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PRODUCT DESIGN AND DEVELOPMENT

Dr. Tien Minh Do


Department of Industrial Management
School of Economics and Management
Hanoi University of Science and technology

© 2014 Pearson Education, Inc. 5-1


OUTLINE

• Concepts of product design and development


• Objectives of the product design and development
• Scope of the product design and development
• Drivers of the product design and development
• Product design and development process
• Tools for the product design and development
• Results of the product design and development
• Decision making process in transition to
production

© 2014 Pearson Education, Inc. 5-2


LEARNING OBJECTIVES

After completion of this topic, the learners would be able to:


• Understand basic concepts, objectives, scopes and
drivers of the product design and development
• Understand the ways to organize the product design and
development
• Understand the product design and development process
• Use tools for the product design and development
• Make decisions on transitions to production

© 2014 Pearson Education, Inc. 5-3


BASIC CONCETPS OF PRODUCT DESIGN AND DEVELOPMENT
Product
• Product is anything that can be offered to a market to
satisfy the needs or wants of the customer
• Product is a tangible item produced to create specific
value for a group of customers and to the organization
that provides it
• Product refers to a good or service that satisfies the needs
and wants of customers.
• Product can be defined as- “A good, idea, method,
information, object, or service that is the end result of a
process and serves as a need or want satisfier
• Product is a tangible item that is produced by an industrial
process for sale

© 2014 Pearson Education, Inc. 5-4


BASIC CONCETPS OF PRODUCT DESIGN AND DEVELOPMENT

Product design
• Product design describes the process of imagining,
creating, and iterating products that solve users’ problems
or address specific needs in a given market.
• Product design is the process of identifying a market
opportunity, clearly defining the problem, developing a
proper solution for that problem and validating the
solution with real users
• Product design is the process of developing a usable
product that meets customer's needs by defining the
users' problems and finding creative solutions for these
problems

© 2014 Pearson Education, Inc. 5-5


BASIC CONCETPS OF PRODUCT DESIGN AND DEVELOPMENT

Product development
• The product development is the process of converting an
idea into a functioning and complete product for an end-
user.
• Product development also known as new product
development or management, is a sequential order of
steps which involves the idea generation, screening,
designing, developing and marketing of newly produced
or newly rebranded products.
• Product development is the process of creating or
improving a new product, including its design, testing, and
release. The product lifecycle may also include controlling
cost, quality, and time to market by improving
manufacturing or distribution processes

© 2014 Pearson Education, Inc. 5-6


PRODUCT DEVELOPMENT STAGES

Concept

Feasibility

Customer Requirements

Scope of Functional Specifications


product
development Product Specifications Scope for
team design and
Design Review engineering
teams
Test Market

Introduction

Evaluation

© 2014 Pearson Education, Inc. 5-7


OBJECTIVES OF THE PRODUCT DESIGN AND DEVELOPMENT

• Contribution to the firm’s success through gaining profit


and competitive advantages by creating a product with
excellent functional utility at acceptable cost and within
reasonable time
• Contribution to sustainable development through
minimizing negative impacts on people and environment
(reducing pollution and accidents) and saving natural
resources for the future generations (reducing materials
and energy)

© 2014 Pearson Education, Inc. 5-8


SCOPE OF THE PRODUCT DESIGN AND DEVELOPMENT

• Design and development for both:


- Product
➢ Appearance, shape, size
➢ Materials
➢ Specifications, etc.
- Processes employed to make the product:
➢ Processing procedures (Operation sheets,
Operation routings)
➢ Assembling procedures
➢ Machine and equipment
➢ Layouts

© 2014 Pearson Education, Inc. 5-9


SCOPE OF THE PRODUCT DESIGN AND DEVELOPMENT

• The design and development activities are involved in


whole product life cycle:
Introduction Growth Maturity Decline
Product design and Forecasting critical Standardization Little product
development Product and Fewer product differentiation
critical process reliability changes, more Cost
OM Strategy/Issues

