p roducts p lanning and p rocess s election beni asllani university of tennessee at chattanooga...

PRODUCTS PLANNİNG AND PROCESS SELECTİON

Prepared by Şevkinaz GümüşoğluPrepared by Şevkinaz Gümüşoğlu using different references about POMusing different references about POM

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Planning new products and geting them to market quickly is the challenge facing manufacturers in industries .

In our changing world today customers demand that a company’s offerings be individualized to meet particular meets, situations and lifestyles.

They want product and services of superior quality available promptly. The firms requirements are innovation, flexibility, improvement, new practical competencies, design and redesign ways. They must orientate themselves to their customers in a new way.

Management must developed and meet the customer’s need by using the available resources and the technological capabilities of the organization.

New-product design is crucial to the survival of most firms. While a few firms experience little product change, most firms must continually revise their products. In fast-changing industries, new-product introduction is a way of life and highly sophisticated approaches have been developed to introduce new product.

Product design is seldom the responsibility of operations functions but operations is greatly affected by new-product introduction. Operations is on the “receiving end” of new-product introduction. At the some time, new products are constrained by existing operations and technology.

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Therefore, it is extremely important to understand the new product design process and its interactions with operations. Product decisions affect each of the decision making areas of operations. Therefore they should be closely coordinated with operations to ensure the operation is integrated with prod. Design.

There are three strategies for new-product introduction process:

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Market-driven: According to this view, “You should make what you can sell” In this case, new products are determined by the market with little regard to existing technology and operations process. Customer needs are the primary basis for new-product introduction. Customer want products and services of superior quality available promptly. The requirements are for innovation, flexibility, quality based on active listening to customer so as to determine their concerns. Being prepared to deliver on such requirements will require companies to cultivate new practical competencies, to redesign the ways they do their work through business processes and to orient themselves to their customers in a new way.

Technology-driven: This approach would suggest that “ You should sell what you can make” Accordingly, new products should be derived from production technology. This view is dominated by vigorous use of technology and simplicity of operations changes.

Interfunctional view: New-product introduction is interfunctional in nature and requires cooperation among marketing, operations, engineering and other functions Using this approach the new-product design will fall some where between “making what you can sell” and “selling what you can make”, as shown in figure

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The top manager of miraculously successful Sony

is saying; “ Our plan is to lead the public to new product rather than ask them what they want. The public does not know what is possible but we do.” No customer expressed a need for a Walkman sound system, but soon after Sony invented it, every one had to have music with them wherever they most. A similar example is air condition.

All enterprises today must use quick-connect electronic interfaces to coordinate product creation resource chains (CAD). Chrysler reduced its product development cycle from over 60 months to 36 month or less in the late 1980 s. Nowaday this cycle is about 12-18 month in the automotıve industry.

Copyright 2006 John W

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Chrysler old chairman Le Iacocca as declaring “We got to do cars differently. We got to do modular stuff.”

These approaches is required;New Product idea Product Design Rapid Prototyping Rapid Tooling Usuability Production Design Industrial Design Firms Prototyping companies Standard Communication interfaces, Design Files

of CAD software for Product Creation. Manufacturing companies supported CAM

softwareto produce designed files of CAD

MAJOR FUNCTİONS OF PRODUCT PLANNİNG

Desingning for the customer; ind. design Reducing Time-to-Market;speed Improving Quality of Design;QFD Product Development:generating new pro.ideas Desing Process;linking desing and

manufacturing, design for manufacturability, process selection

Special Considerations in Service Design

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FORM AND FUNCTİONAL DESİGN


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Form Design how product will

look? Functional Design

reliability maintainability usability

RAPİD PROTOTYPİNG

Build a prototype form design functional design production design

Test prototype Revise design Retest

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USABİLİTY

Ease of use of a product or service ease of learning ease of use ease of remembering how to use frequency and severity of errors user satisfaction with experience

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PRODUCTİON DESİGN Simplification

reducing number of parts, assemblies, or options in a product

Standardizationusing commonly available and

interchangeable parts Modularity

combining standardized building blocks, or modules, to create unique finished products

