Week 2

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Week 2

• Fall 2
• 2010

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Decision Making
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decision/State of Nature good economy fair economy poor economy EMV

sell condo 295000 126000 19500 178550
sell beach house 175000 76000 37500 113950
sell office bldg 275000 95000 78000 179900

0.5 0.2 0.3
EVPI 183950
VPI 4050

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• Products and Services

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Product Design

• Specifies materials
• Determines dimensions tolerances
• Defines appearance
• Sets performance standards

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Service Design

• Specifies what the customer is to experience
• Physical items
• Sensual benefits
• Psychological benefits

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An Effective Design Process

• Matches product/service characteristics with
  customer needs
• Meets customer requirements in simplest, most
  cost-effective manner
• Reduces time to market - haste vs. speed to
  market
• Minimizes revisions - quality designed into the
  product

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Stages in the Design Process

• Idea Generation Product Concept - can you
  create your own market? What role does the voice
  of the customer play in idea generation?
• Feasibility Study Performance Specifications
• Preliminary Design Prototype - testing and
  redesign
• Final Design Final Design Specifications
• Process Planning Manufacturing Specifications
  - make to order/stock assembly line?

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The Design Process
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Idea Generation

• Suppliers, distributors, salespersons
• Trade journals and other published material
• Warranty claims, customer complaints, failures
• Customer surveys, focus groups, interviews
• Field testing, trial users
• Research and development

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More Idea Generators

• Perceptual Maps
• Visual comparison of customer perceptions
• Benchmarking
• Comparing product/service against best-in-class
• Reverse engineering
• Dismantling competitors product to improve your
  own product

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Perceptual Map of Breakfast Cereals
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Perceptual Map of Breakfast Cereals
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Feasibility Study

• Market Analysis - Market Segmentation
• Economic Analysis
• Technical / Strategic Analysis
• Performance Specifications

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Risk Analysis

• 1. Identify the Hazards
• 2. Assess hazards to determine risks.
• 3. Develop controls and make risk decisions.
• 4. Implement controls.
• 5. Supervise and evaluate.

From FM 100-14
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Preliminary Design
How will it look?

• Create form functional design
• Build prototype
• Test prototype
• Revise prototype
• Retest

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Functional Design(How the Product Performs)

• Reliability
• Probability product performs intended function
  for specified length of time
• Maintainability
• Ease and/or cost or maintaining/repairing product

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Systems Reliability, Availability, Maintainability

• Reliability
• Availability
• Maintainability
• MTBF
• MTTR

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Computing Reliability
Components in series
0.90 x 0.90 0.81
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Computing Reliability
Components in series
0.90 x 0.90 0.81
Components in parallel
0.95 0.90(1-0.95) 0.995
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System Availability
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System Availability
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System Availability
SAA 60 / (60 4) .9375 or 93.75 SAB 36 /
(36 2) .9473 or 94.73 SAC 24 / (24 1)
.96 or 96
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Production Design

• Part of the preliminary design phase
• Simplification
• Standardization
• Modularity

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Final Design Process Plans

• Produce detailed drawings specifications
• Create workable instructions for manufacture
• Select tooling equipment
• Prepare job descriptions
• Determine operation assembly order
• Program automated machines

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Improving the Design Process

• Design teams
• Concurrent design
• Design for manufacture assembly
• Design to prevent failures and ensure value
• Design for environment
• Measure design quality
• Utilize quality function deployment
• Design for robustness
• Engage in collaborative design

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Breaking Down Barriers to Effective Design
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Design Teams
Preferred solution cross functional teams

• Marketing, manufacturing, engineering
• Suppliers, dealers, customers
• Lawyers, accountants, insurance companies

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Concurrent Design

• Improves quality of early design decisions
• Decentralized - suppliers complete detailed
  design
• Incorporates production process
• Scheduling and management can be complex as tasks
  are done in parallel
• include the customer in the process!!

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Design for Manufacture and Assembly

• Design a product for easy economical production
• Incorporate production design early in the
  design phase
• Improves quality and reduces costs
• Shortens time to design and manufacture
• also known as Design for Six Sigma

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Design for Six Sigma

• Define the goals of the design activity
• Measure customer input to determine what is
  critical to quality from the customers
  perspective what are customer delighters? What
  aspects are critical to quality?
• Analyze innovative concepts for products and
  services to create value for the customer
• Design new processes, products, and services to
  deliver customer value
• Verify new systems perform as expected

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DFM Guidelines

• Minimize the number of parts, tools, fasteners,
  and assemblies
• Use standard parts and repeatable processes
• Modular design
• Design for ease of assembly, minimal handling
• Allow for efficient testing and parts replacement

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Design Review

• Failure Mode and Effects Analysis (FMEA)
• A systematic approach for analyzing causes
  effects of failures
• Prioritizes failures
• Attempts to eliminate causes

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Value Analysis (Value Engineering)
Is there value added?

