary Design
How will it look?
Create form & functional design
Build prototype
Test prototype
Revise prototype
Retest
Functional Design (How the Product Performs)
Reliability
Probability product performs intended function for specified length of time
Maintainability
Ease and/or cost or maintaining/repairing product
System Availability
System Availability, SA = PROVIDER MTBF (HR) MTBF MTBF + MTTR MTTR (HR) A B C 60 36 24 4.0
2.0
1.0
System Availability
PROVIDER MTBF (HR) A B C 60 36 24 MTTR (HR) 4.0
2.0
1.0
SA A = 60 / (60 + 4) = .9375 or 93.75% SA B = 36 / (36 + 2) = .9473 or 94.73% SA C = 24 / (24 + 1) = .96 or 96%
Production Design
Part of the preliminary design phase
Simplification
Standardization
Modularity
Final Design & Process Plans
Produce detailed drawings & specifications
Create workable instructions for manufacture
Select tooling & equipment
Prepare job descriptions
Determine operation & assembly order
Program automated machines
Improving the Design Process
Design teams Concurrent design Design for manufacture & assembly Design to prevent failures and ensure value Design for environment Measure design quality Utilize quality function deployment Design for robustness Engage in collaborative design
Design Teams
Preferred solution = cross functional teams
Marketing, manufacturing, engineering
Suppliers, dealers, customers
Lawyers, accountants, insurance companies
Concurrent Design
Improves quality of early design decisions Decentralized - suppliers complete detailed design
Incorporates production process Scheduling and management can be complex as tasks are done in parallel
include the customer in the process!!
Design for Manufacture and Assembly
Design a product for easy & economical production
Incorporate production design early in the design phase
Improves quality and reduces costs
Shortens time to design and manufacture
also known as Design for Six Sigma
• • • • •
Design for Six Sigma
Define – the goals of the design activity Measure – customer input to determine what is critical to quality from the customers’ perspective – what are customer delighters? What aspects are critical to quality?
Analyze – innovative concepts for products and services to create value for the customer Design – new processes, products, and services to deliver customer value Verify – new systems perform as expected
DFM Guidelines
1. Minimize the number of parts, tools, fasteners, and assemblies 2. Use standard parts and repeatable processes 3. Modular design 4. Design for ease of assembly, minimal handling 5. Allow for efficient testing and parts replacement
Design for Assembly (DFA)
Procedure for reducing number of parts
Evaluate methods for assembly
Determine assembly sequence
Design Review
Failure Mode and Effects Analysis (FMEA)
A systematic approach for analyzing causes & effects of failures
Prioritizes failures
Attempts to eliminate causes
Value Analysis (Value Engineering) Is there value added?
Ratio of value / cost Assessment of value : 1. Can we do without it?
2. Does it do more than is required?
3. Does it cost more than it is worth?
4. Can something else do a better job 5. Can it be made by less costly method, tools, material?
6. Can it be made cheaper, better or faster by someone else?
Should we contract it out?
Design for Environment
Design from recycled material Use materials which can be recycled Design for ease of repair Minimize packaging Minimize material & energy used during manufacture, consumption & disposal
green laws in Europe -
Design for Robustness
Product can fail due to poor design quality
Products subjected to many conditions
Robust design studies
Controllable factors - under designer’s control
Uncontrollable factors - from user or environment
Designs products for consistent performance
A Well-Designed Service System is
Consistent with firm’s strategic focus
Customer friendly
Easy to sustain
Effectively linked between front & back office
Cost effective
Visible to customer
CHAPTER 8 Process Selection affects the outcome – in production or sports:
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What is Process Selection?
• • • • Series of decisions that includes technical/engineering issues and volume/scale issues Technical/engineering: basic methods that produce a good or service Scale: how many or how much to produce; how many to serve at a time Trade off analysis between capacity and costs 39
Why process selection is critical
• • • • Dell – from make/assemble to order in Texas to make/assemble to stock off shore Does this work?
Break even analysis may depend on process costs Which process gives the lowest costs – assumption?
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The Point of Indifference Comparing Two Processes
• • • What is it? Who cares? How do you calculate it?
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Comparing Two Processes
• • • Process A Fixed = $2000 Variable = $5/item • • • Process B Fixed = $11000 Variable = $2/item
Comparing the Processes
Fixed A + (Var A )x = Fixed B + (Var B )x 2000 + 5x = 11,000 + 2x 3x = 9000 X = 3000 So what?
Trade off analysis
• • Customer demanded quantity drives the trade off analysis and decision process Example: → retail stocks at Christmas 2008 and 2009 season - goal save money by stocking less → At what point do you lose sales due to lower stockage levels?
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Process Design/Selection/Capacity
• Have to be simultaneous operations – some texts suggest sequential steps • Decision process has to be customer based → what should it be? → how many should be produced/how many are we capable of producing?
→ how should it be produced?
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Process Strategy - Defines
• • • • Capital intensity Process flexibility Vertical integration Customer involvement 46
Goal of Process Design
• • • Reduce lead time for product to the customer Is it best to be the first to market and establish the market?
