The document discusses various aspects of product design and service operations management. It covers topics such as concept development, quality function deployment, concurrent engineering, process flow design, types of processes and facilities, service strategy and classifications, service system design, service recovery, service failsafing, and designing service systems. The document provides information on frameworks, tools, and considerations for product design and managing service operations effectively.

1. Irwin/McGraw-Hill 1
The Product Design Process
 Concept Development
 Product Planning
 Product/Process Engineering
 Pilot Production/Ramp-Up
2

2. Irwin/McGraw-Hill 2
How do you determine what the
customer wants?
 Quality Function Deployment
 Inter-functional teams from marketing,
design engineering, and manufacturing
 Voice of the customer (for new and
existing products)
 House of Quality
4

3. House of Quality
X
X
X
X
X
Correlation:
Strong positive
Positive
Negative
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
Technical evaluation
(5 is best)
5
4
3
2
1
B
A
X
BA
X B
A
X
B
X
A
BXA
BA
X
Engineering
Characteristics
Energyneeded
toclosedoor
Checkforceon
levelground
Energyneeded
toopendoor
Waterresistance
Doorseal
resistance
Accoust.Trans.
Window
Target values
Importance weighting 10 6 6 9 2 3
Reduceenergy
levelto7.5ft/lb
Reduceforce
to9lb.
Reduceenergy
to7.5ft/lb.
Maintain
currentlevel
Maintain
currentlevel
Maintain
currentlevel
Im
portance
to
Cust.
Customer
Requirements
Easy to close
Stays open on a hill
Easy to open
Doesn’t leak in rain
No road noise
7
5
3
3
2
1 2
3
5
7
4
6
5

4. Irwin/McGraw-Hill 4
 Value Analysis/Value Engineering
 Simplification of products and processes
 Cost reduction and avoidance
 Design for Manufacturability
 Traditional approach
 Concurrent engineering
 Design for Assembly
 Global Product Design
Product Design
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5. Irwin/McGraw-Hill 5
Concurrent Engineering
 Concurrent engineering can be defined
as the simultaneous development of
design functions, with open and
interactive communication existing
among all team members for the
purpose of:
 reducing time to market
 decreasing cost
 improving quality and reliability
3

6. Phased versus Overlapping Approach in New
Product Development
Design
information
processing
Activity
1
Activity
2
Activity 3
Information batch size
Single batch
transfer of
info
Phased Approach
Start of
Activity 2
Start of
Activity 3
Elapsed
time
Design
information
processing
Activity
1
Activity
2
Small batch transfer of info Overlapping Approach
Start of
Activity 2
Start of
Activity 3
Elapsed
time
____________________________________________________________
“New Product Development: The New Time Wars” Joe Blackburn, 1991. 3a

7. Irwin/McGraw-Hill 7
Types of Processes
 Conversion - e.g., creating steel from iron ore
 Fabrication - e.g., forming steel into cans
 Assembly - e.g., put cans, lids and
ingredients together
 Testing - e.g., testing for sealed weight
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8. Irwin/McGraw-Hill 8
Process Flow Structures
 Job shop
 Batch
 Assembly Line
 Continuous Flow
8

9. IV.
Continuous
Flow
III.
Assembly
Line
II.
Batch
I.
Job
Shop
Low
Volume
One of a
Kind
Multiple
Products,
Low
Volume
Few
Major
Products,
Higher
Volume
High
Volume,
High
Standard-
ization
Commercial
Printer
French Restaurant
Flexibility (High)
Unit Cost (High)
Flexibility (Low)
Unit Cost (Low)
Heavy
Equipment
Coffee Shop
Automobile
Assembly
Burger King
Sugar
Refinery
Source: Modified from Robert Hayes and Steven Wheelwright, Restoring Our Competitive Edge: Competing through
Manufacturing (New York: John Wiley & Sons, 1984). p. 209.
Exhibit 5.10, p.168: The Product - Process MatrixExhibit 5.10, p.168: The Product - Process Matrix
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10. Irwin/McGraw-Hill 10
Virtual Factory
Shift from centralized production to ....
... an integrated network of capabilities
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11. Irwin/McGraw-Hill 11
Process Flow Design
 A process flow design can be defined as a
mapping of the specific processes that raw
materials, parts, and subassemblies follow as
they move through a plant.
 Common tools to design a process flow:
 Assembly drawing
 Assembly chart
 Operation and route sheet
11

12. Assembly (Gozinto) Chart
A-2SA-2
4
5
6
7
Lockring
Spacer, detent spring
Rivets (2)
Spring-detent
A-5
Component/Assembly Operation
Inspection
Exhibit 4.13Exhibit 4.13
©The McGraw-Hill Companies, Inc., 1998 12

13. Assemble Drawing
____________________________________________________________
Operations Management, Roger Schroeder, 1985 12b

14. Irwin/McGraw-Hill 14
Example: Process Flow Chart
Inspect
Material for
Defects
Return to
Supplier for
Credit
Buffer: Material
Received
From
Supplier Defects
Found?
Yes
No,
Continue…
13

