5 product and service design

7/30/2019 5 Product and Service Design

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4-1 Product and Service Design

CHAPTER

4

Product andService Design

McGraw-Hill/Irwin

Operations Management, Eighth Edition, by William J. StevensonCopyright 2005 by The McGraw-Hill Companies, Inc. All rights reserved.


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4-2 Product and Service Design Design Process

Copyright 2011 John 4-2


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Major factors in design strategy Cost

Quality

Time-to-market Customer satisfaction

Competitive advantage

Product and Service Design

Product and service design or redesign should be

closely tied to an organizations strategy


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Translate customer wants and needs intoproduct and service requirements

Refine existing products and services

Develop new products and services Formulate quality goals

Formulate cost targets

Construct and test prototypes Document specifications

Product or Service Design Activities


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4-5 Product and Service Design Reasons for Product or Service Design

Economic

Social and demographic

Political, liability, or legal

Competitive

Technological


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4-6 Product and Service Design Objectives of Product and Service Design

Main focus Customer satisfaction

Secondary focus

Function of product/service Cost/profit

Quality

Appearance

Ease of production/assembly

Ease of maintenance/service

S


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Taking into account the capabilities of theorganization in designing goods and

services

Designing For Operations

4 8 P d d S i D i


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Legal FDA, OSHA, IRS

Product liability

Uniform commercial code Ethical

Releasing products with defects

Environmental

EPA

Legal, Ethical, and Environmental Issues

4 9 P d t d S i D i


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4-9 Product and Service DesignRegulations & Legal Considerations Product Liability - A manufacturer is liable for

any injuries or damages caused by a faulty

product.

Uniform Commercial Code - Products carry animplication of merchantability and fitness.

4 10 P d t d S i D i


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4-10Product and Service DesignDesigners Adhere to Guidelines

Produce designs that are consistent with thegoals of the company

Give customers the value they expect

Make health and safety a primary concern Consider potential harm to the environment

4 11 P d t d S i D i


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4-11 Product and Service DesignOther Issues in Product and Service Design

Product/service life cycles How much standardization

Product/service reliability

Range of operating conditions

4 12 Prod ct and Ser ice Design


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4-12Product and Service DesignProduct Life Cycle

Introduction

Growth

Maturity

Decline

4 13 Product and Service Design

P d t Lif C l


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4-13Product and Service DesignProduct Life CycleIntroduction

Fine tuning

research

product development

process modification and enhancement supplier development


P d t Lif C l


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4-14Product and Service DesignProduct Life CycleGrowth

Product design begins to stabilize

Effective forecasting of capacity becomes

necessary

Adding or enhancing capacity may be necessary


P d t Lif C l


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4-15Product and Service DesignProduct Life CycleMaturity

Competitors now established

High volume, innovative production may be

needed

Improved cost control, reduction in options, paringdown of product line


P d t Lif C l


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4-16Product and Service DesignProduct Life CycleDecline

Unless product makes a special contribution, must

plan to terminate offering


P d t Lif C l S l C t d


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4-17Product and Service DesignProduct Life Cycle, Sales, Cost, andProfit

S

ales,

Cost&Pro

fit

.

Introduction Maturity DeclineGrowth

Cost of

Development

& ManufactureSales Revenue

Time

Cash flow

Loss

Profit



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4-18Product and Service DesignStandardization

Standardization Extent to which there is an absence of variety

in a product, service or process

Standardized products are immediatelyavailable to customers



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4 19Product and Service DesignAdvantages of Standardization

Fewer parts to deal with in inventory &manufacturing

Design costs are generally lower

Reduced training costs and time

More routine purchasing, handling, and

inspection procedures



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4 20Product and Service DesignAdvantages of Standardization (Contd)

Orders fillable from inventory Opportunities for long production runs and

automation

Need for fewer parts justifies increasedexpenditures on perfecting designs andimproving quality control procedures.



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4 21Product and Service DesignDisadvantages of Standardization

Designs may be frozen with too manyimperfections remaining.

High cost of design changes increases

resistance to improvements. Decreased variety results in less consumer

appeal.



