Program Management Quality & Change

Control
MGMT 5643
Session 2

DR. JERRY MCMAHAN

OVERVIEW
Review Of Assignment 2
Lecture: Quality Tree
Change Control
Preview Of Next Session
Review

OBJECTIVES
Typical Phases of Product Design
Development
Designing for the CustomerQuality
Starts Here!
Design for Manufacturability
Types of Processes
Process Flow Structures
Process Flow Design
Global Product Design and
Manufacturing

Typical Phases of Product Design

Development
Concept Development
Product Planning
Product/Process Engineering
Pilot Production/Ramp-Up

Concurrent Engineering
Defined
Concurrent engineering can be
defined as the simultaneous
development of project design
functions, with open and interactive
communication existing among all
team members for the purposes of
reducing time to market, decreasing
cost, and improving quality and
reliability
Concurrent engineering adds Risk

Concurrent Engineering(Continued)
Teams provide the primary integration
mechanism in CE programs
There are three types of teams

Program Management Team

Technical Team
Design-Build Teams
Time savings of CE programs are created by
performing activities in parallel

Designing for the Customer

House of Quality

Ideal Customer Product

Quality Function
Deployment

Value Analysis/
Value Engineering

Designing for the Customer:

Quality Function Deployment
Interfunctional teams from
marketing, design engineering, and
manufacturing
Voice of the customer
House of Quality

10
Correlation:

Designing
for the
Customer:

Easy to close

The McGraw-Hill Companies, Inc., 2004

Water resistance

Customer
Requirements

Energy needed
to close door
Door seal
resistance
Check force
on level
ground
Energy needed
to open door
Accoust. Trans.
Window

Engineering
Characteristi
cs

X = Us
A = Comp. A
B = Comp. B
(5 is best)
1 2 3 4

AB

XAB

A XB

X A

Target values

5
4
3
2
1

B
A
X

BA
X

Reduce force
to 9 lb.
Reduce energy
to 7.5 ft/lb.
Maintain
current level
Maintain
current level

10

Maintain
current level

Importance weighting

Technical evaluation
(5 is best)

Competitive evaluation

X AB

Doesnt leak in rain 3

No road noise

Strong positive
Positive
Negative
Strong negative

Stays open on a hill 5

Easy to open

Customer
Customer
requirements
requirements
information
informationforms
forms
the
thebasis
basisfor
forthis
this
matrix,
matrix,used
usedto
to
translate
translatethem
theminto
into
operating
operatingor
or
engineering
engineeringgoals.
goals.

Reduce energy
level to 7.5 ft/lb

The House
of Quality

B
A
X

B
X
A

BXA

BA
X

Relationships:
Strong = 9
Medium = 3
Small = 1

Designing for the Customer:

Value Analysis/Value Engineering (VA/VE)
Achieve equivalent or better
performance at a lower cost while
maintaining all functional requirements
defined by the customer
Does the item have any design features that
are not necessary?
Can two or more parts be combined into
one?
How can we cut down the weight?
Are there nonstandard parts that can be
eliminated?

Design for Manufacturability

Traditional Approach
We design it, you build it or Over the wall

Concurrent Engineering
Lets work together simultaneously

Design for Manufacturing and Assembly

Greatest improvements related to DFMA

arise from simplification of the product by
reducing the number of separate parts:

1. During the operation of the product, does

the part move relative to all other parts
already assembled?
2. Must the part be of a different material or
be isolated from other parts already
assembled?
3. Must the part be separate from all other
parts to allow the disassembly of the
product for adjustment or maintenance?

