mba.782.mfg.proccaj9.05.1 the product design process factors in design decision process types...
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MBA.782.Mfg.Proc CAJ9.05.1
• The Product Design Process
• Factors in Design Decision
• Process Types
• Process Flows
• Product-Process Matrix
• Break-Even Analysis
Operations Management
Product Design and Process Selection Manufacturing
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• Idea Development
– customers, competitors, reverse engineering
• Product Screening
– ___________ on Operations, Marketing, and Finance
• Preliminary Design and Testing
– marketing testing; prototyping;
• Final Design
– finalize design
Prod. Design Proc. Selection
Steps in Product Design
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• Concept and Design expend about ___ percent of the
total cost while committing almost ___ percent of the
manufacturing cost....
Product Design/Process Selection - Mfg.
Opportunity for Product Design Change
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• Design for Manufacturing
– ____________ number of components
• Product Life Cycle
– introduction, growth, maturity, and decline
• Concurrent Engineering
– cross-functional teams vs. ______________________
• Remanufacturing
– ease of ___________________
Prod. Design Proc. Selection
Factors to Consider in Design
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Product Design/Process Selection - Mfg.
Process Selection
• Selecting the type of production process to make the
product is a ____________ decision.
• A volume / variety sensitivity issue…
– just a few make them ____ ________
– many ____________ ______
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Process Selection.
Types of Processes
• Conversion
– _____ ___________ into ingredients
• Fabrication
– ingredients into a specific form
• Assembly
– specific forms _____________ together
• Testing
– evaluation / performance procedures
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Process Selection.
Process Flow Structures
• Project
• Job Shop
• Batch
• Assembly
• ProcessDeg
ree
of c
usto
miz
atio
n
Pro
duct
Vol
ume
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Process Flow Choice
Project• Project Management
– Demand -– production begins _________ customer order is received
– Variety -– Unique, _____ of a kind
– Volume -– ______
– Inventory -– _____ materials
– Operations -– Product stationary during build; resources __________ to site
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Process Flow Choice
Job Shop• Make to Order ( _____ )
– Demand -– production begins _________ customer order is received
– Variety -– _______ degree of customization
– Volume -– ________ order quantities
– Inventory -– _____ materials
– Operations -– different, ________ , sequence of operatins - “___________”
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Process Flow Choice
Batch• Assemble to Order ( ______ )
– Demand -– assembly ________ customer selects options
– Variety -– _______ number of final configurations
– Volume -– _______ larger than job shop
– Inventory -– components and ___________________
– Operations -– few, _______________ sequences of operations
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Process Flow Choice
Assembly Line• Make to Stock ( ____ ) - “mass production”
– Demand -– production based on _________________ demand
– Variety -– standard products with variety through _________
– Volume -– _______ volumes
– Inventory -– ___________-_______ available for immediate delivery
– Operations -– ______ sequence of operations - “repetitive”
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Process Flow Choice
Process• Continuous - “ ________ ” industries
– Demand -– ________________ , highly automated, 24 / 7 / 365
– Variety -– _____________ outputs; commodities
– Volume -– ______ high volumes
– Inventory -– ____ primary input material moves through without
stopping
– Operations -– dedicated, __________ intensive
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• Volume vs. Product Stage
Process Flow Choice
Product Life CycleV
olum
e
Introduction Growth Maturity Decline
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• Rate of Innovation vs. Process Evolution
Process Flow Choice
Process Life CycleR
ate
ofIn
nova
tion
FluidPattern
TransitionalPattern
SpecificPattern
IV.Continuous
Flow
III.Assembly
Line
II.Batch
I.Job
Shop
LowVolumeOne of a
Kind
MultipleProducts,
LowVolume
FewMajor
Products,HigherVolume
HighVolume,
HighStandard-
ization
CommercialPrinter
French Restaurant
HeavyEquipment
Coffee Shop
AutomobileAssembly
Burger King
SugarRefinery
Flexibility (High)Unit Cost (High)
Flexibility (Low)Unit Cost (Low)
Source: Modified from Robert Hayes and Steven Wheelwright, Restoring Our Competitive Edge: Competing through Manufacturing (New York: John Wiley & Sons, 1984). p. 209.
Process StructureProcess life cycle
stage
Product Structure - Product life cycle stage
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• Break-Even Analysis
– chart to represent alternative total costs due to the
___________ of units produced
– suitable when initial investment and fixed cost are
__________ and variable costs are
_________________ to the number of units produced
Process Flow Choice
Choosing Among Alternative Processes
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Exhibit 5.12 in text
Alternative Processes
Break-Even Analysis Chart
$-
$50
$100
$150
$200
$250
$300
$350
0 250 500 750 1000 1250 1500 1750 2000 2250 2500
Number of Units
Tota
l Co
st (
$0
00
)
Revenue
Buy
Make
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Alternative Processes
Break-Even Analysis
Revenue = Total Cost
P * Q = FC i + VC i * Q
Total Cost 1 = Total Cost 2
FC 1 + VC 1* Q = FC 2 + VC 2 * Q
FC i = fixed cost, P = price, VC i = variable cost, andQ = break even quantity
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Break-Even Analysis
Example Problem
A manufacturing process has a fixed cost of $150,000 per
month. Each unit of product being produced contains $25
worth of material and takes $45 of labor. How many units are
needed to break even if each completed unit has a value of $90?
CAJ9; p.171; #7
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Product Design/Process Selection - Mfg
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Product Design/Process Selection - Mfg
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Product Design/Process Selection - Mfg
Chapter Wrap-Up
• Read Chapter 5
• Concepts / Terminology
• Review Lecture Notes
• Recommended Problems