Product Design

Chapter 3
 Outline
• Strategies for New-Product Introduction
• New-Product Development Process
• Cross-Functional Product Design
• Quality Function Deployment
• Design for Manufacturing
– Value Analysis
– Modular Design

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 Strategies for New-Product
Introduction

• Market Pull (“We Make What We Can Sell”)

– Food industry
• Technology Push (“We Sell What We Can
Make”)
– electronics
• Interfunctional View: the pdt should not only fit
the mkt needs but have a technical advantage as
well.
– Personal computers

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 New Product Development Process
• Concept Development
• Product Design
• Pilot Production/Testing

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 New Product Design Process (Figure 3.1)

Concept development

Product design Preliminary process design

Pilot production/testing Final process design

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 Cross Functional Product Design (Figure 3.2)

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 Quality Function Deployment (QFD)
• QFD: An approach that integrates the “voice of
the customer” into the product and service
development process.
• Also known as “House of Quality”
• Developed in Japan 1972
• It links customer requirements to the
technical specifications, i.e. it relates
Customer Attributes (“Voice of the
Customer”) to Engineering Characteristics
(“Voice of the Engineer”)
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 QFD…cont’d
• QFD facilitates inter-functional cooperation
between marketing, engineering and operations
by helping make necessary tradeoffs.
• Also enables making comparison with
competitors products as new products are
designed.
• QFD is a tool for Concurrent engineering.
• Concurrent engineering is bringing together of
engineering design and manufacturing personnel
early in the design phase.

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 3-9

Design for Manufacturing (DFM)

• DFM involves:
– Value Analysis (or engineering) and Modular design
– Value=usefulness>cost
– Hence, simply VA seeks for the product to reduce its
cost without reducing its quality or
– To improve its quality without increasing its cost
• Objectives of Value Analysis:
– Enhance the design of a good or service to provide
higher quality at the same price, or the same quality at
a lower price
– Modify the design of production process to lower the
cost..

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 • …of a good or service while maintaining or
improving quality.
• In other words, improve value to the
customer, i.e. the ratio of usefulness to
cost.

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 DFM…cont’d
• To successfully introduce new products,
one must be concerned about
– 1. Meeting customers’ needs, and
– 2. Designing a product that can be successfully
produced. The latter is called design for
Manufacturability (DFM).
• Manufacturability is the ease of fabrication and/or
assembly which is important for:
– Cost
– Productivity
– Quality
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 DFM: An Example

(a) The original design (b) Revised design (c) Final design

Assembly using One-piece base & Design for push-and-snap

common fasteners elimination of fasteners assembly

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 Modular Design
• Allow greater variety through ‘mixing and
matching’ of modules.
• Develop a series of basic product components
(modules) for later assembly into multiple
products
• Reduces complexity and costs associated with
large number of product variations
• Easy to subcontract production of modules
• Multiple products are assembled using common
parts, processes and modules.
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 Modular Design…
Modular design is a form of standardization in
which component parts are subdivided into
modules that are easily replaced or
interchanged. It allows:
– easier diagnosis and remedy of failures
– easier repair and replacement
– simplification of manufacturing and assembly

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 Productivity Measurement
• Productivity
– A measure of the effective use of resources,
usually expressed as the ratio of output to input
• Productivity ratios are used for
– Planning workforce requirements
– Scheduling equipment
– Financial analysis

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 Productivity Measurement
 Partial measures
 output/(single input)
 Multi-factor measures
 output/(multiple inputs)
 Total measure
 output/(total inputs)
Outputs
Productivity =
Inputs
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 Productivity Growth
Productivity Growth =

Current Period Productivity – Previous Period Productivity

Previous Period Productivity

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 Types of Productivity Measures

Partial Output Output Output Output

measures Labor Machine Capital Energy

Multifactor Output Output

measures Labor + Machine Labor + Capital + Energy

Total Goods or Services Produced

measure All inputs used to produce them

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 Example

7040 Units Produced

Sold for $1.10/unit

Cost of labor of $1,000 What is the

multifactor
Cost of materials: $520 productivity?

Cost of overhead: $2000 Ans. 2.20

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 Example - Solution

MFP = Output
Labor + Materials + Overhead

MFP = (7040 units)*($1.10)

$1000 + $520 + $2000

MFP = 2.20

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Example
Collins Title Company has a staff of 4 each
working 8 hours per day (for a payroll cost of
$640/day) and overhead expenses of $400
per day. Collins processes and closes on 8
titles each day. The company recently
purchased a computerized title-search system
that will allow the processing of 14 titles per
day. Although the staff, their work hours, and
pay will be the same, the overhead expenses
are now $800 per day.
Compute the followings

• Labor productivity with the old system =

• Labor productivity with the new system =
• Multifactor productivity with the old system =
• Multifactor productivity with the new system=

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Compute …

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 Productivity Growth
 Labor productivity has increased from
0.25 to 0.4375. The change is
0.43750.25=1.75 or a 75% increase in
labor productivity.
 Multifactor productivity has increased
from 0.0077 to 0.0097. This change is
0.00970.0077=1.259, or a 25.9%
increase in multifactor productivity.

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 The End!

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