Design and Costs

Question 1

What are the four things you need to maximise and four things you need to minimise for world class level performance?

Sketch the Diagram.

Answer 1

Maximise:
Overall Productivity
Customer Satisfaction
Profitability
Quality

Minimise:
Unscheduled Changes
Time to Market
Cost of Quality
Inventory

(These are also performance indicators)

Question 2

Draw the graph of Company E and Company L for Sales Volume vs Time.

Answer 2

See graph

Question 3

Draw the graph of Company E and Company L for Unit Cost/Price vs Time.

Answer 3

See graph

Question 4

Draw the graph of the cost committed and the cost incurred over the product lifecycle phases.

Answer 4

See graph

Question 5

Draw the graph displaying the cost of implementing a change and the degree of freedom over the product lifecycle phases.

Answer 5

See graph

Question 6

What is the influence of design?

Answer 6

Determines the overhead costs and in the long term also the fixed costs.

Investing in design is relatively inexpensive and risk-free – as it is not a capital-intensive activity.

The source of productivity improvements lies in the product’s design, which largely dictates the scope of the manufacturing process.