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Product and Service Design

Chapter 4

Product and Service Design

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Product and Service Design

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
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Product and Service Design

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

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Product and Service Design

Trends in Product & Service Design (Contd) Increased emphasis on or attention to:
The organizations capabilities to produce or deliver the item Environmental concerns

Designing products & services that are user friendly

Designing products that use less material

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Product and Service Design

Objectives of Product and Service Design

Design a product or service that will meet (or exceed) customer expectations, within cost or budget, that takes into account the capabilities of operations and the fact that alternative designs may be more or less efficient to produce or provide. Satisfy customers while making a reasonable profit. Consider organization capabilities when designing a product. DFO--Design For Operations manufacturability

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Product and Service Design

Sources of Ideas for Products and Services Motivation for design and redesign comes from many directions: Internal Employees Marketing department R&D department External Customers Competitors Suppliers 6

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Product and Service Design

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.

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Product and Service Design

Product & Service Design Issues Product Life Cycles Standardization Mass Customization Reliability Robust Design

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Product and Service Design

Life Cycles of Products or Services

Saturation

Maturity

Deman d

Decline Growth

Incubation

Time
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Product and Service Design

Standardization Extent to which there is absence of variety in a product, service, or process. Advantages of Standardization Fewer parts to deal with in inventory & manufacturing

Reduced training costs and time

More routine purchasing, handling, and inspection procedures
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Product and Service Design

Standardization Advantages of Standardization (Contd)

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.
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Product and Service Design

Standardization 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.
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Product and Service Design

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

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Product and Service Design

Delayed Differentiation Delayed differentiation is a postponement tactic

Producing but not quite completing a product or service until customer preferences or specifications are known

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Product and Service Design

Modular Design
Modular design is a form of standardization in which component parts are grouped 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

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Product and Service Design

Robust Design Robust Design: Design that results in products or services that can function over a broad range of conditions

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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
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Product and Service Design

Manufacturing Designing
Production Capabilities--DFM,DFA Remanufacturing RecyclingDFR Component Commonality Concurrent Engineering Computer-Aided Design

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Product and Service Design

Concurrent Engineering

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

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Product and Service Design

Over the Wall Approach

New Product

Mfg

Design
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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
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Product and Service Design

Service Design
Differences between Service and Product Design: focuses on more intangible factors less latitude in finding and correcting errors before customer does services cant be inventoried highly visible to consumers and must be designed accordingly some services have low barriers to entry & exit location often crucial
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Product and Service Design

Service Design Begins with choice of service strategy and extends to design of the service delivery system. Issues: Degree of variation in service requirements Degree of customer contact and customer involvement in the delivery system
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Product and Service Design

Service Variability & Customer Influence Service Design

High Variability Moderate in Service Requirements Low

Highly customized

Customized Clothing Dept. Store Purchase Telephone Purchase Internet Purchase None

None Highly Standardized

Low

Moderate

High

Degree of Contact with Customer

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Product and Service Design

Quality Function Deployment The House of Quality

Correlation matrix Design requirements

Customer requirements

Relationship matrix

Competitive assessment

Specifications or target values

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Product and Service Design

X

House of Quality Example

Engineering Characteristics

Correlation:
Strong positive Positive
X X X X

*
Water resistance Accoust. Trans. Window

Negative Strong negative

Check force on level ground

Energy needed to close door

Energy needed to open door

Competitive evaluation
X = Us A = Comp. A B = Comp. B (5 is best) 1 2 3 4 5

Customer Requirements Easy to close Stays open on a hill Easy to open Doesnt leak in rain No road noise Importance weighting 7 5 3 3 2

Door seal resistance

X X AB

AB

XAB A XB

X A

10
Reduce energy level to 7.5 ft/lb

9
Reduce energy to 7.5 ft/lb.

Relationships:
Strong = 9 Medium = 3 Small = 1

Maintain current level

Reduce force to 9 lb.

Maintain current level

BXA

Target values

Technical evaluation (5 is best)

5 4 3 2 1

B A

BA X

B A X

B X A

Maintain current level

BA X

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