2. Product-Service Design and
Development
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3.1. Product-Service Design and
Development
Design is the process of structuring of
component parts/activities of a product so that
as a unit it can provide specified value for the
one who purchase it.
The product will be designed in terms of size,
color, and other related dimensions.
3. Product-Service Design…
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product-service design decision plays a strategic
role in the degree to which an organization is able
to achieve its goals.
It is a major factor in customer satisfaction,
product-service quality, and production costs.
The customer connection is obvious i.e., the
product or service is the main concern of the
customer, and becomes the ultimate basis for
judging the organization
4. Objectives of Product-Service Design
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To bring new or revised products or services to
the market as quickly as possible.
To design products and/or services that have
customer appeal
To increase the level of customer satisfaction
To increase quality
To reduce costs
5. Importance of Product Life Cycle
Analysis in Product Design
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Many new products exhibit a Product Life
Cycle (PLC) in term of demand. They are born,
live and die.
It may be helpful to think of a product’s life as
divided into four phases.
Those phases are: introduction, growth,
maturity and decline.
6. Introduction Stage
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When an item is first introduced, it may be
treated as a curiosity.
Demand is generally low because potential
buyers are not yet familiar with the item.
Many potential buyers recognize that all of the
problems that probably not been worked out
and that the price may drop after the
introductory period.
7. Growth
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With the passage of time during the growth
stage, production and design improvements
usually create a more reliable and less costly
product.
8. Maturity& Decline
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Demand then grows for these reasons and
because of increasing awareness of the
product or service.
At the maturity stage in the life cycle, the
product reaches maturity: there are few, if any,
design changes, and demand levels off.
Eventually, the market becomes saturated,
which leads to a decline in demand.
9. Philosophies towards Product
Design and Development
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There are three philosophies/strategies for
product design and development:
o Market-putt approach,
o Technology-push approach, and
o Inter-functional approach
10. 1. Market-Pull Philosophy
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The market-pull logo is: “One should make
what can be sold”.
It implies that one should produce the market
requirement or customer demand irrespective
of internal technology or processes.
So it is required to undertake customers’
survey and market research.
11. 2. Technology-Push Philosophy
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The technology-push strategy logo is “one should
sell what can be made”.
It implies the existing technology and/or process
determines what kind of a product to be produced.
So that customer needs is become a secondary
issue.
It can be said it is a period of marketing myopia or
marketing shortsightedness.
12. 3. Inter-functional Philosophy
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The inter-functional approach logo is: “Product
design and development is neither market-pull
nor technology-push.
Rather it is inter-functional and interactive
processes of customers, marketing, finance,
personnel, engineering, procurement,
suppliers and other related functional areas”.
13. Steps in New product
Development
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Generally, in manufacturing settings the
process of product development will have the
following important steps.
Idea generation from both internal and external
sources
Product conception and selection
Conducting feasibility study from three
dimensions: market, technical and financial
14. Product Devel’t…
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Generating initial/preliminary product design in
order to avoid costly and impossible product
design
Develop prototype model
Conduct product testing and pilot market test
in order to generate feedback how well the
prospect customers find
Final product design; and start production at
full-scale and commercialize to the target
market.
15. Approaches to Product Design and
Development
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there are specific product design techniques to
speed up the design process and create
product-service bundles (i.e., new product
development).
16. a. Concurrent engineering
The team approach of designing products and
processes in an interactive process.
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Concurrent engineering is product-service
design in which the concerns of more than one
function are considered simultaneously such
as:
design for manufacturability;
design for procurement;
design for environment; and
design for disassembly
18. i. Design for Manufacturability
(DFM)
Design for Manufacturability (DFM) is concept
which provides guidelines on how product
concept is changed in to a manufacturable
product, in a very simplified way, avoiding
unnecessary parts.
Is a product development approach that
explicitly considers the effectiveness with
which a product can be made during the initial
development of the product-service design.
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19. (DFM)…
Three concepts are closely related to
designing for ease of production:
specifications,
standardization, and
simplification.
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20. (DFM)…
Specification: is a detailed description of
material, part, or product including physical
dimensions.
Standardization: refers to the design activity
that reduces variety amount of a group of
products or parts.
For example, if a product group having 20
models were redesigned to have only 10
models, we would refer to the new group as
more standardized.
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21. (DFM)…
Simplification of product design is the
elimination of the complex features so that the
intended function is performed but with
reduced costs, higher quality, or more
customer satisfaction.
