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Chapter 4

Chapter 4. Product and Service Design. Reasons for Product or Service Design. Be competitive through the introduction of new products Business growth & profits Alternative to downsizing through the development of new products. What Does Product and Service Design Do? (1 of 2).

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Chapter 4

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  1. Chapter 4 Product and Service Design

  2. Reasons for Product or Service Design • Be competitive through the introduction of new products • Business growth & profits • Alternative to downsizing through the development of new products Chapter 4 Product and Service Design

  3. What Does Product and Service Design Do? (1 of 2) • Translates customer wants and needs into product and service requirements (marketing) • Refines existing products and services (marketing) • Develops new products and/or services (marketing, operations) Chapter 4 Product and Service Design

  4. What Does Product and Service Design Do? (2 of 2) • Formulates quality goals (quality assurance, operations) • Formulates cost target (accounting) • Constructs and tests prototypes (marketing, operations) • Documents specifications (engineering, operations) Chapter 4 Product and Service Design

  5. Objectives of Product & Service Design • Satisfy the customer while making a reasonable profit • Other considerations include • development time and cost • product or service cost • product or service quality • design for operations (manufacturability) Chapter 4 Product and Service Design

  6. The Design Process • Motivation • Customer • Ideas • marketing • research & development • competitors • Operations capabilities • Forecasts Chapter 4 Product and Service Design

  7. Identifying New Product Opportunities • Factors influencing market opportunities • economic change • sociological and demographic change • technological change • political change • Other sources of changes and opportunities • market practices • professional standards • suppliers • distributors Chapter 4 Product and Service Design

  8. Example of How toUse the Competition • Reverse engineering is the dismantling and inspecting of a competitor’s product to discover product improvements Chapter 4 Product and Service Design

  9. Research & Development (R&D) • Organized efforts to increase scientific knowledge or product innovation & may involve • Basic Research advances knowledge about a subject without near-term expectations of commercial applications. • Applied Research achieves commercial applications. • Development converts results of applied research into commercial applications. Chapter 4 Product and Service Design

  10. Product Development Stages Ideas Market requirements Functional specifications Product specifications Design review Test market Introduction Chapter 4 Product and Service Design Success? 8

  11. Legal, Ethical, and Environmental Issues • Legal • FDA, OSHA, IRS • Product liability • Uniform commercial code • Ethical • Releasing products with defects • Environmental • EPA Chapter 4 Product and Service Design

  12. Other Issues in Product Design • Product Life Cycles • Standardization • Mass Customization • Reliability • Robust Design • Concurrent Engineering • Computer-Aided Design Chapter 4 Product and Service Design

  13. Demand Time Life Cycles of Products or Services Figure 4-2 Saturation Maturity Decline Growth Incubation Chapter 4 Product and Service Design

  14. Degree of Standardization • Standardization is the extent to which there is absence of variety in a product, service, or process • This results in interchangeable parts Chapter 4 Product and Service Design

  15. Advantages of Standardization (1 of 2) • Fewer parts to deal with in inventory & manufacturing • Reduced training costs and time • More routine purchasing, handling, and inspection procedures Chapter 4 Product and Service Design

  16. Advantages of Standardization (2 of 2) • Orders fillable from inventory • Opportunities for long production runs and automation • Need for fewer parts justifies increased expenditures on perfecting designs and improving quality control procedures. Chapter 4 Product and Service Design

  17. Disadvantages of Standardization • Designs may be frozen with too many imperfections remaining. • High cost of design changes increases resistance to improvements. • Decreased variety results in less consumer appeal. Chapter 4 Product and Service Design

  18. Modular Design • A form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged. • It allows • easier diagnosis and remedy of failures • easier repair and replacement • simplification of manufacturing and assembly Chapter 4 Product and Service Design

  19. Mass Customization • A strategy of producing standardized goods or services, but incorporating some degree of customization • May achieve through delayed differentiation • Producing but not quite completing a product or service until customer preferences or specifications are known Chapter 4 Product and Service Design

  20. Reliability • Reliabilityis the ability of a product, part, or system to perform its intended function under a prescribed set of conditions • Failureis when a product, part, or system does not perform as intended • Normal operating condition is the set of conditions under which an item’s reliability is specified Chapter 4 Product and Service Design

  21. Improving Product Reliability • Component design • Testing • Redundancy • Preventive maintenance procedures • User education • System design Chapter 4 Product and Service Design

  22. Robust Design • Product performs as designed over a broad range of conditions • Less likely to fail due to a change in the environment • A similar approach can be used for manufacturing processes • Taguchi’s approach involves determining the specifications that will result in a robust design Chapter 4 Product and Service Design

