Product design and process

selection
Product design and process selection
Idea development
◦ Technology push
◦ Marketing pull
Product screening
◦ Marketing criteria
◦ Financial criteria
◦ Operational criteria
Preliminary design and testing
◦ Prototyping
◦ Trial marketing
Final design
 Concurrent Engineering
•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.
CE decision-making
example
 Process Documentation using Flowcharts
Shampoo directions
Example: Any problems 1.Lather
with the following 2.Rinse
set of directions? 3.Repeat

Basic flowchart symbols

Begin or end

Lather
Information Begin Wet hair with shampoo
input shampoo warm water into hair

Rinse hair with

Operation Select bottle
warm water

Information Sha No No Hair Yes

output Information End
mpo clea
on bottle shampoo
o? n?
Que Yes
stion
yes/
no?
 Process Flow Diagram (PFD)
A process flow diagram is a mapping of the specific processes that raw materials,
parts, and subassemblies follow as they move through a plant.
Builds on the concept of flowcharting .
A more constrained version of the operation symbol used in flowcharting
1.Requires a resource
Activity 2.Resource has a capacity constrain
3.Adds value
Flow
1.Arrow indicates the flow of jobs
2.Multiple flow units (types of jobs) possible

Buffer or inventory location

Buff 1.Normally does not have a capacity
er 2.Multiple units possible

Debar Acceptable Acceptable

Tree Ste Scan Saw Lum
s k ms ber
RM WIP FG

Grind Chi
ps
FG
 The product life cycle
 Every product and
service follows a life
cycle that spans:
◦ Planning
◦ Introduction
◦ Growth
Sales ◦ Maturity
◦ Decline
 Healthy companies
Dollars

manage their product

Profit
and service offerings
to insure a balanced
portfolio
Plan Intro Growth Maturity Decline
Positioning Strategies
and the Product / Process Matrix

Process
Focus
Job Shop
Flow Pattern

Large Batch

Assembly Line

Product
Focus
Product Volume
 The process-focused Project Shop
Characteristics
1.Makes a one-of-a-kind product (volume = 1)
2.Uses general purpose equipment
3.Has informal relationships with many vendors
4.Very little vertical integration
5.Flexible layout often with factors of production moving to job
 The Job Shop
Characteristics
1.Makes many products in small volume
2.Uses general purpose equipment
3.Has informal relationships with vendors
4.Very little vertical integration
5.Departmentalized layout with chaotic flow
 The Large Batch
(Cell, Flow or Hybrid Shop)
Characteristics
1.Makes several families of products in moderate volume
2.Uses general purpose equipment often fixtured
3.Little vertical integration
4.Hybrid layout with flow lines
 The Assembly Line
Characteristics
1.Makes few products in large volume
2.Uses specialized high-volume equipment
3.Has formal relationships with vendors
4.May use vertical integration
5.Product-based layout with linear flow
 Process Decisions

Flexibility More resource flexibility &

More customer involvement
Flow Pattern

More vertical integration

& More capital intensity Efficiency

Product Volume
 Technology and the Product/Process Matrix
Greater need
Jumbled for flexibility

Process Choice
Dominant

Greater need
Technology decisions tend
Line for efficiency
to be long-term in nature
and greatly influence
which products and Low Medium High
services a firm is capable Product Volume
of providing to its
customers profitably.
 Managing the balance between efficiency and
flexibility to optimize customer service
performance: Product and Service Strategy

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THANK YOU