Chapter Two

Design of the Operations System

•Product Design and Process Selection

•Capacity Management
•Facility Location and Layout
•Job Design and Work Measurement

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Product Design and Process Selection
• Product Designing is the process of deciding on the
unique characteristics and features of the company’s
product.
Process selection is the development of the process
necessary to produce the designed product.
•Product design and process selection decisions are
typically made together. A company can have a highly
innovative design for its product, but if it has not
determined how to make the product in a cost effective
way, the product will stay a design forever.
Product design and process selection affect product quality, product
cost, and customer satisfaction
OM – Yonathan G. 2
Product Designing

Product design brings together marketing analysts, art directors, sales

forecasters, engineers, finance experts, and other members of a company to
think and plan strategically.

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The main forces that initiate design or redesign are market
opportunities and threats. Changes result in opportunities and
threats.

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 What does product and service design do?
(functional interactions are shown in parentheses)
• Translate customer wants and needs into product and
service requirements( marketing, operations)
• Refine existing products and services(marketing)
• Develop new products and /or services(marketing,
operations)
• Formulate quality goals( Marketing, operations)
• Formulate cost targets(accounting, finance and
operations)
• Construct and test prototypes ( operations, marketing and
engineering)
• Document specifications

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Objectives of product design

• Customers satisfaction
• Economical product design (profitability)
• Speedy product design
• Quality appearance
• Design that fit with operational capabilities or
design for operation: ease of production,
assembly and maintenance
• Meeting work and environmental safety
regulations
• Design to global competitiveness

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 Issues in Product Design
• Design process
• Concurrent design
• Technology in design
• Design reviews
• Design for environment
• Design for robustness
• Quality function deployment

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 Detail Steps of Product Design

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Product Design process (Cont.)

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Step 1: Idea Generation
• Company’s own R&D • Salespersons in the
department field
• Customer complaints • Factory workers
or suggestions • New technological
• Marketing research developments
• Suppliers • Competitors

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 Idea Generation (cont.)
 Perceptual maps (Customers)
 Visual comparison of customer perceptions
Competitors as sources of idea
 Benchmarking
 Comparing product/process against best-in-class
 Reverse engineering
 Dismantling competitor’s product to improve your
own product
 Buy a competitor’s new product and study its design
features.

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 Perceptual Map of Breakfast Cereals

GOOD
TASTE

Cocoa Puffs

LOW HIGH
NUTRITION NUTRITION

Rice
Rice Cheerios
Cheerios
Krispies
Krispies
Wheaties
Wheaties

Shredded
Shredded
Wheat
Wheat
BAD
TASTE
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Step 2: Product Screening /Feasibility Study

It evaluate a product idea to determine its likelihood of

success. Evaluation criteria may include:
– Market analysis
– Economic analysis
– Technical/production analysis
– strategic analyses
– Performance specifications

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Break-Even Analysis: A Tool for Product Screening

Fixed cos t
BEQ= selling price / unit  var iable cos t / unit

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 Step 3: Preliminary Design and
Testing
(Rapid Prototyping)
Building, testing ,revising and refining a preliminary
product Design model.

Changes are made based on test results, and the process of

revising, rebuilding a prototype, and testing is continuous until
all the “bugs” have been worked out.
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 Form and Functional Design
• Form design
– how product will look?
• Functional design
– how product will
perform?
• reliability
• maintainability
• usability

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 Usability
• Ease of use of a product or service
– ease of learning
– ease of use
– ease of remembering how to use
– frequency and severity of errors
– user satisfaction with experience

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 Production Design
• How the product will be made
– Simplification- reducing number of parts,
assemblies, or options in a product
– Standardization - using commonly available and
interchangeable parts
– Modular Design - combining standardized building
blocks, or modules, to create unique finished
products
– Design for Manufacture (DFM) - designing a product
so that it can be produced easily and economically

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 Source: Adapted from G. Boothroyd and

Design Simplification P. Dewhurst, “Product Design…. Key to

Successful Robotic Assembly.” Assembly
Engineering (September 1986), pp. 90-93.

(a) Original design (b) Revised design (c) Final design

Assembly using One-piece base & Design for

common fasteners elimination of push-and-snap
fasteners assembly

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 Step 4: Final Design
(Final Design and Process Plans)
• Final design: detailed drawings and specifications for
new product or service.

