FPA - Lec3 لاقbreak even

3/3/2020
Fayoum University
Faculty of Engineering
Mechanical Engineering Department
FACILITIES PLANNING
Lec_2: Product Design & Process Planning
Mohammed Abdelghany
Assistant Lecturer – Mechanical Engineering Department
E-mail/ [email protected]
Tel./ 01144876702
Product design, process design, and schedule design

Key Input Data for Facility Planning
1. What is to be produced? (Products or services)

Answers obtained from:
2. How are the products to be produced? (Processes/ activities)
3. How much of each product will be produced? (quantities/ sales

volume)
4. When are the products to be produced?
5. For how long will the products be produced? (operating hours,

seasonal times, …)
6. Where are the products to be produced? (Facility/ plant location)
Eng/ M. Abdelghany 2
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Definitions:
• Product design: defines the appearance of the
product, sets standards for performance, specifies
which materials are to be used, and determines
dimensions and tolerances.
• Process planning: converts designs into workable

instructions for manufacture or delivery.
The Design Process
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1. Idea Generation
• Ideas for new products or improvements to existing
products can be generated from many sources;
• company’s R&D department,
• customer complaints or suggestions,
• marketing research,
• suppliers, salespersons in the field,
• new technological developments,
• competitors.
Learning from competitors

• Perceptual maps; a visual method of comparing customer
perceptions of company’s products with competitors’
products.
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• Benchmarking; comparing product or process

against the best-in-class product, measuring the
performance of your product or process against it,
and making recommendations for improvement
based on the results.
• Reverse engineering; carefully dismantling and

inspecting a competitor’s product to look for design
features that can be incorporated into your own
product.
Ford used this approach successfully in its design of the Taurus
automobile, assessing 400 features of competitors’ product and copying,
adapting, or enhancing more than 300 of them, including Audi’s
accelerator pedal, Toyota’s fuel-gauge accuracy, and BMW’s tire and jack
storage.
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Company’s R&D department

• Research and development (R&D) is the primary source of
new product ideas.
• Expenditures for R&D can be enormous ($2 million a day at
Kodak!),
• Investment is risky (only 1 in 20 ideas ever becomes a
product and only 1 in 10 new products is successful).
• In addition, ideas generated by R&D may follow a long path
to commercialization.
Feasibility Study
Result of the feasibility study
• Performance specifications describe the function
of the product, what the product should do to
satisfy customer needs.
• Performance specifications are written for
product concepts that pass the feasibility study
and are approved for development.
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3. Rapid Prototyping
• Designers take general performance specifications
and transform them into a physical product with
technical design specifications.
• The process involves building a prototype, testing

the prototype, revising the design, retesting, and so
on until a viable design is determined.
Rapid Prototyping
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Rapid Prototyping
• Concurrent design: a new approach to design that
involves the simultaneous design of products and
processes by design teams.
• Concurrent design improves both the quality of the

design and the time-to-market.
Rapid Prototyping
Rapid prototyping includes three types of designs:
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Rapid Prototyping
Form Design
• It refers to the physical appearance of a product—its
shape, color, size, and style.
Functional Design
• It is concerned with how the product will perform,
• Three performance characteristics considered during

this phase of design are reliability, maintainability, and
usability.
Functional Design
Reliability:
• It is the probability that a product will perform its
intended function for a specified period of time under
normal conditions of use .
• Products warranty is a representative example for

product reliability.
• A car warranty might extend for three years or 50,000 miles. Normal conditions
of use would include regularly scheduled oil changes and other minor
maintenance activities. A missed oil change or mileage in excess of 50,000 miles
in a three-year period would not be considered “normal” and would nullify the
warranty.
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Functional Design
Reliability:
• A product or system’s reliability is a function of the
reliabilities of its component parts and how the
parts are arranged.
• If all parts must function for the product or system

to operate (series of components);
Rs = (R1)(R2) . . . (Rn)
where Rn is the reliability of the nth component

Functional Design
Reliability:
• Product with series components
• As the number of serial components increases,

system reliability will continue to deteriorate.
• This makes a good argument for simple designs

with fewer components.
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Functional Design
Reliability:
• To increase the reliability of individual parts (and
thus the whole product), redundant parts can be
built in to back up a failure (parallel components).
• Providing emergency brakes for a car is an example.