Frequent product Competitive minor changes minimization


and process product Optimum capacity Overcapacity in
design changes improvements and the industry
Increasing stability
Short production options of process Prune line to
runs Increase capacity eliminate items
Long production
High production Shift toward runs not returning
costs product focus good margin
Product
Limited models Enhance improvement and Reduce
Attention to quality distribution cost cutting capacity

© 2014 Pearson Education, Inc. 5 - 10


DRIVERS FOR PRODUCT DESIGN AND DEVELOPMENT

• Customer’s demand
• Economic change
• Sociological and Demographic change
• Technological change
• Political and legal change
• Market practice, professional standards,
suppliers, distributors

© 2014 Pearson Education, Inc. 5 - 11


ORGANIZING FOR PRODUCT DEVELOPMENT

• Traditionally – distinct departments


► Duties and responsibilities are defined
► Difficult to foster forward thinking

• A Champion
► Product manager drives the product through the
product development system and related
organizations

© 2014 Pearson Education, Inc. 5 - 12


ORGANIZING FOR PRODUCT DEVELOPMENT

• Team approach
► Cross functional – representatives from all
disciplines or functions
► Product development teams, design for
manufacturability teams, value engineering teams

• Japanese “whole organization” approach


► No organizational divisions

© 2014 Pearson Education, Inc. 5 - 13


PRODUCT DESIGN PROCESS

• A design process can be defined as a sequence of steps that


are followed by a product team to develop a design solution
• The general process of design is characterized as an iterative
process consisting of six steps: (1) recognition of need, (2)
problem definition, (3) synthesis, (4) analysis and optimization,
(5) evaluation, and (6) presentation
Recognition of need

Problem definition

Synthesis

Analysis and optimization

Evaluation

Presentation

© 2014 Pearson Education, Inc. 5 - 14


PRODUCT DESIGN PROCESS
• (1) Recognition of need: involves the realization by someone
that a problem exists which could be solved by a thoughtful
design. This recognition might mean identifying some
deficiency in a current machine design by an engineer or
perceiving some new product opportunity by a salesperson.
• (2) Problem definition: involves a thorough specification of the
item to be designed. This specification includes the physical
characteristics, function, cost, quality, and operating
performance
• (3) Synthesis and (4) analysis are closely related and highly
interactive. Consider the development of a certain product
design: Each of the subsystems of the product must be
conceptualized by the designer, analyzed, improved through
this analysis procedure, redesigned, analyzed again, and so on.
The process is repeated until the design has been optimized
within the constraints imposed on the designer. The individual
components are then synthesized and analyzed into the final
product in a similar manner

© 2014 Pearson Education, Inc. 5 - 15


PRODUCT DESIGN PROCESS

• (5) Evaluation: is concerned with measuring the design against


the specifications established in the problem definition phase.
This evaluation often requires the fabrication and testing of a
prototype model to assess operating performance, quality,
reliability, and other criteria.
• (6) Presentation: is concerned with documenting the design by
means of drawings, material specifications, assembly lists, and
so on. In essence, documentation means that the design
database is created

© 2014 Pearson Education, Inc. 5 - 16


TOOLS ANH TECHNIQUES FOR PRODUCT DESIGN AND DEVELOPMENT

• Computer-aided design (CAD)


• Quality Function Deployment
• Robust design
• Modular design
• Virtual reality technology
• Value analysis
• Sustainability and Life Cycle Assessment (LCA)

© 2014 Pearson Education, Inc. 5 - 17


COMPUTER-AIDED DESIGN (CAD)
• CAD is the technology concerned with the use of
computer systems to assist the creation, modification,
analysis and optimization of a design.

