Integrating Design and Manufacturing for Competitive Advantage

311 Pages·1992·18.45 MB·English

by  Gerald I. Susman

Integrating Design and Manufacturing
For Competitive Advantage
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INTEGRATING DESIGN
AND MANUFACTURING
FOR COMPETITIVE
ADVANTAGE
Edited by
Gerald I. Susman
New York Oxford
OXFORD UNIVERSITY PRESS
1992
Oxford University Press
Oxford New York Toronto
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and associated companies in
Berlin Ibadan
Copyright © 1992 by Oxford University Press, Inc.
Published by Oxford University Press, Inc.,
200 Madison Avenue, New York, New York 10016.
Oxford is a registered trademark of Oxford University Press.
All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system, or transmitted, in any form or by any means,
electronic, mechanical, photocopying, recording, or otherwise,
without the prior permission of Oxford University Press.
Library of Congress Cataloging-in-Publication Data
Integrating design and manufacturing for competitive advantage /
edited by Gerald I. Susman.
p. cm. Includes bibliographical references.
ISBN 0-19-506333-3
1. Design, Industrial. 2. Engineering design.
3. New products.
I. Susman, Gerald I.
TS171.4.1575 1992
658.5'752—dc20 91-36271 r 91
987654321
Printed in the United States of America
on acid-free paper.
PREFACE
This book is about managing the new product development process, particularly about
integrating the design, development, and manufacturing functions so that high quality
products can be introduced to the market faster and at competitive prices. Customers,
suppliers, and internal company functions, such as marketing, purchasing, and ac-
counting, also need to be integrated into the new product development process, but
the dynamics of inclusion and integration of all relevant players can be understood
by focusing on the design-manufacturing interface. This interface is, perhaps, the
most complex of those encountered in cross-functional product development teams.
Mastering this interface is more than adequate preparation for dealing with the others.
The study of the design-manufacturing interface begins with appreciation of the
strategic capabilities that companies need to develop in order to manage this interface
effectively. Several chapters of this book discuss strategic capabilities, such as the
systematic development and introduction of new technologies into products and pro-
cesses and the use of appropriate tools and techniques to facilitate communication
and problem-solving between design and manufacturing personnel. Also discussed is
learning from experience, a strategic capability that companies can strengthen and
accelerate by providing sufficient opportunities for such learning to occur. These
strategic capabilities provide a basis for understanding the specific actions that key
product development personnel take and increasing the likelihood that their actions
will be successful. Several chapters also discuss the social, political, and cultural
context within which these key players interact. This context can facilitate or inhibit
the prospects for successsful integration between functions.
The study of the design-manufacturing interface also requires appreciation of the
degree to which the new product development process is information intensive. Man-
aging the type of information to be processed and developing an effective structure
for processing information are critical to new product development success. The in-
formation intensive nature of the product development process is demonstrated
throughout the book and prompted the development of a model in the book's final
chapter that links the role of information in the product development process and a
company's capability to organize, process, and learn from that information.
Competition in many domestic and international markets appears to be entering
a new phase, in which product quality and performance are becoming more important
to customers than price. Companies that can introduce superior products to such
markets sooner will earn higher profits and gain market share at the expense of their
slower competitors. In such markets, the effective management of the new product
development process is the essence of competitive advantage.
University Park, Pennsylvania G. I. S.
December 1991
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ACKNOWLEDGMENTS
This book was planned as a counterpart to the Klein Symposium on the Management
of Technology that was held at Penn State in August 1990. The book was intended
as an opportunity for researchers to present their current ideas and research on ways
to improve the new product development process. The Klein Symposium was de-
signed as an opportunity for researchers and executives to share ideas and experi-
ences on the same subject. Although the book and symposium were separate projects,
I had hoped for maximum synergy between them. I believe that this hope has been
realized.
The contributing authors mailed copies of their chapters to each other and came
to Penn State two days prior to the start of the symposium. They discussed and
critiqued all the chapters, then stayed to hear presentations by eight senior executives
and to participate in discussions with them. In turn, the executives received abstracts
of the authors' chapters prior to their arrival at Penn State and commented on them
during the symposium. The executives influenced the book chapters in both subtle
and explicit ways. When the latter was the case, the authors cite the appropriate
presentations in their chapters. However, I thank all the executives for their general
influence on the book. They are Satish Agrawal, Polaroid; Ronald B. Campbell, Jr.,
Xerox; James Coraza, IBM; Larry Dittmann, AMP; William E. Hoglund, General
Motors; Richard Sphon, Corning; Louis C. Varljen, Armstrong World Industries;
Joseph W. Yanus, Alcoa.
I thank Robert and Judith Klein, whose generosity made the Klein Symposium
on the Management of Technology possible. They contributed immeasurably to the
quality of the book by providing me with the funds to invite all the contributing
authors to work on their chapters face-to-face and to participate in the symposium.
Also, their warm personalities have made the transition of their role as benefactors
to that of good friends seem natural and effortless.
I also thank Judith Sartore, Supervisor of the Research Publications Center at
the Smeal College of Business Administration at Penn State. Most professors would
be pleased simply to receive a typed manuscript on time with few typographical
errors. It is exceptional, however, to work with someone who has excellent editing
skills and the capability to attend to details that would be overlooked by almost
anyone else. Barbara Apaliski's able assistance in preparation of the manuscript de-
serves recognition also.
Finally, I thank my wife, Liz, but not for the reason often given in acknowledg-
ments, that is, for patience and understanding while I worked on this book. She also
is a very busy academic and I have to muster as much patience and understanding
for her projects as she does for mine. Instead, I simply thank her for being who she
is and for bringing out the best in me.
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CONTENTS
Contributors, xi
1. Integrating Design and Manufacturing for Competitive Advantage, 3
Gerald I. Sustnan
PART I STRATEGIC CAPABILITIES
2. Competitive Advantage Through Design Tools and Practices, 15
Stephen R. Rosenthal and Mohan V. Tatikonda
3. Design for Manufacturing in an Environment of Continuous Change, 36
Susan Walsh Sanderson
4. Productivity in the Process of Product Development—
An Engineering Perspective, 56
Philip Barkan
5. The Development/Manufacturing Interface: Empirical Analysis of the
1990 European Manufacturing Futures Survey, 69
Arnoud De Meyer
6. Modular Design and the Economics of Design for Manufacturing, 82
Gordon V. Shirley
PART II DFM AND
THE NEW PRODUCT DEVELOPMENT PROCESS
7. Concept Development Effort in Manufacturing, 103
John E. Ettlie
8. Prototypes for Managing Engineering Design Processes, 123
E. Allen Slusher and Ronald J. Ebert
9. Managing DFM: Learning to Coordinate Product and
Process Design, 140
Paul S. Adler