symbiosis om mba ee module 2 nov 9

8/10/2019 Symbiosis OM MBA EE Module 2 Nov 9

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CHAPTER

0

Introduction toOperation Management

Prof.G.Purandaran

M.Tech (I.I.T-Madras)

PGDM (I.I.M-Bangalore)


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What is Operations Management?

The business functionresponsible for

Planning,

Coordinating, andControlling

the resources needed

to produce a companys

products and services


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Operations Management Definition

Operations management is defined as:

the design,

operat ion, and improvementof the systems

that create and deliver

the firms primaryproductsandservices.


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Why Study Operations Management?

OperationsManagement

Business Education/

Career Opportunities

Systematic Approachto Org. Processes

Increase Competitive

Advantage/Survival

Cross-FunctionalApplications


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Operations Decision Making

People Plants Parts Processes

Planning and Control

Materials &

Customers

Products &

Services

Input Output

Operations Management

Marketing StrategyFinance Strategy

Marketplace

Corporate Strategy

Operations Strategy

The Transformation Process (value adding)


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Quality

Management

Statistical

Process Control

Just in Time

Materials Requirement Planning

Inventory Control

Aggregate

Planning

Operations Management - Overview

Project

Management

Supply Chain

Management

Process Analysis

and Design

Process Control

and Improvement

Waiting Line Analysis and

Simulation

Services

Manufacturing

Operations

Strategy

Facility Layout

Consulting and

Reengineering

Process Analysis

Job Design

Capacity Management

Planning for Production

Supply Chain

Strategy


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Operations Strategy

Customer Needs

Corporate Strategy

Operations Strategy

Decisions on Processes

and Infrastructure

ExampleStrategy Process

More Product

Increase Org. Size

Increase Production Capacity

Build New Factory


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Competitive Dimensions

Cost

Quality and Reliability

Delivery Flexibility Speed Reliability

Coping with Changes in Demand New Product Introduction

Speed Flexibility


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CHAPTER

1

Product Life Cycle

Prof.G.Purandaran




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Product Life Cycles

May be any length from a few hours

to decades The operations function must be

able to introduce new productssuccessfully


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Product Life Cycles

Negativecash flow

Introduction Growth Maturity Decline

Sales,

cost,andcashflow

Cost of development and production

Cashflow

Net revenue (profit)

Sales revenue

Loss

Figure 5.1


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PLC


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Product Life Cycle

Introductory Phase

Fine tuning may warrant unusualexpenses for

1. Research

2. Product development

3. Process modification andenhancement

4. Supplier development


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.


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Product Life Cycle

Growth Phase

Product design begins to stabilize

Effective forecasting of capacitybecomes necessary

Adding or enhancing capacity maybe necessary


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.


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Product Life Cycle

Maturity Phase

Competitors now established

High volume, innovativeproduction may be needed

Improved cost control, reduction

in options, paring down ofproduct line


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PLC-Maturity/Decline

.


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Product Life Cycle

Decline Phase

Unless product makes a specialcontribution to the organization,must plan to terminate offering


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PLC


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Product Life Cycle Costs

Costs incurred

Costs committed

Ease of change

Concept Detailed Manufacturing Distribution,

design design service,

prototype and disposal

Percentoftotalcost

100

80

60

40

20

0


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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 evaluatealternative strategies


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Product-by-Value Analysis

Individual

Contribution ($)

Total Annual

Contribution ($)Love Seat $102 $36,720

Arm Chair $87 $51,765

Foot Stool $12 $6,240Recliner $136 $51,000

Sams Furniture Factory


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CHAPTER

2

Product & Service Design

Prof.G.Purandaran




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Product & Service Design

The process of deciding on the unique

characteristics of a companys product &

service offerings

Serves to define a companys customer base,

image, competition and future growth


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Products versus Services

Products:

Tangible offerings

Dimensions, materials, tolerances & performance

standards

Services:

Intangible offerings

Physical elements + sensory, esthetic, &psychological benefits


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Strategic Importance

Products & service offerings must support the

companys business strategy by satisfying the

target customers needs & preferences

If not, the company will lose its customer base

and its market position will erode


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Steps in Product Design

Idea Development: A need is identified & a product idea to satisfy it is put

together

Product Screening: Initial ideas are evaluated for difficulty & likelihood of

success

Preliminary Design & Testing Market testing & prototype development

Final Design Product & service characteristics are set


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Idea Development

Existing & target customers Customer surveys & focus groups

Benchmarking

Studying best in class companies from your industry orothers and comparing their practices & performance toyour own

Reverse engineering Disassembling a competitors product & analyzing its

design characteristics & how it was made

Suppliers, employees and technical advances


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Product Screening

Operations: Are production requirements consistent with existing

capacity?

Are the necessary labor skills & raw materials available?

Marketing: How large is the market niche?

What is the long-term potential for the product?

Finance: What is the expected return on investment?


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Break-Even Analysis


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Break-Even Analysis

Total cost = fixed costs + variable costs (quantity):

Revenue = selling price (quantity)

Break-even point is where total costs = revenue:

QVCFTC

QSPR

VCSP

FQor

QSPQVCForRTC


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Break-Even Analysis Example

A firm estimates that the fixed cost of

producing a line of footwear is $52,000 with a

$9 variable cost for each pair produced. They

want to know: If each pair sells for $25, how many pairs must

they sell to break-even?

If they sell 4000 pairs at $25 each, how muchmoney will they make?