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4 22Product and Service Design

Mass customization: A strategy of producing standardized goods

or services, but incorporating some degree

degree of customization

Delayed differentiation

Modular design

Mass Customization



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4 23Product and Service Design

Delayed differentiation is a postponementtactic

Producing but not quite completing a product

or service until customer preferences or

specifications are known

Delayed Differentiation



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4 24Product and Service DesignModular Design

Modular design is a form of standardization inwhich component parts are subdivided intomodules that are easily replaced orinterchanged. It allows:

easier diagnosis and remedy of failures

easier repair and replacement

simplification of manufacturing and assembly



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4 25Product and Service DesignReliability

Reliability: The ability of a product, part, or systemto perform its intended function under a prescribed

set of conditions

Failure: Situation in which a product, part, orsystem does not perform as intended

Normal operating conditions: The set of

conditions under which an items reliability isspecified

4-26Product and Service Design


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6 oduct a d Se ce es gComputing Reliability


0.90 0.90 0.90 x 0.90 = 0.81

Components in series



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gComputing Reliability


0.95 + 0.90(1-0.95) = 0.995

Components in parallel

0.95

0.90

R2

R1



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gSystem Reliability


0.90

0.92+(1-0.92)(0.90)=0.990.98 0.98

0.98 x 0.99 x 0.98 = 0.951

0.92 0.980.98



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gImproving Reliability

Component design Production/assembly techniques

Testing

Redundancy/backup

Preventive maintenance procedures

User education System design



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g

Robust Design: Design that results inproducts or services that can function over

a broad range of conditions

Robust Design



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gDesign for Robustness

Robust product designed to withstand variations in environmental and operating

conditions

Robust design yields a product or service designed to withstand variations

Controllable factors design parameters such as material used, dimensions, and form

of processing

Uncontrollable factors users control (length of use, maintenance, settings, etc.)




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gTaguchi Approach Robust Design

Design a robust product Insensitive to environmental factors either in

manufacturing or in use.

Central feature is Parameter Design.

Determines:

factors that are controllable and those notcontrollable

their optimal levels relative to major productadvances



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Product Development Stages

Idea generation Assessment of firms ability to carry out Customer Requirements

Functional Specification Product Specifications Design Review Test Market Introduction to Market EvaluationSc

opeo

fproductdeve

lopmentteam

Scope of design for

manufacturability and

value engineering teams



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Idea Generation

Ideas Competitor based

Supply chain based

Research based



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Idea Generation Stage

Provides basis for entry into market

Sources of ideas

Market need (60-80%); engineering & operations(20%); technology; competitors; inventions;

employees

Follows from marketing strategy Identifies, defines, & selects best market

opportunities



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Customer Requirements Stage

Identifies & positions key product benefits

Stated in core benefits proposition (CBP)

Example: Long lasting with more power

(Sears Die Hard Battery)

Identifies detailed list of productattributes desired by customer

Focus groups or1-on-1 interviews

House of Quality

Customer

Requirements

Product

Characteristics



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Functional Specification Stage

Defines product in terms of how theproduct would meet desired attributes

Identifies products engineering

characteristics

Example: printer noise (dB)

Prioritizes engineering characteristics

May rate product compared

to competitors

House of Quality

CustomerRequirements

Product

Characteristics



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Determines how product will be made Gives products physical specifications

Example: Dimensions, material etc.

Defined by engineeringdrawing

Done often on computer

Computer-Aided

Design (CAD)

Product Specification Stage

House of Quality

ProductCharacteristics

Component

Specifications

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Reverse EngineeringReverse engineering is the

dismantling and inspecting

of a competitors product to discoverproduct improvements.

4-40Product and Service Design h l t ( )


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Research & Development (R&D)

Organized efforts to increase scientificknowledge or product innovation & mayinvolve:

Basic Research advances knowledge about a

subject without near-term expectations ofcommercial applications.

Applied Research achieves commercialapplications.

Developmentconverts results of appliedresearch into commercial applications.



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Manufacturability

Manufacturability is the ease of fabricationand/or assembly which is important for:

Cost

Productivity

Quality

4-42Product and Service Design V l E i i


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Value Engineering

4-43Product and Service Design D i i f M f t i


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Designing for ManufacturingBeyond the overall objective to achievecustomer satisfaction while making areasonable profit is:

Design for Manufacturing(DFM)The designers consideration of theorganizations manufacturing capabilities when

designing a product.The more general term design for operationsencompasses services as well as manufacturing

4-44Product and Service Design C t E i i


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Concurrent Engineering

Concurrent engineering

is the bringing together

of engineering design andmanufacturing personnel

early in the design phase.

4-45Product and Service Design C t D i


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Concurrent Design


4-46Product and Service Design H i P d t D i


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PowerPoint presentation toaccompany Heizer/Render -

2004 by Prentice Hall, Inc.,Upper Saddle River, N.J.

