Strategic Management

1. Product Design
• Meaning
• Reasons of product design
• Recent trends in PD
• Stages of PD
• Standardization
• Design process
• Reliability
• Robust Design
• Service Design
• QFD
• Kano model
• Design thinking

2. Product Design
• Functional and aesthetic requirements necessary
– to meet the demands of the marketplace and
– at the same time achieve an acceptable rate of return.
• Input into PD decisions come primarily from
• marketing,
• engineering and
• manufacturing personnel

3. Product Design

4. Trends in Product & Service Design
• Increased emphasis on or attention to:
– Customer satisfaction
– Reducing time to introduce new product or service
– Reducing time to produce product
– The organization’s capabilities to produce or deliver the item
– Environmental concerns
– Designing products & services that are “user friendly”
– Designing products that use less material

5. Product or Service Design Activities
• Translate customer wants and needs into product 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

6. Reasons for Product or Service Design
• Economic: low demand, need to reduce cost
• Political :safety issues, new regulations.
• Social and demographic :population shift
• Competitive: new or changed product, promotion
• Cost or availability :raw material, labor
• Technological: in product components, process

7. Phases in product development process
1. Idea generation: Supply chain, competitor & research based
2. Feasibility analysis: market, dd economical (dppc) and technical (cs)
3. Product specifications:
4. Process specifications:
5. Prototype development:
6. Design review
7. Market test
8. Product introduction
9. Follow-up evaluation

8. Design review

9. Reverse Engineering
Reverse engineering is the dismantling and
inspecting of a competitor’s product to
discover product improvements.

10. Aspects of Product Design
• Product Life Cycles
• Standardization
• Designing for Mass Customization
• Modular design
• Reliability
• Robust Design
• Concurrent Engineering
• Computer-Aided Design

11. Life Cycles of Products or Services
Time
Incubation
Growth
Maturity
Saturation
Decline
Deman
d

12. Standardization:
• This is the extent to which there is absence of
variety in a product, service or process.
• Standardized products are made in large
quantities of identical items.
• Standardized service implies that every customer
or item processed receives essentially the same
service

13. Advantages of Standardization (Cont’d
• Lower the production cost and increase
productivity
• Reduced time and cost to train employee
• Repair and replacement easy

14. 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.

15. Mass Customization
Mass customization:
– A strategy of producing standardized goods or
services, but incorporating some degree of
customization
– Delayed differentiation: produce but not
completely until customer preference is known
– Modular design

16. Modular Design
Modular design is 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

17. Reliability
• Reliability: The ability of a product, part, or
system to perform its intended function
under a prescribed set of conditions
• Failure: Situation in which a product, part,
or system does not perform as intended
• Normal operating conditions: The set of
conditions under which an item’s reliability
is specified

18. Improving Reliability
• Component design
• Production/assembly techniques
• Testing
• Redundancy/backup
• Preventive maintenance procedures
• User education

19. Robust Design
• Design that results in products or services
that can function over a broad range of
conditions
• Some products will perform as designed only
with in a narrow range of conditions, while
other products will perform as designed over
a much broader range of conditions, the latter
have robust design.

20. • It can function over a broad range of
conditions.
• Consider a pair of fine leather boots not
made for trekking through mud or snow. The
rubber boots that have a design that is mere
robust than the fine leather boots.

21. Taguchi 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 not
controllable
– their optimal levels relative to major product
advances

22. Concurrent Engineering
• Bringing together of engineering design
and manufacturing personnel early in the
design phase

23. Design
Mfg
New
Product
“Over the Wall” Approach

24. 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

25. Shigeo Shingo system
• Philosophy of Prodcution mgt.
• Mr. improvement
• Two aspects
– SMED: drastic cut in equipment setup time
– inspection(successive, self and source) and Poka
Yoke
– Poka yoke: fail safe procedure- checklist or special
tooling –which prevents workers from making
error and give rapid feedback of abnormalities.

26. Service Design
• Service is an act
• Service delivery system
– Facilities
– Processes
– Skills
• Many services are bundled with products

27. • Service design involves
– The physical resources needed
– The goods that are purchased or consumed by the
customer
– Explicit services
– Implicit services

28. • Service
– Something that is done to or for a customer
• Service delivery system
– The facilities, processes, and skills needed to
provide a service
• Service package
– The physical resources, explicit service, implicit
service and others

29. Phases in Service Design
1. Conceptualize
2. Identify service package components
3. Determine performance specifications
4. Translate performance specifications into
design specifications
5. Translate design specifications into delivery
specifications

30. Service Blueprinting
• Service blueprinting
– A method used in service design to describe and
analyze a proposed service
• A useful tool for conceptualizing a service
delivery system

31. Major Steps in Service Blueprinting
1. Establish boundaries
2. Identify steps involved
3. Prepare a flowchart
4. Identify potential failure points
5. Establish a time frame
6. Analyze profitability

32. Quality Function Deployment
• Quality Function Deployment
– Voice of the customer
– House of quality
QFD: An approach that integrates the “voice of the customer”
into the product and service development process.

33. The House of Quality
Correlation
matrix
Design
requirements
Customer
require-
ments
Competitive
assessment
Relationship
matrix
Specifications
or
target values

34. House of Quality Example
Customer
Requirement
s
Easy to close
Stays open on a
hill
Easy to
open
Doesn’t leak in rain
No road
noise
Importance
weighting
Engineering
Characteristics
Energy
needed
to
close
door
Check
force
on
level
ground
Energy
needed
to
open
door
Water
resistance
1
0
6 6 9 2 3
7
5
3
3
2
X
X
X
X
X
Correlation
: Strong positive
Positive
Negativ
e
Strong
negative
X
*
Competitive
evaluation
X = Us
A = Comp. A
B = 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 = 1
Target
values
Reduce
energy
level
to
7.5
ft/lb
Reduce
force
to
9
lb.
Reduce
energy
to
7.5
ft/lb.
Maintain
current
level
Technical
evaluation
(5 is best)
5
4
3
2
1
B
A
X
BA
X B
A
X
B
X
A
BXA
BA
X
Door
seal
resistanc
e
Accoust.
Trans.
Window
Maintain
current
level
Maintain
current
level

35. The Kano Model

36. Design thinking
• brings together what is desirable from a
human point of view with what is
technologically feasible and economically
viable.
• It also allows people who aren’t trained as
designers to use creative tools to address a
vast range of challenges.

37. Design Thinking
• is the application of industrial design tools
and a human centered approach, by a
multidisciplinary team of hybrid individuals, to
a given innovation problem.’

38. Brain storming
• Brainstorming is a semi-structured, team-
based method of rapid idea generation.
i. Defer judgment
ii. Encourage wild ideas
iii. Build on the ideas of others
iv. Stay focused on the topic
v. One conversation at a time
vi. Be visual
vii. Go for quantity