Design for Manufacturability-How to Use Concurrent Engineering to Rapidly Develop Low-Cost, High-Quality Products for Lean Production, Second Edition David M. Anderson (Author)
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Design for Manufacturability
How to Use Concurrent Engineering to Rapidly Develop Low-Cost, High-Quality Products for Lean Production
Second Edition
David M. Anderson
First edition published in 2020 by Routledge/Productivity Press
52 Vanderbilt Avenue, 11th Floor New York, NY 10017
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN, UK
© 2020 by David M. Anderson
Routledge/Productivity Press is an imprint of Taylor & Francis Group, an Informa business
No claim to original U.S. Government works
Printed on acid-free paper
International Standard Book Number-13: 978-0-367-24994-6 (Hardback)
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Library of Congress Cataloging‑in‑Publication Data
Names: Anderson, David M. (Engineer) author.
Title: Design for manufacturability : how to use concurrent engineering to rapidly develop low-cost, high-quality products for lean production, second edition / David M. Anderson.
Description: Second edition. | Boca Raton : Taylor & Francis, 2020. | Includes bibliographical references and index.
Identifiers: LCCN 2019041349 (print) | LCCN 2019041350 (ebook) | ISBN 9780367249946 (hardback) | ISBN 9780429285981 (ebook)
Subjects: LCSH: Lean manufacturing. | Concurrent engineering. | BISAC: BUSINESS & ECONOMICS / Quality Control. | BUSINESS & ECONOMICS / Industrial Management. | TECHNOLOGY & ENGINEERING / Manufacturing. Classification: LCC TS183 .A57 2020 (print) | LCC TS183 (ebook) | DDC 658.5/62—dc23
LC record available at https://lccn.loc.gov/2019041349
LC ebook record available at https://lccn.loc.gov/2019041350
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Dedicated to my loving and supportive wife, Lin.
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Taylor&Francis Taylor&Francis Group
vii Contents* List of Figures xxix .................................................................................... Preface for the Second Edition xxxi ......................................................... Preface for Students xxxix ......................................................................... Author xlvii ............................................................................................... Section i Design Methodology chapter 1 Design for Manufacturability 3 ............................................ 1.1 Manufacturing before DFM 4 ........................................... 1.1.1 What DFM is Not 5 ............................................... 1.1.2 Comments from Company DFM Surveys 5 ...... 1.2 Myths and Realities of Product Development 6 ............. 1.3 Costs, When They Are Determined 7 .............................. 1.3.1 Toyota on When Cost is Determined 7 .............. 1.3.2 Ultra-Low-Cost Product Development 8 ........... 1.4 Designing for Low Cost 9 .................................................. 1.4.1 Design for Cost Approaches. 9 .............................. 1.4.1.1 Cost-Based Pricing 9 1.4.1.2 Price-Based Costing (Ta rget Costing) 10 1.4.1.3 Cost Targets Should Determine Strategy 11 ........................... 1.4.3 How to Design Very Low Cost Products 13 ....... 1.4.4 Cost Reduction by Change Order 14 .................. 1.5 Time-to-Market, Cutting it in Half 16 ............................. 1.6 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 ......................................... * The entries in Bold denote unique never-before-published material in this edition. 1.4.2 cost Metrics and Their effect on Results ... 11
viii • Contents 1.6.5 Metrics for NPD, Successful or Counterproductive 24 ........................................... 1.7 Resistance to DFM 25 ......................................................... 1.8 Arbitrary Decisions 25 ....................................................... 1.9 Design Time, Reducing it with DFM 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 Benefits of DFM for the Company 32 1.14 Personal Benefits of DFM 33 . 1.15 Conclusions of DFM Intro 34 Notes 35 chapter 2 Concurrent Engineering 37 2.1 Resources 37 .. 2.1.1 Front-Loading at Toyota 41 2.2 Resource Availability, Ensuring 41 2.2.1 Prioritization 42 2.2.2 Prioritizing Product Development 42 2.2.3 Prioritizing Product Development Case Study 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 43 2.2.4.3 Prioritization at Toyota 44 2.2.4.4 Prioritization for Truck Bodies 44 2.2.5 Prioritizing Resources for Custom Orders, Low-Volume Builds, Legacy Products, Spare Parts, and Refurbishing 44 2.2.6 Acceptance Criteria for Unusual Orders 46 2.2.7 Customizations and Configurations, Making More Efficiently 46 2.2.8 Package Deals .... 47 2.2.9 Rationalize Products 48 2.2.9.1 Rationalize Away or Outsourcing Legacy Products and Spare Parts 49 2.2.9.2 Outsource Hard-to-Build Parts a nd Subassemblies 50 .............................. ............................................ ........................................... .......................................................................................... .................................................. ...................................................................... .................................. .................................. ..................................................... ................. ......................................................... ............ ...................... ..... ...... .................................. ................................................ ........................................ ...... ...........................
