process design and selection
TRANSCRIPT
Product design and process selection
Idea development◦ Technology push◦ Marketing pull
Product screening◦ Marketing criteria◦ Financial criteria◦ Operational criteria
Preliminary design and testing◦ Prototyping◦ Trial marketing
Final design
Product design and process selection
ReverseEngineering
ConcurrentEngineering
BreakevenAnalysis
ValueEngineering
Remanufacturing
Benchmarking
Concurrent Engineering
• Concurrent engineering can be defined as 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.
CE decision-making example
Operation
Begin or end
Informationinput
Informationoutput
Shampoo directions1. Lather2. Rinse3. Repeat
Process Documentation using Flowcharts
Basic flowchart symbols
Example: Any problems with the following set of directions?
Questionyes/no?
Shampoo?
Begin shampoo
Rinse hair with warm water
Lather shampoointo hair
Select bottle
Wet hair withwarm water
Informationon bottle
No
Yes
Hairclean?
NoEnd shampoo
Yes
Process Flow Diagram (PFD)A process flow diagram is a mapping of the specific processes that raw materials,parts, and subassemblies follow as they move through a plant.
Builds on the concept of flowcharting.
Activity
A more constrained version of the operation symbol used in flowcharting1. Requires a resource2. Resource has a capacity constrain3. Adds value
Flow1. Arrow indicates the flow of jobs2. Multiple flow units (types of jobs) possible
Buffer
Buffer or inventory location1. Normally does not have a capacity2. Multiple units possible
TreesRM
Debark StemsWIP
Scan SawAcceptable
LumberFG
Grind ChipsFG
Acceptable
The product life cycle Every product and
service follows a life cycle that spans:◦ Planning◦ Introduction◦ Growth◦ Maturity ◦ Decline
Healthy companies manage their product and service offerings to insure a balanced portfolio
Sales
Profit
Plan Intro Growth Maturity Decline
Dol
lars
Positioning Strategies and the Product / Process Matrix
Job Shop
Large Batch
Assembly Line
Process Focus
Product Focus
Product Volume
Flo
w P
atte
rn
The process-focused Project ShopCharacteristics1. Makes a one-of-a-kind product (volume = 1)2. Uses general purpose equipment3. Has informal relationships with many vendors4. Very little vertical integration5. Flexible layout often with factors of production moving to job
The Job Shop Characteristics1. Makes many products in small volume 2. Uses general purpose equipment3. Has informal relationships with vendors4. Very little vertical integration5. Departmentalized layout with chaotic flow
The Large Batch (Cell, Flow or Hybrid Shop)
Characteristics1. Makes several families of products in moderate volume 2. Uses general purpose equipment often fixtured3. Little vertical integration4. Hybrid layout with flow lines
The Assembly LineCharacteristics1. Makes few products in large volume 2. Uses specialized high-volume equipment 3. Has formal relationships with vendors4. May use vertical integration5. Product-based layout with linear flow
Process Decisions
More resource flexibility & More customer involvement
More vertical integration & More capital intensity
Flexibility
Efficiency
Product Volume
Flo
w P
atte
rn
Low Medium HighProduct Volume
Jumbled
Dominant
Line
Pro
cess
Cho
ice
Greater need for flexibility
Greater need for efficiency
Technology and the Product/Process Matrix
Technology decisions tend to be long-term in nature and greatly influence which products and services a firm is capable of providing to its customers profitably.
Managing the balance between efficiency and flexibility to optimize customer service performance: Product and Service Strategy
PrepareIngredientsRaw
Materials
AssembleMenu Items Finished
Goods
PrepareIngredientsRaw
Materials
AssembleMenu ItemsWork
InProcess
PrepareIngredientsRaw
Materials
AssembleMenu Items
Make to stock
Assemble to order
Make to order
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