  23. Traditional “Over the Wall” Approach to Design New Product Design Manufacturing Chapter 4 Product and Service Design

  24. Traditional “Over the Wall” Approach to Design New Product Issues/ Questions Design Manufacturing Chapter 4 Product and Service Design

  25. Concurrent engineering is the bringing together of design, marketing, accounting, manufacturing and other relevant personnel early in the design phase Concurrent Engineering Approach (1 of 3) Allows certain design and development activities to go on simultaneously Chapter 4 Product and Service Design

  26. Concurrent Engineering Approach (2 of 3) • Advantages • manufacturing able to identify operations capabilities and capacities • early opportunities to procure critical resources with long lead times • early consideration of technical feasibility of the design • emphasis on problem resolution, not conflict resolution Chapter 4 Product and Service Design

  27. Concurrent Engineering Approach (3 of 3) • Difficulties • long-standing existing boundaries can be difficult to overcome • there must be extra communication and flexibility Chapter 4 Product and Service Design

  28. Computer-Aided Design • Computer-Aided Design (CAD) is product design using computer graphics. • increases productivity of designers, 3 to 10 times • creates a database for manufacturing information on product specifications • provides possibility of engineering and cost analysis on proposed designs Chapter 4 Product and Service Design

  29. Manufacturing Design Considerations (1 of 2) • Design for manufacturing (DMF) • design compatible with operations capabilities • manufacturability - ease of fabrication and/or assembly which impacts cost, productivity and quality • Design for assembly (DFA) • reduce the number of parts in an assembly • assembly method and sequence • Design for recycling (DFR) • allows for dis-assembly of used products to recover components and material for reuse Chapter 4 Product and Service Design

  30. Manufacturing Design Considerations (2 of 2) • Design for remanufacturing • Refurbishing used by replacing worn out or defective components • Reasons for remanufacturing • can be sold at a much reduced price • requires mostly unskilled and semi-skilled workers • becoming a requirement • Design for dis-assembly (DFD) • product can be easily taken apart • use fewer parts and less material Chapter 4 Product and Service Design

  31. Service Design • Differences between service design and product design • Overview of service design • Design guidelines Chapter 4 Product and Service Design

  32. Differences Between Product and Service Design • Tangible – intangible • 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 Chapter 4 Product and Service Design

  33. High CustomizedClothing Moderate Dept. StorePurchase Low TelephonePurchase None InternetPurchase Low None Moderate High Service Variability & Customer Influence Service Design Figure 4-3 Variability in Service Requirements Degree of Contact with Customer Chapter 4 Product and Service Design

  34. Design Guidelines • Have a single, unifying theme • Make sure the system has capability to handle variability in demand • Include design features to ensure quality • Design system to be user friendly Chapter 4 Product and Service Design

  35. Quality Function Deployment • A structured approach for integrating the “voice of the customer” into the product or service development process • Ensure that customer requirements are translated into technical terms related to the product or service • Based on a set of matrices • main QFD matrix • house of quality Chapter 4 Product and Service Design

  36. The Main QFD Matrix Technical requirements Importance to customer Customer requirements Relationship matrix Chapter 4 Product and Service Design

  37. Correlation matrix Design requirements Customer requirements Relationship matrix Competitive assessment Specifications or target values The House of Quality Figure 4-5 Chapter 4 Product and Service Design

  38. 3 27 36 36 27 9 House of Quality Example Correlation: Strong positive Positive Negative x * Strong negative * Technical requirements Competitive evaluation Roll roundness Paper thickness Coating thickness Importance to Customer X = Us Tensile strength Paper width A = Comp. A Paper color Customer Requirements B = Comp. B (5 is best) 1 2 3 4 5 A B X Paper will not tear 3 A X B Consistent finish 1 No ink bleed 2 B A X X AB Prints clearly 3 Importance weighting Relationships: Strong = 9 Medium = 3 1 mm Total runout Within Approval panel Target values C microns Small = 1 t mm w mm 5 lbs. B X A 5 B A X A B X Technical evaluation (5 is best) X A B 4 A X B A X B 3 2 1 Chapter 4 Product and Service Design

  39. The Kano Model Figure 4-7 Design Characteristics Chapter 4 Product and Service Design

  40. Operations Strategy • Shortening time-to-market • Packaging products and ancillary services • Increasing emphasis on component commonality • Using multiple-use platforms • Considering tactics for mass customization • Looking for continual improvement Chapter 4 Product and Service Design

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