Contents • ix 2.2.10 Design Efficiency of Existing Resources, How to Maximize 50 ............................................. 2.2.11 Avoid Product Development Failures 53 ............ 2.2.12 Avoid Supply Chain Distractions 53 ................... 2.2.13 Project Scheduling, Optimize Product Development 53 ..................................................... 2.2.14 Manufacturing Engineers, How to Optimize Availability 54 ....................................... 2.2.15 Resource Shortages, How to Correct Critical Issues 54 .................................................... 2.2.16 Invest in Product Development R esources 55 ................................................... 2.2.16.1 R&D Investment at Medtronic 55 ........ 2.2.16.2 R&D Investments at General Electric and Siemens 55 ......................... 2.2.16.3 R&D Investment at Apple 56 ................ 2.2.16.4 R&D Investments at Samsung 56 ........ 2.2.17 Don’t Lose Team Completeness or Critical Talent. 56 ................................................... 2.2.17.1 Don’t Let Essential Team Members Be Laid Off 57 ........................ 2.2.17.2 Don’t Outsource Engineering 57 ......... 2.2.17.3 Don’t Waste Your MEs on Draining Ventures 58 2.2.17.4 Avoid Knee-Jerk Portfolio Planning Changes 59 2.2.17.5 Don’t Sacrifice a Promising NPD to Bail Out LowOpportunity Project . 60 ........................ 2.3 Portfolio Planning for Products 60 .................................. 2.4 Parallel and Future Projects 62 ......................................... 2.5 Designing Products as a Team 63 ..................................... 2.5.1 Major Problems with Phases, Gates, Reviews, and Periodic Meetings 64 ..................... 2.5.2 Huddles 65 .............................................................. 2.5.3 Models; Building Many Models and Doing Early Experiments 65 ................................ 2.5.4 Manufacturing Participation in Product Development 66 .....................................................
x • Contents 2.5.5 Manufacturing People, What they Should Be Doing Early in Product Development Teams 66 ......................................... 2.5.6 Manufacturing Participation at Toyota 67 ......... 2.5.7 Procurement, It’s New Role to Assure Availability 67 ........................................................ 2.5.8 Team Leader . 67 ..................................................... 2.5.8.1 Team Leader at Toyota 68 ..................... 2.5.8.2 Team Leader at Motorola 69 ................. 2.5.8.3 Team Leaders and Sponsors at Motorola 69 ............................................. 2.5.9 Team Composition 69 ........................................... 2.5.9.1 Team Composition at Apple 71 ............ 2.5.10 Team Continuity. 71 .............................................. 2.5.11 Teams Part-Time Participation 71 ...................... 2.5.12 Using Outside Expertise 72 .................................. 2.5.13 Teams, Value of Diversity 72 ................................ 2.5.14 Encouraging Honest Feedback 72 ....................... 2.6 Vendor/Partnerships 73 ..................................................... 2.6.1 Reducing Cost with Early Vendor Involvement 73 ....................................................... 2.6.2 Vendor/Partnerships Will Result in a Lower Net Cost 73 .................................................. 2.6.3 Vendor/Partner Selection 75 2.6.4 Working with Vendor/Partners 75 2.7 DFM for Aerospace and Defense 77 2.7.1 Designing Aerospace & Defense Products for Manufacturability 77 2.7.2 Value of DFM in Regulated Environments 78 ..... 2.7.3 Most Important DFM Principles for Aerospace/Defense 79 ........................................... 2.7.3.1 Thorough Up-Front Work 79 ............... 2.7.3.2 Complete Multi-Multifunctiona l Teams 79 ..................................................... 2.7.3.3 Concept/Architecture, How to Optimize for A & D 79 .......................... 2.7.3.4 Design for Low Cost; Don’t Try To Take it Out Later . 79 .........................
Contents • xi 2.7.3.5 Why to Be Cautious about Outsourcing Engineering 80 ................ 2.7.3.6 Why Not to Even Try Offshoring Production 80 ..................... 2.7.3.7 All Cost Decisions Must Be Based on Total Cost . 80 ......................... 2.7.4 Guidelines for Aerospace & Defense, Most Valuable for A & D 81 ................................. 2.7.4.1 Fabricate Machined Parts in One Setup with Guidelines P14 82 ...... 2.7.4.2 Avoid Hogging Out Large Blocks 82 ... 2.7.4.3 Flex Layers Can Connect PCB Stacks to Save Cost, Space, and Weight . 84 ................................................ 2.7.4.4 Backward-Compatible “Drop-In’ Replacement Parts for Near-Term Cost Reduction 84 ............. 2.7.5 What to Bid and How Not to Bid 85 ................... 2.7.6 What To Compete for and How To Win it 86 ... 2.7.7 Working with Customer 88 .................................. 2.7.8 Developing Good Working Relationships 88 .... 2.7.9 Competitiveness for A & D Companies 88 ........ 2.8 changes Late From customers and Specs 89 .............. 2.8.1 How to Avoid Late Spec and Customer Changes 89 2.8.1.1 Proactive Steps to Avoid Changes 90 2.8.2 How to Avoid the Impact of Late Spec a nd Customer Changes 91 2.9 Co-Location 92 .................................................................... 2.9.1 Project Room (The “Great Room” or Obeya) 93 ... 2.10 Team Membership and Roles 93 ....................................... 2.11 Outsourcing Engineering 99 ............................................. 2.11.1 Engineering that Could be Outsourced 101 ...... 2.11.1.1 Outsourcing Tasks that Support Domestic New Product Development 101 ................................... 2.11.1.2 Tasks that Usually Distract New Product Development Efforts 101 ........
