Literature Review

3.2 DFSS overview

DFSS can be seen as Six Sigma applied earlier in the product lifecycle. Where Six Sigma is

used for existing products and processes DFSS is applied to new products and processes

with the goal to improve the designed product in terms of customer value, quality,

reliability and cost (Yang and El-Haik 2008). DFSS can be defined as “a disciplined process

that provides the user with a structured methodology for the efficient commercialization of

new products, processes and services” (Perry and Bacon 2006). In this definition a product

is an entity which can be sold to a company or consumer for use. A process is the

manufacturing or transactional process to create a product and a service is a value added

activity which is provided by the company to make the use of the product easier for the

customer. DFSS spreads over the whole product lifecycle process from identification of

customer needs to the launch of the commercialized product or service.

Usually DFSS projects try to increase the sales revenue generated from new products to

improve the financial situation of a company, but these can also include the development of

new or enhanced applications, services or process technologies designed to increase sales or

lower costs (Perry and Bacon 2006).

3.2.1 Differences between Six Sigma and DFSS

Although both Six Sigma and Design for Six Sigma have their similarities and DFSS can be

seen as the predecessor of Six Sigma, there are some important differences between the two

methods (Brue and Launsby 2003):

• Six Sigma is intended for existing products or services, while DFSS is for new

products, services or processes;

• Six Sigma is more focused on reacting, detecting and resolving problems, while

DFSS is a more proactive approach as a means of preventing problems;

• Six Sigma is based on manufacturing or transactional processes and DFSS is

focused on marketing, research and development and design;

• Six Sigma projects allow for a more quickly quantification of financial benefits, while

DFSS financial benefits are more long term as well;

• DFSS involves a greater cultural change than Six Sigma, because it represents a

major change in roles as there is a cross-functional team and for all members it is

important to be involved in all aspects of the design process, from market research

to product launch.

In a dynamic environment such as the R&D department of the organization people are

continually working towards creating new solutions for wants or needs that already exist or

might exist in the future. For a case like this DFSS seems to be the better solution and

although the organization is theoretically working according to this method, in practice it

turns out there is room for improvement.

3.2.2 DFSS Application (150 words)

3.2.3 DFSS Tools (as a points)

3.3 Chapter Summary

Chapter 4: New Product Development

4.1 Introduction

Many successful industrial companies choose product development as a means of

acquiring, strengthening and maintaining market share and competitive advantage.

Product development is the process of creating a new product to be sold by a business or

enterprise to its customers. Design is an important step in the product development

process. Design refers to those activities involved in creating the styling, look and feel of

the product, deciding on the product's mechanical architecture, selecting materials and

processes, and engineering the various components necessary to make the product work.

Development refers collectively to the entire process of identifying a market opportunity,

creating a product to appeal to the identified market, and finally, testing, modifying and

refining the product until it is ready for production. A product can be any item from a

book, musical composition, or information service, to an engineered product such as a

computer, hair dryer, or washing machine (Robert, 2005).

4.1.1 Concept of Product Design and Engineering Design

Design has two concepts, product design and engineering design. Product Design is

concerned with the concretion of a product. It is concept visualization in actual

dimensions. A product that is a real object can be touched and handled. One has to plan

for handling by a human being or on a human body when considering its shape and

weight. It can be ergonomically tested in its usage, working, and handling conditions.

Treatments of surfaces, proper textures, proper interactive devices are all earnestly

examined for recommended actions during a product’s design. The choice of material,

shape formation, molding, cutting and add-ons, joints-all such essential details need to be

considered part of “Dimensionality” and evaluated in a prototype. Visible outer surfaces

and proper inner clearances for moving parts are crucial aspects o f product visibility and

function. Since products occupy some space, the consideration of the essential

unoccupied area around the product and their proportions to each other is an equally

important aspect of Product Design.

Engineering Design is mainly concerned with manufacturing the ingredients / parts of a

product: their tooling, surfacing finishing and finally assembly. The interaction of

moving parts, their interaction, procedural dependency and the overall performance of

individual components and assemblies is o f prime importance. At each stage the

application of proper tools and technology, reduced production time and improved cost

structures make the Engineering Design concept qualitatively superior and hence

marketable. Engineering Design is also influenced by a product’s usage, maintenance,

replacement of parts or innovation, as needed (CAD SPAGHETTI, 2001).

4.2 Challenges to the New Product Development

4.2.1 Difficulty of New Product Development

Depending on which engineering discipline is being considered, any or all of the

following factors must be evaluated as part of the engineer's design solution (Subhash, 2002).

• Power. The amount the product produces or consumes.

• Speed. How fast does it operate? How long will it take to manufacture?

• Cost. The price to the consumer to purchase, the cost to the company to

manufacture, and the cost its implementation will have on society in general.

• Reliability. How well does it operate? How long will it last? Is it a quality

product?

• Safety. Are there any health risks?

• Functionality. Does it perform the desired tasks effectively?

• Ease of use. Can the customer operate it easily and intuitively?

• Aesthetics. Is it pleasing to see, feel, touch, or hear.

• Ethics and social impact. Will it benefit or harm people and the social or

physical environments in which they live?

• Maintainability. How easily and cost-effectively can it be kept in good working

order?

• Testability. How easily and effectively can it be tested by the manufacturer prior

to volume production for the market?

