Needs Identification Advance Product Planning Advance Design Detailed Engineering Design Prodn. Process Design And Development Product Evaluation & Improvement Product Use & Support

NEW PRODUCT DESIGN/ PRODUCT DEVELOPMENT PRCESS Product: A product is anything that is capable of satisfying A felt need. A new product is the one which is truly innovative and is significantly different from other existing products. The development of a new product passess through SEVEN stages. Needs identification

Advance Product planning

Advance design

Detailed engineering design Prodn. Process Design and development

Product evaluation & improvement

Product use & support

1. Needs Identification: Needs identification must be preceded by idea generation. New product Development starts with an idea. Idea emanates from • Customers •Top Management • Staff of the marketing department • Production deptt. • Engineering section

2. Advance Product Planning or feasibility study: At this stage conceptual design of the product shall emerge. For Example the Conceptual design for a pen would articulate its length, Weight, strength, shape, colour, retail price and so on. in the market. Concept design is finalised by the production and operation Personnel, joining together.

It includes: • preliminary market analysis ( sales projections) •Crating alternative concepts for the product •Clarifying operational requirements •Establishing design criteria and their priorities •Estimating logistics •Distributing and maintaining the product 3. Advance Design It involves detailed investigation by basic and applied researchers Into technical feasibility and also identifying the trade-offs in Product design. 4. Detailed Engineering Design It involves a seroes pf emgomeeromg actovotoes tp develop a Detailed definition of the product including its subsystems and Components, materials, sizes and so on.

The engineering process involves analysis, experimentation and Data collection to find design that meet several design objectives: • design for function • design for reliability • design for maintained (economically maintained) • design for safety • design for producibility (produced at the intended cost & volum

9. Production Process Design and Development

In this stage it is not only plans for material acquisition, production Warehousing, transportation and distribution but also it involves Planning for other supporting systems such as controls, information And human resources.

6. Production Evaluation & Improvement After the product has been launched, it needs constant evaluation And improvement.

7. Product use and Support In this stage it considers support for consumers who use the Product. Support system might • Educate users on specific application of the product • Provide warranty and repair services • Distribute replacement parts or • Upgrade the product with design improvements

Since every product passes through a life cycle and the life cycle Can have a direct bearing on a company’s survival.

Product Life Cycle: Product life cycle is the pattern of demand throughout the Product’s life ( over time). (similar patterns and stages can identified for the useful life of a process) The life cycle of a product consists of four stages: • Introduction • Growth • Maturity and • Decline The life cycle curve shows all the above stages are shown below:

Maturity Decline

Growth Demand/ Sales volume Introduction (Rs.) Profit

O loss

Time in Year

Fig. Characteristic of the Product Life Cycle

Table: Characteristics of Stage in Product Life Cycle Introduction Growth Characteristics of Customers Competition

Innovators

Sales

Low levels, Then rising

Raid growth

Profits

None

Strong, then At a peak

Maturity

Mass Mass market market Litter, if any Increasing Intense

Decline Loyal customers Decreasing

Slow, no Decline annual growth Declining Low/none annually

PROCESS DESIGN Process design means the complete delineation and description of specific steps in the production process and the linkages among the steps that will enable the production system to produce products of the desired quality, in the required quantity, at the time, customers want them and at the budgeted cost. Process design is necessary to manufacture new products. Process planning is intense because• Business or market conditions change • Technologically superior machines become available or • As other changes occur

Interrelationship of Product Design and Process Design Product Ideas Feasibility Studies Product Design

Process Design

Advanced Product Planning Advance Design Production Process Design & Development Product Evaluation & Improvement Product Use and Support

Organising the process flows Relation of process design to process flow Evaluating the process design Continuous interaction

Produce and market new products

PRODUCT RELIABILITY Product reliability as the probability that the product will perform as intended for a prescribed lifetime under specified operating conditions. Reliability is the first, ahead of comfort, price, style and many other product features. Unreliability is reflected in the product’s failure rate. This is shown in the following curve.

Reliability Engineering determines the least height (failure rate) and greatest length (useful performance life) for each new product based on  Financial  Technical and  Consumer considerations What reliability is required of each subcomponent to achieve the overall product reliability ? Which subcomponents should be used to most economically meet this required reliability ? The above two questions are quite relevant because often a final product does not perform properly unless all of its subcomponents function correctly.