xii • Contents 2.12 Product Definition 102 ....................................................... 2.12.1 Understanding Customer Needs 102 .................. 2.12.2 Product Requirements Writing for Product Definition 103 ......................................... 2.12.3 Consequences of Poor Product Definition 104 .... 2.12.4 Customer Input 105 ............................................... 2.12.5 Quality Function Deployment 106 ..................... 2.12.6 How QFD Works 107 ............................................ Notes 109 ......................................................................................... chapter 3 Designing the Product 115 ................................................... 3.1 Design Strategy 116 ............................................................ 3.1.1 Designing around Standard Parts 116 ................ 3.1.1.1 Sheet Metal 117 ....................................... 3.1.1.2 Bar Stock 117 .......................................... 3.1.2 Consolidation 117 .................................................. 3.1.3 Off-the-Shelf Part 118 ........................................... 3.1.4 Proven Processing 118 .......................................... 3.1.5 Proven Designs, Parts, and Modules . 118 .......... 3.1.6 Arbitrary Decisions, Value of Avoiding 119 ...... 3.1.7 Overconstraints 119 .............................................. 3.1.8 Tolerances 119 ........................................................ 3.1.9 Minimizing Tolerance Demands 120 ................. 3.1.10 System Integration 120 3.1.11 How to Optimize All Design Strategies 120 3.1.12 Design Strategy for Electrical Systems 121 3.1.13 Connections: Best to Worst 122 3.1.14 How to Optimize Use of Flex Layers 123 3.1.15 Voltage Standardization 124 ................................ 3.1.16 Designing Printed Circuit Boards for DFM 124 .......................................................... 3.2.1 Thorough Up-Front Work at Toyota 128 ............ 3.2.2 Thorough Up-Front Work at Motorola 128 ....... 3.2.3 Thorough Up-Front Work at IDEO 128 ............. 3.2.4 Avoid Compromising Up-Front Work 128 ........ 3.2.4.1 Slow Processes for Sales and Cont racts 129 .......................................... 3.2 Importance of Thorough Up-Front Work ................ 125
Contents • xiii
Long-Lead-Time Parts Can Rush Thorough Up-Front Work 129 ... 3.2.4.3 Rushing NPD for Early Evaluation Units 129 .............................. 3.2.5 Early Evaluation Units 129 ................................... 3.3 Architecture/System Design, How to Optimize 130 ..... 3.3.1 Product Definition 131 ......................................... 3.3.2 Team Composition and Availability 131 ............ 3.3.3 Product Development Approach 131 .................. 3.3.4 Lessons Learned 131 .............................................. 3.3.4.1 Lessons Learned Categories 131 .......... 3.3.4.2 Lessons Learned Methodologies ....132 3.3.5 Issues, Raising & Resolving Early 133 ................ 3.3.5.1 Project Issues 133 ................................... 3.3.5.2 Team Issues 134 ...................................... 3.3.5.3 Mitigating Risk . 134 ............................... 3.3.5.4 New Technologies 134 ........................... 3.3.5.5 Techniques to Resolve Issues Early ....135 3.3.5.6 Contingency Plans 135 .......................... 3.3.5.7 Achieve Concurrence before Proceeding . 136 ...................................... 3.3.6 Manual Tasks, How to Eliminate by Design 136 ......................................................... 3.3.7 Skill and Judgment 137 3.3.7.1 How to Eliminate the Need for Skill and Judgment 137 3.3.8 Technical/Functional Challenges 138 3.3.9 Concept/Architecture Design Optimization 139 ................................................... 3.3.10 Optimizing the Use of CAD in the Concept/Architecture Phase 140 ......................... 3.3.11 Concept Simplification 140 .................................. 3.3.12 Manufacturing & Supply Chain Strategies 142 ..... 3.4 Part Design Strategies 143 ................................................. 3.4.1 Documentation Principles 145 ............................ 3.5 Design for Everything (DFX) 146 ..................................... 3.5.1 Consequences of Not Considering Everything Early 152 ............................................. 3.6 Creative Product Development 152 ..................................
3.2.4.2
xiv • Contents 3.6.1 Getting Creative Ideas 153 ................................... 3.6.2 Generating Ideas at Leading Companies 154 .... 3.6.3 Encouraging Innovation at Medtronic 154 ........ 3.6.4 Nine Keys to Creativity 154 .................................. 3.6.5 Creativity in a Team 155 ....................................... 3.6.6 Ups and Downs of Creativity 156 ........................ 3.7 Brainstorming 157 .............................................................. 3.8 Half-cost Product Development 158 ............................. 3.8.1 Managing Expectations 158 ................................. 3.8.1.1 Cost Reducing Parts, Here Is W hy Not to Try 159 ............................... 3.8.1.2 Half-Cost Methodologies Will Not Work On: 159 .................................. 3.8.1.3 Half-Cost Methodologies Work Best On: 159 ............................................ 3.8.1.4 Defining “Cost” as Parts Will Make Matters Worse 159 ....................... 3.8.2 Prerequisites Needed for Half-Cost Development 160 ................................................... 3.8.2.1 Remove Obstacles 160 ........................... 3.8.2.2 Remove Counter-Productive Policies Warned about in Section 11.5 160 ...................................... 3.8.2.3 Total Cost Must Be the Fou ndation 160 3.8.2.4 Rationalization is Another Fou ndation 160 3.8.3 Designing Half-Cost Products 161 3.8.3.1 How to Select the Most Available Parts 162 ................................. 3.8.4 Overhead Cost Reduction 162 ............................. 3.8.5 Product Development Budget Cut in Half ....163 3.8.6 Concept/Architecture Cost Cut in Half 164 ....... 3.8.7 Labor and Processing Cost Cut in Half 165 ....... 3.8.8 Quality Costs Cut in Half 165 .............................. 3.8.9 Indirect Labor Cost Cut to 1/3 165 ...................... 3.8.10 Material Overhead Can Be Cut by 10 Times 166 ... 3.8.11 Raw Material Inventory Cut by 10 Times 166 .... 3.8.12 W.I.P. Inventory Can Be Cut by 10 Times 167 ...
