1

Introduction of
Production Design

Outline
1. Product Life Cycle
2. Product Development

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 in Canada
specializing in hernia operation

Low cost
Taco Bell, Walmart

Rapid response
Toyota (product development under
2 years. Industry standard is over 2
years)

57
-7

1. Product Life Cycles

May be any length from a few hours (a
newspaper), months (cell phones), years
(furnitures), to decades (Wolgswagen
Beetle)
A products life is divided into four
phases:1. Introduction, 2. Growth, 3.
Maturity, 4. Decline
The following figure shows how these four
stages are linked to product sales, cash
flow and cost.
The operations function must be able to
introduce new products successfully
8

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 is
required, reduction in
options.
512
- 12

Product Life Cycle

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

513
- 13

Product Life Cycle Costs

100

Costs committed

Percent of total cost

80
60

Costs incurred
40
20
0

Concept
design

Ease of change

Detailed Manufacturing
design
prototype

Distribution,
service,
and disposal

14

5 - 14

Product-by-Value Analysis

Lists products in descending order

(from largest to smallest) of their
individual dollar contribution to the firm

Lists the total annual dollar

contribution of the product

Helps management to evaluate

alternative strategies so that limited
existing resourses are to be invested in
few critical and not in many trivial.

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

g
n
i
m
r
o
t
s
n
i
l
o
Bra
o
t
l
fu
e
s
u
is a

6. Market practice, professional

standards, suppliers, distributors
517
- 17

2.

Product Development
Ideas
Ability
Customer Requirements
Functional Specifications
Product Specifications Scope for
design and
Design Review
engineering
teams
Test Market
Introduction
Evaluation
5 18
- 18

Quality Function
Deployment
1. Identify customer wants
2. Identify how the good/service will satisfy
3.
4.
5.
6.
7.

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
19

5 - 19

QFD House of Quality

What the
customer
wants

Target values

How to satisfy
customer wants

Relationship
matrix

Competitive
assessment

Customer
importance
ratings

Interrelationships

Weighted
rating

Technical
evaluation
20

QFD House of Quality

A part of the QFD process that
utilizes a planning matrix to relate
customer wants to how the
company is going to meet those
wants.

21

5 - 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
3
Easy to use
4
Reliable
5
Easy to hold steady
2
Color corrections
1
Our importance ratings

22

27 27

32

25

Weighted
rating
5 - 27

Interrelationships

Relationship
Matrix

Company A

Technical
Attributes and
Evaluation

How well do
competing products
meet customer wants
Lightweight
3
Easy to use
4
Reliable
5
Easy to hold steady
2
Color corrections
1
Our importance ratings

Company B

What the
Customer
Wants

Analysis of
Competitors

HOQ

How to Satisfy
Customer Wants

G
G
F
G
P
22

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 Company B 0.6 50% yes 2

evaluation
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 Us

0.6 50% yes

ok

0.5 75% yes

ok

5 - 30

HOQ
Deploying resources through the
organization in response to
customer requirements

Customer
requirements

Design
characteristics

House
1

Design
characteristics

Specific
components

House
2

Specific
components

Production
process

House
3

Production
process

Quality
plan

House
4

31

5 - 31

Four Approaches to Organizing for Product

Development
1. Historically distinct departments

R&D Dept, Eng. Dept, Mnfg. Eng. Dept, Prod. Dept.

Duties and responsibilities are well defined

(Advantage)
Difficult to foster forward thinking (Disadvantage)
2

A Champion

To assign a product manager to champion the product

through the product development system and related
organizations

3 Team approach
Cross functional representatives from

all disciplines or functions

Product development teams, design for
manufacturability teams, value
engineering teams

4 Japanese whole organization

32

5 - 32

Design for 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
33

5 - 33

Cost Reduction of a Bracket

via Value Engineering

5 34
- 34

Issues for Product

Development
Robust design
Modular design
Computer-aided design (CAD)
Computer-aided manufacturing

(CAM)
Virtual reality technology
Value analysis
Environmentally friendly design
35

5 - 35

1. 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

36

5 - 36

2. Modular Design
Products designed in easily

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

37

5 - 37

3. 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
Design for Manufacturing and
Assembly (DFMA)
Solve manufacturing problems

during the design stage

38

5 - 38

Extensions of CAD
3-D Object Modeling
Small prototype
development
CAD through the

internet
International data
exchange through STEP

39

5 - 39

4. Computer-Aided
Manufacturing (CAM)
Utilizing specialized computers
and program to control
manufacturing equipment
Often driven by the CAD system
(CAD/CAM)
CNC Machines
540
- 40

Benefits of CAD/CAM
1. Better Product quality
2. Shorter design time
3. Production cost

reductions
4. Database availability

541
- 41

5. 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
542
- 42

6. Value Analysis
While Value Engineering focuses on

preproduction design improvement,

Value Analysis takes place during
the production process.
Seeks improvements leading either

to a better product or a product

which can be produced more
economically with less
environmental impact
43

5 - 43

7. Ethics, Environmentally
Friendly Designs, and
Sustainability

44

5 - 44

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

545
- 45

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
46

5 - 46

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

47

5 - 47

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

48

5 - 48

Engineering Drawings

49

5 - 49

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
550
- 50

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
551
- 51

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

52

5 - 52

Group Technology Scheme

(a) Ungrouped Parts

(b) Grouped Cylindrical Parts (families of parts)

Grooved

Slotted

Threaded

Drilled

Machined

53

5 - 53

Group Technology Benefits

1. Improved design
2. Reduced raw material and purchases
3. Simplified production planning and control
4. Improved layout, routing, and machine

loading
5. Reduced tooling setup time, work-inprocess, and production time

54

5 - 54

Documents for Production

Assembly drawing
Assembly chart
Route sheet
Work order
Engineering change notices (ECNs)

55

5 - 55

Assembly Drawing
Shows
exploded view
of product
Details relative
locations to
show how to
assemble the
product
556
- 56

Assembly Chart
1
2
3
4
5
6
7
8
9
10

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

Left
bracket
SA
A1
1 assembly

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

Right
SA bracket 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

Poka-yoke
inspection
A4

Box w/packing material

11

A5
5 57
- 57

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

Machine

Operations

Auto Insert 2

2
3

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

558
- 58

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
559
- 59

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
560
- 60

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
61

5 - 61

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

62

5 - 62

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

63

5 - 63

End of Chap. 1

64

5 - 64