Therefore, the reliabilities of individual subcomponents must be greater than the reliability desired for the final product. Product reliability is usually expressed in terms of a probability. Once reliability has been achieved subcomponents can be selected on the basis of economic considerations.

Failure rate

Initial Use failures

Useful performance life

Wear-out failures

Fig. Product Failure curve

Process Technology/Manufacturing Process Technology New Products are not physical realities until they are manufactured. Process Technology(PT): PT refers to the equipment, people, and systems used to produce a firm’s products and services Process technology decisions relate to – ∀• Organizing the process flows, ∀• Appropriate product-process mix, ∀• To meet strategic requirements, and ∀• Evaluating automation and high technology process.

Types of Process Technology Project Technology

Job shop Process Technology

Batch

Assembly line Continuous Manufacturing

Project Technology:

A process technology suitable for producing one-of-a-kind (unique) products. e.g. General construction company (Flat for the consumers), Construction of bridges, roads, dams etc. Since the products cannot be standardized the conversion process must be flexible in its equipment capabilities, human skills, and procedures. Conversion Process features –  Problem solving  Teamwork and co-ordinated design and  Production of unique products

Job shop Technology: A process technology suitable for a variety of custom designed products in small volumes. (It is appropriate for manufacturers of small batches of many different products) e.g. Jobs done by a Printing Shop, Hospital, Machine shop, furniture company etc. Batch Technology: A process technology suitable for a variety of products in varying volumes. For the batch facilities the system must be flexible for the low-volume/high variety products but the higher volume products can be process differently. e.g. Producing some batches for stocking rather than for customer order.

Assembly Line: A process technology suitable for a narrow range of standardized products in high volumes. e.g. Laundry Appliances Continuous Flow Technology: A process technology suitable for producing a continuous flow of products. Material and products are produced in continuous, endless flow, rather than in batches or discrete units. Products is highly standardised It affords high-volume, around the clock operation with capital-intensive  Specialised automation. e.g. Postal Services, Telephone company, Oil Refinery etc.  

So there are 36 (3x2x2x3) different computer systems from which to choose. The modular design concept gives consumers a range of product options and and advantages in manufacturing and product design. Now, rather than storing inventories of all 36 fininshed computer systems, only some of which will be needed we insteasd store just the subsystems or modules. Thus, when a particular computer system is demanded the producer can focus on quickly retrieving and assembling the appropriate modules into the desired configuratios and avoid the high costs of idle finished goods inventories. • Material planning and inventory control can be simplified

PROCESS TECHNOLOGY LIFE CYCLE Process technology life cycle are related product life cycles. Over a period of time, manufacturing cost per unit diminishes in mature products. Product life cycle starts from the stage of ‘start up’ and ends in the stage of ‘decline’. The through-put volume, rates of process innovation and degree of automation will change from the stage of start-up to the stage of decline. Through-put volumes and automation are low at start-up and high during the maturity stage.

Assembly line Batch Manufacturing Cost/unit

Continuous flow

Job shop

Time Fig. Process Life Cycle

Product – Process Mix

With changes in products, market requirements and competitions, the equipments, processes and human resources also will change. If the process changes are not carried out to accommodate process life cycles, products and processes become incompatible, resulting in competitive disadvantages.

Product – Process Mix Product Life Cycle stages Process life Cycle stages

1.Job shop prodn.

1.low volume 2. Rapid growth, & low low volume, standardisation multiple products

3. Maturity, few major products, high volume

4. Commodity, high volume, high standardisation of products

Void

A

2. Batch prodn.

B

3. Assembly line prodn. 4. Continuous

flow prodn.

C

Void

Feasible zone

D A – Commercial printer, B – Heavy machinery C – Automobile assembly, D – Sugar Mill

Process Technology Trends Flexible Manufacturing Systems (FMS) FMS is a computer controlled process technology suitable for Producing a moderate variety of products in moderate volumes With high quality. e.g. once the machine has finished one batch, th computer signals The next quantity or component and the machine automatically Repositions and retools accordingly. Meanwhile the just-finished Batch is automatically transferred to the next work station in its Routing.

Characteristics of an FMS • Produce a moderate variety of products in modest volumes with high quality • Reduces operating costs • Lower direct labor costs • Lower manufacturing costs The benefits are not free. An FMS requires very large capital Investments in equipment, planning and control systems and human Resources.