Contents • xv 3.8.12.1 W.I.P. Inventory Accrues 167 ............... 3.8.12.2 Several Times W.I.P. Caused by Batches 168 .............................................. 3.8.12.3 When W.I.P. Accrues the Most 168 ..... 3.8.12.4 Buying May Incur Less WIP Than Building 168 .................................. 3.8.12.5 Build High-Cost Parts Last 169 ........... 3.8.12.6 If an Expensive Part Must Go in First, Reduce Its Cost 169 ...................... 3.8.13 Finished-Goods Inventory Can Be Cut by 10 Times 169 ...................................................... 3.8.14 coupling overhead changes to o verhead costs 170 .............................................. 3.8.14.1 Ways to Couple O.H. Charges to O.H. Costs 170 ........................................ 3.8.14.2 All Cost Decisions Must Be Based on Total Cost 170 ........................ 3.9 Manufacturable Research 171 ......................................... 3.9.1 The Gap between Concepts and Viable Products 171 ........................................................... 3.9.2 Research Fails So Much Because: 172 ................. 3.9.3 Importance of Early Concept Simplification 172 .................................................. 3.9.4 Concept Selection 173 3.9.5 Feasibility Verification 174 3.9.6 Design Effort Prioritization 174 3.9.7 Assuring Part Availability in Research 175 3.9.8 Achievable Tolerances 176 3.9.9 Skill Demands 177 ................................................. 3.9.10 Widely Available Processing 177 ......................... 3.9.11 Concurrent R&D 178 ............................................ 3.9.12 Offshoring Must Be Avoided in Ma nufacturable Research 178 .............................. 3.9.13 Time and Resources to do Ma nufacturable Research 178 .............................. 3.9.14 The Cost to Do Manufacturable Research 179..... 3.9.15 Implementation at Manufacturing Companies 179 ....................................................... 3.9.16 Management for Ambitious Goals 179 ...............
xvi • Contents 3.9.17 Importance of Ensuring Multifunctional Resources 179 ......................................................... 3.9.18 Consequences of Not Doing Ma nufacturable Research 180 .............................. 3.10 commercialization 180 .................................................... 3.10.1 Common Causes of Commercialization Challenges 180 ........................................................ 3.10.2 How to Best Develop Commercialized Products by Design 181 ........................................ 3.10.3 Identify and Preserve the “Crown Jewels” 181 .... 3.10.4 View Generically 181 ............................................ 3.10.5 Identify Supportive Hardware That Can Be Redesigned 182 ................................................. 3.10.5.1 Commercialization for Electronics 182 ....................................... 3.10.5.2 Commercialization for Hardware 183 .... 3.10.5.3 Consider Low-Risk Redesigns as above for the Crown Jewels Themselves 185 ....................................... 3.10.6 What Happens Without Commercialization? 185 ....................................... 3.11 Generating interest in DFM 187 ..................................... 3.11.1 Cost 187 ................................................................... 3.11.2 Time to Stable Production 187 3.11.3 Prioritization of Resources 188 3.11.4 Generate Data to Help Make the Case for DFM 188 3.11.5 Help Make the Case for DFM 189 3.11.5.1 Overcome Misconceptions about DFM 189 ....................................... 3.11.5.2 Overcome Resistance to Effective DFM 189 .................................. 3.11.6 Fastest Return on DFM Training and Implementation 190 ............................................... 3.11.6.1 Immediately Apply DFM in a Microclimate 190 .................................... 3.11.6.2 Redesign Backward-Compatible Module 190 .............................................. Notes 191 ........................................................................................