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As Engineering

designed it.

1984-1994 T/Maker Co.

As Operations

made it.

1984-1994 T/Maker Co.

As Marketinginterpreted it.

1984-1994 T/Maker Co.

As the customerwanted it.

1984-1994 T/Maker Co.

Humor in Product Design

4-47Product and Service Design C t Aid d D i


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Computer-Aided Design

Computer-Aided Design (CAD) is productdesign using computer graphics.

increases productivity of designers, 3 to 10times

creates a database for manufacturinginformation on product specifications

provides possibility of engineering and costanalysis on proposed designs

4-48Product and Service Design P d t D t


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Engineering drawing

Shows dimensions,tolerances, & materials

Shows codes for GroupTechnology

Bill of Material

Lists components, quantities& where used

Shows product structure 1984-1994 T/Mak

Product Documents

4-49Product and Service Design E i i D i E l


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1-5/8

13/163/8

13/16

13/16

diameter

13/32

diameter 1/4 R

1

2-1/2

5/16

2-1/4

45

BracketScale: FULL

Drawn: J. Thomas A- 435-038

Engineering Drawing Example


Engineering Drawings - Show


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Engineering Drawings ShowDimensions, Tolerances, etc.


Bill f M t i l E l


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Bill of Material

P/N: 1000 Name: BicycleP/N Desc Qty Units Level

1001 Handle Bars 1 Each 1

1002 Frame Assy 1 Each 1

1003 Wheels 2 Each 21004 Frame 1 Each 2

1995 Corel Corp.

Bill of Material Example


Bill of Materials Manufacturing Plant


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PowerPoint presentation toaccompany Heizer/Render - 2004 by Prentice Hall, Inc.,Upper Saddle River, N.J.5-52

Bill of Material for a Panel Weldment Hard Rock Cafs Hickory BBQ

Bacon Cheeseburger

Number Description Qt

y

Description Qty

A60-71 Panel Weldmt 1 Bun

Hamburger Patty

Cheddar CheeseBacon

BBQ Onions

Hickory BBQ Sauce

Burger Set

Lettuce

Tomato

Red OnionPickle

French Fries

Seasoned Salt

11-inch Plate

HRC Flag

1

8 oz.

2 slices2 strips

cup

1 oz.

1 leaf

1 slice

4 rings1 slice

5 oz.

1 tsp

1

1

A 60-7R 60-17

R 60-428

P 60-2

Lower Roller AssemblyRoller

Pin

Locknet

11

1

1

60-72

R 60-57-1

A 60-4

02-50-1150

Guide Assem. Rear

Support Angle

Roller Assem.

Bolt

1

1

1

1

A 60-73

A 60-74

R 60-99

02-50-1150

Guide Assm, Front

Support Weldmt

Wear Plate

Bolt

1

1

1

1

Bill of Materials Manufacturing Plant

and Fast-Food Restaurant


A bl D i


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Shows exploded view of product

Head Neck

Handle

End

Cap

Assembly Drawing


Assembly Chart for


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1

2

3

SA1 A1

A2

Tuna Fish

Mayonnaise

Bread

Tuna

Assy

FG

Sandwich

Assembly Chart forA Tuna Sandwich


Assembly Drawing and Assembly Chart


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Assembly Drawing and Assembly Chart


Route Sheet


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Route Sheet

Lists all operationsRoute Sheet for Bracket

Sequence Machine Operation SetupTime

OperationTime/Unit

1 Shear # 3 Shear tolength

5 .030

2 Shear # 3 Shear 45corners

8 .050

3 Drillpress

Drill bothholes

15 3.000

4 Brakepress

Bend 90 10 .025


Work Order


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Work Order

1984-1994 T/Maker

Co.