Customer satisfaction may be increased by
making a product easier to recognize, buy,
install, maintain, or use.
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22. ii. Design for procurement
Design for procurement: places explicit
consideration of component parts supply
during the initial development of a product-
service design.
What is the supply base for the required
component parts?
What is the capacity of that supply base?
At what cost can parts be made and at what
levels of conformance quality? 7/22/2022
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23. iii. Design for environment
Design for environment: is a product
development approach that broadens the
concept of design from the extraction of raw
materials to their disposal.
This strategy is based on the concept of
sustainable development which encourages
companies to meet the needs of today’s
consumer without compromising the ability of
future generations to meet their needs.
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24. iv. Design for disassembly
Design for disassembly: More and more,
manufacturers are beginning to understand
and accept the fact that they are responsible
for the items they make, from start to finish.
Using a design-for-disassembly philosophy
today can help to prevent such environmental
liabilities in the future.
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25. b. Robust Design
A robust design is one that will perform as
intended even if undesirable conditions occur
either in production or in the field.
Conditions may be specified in terms of; heat,
cold, humidity, nature of use, employee skill,
material characteristics, material
specifications, machine capabilities
i.e., Is designing a product that does have
multiple purpose in multiple conditions and
environment
Eg: Mobile cell phone
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26. c. Taguchi’s Approach
Japanese engineer Genichi Taguchi’s
approach is based on the robust design.
Its premise is that it is often easier to design a
product that is insensitive to environmental
factors, either in manufacturing or in use, than
it is to control the environmental factors.
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27. Taguchi’s…
This approach modifies the conventional
statistical methods of experimental design.
It involves determining which factors are
controllable, and which are not controllable (or
are too expensive to control), and determining
the optimal level of the controllable factors
relative to the product performance
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28. d. Modular Design
Modular design is another form of
standardization.
Modules represent groupings of component
parts into subassemblies, usually to the point
where the individual parts lose their separate
identity.
One familiar example of modular design is a
television set with easily removed control
panels.
Computers, too, have modular parts that can
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30. Considerations in the Design of
Service
Designing services is challenging because
they often have unique characteristics.
Because of the differences between services
and products, the design of services must take
into account different elements than the design
of goods.
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31. Considerations…
The designer must consider the following
differences:
Products are generally tangible; services are
generally intangible.
Consequently, service design often focuses more on
intangible factors (e.g., peace of mind, environmental
setting, mood, etc) than does product design.
Services are often produced and received at the same
time (e.g., a haircut, a carwash). Because of this,
there is less latitude in finding and correcting errors
before the customer has a chance to discover them.
Consequently, training, process design, and customer
relations are particularly important.
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32. Considerations…
Services cannot be inventoried.
This poses restrictions on flexibility, and makes
capacity design very important.
Services are highly visible to consumers, and
must be designed with that in mind; this adds an
extra dimension to process design usually not
present in product design
Location is often important in service design, with
convenience as a major factor. Hence, design of
services and choice of location are often closely
linked.
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33. How do we classify services?
It is possible to make a distinction between
different types of service delivery systems.
These could be based on:
The volume of activity
The degree of professional skills and/or
knowledge required
The type of the service takers i.e., for who the
service is intended to be delivered.
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34. Attributes of Service Design
The attributes are:
Labor intensity: refers to the ratio of labor
cost incurred in providing the service.
Here, labor cost implies the function of the
number of people and their qualification
employed in the service process.
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35. Attributes of Service Design
Contact: refers to the proportion of the total
time to provide the service for while the
customer presents in the system.
Interaction: refers to the extent which the
customer actively interfere in the service
process to change the content of the service.
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36. Attributes of Service Design
Customization: refers to the extent the
service could be adapted to the need of a
customer.
Interaction and customization have
interrelation among themselves.
Identity of the service taker: refers to
whether the service is direct on the person or
else direct to the thing.
Services direct to the thing include: architect,
auditing, etc. services direct to person may
include nursing, cafeteria, bar tendering, etc
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37. Moments of Truth
Concept created by Jan Carlzon of
Scandinavian Airways
Critical moments between the
customer and the organization that
determine customer satisfaction
There may be many of these
moments
These are opportunities to gain or
lose business
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39. 3.2.1. Process Design
The term process refers to the facilities, skills,
and knowledge used to produce firm’s
products.
where product design dictate “what to produce”
where as process design imply “how to
produce”.
Process flow design, on the other hand,
focuses on the specific processes that raw
materials, parts, subassemblies, or people flow
as they move through the plant.
