BA 105: Operations

Management

BA 105: Operations
Management

Product Design and

Process Selection –
Manufacturing

Erik Paolo Capistrano

1 Product Design and Process Selection – Manufacturing
 BA 105: Operations
Product Design Management

Integrated Approach: Product Development

Customer Detailed
Benefit Product and
Package Process
Design Design
Understanding
Product
Competitive
Priorities
New Product Development
Development

Strategic and Market

Market Deployment
Analysis
Strategic
Mission and Marketplace
Vision Evaluation
Erik Paolo Capistrano
2 Product Design and Process Selection – Manufacturing
 BA 105: Operations
Product Design Management

Marketing Perspective: Product Development

Marketing Business
Strategy Analysis

Concept Product
Development New Product Development
and Testing
Development

Idea Test
Screening Marketing

Idea Commercialization
Generation
Erik Paolo Capistrano
3 Product Design and Process Selection – Manufacturing
 BA 105: Operations
Product Design Management

Marketing Strategy Issues

• Technology evolution
• Competition
• Return on investment
• Customer support
• Available resources

• But take note that every design project is a series of

tradeoffs to be managed (technology-functionality;
ambition-affordability; desires-needs, etc.)
Erik Paolo Capistrano
4 Product Design and Process Selection – Manufacturing
 BA 105: Operations
Product Design Management

Managing the New Product Development

• Built-in instability
• Self-organizing project teams
• Overlapping development phases
• Multilearning
• Subtle control
• Organizational transfer of learning

Erik Paolo Capistrano

5 Product Design and Process Selection – Manufacturing
 BA 105: Operations
Product Design Management

Types of Development Projects

• R&D / Advanced Development Projects
• Alliance or Partnered Projects
• Incremental or Derivative Projects
• Breakthrough or Radical Projects
• Platform or Next-Generation Projects

Erik Paolo Capistrano

6 Product Design and Process Selection – Manufacturing
 BA 105: Operations
Product Design Management

Concurrent Engineering
• The simultaneous development of project design
functions, with open and interactive communication
existing among all team members for the purposes of
reducing time to market, decreasing cost, and
improving quality and reliability.

Erik Paolo Capistrano

7 Product Design and Process Selection – Manufacturing
 BA 105: Operations
Product Design Management

Designing for the Customer

House of Quality

Ideal
Quality Function Customer Value Analysis/
Deployment Product Value Engineering

Erik Paolo Capistrano

8 Product Design and Process Selection – Manufacturing
Designing for the Customer BA 105: Operations
Management

Quality Function Deployment

• Interfunctional teams from marketing, design
engineering, and manufacturing
• Voice of the Customer (Market Research)
• House of Quality
• Customer requirements – design capabilities – supply
chain characteristics – production capabilities – quality

Erik Paolo Capistrano

9 Product Design and Process Selection – Manufacturing
Market Information Systems BA 105: Operations
Management
Marketing Managers
Analysis Planning Implementation Organization Control

Marketing Information System

Developing Needed Information

Assessing Internal Information Distributing
Information Databases Analysis Information
Needs

Marketing Marketing
Intelligence Research

Target Marketing Environment Macroenvironment

Marketing
Market Channels Competitors Publics Forces

Erik Paolo Capistrano

10 Product Design and Process Selection – Manufacturing
Designing for the Customer
House of Quality
Designing for the Customer
Correlation:
X Strong positive
Positive
X X
House of Quality X X
X
*
Negative
Strong negative

Water resistance
Accoust. Trans.
Energy needed

Energy needed
Engineering

to close door

to open door
Competitive evaluation

resistance

Check force
Door seal
Characteristics
X = Us

on level

Window
ground
A = Comp. A
Customer B = Comp. B
Requirements (5 is best)
1 2 3 4 5
Easy to close 7 X AB

Stays open on a hill 5 X AB

Easy to open 3 XAB

Doesn’t leak in rain 3 A XB

No road noise 2 X A B
Importance weighting 10 6 6 9 2 3 Relationships:
level to 7.5 ft/lb
Reduce energy

Reduce energy
Strong = 9
Reduce force

current level
current level

current level
Medium = 3
to 7.5 ft/lb.
Target values

Maintain
Maintain

Maintain
Small = 1
to 9 lb.

5 BA BA
B B BXA X
Technical evaluation 4 X B
(5 is best) 3 A A X
2 X A
1 X
Designing for the Customer BA 105: Operations
Management

Value Analysis / Value Engineering (VA/VE)

• Achieve equivalent or better performance at a lower
cost while maintaining all functional requirements
defined by the customer.
 Does the item have any design features that are not
necessary?
 Can two or more parts be combined into one?
 How can we cut down the weight?
 Are there nonstandard parts that can be
eliminated?

