D AV I D M A N D E R S O N DESIGN for MANUFACTURABILITY How to Use Concurrent Engineering to Rapidly Develop Low-Cost, High-Quality Products for Lean Production Tai ngay!!! Ban co the xoa dong chu nay!!! DESIGN for MANUFACTURABILITY How to Use Concurrent Engineering to Rapidly Develop Low-Cost, High-Quality Products for Lean Production D AV I D M A N D E R S O N DESIGN for MANUFACTURABILITY How to Use Concurrent Engineering to Rapidly Develop Low-Cost, High-Quality Products for Lean Production Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Group, an informa business A PRODUCTIVITY PRESS BOOK CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2014 by David M Anderson CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S Government works Printed on acid-free paper Version Date: 20131217 International Standard Book Number-13: 978-1-4822-0492-6 (Hardback) This book contains information obtained from authentic and highly regarded sources Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for 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978-750-8400 CCC is a not-for-profit organization that provides licenses and registration for a variety of users For organizations that have been granted a photocopy license by the CCC, a separate system of payment has been arranged Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe Library of Congress Cataloging‑in‑Publication Data Anderson, David M (Engineer) Design for manufacturability : how to use concurrent engineering to rapidly develop low-cost, high-quality products for lean production / author, David M Anderson pages cm Includes bibliographical references and index ISBN 978-1-4822-0492-6 (hardback) Lean manufacturing Concurrent engineering I Title TS183.A57 2014 670 dc23 Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com 2013048176 Dedicated to my loving and supportive wife, Lin Contents List of Figures xxv Preface xxvii About the Author .xxxv Section I Design Methodology Chapter Design for Manufacturability 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Manufacturing before DFM 1.1.1 What DFM Is Not .5 1.1.2 Comments from Company DFM Surveys Myths and Realities of Product Development Achieving the Lowest Cost .7 1.3.1 Toyota on When Cost Is Determined 1.3.2 Ultra-Low-Cost Product Development Designing for Low Cost 1.4.1 Design for Cost Approaches .9 1.4.1.1 Cost-Based Pricing 1.4.1.2 Price-Based Costing (Target Costing) 10 1.4.1.3 Cost Targets Should Determine Strategy .11 1.4.2 Cost Metrics and Their Effect on Results 11 1.4.3 How to Design Very Low Cost Products .13 1.4.4 Cost Reduction by Change Order 14 Cutting Time-to-Market in Half 16 Roles and Focus .18 1.6.1 Human Resources Support for Product Development .19 1.6.2 Job Rotation 20 1.6.3 Management Role to Support DFM 20 1.6.4 Management Focus 22 1.6.5 Successful or Counterproductive Metrics for NPD 24 Resistance to DFM 25 vii viii • Contents 1.8 Arbitrary Decisions .25 1.9 DFM and Design Time 29 1.10 Engineering Change Orders 29 1.11 Do It Right the First Time 30 1.12 Strategy to Do It Right the First Time 30 1.13 Company Benefits of DFM 32 1.14 Personal Benefits of DFM .33 1.15 Conclusions 34 Notes 35 Chapter Concurrent Engineering 37 2.1 Resources 37 2.1.1 Front-Loading at Toyota 41 2.2 Ensuring Resource Availability 41 2.2.1 Prioritization 42 2.2.2 Prioritizing Product Portfolios 42 2.2.3 Prioritizing Product Development Projects 43 2.2.4 Prioritization at Leading Companies 43 2.2.4.1 Prioritization at Apple 43 2.2.4.2 Product Development Prioritization at HP 44 2.2.4.3 Prioritization at Toyota 44 2.2.4.4 Product Prioritization for Truck Bodies 44 2.2.5 Prioritizing Resources for Custom Orders, Low-Volume Builds, Legacy Products, and Spare Parts 44 2.2.6 Develop Acceptance Criteria for Unusual Orders 46 2.2.7 Make Customizations and Configurations More Efficient 46 2.2.8 The Package Deal 47 2.2.9 Rationalize Products 48 2.2.10 Maximize Design Efficiency of Existing Resources 50 2.2.11 Avoid Product Development Failures 52 2.2.12 Avoid Supply Chain Distractions 52 420 • Appendix C: Feedback Forms Customer Feedback Form Date (For Importance and Competitive Grades, see instructions in Section 2.11) Rating of Importance _Functionality _Purchase cost _Quality _Reliability/Durability _Delivery/Availability _Appearance/Aestetics _Service, repair, maintenance _Cost of ownership _Technical support _Customizability/Options _Safety _Environmental _Other Grade _ _ _ _ _ _ _ _ _ _ _ _ _ Compared to: _ _ _ _ _ _ _ _ _ _ _ _ _ In which areas our products need to be improved? more on back more attached Which features or functions of our competitors’ products you most appreciate? more on back more attached If we completely re-designed our products, which features would you most value in the new products? Mention features you value, even if they are not available on any product in the market more on back more attached Name Title/Position Company/Division e-mail address: Phone: Address Would you be willing to