Section ii Flexibility
Contents • xvii
chapter 4 Designing for Lean & BTO 197 ............................................ 4.1 Lean Production 197 .......................................................... 4.1.1 Flow Manufacturing 198 ...................................... 4.1.2 Prerequisites 199 .................................................... 4.2 Build-to-Order 199 ............................................................. 4.2.1 Supply Chain Simplification 200 ......................... 4.2.2 Kanban Automatic Part Resupply 200 ................ 4.3 Mass customization 202 .................................................. 4.4 Developing Products for Lean, BTO&MC 203 ............... 4.5 Portfolio Planning for Lean, BTO&MC 204 ................... 4.6 Designing for Low-Volume/High-Mix 204 ..................... 4.6.1 Designing around Standard Parts 205 ................ 4.6.2 Raw Material Variety, Designing to Reduce 206 ... 4.6.3 Designing around Readily Available Parts/Materials 206 ................................................ 4.6.3.1 Minimizing Problems of Long L ead-Time Parts by Design 207 ............ 4.6.3.2 Avoiding Suppliers Whose Parts Have the Worst Long Lead-Times 209 4.6.4 Designing for No Setup 210 4.6.5 Parametric CAD 211 4.6.6 Designing for CNC 211 4.6.7 Grouping Parts 211 4.6.8 Understanding CNC 212 ...................................... 4.6.9 Eliminating CNC Setup 212 ................................. 4.7 Platform Family Design & Manufacture 213 ............... 4.7.1 Product Family Criteria 213 ................................. 4.7.2 Design Strategies for Integral Hardware 213 ..... 4.7.3 Design Strategies for Upgradability 214 ............. 4.7.4 Design Strategies for Platform Connectability 214 ................................................. 4.7.5 Power Supplies for Electronics Families 214 ...... 4.7.6 Bare Boards for Printed Circuit Boards Families 215 ............................................. 4.7.7 Product Families for Fabricated Products 216 .... 4.7.8 cellular Manufacture of Families in Platforms 216 .........................................................
xviii • Contents 4.8 Scalability 218 ..................................................................... 4.8.1 Scalability Value 218 .............................................. 4.8.2 Importance of Designing Products for Manufacturability 218 .......................................... 4.8.3 Product Not to Try to Scale 219 ........................... 4.8.4 Scalable Product Design Principles 220 ............. 4.8.4.1Material and Part Availability for Scalability 221 ................................... 4.8.4.2 Scalable Labor Force and Partners 222 ... 4.8.4.3 Equipment Availability and E xpandability 222 .................................. 4.8.4.4 Lean Production to Shift Production Lines 223 ............................. 4.8.4.5 Platform Synergy for Scalability 223 ... 4.8.4.6 Scalability Using Mass Customization Postponement 223 ....... 4.8.4.7 Production Machinery Capacity, How to Optimizing 223 ......................... 4.8.4.8 Optimizing Scale Strategies for Production Expandable Products 224 ... 4.8.5 Scalability Conclusions 225 .................................. 4.9 Modular Design 225 ........................................................... 4.9.1 Modular Design, Pros and Cons 225 .................. 4.9.2 Modular Design Principles 227 4.10 offshoring and Manufacturability 228 4.10.1 Offshoring’s Effect on Product Development 228 4.10.2 Offshoring’s Effect on Lean Production a nd Quality 229 ...................................................... 4.10.3 Offshoring Decisions Affecting Lean, BTO, and Platforms 229 ........................................ 4.10.4 The Offshoring, the Bottom Line 230 ................. 4.11 Lean and BTO&MC Value 231 ......................................... 4.11.1 Cost Advantages of BTO&MC 232 ..................... 4.11.2 Responsive Advantages of BTO&MC 233 .......... 4.11.3 Customer Satisfaction from BTO&MC 235 ....... 4.11.4 Competitive Advantages of BTO&MC 235 ........ 4.11.5 Bottom Line Advantages of BTO&MC 236 ....... Notes 236 ........................................................................................
Contents • xix chapter 5 Standardization 239 .............................................................. 5.1 Part Proliferation 241 ......................................................... 5.2 Part Proliferation Cost 241 ................................................ 5.3 Part Proliferation: Why it Happens 242 .......................... 5.4 Part Proliferation Consequences 245 ............................... 5.5 Part Standardization Strategy 245 .................................... 5.5.1 New Products 245 .................................................. 5.5.2 Existing Products 246 ........................................... 5.6 Early Standardization Steps 246 ....................................... 5.6.1 List Existing Parts 246 .......................................... 5.6.2 Clean Up Database Nomenclature 247 ............... 5.6.3 Eliminate Approved but Unused Parts 247 ........ 5.6.4 Eliminate Parts Not Used Recently 247 ............. 5.6.5 Eliminate Duplicate Parts 247 ............................. 5.6.6 Prioritize Opportunities for Standardization 248 ............................................... 5.7 Zero-Based Approach 249 ................................................. 5.8 Standard Part List Generation 250 ................................... 5.9 Part Standardization Results 255 ..................................... 5.10 Raw Materials Standardization 256 ................................. 5.11 Standardization of Expensive Parts 259 .......................... 5.12 Consolidation of Inflexible Parts 261 ............................... 5.12.1 Custom Silicon Consolidation 263 ...................... 5.12.2 VLSI/ASIC Consolidation 263 5.12.3 Consolidated Power Supply at Hewlett-Packard 263 5.13 Tool Standardization 265 5.14 Feature Standardization 265 5.15 Process Standardization 266 ............................................. 5.16 Encouraging Standardization 267 .................................... 5.17 Reusing Designs, Parts, and Modules 270 ...................... 5.17.1 Obstacles to Reusable Engineering 271 .............. 5.17.2 Reuse Studies 271 ................................................... 5.18 off-the-Shelf Parts 272 ..................................................... 5.18.1 Optimizing the Utilization of Off-the-Shelf Parts 272 .......................................... 5.18.2 Off-the-Shelf Parts Allow Teams to Focus on Products 273 ...........................................
