CAD

Computer-aided design (CAD) is the use of computers to interactively design products

and prepare engineering documentation. CAD uses three-dimensional drawing to save time and
money by shortening development cycles for virtually all products (see the 3-D design photo in
the Regal Marine Global Company Profile that opens this chapter). The speed and ease with
which sophisticated designs can be manipulated, analyzed, and modified with CAD makes
review of numerous options possible before final commitments are made. Faster development,
better products, and accurate flow of information to other departments all contribute to a
tremendous payoff for CAD. The payoff is particularly significant because most product costs
are determined at the design stage.
One extension of CAD is design for manufacture and assembly (DFMA) software, which
focuses on the effect of design on assembly. For instance, DFMA allows Ford to build new
vehicles in a virtual factory where designers examine how to put a transmission in a car on the
production line, even while both the transmission and the car are still in the design stage.
CAD systems have moved to the Internet through e-commerce, where they link
computerized design with purchasing, outsourcing, manufacturing, and long-term maintenance.
This move also speeds up design efforts, as staff around the world can work on their unique work
schedules. Rapid product change also supports the trend toward “mass customization” and, when
carried to an extreme, allows customers to enter a supplier’s design libraries and make changes.
The result is faster and less expensive customized products. As product life cycles shorten,
designs become more complex, and global collaboration has grown, the European Community
(EU) has developed a standard for the exchange of product data (STEP; ISO 10303). STEP
permits 3-D product information to be expressed in a standard format so it can be exchanged
internationally.
CAM:
Computer-aided manufacturing (CAM) refers to the use of specialized computer
programs to direct and control manufacturing equipment. When CAD information is translated
into instructions for CAM, the result of these two technologies is CAD/CAM. The combination
is a powerful tool for manufacturing efficiency. Fewer defective units are produced, translating
into less rework and lower inventory. More precise scheduling also contributes to less inventory
and more efficient use of personnel.
A related extension of CAD is 3-D printing. This technology is particularly useful for
prototype development and small lot production (as shown in the photo above). 3-D printing
speeds development by avoiding a more lengthy and formal manufacturing process, as we see in
the OM in Action box “3-D Printers Hit the Mainstream.”
Virtual Reality Technology
Virtual reality is a visual form of communication in which images substitute for the real
thing but still allow the user to respond interactively. The roots of virtual reality technology in
operations are in CAD. Once design information is in a CAD system, it is also in electronic
digital form for other uses, such as developing 3-D layouts of everything from retail stores and
restaurant layouts to amusement parks. Procter & Gamble, for instance, builds walk-in virtual
stores to rapidly generate and test ideas. Changes to mechanical design, layouts, and even
amusement park rides are much less expensive at the design stage than they are later.