PRODUCTION MANAGEMENT , PRODUCT DESIGNES.

1. Production Management

2. Learning Objectives
• Define product design and its strategic impact
on organization
• Describe steps to develop a product design
• Using break-even analysis as a tool in selecting
between alternative products
• Identity different types of processes and
explain their characteristics

3. Product Design
• Product design – the process of defining all of the companies
product characteristics
– Product design must support product manufacturability (the ease with
which a product can be made)
– Product design defines a product’s characteristics of;
• appearance,
• materials,
• dimensions,
• tolerances, and
• performance standards

4. Design of Services versus Goods
• 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

5. Product & Service Design
• Product design and process selection affects
– Product quality
– Product cost
– Customer satisfaction
– Overall manufacturability – the ease with which
the product can be made

6. The Product Design Process
• Step 1 - Idea Development
- Someone thinks of a need and a product/service design to satisfy it
e.g. customers, marketing, engineering, competitors,
benchmarking, reverse engineering
• Step 2 - Product Screening
- Every business needs a formal/structured evaluation process
e.g. fit with facility and labor skills, size of market, contribution margin,
break-even analysis, return on sales
• Step 3 – Preliminary Design and Testing
- Technical specifications are developed, prototypes built, testing starts
• Step 4 – Final Design
- Final design based on test results, facility, equipment, material, & labor
skills defined, suppliers identified

7. Traditional Approach
Each function did its work and passed it to
the next function

8. Traditional Approach
Traditional Approach tend to work in
water tight compartments.
The product or service design
involves-
• Customer
• marketing department
• product or service designers
• production or operation team
• Purchase department and the
Suppliers.

9. Traditional Approach
These Approach suffers from lack of coordination & integration.
• The marketing team identifies the customer’s needs and passes on
the requirement to the design team.
• The design team invariably feel that the requirements as projected
by marketing team are unrealistic in terms of available technology
& resources. They produce a design based on their perceptions.
• When the design is received by manufacturing team, they modify it
further to suit manufacturing process.
• The purchase department poses its own problems about the
difficulty of procuring materials as specified in the design.
• The suppliers add to the confusion by expressing inability to supply
to the specifications.
Each team modifies the design specifications to suit its requirements.

10. Concurrent Design
• All functions form a design team working
together to develop specifications, involve
customers early, solve potential problems,
reduce costs, & shorten time to market
• Design team have better integration and
coordination are formed with representatives of
all the departments concerned .

11. Simplification
• The concept of simplification is closely related
to standardization.
• Simplification is the process of reducing the
variety of products manufactured.
• It is concerned with the reduction of product
range, assemblies, parts, materials and design.

12. Advantages of Simplification
Following are the advantages of simplification:
1. Simplification involves fewer, parts, varieties and
changes in products; this reduces manufacturing
operations and risk of obsolescence.
2. Simplification reduces variety, volume of remaining
products may be increased.
3. Simplification provides quick delivery and better after-
sales services.
4. Simplification reduces inventory and thus results in
better inventory control.
5. Simplification lowers the production costs.
6. Simplification reduces price of a product.
7. Simplification improves product quality.

13. Standardization means producing maximum variety
of products from the minimum variety of
materials, parts, tools and processes. It is the
process of establishing standards or units of
measure by which extent, quality, quantity, value,
performance etc., may be compared and
measured.
• It is the tool to promote the use of minimum no.
of parts to serve the maximum no. of purposes
consists with -
• the economical Mfg,
• Min. whole life cost and
• The quality and reliability necessary to ensure
optimum effectiveness.
Standardization

14. Standardization
Standardization leads to –
• Increase productivity by avoiding unnecessary
engineering design.
• Reduction of inventories, both of materials,
semi-finished, and finished products.
• Elimination of unnecessary waste
• Reduction in price; hence expansion of the
market.
• Reduction of repair and maintenance costs.

15. Advantages of Standardization
1. Benefits to Design Department
(a) Fewer specifications, drawings and part list
have to prepared and issued.
(b)More time is available to develop new design
or to improve established design.
(c) Better resource allocation
(d)Less qualified personnel can handle routine
design work.

16. 2. Benefits to Manufacturing Department
(a) Lower unit cost.
(b) Better quality products.
(c) Better methods and tooling.
(d) Increased interchangeability of parts.
(e) Better utilization of manpower and equipment.
(f) Accurate delivery dates.
(g) Better services of production control, stock
control, purchasing, etc.
(h) More effective training.

17. 3. Benefits to Marketing Department
(a) Better quality products of proven design at
reasonable cost leads to greater sales volume.
(b) Increased margin of profit.
(c) Better product delivery.
(d) Easy availability of sales part.
(e) Less sales pressure of after-sales services.

18. 4. Benefits to Production Planning Department
(a) Scope for improved methods, processes and
layouts.
(b) Opportunities for more efficient tool design.
(c) Better resource allocation.
(d) Reduction in pre-production activities.

19. 5. Benefits to Production Control Department
(a) Well proven design and methods improve
planning and control.
(b) Accurate delivery promises.
(c) Fewer delays arise from waiting for materials,
tools, etc.
(d) Follow-up of small batches consumes less
time.

20. 6. Benefits to Purchase and Stock Control Department
(a) Holding of stock of standard items leads to
less paper work and fewer requisitions and
orders.
(b) Storage and part location can be improved.
(c) Newer techniques can be used for better
control of stocks.
(d) Because of large purchase quantities
involved, favorable purchase contracts can be
made.

21. 7. Benefits to Quality Control Department
• (a) Better inspection and quality control is
possible.
• (b) Quality standards can be defined more
clearly.
• (c) Operators become familiar with the work
and produce jobs of consistent quality.