Types of Processes
Conversion (ex. Iron to steel)
Fabrication (ex. Cloth to clothes)
Assembly (ex. Parts to components)
Testing (ex. For quality of products)

Process Flow Structures

Job shop (ex. Copy center making a single copy of
a student term paper)
Batch shop (ex. Copy center making 10,000
copies of an ad piece for a business)
Assembly Line (ex. Automobile manufacturer)
Continuous Flow (ex. Petroleum manufacturer)

Exhibit
Exhibit5.10
5.10

I.
Job
Shop
II.
Batch
III.
Assembly
Line
IV.
Continuous
Flow

Low
Volume,
One of a
Kind

Few
High
Multiple
Major
Volume,
Products, Products,
High
Low
Higher StandardVolume Volume
ization
Flexibility (High)
Unit Cost (High)

Commercial
Printer
French Restaurant

These
Theseare
are
the
themajor
major
stages
stagesof
of
product
productand
and
process
processlife
life
cycles
cycles

Heavy
Equipment
Automobile
Assembly
Burger King
Sugar
Refinery

Flexibility (Low)
Unit Cost (Low)

Virtual Factory
Defined
A virtual factory can be defined as a
manufacturing operation where
activities are carried out not in one
central plant, but in multiple locations
by suppliers and partner firms as part
of a strategic alliance

Break-Even Analysis
A standard approach to choosing among
alternative processes or equipment
Model seeks to determine the point in
units produced (and sold) where we will
start making profit on the process or
equipment
Model seeks to determine the point in
units produced (and sold) where total
revenue and total cost are equal

Break-Even Analysis (Continued)

Break-even
Break-evenDemand=
Demand=

Purchase
Purchasecost
costofofprocess
processororequipment
equipment
Price
per
unit
Cost
per
Price per unit - Cost perunit
unit
oror
Total
Totalfixed
fixedcosts
costsofofprocess
processororequipment
equipment
Unit
price
to
customer
Variable
costs
Unit price to customer - Variable costsper
perunit
unit

This formula can be used to find any of its

components algebraically if the other
parameters are known

Break-Even Analysis (Continued)

Example:
Example: Suppose
Suppose you
you want
want to
to purchase
purchase aa new
new
computer
computer that
that will
will cost
cost $5,000.
$5,000. It
It will
will be
be used
used
to
to process
process written
written orders
orders from
from customers
customers who
who
will
will pay
pay $25
$25 each
each for
for the
the service.
service. The
The cost
cost of
of
labor,
labor, electricity
electricity and
and the
the form
form used
used to
to place
place the
the
order
order is
is $5
$5 per
per customer.
customer. How
How many
many customers
customers
will
will we
we need
need to
to serve
serve to
to permit
permit the
the total
total
revenue
revenue to
to break-even
break-even with
with our
our costs?
costs?

Break-even
Break-even Demand:
Demand:
=
= Total
Total fixed
fixed costs
costs of
of process
process or
or equip.
equip.
Unit
Unit price
price to
to customer
customer Variable
Variable costs
costs
=5,000/(25-5)
=5,000/(25-5)
=250
=250 customers
customers

Process Flow Design

Defined
A process flow design can be defined
as a mapping of the specific processes
that raw materials, parts, and
subassemblies follow as they move
through a plant
The most common tools to conduct a
process flow design include assembly
drawings, assembly charts, and
operation and route sheets

Example: Assembly Chart (Gozinto)

4
5
6
7

From
FromExhibit
Exhibit5.14
5.14

Lockring
Spacer, detent spring

SA-2

Rivets (2)

A-2

Spring-detent
A-5
Component/Assy Operation
Inspection

Example: Process Flow Chart

Material
Received
from
Supplier

No,
Continue

Inspect
Material for
Defects

Defects
found?