• Manufacturability. What issues must be addressed in the manufacture of the

product?

4.2.2 New Product Development is Time Consuming and Costly

The task of developing outstanding new products is difficult, time-consuming, and costly.

People who have never been involved in a development effort are astounded by the

amount of time and money that goes into a new product. Great products are not simply

designed, but instead they evolve over time through countless hours of research, analysis,

design studies, engineering and prototyping efforts, and finally, testing, modifying, and

re-testing until the design has been perfected.

Few products are developed by a single individual working alone. It is unlikely that one

individual will have the necessary skills in marketing, industrial design, mechanical and electrical engineering, manufacturing processes and materials, tool-making, packaging

design, graphic art, and project management, just to name the primary areas of expertise.

Development is normally done by a project team, and the team leader draws on talent in a

variety of disciplines, often from both outside and inside the company. As a general rule,

the cost of a development effort is a factor of the number of people involved and the time

required to nurture the initial concept into a refined product. Rarely can a productionready

product be developed in less than one year, and some projects can take three to five

years to complete.

New product development or improvement on existing products in today’s technologydriven

markets carries significant risks. Studies indicate that new product failure rates can

be as high as one out of every three products (Yelkur, 1996).

4.3 Problems in Product Development

4.3.1 Economy Globalization

Three fundamental factors have affected the process of economic globalization and are likely to continue driving it in the

future (Michael, 2000).

First, improvements in the technology of transportation and communication have reduced

the costs of transporting goods, services, and production as well as communicating

knowledge and technology.

Second, the mood of individuals and societies has generally, but not universally, favored

taking advantage of the opportunities provided by declining costs of transportation and

communication through increasing economic integration.

Third, public policies have significantly influenced the character and pace of economic

integration, although not always in the direction of increasing economic integration.

Increasing globalization and worldwide competition due to significant political changes,

open markets, and fostered by the increased communication network’s capability, has

totally altered international business relationships. There are two major changes to the

business models: reduction of product development cycle time and reduction of cost.

Since worldwide competition offers customers more opportunities to fulfill their desires,

customer demand and call for innovative, customized products increases. This increased

product capability has resulted in highly interrelated development systems, integrating

diverse requirements and knowledge. Desire for product variety and customization thus

forces a trend toward complexity and integration. To meet open market windows in

highly dynamic markets, companies have to reduce their development cycle time, while

increasing their total corporate flexibility to respond to changing markets and keep their

development efforts on track.

Outsourcing, which can reduce product cost significantly, is another trend to meet the

requirement of globalization and worldwide competition.

4.3.2 Timing is always a Key Role in Competition

Suppliers to the engineering community are keen to stress their role in helping their

customers get their products to market faster. Making the design process faster and

cheaper while maintaining quality is a critical element o f this, but what does the

engineering design community see as the barriers to making this happen? CAD

SPAGHETTI, The Business Advantage Group Pic, interviewed senior decision makers at

250 Mechanical Engineering sites to find out what they perceived as the barriers - if any -

to implementing change and improving their design processes (CAD SPAGHETTI, 2000).

4.3.3 Requirements of Product Localization

Under the background of globalization, production of parts often needs to be localized.

For the following reasons, engineering change was often required in the localization

process:

a. Product needs new design to fit the local culture

b. Material is not available

c. Technology is not available

d. Trained workforce is not available

e. Manufacturing equipment is not available

4.3.4 Examples of Changes

· The cycle development time from concept to production has been compressed

significantly in the past 10 years, for example:

1992: 60 months

1996: 48 months

2000: 18 months

· Vehicle designs are tailored to focused markets

· Vehicles are being manufactured more on a global scale

· Vehicles are designed increasingly through multiple engineering sites around the

world

· The need for enabling companies throughout the supply chain and extended

enterprise to share information through a web-centric visualization approach

4.4 Robust Design and Design for Six Sigma Meets the Challenge

The Robust Design method, also called the Taguchi Method, pioneered by Dr. Genichi

Taguchi, greatly improves engineering productivity. By consciously considering the

noise factors (environmental variation during the product's usage, manufacturing

variation, and component deterioration) and the cost of failure in the field the Robust

Design method helps ensure customer satisfaction. Robust Design focuses on improving

the fundamental function of the product or process, thus facilitating flexible designs and

concurrent engineering. Indeed, it is the most powerful method available to reduce

product cost, improve quality, and simultaneously reduce development interval (Madhav, 1989).

Over the last five years many leading companies have invested heavily in the Six Sigma

approach aimed at reducing waste during manufacturing and operations. These efforts

have had great impact on the cost structure and hence on the bottom line of those

companies. Many of them have reached the maximum potential of the traditional Six

Sigma approach. What would be the engine for the next wave of productivity

improvement?

Brenda Reichelderfer of ITT Industries reported on their benchmarking survey of many

leading companies, "design directly influences more than 70% of the product life cycle

cost; companies with high product development effectiveness have earnings three times

the average earnings; and companies with high product development effectiveness have

revenue growth two times the average revenue growth.” She also observed, "40% of

product development costs are wasted!"

These and similar observations by other leading companies are compelling them to adopt

improved product development processes under the banner Design for Six Sigma. The

Design for Six Sigma approach is focused on 1) increasing engineering productivity so

that new products can be developed rapidly and at low cost, and 2) value based

management.

4.5 Chapter Summary