Understanding Competitive Position Product Lifecycle Every product has a lifecycle – the stage of the lifecycle (maturity of Time the product) determines the form of manufacturing system in place Location (Job Shop –> Mass Production) Market segment Form/Amount of competition Investment opportunities (cost of money)…..many others
*These are shaped by Product/Service lifecycles
(Rehg & Kraebber, 2005, p. 13).
1 2
Order Winning Criteria Lifecycle
The demand for a product changes during the lifecycle –Demand is commonly known as Order Winning
“… are the minimal operational capabilities required to get an order” (Rehg & Kraebber, 2005, p. 13)
Price, quality/reliability, delivery speed, innovation, after-sale service, flexible financing
(Black & Kohser, 2008, p. 22).
3 4
Technology & Lifecycle (Product) Lifecycle Examples
LCD HD Televisions = Decline LED UHD Televisions = Maturation Styrofoam Cups = Commodity/Decline Steel-Framed Bicycle = Decline/Obsolescence Auto-Nav Systems = Maturation New Software, Food, Video Game = Introduction/Growth Mini laptops = Growth
(Black & Kohser, 2008, p. 22).
5 6
1 1 (Product) Lifecycle Examples (Service) Lifecycle Examples Cereal = Commodity Repairing Televisions = Obsolete Moon boots = Obsolescence Yard Care = Commodity/Maturation Michael Jackson Zipper Pants = Obsolescence Milk Delivery = Obsolete Mail Delivery = Decline Roland Martin Helicopter Fishing Lure = Obsolescence SIP Installation = Growth Phone Booths = Obsolescence Zwickey Broadheads = Decline/Obsolescence Multifunctional CAD/CAM software = Growth Surgical Removal of tonsils = Decline/Obsolescence
Lean Consulting = Maturation
7 8
Volume vs Method Why is the lifecycle curve useful in understanding cost reduction? Where a company is at in the lifecycle curve often reveals the level of priority of reducing costs.
Money is “soft” when companies experience growth
Companies that are mature have already picked the “low hanging fruit”
Lean is one approach to remaining competitive. Design innovations are the key to experience new growth. (Black & Kohser, 2008, p. 25).
9
Product Cost Breakdown: Design: Why not focus on?? (least expensive phase)
Can have the greatest impact on the cost to produce a product which Design: 5% (CAD, FEA, prototyping) directly affects the price of that product
Material: 50% (inexpensive materials/multiple processes, expensive materials/few processes) Expensive inputs = Expensive outputs More planning = More $ expenses $ Direct Labor: 5-15% (depending on automation level) More processing = More $ expenses $ Overhead: 30% (indirect labor, supervision, repair, maintenance, QC, More operations = More $ expenses $ research, sales) More control = More $ expenses $ (Kalpakjian & Schmid, 2001) More people = More $ expenses $ More lead time = $ expenses $ Design constitutes about 5% of products cost in Manufacturing (Kalpakjian & Schmid, 2001)- this ultimately determines the remaining costs. Many companies feel if the cost of design is so inexpensive, then this is the phase of product development that should be concentrated on the most. Design of a product affects needed planning, processing and operations, control, number of people needed, which affects lead time
2 2 Give Customer What they Want Design
Costs incurred for catching defects can be analogous to the Rule “The most dangerous kind of waste is the waste we do not of 10 recognize.” Shigeo Shingo
Relative Costs of Defect Elimination: (Rule of 10) In Product Concept Stage: .01% During Planning Stage: 1% During Production: 10% SMED After Customer has received: 100% Mistake-proofing If the customer receives a defect, then this will cost you 100% Zero quality control more than if you catch the defect in the planning stage (process control vs process control) We discuss design, because through good design, we minimize defects and processing waste.
