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Chapter objectives
Product and service Design
Process Selection
Strategic Capacity planning
Facility Location and Layout
Job Design and Work Measurement
4. Service Design
Specifies what the customer is to
experience
Benefits to the human senses
Psychological
benefits
5. An Effective Design Process
Matches product/service characteristics
with customer needs
Meets customer requirements in simplest,
most cost-effective manner
Reduces time to market
Minimizes revisions
6. Degree of Design Newness
1.Modification of an existing
product/service
2.Expansion of an existing product/service
3.Clone of a competitor’s product/service
4.New product/service
7. Degree of Design Change
Type of Design
Change
Newness of the
organization
Newness to the
market
Modification Low Low
Expansion Low Low
Clone High Low
New High High
8. New Product Development Process
• Concept Development
• Development of Detailed Product Design&
Prototyping
• Pilot Production/Testing
• Mass Production and Commercialization
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9. Stage I. Concept Development & Product
Planning
This involves: Generating Ideas for the new product
New ideas can be generated from:
Benchmarking
-Comparing product/process against best-in-class
Reverse engineering
Dismantling competitor’s product to improve your
own product
Market surveys , focus groups and interview are
important tools to get product ideas from customers.
Brain storming, panel discussions , Delphi-method etc
are important tools in generating ideas from within.
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10. Cont… Product Planning
• At this stage the following activities need to
be undertaken:
Choosing components and interact with suppliers
;build early system prototypes ;define product
architecture
Defining target customer’s parameters ; develop
estimates of sales and margins ; conduct early
interactions with customers ….through marketing
department
Developing cost estimates ; define process
architecture; conduct process simulation; validate
suppliers ….through manufacturing department
The final decision in this stage will be to approve the
product development program
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11. Stage II. Development of Detailed Product Design&
Prototyping
This stage requires: SPECIFYING THE DESIRED FUNCTIONAL
FEATURES OF THE PRODUCT AND THE ROCESS
• How ever the detailed product design need to be evaluated in terms of
the following criteria:
Achievement of customer requirements and product
specifications
Expected quality and reliability of the product
Reducibility and cost of the product
The impact on production of the company’s other products
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12. Stage III: Pilot Production/Testing
This stage requires the following activities :
Small quantity production
Market test of the sample products
Gathering customer opinion on the sample
products
Based on the customer feedback making the
necessary design changes in the product
STAGE IV : Mass Production and
Commercialization
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13. Production Design
How the product will be made
Simplification- reducing number of parts,
assemblies, or options in a product
Standardization - using commonly available and
interchangeable parts
Modular Design - combining standardized
building blocks, or modules, to create unique
finished products
Design for Manufacture (DFM) - designing a
product so that it can be produced easily and
economically
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15. Redesign of Motor Drive Assembly
Following Design for Assembly
Analysis
16. Designing for the Customer
Quality Function
Deployment
Value Analysis/
Value Engineering
Ideal Customer
Product
17. Quality Function Deployment
• Interfunctional teams from marketing, design
engineering, and manufacturing
• Begins with listening to the customer
– Uses market research
– Customer preferences are defined and broken
down into customer requirements
Translates voice of customer into technical design
requirements
Displays requirements in matrix diagrams
first matrix called “house of quality”
series of connected houses
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Quality Function Deployment
(QFD)
• Also known as “House of Quality”
• Customer Attributes (“Voice of the
Customer”)
• Engineering Characteristics (“Voice of the
Engineer”)
• Tradeoffs
• Competitors Comparison
20. Completed House of Quality Matrix
for a Car Door
Customer
requirements
information forms the
basis for this matrix,
used to translate
them into operating or
engineering goals
21. Benefits of QFD
Promotes better understanding of customer
demands
Promotes better understanding of design
interactions
Involves manufacturing in design process
Provides documentation of design process
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Value Analysis/Value Engineering
Achieve equivalent or better performance at a lower
cost while maintaining all functional requirements
defined by the customer
Does the item have any design features that are
not necessary?
Can two or more parts be combined into one?
How can we cut down the weight?
Are there nonstandard parts that can be
eliminated?
23. Value Analysis/Value Engineering
(VA/VE)
• Purpose is to simplify products and processes
• Objective is to achieve better performance at a
lower cost while maintaining all functional
requirements defined by the customer
24. Design Team
• Traditional approach
– “We design it, you build it” or “over the
wall”
• Concurrent engineering
– “Let’s work together simultaneously”
– A new approach to design that involves
simultaneous design of products and
processes by design teams
27. Characteristics of a Well-Designed
Service System
1. Each element of the service system is consistent with
the operating focus of the firm.
2. It is user-friendly.
3. It is robust.
4. It is structured so that consistent performance by its people and
systems is easily maintained.
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28. Characteristics of a Well-Designed
Service System (Continued)
5. It provides effective links between the
back office and the front office so that
nothing falls between the cracks.
6. It manages the evidence of service quality
in such a way that customers see the
value of the service provided.
7. It is cost-effective.
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29. Major Elements in Designing a Service
Organization
1.Identification of the target market-Who is the customer?
2.Defining the service concept –How do we differentiate our
service in the market?
3.Defining the service strategy-What is our service package
and the operating focus of our service?
4.Defining the service delivery system-What are the actual
processes , staff and facilities by which the service is
created?