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Design SimplificationDesign Simplification

(b) Revised design(b) Revised design

One-piece base & One-piece base & elimination of elimination of fastenersfasteners

(c) Final design(c) Final design

Design for Design for push-and-snap push-and-snap assemblyassembly

(a) Original design(a) Original design

Assembly using Assembly using common fastenerscommon fasteners

MEASURE DESİGN QUALİTY


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% of revenue from new products or services

% of products capturing 50% or more of market

% of process initiatives yielding a 50% or more improvement in effectiveness

% of suppliers engaged in collaborative design

% of parts that can be recycled

% of parts used in multiple products

% of parts with no engineering change orders

Average number of components per product

Things gone wrong (TGW)

QUALİTY FUNCTİON DEPLOYMENT (QFD)

Translates voice of customer into technical design requirements

Displays requirements in matrix diagramsfirst matrix called “house of quality”series of connected houses

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A SERİES OF CONNECTED QFD HOUSES

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House House of of

qualityquality

Product characteristics

A-1

Pro

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char

acte

rist

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Parts Parts deploymentdeployment

Part characteristics

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Par

t ch

arac

teri

stic

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Process Process planningplanning

Process characteristics

A-3

Pro

cess

ch

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Operating Operating requirementsrequirements

Operations

A-4

HOUSE OF QUALİTY

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Trade-off matrix

Design characteristics

Customer requirements

Target values

Relationship matrix

Competitive assessment

Imp

ort

ance

11 22

33

44

55

66

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SS = SilverstoneMG = MirorrglideT = Titanium

COMPLETEDHOUSE OF QUALİTY

BENEFİTS OF QFD

Promotes better understanding of customer demands

Promotes better understanding of design interactions

Involves manufacturing in design process Breaks down barriers between functions and

departments Provides documentation of design process

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Product Selection

Product is the structuring of competent parts or activities so that as a unit they can provide a specified value. Product specification is typically an engineering function. In service industries requirement. Design, production an marketing costs are reduced by standardizing and simplifying the product. After prototype units one designed and produced, the products are further analyzed and tested to see how well the quality, performance and costs conform to the design objectives. Simplification may take place to reduce unnecessary variety in the product line by discussing the number and variety of product produced.

Product selection are influenced by;1.The firm’s resource and technology base2.The market environment3.The firm’s motivation to use capabilities to meet the need of the market place.

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Product-Mix Decision

Within the product-line grouping, decision must be made to select which mix of products to in view of costs, capacity and other limitation. Linear programming is a useful technique for assisting in product-mix decisions.It applies to situations where there firm has a demand for whatever quantity of two or more products it can produce. Another typical application is for the selection of the least costly mix of raw materials .

Linear ProgrammingLP is a mathematical technique for maximizing or minimizing a linear objective function, subject to linear constraints. It has wide variety of applications. It assumes that cost and revenue values are known (certainty) profits from various activities are additive (additivity) it doesn’t allow negative production values (non-negativity)

It has widespread application such as capital budgeting, line balancing, planning and scheduling.

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1-Graphical solution method: For the simple linear problems, the easiest procedure is the graphical method.Example1. A chemical firm produces automobile cleaner X and polisher Y and realizes $10 profit on each box of X and $30 on Y. Both products require processing through the same machines A and B, but X requires 4 hours in A 8 in B, where as Y requires 6 hours in A and 4 in B. During the forthcoming week machines A and B have 12 and 16 hours of available capacity, respectively Assuming that demands exists for both products, how many boxes of each should be produces to realize the optimal profit P?

First step: Formulate the problem in ten of linear objective function and linear const. X: No.of cleaner X to be produced.Y: No. of polisher Y to be produced.Objective function is:Maximize P = $10 x + $30yThe constraints are:

4x + 6y 128x + 4y 16Also x and y 0

in two dimensions.