provide input to New Product Development teams? me yes, contact Appendix C: Feedback Forms • 421 Factory Feedback: What Would Make Our Products Better and Easier to Build? (One problem/issue per form) Return to: Date: Problem Type (Quality Assembly, Cost, roughput, Delivery etc.) List all that apply On which Products, Sub-Assemblies, Parts, Drawings, or Procedures? What is the problem or Issue? more on back more attached Speculate as to the Real Cause: more on back more attached Potential Solutions (optional): more on back more attached Name (optional) Department Mailstop/Location: Would you be willing to give input to New Product Development teams? yes Phone: maybe no 422 • Appendix C: Feedback Forms Vendor Feedback: What Would Make Our Products Better and Easier to Build? (One problem/issue per form) Return to: Date: Problem Type (Fabrication, Assembly, Cost, Quality Tolerances, Time, Documentation, etc.) On Which Products, Sub-Assemblies, Parts, Drawings, Liaisons, or Procedures? What is the Problem or Issue? more on back more attached Speculate as to the Real Cause: more on back more attached Potential Solutions (optional): more on back more attached Name (optional) Company/Division Mailstop/Location: Would you be willing to give input to New Product Development teams? yes Phone: maybe no Appendix C: Feedback Forms • 423 Field Service Feedback: What Would Make Our Products Better and Easier to Build? (One problem/issue per form) Return to: Date: Problem Type (Service, Repair, Maintenance, Reliability, Customer Satisfaction, etc.) On Which Products, Sub-Assemblies, Parts, Drawings, Liaisons, or Procedures? What is the Problem or Issue? more on back more attached Speculate as to the Real Cause: more on back more attached Potential Solutions (optional): more on back more attached Name (optional) Organization Mailstop/Location: Would you be willing to give input to New Product Development teams? yes Phone: maybe no Appendix D: Resources D.1 BOOKS CITED The Toyota Product Development System, by James Morgan and Jeffrey K Liker (2006, Productivity Press) This is cited 17 times because Toyota’s design process, especially Chapters 4, 7, and 10, closely parallels DFM and concurrent engineering principles The Machine That Changed the World: The Story of Lean Production, by James Womack, Daniel Jones, and Daniel Roos (1991, Harper Perennial) Cited 12 times in this book Change By Design, by Tim Brown (2009, Harper Business) Cited times Why Smart Executives Fail: And What You Can Learn from Their Mistakes, by Sydney Finkelstein (2003, Portfolio/Penguin Group) Cited times The Connected Corporation: How Leading Companies Win Through Customer–Supplier Alliances, by Jordan D Lewis (1995, Free Press) Cited times The Elegant Solution, by Matthew E May (2007, Free Press) Cited times Lean Thinking: Banish Waste and Create Wealth in Your Corporation, by James P Womack and Daniel T Jones (1996, Simon & Schuster) Cited times Authentic Leadership: Rediscovering the Secrets of Creating Lasting Value, by Bill George (2003, Jossey-Bass) Cited times D.2 COMPANION BOOK FOR MATCHING IMPROVEMENTS IN OPERATIONS Build- to- Order & Mass Customization: The Ultimate Supply Chain Management and Lean Manufacturing Strategy for Low-Cost On-Demand Production Without Forecasts or Inventory, by David M Anderson (2008, CIM Press) D.2.1 Book Description Build-to-order and mass customization represent a business model that offers an unbeatable combination of responsiveness, cost, and products that customers want when they want them It enables companies to build any product—standard or custom—on demand without forecasts, batches, inventory, or working capital 425 426 • Appendix D: Resources Build-to-order companies enjoy substantial cost advantages from eliminating inventory, forecasting, expediting, kitting, setup, and inefficient fire-drill efforts to customize products BTO results in more efficient utilization of people, machinery, and floor space Build-to-order substantially simplifies supply chains—not just “managing” them—to the point where parts and materials can be spontaneously pulled into production without forecasts, MRP, purchasing, waiting, or warehousing inventory Build-to-order is the best way to resupply parts to OEMs or products to stores who demand rapid replenishment, low cost, and high order fulfillment rates BTO avoids the classic inventory dilemma: too little inventory saves cost but increases out-of-stocks, missed sales, expediting, and disappointed customers; too much inventory adds carrying costs and risks obsolescence BTO companies can grow sales and profits by expanding sales through faster delivery of standard products in addition to customized, derivative, and niche market products, while avoiding the commodity trap Build- to-order companies are the first to market with new technologies because distribution pipelines not have to be emptied first The mass customization capabilities of build-to-order can quickly and efficiently customize products