1. PRODUCT DESIGN & PROCESS SELECTION

2. PRODUCT DESIGN
The process of defining all of the product characteristics
Product design defines a product’s characteristics of:
Materials,
Appearance,
Dimensions,
Tolerances, And
Performance Standards.

3. PRODUCT DESIGN – PROCESS
Idea Development
Product Screening
Preliminary Design
Final Design
Test Marketing
Commercialization

4. IDEA DEVELOPMENT
Someone thinks of a need and a product/service design to satisfy it’s customers, competitors, etc.,
All products begin with an idea whether from:
customers,
competitors or
suppliers
Idea developments selection affects
Product quality
Product cost
Customer satisfaction
Overall manufacturability – the ease with which the product can be made

5. PRODUCT SCREENING
Every business needs a formal/structured evaluation process: fit with facility and labor skills, size of market, contribution margin, break-even analysis, return on sales

6. DESIGN AND TESTING
Technical specifications are developed, prototypes built and test marketing is done with a smaller sample

7. FINAL DESIGN AND COMMERCIALIZATION
Final design based on test results, facility, equipment, material, & labor skills defined, suppliers identified.
The product is made available for all the target consumers.

8. FACTORS INFLUENCING PRODUCT DESIGN
Requirements of customers.
Availability and access to facilities.
Type and quality of raw-materials
Cost to price ratio.
Quality standards.
Availability of plant and machineries.
Substitutes
Reputation or goodwill of.

9. ISSUES LEGAL ISSUES PRODUCT LIABILITY INTELLECTUAL PROPERTY
Product liability is the area of law in which manufacturers, distributors, suppliers, retailers, and others who make products available to the public are held responsible for the injuries those products cause.
INTELLECTUAL PROPERTY
Intellectual property (IP) is a legal concept which refers to creations of the mind for which exclusive rights are recognized.

10. ETHICAL ISSUES
Assessing the impact of Design on consumer
Protection of Intellectual property
Privacy
Exposure to undesirable elements
Advertising of designs
Right to alter natural order
Whether design should be tested on Animals and humans
Sustainable Technology

11. ENVIRONMENTAL ISSUES
Greenhouse effect for Global warming
Ozone layer depletion
Tropical Deforestation
Water pollution
Resource consumption

12. PRODUCT SCREENING - TOOL BREAK EVEN ANALYSIS
Computes the quantity of goods company needs to sell to cover its costs
QBE = F/ (SP - VC)
QBE – Break even quantity
F – Fixed costs
SP – selling price/unit
VC – Variable cost

13. Break-Even Analysis: Graphical Approach

14. Break-Even Analysis
Compute quantity of goods that must be sold to break-even
Compute total revenue at an assumed selling price
Compute fixed cost and variable cost for several quantities
Plot the total revenue line and the total cost line
Intersection is break-even
Sensitivity analysis can be done to examine changes in all of the assumptions made

15. PROCESS Process is the Set of activities that taken together to produce a result of value to the customer.
PROCESS PLANNING – STEPS:
1. GOAL SETTING:
2. DEVELOPING THE PLANNING PREMISES:
3. REVIEWING LIMITATIONS:
4. DECIDING THE PLANNING PERIOD:
5. FORMULATION OF POLICIES AND STRATEGIES:
6. PREPARING OPERATING PLANS:
7. INTEGRATION OF PLANS:

16. PROCESS SELECTION
The development of the process necessary to produce the designed product.

17. PROCESS SELECTION INTERMITTENT PROCESSES:
Processes used to produce a variety of products with different processing requirements in lower volumes. (such as healthcare facility)
REPETITIVE PROCESSES:
Processes used to produce one or a few standardized products in high volume. (such as a cafeteria, or car wash)

18. Product-Process Grid

19. PROCESS SELECTION -CONSIDERATIONS
Product-Process Grid
Make or Buy
Flexibility of resources
Mix between capital & human resources
Degree of customer contact
Integration

20. Other Factors
Make or Buy- A firm’s Make-or-Buy choices should be based on the following considerations:
Strategic impact
Available capacity
Expertise
Quality considerations
Speed
Cost
Vertical integration refers to the degree a firm chooses to do processes itself- raw material to sales. Backward Integration means moving closer to primary operations. Forward Integration means moving closer to customers

21. Product Life Cycle
Series of changing product demand Consider product life cycle stages
Introduction
Growth
Maturity
Decline
Facility & process investment depends on life cycle

22. PROCESS DESIGN- FLOWCHART SYMBOLS
Examples: Giving an admission ticket to a customer, installing a engine in a car, etc.
Tasks or operations
Examples: How much change should be given to a customer, which wrench should be used, etc.
Decision Points 4

23. Storage areas or queues
Examples: Sheds, lines of people waiting for a service, etc.
Examples: Customers moving to a seat, mechanic getting a tool, etc.
Flows of materials or customers 4

24. Linking Product Design & Process Selection
Product design and process selection are directly linked
Type of product selected defines type of operation required
Type of operation available defines broader organizational aspects such as
Equipment required
Facility arrangement
Organizational structure

25. Linking Product Design & Process Selection con’t
Impact of Product Life Cycle:
Intermittent and repetitive operations typically focus on producing products in different stages of the product life cycle. Intermittent is best for early in product life; repetitive is better for later when demand is more predicable.