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Example Solved

Break-even point:

Profit = total revenuetotal costs

pairsVCSP

FQ 3250

9$25$

000,52$

000,12$

40009$000,52$400025$

QVCFQSPP


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Preliminary Design & Testing

General performance characteristics are

translated into technical specifications

Prototypes are built & tested (maybe offered

for sale on a small scale)

Bugs are worked out & designs are refined


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Final Design

Specifications are set & then used to:

Develop processing and service delivery

instructions

Guide equipment selection

Outline jobs to be performed

Negotiate contracts with suppliers and distributors


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Other Design factors

Design for Manufacture

Product Life Cycle

Concurrent Engineering


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Design for Manufacture (DMF)

Minimize parts

Design parts for

multiply applications Use modular design

Avoid tools

Simplify operations


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Design For Manufacture Benefits

Lower costs:

Lower inventories (fewer, standardized

components)

Less labor required (simpler flows, easier tasks)

Higher quality:

Simple, easy-to-make products means fewer

opportunities to make mistakes


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A design approach that uses multifunctional

teams to simultaneously design the product &

process

Replaces a traditional over-the-wall approach

where one group does their part & then hands

off the design to the next group


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Sequential Design


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Concurrent Engineering Benefits

Representatives from the different groups can better

consider trade-offs in cost & design choices as each

decision is being made

Development time is reduced due to less rework(traditionally, groups would argue with earlier

decisions & try to get them changed)

Emphasis is on problem-solving (not placing blame

on the other group for mistakes)


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Service Design

Service typically includes direct interactionwith the customer

Increased opportunity for customization

Reduced productivity

Cost and quality are still determined at thedesign stage

Delay customization

Modularization

Reduce customer interaction, often throughautomation


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Service Design

Figure 5.12


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Service Design

Figure 5.12


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Application of Decision Trees to

Product Design Particularly useful when there are a

series of decisions and outcomes which

lead to other decisions and outcomes


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Application of Decision Trees to

Product Design

1. Include all possible alternatives and states

of nature - including doing nothing2. Enter payoffs at end of branch

3. Determine the expected value of each

branch and prune the tree to find thealternative with the best expected value

Procedures


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(.6)

Low sales

(.4)

High sales

(.6) Low sales

(.4)High sales

Decision Tree Example

Purchase CAD

Hire and train engineers

Do nothing

Figure 5.14


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(.6) Low sales

(.4)

High sales


Purchase CAD

(.6)

Low sales

(.4)

High sales

Hire and train engineers

Do nothing

Figure 5.14

$2,500,000 Revenue

- 1,000,000 Mfg cost ($40 x 25,000)- 500,000 CAD cost

$1,000,000 Net

$800,000 Revenue- 320,000 Mfg cost ($40 x 8,000)- 500,000 CAD cost

- $20,000 Net loss

EMV (purchase CAD system) = (.4)($1,000,000) + (.6)(- $20,000)


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(.6)

Low sales

(.4)

High sales

(.6) Low sales

(.4)

High sales


Purchase CAD$388,000

Hire and train engineers$365,000

Do nothing $0

$0 Net

$800,000 Revenue- 400,000 Mfg cost ($50 x 8,000)- 375,000 Hire and train cost

$25,000 Net

$2,500,000 Revenue- 1,250,000 Mfg cost ($50 x 25,000)

- 375,000 Hire and train cost

$875,000 Net

$2,500,000 Revenue

- 1,000,000 Mfg cost ($40 x 25,000)- 500,000 CAD cost

$1,000,000 Net

$800,000 Revenue- 320,000 Mfg cost ($40 x 8,000)- 500,000 CAD cost

- $20,000 Net loss

Figure 5.14


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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 atimely manner

Most products have a trial production period to

insure producibility

Develop tooling, quality control, training Ensures successful production


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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 managingtransition

Project managers

Product development teams

Integrate product development and manufacturingorganizations


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PACCAR

PACCAR is a global technology leader in the: Design,

manufacture and

customer support of premium light-,

medium- and

heavy-duty trucks under the

Kenworth, Peterbilt and

DAF nameplates.


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Paccar Trucks

.


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Paccar Trucks

.


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Caterpillar Product Design

.


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Walking Dragline

.


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Walking Dragline

.


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CHAPTER

3

New Product Development

Prof.G.PurandaranM.Tech (I.I.T-Madras)


N P d D l


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.


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Stage 1: Idea Generation

New product ideas have to come from somewhere. But where do organizations get their ideas for NPD?

Sources include:

Market Research

Employees

Consultants

Competitors

Customers Distributors and Suppliers


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Idea Generation

.


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Stage 2: Idea Screening

This process involves shifting through theideas generated above and selecting ones

which are feasible and practical to develop.

Pursing impractical ideas is expensive and awaste of resources.

Idea Screening


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Idea Screening

.

Stage 3: Concept Development and


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Stage 3: Concept Development and

Testing

The organization may have come across what theybelieve to be a feasible idea, however, the idea needsto be taken to the target audience.

What do they think about the idea?

Will it offer the benefit that the organization hopes itwill?

or have they overlooked certain issues?

Will there be a demand for the product?

Note the idea taken to the target audience is not aworking prototype at this stage, it is just a concept.

Concept Development & Testing


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Concept Development & Testing

.

Stage 4: Marketing Strategy and


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Stage 4: Marketing Strategy and

Development

How will the product/service idea be launchedwithin the market?

A proposed marketing strategy will be written

laying out the: marketing mix strategy of the product,

the segmentation,

targeting and

positioning strategy and

expected sales and profits.

Marketing Strategy & Development


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Marketing Strategy & Development

.

Stage 5: Business Analysis


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Stage 5: Business Analysis

The company has a great idea: the marketing strategy seems feasible,

but will the product be financially worth while in

the long run? The business analysis stage looks more deeply intothe CASHFLOWthe product could generate,

what the cost will be,

how much market shares the product may achieve and the expected life of the product.

Business Analysis


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Business Analysis

.


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Stage 6: Product Development

At this stage the prototype is produced.

The prototype will :

undergo a serious tests,

and will be presented to a selection of people

made up of

the target market SEGMENT to see if changes

need to be made.

Product Development


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Product Development

.


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Stage 7: Test Marketing

Test marketing means :

testing the product within a specific geographic

area.

The product will be launched within a particularregion

so the marketing mix strategy can be monitored

and

if needed modified before national launch

Test Marketing


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Test Marketing

.


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Stage 8: Commercialization

If test marketing is successful the product is readyfor national launch.

The following decisions regarding the nationallaunch need to be made:

timing of the launch

how the product will be launched

where the product will be launched

will there be a national roll out or will it be region by region?

Commercialization


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Commercialization

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Conclusion

The eight stages of product development may seemlike a long process but they are designed to savewasted time and resources.

