The Product Design Process

1. The Product Design Process • Concept Development • Product Planning • Product/Process Engineering • Pilot Production/Ramp-Up 2

2. How do you determine what thecustomer wants? • Quality Function Deployment • Inter-functional teams from marketing, design engineering, and manufacturing • Voice of the customer (for new and existing products) • House of Quality 4

3. House of Quality Correlation: Strong positive X Positive X X Negative X X X Strong negative * Engineering Characteristics Competitive evaluation X = Us Check force on level ground Energy needed to close door Energy needed to open door Accoust. Trans. Window Door seal resistance A = Comp. A Water resistance Importance to Cust. B = Comp. B Customer Requirements (5 is best) 1 2 3 4 5 AB X Easy to close 7 X AB Stays open on a hill 5 Easy to open 3 XAB A X B Doesn’t leak in rain 3 No road noise 2 X A B 10 6 6 9 2 3 Relationships: Importance weighting Strong = 9 Medium = 3 Target values Reduce energy level to 7.5 ft/lb Reduce energy to 7.5 ft/lb. Small = 1 Reduce force to 9 lb. Maintain current level Maintain current level Maintain current level 5 BA BA B B BXA X Technical evaluation (5 is best) B 4 X A X A 3 A X 2 X 1 6 3 2 1 7 4 5 5

4. Product Design • Value Analysis/Value Engineering • Simplification of products and processes • Cost reduction and avoidance • Design for Manufacturability • Traditional approach • Concurrent engineering • Design for Assembly • Global Product Design 6

5. Concurrent Engineering • Concurrent engineering can be defined as the simultaneous development of design functions, with open and interactive communication existing among all team members for the purpose of: • reducing time to market • decreasing cost • improving quality and reliability 3

6. Phased versus Overlapping Approach in New Product Development Information batch size Activity 1 Phased Approach Design information processing Single batch transfer of info Activity 2 Start of Activity 2 Activity 3 Elapsed time Start of Activity 3 Activity 1 Overlapping Approach Design information processing Small batch transfer of info Activity 2 Start of Activity 2 Elapsed time Start of Activity 3 ____________________________________________________________ “New Product Development: The New Time Wars” Joe Blackburn, 1991. 3a

7. Types of Processes • Conversion - e.g., creating steel from iron ore • Fabrication - e.g., forming steel into cans • Assembly - e.g., put cans, lids and ingredients together • Testing - e.g., testing for sealed weight 7

8. Process Flow Structures • Job shop • Batch • Assembly Line • Continuous Flow 8

9. Exhibit 5.10, p.168: The Product - Process Matrix Few Major Products, Higher Volume High Volume, High Standard- ization Low Volume One of a Kind Multiple Products, Low Volume I. Job Shop II. Batch Heavy Equipment Coffee Shop III. Assembly Line Automobile Assembly Burger King IV. Continuous Flow Sugar Refinery Source: Modified from Robert Hayes and Steven Wheelwright, Restoring Our Competitive Edge: Competing through Manufacturing (New York: John Wiley & Sons, 1984). p. 209. Flexibility (High) Unit Cost (High) Commercial Printer French Restaurant Flexibility (Low) Unit Cost (Low) 9

10. Virtual Factory Shift from centralized production to ....... an integrated network of capabilities 10

11. Process Flow Design • A process flow design can be defined as a mapping of the specific processes that raw materials, parts, and subassemblies follow as they move through a plant. • Common tools to design a process flow: • Assembly drawing • Assembly chart • Operation and route sheet 11

12. Lockring 4 Spacer, detent spring 5 SA-2 A-2 Rivets (2) 6 Spring-detent 7 A-5 Component/Assembly Operation Inspection Assembly (Gozinto) Chart Exhibit 4.13 12 • The McGraw-Hill Companies, Inc., 1998

13. Assemble Drawing ____________________________________________________________ Operations Management, Roger Schroeder, 1985 12b