Or, be the follower and let someone else do the R&D/design/risk?
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• • • Problems with Managing Large, Unfocused Operations Growing facilities add more levels of management and make coordination and control difficult.
New products are added to the facility as customers demand greater product variety.
Hidden overhead costs increase as managers add staff to deal with increased complexity.
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Process Planning
Make-or-buy decisions
Process selection
Specific equipment selection
Process plans
Process analysis
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Make-or-Buy Decisions
1. Cost 2. Capacity 3. Quality 4. Speed 5. Reliability 6. Expertise What about Proprietary Information?
Barrier to Make-or-Buy?
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Rationale for Off Shore to Low Country Source
100.00% 94.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 37.00% 10.00% 0.00% $ Savings procured goods Penet rat ion t o new market 27.00% 23.00% invent ory redux inc customer service 22.00% access new t echnology 21.00% 20.00% reduced cycle t ime log cost reductions
Source: Aberdeen Research, “Low-Cost Country Sourcing Success Strategies: Maximizing and Sustaining the Next Big Supply Savings Opportunity,” Jun 2005
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Process Plans
Blueprints Bill of material Flat or multiple layers part or assembly Assembly chart / product structure diagram Operations process chart - list of operations involved in assembly Routing sheet - sequence of events
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Process Analysis
The systematic examination of all aspects of a process to improve its operation
Faster
More efficient Less costly More responsive Basic tools
Process flowchart
Process diagrams Process maps
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Operations Process Chart
Part name Part No.
Crevice Tool 52074 Usage Hand-Vac Assembly No. 520
Oper. No.
10 20 30 40 50 60
Description
Pour in plastic bits Insert mold Check settings & start machine Collect parts & lay flat Remove & clean mold Break off rough edges
Dept.
041 041 041 051 042 051
Machine/Tools
Injection molding #076 113, 67, 650 Plastics finishing Parts washer Plastics finishing
Time
2 min 2 min 20 min 10 min 15 min 10 min
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Process Analysis – What processes feed other processes?
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Process Flowchart
Date: 9-30-02 Analyst: TLR Location: Graves Mountain Process: Apple Sauce Description of process 9 10 11 1 2 6 7 8 3 4 5 Page 1 0f 3 Unload apples from truck Move to inspection station Weigh, inspect, sort Move to storage Wait until needed Move to peeler Apples peeled and cored Soak in water until needed Place in conveyor Move to mixing area Weigh, inspect, sort Total 20 30 360 15 20 5 30 480 100 ft 50 20 20 ft ft ft 190 ft
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Principles for Redesigning Processes • • • • •
Walk the Process!
Remove waste, simplify, consolidate Link processes to create value Let the swiftest and most capable execute Capture information digitally, data mine, and use information to improve operations
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Principles for Redesigning Processes
• • • • •
Provide visibility through information about process status Fit the process with sensors and feedback loops Add analytic capabilities Connect, collect and create knowledge around the process Personalize the process
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Techniques for Generating Innovative Ideas
Vary entry point to a problem Draw analogies Change your perspective Use attribute brainstorming
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RFID
• • • • • • Active Tags Always on Battery powered Can be read from up to 300 ft US Army Savi Tags • • • • • • • Passive Tags Small Must be activated May be turned off England California Rolex 60
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Robotics
Programmable manipulators Follow specified path Better than humans with respect to
Hostile environments
Long hours
Consistency
Adoption has been slowed by ineffective integration and adaptation of systems
Welding at Harley Davidson Plant Questions?