• CAD Systems are powerful tools and are used in the


mechanical design and geometric modelling of products
and components

• CAD is defined as any design activity that involves the


effective use of computer systems to create, modify,
analyze, optimize, and document an engineering design.
CAD is most commonly associated with the use of an
interactive computer graphics system, referred to as a
CAD system

© 2014 Pearson Education, Inc. 5 - 18


COMPUTER-AIDED DESIGN (CAD)

• Reasons for implementing CAD:


- To increase the productivity of the designer

- To improve the quality of the design

- To improve communications

- To create a database for engineering

© 2014 Pearson Education, Inc. 5 - 19


COMPUTER-AIDED DESIGN (CAD)

Role of CAD in the product design process

Recognition of need

Problem definition
CAD
Synthesis Geometric modelling

Analysis and optimization Engineering analysis

Evaluation Design review &


Evaluation

Presentation Automated drafting

© 2014 Pearson Education, Inc. 5 - 20


COMPUTER-AIDED DESIGN (CAD)
• Geometric modelling:
- Geometric modeling involves the use of a CAD system to
develop a mathematical description of the geometry of an
object. The mathematical description, called a geometric
model, is contained in computer memory.

- This permits the user of the CAD system to display an


image of the model on a graphics terminal and to perform
certain operations on the model. These operations
include creating new geometric models from basic
building blocks available in the system, moving and
reorienting the images on the screen, zooming in on
certain features of the image, and so forth.

- These capabilities permit the designer to construct a


model of a new product (or its components) or to modify
an existing model.
© 2014 Pearson Education, Inc. 5 - 21
COMPUTER-AIDED DESIGN (CAD)
• Geometric modeling:
- 2-D models are best utilized for designing flat objects and
building layouts.

© 2014 Pearson Education, Inc. 5 - 22


COMPUTER-AIDED DESIGN (CAD)
• Geometric modeling:
- 3-D models are capable of modeling an object in three
dimensions according to user instructions. This is helpful
in conceptualizing the object since the true 3-D model can
be displayed in various views and from different angles.

© 2014 Pearson Education, Inc. 5 - 23


COMPUTER-AIDED DESIGN (CAD)
Geometric modeling:
- A wire-frame model uses interconnecting lines (straight line
segments) to depict the object
➢ Very suitable for engineering applications.
➢ Simplest 3D Model - easy to construct.
➢ Easy to clip and manipulate.
➢ Not suitable for building realistic models

© 2014 Pearson Education, Inc. 5 - 24


COMPUTER-AIDED DESIGN (CAD)
• Geometric modeling:
- Surface model: The surface model is built up by drawing
the surfaces of an object. Like adding the canvass onto
the frame of a tent

© 2014 Pearson Education, Inc. 5 - 25


COMPUTER-AIDED DESIGN (CAD)
Geometric modeling:
- Solid model: The solid model is built up by using simple
geometric forms or extrusions - such as cuboids,
cylinders & prisms. These can be added or subtracted to
produce complex 3D models

© 2014 Pearson Education, Inc. 5 - 26


COMPUTER-AIDED DESIGN (CAD)
• Engineering analysis:
- Engineering analysis must often be performed as part of the
design process after a particular design alternative has been
developed
- The analysis may take the form of stress–strain calculations,
heat transfer analysis, or dynamic simulation.
- The availability of software for engineering analysis on a CAD
system is computer-aided engineering (CAE).

© 2014 Pearson Education, Inc. 5 - 27


COMPUTER-AIDED DESIGN (CAD)
• Design Evaluation and Review:
- Automatic dimensioning. These routines determine precise
distance measures between surfaces on the geometric
model identified by the user.
- Error checking. This term refers to CAD algorithms that are
used to review the accuracy and consistency of
dimensions and tolerances and to assess whether the
proper design documentation format has been followed.
- Animation of discrete-event simulation solutions. Discrete-
event simulation was described earlier in the context of
engineering analysis. Displaying the solution of the
discrete-event simulation in animated graphics is a helpful
means of presenting and evaluating the solution. Input
parameters, probability distributions, and other factors can
be changed to assess their effect on the performance of the
system being modeled.

© 2014 Pearson Education, Inc. 5 - 28


COMPUTER-AIDED DESIGN (CAD)
• Automated drafting:
- Technical design document (calculation results,
specifications, tolerance, bills of materials, etc.)