New product development ideas and prototypes aretested to ensure that the new product will meet targetmarket needs and wants.

There is a test launch during the test marketing stageas a full market launch is expensive.

Finally the commercialization stage is carefully

planned to maximize product success, a poor launchwill affect product sales and could even affect thereputation and image of the new product.


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CHAPTER

4

Process Design




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Design:

To design refers to the process of originatingand developing a plan for a product, service or

process.

Process:

Is any part of an organization which takes a set

of input resources which are then used totransform something into outputs of products

or services.

Process Design


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Process Design

Processes thatDesign Products

and Services

Concept Generation

Screening

Preliminary Design

Evaluation andImprovement

Prototyping and finaldesign

Processes thatProduce Products

and Services

Supply Network Design

Layoutand Flow

Process

Technology

Job

Design

Process design


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Nature of the design activity:

1) Design is inevitableproducts, services and the

processes which produce them all have to be

designed.

2) Product design influences process design

decisions taken during the design of a product or

service will have an impact on the decisions taken

during the design of the process which producesthose products or services and vice versa.

Product & services design are


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Product & services design are

interrelated to its process design

Decisions taken during the design of the product or service will havean impact on the process that produces them and vice versa

Products and s erv icesshould be des igned insuch a way that they

can be cr eatedeffectively

Processes should be

designed so they cancreate all p rodu ctsand serv ices which

the operat ion is l ikelyto int roduce

Designing theProduct or

Service

Designing theProcesses that

Produce the Productor Service

Process Design and Product/Service Design are Interrelated


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Process Design and Product/Service Design are Interrelated

To commit to the detailed design of a product or service

consideration must be given to how it is to be produced. Design of process can constrain the design of products and

services.

The overlap is greater in the service industry:

Service industry - it is impossible to separate servicedesign and process designthey are the same thing.

Manufacturing industry - it is possible to separate product

design and process design but it is beneficial to consider

them together because the design of products has a major

effect on the cost of making them.


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The design activity is itself a process Finished designswhich are:

High qual ity: Error-free designswhich fulfil their purpose in aneffective and creative way

Speedi ly prod uced: Designswhich have moved fromconcept to detailedspecification in a short time

Dependably del ivered: Designswhich are delivered whenpromised

Produced f lex ib ly: Designs

which include the latest ideasto emerge during the process

Low cost : Designs producedwithout consuming excessiveresources

TRANSFORMEDRESOURCES

Technical informationMarket informationTime information

TRANSFORMINGRESOURCES

Test and designequipment

Design and technicalstaff

THE DESIGNACTIVITY OUTPUTINPUTS


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Designing processes Process mapping

Process mapping symbols

Improving processes

Process performance Throughput, cycle time & work in process


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Process mapping Used to identify different types of activities.

Shows the flow of material, people or

information.

Critical analysis of process maps can improve

the process.


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Operation (an activitythat directly adds value)

Inspection (a check ofsome sort)

Transport (a movementof some thing)

Delay (a wait, e.g. for materials)

Storage (deliberate storage,as opposed to a delay)

Process mapping symbols derivedfrom Scientific Management

Decision (exercising discretion)

Process mapping symbols derivedfrom Systems Analysis

Direction of flow

Input or Output from the process

Activity

Beginning or end of process

Process mapping symbols


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Standard sandwich process

RawMaterials

Assembly StoredSandwiches

Move toOutlets

StoredSandwiches

SellTake

Payment

CustomerRequest

RawMaterials

Assembly TakePayment

CustomerRequest

Customized sandwich old process


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PrepareAssemble as

requiredTake

payment

Bread andBase filling

StoredBases

Fillings

Assemble wholesandwich

Customer

Request

Use standardbase?

Assemble fromstandard base

No

Yes

The operation of making andselling customized sandwiches

The outline process of making andselling customized sandwiches

The detailed process ofassembling customized

sandwiches

Sandwich

materials andcustomers

Customers

assembled tosandwiches


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Customized sandwich improvednew process

Bread andBase filling

Assembly ofsandwich

bases

Stored Bases

Fillings

Assemble wholesandwich

TakePayment

Customer Request

Use standardbase?

Assemble fromstandard base

No

Yes

Two handed process chart


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Left hand Right hand

Pick up base plate

Insert into fixture

Pick up two supports

Locate back plate

Pick up screws

Locate screws

Pick up air driver

Fasten screws

Replace air driver

Pick up centre assembly

Inspect centre assembly

Locate and fix

Switch on timer

Wait to end test

Inspect

Transfer grasp

Put aside

Wait

Hold base plate

Wait

Hold centre assembly

Inspect

Transfer grasp

Wait


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Process performance Process performance can be judge against the

five key performance objective:

Quality

Speed Dependability

Flexibility

Cost


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Throughput, work content, cycle time, and work

in process Throughputthe time for a unit to move through

the process

Work contentthe total amount of work required to

produce a unit of output (measured in time)

Cycle timeThe average time between units of

output emerging form the process

Work in process (WIP)unfinished items in a production process

waiting for further processing e. g. when customers join aqueue in a process they become WIP

throughput = work in process x cycle time


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Project Processes

One-off, complex, large scale, high workcontent products

Specially made, every one customized

Defined start and finish: time, quality and costobjectives

Many different skills have to be coordinated

Fixed position layout

Project Process


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Project Process


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Jobbing Processes

Very small quantities: one-offs, or only a fewrequired

Specially made. High variety, low repetition.

Skill requirements are usually very broad Skilled jobber, or team of jobbers complete

whole product

Fixed position or process layout (routingdecided by jobbers)

Jobbing Process


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Jobbing Process


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Batch Processes

Higher volumes and lower variety than forjobbing

Standard products, repeating demand. Butcan make specials

Specialized, narrower skills

Set-ups (changeovers) at each stage of

production Process or cellular layout

Batch Process


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Batch Process


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Mass Process


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Mass Process


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Continuous Process

Extremely high volumes and low variety: oftensingle product

Standard, repeat products

Highly capital-intensive and automated

Few changeovers required

Difficult and expensive to start and stop the

process Product layout: usually flow along conveyors

or pipes

Continuous Process


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Continuous Process


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VolumeLow High VolumeLow High

Variety

Lo

w

High

Variety

Lo

w

High

Project

Jobbing

Batch

Mass

Contin-

uous

Professionalservice

Service shop

Mass service

Service processtypes

Manufacturing processtypes


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CHAPTER

5

Cross Functional Product Design





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A cross-functional teamis a group of people with differentfunctional expertise working toward a common goal.