Design Design
May not be economically feasible - Depends on market Determined by the customer window, comparison to other ‘like’ products
Quality is determined by 3f’s Costs may be minimized by benchmarking other companies (for best practices) and reverse-engineering (how did they produce) competition’s products. Depends on resources (people, processes, knowledge) Must be concurrent, simultaneous (not-over-the-wall)- must Depends on communication (verbal, written, visualization) involve production personnel
Will be flawed if problem is not identified or is misidentified Evaluated by instructions, safety warnings, cost, life, servicing/maintenance
Is a process that is cyclic (on-going) Suggestions for improvement often come from operators/laborers who work with products and processes daily
Product Defining Limits: 3F’s Product Form When we as consumers or manufacturers evaluate a product, What we observe/visually notice in a product: (to note: a few) we evaluate the 3F’s of product design: Color & Contrast Size & Shape 1. Form: shape, style Clarity/opaqueness Style or appeal Arrangement & distribution 2. Fit: fit for market (safe) and manufacturability (can it be Consistency easily produced?) Intuitiveness, logical, direct, obvious, familiar Balance 3. Function: functional performance, usability, reliability, Surface characteristics, texture Other physical characteristics (weight, material, etc.) serviceability, maintainability Features, options, controls observed (that reveal FIT and FUNCTION) (Kraebber & Rehg, 2005) Aesthetics (Gestalt Theory) –What we want/expect to see in a product
3 3 Product Form (shape, style) Product Form (shape, style) Some laws that shape design (based on Gestalt Theory) Some laws that shape design (based on Gestalt Theory) Law of Balance & Symmetry: objects are proportional or Law of Pragnanz (good form): ability to interpret and recognize visual size/shape/distribution offset one another patterns based on previous experiences Law of Continuation: viewer perception/inclination to follow object in direction Law of Proximity: items appearing close together become part of a group Law of Closure: completeness to avoid viewer confusion Law of Similarity: objects appearing similar become part of a group Law of Figure-Ground: clearly defining a color difference between Law of Simplicity/Familiarity: arrangement of elements and objects in a foreground objects and the background simple manner not to confuse the viewer Law of Focal Point: drawing viewer attention to point of emphasis Law of Unity / Harmony: congruity in arrangement so there is a visual Law of Isomorphic Correspondence: symbols and color take on different connection, coherence, and related in visual form meanings because of culture, experience, and memories
Product FIT: Cost to Produce Product FIT: Cost to Produce Material Costs (net material cost = used – scrap) Capital Costs (buildings, land, machinery, tooling and equipment) – flexible/programmable cells/systems are justified by high production volumes Tooling Costs (jigs, fixtures, dies, molds, patterns) – high tooling costs may be justified by production volume Direct Labor Costs (operators/laborers)
Fixed Costs (electricity, fuel, taxes, rent, insurance) – not Indirect Labor Costs (support/servicing – AKA burden rate, non- generally sensitive to production volume productive labor) - supervision, repair/maintenance, quality (Kalpakjian & Schmid, 2001) control, engineering, research, sales, office personnel) (Kalpakjian & Schmid, 2001)
Product FIT: Complex Designs Product Fit Unfit Products: Can lead to problems during manufacturing Can be difficult to assemble May be recalled (SEE CPSC.org) Can be difficult to maintain May be unsafe (endanger or cause injury/death) to the consumer May be difficult to produce, assemble, not cost effective to produce (due to resources, part numbers, government regulations, customer Always look to design for fewer processes, fewer parts preferences, etc.) May be environmentally unfriendly Know what resources are available May be restricted by some countries May be obsolete (in decline phase of product lifecycle) Know what your organization can do and what they cannot May not be what the customer wants in FORM or FUNCTION
4 4 Product Fit Product Function Unfit Products: Life of product May be recalled (SEE CPSC.org) Performance of product (does what was intended) May be unsafe (endanger or cause injury/death) to the consumer May be difficult to produce, assemble, not cost effective to produce Serviceable (due to resources, part numbers, government regulations, customer Upgradeable preferences, etc.) Has features expected by customer May be environmentally unfriendly May be restricted by some countries May be obsolete (in decline phase of product lifecycle)
May not be what the customer wants in FORM or FUNCTION
Two Types of Product Design Design Process Conceptualization Ideation, initial Repetitive - the application of the design process to a new ideas product by using pieces of previously designed items or small variations from previous designs. Documentation Synthesis procedures, Modeling, drawings, records, First refinement, & plans Concept - the application of the design process for the creation of patents a new product that is unique with no similarity to any product Identify Problem currently produced.