- Technical drawings (2-D and 3-D)

- Processing procedures (operation sheet, route sheets)

- Assembling procedures (Assembly drawings,


specifications)

© 2014 Pearson Education, Inc. 5 - 29


QUALITY FUNCTION DEPLOYMENT TECHNIQUE

1. Identify customer wants


2. Identify how the product will satisfy customer wants
3. Relate customer wants to product hows
4. Identify relationships between the firm’s hows
5. Develop customer importance ratings
6. Evaluate competing products
7. Compare performance to desirable technical attributes

© 2014 Pearson Education, Inc. 5 - 30


QUALITY FUNCTION DEPLOYMENT - HOUSE OF QUALITY
House of Quality (HOQ) refers to a well-known process for product
development taking customers requirements, competing products
and company’s ability into consideration

Interrelationships
Customer
importance How to satisfy
ratings customer wants

assessment
Competitive
What the Relationship
customer matrix
wants

Target values Weighted


rating
Technical
evaluation
© 2014 Pearson Education, Inc. 5 - 31
HOUSE OF QUALITY EXAMPLE

You are required to design a new camera using House of


Quality

© 2014 Pearson Education, Inc. 5 - 32


HOUSE OF QUALITY EXAMPLE
Interrelationships

How to Satisfy
Customer Wants

Competitors
Analysis of
What the
Customer Relationship
Wants Matrix

What the Technical


customer Attributes and
Evaluation
wants
Customer
importance
Lightweight 3 rating
Easy to use 4 (5 = highest)
Reliable 5
Easy to hold steady 2
High resolution 1

© 2014 Pearson Education, Inc. 5 - 33


HOUSE OF QUALITY EXAMPLE
Interrelationships

How to Satisfy
Customer Wants

Competitors
Analysis of
What the Customer
Wants Relationship
Matrix

Technical
Attributes and
Low electricity requirements

Evaluation
Aluminum components

High number of pixels

Ergonomic design How to Satisfy


Auto exposure

Customer Wants
Auto focus

© 2014 Pearson Education, Inc. 5 - 34


HOUSE OF QUALITY EXAMPLE Interrelationships
How to Satisfy
Customer Wants

Competitors
Analysis of
What the
High relationship = 5 Customer
Relationship
Matrix
Wants
Medium relationship = 3
Low relationship = 1 Technical
Attributes and
Evaluation

Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
High resolution 1

Relationship matrix

© 2014 Pearson Education, Inc. 5 - 35


HOUSE OF QUALITY EXAMPLE
Interrelationships
How to Satisfy
Customer Wants

Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants

Technical
Attributes and
Evaluation
Relationships between
the things we can do
Low electricity requirements

Aluminum components

High number of pixels

Ergonomic design
Auto exposure
Auto focus

© 2014 Pearson Education, Inc. 5 - 36


Interrelationships

HOUSE OF QUALITY EXAMPLE How to Satisfy


Customer Wants

Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants

Technical
Attributes and
Evaluation

Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
High resolution 1

Our importance ratings 22 3 27 27 32 25

Weighted rating

© 2014 Pearson Education, Inc. 5 - 37


Interrelationships HOUSE OF QUALITY EXAMPLE G= Good
How to Satisfy
Customer Wants F = Fair
P = poor

Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants

Company B
Company A
Technical
Attributes and
Evaluation

How well do competing


products meet customer
wants
Lightweight 3 G P
Easy to use 4 G P
Reliable 5 F G
Easy to hold steady 2 G P
High resolution 1 P P

Our importance ratings 22 5

© 2014 Pearson Education, Inc. 5 - 38


Interrelationships
How to Satisfy
Customer Wants
HOUSE OF QUALITY EXAMPLE

Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants

Technical
Attributes and
Evaluation

Failure 1 per 10,000

Panel ranking
Target values

2 circuits
(Technical
attributes)