Erik Paolo Capistrano

13 Product Design and Process Selection – Manufacturing
Design for Manufacturability BA 105: Operations
Management

Value Analysis / Value Engineering (VA/VE)

(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

Erik Paolo Capistrano

14 Product Design and Process Selection – Manufacturing
Design for Manufacturability BA 105: Operations
Management

Manufacturability and Assembly

• Greatest improvements related to design for
manufacturability and assembly arise from simplification
of the product by reducing the number of separate
parts:
 During the operation of the product, does the part
move relative to all other parts already assembled?
 Must the part be of a different material or be
isolated from other parts already assembled?
 Must the part be separate from all other parts to
allow the disassembly of the product for adjustment
or maintenance?
Erik Paolo Capistrano
15 Product Design and Process Selection – Manufacturing
 BA 105: Operations
Process Selection Management

Types of Processes
• Conversion
 Changing iron ore into steel sheets or making
toothpaste.

• Fabrication
 Making the steel sheets into car fenders forming
gold into a crown for a tooth.

Erik Paolo Capistrano

16 Product Design and Process Selection – Manufacturing
 BA 105: Operations
Process Selection Management

Types of Processes
• Assembly
 Assembling the fender into the car, packaging the
toothpaste, fastening the dental crown on a
patient’s tooth.

• Testing
 Not a fundamental process but has grown to be an
essential stand-alone major activity.
 Safety tests for the assembled car.

Erik Paolo Capistrano

17 Product Design and Process Selection – Manufacturing
 BA 105: Operations
Process Selection Management

Process Flow Structure

• Job Shop
 Production of small batches of a large number of
different products.
 Requires a different set of steps for each batch.
• Batch Shop
 A standardized job shop for a relatively stable line
of products.
 Produced in periodic batches either for customer
order or for inventory.

Erik Paolo Capistrano

18 Product Design and Process Selection – Manufacturing
 BA 105: Operations
Process Selection Management

Process Flow Structure

• Assembly Line
 Production of discrete parts moving from
workstation to workstation at a controlled rate.

• Continuous Flow
 Continuous assembly lines.
 Highly automated structures constituting one
integrated “machine” to work 24/7.

Erik Paolo Capistrano

19 Product Design and Process Selection – Manufacturing
Product-Process Matrix BA 105: Operations
Management
Few High
Low Multiple Major Volume,
Volume, Products, Products, High
One of a Low Higher Standard-
Kind Volume Volume ization

I. Commercial Flexibility (High)

Job Printer, Unit Cost (High)
Shop French Restaurant

II. Heavy
Batch Equipment,
Coffee Shop
III.
Assembly Automobile
Line Assembly,
Burger King
IV. Flexibility (Low)
Continuous Sugar Unit Cost (Low)
Flow Refinery
Erik Paolo Capistrano
20 Product Design and Process Selection – Manufacturing
 BA 105: Operations
Process Selection Management

Virtual Factory
• A manufacturing operation where activities are carried
out not in one central plant, but in multiple locations
by suppliers and partner firms as part of a strategic
alliance.

Erik Paolo Capistrano

21 Product Design and Process Selection – Manufacturing
 BA 105: Operations
Process Selection Management

Process Flow Design

• A mapping of the specific processes that raw materials,
parts, and subassemblies follow as they move through
a plant.
• The most common tools to conduct a process flow
design include assembly drawings, assembly charts,
and operation and route sheets.

Erik Paolo Capistrano

22 Product Design and Process Selection – Manufacturing
 BA 105: Operations
Process Flow Management

Assembly Chart Example

Lockring
4
Spacer, detent spring
5
SA-2 A-2
Rivets (2)
6
Spring-detent
7
A-5
Component/Assembly Operation

Inspection
Erik Paolo Capistrano
23 Product Design and Process Selection – Manufacturing
 BA 105: Operations
Process Flow Management

Process Flowchart
Material Inspect No,
Received
Material for Continue…
from
Supplier Defects Defects
found?

Yes

Return to
Supplier
for Credit

Erik Paolo Capistrano

24 Product Design and Process Selection – Manufacturing
 BA 105: Operations
Global Strategies Management

Joint Ventures
• An arrangement in which two companies provide the
assets and other expertise to a third company and
share the profits.

Global Product Design Strategy

• Developing a set of standard modules common to all
units sold globally.
• Leaning towards standardization of products sold
globally but still leaves enough room for local
customization and conversion.

Erik Paolo Capistrano

25 Product Design and Process Selection – Manufacturing
Development Performance BA 105: Operations
Management

Time-to-Market
• Measures the frequency of new product introductions,
the time from initial product conception to market
introduction, and the percentage of sales of the new
product.
• It impacts on the responsiveness of customers and
competition and the quality of design.

Erik Paolo Capistrano

26 Product Design and Process Selection – Manufacturing
Development Performance BA 105: Operations
Management

Productivity
• Measures the engineering hours per project, and the
cost of materials and tooling per project.
• It impacts on the number and frequency (economies of
development) of projects.

Quality
• Measures the reliability of use (conformance), and the
performance and customer satisfaction (design).
• It impacts on the reputation (customer loyalty), the
market share, and the profitability.
Erik Paolo Capistrano
27 Product Design and Process Selection – Manufacturing