Implementation Selection of Analysis operations, Prototyping & scheduling evaluation
(Lockhart and Johnson, 2000)
DEMING/SHEWHART CYCLE in Design Prototyping ID Problem/ Goals/objectives outlined “…the ultimate means for verifying the form, fit, and function of a product” (DeGarmo, Black & Kohser, 2003, p. 860) Design - Form An original model is constructed to evaluate operational Act to 4 Action Plan Improve 1 performance prior to the start of full production. Design ACT PLAN
Part of Evaluation stage
CHECK DO Three types: Virtual, rapid, actual Evaluate/Check Execute Plan- Results with 3 2 Generate Intended Plan / Prototype/Product Customer
5 5 Rapid Prototyping: Rapid Prototyping Techniques:
1. Stereolithography – photopolymer based – laser cured Cost-reduction practice in the design of new products – streamline to market 2. Selective Laser Sintering (SLS) – powder based
“Rapid prototyping (RP) methods assist in making the product development process cheaper and faster, which 3. Fused Deposition Modeling (FDM) – depositing of material can ultimately impact customer satisfaction and corporate profitability by helping the company get the product to market first” (DeGarmo, Black & Kohser, 2003, p. 860) 4. Laminated Object Manufacturing (LOM) – layers bonded & patterned CAD models are used, drawing is layered and then transformed into a physical model (prototype).
Cost Reduction at a Glance What is Overdesign?
“Cost reductions can be achieved by a thorough analysis of all Product is too bulky (big, too much) the costs incurred in each step in manufacturing a product” (Kalpakjian & Schmid, 2001, p. 1122) Materials are too high quality
“Designs are often modified to improve product performance, Products are made with unwarranted precision/quality take advantage of the characteristics of new materials, and make manufacturing and assembly easier, thus reducing costs” (Kalpakjian, Products are made with features that are unnecessary 1995, p. 1216) Remember: Don’t apply lean flow practices to a POORLY If a product functions well for an extended period of time designed part/product (infrequent repair), this may be the result of overdesign From You may be able to make design the consumers standpoint, this is a good product improvements that significantly reduce costs more than you can ever (Kalpakjian & Schmid, 2001) by applying other “lean” practices!
Possible Overdesign Causes Value Engineering (VE) (Value Analysis)
Uncertainties in design calculations, concerns in product safety - based Cost reduction method – extremely common in construction and mfg on intuition rather than experimentation/analysis (Kalpakjian& Schmid, 2001) “…engineers look for design changes that could reduce production costs and maintain quality and function” (DeGarmo, Black & Kohser, 2003, p. 1040) “Manufacturers are sensitive to the public image of their products in an expanding global marketplace. In fact, some products that require infrequent repair, such as washers, dryers, and automobiles, have been Seeks to minimize overdesign advertised as such in the public media. However, many manufacturers believe that if a product functions well for an extended period of time, it Each step in design, materials, processes involved in manufacturing a may have been overdesigned. In such cases, the company may consider product which performs all intended functions is produced at the downgrading the materials and/or the processes used. Some industries lowest possible cost (i.e. MAX performance per unit cost) have even been accused of following a strategy of planned obsolescence in order to generate more sales over a period of time” “…can be used to evaluate the cost of each manufacturing step relative (Kalpakjian, 1995, p. 15) to its contribution to the value of the product” (Kalpakjian& Schmid, 2001, p. 1106)
6 6 Value Engineering/Value Analysis (benefits) VE / VA
Significant cost reductions
