Design of Products

Dr. R K Singh

4–1
 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

4–2
Product Strategy Options

 Differentiation
 Low cost
 Rapid response

4–3
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
4–4
Importance of New Products
Percentage of Sales from New Products
50%

40%

30%

20%

10%

Industry Top Middle Bottom

leader third third third
Position of Firm in Its Industry
4–5
 Product Life Cycles

 May be any length from a few

hours to decades
 The operations function must
be able to introduce new
products successfully

4–6
 Product Life Cycles

Cost of development and production

Sales, cost, and cash flow

Sales revenue
Net revenue (profit)

Cash
flow

Negative
cash flow Loss

Introduction Growth Maturity Decline

4–7
 Product Development
System
Ideas

Ability

Customer Requirements

Functional Specifications

Scope of Product Specifications Scope for

product design and
Design Review engineering
development teams
team Test Market

Introduction

Evaluation
4–8
 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 firm’s hows
 Develop importance ratings
 Evaluate competing products
 Compare performance to desirable technical
attributes
4–9
QFD House of Quality
Interrelationships
Customer
importance
How to satisfy
ratings
customer wants

Competitive
assessment
What the Relationship
customer matrix
wants

Target values 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

How to Satisfy
Customer Wants

Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants

Technical
What the Attributes and
Evaluation

customer
wants Customer
importance
rating
(5 = highest)
Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
Color correction 1

4 – 12
 Interrelationships

House of Quality Example

How to Satisfy
Customer Wants

Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants

Technical
Low electricity requirements
Attributes and
Evaluation

Aluminum components

Ergonomic design
Auto exposure
How to Satisfy
Customer Wants
Paint pallet
Auto focus

4 – 13
 Interrelationships

House of Quality Example

How to Satisfy
Customer Wants

Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants

High relationship Technical

Attributes and
Evaluation

Medium relationship
Low relationship

Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
Color corrections 1

Relationship matrix
4 – 14
 Interrelationships

House of Quality Example

How to Satisfy
Customer Wants

Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants

Technical
Attributes and
Evaluation

Low electricity requirements

Relationships
between the
things we can do

Aluminum components

Ergonomic design
Auto exposure

Paint pallet
Auto focus

4 – 15
 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
Color corrections 1
Our importance ratings 22 9 27 27 32 25

Weighted
rating
4 – 16
 Interrelationships

How to Satisfy
Customer Wants

House of Quality Example

Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants

Technical
Attributes and

Company B
Company A
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
Color corrections 1 P P
Our importance ratings 22 5
4 – 17
 Interrelationships

How to Satisfy
Customer Wants

House of Quality Example

Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants

Technical
Attributes and

Failure 1 per 10,000

Evaluation

Panel ranking
Target

2 circuits
values
(Technical

2’ to ∞
0.5 A
attributes)

75%
Company A 0.7 60% yes 1 ok G
Technical
evaluation Company B 0.6 50% yes 2 ok F
Us 0.5 75% yes 2 ok G
4 – 18
House of Quality Example

Low electricity requirements

Aluminum components

Ergonomic design
Auto exposure

Company A

Company B
Paint pallet
Auto focus
Completed
Lightweight 3 G P
House of Easy to use 4 G P

Quality Reliable
Easy to hold steady 2
5 F G
G P
Color correction 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
Company B 0.6 50% yes 2 ok F
evaluation
Us 0.5 75% yes 2 ok G
4 – 19
 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

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 Cause of Effect of Corrective
Mode Failure Failure Action
Stale moisture content tastes bad Adjust moisture
expired shelf life won’t crunch  cure longer
poor packaging thrown out better package seal
lost sales shorter shelf life
Broken too thin poor display change recipe
too brittle injures mouth change process
rough handling chocking change packaging
rough use perceived as old
poor packaging lost sales
Too Salty outdated receipt eat less experiment with recipe
process not in control drink more experiment with process
uneven distribution of salt health hazard introduce low salt version
lost sales

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 by-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-aided design (CAD)
 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: The probability of a product, part, or

system to perform its intended function under a
prescribed set of conditions

• Failure: Situation in which a product, part, or

system does not perform as intended

• Normal operating conditions: The set of conditions

under which an item’s reliability is specified

4 – 36
Rule 1 (Series System)

Lamp 1 Lamp 2

.90 .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 S-1 Reliability
Determine the reliability of the system shown

.90 .92

.98 .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