An FMS is appropriate when: 13. All products are variation of a stable basic design 14. All products utilize the same family of components 15. The number of components is only moderate (10 to 50) 16. The volume of each component is moderate (1,000 to 30,000 units) but in lot sizes as small as one unit

Goal of an FMS The goal is to produce a moderate variety of products in moderate, Flexible quantities. An FMS is more flexible than conventional high-volume production System but less flexible than a job shop that specialises in one-of-a-kind products.

Computer-integrated manufacturing functions Physical systems design

Database Mgmt. Prodn. Planning & control Mgmt. Information System

Drafting

Computer-aided design ComputerAided Manufacturing

Engg. design Information Mgmt.

Factory

Decision Support system

Automated Material Handling

Manufacturing database

Prodn.

Quality Assurance

Robotics & machines tools

Manufacturing Engg.

Group Technology Process Planning Robotics

Distributed Routine numerical Manufacturing control

Computer – Integrated Manufacturing (CIM) CIM is a computer information systems utilizing a shared manufacturing database for engineering design, manufacturing, engineering, factory production, and information management. CIM centers around a shared database for four primary manufacturing functions: • Engineering design • Manufacturing design • Factory production and • Information Management The database stores all product and process related information required to produce a component or product. It contains information about machine, tools, materials, manufacturing steps quantities demanded, due dates and vendors.

Computer-Aided Design (CAD) CAD is a computer software programs that allow a designer to carry out Geometric transformations rapidly. CAD uses computational and graphics software and has substantially enhanced design productivity. Alternative designs can be posed and evaluated more quickly. Once a design is satisfactory it is stored in the database and can be transmitted electronically to manufacturing engineering, production and purchasing. What does CAD accomplish ? Drafting productivity improves by a factor of three or more and Engineering lead time shrinks.

Computer-aided Manufacturing (CAM)

CAM is a manufacturing systems utilising computer software progra That control of the actual machine on the shop floor.

The computer programs can be stored in the manufacturing databas Retrieved, updated, and revised as components are added or redesign And transmitted electronically in-house or externally by satellite to other divisions and facilities.

Benefits of CAM • More reliable than the skilled operator • product quality is more consistent • closer tolerance • low labor cost • less time is required Too much CAM can be costly as suggested by Aerospace manufactur Due to error in computer program.

Group Technology GT is way of organising and using data for components that have Similar properties and manufacturing requirements. Characteristics such as Length, Diameter, type of material and Density are recorded for each component in the manufacturing system. The computer then sort for all similar components.

Design of Services and Service Processes Today the idea is that everything sold falls somewhere on the continuum or service/product dominance. To be competitive organisation have to organise differences in the product/service elements of their market offerings and develop process technologies accordingly. Design of Services Design of services involves the same stages as the design of Products. Differences between Product and Service Design Services that do not include a physical component do not require the Engg., Testing, components analyses, the process technology involves different issues and considerations than those of products

Theater

Nursing

Air-travel Television

Product Dominant entities

Fast food shop Automobiles

House

Service dominant entities

Balanced entity Equally weighted Between product And services

Dog food Salt

Fig. Scale of service Vs. product dominance

Services Process Technologies Process technologies for services are at least as diverse, and perhaps More so, than product process technologies. Services vary in the amount of customer contact and in the intensiveness of labor Vs. Capital. Service process technologies vary accordingly.

Trends in Service Automation Office automation (OA) is a computer based system for managing information resources. Word processing, generating reports, and handling data may all be part of OA. e.g. automated banking, electronic grocery scanners, and the like.

Value Engineering/ Value Analysis It is one of the techniques of cost reduction and cost prevention. It ensures the necessary function at minimum cost without compromising on quality, reliability, performance and appearance. The system which developed as a result of a project led by L.D.Miles of the GEC of the U.S.in the year 1947, after five years of work and an expenditure of $3 millions and which aimed at “finding the most effective method of improving the value of the product” is known as Value Analysis (VA). e.g. use of asbestos required for flooring In 1954, the US Navy Bureau of ships applied VA to cost improvement during the design stage and termed it as Value Engineering (VE).

