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    1

    Session 3

    Product Design

    OBJECTIVES

    Product Development

    Process

    Economic Analysis ofDevelopment Projects

    Designing for the Customer

    Design for

    Manufacturability

    Measuring ProductDevelopment Performance

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    2

    Regal Marine

    Global market

    3-dimensional CAD system

    Reduced product development timeReduced problems with tooling

    Reduced problems in production

    Assembly line production JIT

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    3

    The good or service the organization

    provides society

    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

    Product Decision

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    4

    Product Strategy Options

    DifferentiationDifferentiationShouldice HospitalShouldice Hospital

    Low costLow cost

    Taco BellTaco Bell Rapid responseRapid response

    ToyotaToyota

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    5

    Product Life Cycles

    Negativecash flow

    IntroductionIntroduction GrowthGrowth MaturityMaturity DeclineDecline

    Sales,cost,andcas

    hflow

    Sales,cost,andcas

    hflow Cost of development and productionCost of development and production

    CashCashflowflow

    Net revenue (profit)Net revenue (profit)

    Sales revenueSales revenue

    LossLoss

    Figure 5.1Figure 5.1

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    Scope of

    productdevelopment

    team

    Product Development

    System

    Scope fordesign and

    engineeringteams

    Evaluation

    Introduction

    Test Market

    Functional Specifications

    Design Review

    Product Specifications

    Customer Requirements

    Ability

    Ideas

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    Perceptual Maps Visual comparison of

    customer perceptions

    Benchmarking Comparing product/service

    against best-in-class

    Reverse engineering

    Dismantling competitors product to improveyour own product

    Idea Generation Sources

    (cont.)

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    8Typical Phases of ProductDevelopment

    Phase 0 Planning --- Input: Corp. Strat,Tech Dev, Mkt. Obj;

    Output: Target Mkt, Bus goals,

    assumptions & constraints

    Phase 1 - Concept Development --- Des.Of Form, functions & features of the pdt.

    Phase 2 - System-Level design --- Def ofthe pdt architecture + decomposition ofthe pdt into subsystem & components +Final Assembly

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    Phase 3 - Design Detail --- complete Spec.

    of geometry, materials, tolerances &identification of all the std. pdts to bepurchased from the suppliers.

    Phase 4 - Testing and Refinement ---Prototypes are built + tested for theperformance & satisfaction of cust needs

    Phase 5 - Production Ramp-up --- Pdts aresometimes supplied to preferred cust. Foridentification of flaws if any.

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    Pdt Dev Processes - Types

    1. Generic (Mkt Pull) E.G. Sprots Items,

    Furniture

    2. Tech Push: Elect. Cables, TV Tube Mfg.

    3. Platform Pdts Cameras, Operating Systems

    4. Process Intensive Chemicals, paper Ind.

    5. Custmised Pdts Watches, Subros making AC

    for Maruti;

    6. High Risk Pdts- PCs, mobiles.7. Quick Build Products Softwares

    8. Complex System Airplanes , Locomotive

    Engines units

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    11

    Economic Analysis ofProject Development Costs Using measurable factors to help

    determine: Operational design and development

    decisions Go/no-go milestones

    Building a Base-Case FinancialModel

    A financial model consisting of majorcash flows

    Sensitivity Analysis for what ifquestions

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    12Designing for theCustomer

    Quality FunctionDeployment

    Value Analysis/

    Value Engineering

    Ideal

    Customer

    Product

    House ofQuality

    Quality Function DeploymentInter functional teams from marketing, designengineering, and manufacturingVoice of the customer

    House of Quality

    13

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    Designing for the Customer:

    Customer

    Requirements

    Importanceto

    Cust.

    Lightweight

    Easy to use

    Reliable

    Easy to hold steady

    Colour Correction

    Importance weighting

    Engineering

    Characteristi

    cs

    LowElect.Req

    AutoFocus

    AutoExposure

    Ergonomics

    Design

    22 9 27 27 32 25

    3

    4

    5

    2

    1

    5

    5

    5

    5

    Correlation:Strong positive

    PositiveNegativeStrong negative

    X*

    Competitive evaluationX = UsA = Comp. AB = Comp. B(5 is best)

    1 2 3 4 5

    X AB

    X AB

    XAB

    A X B

    X A B

    Relationships:

    Strong = 5Medium = 3

    Small = 1Target values

    0.5A

    2toInfinity

    2circuits

    Failure1per10000

    Technical evaluation

    (5 is best)

    54321

    B

    A

    X

    BAX B

    A

    X

    B

    X

    A

    BXABAX

    Al.Comp.

    PaintPallet

    Panelranking

    75%

    13

    Customer

    requirementsinformation

    forms the

    basis for this

    matrix, used

    to translatethem into

    operating or

    engineering

    goals.