26. Linking Product Design & Process Selection, con’t
Impact of Competitive Priorities: Intermittent operations are typically less competitive on cost than repetitive operations. (Think “off the rack” vs. custom tailored clothing.)

27. Linking Design & Process Selection: Summary
Organizational Decisions appropriate for different types of operations

28. Process Performance Metrics

29. Process Performance Metrics
Process performance metrics – defined: Measurement of different process characteristics that tell us how a process is performing
Determining if a process is functioning properly is required
Determination requires measuring performance

30. Metrics Example:
At Zelle’s Dry Cleaning, it takes an average of 3 ½ hours to dry clean & press a shirt, with value-added time estimated at 110 min. Workers are paid for a 7-hour workday but work 5 ½ hr/day, accounting for breaks and lunch. Zelle’s completes 25 shirts per day, while the industry standard is 28 for a comparable facility.

31. Solution Process Velocity = (Throughput Time)/(Value-added time)
= (210 minutes/shirt)/(110 minutes/shirt) = 1.90
Labor Utilization = (Time in Use)/(Time Available)
= (5 ½ hr)/(7 hr) = .786 or 78.6%
Efficiency = (Actual Output)/(Standard Output)
= (25 shirts/day)/(28 shirts/day) = .89 or 89%

32. Design of Services
Service design is unique in that the service and entire service concept are being designed
must define both the service and concept
- Physical elements, aesthetic & psychological benefits
e.g. promptness, friendliness, ambiance
Product and service design must match the needs and preferences of the targeted customer group

33. Designing Services vs Products?
Services are different from manufacturing as they;
Produce intangible products
Involve a high degree of customer contact
Type of service is classified according to degree of customer contact

34. Service Design Matrix Service Characteristics Pure services
Quasi-Manufacturing
Mixed services
Service Package
The physical goods
The sensual benefits
The psychological benefits
Differing designs
Substitute technology for people
Get customer involved
High customer attention

35. WORK STUDY Work Study is a systematic examination of the methods or activities carried out during transformation of inputs into outputs.

36. Objectives Analyze existing process
Optimum utilization of men and material resources
Set standards for production
Improve productivity develop effective work methods
Increase work values
Bring in Ergonomics
Plan incentives
Implement safety measures

37. Applications Work Study Helps In Building
Better Transportation Models,
Better Process,
Better Supply Chain Systems,
Integrate Other Functions,
Implement New Technologies,
Better Working Environment, Etc.,

38. Techniques WORK STUDY WORK MEASUREMENT TIME STUDY MOTION STUDY
METHOD STUDY

39. Method Study
Method Study deals with the different tasks and techniques used to perform an activity hat convert input into outputs.

40. Objectives Analyze existing process
Optimum utilization of men and material resources
Set standards for production
Improve productivity develop effective work methods
Derive new methods
Increase work values
Bring in Ergonomics
Plan incentives
Implement safety measures

41. Method Study - Procedure
Select the work to be studied
Record all relevant information's
Analyze the recorded facts – Purpose, time, person, means etc.,
Develop new methods oto perform the tasks
Install and equip people resources
Control and Maintain

42. WORK MEASUREMENT
A systematic determination through the use of various techniques to analyze the effectiveness of physical and mental work in terms of work time in a specific task.
WORK MEASUREMENT studies the time taken for an established employee to carry out a work task, It assists in calculating the total cost of a good manufactured

43. Objectives Determine time required to perform a job
Determine the man power required to perform a job
Determine the materials and equipments required to perform a job
Determine actual inventory
Estimate actual lead time
Plan labour incentives
Establish effective labour control
Establish standards of performance

44. Elements of Work Measurement
Time Study
Work Sampling
Motion Study

45. Time Study
A technique for recording the time of working activities of a specialized work carried out under specified conditions and determining the time required for carrying out the work at desired level of performance

46. Time Study - Procedure Norma time = Basic Time * Performance Rating
Define the purpose ofm study
Study the excising methods, processes, etc.,
Study the time involved
Record the information
Observe the actual time
Estimate normal and standard time
Determine allowances
Norma time = Basic Time * Performance Rating
Standard Time= Norma Time + Allowances

47. Elements
Basic Time – Actual or observe time to perform one element of an activity
Performance Rating – Actual performance of an operator at different periods of time
Allowances – Additional time provided for delays at the work place
Standard Time – Total time taken to completing the activity of a work

48. Work Sampling
Work Sampling is a method of finding time of delay and work element to the total process by random observations.
A technique in which a large number of observations are made over a period of time with a group of machines, processes or workers. Each observation records what is happening at that instant and the percentage of observations recorded for a particular activity or delays is the measure of percentage of time during which that activity of delay occurs

49. Motion Study
Deals with the quantity of physical movement of human , material and machine assets within th e manufacturing plant

50. Productivity = Output / Input
Productivity is a economic measure of output per unit of input. Inputs includes men, money, machine, energy and materials while output is typically measured in terms of revenues and other components.
Productivity = Output / Input

51. Factors Influencing Human Technological Managerial Psychological
Political
Economical
Natural

52. How to calculate Productivity
Productivity = Total Output / Total Input
Labour Productivity = Total Output / Total Input in Labour Hrs
Capital Productivity = Total Output / Total Capital Input
Material Productivity = Total Output / Total Material Input
Energy Productivity = Total Output / Total energy input