It may include people from

finance,

marketing,

operations, and

human resourcesdepartments.

Typically, it includes employees from all levels of anorganization.

Members may also come from outside an organization (inparticular, from suppliers, key customers, or consultants).

http://en.wikipedia.org/wiki/Financial_managementhttp://en.wikipedia.org/wiki/Marketing_managementhttp://en.wikipedia.org/wiki/Operations_managementhttp://en.wikipedia.org/wiki/Human_resource_managementhttp://en.wikipedia.org/wiki/Human_resource_managementhttp://en.wikipedia.org/wiki/Operations_managementhttp://en.wikipedia.org/wiki/Marketing_managementhttp://en.wikipedia.org/wiki/Financial_management


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Cross-functional teamsoften function as self-directed teams assigned to a specific task

which calls for the input and expertise of

numerous departments. Assigning a task to a team composed of multi-

disciplinary individuals increases the level of

creativity and out of the box thinking.

http://en.wikipedia.org/wiki/Teamhttp://en.wikipedia.org/wiki/Team


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Each member offers an alternativeperspective to the problem and potential

solution to the task.

In business today, innovation is a leadingcompetitive advantage and cross-functional

teams promote innovation through a creative

collaboration process.



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Members of a cross-functional team must bewell versed in multi-tasking as they are

simultaneously responsible for their cross-

functional team duties as well as their normalday-to-day work tasks.

Decision makingwithin a team may depend

on consensus, but often is led by amanager/coach/team leader.

http://en.wikipedia.org/wiki/Decision_makinghttp://en.wikipedia.org/wiki/Consensushttp://en.wikipedia.org/wiki/Consensushttp://en.wikipedia.org/wiki/Decision_making


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Leadership can be a significant challenge withcross-functional teams.

Leaders are charged with the task of directing

team members of various disciplines. They must transform different variations of

input into one cohesive final output.

Cross-functional teams can be likened to theboard of directors of a company.



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A group of qualified individuals of variousbackgrounds and disciplines are assembled to

collaborate in an efficient manner in order to

better the organization or solve a problem.



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Concurrent engineering can be definedas the simultaneous development ofdesign functions, with open and

interactive communication existingamong all team members for thepurpose of:

reducing time to market

decreasing cost improving quality and reliability

3

Phased versus Overlapping Approach in NewProduct Development


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Designinformation

processing

Activity1

Activity2

Activity3

Information batch size

Single batchtransfer of

info

Phased Approach

Start ofActivity 2

Start ofActivity 3

Elapsedtime

Designinformationprocessing

Activity1

Activity2

Small batch transfer of info Overlapping Approach

Start ofActivity 2

Start ofActivity 3

Elapsedtime

____________________________________________________________

New Product Development: The New Time Wars Joe Blackburn, 1991. 3a


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CHAPTER

6

Design for Manufacture &Assembly




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Introduction to

Design for (Cost Effective)Assembly and

Manufacturing

Purpose Statement


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Purpose Statement

To provide an overview of Design for

Manufacturing and Assembly (DFMA)

techniques, which are used to minimize

product costthrough design and

process improvements.

Objectives


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Objectives

Participants will understand: Differences and Similarities between Design for

Manufacturing and Design for Assembly

Describe how product design has a primary influence

Basic criteria for Part Minimization

Quantitative analysis of a designs efficiency

Critique product designs for ease of assembly

The importance of involving production engineers in DFMA

analysis

Design for Assembly


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g y

Definition: DFA is the method of design of theproduct for ease of assembly.

Optimization

of the part/sy stem

assembly

DFA is a tool used to assist the design teams in the design of

products that will transition to productions at a minimum cost,

focusing on the number of parts, handling and ease of assembly.

Design for Manufacturing


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g g

Definition: DFM is the method of design forease of manufacturing of the collection of

parts that will form the product after

assembly.Optimization of themanufactur ing

process

DFA is a tool used to select the most cost effective material and

process to be used in the production in the early stages of product

design.

Differences


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Design for Assembly (DFA)

concerned only with reducing product

assembly cost minimizes number of assembly operations

individual parts tend to be more complex in design

Design for Manufacturing (DFM)

concerned with reducing overall part

production cost

Similarities


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Both DFM and DFA seek to reduce material,

overhead, and laborcost.

They both shorten the productdevelopment cycle time.

Both DFM and DFA seek to utilize standards

to reduce cost

Terminology


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gy

Design for Manufacturing (DFM) and Design for

Assembly (DFA) are now commonly referred to as

a single methodology, Design for Manufacturingand Assembly (DFMA).


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Design

70 - 80%

Manufacturing

20 - 30%

What Internal Organization has the most

Influence over Price, Quality, & Cycle Time?

Knowledge and Learning


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Time Into the Design Process

Percentag

e

100908070

605040302010

100908070

605040302010

High

Low

Cost of Change

Design Freedom toMake Changes

Knowledge of DesignBehavior

Production

ProcessCapability

Knowledge

DFSSMarketing

Knowledge

g g

Sequence of Analysis


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Concept Design

Design forAssembly

Design forManufacturing

Detailed Design

Optimize Design forPart Count and

Assembly

Optimize Design forProduction Readiness

q y


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Design for Assembly

DFA is a process that REQUIRES

involvement of Assembly Engineers

Design for Assembly Principles


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g y p

Minimize partcount Design parts with self-locating features

Design parts with self-fastening features

Minimize reorientationof parts during assembly

Design parts for retrieval, handling, & insertion

Emphasize Top-Downassemblies

Standardizepartsminimum use of fasteners.