Yes

Return to
Supplier for
Credit

Global Product Design and

Manufacturing Strategies
Joint Ventures
Global Product Design Strategy

Measuring Product Development

Performance
Performance
Measures
Dimension
Time-to-market
Time-to-market

Productivity
Productivity

Quality
Quality

Freq.
Freq.Of
Ofnew
newproducts
productsintroduced
introduced
Time
to
market
introduction
Time to market introduction
Number
Numberstated
statedand
andnumber
numbercompleted
completed
Actual
Actualversus
versusplan
plan
Percentage
Percentageofofsales
salesfrom
fromnew
newproducts
products

Engineering
Engineeringhours
hoursper
perproject
project
Cost
of
materials
and
tooling
Cost of materials and toolingper
perproject
project
Actual
plan
Actualversus
versus plan

Conformance-reliability
Conformance-reliabilityininuse
use
Design-performance
Design-performanceand
andcustomer
customersatisfaction
satisfaction
Yield-factory
and
field
Yield-factory and field

Question Bowl
Which of the following is the first phase
of the typical phases of product
development?
a. Product/process engineering
b. Product planning
c. Concept development
d. Pilot production
e. Ramp-up

Answer: c. Concept development

Question Bowl
Which of the following has been
primarily used to speed the
completion of product development
programs?
a. Concurrent engineering
Answer:
a.
b. Job shop
Concurrent
c. Value analysis
d. Break-even analysisengineering (The
e. Value engineering primary purpose of

CE is to reduce time
it takes to complete
a product.)

Question Bowl
Which of the following is primarily
focused on getting the voice of the
customer into design specifications in
product development?
a. Concurrent engineering
b. Value engineering
c. DFMA
d. Quality function deployment
e. None of the above

Answer: d. Quality function deployment

Question Bowl
Which of the following is the first step in
building a House of Quality in product
development?
a. Develop a list of customer
requirements for the product
b. Concept development
c. Pilot production/Ramp-up
d. Concurrent engineering
e. None of the above

Answer: a. Develop a list of customer

requirements for the product

Question Bowl
Of the following abbreviated concepts
which derive the greatest product
improvements as a result of
simplification of the product by
reducing the number of separate
parts?
a. CE
b. DFMA
Answer: b. DFMA
c. QFD
(Design
for
d. VA/VE
Manufacturing and
e. CAD

Assembly)

Question Bowl
Which of the following is an example of
a Continuous Flow type of process
flow structure?
a. Fast food
b. Grocery
c. Hospitals
d. Chemical company
e. None of the above

Answer: d. Chemical company

Question Bowl
What is the break-even in demand for a
new process that costs $25,000 to
install, will generate a service product
that customers are willing to pay $500
per unit for, and whose labor and
material costs for each unit is $100?
a. 400 units
b. 250 units
Answer: d. 62.5
c. 100 units
units (25,000/(500d. 62.5 units
e. None of the above 100)=62.5)

The Business of Scope

Changes
Source: Project Management, 11th Ed. Chapter 22, Harold
Kerzner, Ph. D.

Change Management
Change Management Starts at The Top
Scope Changes Have to Be Managed
Requires Vetting
A Cost Benefit Analysis May Help

Configuration Management Required!

Validate Configuration Through Audits,
Review & Inspections
Functional Audit (FCA)
Physical Audit (PCA)

External Scope Changes

Scope changes have been viewed as a way to increase
profits on a project
Often a project would be underbid in order to secure the
contract and then profits made by continual scope
changes
Further gaps in statements of work were not pointed out
or were intentionally misinterpreted

Upstream Changes, Downstream

Effects
Scope changes made
upstream would
often surface
downstream with
another contractor
Not always an issue
if work was
performed in a
sequential order

Contacto
rA
Contract
or B
Contacto
rC

Upstream Changes, Downstream

Effects
However if they
were working
partially or fully
in parallel, then
scope changes
upstream could
have major
implications
downstream

Contractor A
Contractor B
Contractor C

Need for Business Knowledge

Changes that
increase risk, greatly
extend payback time,
or are made for the
sake of image should
be avoided
Scope changes
should be based upon
a solid business
foundation, not upon
technical value

Process
Improveme
nt

Process
Improveme
nt

Potential
Spin-offs

Scope
chang
es

Revenue or
Profits

Changes in
Technology

Timing of Scope Changes

Radical scope changes require either breakthrough
technology or the design of a new platform, and focus
more on creativity than execution
Another issue is if they should be introduced
incrementally or clustered together as an enhancement
project