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40. 3.2.2. Process Selection Decisions
Process selection decisions determine the
type of productive process to be used and the
appropriate span of the process.
Process decisions affect the costs, quality,
delivery, flexibility of operations.
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41. Process classification
process classifications can be:
o First, a process is classified by type of product
flow: line/continuous, intermittent/job shop, or
project.
o Second, a process classified by type of
customer order: make-to-stock or make-to-
order.
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42. A. Process Classification based on
the type of Product Flow
There are three types of flows:
line/continuous,
intermittent/job-shop, and
project.
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43. i. Continuous Production
Process/Line flow
Continuous production process is
characterized by a linear sequence of
operations used to make the product or
service.
The product is well standardized and must
flow from one operation or workstation to the
next in a prescribed sequence.
The individual work tasks are closely coupled
and should be balanced so that one task
should not delay the next.
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44. Continuous…
It usually yields a lower unit cost for the product
Storage costs per unit are usually lower,
The time required for production is very shorter
It requires large investment, because it uses
special purpose machines etc.
The marketing effort focuses on developing
distribution channels for the large volume of
output
Example: cement, beer, refineries, paper plants,
chemical plants, automobile industries, flour
milling, electric utility etc
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45. ii. Intermittent Production
Process/Job Shop system /Batch
It is characterized by production in batches at
intermittent intervals
Equipment and labor are organized into work
centers by similar types of skills and/or
knowledge or equipment.
A product or job will then flow only to those
work centers that are required and will skip the
rest.
This results in a jumbled flow pattern.
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46. Intermittent Production…
Example: custom cabinet shops, machine
shops, furniture, custom jewelers etc.
It requires lower investment as it uses
general purpose equipment
there is much more flexibility as compared to
the continuous production process.
The marketing effort is directed toward getting
and filling individual customers for varied
products
Products are not standardized 7/22/2022
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47. iii. Project Production process
It is used to produce a unique product such as
a work of art, a concert, a building or a motion
picture
Each unit of these products is produced as a
single item.
Strictly speaking, there is no product flow for a
project; but, there is still a sequence of product
operations.
In this case, all individual operations or tasks
should be sequenced to contribute to the final
project objective.
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48. B. Process Classification based on
the type of Customer Order
i. Make-to-order
It essentially responds to the customer’s request for
a product.
The order cycle does not begin (i.e. nothing is
done) until the order is received, and the product is
then designed and produced entirely to customer
specifications.
The key operations performance measure for
make-to-order process is the delivery and control of
the order flow
Therefore the process must be flexible to meet
customer orders.
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49. ii. Make-to-Stock
Make-to-Stock
It must have a standardized product line.
The product availability objective then is to provide the
customer with these standard products from inventory at
some satisfactory level.
The firm will build-up inventory in advance of demand.
The cycle begins with the producer, rather than the
customer, specifying the product.
The customer takes the product from stock if the price is
acceptable and the product is on hand.
The production system is building stock levels for future
demand, not current ones.
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50. Chapter 3– Part Two
Human Resources and
Job Design
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51. Labor Planning
1. Follow demand exactly
Matches direct labor costs to production
Incurs costs in hiring and termination,
unemployment insurance, and premium
wages
Labor is treated as a variable cost
Labor planning is determining staffing
policies that deal with employment
stability policies and work schedules.
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Employment Stability Policies
52. 2. Hold employment constant
Maintains trained workforce
Minimizes hiring, termination, and
unemployment costs
Employees may be underutilized during
slack periods
Labor is treated as a fixed cost
Employment Stability Policies…. Contd….
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53. Work Schedules
- Although the standard works schedule in most of
the countries is a five 8-hour days, variations to
exist.
A currently popular variation is a work schedule
called flextime.