Section iii cost Reduction
xx • Contents 5.18.3 How to Find and Select Off-the-Shelf Pa rts 274 ............................................................... 5.19 Procurement: New Role Needed 275 ................................ 5.19.1 How to Search for Off-the-Shelf Parts 275 ......... 5.19.2 Availability Maximization and Lead time Minimization 277 ...................................... 5.20 Standardization Implementation 278 .............................. Notes 280 .......................................................................................
chapter 6 Cost Categories 283 ............................................................... 6.1 How Not to Lower Cost 284 .............................................. 6.1.1 Why Cost Is Hard to Remove a fter Design 284 .................................................. 6.1.2 Cost-Cutting Doesn’t Work 286 .......................... 6.2 Cost Measurements 286 ..................................................... 6.2.1 Usual Definition of Cost 286 ................................ 6.2.2 Selling Price Breakdown 287 ................................ 6.2.3 Selling Price Breakdown for an Outsourced Company 287 .................................... 6.2.4 Overhead Cost Minimization Strategy 288 6.3 Overall Strategy to Cut Total Cost in Half From HalfCostProducts.com 290 6.4 Cost Minimization through Design 292 6.5 Minimizing Overhead Costs 293 6.6 Product Development Expenses, How to Lower Budgets 293 .......................................................................... 6.6.1 Product Portfolio Planning 294 ........................... 6.6.2 Multifunctional Design Teams 294 ..................... 6.6.3 Methodical Product Definition 295 .................... 6.6.4 Total Cost Decision Making 295 ......................... 6.6.5 Design Efficiency 295 ............................................ 6.6.6 Off-the-Shelf Parts 296 .......................................... 6.6.7 Product Life Extensions 296 ................................. 6.6.8 Debugging Costs 296 ............................................. 6.6.9 Test Cost 296 ........................................................... 6.6.10 Product Development Expenses 296 ...................
Contents • xxi 6.6.11 More Efficient Development Costs Less 297 ...... 6.6.12 Product Development Risk 297 ........................... 6.7 Cost Savings of Off-the-Shelf Parts 297 ........................... 6.8 How to Minimize Engineering Change Order Costs 298 ................................................................... 6.9 How to Minimize Cost of Quality 298 ............................ 6.10 Rational Selection for Lowest Cost Suppliers 299 .......... 6.11 Low Bidding 301 ................................................................. 6.11.1 Cost Reduction Illusion of Bidding 301 .............. 6.11.2 Cost of Bidding 302 ............................................... 6.11.3 Suppliers, Pressuring to Lower Cost 303 ............ 6.11.4 Cost Reduction, the Value of Relationships Instead of Bidding 304 .................. 6.11.5 Cheap Parts: Save Now, Pay Later 306 ................ 6.11.6 Reduce Total Cost Instead of Focusing on Cheap Parts 306 ................................................ 6.11.7 Part Quality: the Value of Selecting High-Quality Parts 307 ......................................... 6.12 How to Maximize Factory Efficiency 308 ....................... 6.13 Lowering Overhead Costs with Flexibility 308 .............. 6.14 How to Greatly Lower Customization/ Configuration Costs 309 .................................................... 6.15 Cost of Variety Minimizing 310 ....................................... 6.15.1 Work-in-Process Inventory 310 6.15.2 Floor Space 310 6.15.3 Internal Logistics 311 6.15.4 Utilization of Machine Tools 311 6.15.5 Setup Costs 311 6.15.6 Flexibility ..........................................................311 6.15.7 Kitting Costs 312 ................................................... 6.16 Materials Management Cost Minimizing 312 ................ 6.17 Marketing Cost Minimizing 313 ...................................... 6.18 Sales/Distribution Cost Minimizing 313 ........................ 6.19 Supply Chain Cost Minimizing ..................................314 6.20 Life Cycle Cost Minimizing ........................................314 6.20.1 Reliability Costs ...............................................314 6.20.2 Field Logistics Costs 315 ....................................... 6.21 Build-to-order as a Way to Save cost 315 .................... 6.21.1 Factory Finished Goods Inventory 315 ..............
xxii • Contents 6.21.2 Dealer Finished Goods Inventory 315 ................ 6.21.3 Supply Chain Inventory 316 ................................. 6.21.4 Interest Expense 316 .............................................. 6.21.5 Write-Offs 316 ........................................................ 6.21.6 New Technology Introduction 317 ...................... 6.21.7 MRP Expenses 317 ................................................ 6.22 Counterproductive Policy Cost Elimination 317 ........... Notes 318 ......................................................................................... chapter 7 Total Cost 321 ........................................................................ 7.1 Total Cost Value 322 ........................................................... 7.1.1 Value to Prioritization and Portfolio Planning 322 ........................................................... 7.1.2 Value to Product Development 323 ..................... 7.1.3 Value to Resource Availability and Efficiency 323 .......................................................... 7.1.4 Value of Knowing the Real Profitability to Product Portfolio Planning 323 ...................... 7.1.5 Value of Quantifying All Overhead Costs to Cost Reduction 324 ........................................... 7.1.6 Value of Knowing Real Supply Costs to Supply Chain Management 324 ........................... 7.2 Quantifying Overhead Costs 325 ..................................... 7.2.1 Distortions in Product Costing 325 .................... 7.2.2 Cross-Subsidies Caused by Inadequate Costing 325 7.2.3 Relevant Decision Making 326 7.2.4 Cost Management 327 7.2.5 Downward Spirals Caused by Inadequate Costing 327 ............................................................. 7.3 Total Cost Accounting, Resistance Encountered 328 ................................................................. 7.4 Total Cost Thinking 329 .................................................... 7.4.1 Between Total Cost Thinking and Total Cost Accounting 330 ............................................. 7.4.1.1 Waive Overhead Charges for Near-Zero Expenses 330 .......................
