Rap 4

value proposition

concise statement that clearly communicates how value is created and captured

Threshold need

expected need not stated by stakeholders

latent need

unexpected and unstated need

needs guidelines

1. express as attributes of the product

2. avoid using must/should

3. positive form

1. Functional

2. Undesirable

3. Safety

4. Durability

5. ergonomic

6. input/output

7. constraints

8. regulatory

9. storage and handling

10. other

suggested need categories

metric

the parameter to be measured or checked to see if a concept meets the requirements

threshold

the specific value of the metric that defines acceptability

justification

the reasoning as to why the metric and/or value were chosen

Value

the overall satisfaction with a concept

value equation

a mathematical expression that combines evaluation criteria to quantify the overall value of a concept

1. determine overall general shape

2. match key points(requirements and plateaus in satisfaction)

3. ensure curve represents expected behavior

Steps to construct an evaluation criterion curve

cash flow

the movement of money in or out of a business venture or project

development costs

initial spending on the project design, testing, and refinement

ramp-up costs

initial costs to begin production, such as tooling equipment, and production training

marketing and support cost

costs to support the product, such as launch, promotion, direct sales, distribution, and service costs

production costs

on-going costs for materials, labour, power, and overhead

sales revenue

money made by selling the product

F = P(1+r)^n

Time value of money

opportunity cost of capital

the expected return from other opportunities that is missed in order to pursue a project or investment

discount rate

the percentage rate a company uses to discount future cash flows into equivalent present value (typically about 20, can range from 5 to 50 or more)

hurdle rate

the threshold rate for which a project or venture is feasible. with cash flows discounted by the hurdle rate, the project will generate enough cash inflow to just balance cash outflow and risk

net present value

summation of all of a projects cash flows, each expressed in terms of present value

sunk costs

costs that have already been incurred. not considered in economic decision making

triple bottom line (accounting)

considering economics, society, and the environment in decision making

1. an objective function to be optimized

2. constraints that limit the values parameters can take

2 common elements of optimization

objective function

the quantity to be optimized expressed as a mathematical relation of variables that can be controlled

constraints

functions describing limits on the permissible values of the variables in the objective function

linear programming

a graphical optimization technique in two parameters

1. plot all constraints and identify feasible region

2. plot different values of the objective function

3. find the optimum value of the objective function within the feasible region

Linear Programming Steps

Nonlinear Programming

Linear programming but at least one equation is nonlinear. optimum point no longer guaranteed to lie on the feasible region

langrangian equation

combines the objective function and the constraints into a single expression

local search optimization

uses a computer to iteratively explore possible solutions in the hopes of finding the optimum point

monte carlo simulation

methods include a random element to search path

exhaustive search

considering possible solutions from across the feasible region and selecting the one with the most favourable objective function value

feasible region

an area that defines the set of viable solutions

severity, occurrence, detection

FMEA elements

occurrence

what is the likelihood of the failure occurring

detection

a numerical rating of the likelihood a control will detect a failure mode cause

concept/system FMEA

• analyze the interaction of function in a system/subsystem

• focus on failure caused by deficiencies in system design

• early

Design FMEA

• analyze components before the design is finalized and components are manufactured

• focuses on failures caused by deficiencies in component design

Process FMEA

• analyze the manufacturing and assembly process

• focus on failures caused by deficiencies in these processes

Service FMEA

• analyze processes of providing services to a customer

• focus on deficiencies in the process/system used to provide service

Risk Priority Number

quantified risk based on severity, occurrence, and detection

Failure mode

the manner or way a part could fail to perform its intended function

effect

the consequence of the failure as experienced by the end users

severity

a numerical rating of the seriousness of the effect of failure

cause

the defect in design or manufacture that leads to a failure mode; the same failure mode can have multiple causes; a single cause can lead to multiple failure modes

control

design, manufacture, or operations actions to detect the cause of a failure mode before effects are experience by the userde