Production slide

1. 4-1 Product and Service Design
CHAPTER
4
Product and
Service Design
McGraw-Hill/Irwin
Operations Management, Eighth Edition, by William J. Stevenson
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 4-2 Product and Service Design
What does Product & Service Design Do?

3. 4-3 Product and Service Design

4. 4-4 Product and Service Design
 Major factors in design strategy
 Cost
 Quality
 Time-to-market
 Customer satisfaction
 Competitive advantage
Product and Service Design
Product and service design – or redesign – should be
closely tied to an organization’s strategy

5. 4-5 Product and Service Design
Objectives of Product and Service Design
 Main focus
 Customer satisfaction
 Secondary focus
 Function of product/service
 Cost/profit
 Quality
 Appearance
 Ease of production/assembly
 Ease of maintenance/service

6. 4-6 Product and Service Design
 Legal
 FDA, OSHA, IRS
 Product liability
 Uniform commercial code
 Ethical
 Releasing products with defects
 Environmental
 EPA
Legal, Ethical, and Environmental Issues

7. 4-7 Product and Service Design
Regulations & Legal Considerations
 Product Liability - A manufacturer is liable for
any injuries or damages caused by a faulty
product.
 Uniform Commercial Code-Customer Product
Safety Commission- Products carry an
implication of merchantability and fitness.

8. 4-8 Product and Service Design
Designers Adhere to Guidelines
 Produce designs that are consistant with the
goals of the company
 Give customers the value they expect
 Make health and safety a primary concern
 Consider potential harm to the environment

9. 4-9 Product and Service Design
Other Issues in Product and Service Design
 Product/service life cycles
 How much standardization
 Product/service reliability
 Range of operating conditions

10. 4-10 Product and Service Design
Life Cycles of Products or Services
Time
Introduction
Growth
Maturity
Saturation
Decline
Demand
Figure 4.1

11. 4-11 Product and Service Design
Differing views of design created through lack of information

12. 4-12 Product and Service Design
Steps in the Product Design Process
Arrows show that it’s a circular process, Product design
are never finished, but always updated with new ideas

13. 4-13 Product and Service Design
Phases in Product Development Process
1. Idea generation
2. Feasibility analysis
3. Product specifications
4. Process specifications
5. Prototype development
6. Design review
7. Market test
8. Product introduction
9. Follow-up evaluation

14. 4-14 Product and Service Design
Idea Generation
Ideas Competitor based
Supply chain based
Research based

15. 4-15 Product and Service Design
Research & Development (R&D)
 Organized efforts to increase scientific knowledge or
product innovation & may involve:
 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.

16. 4-16 Product and Service Design
Standardization
 Standardization
 Extent to which there is an absence of variety
in a product, service or process
 Standardized products are immediately
available to customers

17. 4-17 Product and Service Design
Advantages of Standardization
 Fewer parts to deal with in inventory &
manufacturing
 Design costs are generally lower
 Reduced training costs and time
 More routine purchasing, handling, and
inspection procedures

18. 4-18 Product and Service Design
Advantages of Standardization (Cont’d)
 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.

19. 4-19 Product and Service Design
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.

20. 4-20 Product and Service Design
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

21. 4-21 Product and Service Design
Product Design
 Product Life Cycles
 Robust Design
 Concurrent Engineering
 Computer-Aided Design
 Modular Design

22. 4-22 Product and Service Design
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

23. 4-23 Product and Service Design
Robust Design: Design that results in
products or services that can function over
a broad range of conditions
Robust Design

24. 4-24 Product and Service Design
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

25. 4-25 Product and Service Design
Reverse Engineering
Reverse engineering is the
dismantling and inspecting
of a competitor’s product to discover
product improvements.

26. 4-26 Product and Service Design
Concurrent Engineering
Concurrent engineering
is the bringing together
of engineering design and
manufacturing personnel
early in the design phase.

27. 4-27 Product and Service Design

28. 4-28 Product and Service Design
Concurrent Engineering Approach

29. 4-29 Product and Service Design
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

30. 4-30 Product and Service Design
Manufacturability
 Manufacturability is the ease of fabrication
and/or assembly which is important for:
 Cost
 Productivity
 Quality

31. 4-31 Product and Service Design
Designing for Manufacturing
Beyond the overall objective to achieve
customer satisfaction while making a
reasonable profit is:
Design for Manufacturing(DFM)
The designers’ consideration of the
organization’s manufacturing capabilities when
designing a product.
The more general term design for operations
encompasses services as well as manufacturing

32. 4-32 Product and Service Design
Progressive Design of a toolbox using DFM
An example of the benefits of applying these rules is seen in the Fig
above. We can see the progression in the design of a toolbox using the
DFM approach. All of the pictures show a toolbox. However, the first
design shown requires 20 parts. Through simplification and use of
modular design, the number of parts required has been reduced to 2. It
would certainly be much easier to make the product with 2 parts versus
20 parts. This means fewer chances of error, better quality, and lower
costs due to shorter assembly time.