Contents • xxiii 7.4.1.2 Ultra-Low-Cost Product Development 330 .................................... 7.4.1.3 Commercial Spin-Offs of Military Products 331 ............................ 7.4.1.4 “Skunk-Works” or Profit/Loss Centers 331 .............................................. 7.5 Implementing Total Cost Accounting 331 ...................... 7.6 Cost Drivers 332 .................................................................. 7.6.1 Tektronix Portable Instruments Division Cost Drivers 333 ..................................................... 7.6.2 HP Roseville Network Division (RND) Cost Drivers 334 ..................................................... 7.6.3 HP Boise Surface Mount Center Cost Drivers 334 ..................................................... 7.7 Tracking Product Development Expenses 335 ............... 7.8 Low-Hanging-Fruit Approach to Total Cost 336 ........... 7.8.1 Estimates 337 .......................................................... 7.8.2 Implementing the Low-Hanging-Fruit Approach 338 ......................................................... 7.9 Implementation Efforts for ABC 338 ............................... 7.10 Total Cost Implementations: Typical Results 339 ............. Notes 340 ............................................................................................. Section iV Design Guidelines chapter 8 DFM Guidelines for Product Design 345 ............................ 8.1 Design for Assembly 346 .................................................... 8.1.1 Combining Parts 346 ............................................ 8.2 Assembly Design Guidelines 347 ...................................... 8.3 Fastening Guidelines 353 ................................................... 8.4 Assembly Motion Guidelines 356 ..................................... 8.5 Test Strategy and Guidelines 357 ...................................... 8.6 Testing in Quality versus Building in Quality 360 ........ 8.6.1 Testing in Quality with Diagnostic Tests 360 .... 8.6.2 Building in Quality to Eliminate Diagnostic Tests 360 ..............................................
xxiv • Contents 8.7 Design for Repair and Maintenance 361 ......................... 8.8 Repair Design Guidelines 361 ........................................... 8.9 Design for Service and Repair 365 ................................... 8.10 Design to Optimize Maintenance 366 ............................. 8.11 Maintenance Measurements 367 ...................................... 8.11.1 Mean Time to Repair 367 ..................................... 8.11.2 Availability Measurement 367 ............................. 8.12 Maintenance Guidelines 368 ............................................. Notes 369 ......................................................................................... chapter 9 DFM Guidelines for Part Design 371 .................................. 9.1 Part Design for Low-Cost Products 372 .......................... 9.1.1 The Effect of Metrics on Parts Cost 373 ............. 9.1.2 How the Wrong Cost Metric Can Discourage DFM Guidelines 373 ........................ 9.1.3 The Proper Role of Part Cost in Product Cost 374 .................................................... 9.1.4 The Best Way to Learn Guidelines—with E xamples 374 .......................................................... 9.2 Part Design Guidelines 375 ............................................... 9.2.1 DFM for Fabricated Parts 378 .............................. 9.3 Castings and Molded Parts Guidelines 384 .................... 9.3.1 DFM Strategies for Castings 384 ......................... 9.3.2 DFM Strategies for Plastics 385 ........................... 9.4 Sheet Metal Guidelines 386 9.5 Welding Guidelines 388 9.5.1 Understanding Limitations and Complications 388 9.5.2 Optimize Weldment Strategy for Manufacturability 389 .......................................... 9.5.3 Adhere to Design Guidelines 389 ........................ 9.5.4 Work with Vendors/Partners 389 ........................ 9.5.5 Print 3D Models 390 .............................................. 9.5.6 Learn How to Weld 390 ........................................ 9.5.7 Consider Low-Heat Welding 390 ........................ 9.5.7.1 Tab-in-Slot Welding 390 ....................... 9.5.7.2 Welding a Vacuum Chamber 390 ........ 9.5.8 Minimize Skill Demands 391 ..............................