Encourage modulardesign

Design for a base partto locate other components

Design for component symmetry for insertion

DFA Process


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q Product Information: func t ional requirementsq Functional analysisq Identify parts that can be standardizedq Determine part count efficiencies

Step 2

Step 1

q Analyze data for new design

Step 3

q Identify handling(grasp & orientation) opportunitiesStep 4

q Identify insertion(locate & secure) opportunitiesStep 5

Step 6 q Identify opportunities to reduce secondary operations

q Identify quality(mistake proofing) opportunities

Benchmark when possible

q Determine your practical part count

Step 7


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q Product Information: funct ional requirements

qFunctional analysisq Identify parts that can be standardized

q Determine part count efficiencies

Step One

Considerations/Assumptions


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The first part is essential (base part)

Non-essential parts:

Fasteners

Spacers, washers, O-rings

Connectors, leads

Do not include liquids as parts(e.g.. glue, gasket sealant, lube)

Step

One

Part Identification


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List parts in the order

of assembly

Assign/record part

number

So take it apart!


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Count Parts & Interfaces


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List number of parts

(Np)

List number of

interfaces (Ni)


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Your Turn


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List parts in the order of assembly. Assign part number to keep up with the part.

List number of parts (Np)

List number of interfaces (Ni)

Current Consider Other

Determine Theoretical Min. No. of Parts


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CurrentDesign Specification Options

Does the partmove relative

to all otherparts alreadyassembled?

Is the part ofa different

material, or

isolated from,all other parts

alreadyassembled?

Is the partseparate toallow for its

in-serviceadjustment orreplacement?

Is themovement

essential forthe productto function?

Is a differentmaterial or

isolationessential forthe productto function?

Is theadjustment or

replacementessential?

Must the partbe separate

to provide therequired

movement?


to satisfy the

differentmaterial orisolation

requirement?


to enable theadjustment orreplacement?

Y

Y

Y Y

Y

Y

EssentialPart

N N N

N N N

Y

Y

Y

N N N

NonEssential

Part

Movement

Isolation

Adjustmentor

Repla

cement

C D i C id S ifi i Oth O ti

Functional Analysis


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Current Design Consider Specification Other Options

Does the part moverelative to all other

parts alreadyassembled?

Is the part of adifferent material, or

isolated from, allother parts already

assembled?

Is the part separateto allow for its in-

service adjustmentor replacement?

Is the movementessential for the

product to function?

Is a different

material or isolationessential for the

product to function?

Is the adjustment or

replacementessential?

Must the part beseparate to provide

the requiredmovement?

Must the part be

separate to satisfythe differentmaterial or isolation

requirement?

Must the part beseparate to enablethe adjustment or

replacement?

Y

Y

Y Y

Y

Y

EssentialPart

N N N

N N N

Y

Y

Y

N N N

Non EssentialPart

Moveme

nt

Isolation

Adjust

ment

or

Replacement

Determine if Parts Can be Standardized


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Can the current parts be

standardized?:

Within the assembly

station

Within the full assembly

Within the assembly

plant

Within the corporation

Within the industry

Should they be?

(Only put a Y if both

answers are yes)

Theoretical Part Count Efficiency


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Theoretical Part

Count Efficiency

Theoretical Min. No. Parts

Total Number of Parts

Theoretical Part 1

Count Efficiency 10

Theoretical Part

Count Efficiency

=

= * 100

= 10%

* 100

GoalRule of ThumbPartCount Efficiency Goal >

60%

DFA Complexity FactorDefinition


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Cummins Inc. metric for assessing complexityof a product design

Two Factors

NpNumber of parts NiNumber of part-to-part interfaces

Multiply the two and take the square root of the

total

This is known as the DFA Complexity Factor

SNp x SNi

DFA Complexity FactorTarget


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Smaller is better (Minimize Np and Ni)

Let Npt = Theoretical Minimum Number of parts

from the Functional Analysis

Npt = 5

Let Nit = Theoretical minimum number of part to part interfaces

Nit = 2(Npt-1)

Nit = 2(5-1) = 8

Part 2

Part 3

Part 4

Part 5

Part 1

DCF SNp x SNi

DCFt SNpt x SNit

DCFt 5x 8 = 6.32

Determine Relative Part Cost

Levels


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Levels Subjective estimateonly

Low/Medium/High

relative to other parts

in the assembly

and/or product line

Cost Breakdown


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Media paper 21.4%

Centertube 3.6% Endplates (2) 3.0%

Plastisol 2.6%

Inner Seal 4.0%

Spring 0.9%

Shell 31.4%

Nutplate 21.0%

Retainer 4.8%

Loctite 0.3%

End Seal 7.0%


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Step Two

Determine Practical Minimum Part Count

Determine Practical Minimum Part Count


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Team assessment of

practical changes Tradeoffs between part

cost and assembly cost

Th i l N b f

Creativity & Innovation


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Innovation

No. Parts

Current Design

Practical Min.No. Parts

Practical & Achievable

Theoretical Number ofParts...

Theoretical Min.No. Parts

Blue Sky

Cost of Assembly Vs Cost of Part Manufacture


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Part Count Reduction

Assembly Saving(DFA)

Part ManufactureSaving (DFM)

Saving

Optimum

Total Saving

Idea Classification


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Implementation

RiskHighMediumLow

Short

Term

MediumTerm

LongTerm

Step

Two

Dont constrain yourself to incremental improvement

unless you have to!


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This style doesnt tear paper like the claw style and is much cheaper

to produce!

Your Turn...


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Steps

One &

Two

Product Information:funct ional requirements

Functional analysis

Identify parts that can bestandardized

Determine part countefficiencies

Determine your practical part count

Instructions

Fasteners


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A study by Ford Motor Co. revealed

that threaded fasteners were the most

common cause of warranty repairs

This finding is echoed in more recent

survey of automotive mechanics, in

which 80% reported finding loose or

incorrect fasteners in cars they

serviced

StepOne

Component Elimination

Example: Rollbar Redesign

If more than 1/3 of the components in a product are


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24 Parts

8 different parts

multiple mfg. & assembly

processes necessary

2 Parts

2 Manufacturing processes

one assembly step

..If more than 1/3 of the components in a product are

fasteners, the assembly logic should be questioned.