In India, the Indian Value Engineering Society (INVEST) was formed in 1977. Now it is applied in both public and private sectors industries in India. When to apply Value Analysis ? • • • • •

Company’s product show decline in sales Company’s prices are higher than those of its competitors Raw material’s cost has gone up suddenly New designs are being introduced the cost of manufacturing is rising disproportionate to the volume of production • Rate of return on investment has a falling trend • unable to meet its delivery commitments

Value Analyis Vs. Value Engineering VA – VA is the application of a set of techniques to an existing product With a view to improving its value. It is a remedial process. VE – It is the application of exactly the same set of techniques to a new Product at the design stage, project concept when no hardware exists To ensure that bad features are not added. It is a preventive process. Aims/Objectives: • • • • • • •

Simplify the product Use cheaper and netter materials Modify and improve product design use efficient processes. Reduce the product cost. Increase the utility of the product by economical means Save money or increase the profits

Value Engineering Procedure The steps of VE are : 5. Blast 8. Create 10. Refine

(I) identify the product (ii) collect relevant information (iii) define different functions (iv) Different alternatives (v) critically evaluate the alternative (vi) develop the best alternative (vii) Implement the best alternative

VE should be done with brain storming sessions Principles of Brain Storming 1. A quality idea comes from quantity of ideas

1. Creative ideas emerge from unconventional thinking 2. Spontaneous evaluation of ideas affects imaginative thinking and retards the flow of creative ideas. 4. Hitch-hiking on the ideas often lead to better ideas 5. Creeativity is a regenerative process and the recording of ideas as they emerge help to generate more ideas 7. When ideas cease to flow, short diversions enable the mind to rebound with new ideas Advantages: • It is a much faster cost reduction technique • It is a less expensive technique • It reduces prodn. Costs and adds value to sales income of the product ApplicationsMachine tool industries, Auto industries, import substitutes etc.

Standardisation Standardisation is the process of establishing standards or units of Measure by which quality, quantity, value, performance etc. may be Compared and measured. Standardisation Procedure: Steps9. With the help of market research, sales statistics etc. determine what is tobe sold in future 11. Define a range of products 12. From the range of products, select the minimum variety of components matching the range for manufacturing An approach to standardisation necessitates the classification of Materials and components A system of classification and codification is necessary for the design Of new products within the defined range.

Advantages of Standardisation: • Fewer specifications • Better quality products • Increased margin of profit • Easy availability of spares • Minimum inventory cost • Quantity discount are possible due to purchase of large volume of materials Applications• Finished products, e.g. cars and T.Vs. • Sub assemblies and components e.g. automobile gearboxes • Material e.g direct materials (plain carbon and alloy steels etc.) • Production equipments e.g. machine tools, press, welding equipment etc.

Make or Buy Decisions A company can satisfy the customers wither by making the required Products using the facilities which are available within the company Or buying them from a subcontractor.

Criteria for Make or Buy • Criteria for Make: 1. Finished product can be made cheaper by the firm than outside suppliers 2. Finished product is being manufactured by the firm because other firms are unable so meet the demand 3. For maintaining quality control etc. • Criteria for Buy: 1. High investment is required 2. The company does not have facilities to make 3. Non-availability of skilled personnel 4. Patent or other legal barriers 5. Demand for the product is either temporary or seasonal

Approaches for Make or Buy Decisions 3. Cost analysis 4. Economic analysis 5. Break-even analyis 7. Cost Analysis In this case cost of making a product and that of buying a product Are calculated. Then, the alternative which involves the minimum cost Is suggested for implementation. 12. Economic Analysis Inventory models are considered for economic analysis of make or Buy of a product. The inventory models are: • Purchase Model • Manufacturing Model

The formula for calculating Economic Order Quantity(EOQ) and Total cost (TC) of each model are as follows: Purchase Model

Manufacturing Model

Q1 = √ (2C0D/Cc )

Q2 = √ [2SD/Cc(1-D/R)]

TC = DP + (DC0/ Q1) + (Q1x Cc)/2

TC = DP + (DS/ Q2 ) + Cc (R-D) Q2/2R

Where, D – demand/year,

P – Purchase price/unit

Cc – carrying cost/unit/year,

C0 - Ordering cost/order

S – Setup cost/setup, Q1 – Economic Order Quantity,

R – Production rate (units/year) Q2 – Economic Production size

Break-even Analysis For any organisation, for manufacturing a product it has to incur total Cost. Total cost is comprise of fixed cost (FC) and variable cost (VC). Fixed cost is independent of production volume(output) whereas, The variable cost is a function of the production volume of the product. Break-even Point – The point at which TC is equal to the TR or sales Revenue. At this point there is no loss or gain to the organisation. This is analysis is known as Break-even analysis. BEP = FC / (Selling price per unit – Variable cost per unit) Sales

Costs

Profit TC

B A

VC FC

Loss

O

C

Unit of sales per period