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Design of Products and Services*

Design of Products and Services*. OPS 370. *Note much of the material from this chapter is NOT in the textbook. The first rule of business:. Why Firms Develop New Products. 1. Competitive Advantage 2. Market Share Gain 3. Higher Profitability 4. Enhancement of Brand

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Design of Products and Services*

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  1. Design of Products and Services* OPS 370 *Note much of the material from this chapter is NOT in the textbook

  2. The first rule of business:

  3. Why Firms Develop New Products 1. Competitive Advantage 2. Market Share Gain 3. Higher Profitability 4. Enhancement of Brand 5. Faster Competitive Response 6. Improved Operating Cost & Resource Utilization

  4. 1. Competitive Advantage

  5. 2. Market Share Gain

  6. 3. Higher Profitability

  7. 4. Enhancement of Corporate Image and Brand Name

  8. 5. Faster Competitive Response

  9. 6. Operating Cost and Capacity Utilization

  10. Multiple Product Life Cycles

  11. Single Item (Industry)Product Life Cycle

  12. Radical and Disruptive Innovation

  13. Examples of Disruptive New Products

  14. Elements of Product Design: Mass Customization

  15. Elements of Product Design: Design for Production (Manufacturability) and Rapid Prototyping

  16. Elements of Product Design: Design Simplification (a) The original design Assembly using common fasteners Figure 3.3

  17. (b) Revised design One-piece base & elimination of fasteners Design Simplification (a) The original design Assembly using common fasteners

  18. (b) Revised design (c) Final design One-piece base & elimination of fasteners Design for push-and-snap assembly Design Simplification (a) The original design Assembly using common fasteners

  19. Standardizing parts among different products at Ford Product # before # after Savings/veh • Air filters 18 5 $0.45 • Carpet 9 3 $1.25 • Cigarette 14 1 lighters & $1.16 • Trunk carpet 7 1 Annual savings = $3M + $9M + $5M = $17M

  20. Environmentally Friendly Designs

  21. Where Do New Product Ideas Come From? Traditional sources: • customer surveys • analyzing warranty claims, customer complaints • surveys of suppliers, distributors, and salespersons

  22. Modern Sources • Benchmarking • comparing product/service against best-in-class • Reverse engineering • dismantling competitor’s product to improve your own product • Early Supplier Involvement (ESI)

  23. Analysis Tools for New Product Development Customer Choice Analysis Product Reliability Analysis Product-Complexity Index Quality Function Deployment

  24. Customer Choice Analysis

  25. Product Reliability Analysis

  26. Product Reliability Analysis

  27. Quantifying Reliability • State Reliability in Terms of Probability • Ex: A Product that is 90% Reliable Has a Failure Probability of 1 – 0.9 = 0.1 (10%) • What If a Product Has Multiple Components That Can Fail? • Component A: 90% Reliability • Component B: 80% Reliability • Under What Conditions Does the Product Fail? • If One or Both Components Fail  Product Fails

  28. Quantifying Reliability

  29. Quantifying Reliability • What Is the Reliability of the Product Below? (Component Reliabilities Shown) A (0.9) B (0.95) C (0.9)

  30. Quantifying Reliability • How to Improve Reliability? • Add Redundancy! A (0.9) B (0.95) C (0.9) Ex: Add a Backup Component to Component A Under What Conditions Does This Product Fail?

  31. Quantifying Reliability A (0.9) B (0.95) C (0.9) Backup to A (0.8)

  32. Quality Function Deployment A structured approach for systematically integrating customer requirements into every aspect of product development from planning to the production floor

  33. The Quality Function Deployment (QFD) Process

  34. The QFD Process The first QFD matrix, called the House of Quality links the voice of the customer to the product design attributes (voice of the engineer).

  35. House of Quality Layout

  36. The House of Quality

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