Business Need for a Scope Change

Scope changes should have a valid reason such as;
Assessment of the customers needs and the value
added by the change provides
Assessment of market needs including time to make the
change, payback period, ROI, and if final selling price
fits in market

Business Need for a Scope Change

Assessment on the impact on length of product life
cycle
Assessment on the competitions ability to implement
their own scope change in order to compete
Is there liability associated with the change and what is
its impact

Reasons to not Approve Scope

Changes
Cost of scope change is excessive and makes the final
cost of the deliverable non-competitive
Return on investment occurs to late
Competition is too tight and the change is not worth the
added risk

Reasons to not Approve Scope

Changes
Obstacles and technical complexity is too great
Legal and regulatory risks increase
Scope changes violates company policy on
nondisclosure, secrecy, and confidentiality agreements

Ethics Of Scope Change

Everybody is doing itRichard Nixon
Defense
The Customer Should Have known
BetterAre you paid to be their Expert
Is the Scope Change Costly To the
Enterprise?
Yours
Theirs

Reasonable Man Rule

Configuration Management
Scope Change Impact of Configuration Management

Does The Project Provide an End-Item

Is There A Production Run of the Item
How Will the Project Cut-in Configuration Changes
How Will Those Changes Be Documented

Configuration Management
Continued

Validating A Successful Configuration

Change
Configuration Audit
Physical Audit
Match Physical Characteristics of the Item To The
Documentation
Includes Technical Description & Operations
Guides

Functional Audit
Similar, but looks at Functions, not Physical

Question Bowl
Which of the following are Dimensions
of Design Quality?
a. Performance
b. Durability
c. Aesthetics
d. All of the above
e. None of the above

Answer: d. All of the above

Question Bowl
Approximately what percentage of every
sales dollar is allocated to the cost of
quality?
a. Less than 5%
b. About 10%
c. Between 15 and 20 %
d. More than 30%
e. None of the above

Answer: c. Between 15 and 20 % (for cost of

reworking, scrapping, repeated service, etc.)

Question Bowl
Which of the following are
classifications of the cost of
quality?
a. Appraisal costs
b. Prevention costs
c. Internal failure costs
d. External failure costs
e. All of the above

Answer: e. All of the above

Question Bowl
Which of the following are functions of
a quality control department?
a. Testing product designs for
reliability
b. Gathering product performance data
c. Planning and budgeting the QC
program
d. All of the above
e. None of the above

Answer: d. All of the above

Question Bowl
Which of the following is a Critical
Customer Requirement (CCR) in the
context of a Six Sigma program?
a. DMAIC
Answer:
e.
None
of
b. DPMO
the above (The CCR
c. PCDA
is the criteria that is
d. DOE
e. None of the above used to define

desired quality.
Processing a loan in
10 days is an
example of a CCR.)

Question Bowl
The DMAIC cycle of Six Sigma is similar
to which of the following quality
management topics?
a. Continuous improvement
b. Servqual
c. ISO 9000
d. External benchmarking
e. None of the above

Answer: a. Continuous improvement

Question Bowl
The A in DMAIC stands for which of
the following?
a. Always
b. Accessibility
c. Analyze
d. Act
e. None of the above

Answer: d. Analyze (Define, Measure,

Analyze, Improve and Control)

Question Bowl
Which of the following analytical tools
depict trends in quality data over
time?
a. Flowcharts
b. Run charts
c. Pareto charts
d. Checksheets
e. Cause and effect diagrams

Answer: b. Run charts

PREVIEW OF NEXT SESSION

Go Over Assignment 3
Lean & The Toyota Experience
Overview of Six Sigma,
Benchmarking
ISO 9000
PREVIEW OF UPCOMING SESSIONS
REVIEW

REVIEW
Review Of Assignment 2
Lecture: Quality Tree
Change Control
Preview Of Next Session
Review