• Ratio of value / cost
• Assessment of value
• 1. Can we do without it?
• 2. Does it do more than is required?
• 3. Does it cost more than it is worth?
• 4. Can something else do a better job
• 5. Can it be made by less costly method, tools,
  material?
• 6. Can it be made cheaper, better or faster by
  someone else? Should we contract it out?

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Design for Environment

• Design from recycled material
• Use materials which can be recycled
• Design for ease of repair
• Minimize packaging
• Minimize material energy used during
  manufacture, consumption disposal
• green laws in Europe -

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Examples

• Recycling of oil
• carpets in land fills - 4 billion pounds in land
  fills annually
• Xerox and Hewlett-Packard - pay for return of
  printer cartridges on larger printers

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Design for Robustness

• Product can fail due to poor design quality
• Products subjected to many conditions
• Robust design studies
• Controllable factors - under designers control
• Uncontrollable factors - from user or environment
• Designs products for consistent performance

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Characteristics of Services

• Services are intangible
• Service output is variable
• Service have higher customer contact
• Services are perishable
• Service inseparable from delivery
• Tend to be decentralized and dispersed
• Consumed more often than products
• Services can be easily emulated
• Call girl principle value diminishes after
  service is rendered

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A Well-Designed Service System is

• Consistent with firms strategic focus
• Customer friendly
• Easy to sustain
• Effectively linked between front back office
• Cost effective
• Visible to customer

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• Processes and Technologies

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Process Strategy

• Overall approach to producing goods and services
• Defines
• Capital intensity
• Process flexibility
• Vertical integration
• Customer involvement

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Types of Processes

• Projects
• Batch production
• Mass production
• Continuous production

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Process Planning

• Make-or-buy decisions
• Process selection
• Specific equipment selection
• Process plans
• Process analysis

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Make-or-Buy Decisions

• 1. Cost
• 2. Capacity
• 3. Quality
• 4. Speed
• 5. Reliability
• 6. Expertise

What about Proprietary Information? Barrier to
Make-or-Buy?
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Source Aberdeen Research, Low-Cost Country
Sourcing Success Strategies Maximizing and
Sustaining the Next Big Supply Savings
Opportunity, Jun 2005
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Specific Equipment Selection

• Purchase cost
• Operating cost
• Annual savings
• Revenue enhancement
• Replacement analysis
• Risk and uncertainty
• Piecemeal analysis one piece at
• a time

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Process Plans

• Blueprints
• Bill of material Flat or multiple layers - part
  or assembly
• Assembly chart /product structure diagram
• Operations process chart - list of operations
  involved in assembly
• Routing sheet - sequence of events

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Operations Process Chart
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Process Analysis

• The systematic examination of all aspects of a
  process to improve its operation
• Faster
• More efficient
• Less costly
• More responsive
• Basic tools
• Process flowchart
• Process diagrams
• Process maps

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Process Flowchart
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Process Diagram
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Principles for Redesigning Processes

• Remove waste, simplify, consolidate
• Link processes to create value
• Let the swiftest and most capable execute
• Capture information digitally and propagate

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Principles for Redesigning Processes

• Provide visibility through information about
  process status
• Fit the process with sensors and feedback loops
• Add analytic capabilities
• Connect, collect and create knowledge around the
  process
• Personalize the process

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Other ways to redesign the process

• Define
• Measure
• Improve

• Define
• Measure
• Analyze
• Improve
• Control

Velocity Management Methodology
General Electrics Six Sigma Methodology
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Techniques for Generating Innovative Ideas

• Vary entry point to a problem
• Draw analogies
• Change your perspective
• Use attribute brainstorming

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Enterprise Software

• Collect, analyze, and make decisions based on
  data
• ERP - Enterprise Resource Planning
• Managing wide range of processes
• Human resources, materials management, supply
  chains, accounting, finance, manufacturing, sales
  force automation, customer service, customer
  order entry
• Finding hidden patterns through data mining

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ERP

• SAP 43 of market
• Oracle 23
• Sage Group 6
• Microsoft 4
• Horror Stories Hersheys, Dell

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Advanced Communications

• Electronic data interchange (EDI)
• Internet, extranets
• Wireless communications
• Teleconferencing telecommuting
• Bar coding, Radio Frequency Identification
• Virtual reality

Distance Learning?
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RFID

• Active Tags
• Always on
• Battery powered
• Can be read from up to 300 ft
• US Army
• Savi Tags

• Passive Tags
• Small
• Must be activated
• May be turned off
• England
• California
• Rolex

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Automated Material Handling

• Conveyors
• Automated guided vehicle (AGV)
• Automated storage retrieval system (ASRS)
  Grainger/Defense Distribution Center, San Joaquin

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Robotics

• Programmable manipulators
• Follow specified path
• Better than humans with respect to
• Hostile environments
• Long hours
• Consistency
• Adoption has been slowed by ineffective
  integration and adaptation of systems
• Welding at Harley Davidson Plant

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Next Week

• Next Week Facility Planning, Project Management
• Take home exam to be posted to website