Fasteners: Cummins Engines


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Data from Munroe & Associates October 2002

Engine Type Number of

Components

Number of

Fasteners

Percent

Fasteners

B Series, 6 Cyl 5.9L 1086 436 40%

B Series, 4 Cyl 3.9L 718 331 46%

C Series, 8.3L 1111 486 44%

Standard Bolt Sizes


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Minimize extra sizes to both reduce inventoryand eliminate confusion during assembly

M5 x .8 M6 x 1.0 M8 x 1.25 M10 x 1.5 M11 x 1.25M12 x 1.25M12 x 1.75 M14 x 1.5 M16 x 2.0 Qty Required

12mm 0

14mm 2 2

16mm 3 320mm 4 8 8 20

25mm 6 6 12

30mm 3 8 11

35mm 10 35 45

39.5mm 32 12 10 4 58

40mm 41 27 6 74

45mm 22 9 1 32

50mm 4 9 25 18 12 6860mm 13 8 15 36

70mm 6 6

Required 2 7 93 152 75 16 21 0 1 367

Candidates for elimination

Fastener Cost


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Select the

most

inexpensive

fastening

method

required plastic bending

riveting

screwing

snap fit

General Design Principles


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Self-fastening features

General Design Principles


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Asymmetric Part Symmetry of a partmakes assembly easier

Symmetry eliminates reorientation

General Design PrinciplesTop Down Assembly


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Top-Down Assembly

General Design PrinciplesM d l A bli


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Modular Assemblies

1. Imaging2. Drives

3. Development

4. Transfer/Stripping

5. Cleaning

6. Fusing

7. Charge/Erase

8. Copy Handling9. Electrical Distribution

10. Photoreceptor

11. Input/output Devices

Xerox photocopier

Eliminated Parts are NEVER


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Designed Detailed

Prototyped

Produced Scrapped

Tested

Re-engineered Purchased

Progressed

Received Inspected

Rejected

Stocked

Outdated

Written-off

Unreliable

Recycled

late from the supplier!


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StepThree

Identify quality(mistake proofing)opportunities


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Mistake Proofing Issues


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72 Wiring Harness

Part NumbersCDC - Rocky Mount,

NC


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Step Four

Identify handling (grasp & orientation)opportunities

Quantitative criteria


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Handling Time: based on assembly process andcomplexity of parts

How many hands are required?

Is any grasping assistance needed? What is the effect of part symmetry on assembly?

Is the part easy to align/position?

Handling Difficulty


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Size Thickness

Weight

Fragility

Flexibility

Slipperiness

Stickiness

Necessity for using 1) two hands, 2) optical

magnification, or 3) mechanical assistance

Handling Difficulty


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size slipperiness

sharpness flexibility

Eliminate Tangling/Nesting


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Step Five

Identify insertion (locate & secure)opportunities

Quantitative criteria


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Insertion time: based on difficulty required foreach component insertion

Is the part secured immediately upon insertion?

Is it necessary to hold down part to maintain location?

What type of fastening process is used? (mechanical,

thermal, other?)

Is the part easy to align/position?

Insertion Issues


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Provide self-aligning & self locating parts

Insertion Issues


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Ensure parts do not need to be held inposition

Insertion Issues


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Parts are easy to insert. Provide adequate access & visibility

Insertion Issues


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Provide adequate access and visibility


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Step Six

Identify opportunities to reduce secondaryoperations

Eliminate Secondary Operations


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Re-orientation (assemble in Z axis) Screwing, drilling, twisting, riveting, bending,

crimping.

Rivet

Eliminate Secondary Operations


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Welding, soldering, gluing.

Painting, lubricating, applying liquid or gas.

Testing, measuring, adjusting.


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Analyze All Metrics

Firstconsider:

Reduce part count & type Part Count Efficiency


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& DFA Complexity Factor

Thenthink about:Error Proofing Error Index

Thenthink about:Ease of handling Handling IndexEase of insertion Insertion IndexEliminate secondary ops. 2ndOp. Index

Set Target Values for These Measures

Steps

Your Turn...


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Complete theremaining columns &

calculate yourproductsAssemblabilityIndices

Instructions

Steps

Two -Six


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StepSeven

Analyze data for new design


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In order of importance:

DFA Guidelines


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In order of importance:

Reduce part count & types

Ensure parts cannot be installed incorrectly

Strive to eliminate adjustments

Ensure parts self-align & self-locate Ensure adequate access & unrestricted vision

Ensure parts are easily handled from bulk

Minimize reorientation (assemble in Z axis) &secondary operations during assembly

Make parts symmetrical or obviously

asymmetrical

Consideration of True Production costs and the

Understanding Product Costs


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Bill of Material Costs,Typical Costing Total Cost

Pareto by Part Cost

1. Castings $$2. Forging $$3.--------------------------------

n. Fasteners c

Pareto by Total Cost

1. Fasteners $$$$$2. -----3. --------------------------------------n. Castings $$


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Has the Design Addressed Automation

Selection of ManufacturingMethod


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g

Possibilities?

Is the Product configured

with access for and theparts shaped for theimplementation of

automation?

Part Features that are Critical To the

Understanding ComponentFeatures


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Products Functional Quality

Every Drawing

Call Out is notCritical toFunction and

Quality

Key DFMA Principles

Minimize Part Count


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StandardizeParts and Materials

Create ModularAssemblies

Design for Efficient Joining

Minimize Reorientationof parts during

Assembly and/or Machining

Simplify and Reducethe number of

Manufacturing Operations

Specify Acceptable surface Finishesfor

functionality

References


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1. Assembly Automation and Product Design

G. Boothroyd, Marcell Dekker, Inc. 1992

2. Product Design for Manufacture and Assembly

G. Boothroyd and P. Dewhurst, Boothroyd Dewhurst, Inc. 1989

Marcell Dekker, Inc. 1994

3. Design and Analysis of Manufacturing SystemsProf. Rajan Suri University of Wisconsin 1995

4. Product Design for Assembly: The Methodology Applied

G. Lewis and H. Connelly

5. Simultaneous Engineering Study of Phase II Injector Assembly line

Giddings & Lewis 19976. Design for Manufacturing Society of Manufacturing Engineers,

(VIDEO)

CHAPTER

9


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9

Product and

Service Design

McGraw-Hill/Irwin

Operations Management, Eighth Edition, by William J. StevensonCopyright 2005 by The McGraw-Hill Companies, Inc. All rights reserved.

