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Agile Product Development for Mass Customization How to Develop and Deliver Products for Mass Customization, Niche Markets, JIT, Build-To-Order and Flexible Manufacturing

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Title: Agile Product Development for Mass Customization How to Develop and Deliver Products for Mass Customization, Niche Markets, JIT, Build-To-Order and Flexible Manufacturing


1
Agile Product Development for Mass
Customization How to Develop and Deliver Products
for Mass Customization, Niche Markets, JIT,
Build-To-Order and Flexible Manufacturing
Anderson, 2003
Anderson, 2004
Anderson, 1996
Anderson, 1991
2
Design for Manufacturability (DFM)
  • The practice of designing products with
    manufacturing processes in mind so that
  • The transition into production will be quick and
    smooth without the usual "fire-fighting,"
    problem-solving, and Engineering Change Orders
    (ECOs).
  • Low cost will be accomplished by the design
    itself, not by "cost reduction" measures.
  • Quality and reliability will be designed-in, not
    accomplished by slow and costly inspections and
    rework.
  • Products will be built quickly and flexibly with
    low overhead cost.
  • Variety and customization will be handled
    efficiently

Source Anderson, 1991
3
Product Design Product Costs
                                                  
            
4
Concurrent Engineering (CE)
  • CE Designing products in multi-disciplinary
    teams that results in the simultaneous design of
    the product and the processes.
  • Concurrent Engineering Design Teams should
    consist of all the necessary engineering
    specializations, industrial designers, and
    representatives from manufacturing, service,
    marketing, quality, purchasing, finance,
    regulatory compliance, plus key vendors.

Source Anderson, 1991
5
CEDT - Benefits
  • Having all the specializations on the team
    ensures that all the design considerations will
    be "covered."
  • Such diversity can lead to a better design
    because of contributions from many perspectives.
    This synergy can produce better results than
    would be generated from a homogeneous "team"
    consisting only of design engineers or
    scientists.
  • Issues can be identified and resolved earlier
    with a complete team.

Source Anderson, 1991
6
Benefits of DFM and Concurrent Engineering
  • Costs are reduced
  • because simpler designs can be more easily
    fabricated and assembled. DFM designs have fewer
    parts that can be consistently built by standard
    manufacturing processes.
  • Development time and costs are reduced
  • because of reusable engineering, modular
    designs, standard common parts, use of purchased
    parts, maximum use of existing plant equipment,
    and less need for engineering change orders and
    redesigns.

Source Anderson, 1991
7
Benefits of DFM and Concurrent Engineering
  • Quality and reliability are increased
  • because products are designed with standard parts
    of known quality, have fewer parts from fewer
    vendors, and can be built by known processes.
  • Quicker time-to-market and delivery
  • because the product is designed right the first
    time and flows through known factory processes
    without problems.

Source Anderson, 1991
8
Rationalizing Product Lines
  • Cost of Variety offering customers inflexible
    products produced in inflexible factories and
    sold through inflexible channels gtgtgtgtgtgtgtgtOVERHEAD
  • The purpose of product line rationalization is to
    eliminate or out-source products, options, and
    features that
  • have low sales
  • are not really appreciated by customers
  • are problem prone
  • have excessive overhead demands
  • utilize unusual parts
  • have limited future potential
  • dont "fit" into a flexible environment,
  • or may really be losing money

Source Anderson, 1996
9
Rationalizing Product Lines
  • Most companies have methodical procedures to add
    products to the product line, but few have any
    procedures at all to remove products from the
    product line. So old, low-leverage products
    accumulate and progressively erode a companys
    competitive position.
  • The anti-dote to part/product proliferation.

Source Anderson, 1996
10
Product Line Rationalization Issues
  • The "Complete Catalog" issue
  • Can you outsource low-volume parts/products that
    dont fit?
  • Product Costing and Profitability
  • Typical product costing systems do a poor job of
    identifying money-losing products because
    overhead is not tracked instead, it is
    "allocated" to all products (good and bad), an
    averaging process based on some arbitrary
    algorithm.
  • Thus, good products subsidize bad products. The
    net result is that good products cost more than
    they should (because of this averaged overhead)
    and the bad products are being sold at a loss.

Source Anderson, 1996
11
Product Line Rationalization Issues
  • The customer satisfaction issue
  • Customer satisfaction will actually be lower if
    you waste your resources making low-leverage
    products instead of capitalizing on opportunities
    to give customers better innovation, lower cost,
    better quality, and efficiently manufactured
    variety. However, customers will probably miss
    the good deals you were giving them on your
    money-losing products.
  • Customer choice issue
  • Often customers keep ordering older/unusual
    products because of arbitrary decisions, lack of
    awareness about newer/better replacements, or
    just plain inertia.

Source Anderson, 1996
12
Product Line Rationalization Issues
  • Loss-Leaders
  • If low-leverage products are to be retained as
    "loss leaders," then management should know how
    much money is really being lost (including
    opportunity losses).
  • Consider competitive scenarios
  • A savvy competitor would not blindly compete
    against your complete product line. It would
    offer only the most profitable products. Not
    burdened by your low-leverage products, it would
    be able to make the rationalized product line
    quicker, better, at lower cost. Thus, competitors
    could steal your cash cows leaving you with the
    dogs.

Source Anderson, 1996
13
Standardization
  • The bridge between existing products and new
    products designed using MC rules.
  • Prerequisite to any of the agile paradigms
  • Mass Customization, Agile Manufacturing
  • Just-in-time, Flexible Mfg., Build-to-Order
  • It is imperative that agile companies
    standardize on part, processes, tools, features,
    raw materials and procedures.
  • Short setups are mandatory

14
GM Skateboard Car
  • Click here Fortune Magazine graphic
  • Popular Science pictures

15
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