Process and Product Design: Production Efficiency of Manufacturing Firms in Rivers State, Nigeria (original) (raw)
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Product design is a key indicator of a successful operational performance realization and is gaining robust momentum among Sugar Firms as a survival and growth strategy. The Sugar Firms in Kenya contribute approximately 26% directly to the Gross Domestic Product (GDP) and an additional 25% indirectly through agro-based and associated industries linkages. However, they have experienced a significant decline of milled sugar production from about 635,700 tonnes in 2015 to 491,100 tonnes in 2018 according to Kenya National Bureau of Statistics in 2019. This decline was mainly attributed to the high cost of production stemming from inefficiencies across the value chain from inadequate research and extension leading to the design of production systems that are inefficient. Despite the vast contribution of the Sugar Firms to the economy, this problem of inefficient production system has not been solved and thus the Sugar Firms performance continues to spiral downward leading to the dissolution of some firms, downscaling of operations etc. Reviewed the studies also, established a weak relationship between product design and operational performance and warrants investigation. It is in this regard that this study purposes to establish the effect of product design on operational performance of Sugar Firms in Kenya. The research was guided by the resource-based view theory and transaction cost theory. A census survey was conducted targeting all 164 managers and assistant managers of Sugar Firms in Kenya. A pilot study was conducted of 14 participants constituting of managers and assistant managers of seven departments in Transmara Sugar Company to test for reliability using Cronbach's alpha, with a threshold of 0.70, indicating satisfactory instrument reliability. The Cronbach's Alpha reliability coefficient obtained in this study was 0.849. Primary data was collected using questionnaires. A multiple linear regression model was applied to establish the association among explanatory variables in this study. The results established that product design significantly affects operational performance (β =0.742, p=.000), hence, adoption of a one-standard deviation increase in product design yields a significant 0.742 unit increase in operational performance for Sugar Firms. Indicating a positive and significant association between the two variables. Hence, the study offers a products design model that can assist in enhancing operational performance.
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Product development teams employ much method’s and tool’s as they design, test, and manufacturing a new (or improve) product. It is important that the product development team understand how their design and decisions affect manufacture system performances. Having this feedback early in the design processes avoids rework loop’s needed to solve problems of manufacturing capacity or cycle time. The team can incorporate this information and associated costs into a design decision problem aimed at choosing the best possible product design. It is clear that the product design, which requires a specific set of manufacturing operations, has a huge impact on the manufacturing cycle time. Reducing manufacturing cycle time has many benefits, including but not limited to lower inventory, reduced costs, improved product quality, faster response to customer orders, increased flexibility and a reduced time-to-market. Design for Production (DFP) refers to methods that evaluate a product design by ...
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European Journal of Business and Management, 2020
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Concurrent engineering (CE) design demands the consideration of product life-cycle issues in the early product design stage. Among various life-cycle issues, this work concentrates on production and how to optimize a product design to minimize its production costs. This paper proposes the use of cost as the measure of the productivity and defines Design for Production (DFP) as methods that lead to a product design with minimum production costs while satisfying all the functional requirements. Based on this definition, this work proposes a DFP methodology. The novelty of this methodology lies on three aspects 1) the use of the Operation-Based Costing (OBC) method to measure productivity, 2) the identification of relations and boundaries between product design and production activities, and 3) the integration of product design, production cost estimation, and metamodeling-based optimization to search for the optimal product design. The proposed DFP methodology has been applied to the optimal design of two industry products, an industrial silencer and a linear air diffuser. The results from these studies demonstrate the effectiveness of the proposed method, whose assumptions and limitations are also elaborated.