14. Example: Process Flow Chart Buffer: Material Received From Supplier Inspect Material for Defects Defects Found? No, Continue… Yes Return to Supplier for Credit 13

15. Goods versus Services goods services McDonald’s Pencil Manufacturer • tangible • storable • easy quality assessment • centralized production • long lead times • capital intensive • low customer contact • production separate from consumption Psychologist • intangible • perishable • difficult quality assessment • dispersed production • short lead times • labor intensity • high customer contact • production concurrent with consumption 47

16. Some Service Generalizations (1 of 2) 1. Everyone is an expert on services. 2. Services are idiosyncratic. 3. Quality of work is not quality of service. 4. Most services contain a mix of tangible and intangible attributes (service package). 48

17. Some Service Generalizations (2 of 2) 5. High-contact services (described later) are experienced, whereas goods are consumed. 6. Effective management of services requires an understanding of marketing and personnel, as well as operations. 7. Services often take the form of cycles of encounters involving face-to-face, phone, electromechanical, and/or mail interactions. 49

18. Service Types • Facilities-based vs. Field-based services • Internal Services - - External Services 50

19. Service Strategy: Focus and AdvantagePerformance Priorities • Treatment of the customer • Speed and convenience of service delivery • Price • Variety • Unique skills that constitute the service offering 51

20. Classifications of Services • Amount of customer contact Low versus High • Standard or Custom Service • The mix of tangible and intangible goods 52

21. Exhibit 6.7 Service-System Design Matrix Degree of customer/server contact Buffered Permeable Reactive High core (none) system (some) system (much) Low Face-to-face total customization Face-to-face loose specs Sales Opportunity Production Efficiency Face-to-face tight specs Phone Contact On-site technology Mail contact Low High 53

22. Service Blueprinting 55

23. Failure Mode and Effects Criticality Analysis (FMECA or FMEA) Risk Priority Number (RPN) = Occurrence * Severity * Detection • Occurrence = Frequency of failure mode (1=remote, 9=inevitable, 10=certain) • Severity = How serious is the failure to the process; to business results? (1=minor, 2-3=annoyance, 9-10=very high/most severe) • Detection = Likelihood that a defect will be detected by controls before the next (subsequent) process (1-2=very high, 9=very low, 10=absolutely cannot detect)

24. Service Recovery (Just in case) • A real-time response to a service failure. • Blueprinting can guide recovery planning (fail points). • Recovery planning involves training front-line workers to respond to such situations as overbooking, lost luggage, or a bad meal. 56

25. Service Recovery (Just in case) “Empowerment can only take place when every associate can personally assure customer satisfaction every time!” Gary Johnson

26. Service Recovery Processes: Fundamental Questions to Ask • Who are my customers? • What is my product or service? • What are my customer’s expectations and measures? • Does my product or service meet their expectations? • What is the process for providing my product or service? • What action is required to improve the process? • What are my customer’s moments of truth?

27. Service Recovery - How it Works Customer Identification Mission Statement Process Identification Incidents Remedies Cost of Poor Quality Cost of Incident Measurement of Frequency

28. Service Failsafing: Poka-Yokes • Keeping a mistake from becoming a service defect. • A proactive approach 57

29. Service Failsafing: Poka-Yokes 58

30. Three Contrasting Service Designs • The production line approach • The self-service approach • The personal attention approach 59

31. Designing the Service System • Major Design Issues • Product & Process are designed simultaneously • Scheduling of Capacity • due to uncertainty in demand • inability to store inventory • Dealing will uncertainty in demand • preemptive tactics • flexibility • forecasting • use of waiting lines 60

32. Characteristics of a Well-Designed Service System 1. Each element of the service system is consistent with the operating focusof the firm. 2. It is structured so that consistent performanceby its people and systems is easily maintained. 3. It provides effective links between the back & front office so that nothing falls between the cracks. 4. It manages the evidence of service quality in such a way that customers see the value of the service. 5. The service system is: • cost-effective • user-friendly • robust 61