Reduced lead times “Value analysis is a method for improving the usefulness of a product without increasing its cost or reducing the cost without Better quality reducing the usefulness of the product” (Schroeder, 2008, p. 47). Better performance Reduced weight/size VA is related to manufacturability Simplified parts Function/Performance Design for Manufacturing and Assembly (DFMA) is common Product Value = Cost/Price technique
Value Analysis VE Questions (Design) Can the product design be simplified without adversely affecting its Modular design enables great product variety with low component intended functions? variety Have all alternative designs been investigated? Can unnecessary features (or some of its components) be eliminated Standardization: Controlling number of parts that go into a product or combined with others? controls number of operations Can the design be made smaller or lighter? Are dimensional tolerances and surface finish specified necessary? Can they be relaxed? Parts = Complexity = Cost Will the product be difficult to assemble and disassemble for maintenance, repair, or recycling? Is the use of fasteners minimized? Reducing the number of product variations cuts down on tooling costs, Does each component of the product have to be manufactured in the handling costs, packaging costs, training costs, equipment/machine plant or on site? costs, etc. Are some of its parts commercially available as standard items from outside sources? (Kalpakjian & Schmid, 2001, p. 1124)
VE Questions (Materials) VE Questions (Processes)
Do the materials selected have properties that unnecessarily exceed Have all alternative manufacturing processes been investigated? minimum requirements and specifications? Are the methods chosen economical for the type of material, the Can some materials be replaced by others that are cheaper? shape to be produced, and the required production rate? Do the materials selected have the proper manufacturing Can the requirements for dimensional tolerances, surface finish, characteristics? and product quality be met consistently? Are the raw materials (stock) to be ordered available in standard sizes, Can the part be formed and shaped to final dimensions without dimensions, surface finish, and dimensional tolerances? requiring the use of material-removal processes? Are machining, Is material supply reliable? Are there likely to be significant price secondary processes, and finishing operations necessary? fluctuations? (Kalpakjian & Schmid, 2001, p. 1124) Is tooling required available in the plant or on site? Can it be purchased as a standard item?
Is scrap produced? If so, what is the value of the scrap?
… (Kalpakjian & Schmid, 2001, p. 1124)
7 7 Design Principles for Economic Design Guidelines (CR Opportunities) Production 1. Simplify part/product - reduce number of subassemblies req’d 1. Design should be simple to manufacture, assemble, recycle (environmentally 2. Specify broader dimensional tolerances - allow rougher conscious) surface finishes 2. Materials should be chosen according to their manufacturing characteristics 3. Use less expensive materials (suitability) 4. Find alternative manufacturing methods 3. Secondary/finishing/extra operations should be minimized 5. Use more efficient equipment/machines 4. Design should consider manufacturability 6. Purchase materials in forms/shapes that require the least 5. Manufacturers should anticipate possible hazards/misuses/injuries product amount of processing (plate, bar, round stock, tubing, wire, etc.) might cause (related to PokaYoke & Green/Environment) 7. Select processes that yield the least amount of scrap 6. Product should meet government safety standards/regulations 8. Select processes that require the fewest possible steps 7. Warning documentation addressing hazards should be carefully prepared 8. Records should be kept of ID numbers, dates, etc.