Major factors in design strategy

Product and Service Design


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Cost Quality

Time-to-market

Customer satisfaction Competitive advantage

Product and service designor redesignshould beclosely tied to an organizations strategy

Translate customer wants and needs into

Product or Service Design Activities


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product and service requirements Refine existing products and services

Develop new products and services

Formulate quality goals Formulate cost targets

Construct and test prototypes

Document specifications

Reasons for Product or Service Design

Economic


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Social and demographic

Political, liability, or legal

Competitive

Technological

Objectives of Product and Service Design

Main focus


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Customer satisfaction Secondary focus

Function of product/service

Cost/profit Quality

Appearance

Ease of production/assembly

Ease of maintenance/service

Taking into account the capabilities of the

Designing For Operations


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organization in designing goods andservices

Legal

Legal, Ethical, and Environmental Issues


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FDA, OSHA, IRS Product liability

Uniform commercial code

Ethical Releasing products with defects

Environmental

EPA

Regulations & Legal Considerations

Product Liability - A manufacturer is liable for


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any injuries or damages caused by a faultyproduct.

Uniform Commercial Code - Products carry an

implication of merchantability and fitness.

Designers Adhere to Guidelines

Produce designs that are consistant with the


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goals of the company Give customers the value they expect

Make health and safety a primary concern

Consider potential harm to the environment

Other Issues in Product and Service Design

Product/service life cycles


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How much standardization

Product/service reliability

Range of operating conditions

Life Cycles of Products or ServicesFigure 4.1


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Time

Introduction

Growth

Maturity

Saturation

Decline

Dema

n

d

Standardization

Standardization


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Extent to which there is an absence of variety ina product, service or process

Standardized products are immediately

available to customers

Advantages of Standardization

Fewer parts to deal with in inventory &


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manufacturing

Design costs are generally lower

Reduced training costs and time More routine purchasing, handling, and

inspection procedures

Advantages of Standardization (Contd)

Orders fillable from inventory


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Opportunities for long production runs andautomation

Need for fewer parts justifies increasedexpenditures on perfecting designs andimproving quality control procedures.

Disadvantages of Standardization

Designs may be frozen with too many


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imperfections remaining. High cost of design changes increases

resistance to improvements.

Decreased variety results in less consumerappeal.

Mass customization:

Mass Customization


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A strategy of producing standardized goods orservices, but incorporating some degree

degree of customization

Delayed differentiation

Modular design

Delayed differentiation is a postponement

Delayed Differentiation


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tactic Producing but not quite completing a product

or service until customer preferences or

specifications are known

Modular Design

Modular design is a form of standardization in


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which component parts are subdivided intomodules that are easily replaced orinterchanged. It allows:

easier diagnosis and remedy of failures

easier repair and replacement

simplification of manufacturing and assembly

Reliability

Reliability: The ability of a product, part, or system


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to perform its intended function under a prescribedset of conditions

Failure: Situation in which a product, part, or

system does not perform as intended

Normal operating conditions: The set ofconditions under which an items reliability is

specified

Improving Reliability

Component design


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Production/assembly techniques

Testing

Redundancy/backup Preventive maintenance procedures

User education

System design

Product Design

Product Life Cycles


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Robust Design


Computer-Aided Design Modular Design

Robust Design: Design that results in

Robust Design


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products or services that can functionover a broad range of conditions

Degree of Newness

1.Modification of an existing product/service


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2.Expansion of an existing product/service

3.Clone of a competitors product/service

4.New product/service


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Idea Generation


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Ideas Competitor based

Supply chain based

Research based

Reverse Engineering


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Reverse engineeringis thedismantling and inspecting

of a competitors product to discover

product improvements.

Research & Development (R&D)

Organized efforts to increase scientific


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knowledge or product innovation & mayinvolve:

Basic Research advances knowledge about asubject without near-term expectations of

commercial applications. Applied Research achieves commercial

applications.

Developmentconverts results of applied

research into commercial applications.

Manufacturability

Manufacturability is the ease of fabrication


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and/or assembly which is important for: Cost

Productivity

Quality



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Concurrent engineeringis the bringing together

of engineering design and

manufacturing personnelearly in the design phase.

Computer-Aided Design

Computer-Aided Design (CAD) is product


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design using computer graphics. increases productivity of designers, 3 to 10 times

creates a database for manufacturinginformation on product specifications

provides possibility of engineering and costanalysis on proposed designs

Recycling: recovering materials for future use

Recycling


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Recycling reasons Cost savings

Environment concerns

Environment regulations

Service Design

Service is an act


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Service delivery system Facilities

Processes

Skills Many services are bundled with products

Service Design

Service design involves


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The physical resources needed The goods that are purchased or consumed by

the customer

Explicit services Implicit services


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Tangibleintangible

Differences Between Productand Service Design


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Services created and delivered at the sametime

Services cannot be inventoried

Services highly visible to customers

Services have low barrier to entry

Location important to service

Phases in Service Design

1.Conceptualize


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2.Identify service package components3.Determine performance specifications

4.Translate performance specifications into

design specifications

5.Translate design specifications into delivery

specifications

Service Blueprinting

Service blueprinting


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A method used in service design to describe andanalyze a proposed service

A useful tool for conceptualizing a service

delivery system

Major Steps in Service Blueprinting

1. Establish boundaries


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2. Identify steps involved3. Prepare a flowchart

4. Identify potential failure points

5. Establish a time frame

6. Analyze profitability

Characteristics of Well DesignedService Systems

1. Consistent with the organization mission


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2. User friendly3. Robust

4. Easy to sustain

5. Cost effective6. Value to customers

7. Effective linkages between back operations

8. Single unifying theme

9. Ensure reliability and high quality

Challenges of Service Design

Variable requirements


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Difficult to describe High customer contact

Servicecustomer encounter

Quality Function Deployment

Quality Function Deployment


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Voice of the customer House of quality

QFD: An approach that integrates the voice of the

customer into the product and service development

process.