2’ to ∞
0.5 A

Company A 0.7 75%


60% yes 1 ok G
Technical
evaluation Company B 0.6 50% yes 2 ok F

US 0.5 75% yes 2 ok G


© 2014 Pearson Education, Inc. 5 - 39
HOUSE OF QUALITY EXAMPLE

Low electricity requirements

Aluminum components

High number of pixels


Completed House

Ergonomic design
of Quality

Auto exposure

Company A

Company B
Auto focus
Lightweight 3 G P
Easy to use 4 G P
Reliable 5 F G
Easy to hold steady 2 G P
High resolution 1 P P
Our importance ratings 22 9 27 27 32 25

Failure 1 per 10,000


Panel ranking
Target values
(Technical

2 circuits
attributes)

2’ to ∞
0.5 A
75%
Company A 0.7 60% yes 1 ok G
Technical
evaluation Company B 0.6 50% yes 2 ok F
© 2014 Pearson Education, Inc. Us 0.5 75% yes 2 ok G5 - 40
HOUSE OF QUALITY SEQUENCE

• Deploying resources through the organization in response to


customer requirements

Quality
plan
Production
process

Production
Specific

process
components House

components
4

Specific
Design House
characteristics

characteristics
3
House
Design
requirements

2
Customer

House
1

Figure 5.4
© 2014 Pearson Education, Inc. 5 - 41
ROBUST DESIGN
• Robust Design Methodology is a systematic search for
design solutions insensitive to variation in usage,
manufacturing and deterioration of products as well as
to varying system environments.
• In robust design, product is designed so that small
variations in production, assembly and usage do not
adversely affect the product
• Robust design is making the design insensitive to
unavoidable variation and is handled by (i) identification
and classification of variation, (ii) design of experiments
to find robust solutions, and (iii) statistically based
estimations of proper safety margins.
• Robust design typically results in lower cost and higher
quality

© 2014 Pearson Education, Inc. 5 - 42


ROBUST DESIGN

© 2014 Pearson Education, Inc. 5 - 43


MODULAR DESIGN

• Modular design, is a design principle that subdivides a


system into smaller parts called modules which can be
independently created, modified, replaced, or exchanged
with other modules or between different systems.
• A modular design is an approach for product designing
which is used to produce a complete product by integrating
or combining smaller parts that are independent of each
other.
• Modular design adds flexibility to both production and
marketing
• Modular design helps improving ability to satisfy customer
requirements

© 2014 Pearson Education, Inc. 5 - 44


MODULAR DESIGN

© 2014 Pearson Education, Inc. 5 - 45


GROUP TECHNOLOGY

• Parts grouped into families with similar characteristics

• Coding system describes processing and physical


characteristics

• Part families can be produced


in dedicated manufacturing cells

© 2014 Pearson Education, Inc. 5 - 46


GROUP TECHNOLOGY

Groups technology example

(b) Grouped Cylindrical Parts (families of parts)


(a) Ungrouped Parts
Grooved Slotted Threaded Drilled Machined

Figure 5.10
© 2014 Pearson Education, Inc. 5 - 47
GROUP TECHNOLOGY

Group Technology Benefits


1. Improved design (make use of the existing product 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-in-process, and
production time

© 2014 Pearson Education, Inc. 5 - 48


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

© 2014 Pearson Education, Inc. 5 - 49


VALUE ANALYSIS

• Focuses on design improvement during production


• Seeks improvements leading either to a better product or a
product which can be produced more economically with
less environmental impact

© 2014 Pearson Education, Inc. 5 - 50


VALUE ANALYSIS

• Benefits:
1. Reduced complexity of the product
2. Reduction of environmental impact
3. Additional standardization of components
4. Improvement of functional aspects of the product
5. Improved job design and job safety
6. Improved maintainability (serviceability) of the product
7. Robust design

© 2014 Pearson Education, Inc. 5 - 51


COST REDUCTION OF A BRACKET VIA VALUE ENGINEERING

Figure 5.5

© 2014 Pearson Education, Inc. 5 - 52


SUSTAINABILITY AND LIFE CYCLE ASSESSMENT (LCA)

