Unit II

Development of New Products, Value

Analysis & Waste Reduction
Contents
• Generic New Product Development Process
• Value Analysis & Value Engineering
• Overview of Lean Management, 5S, Poka yoke, Kaizen
• Overview of Six Sigma
• Overview of Lean Six Sigma
Generic Product Development Process
Planning

Concept Development

System-level design

Design detail

Testing and Refinement

Production ramp-up
Planning
- Begins with corporate strategy
- Precedes project approval
- Includes assessment of technology developments and market
objectives
- Output is the project mission statement
Concept Development

- Concept: a description of the form, function, and features of a

product

- Needs of the target market are identified

- Alternative product concepts are generated and evaluated

- One or more concepts are selected for further development and

testing
System-level design
- Definition of the product architecture

- Decomposition of the product into subsystems and components

- Final assembly scheme for the production system is usually defined

- Output:
• Geometric layout of the product

• Functional specifications for each subsystem

• Preliminary process flow diagram

Design detail
- Complete specification of the geometry, materials, and
tolerances for all parts

- Identification of all the standard parts to be purchased

from suppliers

- Process plan is established

- Tooling is designed

- Output:
Drawings describing the geometry of each part and its tooling
Specifications of purchased parts

Process plan
Testing and Refinement
- Construction and evaluation of multiple preproduction versions of
product
Same geometry and material as production version
Not necessarily fabricated with the actual production processes

- Prototypes tested to determine if the product will work as

designed
Production ramp-up

- Product is made using the intended production system

- Need to train workers and resolve any remaining problems

- Products may be supplied to preferred customers for evaluation

- Transition to ongoing production is gradual

The Generic Product Development Process
Examples of Successes in Design
• Dell has developed a set of highly specialized systems that support its make-to-
order operating strategy. Dell has created a set of proprietary logistical processes
that range from the design of its web page through its information systems
infrastructure (a process that has proved difficult for others to imitate). Dell owns
the data about what people are buying and in which combinations. It also has been
vertically integrated into final assembly facilities that are designed to efficiently
produce in lot sizes of one. Finally, while it outsources components, Dell uses
longer-term relationships with its suppliers and links them into its information
system to support quick response.
Value Analysis/Value Engineering (VA/VE)
• Purpose is to simplify products and processes

• Objective is to achieve better performance at a lower cost while

maintaining all functional requirements defined by the customer
• Does the item have any design features that are not necessary?

• Can two or more parts be combined into one?

• How can we cut down the weight?

• Are there nonstandard parts that can be eliminated?

Lean Management
• The philosophy of “Lean Management” mainly developed
in late 1980s and early 1990s in Japan.
• Japanese manufacturers have developed a set of
management tools and techniques which have addressed
the customer requirements of better quality products at
lower prices (i.e. higher value for price), through focus on
identification, gradual reduction and finally elimination of
all wastes. This is called as “Lean Management”.
• An enterprise/organization which has successfully
implemented it is known as a “Lean Enterprise”.
Lean Management
Types/forms of wastes (MUDA)
• Defect (leading to rework/rejection/scrap)
• Unwanted transportation
• Excess Inventory
• Over production
• Waiting
• Over processing
• Unwanted material handling
• Unutilized Human Talent
Lean Management
Sources of wastes
• Large lot production
• Inefficient set-up procedures
• Long production change-over times
• Long processing times
• Equipment breakdown
• Poor layout of plant & machinery
• Insufficient work procedures & standards
• Poor shop-floor coordination & control.
Lean Management
Wastes can be eliminated by
• Small-lot production
• Set-up time reduction
• Maintaining & improving equipment
• Pull production & material management systems
• Standardization
Kaizen
• Kai – Change Zen – Good
• Kaizen is an important component in Toyota Production System.
• It is a Japanese term that means Change for the Better. In the context
of business organization it implies making continuous improvement
involving everyone in the organization in a structured manner.
• Kaizen leads for continuous improvement
• A 5S campaign is frequently an operational aspect of most of kaizen
projects.
Minimizing Waste – 5S
“Good factories develop beginning with the 5S’s.
Bad factories fall apart beginning with the 5 S’s.”
- Hirouki Hirano

Japanese Translation English

Seiri Proper arrangement Sort
Seiton Orderliness Simplify
Seiso Cleanliness Sweep
Seiketsu Cleanup Standardize
Shitsuke Discipline Sustain
Poka Yoke
• Poka Yoke is a Japanese term for mistake – proofing of operations.
Shingo proposed this method while he improved the TPS. The basic
principle behind this method is that several defects that creep into
an operation are usually avoidable. Errors and defects gave a cause
and effect relationship. If inadvertent errors in any process are not
recognized and methods are not established to eliminate them they
will eventually manifest as defects. Only by a careful scrutiny of the
process it is possible to identify the root causes of the defects.
Six Sigma
• A philosophy and set of methods companies use to eliminate defects
in their products and processes
• Seeks to reduce variation in the processes that lead to product defects
• The name, “Six Sigma,” refers to the goal of no more than four defects
per million units
Six Sigma Methodology
Developed by General
Define, measure, analyze, Electric as a means of
improve, and control focusing effort on quality
(DMAIC) using a methodological
approach

Overall focus of the

Seeks to reduce the
methodology is to
variation in the processes
understand and achieve
that lead to these defects
what the customer wants
DMAIC Cycle
Define - identify customers and their priorities

Measure - determine how to measure the process and

how it is performing

Analyze - determine the most likely causes of defects

Improve - identify means to remove the causes of

defects

Control - determine how to maintain the improvements

Cause-and-Effect Diagram (Fishbone Diagram)
Six Sigma Roles and Responsibilities
• Executive leaders must champion the process of improvement

• Corporation-wide training in Six Sigma concepts and tools

• Set stretch objectives for improvement

• Continuous reinforcement and rewards

• Levels of Competency / Proficiency: White/Yellow Belt (Lowest),

Green Belt, Black Belt, Master Black Belt (Highest).
Thank You