We begin by constructing a graph that represents the LP

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Second step: Variables are X and Y. The constraint.Are plotted as equalities. We use a ruler to make a heavy horizontal line for the X axis and a heavy vertical line for the Y axis.To graph:A: if x=0 y=2

if y=0 x=3B: ifx=0 y=4

ify=0 x=2

Note that the graph established a feasible region bounded by the explicit capacity const of A and B and the implicit constraints that production of x>0 and production y>0

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Third step: The slope of the objective function.P =10x+30y

The standard slop intercept form of a linear equation is

Y= mX + bwhere m is the slope of the line 8that is, change in Y pen unit change in x) and b is there Y intercept.

Expressing our objectives in this form , we have.30 y = -10x +PY= (-1/3) x + P/30

The slope = -1/3; that is, the line decreases one unit in Y for every three positive units of X. This is plotted at any convenient spot within the feasible solution region. We could plot a similar line for any other value of Z. These profit lines are parallel.

Fourth step: The slope of the objective function is moved away from the origin until restrained by the furthermost intersection of A and the implicit constraint x>0. The optimal solution will always be at a corner in the feasible region. This corner will be the last point in the feasible solution region

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Fifth step: The arrow point to the solution, within is determined by the x and y coordinates at time co. In this example x=0 y=2 P = $10 (0) + $30(2) = $60

4(0)+6(2) 12 12=128(0)+4(2) l6 816

In this example the firm should produce no cleaner and two boxes of polisher for a profit $60. We can see from the graph, the constraint imposed by machine B (8x+4y <16) has no effect, for it is the 12 hours of machine A (4x+6y<12) that are constraining production of the more profitable polisher. The graph also reveals that profit would continue to increase if more hours could be made available on machine A up to the point of doubling output (to x=0 end y=4) At this point, the time available from machine B would become constraining

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GRAPHICAL SOLUTION METHOD EXAMPLE A company is already producing some products.

However there are some idle capacities of the facilities. There are three plants. The idle capacities in terms of labor hours per week are as follows

The management wants to utilize the unused capacities by producing two new products.

Product-1: An 8 foot glass door with aliminum framing

Product-2: A 4x6 double hung window with wood-framing

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Plant Idle Capacity(hours/week) Plant -1 4Plant -2 12Plant -3 18

The products are produced in batches Plant-1 produces aliminum frames Plant-2 produces wood frames Plant-3 produces glass and assembles the

products The unit profits per products are 3000

and 5000 respectively. The labor hours required to produce

different parts of the products at different plants are as follows :

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PlantPlant

Production Time per Batch Production Time per Batch (hours)(hours)

Product -1Product -1 Product-2Product-2

Plant -1Plant -1 11 00

Plant-2Plant-2 00 22

Plant-3Plant-3 33 22

Objective (Goal)Objective (Goal) To maximize total profit

Decision VariablesDecision Variables What do we have to decide on? What are the variables that we can control ?

We have to decide on amounts of products to be produced.

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produced be to2-roductofnumberthe:x2 P

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ConstraintsConstraints

Resources are limited

4x1

122x2

18x23x 21

4 hours available at Plant -1

12 hours available at Plant -2

18 hours available at Plant-3

Objective Function Objective Function

21 x5 x3Z Total profit to be maximized

0x,0x 21

x1

x2GRAPHİCAL SOLUTİON

0xand0for x spaceSolution 21

x1

x2

4

41 x

x1

x2

4

6

122 2 x

x1

x2

4

6

1823 21 xx

x1

x2

4

6

1053 21 xxZ

x1

x2

4

6

1053 21 xxZ

2053 21 xxZ

x1

x2

4

6

3053 21 xxZ

x1

x2

4

6

3653 21 xxZ

EXAMPLE The Primo Insurance Company is introducing two new

product lines: special risk insurance and mortgages. The expected profit is $5 per unit on special risk insurance and $2 per unit on mortgages. Management wishes to establish sales quotas for the new product lines to maximize total expected profit. The work requirements are as follows:

(a) Formulate a linear programming model for this problem.

(b) Use the graphical method to solve this model.5-38


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X1= no. of special risk insurance X2= no. of mortgage. ZMax = 5X1+2X2

s.t. 3X1+2X2<=2400X2<=8002X1<=1200X1,X2>=0

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p roducts p lanning and p rocess s election beni asllani university of tennessee at chattanooga...

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