Chapter 3 - Product Design and Process Selection

Manufacturability

The ease with which a product can be made.

Product design

The process of defining all of the product’s characteristics.

Service design

The process of establishing all the characteristics of the service, including physical, sensual, and psychological benefits.

Benchmarking

The process of studying the practices of companies considered 'best-in-class' and comparing your company’s performance against theirs.

Reverse engineering

The process of disassembling a product to analyze its design features.

Break-even analysis

A technique used to compute the amount of goods a company would need to sell to cover its costs.

Design for manufacture (DFM)

A series of guidelines to follow in order to produce a product easily and profitably.

Product life cycle

A series of stages that products pass through in their lifetime, characterized by changing product demands over time.

Concurrent engineering

An approach that brings together multifunction teams in the early phase of product design.

Remanufacturing

The concept of using components of old products in the production of new ones.

Intermittent operations

Processes used to produce a variety of products with different processing requirements in lower volumes.

Repetitive operations

Processes used to produce one or a few standardized products in high volume.

Project process

A process used to make a one-at-a-time product exactly to customer specifications.

Batch process

A process used to produce a small quantity of products in groups or batches based on customer orders.

Line process

A process used to produce a large volume of a standardized product.

Continuous process

A process that operates continually to produce a high volume of a fully standardized product.

Process flow analysis

A technique used for evaluating a process in terms of steps from inputs to outputs.

Process flowchart

A chart showing the sequence of steps in producing the product or service.

Bottleneck

The longest task in the process that limits overall output.

Make-to-stock strategy

Produces standard products and services for immediate sale or delivery.

Assemble-to-order strategy

Produces standard components that can be combined to customer specifications.

Make-to-order strategy

Produces products to customer specifications after an order has been received.

Process performance metrics

Measurements of different process characteristics that tell how a process is performing.

Throughput time

Average amount of time it takes a product to move through the system.

Process velocity

Ratio of throughput time to value-added time.

Productivity

Ratio of outputs over inputs.

Utilization

Ratio of time a resource is used to time it is available.

Efficiency

Ratio of actual output to standard output.

Automation

Using machinery to perform work without human operators.

Service package

A grouping of physical, sensual, and psychological benefits that are purchased together as part of the service.