Authorizes producing a given item, usually to a schedule


Engineering Change Notice (ECN)


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Engineering Change Notice (ECN)

A correction or modification of an engineering

drawing or bill of material


Service Design


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Service Design

Service Something that is done to or for a customer

Service delivery system

The facilities, processes, and skills needed toprovide a service

Product bundle

The combination of goods and services

provided to a customer Service package

The physical resources needed to perform the

service


Differences Between Product


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Tangibleintangible Services created and delivered at the same

time

Services cannot be inventoried Services highly visible to customers

Services have low barrier to entry

Location important to service

and Service Design


Phases in Service Design


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Phases in Service Design

1. Conceptualize2. Identify service package components

3. Determine performance specifications

4. Translate performance specifications intodesign specifications

5. Translate design specifications into delivery

specifications

4-62Product and Service DesignService


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Service

Design

Process

Copyright 2011 John


Service Blueprinting


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Service blueprinting A method used in service design to describe and

analyze a proposed service

A useful tool for conceptualizing a servicedelivery system


Major Steps in Service Blueprinting


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Major Steps in Service Blueprinting

1. Establish boundaries2. Identify steps involved

3. Prepare a flowchart

4. Identify potential failure points5. Establish a time frame

6. Analyze profitability




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Copyright 2011 John




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Copyright 2011 John


Characteristics of Well Designed


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gService Systems

1. Consistent with the organization mission

2. User friendly

3. Robust

4. Easy to sustain

5. Cost effective

6. Value to customers

7. Effective linkages between back operations

8. Single unifying theme

9. Ensure reliability and high quality


Challenges of Service Design


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Challenges of Service Design

Variable requirements Difficult to describe

High customer contact

Servicecustomer encounter

4-69Product and Service DesignHigh vs. Low Contact


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gServices

Facilitylocation

Convenient to customer

Design

Decision

High-Contact Service Low-Contact Service

Near labor or

transportation source

Facilitylayout

Must look presentable,

accommodate customer

needs, and facilitate

interaction with customer

Designed for efficiency

Copyright 2011 John


High vs. Low Contact


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Services

Quality

control

More variable sincecustomer is involved inprocess; customerexpectations and

perceptions of qualitymay differ; customerpresent when defectsoccur

Design

Decision

High-Contact Service Low-Contact

Service

Measured against

established standards;

testing and rework

possible to correctdefects

Capacity Excess capacity required

to handle peaks indemand

Planned for average

demand

Copyright 2011 John


High vs Low Contact Services


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High vs. Low Contact Services

Worker skills Must be able to interact

well with customers and

use judgment in decision

making

Design

Decision


Service

Technical skills

Scheduling Must accommodate

customer schedule

Customer

concerned only

with completion

date

Copyright 2011 John


High vs Low Contact Services


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High vs. Low Contact Services

Service process Mostly front-roomactivities; service maychange during delivery inresponse to customer

Design

Decision


Service

Mostly back-

room activities;

planned and

executed withminimal

interference

Servicepackage

Varies with customer;

includes environment as

well as actual service

Fixed, less

extensive

Copyright 2011 John


Quality Function Deployment


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Quality Function Deployment Voice of the customer

House of quality

Quality Function Deployment

QFD: An approach that integrates the voice of the

customer into the product and service development

process.


The House of Quality


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The House of Quality

Correlation

matrix

Design

requirements

Customer

require-

ments

Competitive

assessment

Relationship

matrix

Specifications

or

target values

Figure 4.4


House of Quality Example


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Customer

Requirements

Easy to close

Stays open on a hill

Easy to open

Doesnt leak in rain

No road noise

Importance weighting

Engineering

Characteristics

Energyneeded

toclosedoor

Checkforce

onlevel

ground

Energyneeded

toopendoor

Waterresistance

6363 45 27 6 27

7

5

3

3

2

X

X

X

X

X

Correlation:Strong positivePositive

NegativeStrong negative

X*

Competitive evaluation

X = UsA = Comp. AB = Comp. B(5 is best)

1 2 3 4 5

X AB

X AB

XAB

A X B

X A B

Relationships:

Strong = 9

Medium = 3

Small = 1Target values

Reduceenergy

levelto7.5

ft/lb

Reduceforce

to9lb.

Reduceenergy

to7.5

ft/lb.

Maintain

currentlevel

Technical evaluation

(5 is best)

54321

B

A

X

BA

X B

A

X

B

X

A

BXABA

X

Doorseal

resistance

Accoust.

Trans.

Window

Maintain

currentlevel

Maintain

currentlevel

House of Quality ExampleFigure 4.5


Operations Strategy


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1. Invest in R & D

2. Shift from short-term to long-term focus

3. Continuous Improvement

4. Increase emphasis on component

commonality5. Package products and services

6. Use multiple-use platforms

7. Consider tactics for mass customization

8. Look for continual improvement

9. Shorten time to market

Operations Strategy


Shorten Time to Market


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Shorten Time to Market

1. Use standardized components2. Use technology

3. Use concurrent engineering