Question

A local product designer and manufacturer of precision plastic components for the EU toy industry has recently had a number of customer requests to provide small quantity of prototype components (200 off) to his customers prior to moving to volume production. The customer may initially order 200,000 of the item however they are uncertain as to the subsequent volume of sales of the product It is essential that the prototype components are consistent with one another and can be used for compliance with the relevant safety standards. He has requested you to prepare a report outlining a means of generating these components both rapidly and as cheaply possible. He has requested prototype models that will be capable of being tested in service and will be capable of sustaining impact forces typical of production requirements. Recommend an approach that will meet hi requirements including the following elements 1. Outline the main alternatives that can be adopted 2. Explain the criteria for selecting which approach is most appropriate 3. Select one of the alternatives and explain it in detail Cite relevant examples to justify your answer

Answer 1

(A): Since the initial requirement is to provide few prototypes (~200) to his customers, there are 3 options available:

1) Manual Approach where in the requirement will be of skilled contract based labor who can help deliver the ~200 odd component prototypes needed

2) Semi-Automated Approach wherein the combination of skilled labor and machinery will be involved based on the processes to be carried out in order to manufacture the product

2) Automated approach wherein the processes are automated using modern machinery which can deliver the components at a much quicker rate and with improved precision

(B) There are several Criteria which needs to be taken in to consideration before selecting the approach:

• Demand: Demand is a very important factor at the time of the new product introduction. If the demand is huge, then automated approach helps. If not, then manual or semi-automated approach should be considered
• Cost: Cost is a very essential parameter. If the product is new in the market, its better to have lesser investment in terms of Infrastructure and various other fixed costs
• Quality: Quality has to be maintained since it is very important to establish a loyal customer base who would trust in the product
• Skilled Labor: This is very important parameter since the skilled Contract Based labor will help achieve the desired consistency and precision
• Safety Standards: It is very important to maintain the Industry wide safety standards
• Legal & Compliance: Legal and Compliance requirements should be met

(C)Since the future demand of the product is uncertain and the initial requirement is 200 odd prototypes, I would go with the first approach i.e Manual Approach. This would involve hiring of Contract Based Skilled Labors to deliver the initial task. The labors have to be skilled enough to maintain the consistency and precision of the product. This would require setup of Standard Operating Procedures and manuals which should guide the labors on the processes involved which would help them achieve the necessary consistency and precision. The investments should not be fixed at the initial stage such as expenses of infrastructure, machinery, etc. The Cost incurred should be low and should be variable like cost of contract based labor. This will ensure that if something goes south, then the huge fixed costs are not incurred. The labors have to be skilled since it is very essential to maintain the Quality. Various tests have to be performed on the product which will ensure the durability of the product. Industry wide Safety standards should be met which would create a good first impression of the product in the market. Last, but not the least, it is very important to meet the legal requirements.

Once there is more certainty in the demand, it will be essential to switch to Semi Automated Approach which would help improve on the Product Lead time in the market and also increase the volume and quality of the product and then based on the demand, it can be moved to Completely automated process for huge volumes of the product.