Design of Products

Dr. R K Singh

41

Product Decision
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

42

Product Strategy Options

Differentiation
Low cost
Rapid response

43

New Product Opportunities

1. Understanding the
customer
2. Economic change
3. Sociological and
demographic change
4. Technological change
5. Political/legal change
6. Market practice, professional
standards, suppliers, distributors
44

Importance of New Products

Percentage of Sales from New Products
50%
40%
30%
20%
10%

Industry
leader

Top
third

Middle
third

Bottom
third

Position of Firm in Its Industry

45

Product Life Cycles

May be any length from a few
hours to decades
The operations function must
be able to introduce new
products successfully

46

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
47

Product Development
System
Ideas
Ability
Customer Requirements
Functional Specifications
Scope of
product
development
team

Product Specifications Scope for

design and
Design Review
engineering
teams
Test Market
Introduction
Evaluation
48

Quality Function
Deployment
Identify customer wants
Identify how the good/service will satisfy
customer wants
Relate customer wants to product hows
Identify relationships between the firms hows
Develop importance ratings
Evaluate competing products
Compare performance to desirable technical
attributes
49

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
4 10

House of Quality 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

4 11

Interrelationships

House of Quality Example

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

4 12

Interrelationships

House of Quality Example

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

4 13

Interrelationships

House of Quality Example

What the
Customer
Wants

High relationship
Medium relationship
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
4 14

Interrelationships

House of Quality Example

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

4 15

Interrelationships

House of Quality Example

What the
Customer
Wants

Relationship
Matrix

Analysis of
Competitors

How to Satisfy
Customer Wants

Technical
Attributes and
Evaluation

Lightweight
Easy to use
Reliable
Easy to hold steady
Color corrections
Our importance ratings

3
4
5
2
1
22

27 27

32

25

Weighted
rating
4 16

Interrelationships

How to Satisfy
Customer Wants

Technical
Attributes and
Evaluation

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

3
4
5
2
1
22

Company B

Relationship
Matrix

Company A

What the
Customer
Wants

Analysis of
Competitors

House of Quality Example

G
G
F
G
P

P
P
G
P
P

5
4 17

Interrelationships

How to Satisfy
Customer Wants

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

House of Quality Example

Company A 0.7 60% yes 1

ok G

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

ok F
ok G
4 18

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

House of Quality Example

Company A

0.7 60% yes

ok

Technical
evaluation Company B

0.6 50% yes

ok

0.5 75% yes

ok

Us

4 19

House of Quality Sequence

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

Customer
requirements

House
1

House
2

House
3

Production
process

Design
characteristics

Design
characteristics

Specific
components

Specific
components

Production
process

House
4

4 20

Organizing for Product

Development
Team approach (Used in USA)
Cross functional representatives
from all disciplines or functions
(Concurrent Engg)
Product development teams, design
for manufacturability teams, value
engineering teams

4 21

Design Team

4 22

Design Review
Review designs to prevent failures
and ensure value
Failure mode and effects analysis
(FMEA)
a systematic method of analyzing product
failures

Fault tree analysis (FTA)

a visual method for analyzing
interrelationships among failures

Value analysis (VA)

helps eliminate unnecessary features and
functions

4 23

FMEA for Potato Chips

Failure
Mode

Cause of
Failure

Effect of
Failure

Corrective
Action

Stale

moisture content
expired shelf life
poor packaging

tastes bad
wont crunch
thrown out
lost sales

add moisture
cure longer
better package seal
shorter shelf life

Broken

too thin
too brittle
rough handling
rough use
poor packaging

cant dip
poor display
injures mouth
chocking
perceived as old
lost sales

change recipe
change process
change packaging

Too Salty

outdated receipt
process not in control
uneven distribution of salt

eat less
drink more
health hazard
lost sales

experiment with recipe

experiment with process
introduce low salt version

4 24

Fault tree analysis (FTA)

4 25

Value analysis (VA)

Can we do without it?
Does it do more than is required?
Does it cost more than it is worth?
Can something else do a better job?
Can it be made by
a less costly method?
with less costly tooling?
with less costly material?

Can it be made cheaper, better, or faster

by someone else?
4 26

Value analysis (VA) (cont.)

Updated versions also include:
Is it recyclable or biodegradable?
Is the process sustainable?
Will it use more energy than it is worth?
Does the item or its byby-product harm
the environment?

4 27

Sustainability
Ability to meet present needs without
compromising those of future generations
Green product design

4 28

Design for Environment

4 29

Guidelines for Environmentally

Friendly Designs
1. Make products recyclable
2. Use recycled materials
3. Use less harmful ingredients
4. Use lighter components
5. Use less energy
6. Use less material
4 30

Manufacturability and
Value Engineering
Benefits:
1. Reduced complexity of products
2. Additional standardization of products
3. Improved functional aspects of product
4. Improved job design and job safety
5. Improved maintainability (serviceability)
of the product
6. Robust design
4 31

Cost Reduction of a Bracket

via Value Engineering

4 32

Issues for Product

Development
Robust design
Modular design
Computer
Computer--aided design (CAD)
Computer
Computer--aided manufacturing (CAM)
Value analysis
Environmentally friendly design

4 33

Benefits of CAD/CAM
1. Product quality
2. Shorter design time
3. Production cost reductions
4. Database availability
5. New range of capabilities

4 34

Documents for Production

Assembly drawing
Assembly chart
Route sheet
Work order
Bill of material (BOM)
Engineering change notices (ECNs)

4 35

Reliability
Reliability:
Reliability: The probability of a product, part, or
system to perform its intended function under a
prescribed set of conditions
Failure:
Failure: Situation in which a product, part, or
system does not perform as intended
Normal operating conditions:
conditions: The set of conditions
under which an items reliability is specified

4 36

Rule 1 (Series System)

Lamp 1

.90

Lamp 2

.80

.90 x .80 = .72

37
4 37

Rule 2 (Parallel System)

.70
Lamp 3 (backup for Lamp 2)

.80
Lamp 2 (backup for Lamp1)

1 P(all fail)
.90

1-[(1-.90)*(1-.80)*(1-.70)] = .994
Lamp 1

4 38

Example SS-1 Reliability

Determine the reliability of the system shown

.98

.90

.92

.90

.95

.98 x .99 x .996 = .966

39
4 39

Improving Reliability
Component design
Production/assembly techniques
Testing
Redundancy/backups
Preventive maintenance procedures
User education
System design
4 40

Maintenance Management
Performance Metrics
Equipment breakdowns
Breakdowns can be measured in terms of the
frequency and the severity

Mean Time Between Failure (MTBF)

MTBF is the expected time of the arrival of a failure

Mean Time to Repair (MTTR)

MTTR is the expected time for restoring the
equipment back to the working condition

Availability
Availability is defined, as the fraction of the time
the equipment is available for productive use
MTBF
At
( MTBF MTTR)

4 41

Effective Maintenance Management

Some requirements

Equipment Catalogue
Maintenance Policy & Manual
Troubleshooting Mechanisms
Fault Tree Analysis
Maintenance Information System
Equipment History Cards

4 42

Thank You

4 43