for niche markets, countries, regions, industries, stores, and individual customers D.2.2 Which Companies Need This Manufacturing companies with the following challenges need this book: • Product variety, with too many SKUs to build in batches • Unreliable forecasts that get worse with more product variety and market volatility • Inventory dilemmas, with too many SKUs to stock, but sales are missed without enough inventory • Customization drains resources and costs too much on inflexible lines • Response time is too slow to order parts, wait, setup, and build in batches A full description can be found at http://www.build-to-order-consulting com/books.htm Appendix D: Resources • 427 D.3 WEBSITES www.HalfCostProducts.com [cited 18 times in this book] Home page: Eight-step half-cost reduction strategy (with links to related articles) followed by “How Not to Lower Cost” (with links articles on bidding, offshoring, and cost reduction after design) Statistics: Content equivalent to 250 page book; 700 hyperlinks Articles: Build-to-Order Build-to-Order Future Cost of Quality Cost Reduction; How Not to Designing for Build-to-Order Designing for Lean Designing for Manufacturability Designing for Mass Customization Designing for Quality Low-Bidding Mass Customization Mass Production, end of Mergers & Acquisitions Lean Production Off-Shore Manufacture Outsourcing Rationalization Standardization SCM Cost Reduction Total Cost www.build-to-order-consulting.com Pages: Home page (with summaries and links), Seminar page (with comments from attendees), Consulting, Implementation, Articles, Books, Credentials, Client List, Site Map Articles: Build-to-Order Mass Customization Shortcomings of Mass Production Business Model for BTO & MC Achieving Growth with BTO & MC On-Demand Lean Production Standardization Kanban resupply Hoffman case study Rationalization Training for BTO&MC www.design4manufacturability.com Pages: Home page (with summaries and links), Seminar page (with comments from attendees), Consulting, Relevance, Applicability, Implementation, Books, Credentials, Client List, Site Map Articles: DFM Designing Low-Cost Products Half the Time to Stable Production Mass Customization Product Line Rationalization Build-to-Order Designing in Quality Large Part Conversion Standardization Vendor/Partnerships 428 • Appendix D: Resources D.4 DFM SEMINAR Dr Anderson has been providing customized in-house training on DFM and Concurrent Engineering for the last 25 years and has honed the two-day seminar into a very effective program He personally prepares and presents all his seminars during which he encourages questions and engages in discussions based on his extensive experience both training companies and designing and building products The typical baseline agenda includes: Product Development Strategy Managers and Executives join the class for this session on how to raise product development effectiveness to the highest level Topics include ensuring the early availability of resources to form complete multifunctional teams early, thorough upfront work, how to cut time-to-market in half, and how to greatly lower total cost Multifunctional Teams. This concurrent engineering session shows how to optimize product development by creatively simplifying concepts, methodically optimizing product architecture, raising and resolving issues early to avoid later changes, concurrently planning manufacturing strategies, optimizing the utilization of existing engineering, modules, and off-the-shelf parts, and doing it right the first time Designing for Low Cost. The seminar will show how to minimize cost by design with thorough architecture optimization, designing for easy fabrication and assembly, designing to minimize the cost of quality, designing products rightthe-first-time without costly changes, quantifying total cost, and focusing on designing to minimize all the elements of total cost Designing in Quality & Reliability The seminar will show how quality and reliability can be assured by design through integrated product/process design, concept simplicity, optimizing tolerances, selecting parts for quality, minimizing cumulative effects, and mistake-proofing the design with poka-yoke Designing for Lean. Dr Anderson is in a unique position to show how to develop products for Lean Production, BTO, and Mass Customization, having written two books on the subject His 2008 BTO&MC book is described next Design Guidelines The seminar will present dozens of design guidelines for assembly, part fabrication, quality, and reliability Standardization This session presents a practical and effective procedure he developed to generate standard parts lists that are only a few percent of proliferated parts lists that are common in most companies What Happens Next The seminar concludes with class discussions on “What happens next,” in which attendees suggest what should change and then vote on their choices, which provides a prioritized list which can be used as a good starting