If the original component fails (a 5%
chance), the backup component will
automatically kick in to take its place—
but only 90% of the time.
Rs = R1 + (1 - R1)(R2)
Rs = 1 - [(1 - R1)(1 - REng/
2) . . . ].
M. Abdelghany 19
Functional Design
Maintainability:
• Maintainability/serviceability refers to the ease or cost
with which a product is maintained/repaired.
• Products can be made easier to maintain by assembling

them in modules,
• Computers is an example, entire control panels, cards,

or disk drives can be replaced when they malfunction.
• The location of critical parts or parts subject to failure

affects the ease of disassembly
Eng/ M. Abdelghany
and, thus, repair. 20
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Functional Design
Usability:
• It is what makes a product or service easy to use by

the customer.
• It is including ease of learning, ease of use, and

ease of remembering how to use.
Functional Design
Usability:
Examples for products that are difficult to use:
• Cup holders in cars that, when in use, hide the radio
buttons,
• Speakers in laptop computers that are covered by your
wrists as you type,
• Doors that you can’t tell whether to pull or push,
• Levers for popping the trunk of a car and unlocking the

gas cap located too close together.
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Production Design
• Production Design; is concerned with how the product
will be made.
• Designs that are difficult to make often result in poor-

quality products.
• Lack of knowledge of manufacturing capabilities can

result in designs that are impossible to make or require
skills and resources not currently available.
• Late changes in designEng/

are both costly and disruptive.
M. Abdelghany 23
Recommended Production Design

Approaches
Design simplification;
• Attempts to reduce the number of parts, and
subassemblies in a product.
• Avoiding tools, separate fasteners, and
adjustments.
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Approaches
2 parts
4 parts
24 parts
43 products per hour 300Eng/ M. Abdelghany

products per hour 900 products per hour 25

Approaches
Standardization;
• Using standard parts in a product saves design
time, tooling costs, and production worries.
• Making possible the interchangeability of parts
among products, resulting in;
• higher-volume production, lower investment in inventory, easier
purchasing and material handling, fewer quality inspections, and
fewer difficulties in production.
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4. Process Planning
• Process planning: converts designs into workable
instructions for manufacture or delivery.
• It determines how a product will be produced.
• It decides which components will be made in-house
and which will be purchased from a supplier.
• Process planning includes outsourcing decisions,
process selection, and process plans.
a) Outsourcing Decision
• We need to decide which items will be purchased and which
items will be produced in our own factories.
• Vertically integrated company; is a company that sells the
product, assembles the product, makes all the parts, and
extracts the raw material.
• Most companies cannot or will not make all of the parts that
go into a product.
• How much of the work should be done outside the firm?!
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Factors Influencing Outsourcing Decisions
1. Cost (economic factor)

• Would it be cheaper to make the item or buy it?
• The cost of buying the item includes the purchase price,
transportation costs, and various tariffs, taxes, and fees.
• The cost of making the item includes labor, material, and

overhead.
2. Capacity
• Companies operating at less than full capacity may
decide to make components rather than buy them.
• Typically, it is better to produce more customized

products in-house, and to outsource steady products
with high volume/high standardization.
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3. Quality
• The capability to provide quality parts consistently.
• It is easier to control the quality of items produced in
your own factory.
• Standardization of parts and supplier certification can

improve the quality of supplied parts.
4. Speed
• The savings from purchasing an item from a far-off
vendor can be eaten up by the lengthy transit time of
offshore shipments.
• A supplier may be able to provide goods sooner than the

manufacturer.
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5. Reliability
• Suppliers need to be reliable in both the quality and the
timing of what they supply.
• Many companies today are requiring that their suppliers

meet certain quality and delivery standards to be certified as
an approved supplier.
• Some companies assess huge penalties for unreliable supply.
6. Expertise
• Companies that are especially good at making certain
items may want to keep control over their production.
• Coca-Cola would not want to release its formula to a

supplier, even if there were guarantees of secrecy.
• The decision of whether to share your expertise with a

supplier for economic gains is a difficult one.
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b) Process Selection
• Selecting a production process for those items that will
be produce in-house.
Continuous
Production Volume
Production
Mass
Production
Batch
Production
Job-shop
Production
Product Variety
Process Selection with Break-Even Analysis
• Break-Even Analysis: a quantitative technique to study