Contents • xxv 9.5.9 Thoroughly Explore Non-Welding A lternatives 391 ..................................................... 9.6 Part Design for Large Part Low-cost Replacements 391 ............................................................... 9.6.1 The Main Problem with Large Parts . 391 ........... 9.6.2 Other Costs of Large Weldments 392 ................. 9.6.3 Residual Stresses 392 ............................................. 9.6.4 Avoiding Loss of Strength 392 ............................. 9.6.5 The Strategy 393 ..................................................... 9.6.6 The Approach 393 .................................................. 9.6.6.1 Fabrication 393 ....................................... 9.6.6.2 Assembly 393 .......................................... 9.6.7 The Procedure 394 ................................................. 9.6.8 The Results 394 ....................................................... Notes 395 .............................................................................. Section V customer Satisfaction chapter 10 Design for Quality 399 .......................................................... 10.1 Operations Help Assure Quality 400 ............................... 10.1.1 Lean Production’s Effect on Quality 400 ............ 10.1.2 Flow Manufacturing Helps Quality . 400 ............ 10.1.3 Focus Procurement on Quality 400 .................... 10.1.4 Avoid Change-Orders 401 .................................... 10.2 Quality Design Guidelines 401 ......................................... 10.2.1 Tolerances 405 ........................................................ 10.2.2 Excessively Tight Tolerances 406 ......................... 10.2.3 Worst Case Tolerancing 406 ................................. 10.2.4 Tolerance Strategy 407 .......................................... 10.2.5 Block Tolerances 407 ............................................. 10.2.6 Taguchi Method™ for Robust Design 408 ........ 10.3 cumulative effects on Product Quality 409 ................. 10.3.1 Example 410 ........................................................... 10.3.2 Effect of Part Count and Quality on Product Quality 410 .............................................. 10.3.3 Predictive Quality Model 411 .............................. 10.3.4 Quality Strategies for Products. 412 ....................
xxvi • Contents 10.4 Reliability Design Guidelines 413 .................................... 10.5 Measurement of Reliability 416 ........................................ 10.6 Reliability Phases 417 ......................................................... 10.6.1 Infant Mortality Phase 417 ................................... 10.6.2 Wearout Phase 418 ................................................ 10.7 Poka-Yoke (Mistake-Proofing) 418 ................................ 10.8 Poka-Yoke Principles 419 ................................................... 10.8.1 How to Ensure Poka-Yoke by Design 419 .......... 10.8.2 Solutions to Error Prevention after Design 421 ... 10.9 Strategy to Design in Quality 421 .................................... 10.10 Customer Satisfaction 423 ................................................. Notes 423 ......................................................................................... Section Vi implementation chapter 11 Implementing DFM 427 ........................................................ 11.1 Change and Concurrent Engineering 428 ...................... 11.1.1 Change at Leading Companies 432 ..................... 11.2 Training Preliminary Investigations 433 ........................ 11.2.1 Conduct Surveys 433 ............................................. 11.2.2 Estiassemblymate Improvements f rom DFM 434 ........................................................ 11.2.3 Get Management Buy-In 435 11.3 training for DFM 435 11.3.1 Need for DFM Training 435 11.3.2 Don’t Do DFM Training “On the Cheap” 436 11.3.3 Customize Training to Products, People, a nd the Company 436 ........................................... 11.3.4 Trainer Qualifications of Those Who Will Be Doing the Training 437 .......................... 11.3.5 Training Agenda for DFM Class 438 .................. 11.3.6 “What Applies Most From the Class?” 440 ........ 11.3.7 Training Attendance . 441 ..................................... 11.4 DFM Task Force 442 ........................................................... 11.5 counterproductive Policies and Actions that Thwart DFM implementation 443 .................................. 11.5.1 Don’t “Take All Order” 444 ..................................
Contents • xxvii 11.5.2 Don’t Sell Every Option Ever Sold and Accept All Customizations 444 ......................... 11.5.3 Don’t Develop All Products for All Customizers and Markets 444 ........................... 11.5.4 Don’t “Manage” NPD with Arbitrary Deadlines and Goals 445 .................................... 11.5.5 Don’t Depend on Reviews to Catch Design Problems and “Check for DFM” 445 ... 11.5.6 Don’t Thwart DFM with Lack of Funding, Resources, and Support 445 .............. 11.5.7 Don’t Beat Up Suppliers 446 .............................. 11.5.8 Don’t Compromise Quality with Cheap Part 446 ..................................................... 11.5.9 Don’t Measure “Cost” as Just Parts Cost. 447 .... 11.5.10 Don’t Try to Take Cost Out after the Product is Designed 447 ..................................... 11.5.11 Don’t Go for the Low Bidder on Custom Parts 447 ................................................................ 11.5.12 Offshoring Won’t Save Any Money Just Thwart C.E. 447 ............................ 11.5.13 Three of These Will Waste 2/3 of NPD Resources 448 ....................................................... 11.6 Implementation at the Company Level 448 .................... 11.6.1 Optimize NPD Teams 448 11.6.2 Optimize NPD Infrastructure 449 11.6.3 Incorporating DFM into the NPD Process 450 11.7 implementation for teams 451 11.7.1 Importance for Challenging Projects .........452 11.7.2 Microclimates and Skunk-Works ................452 11.7.3 Project Room for the Micro-Climate..........453 11.7.4 Ensuring Success for the First Team Concurrent Engineering Project 454 ................ 11.8 Implementation Done by Individuals ........................455 11.9 Students and Job Seekers Guidance ............................456 11.10 DFM Tasks, Results, and Tools 458 .................................. 11.11 Conclusions for Implementation of DFM 460 ................ Notes 460 .........................................................................................
xxviii • Contents Section Vii Appendices Appendix A: Product Line Rationalization 465 .................................... Appendix B: Summary of Guidelines 493 ................................................ Appendix C: Feedback Forms 501 ............................................................ Appendix D: Resources 507 ..................................................................... Index 517 ....................................................................................................