point for his facilitated implementation meeting Contact: 805-924-0100 or anderson@)build-to-order-consulting.com Appendix D: Resources • 429 D.5 SEMINAR ON BTO & MASS CUSTOMIZATION Introduction. The seminar will begin with discussions of the challenges and opportunities facing the company with respect to responsiveness, cost, product variety, growth, and profits Shortcomings of Mass Production Mass production was the ideal way to make Model T’s in the 1920s, but is not suitable for today’s environment of increasing product variety and market volatility Supply Chain Simplification. Rather than just “managing” complex supply chains with an unnecessary proliferation of parts and suppliers, this seminar will show how to rationalize product Jines, standardize parts and materials, establish a spontaneous supply chain which can pull in standard parts and materials automatically Outsourcing vs Integration. Dr Anderson will show how excessive outsourcing to far-flung supply chains hampers responsiveness while not really reducing cost on a total cost basis Instead, he will show how the optimal level of integration greatly improves product development and enables manufacturers to quickly and cost effectively build parts on-demand and then assemble them to-order On-demand Lean Production extends the proven principles of Lean Production, setup elimination, cellular manufacture, and flow production to enable operations to build any product any time in any quantity in a truly batch-size-of-one mode without forecasts or inventory Mass customization. The same operations and supply chain employed for standard products can efficiently mass customize a wide range of products for many niche markets, countries, regions, industries, dealers, stores, and individual customers Product development for BTO&MC Dr Anderson draws on 25 years experience teaching DFM to show how to concurrently engineer families of products and versatile processes for build-to-order and mass customization Cost Reduction Strategies. BTO and mass customization offer many opportunities to substantially reduce total cost by eliminating all the costs of setup and inventory while minimizing overhead costs for customization, quality, distribution, and material overhead Implementation. Practical implementation strategies will be presented for several independently justifiable and self-supporting implementation steps Then Dr Anderson will facilitate discussions about over all strategies, implementation scenarios, roadmaps, and subsequent implementation initiatives The Business Case. Finally, the seminar will present the business case for build-toorder and mass customization, itemizing all the advantages for cost, responsiveness, and customer satisfaction, including strategies for growth of sales and profits Contact Dr Anderson at: 805-924-0100 or anderson@build-to-order-consulting.com 430 • Appendix D: Resources D.6 WORKSHOPS FACILITATED BY DR. ANDERSON D.6.1 Product-Specific Workshop After a DFM seminar, a new team immediately applies DFM principles to a new product development project The workshop focuses on thorough up- front work, including lessons learned, concept innovations, and architecture optimization These exercises themselves would be the start of many actual tasks, which would be continued after the workshop The timing would be after a new team is formed but before any design decisions are cast in concrete D.6.2 Commercialization Workshop This workshop shows companies how to commercialize ideas, experiments, breadboards, research, proofs-of-principle, prototypes, patents, or acquired technology Commercialization may be necessary for the commercial success of innovations coming from startup ventures or company research efforts to retain the desired functionality (the crown jewels) while designing everything else to be readily manufacturable at low cost and ramped up quickly with high quality designed in For small companies or startups, this can be offered as a stand-alone workshop D.6.3 DFM Replacements of Large Weldments and Castings The goal of this workshop is to demonstrate how to develop more manufacturable replacements for large weldments and castings that are expensive to build because mounting holes must be drilled into the raw casting or weldment on large mega-machine tools with high hourly charges for setup, machining, repositionings, and inspections DFM principles would be applied to replace these hard-to-build large parts with assemblies of readily manufacturable parts that can be machined on ordinary CNC machine tools and assembled precisely and rigidly by DFM techniques, resulting in low-cost parts that could replace their high-cost counterparts on existing products and become the foundations for new products The approach is discussed in Section 9.5 D.6.4 Standardization Workshop This workshop presents standardization principles, summarizes all the benefits, and starts with the early steps, such as issuing lists of all existing Appendix D: Resources • 431 