the cost trade-offs associated with demand volume.
• The components of breakeven analysis are volume,

cost, revenue, and profit.
• Volume: is the level of production (number of units

produced/sold).
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• Cost:
• Fixed cost: remain constant regardless of the number of units
produced, such as plant and equipment.
• Variable cost: vary with the volume of units produced, such
as labor and material.
• Revenue: is price times volume sold.
• Profit: is the difference between total revenue and
total cost.
• We need to know at what volume of sales/

production we can expect to earn a profit.
• Break-even point: is the volume at which profit is

zero (total revenue = total cost).
• At any volume above the breakeven point, we will

make a profit.
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At Break-even point:
Example; Page #233
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Point of indifference between

two alternative processes (the
volume at which the total cost
of manufacturing is the same
for the two processes)
c) Process Plans
• Process plans are a set of documents that detail

manufacturing and service delivery specifications.
• It starts with detailed drawings of product design,
• Then includes Assembly charts, Operations sheets

and Quality-control check sheets.
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Process Plans
• Assembly charts: a schematic diagram of a product

shows the parts and materials needed and how
they are to be assembled together.
• Operations sheets: listing the operations to be

performed with details on equipment, tools, skills,
etc.
Example for
Assembly Chart
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Example for Operations Sheet
4. Final Design and Process Plans

• The final design consists of:
• Detailed drawings and specifications for the new
product.
• Instructions for manufacturing, including necessary

equipment and tools, job descriptions and procedures
for workers.
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Product design, process design, and schedule design

Key Input Data for Facility Planning
1. What is to be produced? (Products or services)
Answers obtained from:

2. How are the products to be produced? (Processes/ activities)
3. How much of each product will be produced? (quantities/ sales

volume)
4. When are the products to be produced?
5. For how long will the products be produced? (operating hours,

seasonal times, …)
6. Where are the products to be produced? (Facility/ plant location)
Assignment 2
• Read and prepare a short presentation (5 to 10
minutes) about Feasibility Study, its objectives and
its main elements.
24

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3/3/2020

Product design, process design, and schedule design

1. What is to be produced? (Products or services)

2. How are the products to be produced? (Processes/ activities)

3. How much of each product will be produced? (quantities/ sales

4. When are the products to be produced?

5. For how long will the products be produced? (operating hours,

6. Where are the products to be produced? (Facility/ plant location)

• Process planning: converts designs into workable

• new technological developments,

Learning from competitors

Learning from competitors

• Benchmarking; comparing product or process

Learning from competitors

• Reverse engineering; carefully dismantling and

Company’s R&D department

• The process involves building a prototype, testing

• Concurrent design improves both the quality of the

• Three performance characteristics considered during

• Products warranty is a representative example for

• If all parts must function for the product or system

where Rn is the reliability of the nth component

• As the number of serial components increases,

• This makes a good argument for simple designs

• Providing emergency brakes for a car is an example.

• Products can be made easier to maintain by assembling

• Computers is an example, entire control panels, cards,

• The location of critical parts or parts subject to failure

• It is what makes a product or service easy to use by

• It is including ease of learning, ease of use, and

• Doors that you can’t tell whether to pull or push,

• Levers for popping the trunk of a car and unlocking the

• Designs that are difficult to make often result in poor-

• Lack of knowledge of manufacturing capabilities can

• Late changes in designEng/

Recommended Production Design

Recommended Production Design

43 products per hour 300Eng/ M. Abdelghany

Recommended Production Design

Factors Influencing Outsourcing Decisions

1. Cost (economic factor)

• The cost of making the item includes labor, material, and

Factors Influencing Outsourcing Decisions

• Typically, it is better to produce more customized

Factors Influencing Outsourcing Decisions

• Standardization of parts and supplier certification can

Factors Influencing Outsourcing Decisions

• A supplier may be able to provide goods sooner than the

Factors Influencing Outsourcing Decisions

• Many companies today are requiring that their suppliers

• Some companies assess huge penalties for unreliable supply.

Factors Influencing Outsourcing Decisions

• Coca-Cola would not want to release its formula to a

• The decision of whether to share your expertise with a

Process Selection with Break-Even Analysis

• Break-Even Analysis: a quantitative technique to study

• The components of breakeven analysis are volume,

• Volume: is the level of production (number of units

Process Selection with Break-Even Analysis