• Process plans
– workable instructions
• necessary equipment and tooling
• component sourcing recommendations
• job descriptions and procedures
• computer programs for automated machines

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 Outputs of final product design:
1. Product documents: 2.Production documents:
a) Assembly chart
A) Engineering drawing
b) Assembly Drawing
– Shows dimensions,
c) Route sheet
tolerances, & materials
B) Bill of Material
– Lists components,
quantities & where used
– Shows product structure

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Engineering Drawing Example

2-1/2
13/16
1
diameter

13/32
1/4 R
diameter
2-1/4

45° 13/16

3/8 13/16 5/16

1-5/8

Scale: FULL
Bracket Drawn: J. Thomas A- 435-038

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 Bill of Material Example

Bill of Material
P/N: 1000 Name: Bicycle
P/N Desc Qty Units Level
1001 Handle Bars 1 Each 1
1002 Frame Assy 1 Each 1
1003 W heels 2 Each 2
1004 Frame 1 Each 2

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 Assembly Drawing
• Shows exploded view of product

Head Neck

End
Cap
Handle

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 Assembly Chart
Tuna Fish
1
Tuna
SA1 A1
Assy
2 Sandwich
Mayonaise
FG

Bread
3 A2

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 Design Team
 Traditional Approach : “We design it, you build it” or “Over the wall”
 Concurrent Engineering: “Let’s work together simultaneously”

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 Concurrent Design
• A new approach to • Involves suppliers
design that involves • Incorporates production
simultaneous design of process
products and processes • Scheduling and
by design teams management can be
• Improves quality of complex as tasks are
early design decisions done in parallel
• Uses technology to aid
design

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 Design for Manufacture (DFM)
• Design for manufacture (DFM) is a series of guidelines
that we should follow to produce a product easily and
profitably. DFM guidelines focus on two issues: Design
Simplification and Standardization.
Guidelines for DFM
• 1. Minimize parts.
• 2. Design parts for different products.
• 3. Use modular design.
• 4. Avoid tools.
• 5. Simplify operations.
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 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?
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 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?

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 Design for Environment and
Extended Producer Responsibility
Design for environment
– designing a product from material that can be recycled
– design from recycled material
– design for ease of repair
– minimize packaging
– minimize material and energy used during manufacture,
consumption and disposal
Extended producer responsibility
– holds companies responsible for their product even after
its useful life

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 Design for Environment

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 Sustainability
• Ability to meet present needs without compromising
those of future generations
• Green product design
– Use fewer materials
– Use recycled materials or recovered components
– Don’t assume natural materials are always better
– Don’t forget energy consumption
– Extend useful life of product
– Involve entire supply chain
– Change paradigm of design Source: Adapted from the Business
Social Responsibility Web site,
www.bsr.org, accessed April 1, 2007.

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 Metrics for Design quality
The quality of a design depends in large part on how easy or
difficult it is to produce. A more comprehensive and useful
evaluation of design quality includes the following metrics
•Percent of revenue from new products or services
•Percent of products capturing 50% or more of the market
•Percent of process initiatives yielding a 50% or more
improvement in effectiveness
•Percent of suppliers engaged in collaborative design
•Percent of parts that can be recycled
•Percent of parts used in multiple products
•Average number of components per product
•Percent of parts with no engineering change orders(ECOs)
•Things gone wrong(TGW)

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 Quality Function Deployment (QFD)
• Translates voice of customer into technical
design requirements
• Displays requirements in matrix diagrams
– first matrix called “house of quality”
– series of connected houses

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 House of Quality
5

Importance
Trade-off matrix

3
Design
characteristics

1 4 2

Customer Relationship Competitive

requirements matrix assessment

6 Target values

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House of Quality Details

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 Benefits of QFD
• Promotes better understanding of customer
demands
• Promotes better understanding of design
interactions
• Involves manufacturing in design process
• Provides documentation of design process

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 Design for Robustness
• Robust product
– designed to withstand variations in environmental and
operating conditions
• Robust design
– yields a product or service designed to withstand variations
• Controllable factors
– design parameters such as material used, dimensions, and
form of processing
• Uncontrollable factors
– user’s control (length of use, maintenance, settings, etc.)
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 Design for Robustness (cont.)
• Tolerance
– allowable ranges of variation in the dimension of a
part
• Consistency
– consistent errors are easier to correct than
random errors
– parts within tolerances may yield assemblies that
are not within limits
– consumers prefer product characteristics near
their ideal values
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 Technology in Design
Computer Aided Design (CAD)
– assists in creation, modification, and analysis of a design
– computer-aided engineering (CAE)
• tests and analyzes designs on computer screen
– computer-aided manufacturing (CAD/CAM)
• ultimate design-to-manufacture connection
– product life cycle management (PLM)
• managing entire lifecycle of a product
– collaborative product design (CPD)

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Factors to be considered in Product Designing
• Legal, Ethical and Environmental issues
• Design for Manufacture (DFM)
• Product Life Cycle
• Concurrent Engineering
• Remanufacturing

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 Product Life Cycle, Sales, Cost, and
Profit
Cost of
Development
Sales, Cost & Profit .

& Manufacture Sales Revenue

Net Revenue

Loss
Time
Introduction Growth Maturity Decline

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 Product life cycle
Introduction:
Fine tuning: research, product development, process
modification and enhancement, and supplier development
Growth:
Product design begins to stabilize, Effective forecasting of capacity
becomes necessary and Adding or enhancing capacity may be
necessary
Maturity:
Competitors now established, High volume, innovative production
may be needed and Improved cost control, and reduction in options,
paring down of product line
Decline:
Unless product makes a special contribution, OM must plan to
terminate offering
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