Products and Services

1. Products and Services

2. Lecture Outline • Design Process • Reducing Time-to-Market • Improving Quality of Design • Special Considerations in Service Design

3. Design Process • Effective design can provide a competitive edge • matches product or service characteristics with customer requirements • ensures that customer requirements are met in the simplest and least costly manner • reduces time required to design a new product or service • minimizes revisions necessary to make a design workable

4. Product design defines appearance of product sets standards for performance specifies which materials are to be used determines dimensions and tolerances Service design specifies what physical items, sensual benefits, and psychological benefits customer is to receive from service defines environment in which service will take place Design Process (cont.)

5. Idea generation Feasibility study Performance specifications Product or service concept Form design Suppliers Customers R&D Revising and testing prototypes Marketing Competitors Production design Functional design Design specifications Manufacturing or delivery specifications New product or service launch Pilot run and final tests Final design & process plans Design Process (cont.)

6. Company’s own R&D department Customer complaints or suggestions Marketing research Suppliers Salespersons in the field Factory workers New technological developments Competitors Idea Generation Sources

7. Idea Generation Sources (cont.) • Perceptual Maps • Visual comparison of customer perceptions • Benchmarking • Comparing product/service against best-in-class • Reverse engineering • Dismantling competitor’s product to improve your own product

8. GOOD TASTE Cocoa Puffs LOW NUTRITION HIGH NUTRITION Cheerios Rice Krispies Wheaties Shredded Wheat BAD TASTE Perceptual Map of Breakfast Cereals Cheerios Rice Krispies Wheaties Shredded Wheat

9. Feasibility Study • Market analysis • Economic analysis • Technical/strategic analysis • Performance specifications

10. Rapid Prototyping • Build a prototype • form design • functional design • production design • Test prototype • Revise design • Retest

11. Form Design how product will look? Functional Design reliability maintainability usability Form and Functional Design

12. 0.90 0.90 Components in series R = = Computing Reliability

13. Components in parallel 0.90 R2 R= = 0.95 R1 Computing Reliability

14. 0.90 0.98 0.92+(1-0.92)(0.90)=0.99 0.98 0.98 0.92 0.98 R= = System Reliability

15. where: MTBF = mean time between failures MTTR = mean time to repair MTBF MTBF + MTTR SA = System Availability (SA)

16. PROVIDER MTBF (HR) MTTR (HR) A 60 4.0 B 36 2.0 C 24 1.0 SAA = = SAB = = SAC = = System Availability (cont.)

17. Usability • Ease of use of a product or service • ease of learning • ease of use • ease of remembering how to use • frequency and severity of errors • user satisfaction with experience

18. Final design detailed drawings and specifications for new product or service Process plans workable instructions necessary equipment and tooling component sourcing recommendations job descriptions and procedures computer programs for automated machines Final Design and Process Plans

19. Reducing Time-to-Market • Establish multifunctional design teams • Make design decisions concurrently rather than sequentially • Design for manufacture and assembly • Use technology in the design process • Engage in collaborative design

20. Design Team

21. A new approach to design that involves simultaneous design of products and processes by design teams Improves quality of early design decisions Involves suppliers Incorporates production process Uses a price-minus system Scheduling and management can be complex as tasks are done in parallel Concurrent Design

22. Technology in the Design Process • Computer Aided Design (CAD) • assists in creation, modification, and analysis of a design • includes • computer-aided engineering (CAE) • tests and analyzes designs on computer screen • computer-aided manufacturing (CAM) • ultimate design-to-manufacture connection

23. Improving Quality of Design • Review designs to prevent failures and ensure value • Design for environment • Measure design quality • Use quality function deployment • Design for robustness

24. Design Review • Failure mode and effects analysis (FMEA) • a systematic method of analyzing product failures • Fault tree analysis (FTA) • a visual method for analyzing interrelationships among failures • Value analysis (VA) • helps eliminate unnecessary features and functions

25. FMEA for Potato Chips

26. Fault tree analysis (FTA)

27. Value analysis (VA) • Can we do without it? • Does it do more than is required? • Does it cost more than it is worth? • Can something else do a better job? • Can it be made by • a less costly method? • with less costly tooling? • with less costly material? • Can it be made cheaper, better, or faster by someone else?

28. Design for Environment • Design for environment • designing a product from material that can be recycled • design from recycled material • design for ease of repair • minimize packaging • minimize material and energy used during manufacture, consumption and disposal • Extended producer responsibility • holds companies responsible for their product even after its useful life

29. Design for Environment (cont.)

30. Quality FunctionDeployment (QFD) • Translates voice of customer into technical design requirements • Displays requirements in matrix diagrams • first matrix called “house of quality” • series of connected houses

31. 5 Importance Trade-off matrix 3 Design characteristics 4 2 1 Customer requirements Relationship matrix Competitive assessment 6 Target values House of Quality

32. Benefits of QFD • Promotes better understanding of customer demands • Promotes better understanding of design interactions • Involves manufacturing in design process • Breaks down barriers between functions and departments • Provides documentation of design process

33. Services are intangible Service output is variable Service have higher customer contact Services are perishable Service inseparable from delivery Services tend to be decentralized and dispersed Services are consumed more often than products Services can be easily emulated Special Considerations in Service Design

34. Desired service experience Service Concept Service Package Targeted customer Physical items Sensual benefits Psychological benefits Performance Specifications Customer requirements Customer expectations Service Provider Customer Design Specifications Provider skills Cost and time estimates Activities Facility Delivery Specifications Schedule Deliverables Location Service Service Design Process

35. Service Design Process (cont.) • Service concept • purpose of a service; it defines target market and customer experience • Service package • mixture of physical items, sensual benefits, and psychological benefits • Service specifications • performance specifications • design specifications • delivery specifications