Flex-time- allows employees, within limits, to
determine their own schedules
Flexible work week- Fewer but longer days
Part-time- Fewer, possibly irregular, hours
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54. Job Design
Is a method of specifying the tasks that
constitute a job for an individual or a group
1. Job specialization
2. Job expansion
3. Psychological components
4. Self-directed teams
5. Motivation and incentive systems
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55. Labor Specialization
The division of labor into unique tasks
First suggested by Adam Smith in 1776
1. Development of dexterity and faster learning
2. Less loss of time
3. Development of specialized tools
Later Charles Babbage (1832) added
another consideration
4. Wages exactly fit the required skill
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56. Job Expansion
Adding more variety to jobs
Intended to reduce boredom
associated with labor specialization
Job enlargement
Job rotation
Job enrichment
Employee empowerment
Ergonomics
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57. Job Enlargement, and
enrichment
Figure 10.2
Task #3
(Lock printed circuit
board into fixture for
next operation)
Present job
(Manually insert and
solder six resistors)
Task #2
(Adhere labels
to printed circuit
board)
Enlarged job
Enriched job
Planning
(Participate in a cross-
function quality
improvement team)
Control
(Test circuits after
assembly)
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58. Psychological Components of Job
Design
Human resource strategy requires
consideration of the psychological
components
of job design
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59. Hawthorne Studies
They studied light levels, but discovered
productivity improvement was independent
from lighting levels
Introduced psychology into the workplace
The workplace social system and distinct
roles played by individuals may be more
important than physical factors
Individual differences may be dominant in job
expectation and contribution
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60. Self-Directed Teams
Group of empowered individuals
working together to reach a common
goal
May be organized for long-term or
short-term objectives
Effective because
Provide employee empowerment
Ensure core job characteristics
Meet individual psychological needs
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61. Self-Directed Teams
Ensure those who have legitimate
contributions are on the team
Provide management support
Ensure the necessary training
Endorse clear objectives and goals
Financial and non-financial rewards
Supervisors must release control
To maximize effectiveness, managers should
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62. Benefits of Teams and Expanded Job
Designs
Improved quality of work life
Improved job satisfaction
Increased motivation
Allows employees to accept more
responsibility
Improved productivity and quality
Reduced turnover and absenteeism
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63. 1. Higher capital cost
2. Individuals may prefer simple jobs
3. Higher wages rates for greater skills
4. Smaller labor pool
5. Higher training costs
6. Social loafing/free riding
Limitations of Job Expansion
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65. Core Job Characteristics
Skill variety
Job identity
Job significance
Autonomy
Feedback
Jobs should include the following characteristics
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66. Motivation and Incentive
Systems
Bonuses - cash or stock options
Profit-sharing - profits for distribution to
employees
Gain sharing - rewards for improvements
Incentive plans - typically based on
production rates
Knowledge-based systems - reward for
knowledge or skills
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67. Ergonomics and the Work
Environment
Ergonomics is the study of the
interface between man and
machine
Often called
human factors
Operator input
to machines
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68. Ergonomics and Work
Methods
Provide feedback to operators
The work environment
Illumination
Noise
Temperature
Humidity
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69. Levels of Illumination
Task Condition Type of Task
or Area
Illumination
Level
Type of
Illumination
Small detail,
extreme
accuracy
Sewing, inspecting
dark materials
100 Overhead
ceiling lights
and desk lamp
Normal detail,
prolonged
periods
Reading, parts
assembly,
general office
work
20-50 Overhead
ceiling lights
Good contrast,
fairly large
objects
Recreational
facilities
5-10 Overhead
ceiling lights
Large objects Restaurants,
stairways,
warehouses
2-5 Overhead
ceiling lights
Table 10.2
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70. Decibel Levels(unit of loud
level)
Environment Common Noise
Noises Sources Decibels
Jet takeoff (200 ft) 120
|
Electric furnace area Pneumatic hammer 100 Very annoying
|
Printing press plant Subway train (20 ft) 90
|
Pneumatic drill (50 ft) 80 Ear protection
Inside sports car (50 mph) | required if
Vacuum cleaner (10 ft) 70 exposed for 8
Near freeway (auto traffic) Speech (1 ft) | or more hours
60 Intrusive
Private business office |
Light traffic (100 ft) Large transformer (200 ft) 50 Quiet
|
Minimum levels, Chicago 40
residential areas at night Soft whisper (5 ft) |
Studio (speech) 30 Very quiet
70
71. The Visual Workplace
Use low-cost visual devices to share
information quickly and accurately
Displays and graphs replace
printouts and paperwork
Able to provide timely information in
a dynamic environment
System should focus on
improvement
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72. The Visual Workplace
Present the big picture
Performance
Housekeeping
Visual signals can take many forms and
serve many functions
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73. Ethics and the Work
Environment
Fairness, equity, and ethics are important
constraints of job design
Important issues may relate to equal
opportunity, equal pay for equal work,
and safe working conditions
Helpful to work with government
agencies, trade unions, insurers, and
employees
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74. Labor Standards
Effective manpower planning is
dependent on a knowledge of the labor
required.
Labor standards are the amount of time
required to perform a job or part of a job
Accurate labor standards help
determine labor requirements, costs,
and fair work
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