• Sustainability means meeting the needs of the present


without compromising the ability of future generations
to meet their needs
• LCA is a formal evaluation of the environmental impact
of a product

© 2014 Pearson Education, Inc. 5 - 53


PRODUCT DEVELOPMENT CONTINUUM

• Product life cycles are becoming shorter and the rate


of technological change is increasing

• Developing new products faster can result in a


competitive advantage

• Time-Based Competition

© 2014 Pearson Education, Inc. 5 - 54


PRODUCT DEVELOPMENT CONTINUUM

External Development Strategies


Alliances
Joint ventures
Purchase technology or expertise
by acquiring the developer

Internal Development Strategies


Migrations of existing products
Enhancements to existing products
New internally developed products

Internal Cost of product development Shared


Lengthy Speed of product development Rapid and/
or Existing
High Risk of product development Shared

© 2014 Pearson Education, Inc. 5 - 55


PRODUCT DEVELOPMENT CONTINUUM

• Purchasing technology by acquiring a firm


► Speeds development
► Issues concern the fit between the acquired
organization and product and the host
• Joint Ventures
► Both organizations learn
► Risks are shared

© 2014 Pearson Education, Inc. 5 - 56


PRODUCT DEVELOPMENT CONTINUUM

• Through Alliances
► Cooperative agreements between independent
organizations

► Useful when technology is developing

► Reduces risks

© 2014 Pearson Education, Inc. 5 - 57


RESULTS OF THE PRODUCT DESIGN AND DEVELOPMENT

• Product documents
• Technical specifications
• Engineering drawings
• Bill of materials (BOM)
• Assembly drawing
• Assembly chart
• Route sheet
• Work order
• Engineering change notices (ECNs)

© 2014 Pearson Education, Inc. 5 - 58


RESULTS OF THE PRODUCT DESIGN AND DEVELOPMENT

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

© 2014 Pearson Education, Inc. 5 - 59


RESULTS OF THE PRODUCT DESIGN AND DEVELOPMENT

Engineering drawings

© 2014 Pearson Education, Inc. 5 - 60


RESULTS OF THE PRODUCT DESIGN AND DEVELOPMENT

BOM for a Panel Weldment


Bill of Materials (BOM)

NUMBER DESCRIPTION QTY


A 60-71 PANEL WELDM’T 1
A 60-7 LOWER ROLLER ASSM. 1
R 60-17 ROLLER 1
R 60-428 PIN 1
P 60-2 LOCKNUT 1
A 60-72 GUIDE ASSM. REAR 1
R 60-57-1 SUPPORT ANGLE 1
A 60-4 ROLLER ASSM. 1
02-50-1150 BOLT 1
A 60-73 GUIDE ASSM. FRONT 1
A 60-74 SUPPORT WELDM’T 1
R 60-99 WEAR PLATE 1
02-50-1150 BOLT 1

© 2014 Pearson Education, Inc. 5 - 61


RESULTS OF THE PRODUCT DESIGN AND DEVELOPMENT

Assembly Drawing
• Shows exploded view of
product
• Details relative locations to
show how to assemble the
product

© 2014 Pearson Education, Inc. 5 - 62


RESULTS OF THE PRODUCT DESIGN AND DEVELOPMENT

R 209 Angle Assembly Chart


1
Left
R 207 Angle SA bracket A1 Identifies the point of
2 1 assembly
Bolts w/nuts (2) production where
3 components flow into
R 209 Angle subassemblies and
4
Right ultimately into the final
R 207 Angle SA bracket product
5 A2
2 assembly
Bolts w/nuts (2)
6
Bolt w/nut
7
R 404 Roller
8 A3
Lock washer Poka-yoke
9 inspection
Part number tag
10 A4
Box w/packing material
11 A5

© 2014 Pearson Education, Inc. 5 - 63


RESULTS OF THE PRODUCT DESIGN AND DEVELOPMENT

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

Setup Operation
Process Machine Operations Time Time/Unit
1 Auto Insert 2 Insert Component 1.5 .4
Set 56
2 Manual Insert Component .5 2.3
Insert 1 Set 12C
3 Wave Solder Solder all 1.5 4.1
components
to board
4 Test 4 Circuit integrity .25 .5
test 4GY