33. 4-33 Product and Service Design
 Design for manufacturing (DFM)
 Design for assembly (DFA)
 Design for recycling (DFR)
 Remanufacturing
 Design for disassembly (DFD)
 Robust design
Product design

34. 4-34 Product and Service Design
 Recycling: recovering materials for future use
 Recycling reasons
 Cost savings
 Environment concerns
 Environment regulations
Designing for Recycling DFR

35. 4-35 Product and Service Design
Service Design
 Service is an act
 Service delivery system
 Facilities
 Processes
 Skills
 Many services are bundled with products

36. 4-36 Product and Service Design
Service Design
 Service
 Something that is done to or for a customer
 Service delivery system
 The facilities, processes, and skills needed to
provide a service
 Product bundle
 The combination of goods and services
provided to a customer
 Service package
 The physical resources needed to perform the
service

37. 4-37 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 and exit
 Location important to service
Differences Between Product
and Service Design

38. 4-38 Product and Service Design
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

39. 4-39 Product and Service Design
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

40. 4-40 Product and Service Design
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

41. 4-41 Product and Service Design
Characteristics of Well Designed
Service Systems
1. Consistent with the organization mission
2. User friendly
3. Robust
4. Easy to sustain
5. Cost effective
6. Value to customers
7. Effective linkages between back operations
8. Single unifying theme
9. Ensure reliability and high quality

42. 4-42 Product and Service Design
Challenges of Service Design
 Variable requirements
 Difficult to describe
 High customer contact
 Service – customer encounter

43. 4-43 Product and Service Design
 Quality Function Deployment
 Voice of the customer
 House of quality
Quality Function Deployment
QFD: An approach that integrates the “voice of the
customer” into the product and service development
process.

44. 4-44 Product and Service Design
The House of Quality
Correlation
matrix
Design
requirements
Customer
require-
ments
Competitive
assessment
Relationship
matrix
Specifications
or
target values
Figure 1

45. 4-45 Product and Service Design
Fig.2 House of Quality Example
Figure 2

46. 4-46 Product and Service Design

47. 4-47 Product and Service Design
Kano Model
Customer Needs
Customer
Satisfaction
Excitement
Expected
Must Have
The Kano Model
Figure 4.6

48. 4-48 Product and Service Design
CHAPTER
4s
Reliability
McGraw-Hill/Irwin
Operations Management, Eighth Edition, by William J. Stevenson
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.

49. 4-49 Product and Service Design
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

50. 4-50 Product and Service Design
 Probability that the product or system will:
 Function when activated
 Function for a given length of time
 Independent events
 Events whose occurrence or
nonoccurrence do not influence each
other
 Redundancy
 The use of backup components to
increase reliability
Reliability is a Probability

51. 4-51 Product and Service Design
Rule 1
.90 .80
Lamp 1 Lamp 2
.90 x .80 = .72

52. 4-52 Product and Service Design
Rule 2
.90
.80
.90 + (1-.90)*.80 = .98
Lamp 1
Lamp 2 (backup)

53. 4-53 Product and Service Design
Rule 3
.90
.80
.70
1-[(1-.90)*(1-.80)*(1-.70)] = .994
1 – P(all fail)
Lamp 1
Lamp 2 (backup for Lamp1)
Lamp 3 (backup for Lamp 2)

54. 4-54 Product and Service Design
Example S-1 Reliability
Determine the reliability of the system shown
.98 .90
.90 .92
.95

55. 4-55 Product and Service Design
Example S-1 Solution
The system can be reduced to a series of three
components
.98 .90+.90(1-.90) .95+.92(1-.95)
.98 x .99 x .996 = .966

56. 4-56 Product and Service Design
Failure Rate
Figure 4S.1
Few (random) failures
Infant
mortality
Failures due
to wear-out
Time, T
Failure
Rate

57. 4-57 Product and Service Design
Exponential Distribution
Reliability = e -T/MTBF
1- e -T/MTBF
T Time
Figure 4S.2

58. 4-58 Product and Service Design
Normal Distribution
Reliability
0 z
Figure 4S.3

59. 4-59 Product and Service Design
Availability
 The fraction of time a piece of equipment
is expected to be available for operation
Availability
MTBF
MTBF MTR


MTBF = mean time between failures
MTR = mean time to repair

60. 4-60 Product and Service Design
Improving Reliability
 Component design
 Production/assembly techniques
 Testing
 Redundancy/backups
 Preventive maintenance procedures
 User education
 System design

61. 4-61 Product and Service Design

62. 4-62 Product and Service Design

63. 4-63 Product and Service Design

64. 4-64 Product and Service Design

65. 4-65 Product and Service Design

66. 4-66 Product and Service Design

67. 4-67 Product and Service Design