Design for Manufacturing & Assembly Design for Manufacturing & Assembly
(DFMA) (DFMA) (Guidelines) “It bears repeating to say that engineering must design components with knowledge of manufacturing processes” (Degarmo, Black, & Kohser, 2003, p. 779) Minimize part numbers - combine/eliminate parts when possible, make modular (standardize) “It is extremely important that the relationship between manufacturing (including assembly) and design be given careful consideration throughout the design phase. Changes can be made for Avoid moving parts - moving parts generates wear, heat, pennies in the design room that might cost hundreds or thousands of fatigue dollars later in the factory” (Degarmo, Black, & Kohser, 2003, p. 1039)
Reduce surface processing - time consuming “The greatest effect that DFMA has is in the reduction of total part count in a product. Reduction in part count leads to a reduction in total (Kraebber & Rehg, 2005) product cost and an increase in product reliability” (Kraebber & Rehg, 2005, p. 145)
Design for Manufacturing & Assembly Design for Manufacturing & Assembly
(DFMA) (Guidelines) (DFMA) (Guidelines)
Design for top-down assembly - take advantage of gravity = Maximize part symmetry - symmetrical parts are easy to fewer clamps, fixtures, less costly tooling handle and arrange
Improve assembly access - for tooling, access, without Make asymmetry obvious to user - to avoid damage, mistakes obstructed vision
Maximize part compliance - Use Geometric Dimensions and Optimize part handling - make parts rigid rather than flexible, Tolerancing (GDT), use practices that guide mating parts (e.g. have surfaces that allow for mechanical gripping tapers) (Kraebber & Rehg, 2005)
(Kraebber& Rehg, 2005)
8 8 Design for Manufacturing & Assembly DFMA (Fastening Concerns)
(DFMA) (Guidelines) Welding/Joining- Permanent, c an be expensive and requirements can be high
Holemaking - Bolts/nuts require hole alignment and processing Reduce mechanical fasteners - use snap fit design rather than (stapling does not require holemaking or alignment and is fast, but is screws, bolts generally for thin stock materials)
Access - Bolts/nuts require assembly access from two different sides Standardize fasteners - if multiple types of fasteners, simplify (screws require access from one) (reduce part variation) by choosing common sizes to minimize required tooling Riveting - Great strength, but permanent
Provide parts with integral self-locking features - use tabs, cam Snap-fits – Require elasticity of one component in an assembly
locks, indentations or projections for assembled parts (Degarmo, Black, & Kohser, 2003)
(Kraebber & Rehg, 2005)
Poka-Yoke Examples of Poka-Yoke
Developed by Shigeo Shingo – 1950’s Automobile power shuts off 30 seconds after key is removed (prevents battery drain) Shigeo claimed inspections don’t catch defects Coffee maker automatically turns off after 45 minutes (prevents potential fire hazard) Mistake Proofing (or Fail Safe) in Designs
Printer cartridge can only be inserted in one direction (prevents wrong Anticipating problems in: assembly) Safety, Assembly, & Operation Trigger cannot drop hammer on a firearm with an open breach Eliminating problems before they occur saves companies money (prevents misfire)
Good Design Product Design – Process Selection
Poka-yoke (mistake proofing) Selection of processes or material can eliminate the number of parts in a product, steps taken to produce a product, processes Eliminating need for tools (assembly, maintenance) needed to produce a product, and overall operations.
Eliminating need for routine maintenance In manufacturing and construction, various design strategies are Reducing scrap/material usage used to minimize these
Preventive/Predictability in wear Question: Can you think of any method used to minimize the number of processes, parts, steps, operations in your field of Reducing processes needed to make product (net shape) study?
9 9 Typical Net-Shape Processes References
Degarmo, E. P., Black, J. T. & Kohser, R. A. (2003). Materials and processes in manufacturing. 1. Powder Metallurgy (sintering, fusing power and heat treating) Hoboken, NJ: Wiley.
Kalpakjian, S. & Schmid, S. R. (2001). Manufacturing engineering & technology. Upper Saddle River, New Jersey: Prentice Hall. 2. Stamping (fine blanking)
Kalpakjian, S. (1995). Manufacturing engineering & technology. Upper Saddle River, New Jersey: Prentice Hall. 3. Plastic injection molding Lockhart, S. D. & Johnson, C. M. (2000). Engineering design communication. Upper Saddle River, New Jersey: Prentice Hall. 4. Near-net-shape forging/casting Rehg J. A.. & Kraebber, H. W. (2004). Computer integrated manufacturing. Upper Saddle River, New Jersey: Prentice Hall. 5. Laser/waterjet cutting Schroeder, R. G. (2008). Operations management: Contemporary concepts and cases. New York: McGraw-Hill Irwin.
10 10