COST,

MANUFACTURABILITY,
AND QUALITY
A samsung manager noted that 70 to 80 of
quality , cost and delivery time is determined in
the initial stages of product development . This
is the one reason for the company 's obsession
with reducing complexity early in the design
cycle .As a result Samsung has lower
manufacturing cost, higher profit margins;quicker
times to market ; and , more often than not, more
innovative products than it's competition.
 • Simplifying the design can often improve cost as
well as quality.
MERCEDES BENZ

• For example:

BMW LEXUS
DESIGN FOR MANUFACTURABILITY (DFM)

• Is the process of designing a product for efficient

product at the highest level of quality.
DESIGN GUIDELINES FOR
QUALIT Y ASSURANCE
DESIGN QUALITY AND SOCIAL
RESPONSIBILITY
• Safety in consumer product represents a major issue
in design and certainly an important part of a
company's public responsibilities. Liability concern
cause many companies to forgo certain product
development activities.
• For example:

Unison Industries. Inc. of Rockford, Illinois.

According to the THEORY of strict liability,
anyone who sells a product that is
defective or unreasonably dangerous is
subject to a liability for any physical harm
caused to the user, the consumer or the
property either.
The principal issue is whether a defect, direct or
indirect, exists.

A plaintiff need prove only that

1.the product was defective
2.the defect was present when the product changed
ownership and;
3.the defect result in injur y
MANAGERS SHOULD ADDRESS THE FOLLOWING
QUESTION?
• Is the product reasonably safety for the end user?

• What would possibly go wrong with it?

• Are any needed safety devices absent?

• What kind of warning labels or instructions should be included?

• What would attorneys call"reasonable foreseeable use"?

• What are some extreme climatic or environmental conditions for which

the product should be tested?

• What similarities does the product have with others that may have
encountered previous problems?
Pressures from environmental groups clamoring for "socially
responsive" designs, states and municipalities that are
running out of space for landfills, and consumers who want
the most for their money all cause designers and Managers
to look carefully at the concept of DESIGN - FOR -
ENVIRONMENT or (DFE)
Deming's Chains Improve Quality
Reaction
Costs Decrease

Productivity
Improves

Captures the Market

with Better Quality
and lower price

Stay in Business

Provide jobs and

more jobs
In the 1960s and 1970s the United States became as known
as the (Throw away society)

DESIGN FOR DISASSEMBLY promise to bring back

easy, affordable product repair .
For example :

Whirlpool corporation is developing a new

appliances for repairability, with it's parts
sorted for easy coding
Streamlining the Product Development Process

≈ the importance of speed in product development cannot be

overemphasized . To succeed in highly competitive market,
companies must churn out new product quickly . In 1990 the
former Digital Equipment Corp.

•For example:

Was about to launch a new generation of computer disk drive

An approach that alleviates these problems is called
Concurrent engineering, or Simultaneous
engineering.
DESIGN REVIEW
• Is to stimulate discussion, raise questions, and generate new
ideas and solutions to help designers anticipate before they
occur.

• (3) THREE MAJOR STAGES:

• PRELIMINARY

• INTERMEDIATE

• FINAL
PRELIMINARY DESIGN REVIEW - establishes early
communication between marketing, engineering, manufacturing
and purchasing personnel and provides better coordination

INTERMEDIATE REVIEW - takes place to study the

design in greater detail to identify potential problems and
suggest corrective action.

FINAL REVIEW - is held , materials list, drawing, and other

detailed design information are studied with the purpose of
preventing costly changes after production setup .
DESIGNING PROCESSES FOR QUALITY

The design of the processes that produce and deliver goods

and services can have a significan impact on cost (and hence
profitability), flexibility (the ability to produce the right types an
amounts of products as customer demand or preferences
change), and the quality of the output

For example:

in producing a new, very small CD player, Sony had to develop

Department or some cross-functional group A basic approach to process
design is suggested by Motorola:

1. Identify the product or service: What work do I do?

2. Identify the customer.Who is the work for?

3. Identify the supplier:

What do I need and from whom do I get it?

4. Identify the process:

What steps or tasks are performed?
What are the inputs and outputs for each step?

5. Mistake-proof the process.How can 1 eliminate or simplify tasks?

What "poka-yoke" (Le, mis- take-profing) devices (see Chapter 14) can I use?

6. Develop measurements and controls and improvement goals: How do I

evaluate the process? How can I improve further?
• SPECIAL CONSIDERATION IN SERVICE PROCESS DESIGN

• The fundamental differences between manufacturing and ser vice processes

deser ve special attenin process design.

• This aspect is especially impor tant because suppor t processes are basically
common examples of ser vice processes are preparing an invoice, taking a
telephone a credit card, and checking out of a hotel.

• First, the outputs of ser vice processes are not as well defined, as are
manufactured products. For example even though all banks offer similar tangible
goods such as checking,

• Second, most ser vice processes involve a greater interaction with the customer,
of ten making it easier to identif y needs and expectations.
THANK YOU