15. Irwin/McGraw-Hill 15
Goods versus Services
Pencil Manufacturer
• tangible
• storable
• easy quality assessment
• centralized production
• long lead times
• capital intensive
• low customer contact
• production separate
from consumption
McDonald’s
Psychologist
• intangible
• perishable
• difficult quality assessment
• dispersed production
• short lead times
• labor intensity
• high customer contact
• production concurrent
with consumption
goods services
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16. Irwin/McGraw-Hill 16
Some Service Generalizations (1 of 2)
1. Everyone is an expert on services.
2. Services are idiosyncratic.
3. Quality of work is not quality of service.
4. Most services contain a mix of tangible
and intangible attributes (service package).
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17. Irwin/McGraw-Hill 17
Some Service Generalizations (2 of 2)
5. High-contact services (described later) are
experienced, whereas goods are consumed.
6. Effective management of services requires
an understanding of marketing and
personnel, as well as operations.
7. Services often take the form of cycles of
encounters involving face-to-face, phone,
electromechanical, and/or mail interactions.
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18. Service Types
 Facilities-based vs. Field-based services
 Internal Services - - External Services
Internal Supplier
Internal Supplier
Internal
Customer
External
Customer
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19. Irwin/McGraw-Hill 19
Service Strategy: Focus and Advantage
Performance Priorities
 Treatment of the customer
 Speed and convenience of service delivery
 Price
 Variety
 Unique skills that constitute the service
offering
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20. Irwin/McGraw-Hill 20
Classifications of Services
 Amount of customer contact
Low versus High
 Standard or Custom Service
 The mix of tangible and intangible goods
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21. Irwin/McGraw-Hill 21
Service-System Design Matrix
Exhibit 6.7Exhibit 6.7
Mail contact
Face-to-face
loose specs
Face-to-face
tight specs
Phone
Contact
Face-to-face
total
customization
Buffered
core (none)
Permeable
system (some)
Reactive
system (much)
High
LowHigh
Low
Degree of customer/server contact
On-site
technology
Sales
Opportunity
Production
Efficiency
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22. Irwin/McGraw-Hill 22
Service Blueprinting
Brush
shoes
Apply
polish
Fail
point
Buff
Collect
payment
Clean
shoes Materials
(e.g., polish, cloth)
Select and
purchase
supplies
Standard
execution time
2 minutes
Total acceptable
execution time
5 minutes
30
secs
30
secs
45
secs
15
secs
Wrong
color wax
Seen by
customer 45
secs
Line of
visibility
Not seen by
customer but
necessary to
performance
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23. Irwin/McGraw-Hill 23
Failure Mode and Effects Criticality
Analysis (FMECA or FMEA)
Risk Priority Number (RPN) = Occurrence * Severity * Detection
 Occurrence = Frequency of failure mode (1=remote,
9=inevitable, 10=certain)
 Severity = How serious is the failure to the process; to business
results? (1=minor, 2-3=annoyance, 9-10=very high/most
severe)
 Detection = Likelihood that a defect will be detected by controls
before the next (subsequent) process (1-2=very high, 9=very
low, 10=absolutely cannot detect)


24. Irwin/McGraw-Hill 24
Service Recovery (Just in case)
 A real-time response to a service failure.
 Blueprinting can guide recovery planning
(fail points).
 Recovery planning involves training front-
line workers to respond to such situations as
overbooking, lost luggage, or a bad meal.
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25. Irwin/McGraw-Hill 25
Service Recovery (Just in case)
“Empowerment can only take place when
every associate can personally assure
customer satisfaction every time!”
Gary Johnson

26. Irwin/McGraw-Hill 26
Service Recovery Processes:
Fundamental Questions to Ask
 Who are my customers?
 What is my product or service?
 What are my customer’s expectations and
measures?
 Does my product or service meet their
expectations?
 What is the process for providing my product or
service?
 What action is required to improve the process?
 What are my customer’s moments of truth?

27. Irwin/McGraw-Hill 27
Service Recovery - How it Works
Process Identification
Incidents
Remedies
Cost of Incident
Measurement of Frequency
Customer
Identification
Mission
Statement
Cost of
Poor Quality

28. Irwin/McGraw-Hill 28
Service Failsafing: Poka-Yokes
 Keeping a mistake from
becoming a service
defect.
57
 A proactive approach

29. Irwin/McGraw-Hill 29
Service Failsafing: Poka-Yokes
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30. Irwin/McGraw-Hill 30
Three Contrasting Service Designs
 The production line approach
 The self-service approach
 The personal attention approach
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31. Irwin/McGraw-Hill 31
Designing the Service System
 Major Design Issues
 Product & Process are designed simultaneously
 Scheduling of Capacity
 due to uncertainty in demand
 inability to store inventory
 Dealing will uncertainty in demand
 preemptive tactics
 flexibility
 forecasting
 use of waiting lines
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32. Irwin/McGraw-Hill 32
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 structured so that consistent performance by its
people and systems is easily maintained.
3. It provides effective links between the back & front
office so that nothing falls between the cracks.
4. It manages the evidence of service quality in such a
way that customers see the value of the service.
5. The service system is:

cost-effective

user-friendly

robust
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