The House of QualityFigure 4.4


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Correlationmatrix

Designrequirements

Customerrequire-ments

Competitiveassessment

Relationshipmatrix

Specificationsor

target values

X

Correlation:Strong positive

House of Quality Example

Figure 4.5


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Customer

Requirements

Easy to close

Stays open on a hill

Easy to open

Doesnt leak in rain

No road noise

Importance weighting

Engineering

Characteristics

Energyneeded

toclosedoor

Checkforce

onlevel

ground

Energyneeded

toopendoor

Waterresistance

10 6 6 9 2 3

7

5

3

3

2

X

X X

X

PositiveNegativeStrong negative

X*

Competitive evaluation

X = UsA = Comp. AB = Comp. B(5 is best)

1 2 3 4 5

X AB

X AB

XAB

A X B

X A B

Relationships:

Strong = 9

Medium = 3Small = 1Target values

Reducee

nergy

levelto7

.5ft/lb

Reduceforce

to9lb.

Reducee

nergy

to7.5

ft/lb.

Maintain

currentle

vel

Technical evaluation

(5 is best)

54321

B

A

X

BA

X B

A

X

B

X

A

BXABA

X

Doorseal

resistance

Accoust.Trans.

Window

Maintain

currentle

vel

Maintain

currentle

vel


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Shorten Time to Market

1. Use standardized components


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2. Use technology3. Use concurrent engineering

CHAPTER

11


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Value Analysis

Prof.G.Purandaran



INTRODUCTION

W h


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The concept of value analysis was developed

during World War II by Lawrence D. Miles of

General Electric Company.

Worth to youValue = ------------------

Price you pay

Value Analysis is an effective tool for cost reduction and the results

li h d f

VALUE ANALYSIS


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accomplished are far greater.

It improves the effectiveness of work.

It is an organised approach to a problem.

It is value applied at the design stage itself.

It reduces unnecessary costs, obvious and hidden which can be

eliminated without adversely affecting quality, efficiency, safety andother customer features.

DEFINITION

V l A l i b d fi d


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Value Analysis can be defined as,

A process of systematic review that is applied to

existing product designs in order to compare the

function of the product required by a customer tomeet their requirements at the lowest cost

consistent with the specified performance and

reliability needed.

APPLICATION OF VALUE ANALYSIS1. Capital goods plant, equipment, machinery, tools, etc.

2. Raw and semi-processed material, including fuel.

i l h dli d i


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3. Materials handling and transportation costs.

4. Purchased parts, components, sub-assemblies, etc.

5. Maintenance, repairs, and operational items.

6. Finishing items such as paints, oils, varnishes, etc.

7. Packing materials and packaging.

8. Printing and Stationery items.

9. Miscellaneous items of regular consumptions.10. Power, water supply, air, steam & other utilities (services).

OBJECTIVES OF VALUE ANALYSIS

1) To provide better value to a product/service.

) T i th titi iti


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2) To improve the companys competitive position.

3) To ensure that every element of Cost (

Labour

Materials

Suppliers and service )

contribute equally to the Function of the product.

4) To Eliminate unnecessary Cost.

STEPS CARRYING VALUE ANALYSIS

Establish the objectives (eg, cost reduction).

Consider a team for marketing, sales, production,

h i t


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purchasing, etc.

Analyse the production process of the supplier company.

Decompose various characteristics of purchased product.

Hold a creative brainstorming session to explore allalternative possibilities.

Sort the ideas to establish the cost of each.

Select the best alternative. Develop a plan for implementing the change.

To understand value analysis it is necessary to understand some key

concepts:

th ti b t f ti f t ti f ti d

How Does It Work


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Value: the ratio between a function for customer satisfaction andthe cost of that function.

Function: the effect produced by a product or by one of its

elements, in order to satisfy customer needs.

Value analysis: methodology to increase the value of an object to

be analysed could be an existing or a new product or process, and it

is usually accomplished by a team following a work plan.

Need: something that is necessary or desired by the customer.

TECHNIQUES OF VALUE ANALYSIS

DESIGN ANALYSIS


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CHECKLIST

BRAINSTORMING

PRICE ANALYSIS

The Value Analysis Process

Value analysis is based on the application of a systematic work plan

that may be divided into various steps:

orientation/preparation


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orientation/preparation

Information

Analysis

Innovation/creativity,

Evaluation and implementation and monitoring.

The application of value analysis only needs to make use of basic

techniques such as matrixes, pareto chart, pert and gantt diagrams, etc.

In reality, a complex number of reasons exists that

necessitate the structured approach of value analysis as a

means of logical cost reduction

Why Use Value Analysis


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means of logical cost reduction.

These reasons can be divided into two

key sources,

1) those that lie within the business and secondly

1) those that are stimulated by the

market for the product or service.

SIX WHATs OF VALUE ANALYSIS

1) What is it ?


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1) What is it ?2) What does it do ?

3) What does it cost ?

4) What is it worth ?5) What else will do the job ?

6) What does that cost ?

THE PHASES OF VALUE ANALYSIS JOBPLAN

SELECTION & ORIENTATION


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ANALYSIS

RECORDING IDEAS

SPECULATION

INVESTIGATION

RECOMMENDATION

IMPLEMENTATION

BENEFITS TO BE ACHIEVED BY VALUEANALYSIS

Better purchasing techniques

Better suppliers & manufacturing methods


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Better suppliers & manufacturing methods

Lower operating costs

Standardisation & re-evaluation

Substitution & packaging

Better material handling

Better inventory control

Lower maintenance & overhead cost

Value analysis is a technique with immense possibilities, and

systematically employed, it can achieve great economies and increased

efficiency.

Although good results have been obtained in several individual cases in

CONCLUSION


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Although good results have been obtained in several individual cases insome industries, only a large scale and systematic application of this

technique in all industries, and in defence production, can result in

substantial economies on a national scale.

To conclude, we can say that benefits of value analysis include,

Reduced production cost,

Materials and distribution cost,

Improved profit margin,

Increased customer satisfaction.


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symbiosis om mba ee module 2 nov 9

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