MBA 8452 Systems and Operations Management
Product Design
& Process
Selection
— Manufacturing
Introduction to Operations Management/
Operations Strategy
Process Analysis
and Design
Project
Management
Process
Analysis
Planning for Production
Process Control
and Improvement
Capacity Management
Quality
Management
Aggregate Planning
Job Design
Just in Time
Manufacturing
Layout/
Assembly Line Balancing
Services
Statistical
Process Control
Scheduling
Inventory Control
Supply Chain
Management
Waiting Line Analysis
2
Objective: Manufacturing Design

Describe the Manufacturing Process Categories

Explain The Product-Process Matrix

Describe the Changes in Process Design

Calculate Break-Even Analysis
3
Product Design Process

Concept Development

Product Planning

Detailed Engineering

Engineering Release (Sign-Off)
4
Improving Product Design:
Concurrent Engineering

Definition


cross-functional coordination, integration,
and simultaneous development of product
Benefits



reducing time to market
decreasing cost
improving quality and reliability
5
Traditional Design vs.
Concurrent Design
Traditional design: walls between functional areas
customers
Marketing
Design
Engineers
Manuf.
Engineers
Production
Concurrent design: break down the walls between
functional areas
6
Improving Product Design:
Quality Function Deployment



Translate the “voice of the customer” into
technical design requirements
Use interfunctional teams from marketing,
engineering, and manufacturing
Basic tool--House of Quality
7
House Of Quality
5. Tradeoff
Matrix
Importance
3. Product
characteristics
1. Customer
requirements
4. Relationship
matrix
2. Competitive
assessment
6. Technical assessment and
target values
8
Correlation:
5
X
*
Water resistance
Energy needed
to open door
Check force on
level ground
Door seal
resistance
Energy needed
to close door
3
Negative
Strong negative
X
X
X
Competitive evaluation
X = Us
A = Comp. A
B = Comp. B
(5 is best)
1
2
Easy to close
7
X
Stays open on a hill
5
X AB
Easy to open
3
Doesn’t leak in rain
3
No road noise
2
3
4
5
AB
2
XAB
A XB
4
10
Importance weighting
6
6
X A
9
2
3
Relationships:
4
3
2
1
X
B
BXA
BA
X
BA
X
A
Maintain
current level
Technical evaluation
(5 is best)
B
Maintain
current level
5
Reduce energy
to 7.5 ft/lb.
6
Reduce force
to 9 lb.
Target values
Maintain
current level
Strong = 9
Reduce energy
level to 7.5 ft/lb
1
Positive
X
Engineering
Characteristics
Customer
Requirements
Strong positive
X
Accoust. Trans.
Window
House of Quality:
An Example
B
A
X
X
A
Medium = 3
Small = 1
B
Improving Product Design:
Design for Manufacture & Assembly

Value Analysis/Value Engineering (VA/VE)


focus on the ratio of value to cost
Guidelines

Simplification (fewer parts)

Standardization (more standard parts)

Modular design (combining parts)
10
Types of Processes
Project
Assembly line
Job shop/Batch production
Continuous process
11
Product - Process Matrix
Product Characteristics
One-of-a
Kind
Type of Process
Project
Low Vol
Low Std
Movie
production
Job Shop
High flexibility
& unit cost
Printing
shop
Fast food
restaurant
Batch
Auto
assembly
Assembly Line
Continuous
Multiple Limited Products High Volume
Products High Volume High Demand
Low flexibility
& unit cost
Oil, sugar
refinery
12
Process Selection
Break-even Analysis

Single Process--Adopt it or not?

Break-even point:
Profit=0 ------> demandBE=?

Two Processes--Which one is better?

Cross-over point:
Profit1=Profit2 ------> demandCO=?
13
Break-even Analysis
Example--I
Tom Smith, a recent graduate of GSU, has just formed a
company called the New Age Surf to provide high speed
internet access with a competitive price of $20 per month.
The fixed cost each month is estimated to be $60,000.
Unit cost for each customer is approximately $10 per
month. How many customers must be attracted in order to
break even?
14
Break-even Analysis
Example--II
Suppose now Tom is given another option. Instead of
purchasing equipments, he can rent them from other
companies. This will reduce the monthly fixed cost to
$20,000. But unit cost for each customer will be $15 per
month. What option should Tom adopt?
15