    Customer

    requirementsinformation

    forms the

    basis for this

    matrix, used

    to translate

    them into

    operating or

    engineering

    goals.

    1 1

    13

    33 3

    5

    5

    3333

    5

    5

    14

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    Tools for efficient product

    development:Quality Function

    Deployment

    7. Technical assessment &target values

    1. Customerrequirements

    4. Relationshipmatrix

    3. Productcharacteristics

    2. Importance

    6. Benchmarks

    5. TradeoffsHouse of Quality

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    Designing for the Customer:Value Analysis

    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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    Tools for Efficient Product

    Development:Value Engineering

    Value engineering

    Refers to a set of activities undertaken to investigate

    the design of components in a product development

    process Strictly from a cost value perspective

    To alert the product development team to alternatives

    that

    could either bring down the cost or increase the value

    By improving on the functionalities and performance

    without increasing the cost

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    Cost Reduction of aBracket through Value

    Engineering

    Figure 5.5Figure 5.5

    18

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    Value EngineeringAgenda for brainstorming

    Can we eliminate certain features from the design?

    Are there instances of over-design in certain components

    increasing the cost? If so, how can rationalise these aspects?

    Are there certain features of design that cost more than what

    it is worth? Is it possible to replace the proposed method of manufacture

    with a less costly one?

    Is it possible for someone else (suppliers) to produce certain

    components cheaper, faster and better? Can we eliminate parts and replace them with more universal

    parts?

    Are there opportunities for cost cutting by development of

    import substitution methods?

    19

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    19Design forManufacturability

    1. Traditional Approach

    We design it, you build it or Over the

    wall

    2. Concurrent Engineering

    Lets work together simultaneously

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    Organisation for Product

    Development Process:

    Traditional Approach

    Marketing Design Planning Procurement Production Finance

    Customers Suppliers

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    Organisation for Product

    Development Process:

    Concurrent Engineering

    Mar

    ket

    ing

    Design

    Planning Procurement

    Production

    Financ

    e

    Custo

    mers

    Suppliers

    Concurrent Engineering

    Team Structure

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    Design for Manufacturingand Assembly Greatest improvements related to DFMA arise

    from simplification of the product byreducing the number of separate parts:

    1. During the operation of the product, does thepart move relative to all other parts alreadyassembled?

    2. Must the part be of a different material or beisolated from other parts already assembled?

    3. Must the part be separate from all other partsto allow the disassembly of the product foradjustment or maintenance?

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    DFM GuidelinesAddresses three major areas

    Variety Reduction

    Minimize the number of

    parts

    Minimize sub-assemblies

    Avoid separate fasteners Use standard parts when

    possible

    Design parts for multi-use

    Develop a modular design

    Use repeatable &

    understood processes

    Operational Convenience

    Simplify operations

    Eliminate adjustments

    Avoid tools

    Design for minimumhandling

    Design for top-down

    assembly

    Design for efficient &

    adequate testing

    Cost Reduction Analyze failures

    Rigorously assessvalue

    24

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    Simplification reducing number of parts, assemblies, or options in a

    product

    Standardization

    using commonly available and interchangeable parts Modularity

    combining standardized building blocks, or modules, tocreate unique finished products

    Production Design

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    Design SimplificationDesign Simplification

    (b) Revised design(b) Revised design

    One-piece base &One-piece base &

    elimination ofelimination of

    fastenersfasteners

    (c) Final design(c) Final design

    Design forDesign for

    push-and-snappush-and-snap

    assemblyassembly

    (a) Original design(a) Original design

    Assembly usingAssembly using

    common fastenerscommon fasteners

    26

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    Tools for Efficient Product

    Development:

    Mass Customisation methods Standardisation leads to variety

    reduction

    uses commonly available parts

    reduces costs & inventory

    Modular design

    combines standardized building

    blocks/modules into unique products

    Product Platforms

    27

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    Measuring Product DevelopmentPerformanceMeasures

    Freq. Of new products introducedTime to market introductionNumber stated and number completed

    Actual versus planPercentage of sales from new products

    Freq. Of new products introducedTime to market introductionNumber stated and number completed

    Actual versus planPercentage of sales from new products

    Time-to-marketTime-to-market

    ProductivityProductivity

    QualityQuality

    Engineering hours per project

    Cost of materials and tooling per projectActual versus plan

    Engineering hours per projectCost of materials and tooling per projectActual versus plan

    Conformance-reliability in useDesign-performance and customer satisfaction

    Yield-factory and field

    Conformance-reliability in useDesign-performance and customer satisfaction

    Yield-factory and field

    PerformanceDimension

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