parts to immediately stop parts proliferations and eliminate approved but unused parts Then a standardization task force would prioritize categories to standardize and start the standardization steps discussed in Chapter 5 This procedure enables Lean Production and BTO, improves product development, ensures availability, and reduces part cost, expediting, and inventory while reducing material overhead costs an order of magnitude for standard parts D.6.5 Product Line Rationalization Workshop This workshop presents product line rationalization principles, converges on products to investigate, and starts the rationalization process to identify the high-profit products to keep and the money-losers to either drop, outsource away, improve, or combine into synergistic product families Rationalization frees up resources for complete product development teams and enables spontaneous supply chains and on-demand production to enable build-to-order and mass customization, summarized in Chapter 4 D.7 DESIGN STUDIES AND CONSULTING D.7.1 Half-Cost Design Studies Half-cost products depend on breakthrough concepts Sometimes these come from the brainstorming sessions that Dr. Anderson facilitates in workshops More challenging endeavors may require his concept studies, in which he generates breakthrough concepts that concurrent engineering teams can develop into manufacturable products Dr. Anderson is particularly effective with complex products that could benefit from simplified concepts, clever architecture, easy-to-build structures, and ingenious ways of controlling and guiding part motions D.7.2 Design Studies on Mechanisms Dr. Anderson has expertise on linkage and mechanism design, starting with his doctorate thesis and spanning 35 years of industrial experience, four patents, and numerous kinematics and design studies for robots, manipulators, material handling products, production equipment, feeding 432 • Appendix D: Resources mechanisms, and low-cost, lightweight motion guidance and mechanical coupling D.7.3 Design Studies on Large Part Conversions Dr. Anderson’s DFM principles, years of experience, and skills in both machining and welding enable him to deliver design studies to convert hard-to-build weldments and castings to more manufacturable assembled structures, as discussed in Section 9.5 For large structures, he can execute conceptual design of lightweight, low-cost trusses and 3D space frames in which the nodes both connect low-cost struts and provide precision holes for all the attachment points D.7.4 Consulting After DFM training and possibly workshops, companies will benefit from ongoing consulting interactions with product development teams to help them apply DFM principles, optimize designs, and make the best strategic decisions throughout their projects Dr. Anderson’s e-mail: anderson@build-to-order-consulting.com Prod uct Developm e nt Design for Manufacturability: How to Use Concurrent Engineering to Rapidly Develop Low-Cost, High-Quality Products for Lean Production shows how to use concurrent engineering teams to design products for all aspects of manufacturing with the lowest cost, the highest quality, and the quickest time to stable production Extending the concepts of design for manufacturability to an advanced product development model, it explains how to simultaneously make major improvements in all these product development goals, while enabling effective implementation of Lean Production and quality programs Illustrating how to make the most of lessons learned from previous projects, the book proposes numerous improvements to current product development practices, education, and management It outlines effective procedures to standardize parts and materials, save time and money with off-the-shelf parts, and implement a standardization program It also spells out how to work with the purchasing department early on to select parts and materials that maximize quality and availability while minimizing part lead-times and ensuring desired functionality Describes how to design families of products for Lean Production, build-to-order, and mass customization Emphasizes the importance of quantifying all product and overhead costs and then provides easy ways to quantify total cost Details dozens of design guidelines for product design, including assembly, fastening, test, repair, and maintenance Presents numerous design guidelines for designing parts for manufacturability Shows how to design in quality and reliability with many quality guidelines and sections on mistake-proofing (poka-yoke) Describing how to design parts for optimal manufacturability and compatibility with factory processes, the book provides a big picture perspective that emphasizes designing for the lowest total cost and time to stable production After reading this book you will understand how to reduce total costs, ramp up quickly to volume production without delays or extra cost, and be able to scale up production rapidly so as not to limit growth K21414