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Facilities
Objectives of Facility Layout
Eliminate waste or redundant movement Facilitate the entry, exit, and placement of material, products, or people
Incorporate safety and security measures Promote product and service quality Encourage proper maintenance activities Provide a visual control of operations or activities
Provide flexibility to adapt to changing conditions
Increase capacity
Objectives of Facility Layout
Minimize material handling costs Utilize space efficiently Utilize labor efficiently Eliminate bottlenecks Facilitate communication and interaction between workers, between workers and their supervisors, or between workers and customers
Reduce manufacturing cycle time or customer service time
Basic Types of Layouts
Process Layout
Machines grouped by process they perform
Product Layout
Linear arrangement of workstations to produce a specific product
Fixed Position Layout
Used in projects where the product cannot be moved
Manufacturing Process Layout
Lathe Department L L Milling Department M M D Drilling Department D D D M M D D D D L L G G G P L L L L G G Grinding Department G P Painting Department L L Receiving and Shipping A A Assembly A
In
A Product Layout
Out
Fixed-Position Layouts
Typical of projects
Equipment, workers, materials, other resources brought to the site
Highly skilled labor
Often low fixed
Typically high variable costs
Designing Process Layouts
Minimize material handling costs
Block Diagramming
Minimize nonadjacent loads
Use when quantitative data is available
Relationship Diagramming
Based on location preference between areas
Use when quantitative data is not available
Block Diagramming
Create load summary chart
Calculate composite (two way) movements
Develop trial layouts minimizing number of nonadjacent loads
(a) Initial block diagram
Block Diagrams
1 2 3 4 5
(a) Initial block diagram
Block Diagrams
(b) Final block diagram 1 2 3 4 5 1 3 2 4 5
Relationship Diagramming (Murther’s Grid)
Used when quantitative data is not available
Muther’s grid displays preferences
Denote location preferences with weighted lines
Relationship Diagramming Example
Production Offices Stockroom Shipping and receiving Locker room Toolroom
Relationship Diagramming Example
Production Offices O U A I A E I O U X Absolutely necessary Especially important Important Okay Unimportant Undesirable Stockroom A O X E A Shipping and receiving U U O U Locker room O O Toolroom
Relationship Diagramming Example
Production Offices O U A I A E I O U X Absolutely necessary Especially important Important Okay Unimportant Undesirable Stockroom A O X E A Shipping and receiving U U O U Locker room O O Toolroom
Relationship Diagramming Example
Production Offices 4 5 1 3 1 2 3 4 5 6 Absolutely necessary Especially important Important Okay Unimportant Undesirable Stockroom 1 4 6 2 1 Shipping and receiving 5 5 4 5 Locker room 6 4 Toolroom
Service Layouts
Usually process layouts due to customers needs
Minimize flow of customers or paperwork
Retailing tries to maximize customer exposure to products
Computer programs consider shelf space, demand, profitability
Layouts must be aesthetically pleasing
Designing Product Layouts
Product layouts or assembly lines
Develop precedence diagram of tasks
Jobs divided into work elements
Assign work elements to workstations
Try to balance the amount work of each workstation
Line Balancing
Precedence diagram
Network showing order of tasks and restrictions (constraints) on their performance
Cycle time
Maximum time product spends at any one workstation
Hybrid Layouts
Cellular layouts
Group machines into machining cells
Flexible manufacturing systems
Automated machining & material handling systems
Mixed-model assembly lines
Produce variety of models on one line
Cellular Layouts
1. Identify families of parts with similar flow paths 2. Group machines into cells based on part families 3. Arrange cells so material movement is minimized 4. Locate large shared machines at point of use
Advantages Of Cellular Layouts
Reduced material handling and transit time
Reduced setup time
Reduced work-in-process inventory
Better use of human resources
Easier to control - visibility
Easier to automate
Disadvantages Of Cellular Layouts
Inadequate part families
Poorly balanced cells
Expanded training and scheduling of workers
Increased capital investment
Manufacturing Cell
HM VM Worker 3 VM L Paths of three workers moving within cell Material movement Key: S = Saw L = Lathe HM = Horizontal milling machine VM = Vertical milling machine G = Grinder L S In Worker 2 Worker 1 G Final inspection Finished part Out
Mixed Model Assembly Lines
Produce multiple models in any order on one assembly line
Harley, Opel
Issues in mixed model lines
Line balancing
U-shaped line
Flexible workforce
Model sequencing
Facility Location Models
Types Of Facilities
Heavy manufacturing
Auto plants, steel mills, chemical plants Light industry
Small components mfg, assembly Warehouse & distribution centers Retail & service
Factors in Heavy Manufacturing Location
Construction costs Land costs Raw material and finished goods shipment modes Proximity to raw materials Utilities Labor availability
Factors in Light Industry Location
Construction costs Land costs Easily accessible geographic region Education & training capabilities
Factors in Warehouse Location
Transportation costs Proximity to markets (Customers)
Warehouse Size Considerations
• • • • • • • • •
Customer service level layout # of products (Stock Keeping Units - SKUs) customer base size of products racks/shelving demand variability MHE requirements/aisle size regulations - CAL OSHA - earthquake; safety; fire
Factors in Retail Location
Proximity to customers Ease of customer entry and exit Location is everything
Global Location Factors
Government stability Government regulations Political and economic systems Economic stability and growth Exchange rates Culture Climate Export import regulations, duties and tariffs
Raw material availability Number and proximity of suppliers Transportation and distribution system Labor cost and education Available technology Commercial travel Technical expertise Cross-border trade regulations Group trade agreements
Regional Location Factors
Labor (availability, education, cost and unions) Proximity of customers Number of customers Construction/leasing costs
Land costs Modes and quality of transportation
Transportation costs
Incentive packages Governmental regulations Environmental regulations Raw material availability Commercial travel Climate Infrastructure Quality of life
Regional Location Factors
Community government Local business regulations
Government services Business climate
Community services
Taxes
Availability of sites Financial Services Community inducements Proximity of suppliers Education system
Site Location Factors
Customer base
Construction/ leasing cost
Land cost
Site size
Transportation
Utilities
Zoning restrictions
Traffic
Safety/security
Competition
Area business climate
Income level
Location Incentives
Tax credits Wal-Mart in Wyandotte Relaxed government regulation Job training Infrastructure improvement Money
Center-of-Gravity Technique
Locate facility at center of geographic area
Based on weight and distance traveled
Establish grid-map of area
Identify coordinates and weights shipped for each location