The document discusses various aspects of product and service design. It covers trends in design such as increased emphasis on customer satisfaction and environmental concerns. It describes the design process from idea generation to testing prototypes. Key aspects discussed include quality function deployment to understand customer needs, concurrent engineering, and designing for manufacturability. The document also compares differences between designing tangible products versus intangible services.

1. Designing the
Operating System

2.  Major factors in strategy
◦ Cost
◦ Quality
◦ Time-to-market
◦ Customer satisfaction
◦ Competitive advantage
Product and Service Design

3. 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

4. Trends in Product & Service Design (Cont’d)
 Increased emphasis on or attention to:
◦ 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
 Be competitive
 Increase business growth & profits
 Avoid downsizing with development of new
products
 Improve product quality
 Achieve cost reductions in labor or materials

7. Objectives of Product and Service Design
 Development time and cost
 Product or service cost
 Resulting product or service quality
 Capability to produce or deliver a given
product or service

8. Design Process
Idea Generation
Feasibility Study
Functional
Design
Production
Design
Pilot Run and Final Tests
New Product or Service
Launch
Design
Specifications
Manufacturing
of Delivery
Specifications
Marketing
Competitors
R & D
Form Design Testing Prototypes

9. Idea Generation:
• Perceptual Map – A visual method of comparing customer perception
• Benchmarking: Comparing product or process with the best in the
world
• Reverse Engineering: Carefully dismantling competitors product to
improve own product
Feasibility Study:
A feasibility study consists of a market analysis , an economic analysis ,
and a technical and strategic analysis.
Form Design: Physical appearance of a product – its color
,size and style
Functional design: How the product will perform- Reliability
– Probability that a product will perform its intended function for a
specified period of time

10. Production Design:
How the product will be made
Simplification : reduces the number of parts , assemblies or
options in a product

11. Dr.Kano’s Method for
Understanding
Q = P/E

12. Kano’s Model
Customer Dissatisfied
+
0 Product
dysfunctional
Customer Satisfied
Product Fully Functional
(Must be )DISSATISFIERS
SATISFIERS
DELIGHTERS
100
-

13. Kano Analysis
Voice of Customer Types – e.g. Automobile
Must-Be (Dissatisfiers) – Requirement that
can be dissatisfy, but cannot increase
satisfaction. e.g. Brakes (Good brakes are expected)
Satisfiers – The more of these
requirements that are met , more one is
satisfied. E.g. Gas Mileage
Delighters: If the requirement is absent, it
does not cause dissatisfaction, but it will
delight customers if present. e.g. Retractable
Radio Antenna

14. Kano Analysis
Retractable Radio Antenna
Rear Window wiper
Electronic door locker
Gas Mileage
Warranty period
Turning radius
Brakes
Engine cooling system
Wind shield
Customer
Requirement
s (VOC) for
an
automobile

15. Sources of Ideas for Products and
Services
 Internal
◦ Employees
◦ Marketing department
◦ R&D department
 External
◦ Customers (QFD)
◦ Competitors
◦ Suppliers

16. 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.

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

18. Research & Development (R&D)
 Organized efforts to increase scientific
knowledge or product innovation & may
involve:
◦ Basic 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.

19. Legal, Ethical, and Environmental Issues
 Legal
◦ FDA, OSHA, IRS
◦ Product liability
◦ Uniform commercial code
 Ethical
◦ Releasing products with defects
 Environmental
◦ EPA

20. Regulations & Legal Considerations
 Product Liability - A manufacturer is liable
for any injuries or damages caused by a
faulty product.
 Uniform Commercial Code - Products carry
an implication of merchantability and
fitness.

21. Product Design
 Product Life Cycles
 Robust Design
 Concurrent Engineering
 Computer-Aided Design
 Modular Design

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

23. Advantages of Standardization
 Fewer parts to deal with in inventory &
manufacturing
 Reduced training costs and time
 More routine purchasing, handling, and
inspection procedures

24. 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.

25. 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.

26. Mass Customization
Mass customization:
◦ A strategy of producing standardized goods or
services, but incorporating some degree of
customization
◦ Delayed differentiation
◦ Modular design

27. Delayed Differentiation
Delayed differentiation is a postponement
tactic
◦ Producing but not quite completing a product or
service until customer preferences or specifications
are known

28. 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

29. 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

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

31. Robust Design: Design that results in
products or services that can function over a
broad range of conditions
Robust Design yields a product or service
designed to withstand variations
Designers job is to choose values for
controllable variables that react in a robust
fashion to the possible occurrences of
uncontrollable factors
Robust Design

32. 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

33. 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

34. Concurrent Engineering
Concurrent engineering
is the bringing together
of engineering design and
manufacturing personnel
early in the design phase.

35. “Over the Wall” Approach
DesignMfg
New
Product

36. 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

37. Manufacturability
 Manufacturability is the ease of
fabrication and/or assembly which is
important for:
◦ Cost
◦ Productivity
◦ Quality

38. Product design
 Design for manufacturing (DFM)
 Design for assembly (DFA)
 Design for recycling (DFR)
 Remanufacturing
 Design for disassembly (DFD)
 Robust design

39.  Recycling: recovering materials for future use
 Recycling reasons
◦ Cost savings
◦ Environment concerns
◦ Environment regulations
Recycling

40.  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
 Location important to service
Differences Between Product
and Service Design

41. Service Variability & Customer
Influence Service Design
Variability
in
Service
Require-
ments
Degree of Contact with Customer
High
Moderate
Low
None
None Low Moderate High
Telephone
Purchase
Dept. Store
Purchase
Customized
Clothing
Internet
Purchase

42. 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.

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

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