Planning Products for Production

1. Planning Products for Production An Introduction to the Paperwork R. Lindeke, Ph.D. IE 3265

2. Topics • Introduction to the job • The preliminary Form – the parts list • The production design forms • Assembly Charts (-- from disassembly) • Typically a place to test alternatives • The Indented BOM or Manufacturing Processing Tree • Lists components, sub assemblies and the final assembly per a given assembly scheme • BOM = bill of materials which is an expanded and detailed parts list • Routes (flow charts) and Operations sheets • List general process flow and details of production steps

3. Starting Out • As an Industrial Engineer/Manufacturing Engineer or Manager: • We determine best processing practices for any product • We design production schemes to minimize time and cost • We design alternative to meet manpower and equipment availability • We need these analyses to best operate our current or changing production systems

4. So a Product Has arrived -- • Create a drawing/sketch or Digital photo of the product in Disassembly – should indicate part numbers of individual components

5. Next we generate a Parts List

6. Parts List: • It allows us to perform our make – buy analysis for all components • It becomes a part of the product package we are going to ship to our customer • It provides a listing of components we may need to maintain in our repair and service departments

7. Next we Develop an Assembly Chart • More than one can and should be developed • Advantages and disadvantages (as related to our physical resources and labor pool) should be considered • It is likely that several assembly methods will be developed into production techniques!

8. Typical Assembly Chart: • Shows: • Primary Components • Subassemblies and sub-assembly points • Assembly points • Inspection Points

9. Leads to Manufacturing Processes Tree (or indented BOM)

10. On MPT: • Lowest Level shows purchased components • Then Machined stages (1 or more) • Then low level Sub-assemblies • To High-level Sub-assemblies • At the top is the finished product

11. More on the MPT: • It lists each stage of a components assembly life • Starts (at the lowest level) with purchased components • Lists all of the potentially inventoried intermediate steps (raw, semi-finished to finished components, sub-assemblies, packing materials, etc.) • It is the principle document to control our M.R.P. and inventory system!

12. BOM – an example: • Much Different from Parts List! • Lists each stage of a products life from raw material to finished product • Indicates where each semi-finished components on thru to each subassembly are “leveled” in the final product • Contains many more entries than a parts list

13. Many Companies also Create Precedence Diagrams too! The Precedence diagram – when times are attached to nodes or arcs – can be used to determine critical paths and study methods to ‘crash’ the production stream

14. Routings and Operations Sheets

15. Routers -- • These are developed for products that move through our processing areas (typically castings, forgings and machined components) • List tooling requirements, special needs and expected time (per part or batch) to setup and complete each operation • They can be though of as a “Road-map” for a production planner

16. Typical Operation Sheet:

17. Operation Sheets: • These would add significant details for each row in the router • As such they would be resident as an instruction sheet at each production location to be visited along a router. • In machining they would list recommended feeds and speeds as well as tool setup and fixturing requirements

18. Operation Processes Sheet

19. Op. Process Sheet • This tool adds details to the assembly ideas as represented by the assembly diagram • It is needed to compute lead times and forms a critical part of the development of the MRP and explosion calculus needed by a manufacturer

20. Value Engineering • Value Stream Mapping or Value engineering are methods for analysis of product designs to reduce overall costs while increasing customer performance • Value is often defined as the ratio of Function/cost where Function consists of product performance & customer delivery • To the Customer if Performance and Delivery are higher relative to cost, a product, process or service delivers more Value (is of Higher Quality)

21. Defining Value Engineering: • Value engineering (VE): A set of steps to deliver the required functions of a component or product at lowest cost while meeting quality, performance, and reliability specifications (as demanded by the customer) • VE is a systematic approach to eliminate any unnecessary cost of an item that does not add to its required function. It does not simply reduce cost by using cheaper substitutes or lesser quantities. Instead, its methodology centers on the following questions: What must it do? What alternative material or method can perform the same function equally well? This is function analysis: the principal component in VE.

22. Ideas on Value Engineering: • Fundamentally it is a series of steps by which an interdisciplinary team evaluates a design (for a service, product or process) to ensure that the essential functions of the design are provided at the least overall cost. Or simply it is a process to take deliberate actions to improve cost effectiveness • Minimizing Costs (achieving Cost Effectiveness) includes: • Cost Reduction • Cost Avoidance • Increasing Sales (from existing customers!) • The VM/VE action team should include: • Design specialists • Marketing specialists • Customers (if possible) • Manufacturing (or delivery professionals) • Purchasing Specialists • Quality Specialists

23. Comparison Analysis Matrix: Hummm … Let go with Idea B its got the best Value ratio!

24. Criteria Analysis Matrix – To assess Value Index * Importance measure in achieving value ((ability to deliver) * (Need wt.))

25. Developing a Value Graph Importance Target Comp B Comp A Value Target Comp C Comp D Cost Target Comp E

26. Value Target Analysis

27. Where do we go? • Typically we can’t afford to study all components • Select those that have greatest cost reduction potential • Here Components A and E • High Value Items (like Component B) can be studied for Function Improvement – • perhaps by increasing its cost impact • Goal might be to keep overall system cost equal to original

28. Literature References – focus on V.E. • David K. H. Chua, “Value Improvement Methods,” Civil Engineering Handbook, 2nd ed, Ch. 7, CRC Press, 2003. • R. Terry Hayes, “Value Management,” Maynard’s Industrial Engineering Handbook 5th ed., Ch 13.3, KB Zandin, ed., McGraw Hill, 2001. • J. M. Walker, “Product Design,” Maynard’s Industrial Engineering Handbook 5th ed., Ch 13.1, KB Zandin, ed., McGraw Hill, 2001. • “Quality Function Deployment . . .,”  http://www.qfdi.org/, Sep 20,2005. • S. Thomas Foster, Managing Quality, An Integrated Approach, 2nd Edition, Pearson Prentice Hall, 2003. • Warren Brussee, Statistics for 6 Sigma Made Easy!, McGraw Hill, 2004. • F. M. Gryna, “Product Development,” Juran’s Quality Control Handbook, 4th ed., Ch 13, J.M. Juran & F. M. Gryna, eds., McGraw Hill, 1988.