© 2014 Pearson Education, Inc. 5 - 64


RESULTS OF THE PRODUCT DESIGN AND DEVELOPMENT

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 Delivery
Dept Location

F32 Dept K11

© 2014 Pearson Education, Inc. 5 - 65


RESULTS OF THE PRODUCT DESIGN AND DEVELOPMENT

Engineering Change Notice (ECN)


• A correction or modification to a product’s definition or
documentation
► Engineering drawings
► Bill of material

Quite common with long product life cycles, long


manufacturing lead times, or rapidly changing technologies

© 2014 Pearson Education, Inc. 5 - 66


RESULTS OF THE PRODUCT DESIGN AND DEVELOPMENT

Configuration Management
• The need to manage ECNs has led to the development of
configuration management systems
• A product’s planned and changing components are
accurately identified and control and accountability for
change are identified and maintained

© 2014 Pearson Education, Inc. 5 - 67


RESULTS OF THE PRODUCT DESIGN AND DEVELOPMENT

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

© 2014 Pearson Education, Inc. 5 - 68


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

© 2014 Pearson Education, Inc. 5 - 69


APPLICATION OF DECISION TREES TO PRODUCT DESIGN

Procedure

1. Include all possible alternatives and states of nature


- including “doing nothing”
2. Enter payoffs at the end of branch
3. Determine the expected value of each branch and
“prune” the tree to find the alternative with the best
expected value

© 2014 Pearson Education, Inc. 5 - 70


DECISION TREE EXAMPLE

(.4)
Purchase CAD High sales

(.6) Low sales

Hire and train engineers

(.4)
High sales

(.6)
Low sales
Do nothing

© 2014 Pearson Education, Inc. 5 - 71


DECISION TREE EXAMPLE

$2,500,000 Revenue
(.4) – 1,000,000 Mfg cost ($40 x 25,000)
Purchase CAD High sales – 500,000 CAD cost
$1,000,000 Net

$800,000 Revenue
(.6) Low sales – 320,000 Mfg cost ($40 x 8,000)
– 500,000 CAD cost
Hire and train engineers – $20,000 Net loss

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

(.6)
Low sales
Do nothing

© 2014 Pearson Education, Inc. 5 - 72


DECISION TREE EXAMPLE

$2,500,000 Revenue
(.4) – 1,000,000 Mfg cost ($40 x 25,000)
Purchase CAD – 500,000 CAD cost
$388,000 High sales
$1,000,000 Net

$800,000 Revenue
(.6) Low sales – 320,000 Mfg cost ($40 x 8,000)
– 500,000 CAD cost
Hire and train engineers – $20,000 Net loss

(.4)
High sales
EMV (purchase CAD system) = (.4)($1,000,000) + (.6)(– $20,000)
= $388,000
(.6)
Low sales
Do nothing

© 2014 Pearson Education, Inc. 5 - 73


DECISION TREE EXAMPLE

$2,500,000 Revenue
(.4) – 1,000,000 Mfg cost ($40 x 25,000)
Purchase CAD – 500,000 CAD cost
$388,000 High sales
$1,000,000 Net

$800,000 Revenue
(.6) Low sales – 320,000 Mfg cost ($40 x 8,000)
– 500,000 CAD cost
Hire and train engineers – $20,000 Net loss
$365,000
$2,500,000 Revenue
(.4) – 1,250,000 Mfg cost ($50 x 25,000)
High sales – 375,000 Hire and train cost
$875,000 Net

$800,000 Revenue
(.6) – 400,000 Mfg cost ($50 x 8,000)
Low sales – 375,000 Hire and train cost
Do nothing $0 $25,000 Net

$0 Net
© 2014 Pearson Education, Inc. 5 - 74
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

© 2014 Pearson Education, Inc. 5 - 75


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

© 2014 Pearson Education, Inc. 5 - 76

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