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ch-3 Part I

This document discusses key factors in product and service design including cost, quality, time-to-market, and customer satisfaction. It outlines the major activities in design like translating customer needs, developing prototypes, and documenting specifications. Reasons for redesign include economic, social, political, competitive, and technological factors. The objectives of design are customer satisfaction as well as functional, cost, quality, and ease concerns. Design must consider legal, ethical, environmental, and cultural issues.

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Desu mekonnen
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© © All Rights Reserved
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Download as PPTX, PDF, TXT or read online on Scribd
51 views

ch-3 Part I

This document discusses key factors in product and service design including cost, quality, time-to-market, and customer satisfaction. It outlines the major activities in design like translating customer needs, developing prototypes, and documenting specifications. Reasons for redesign include economic, social, political, competitive, and technological factors. The objectives of design are customer satisfaction as well as functional, cost, quality, and ease concerns. Design must consider legal, ethical, environmental, and cultural issues.

Uploaded by

Desu mekonnen
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 37

4-1 Product and Service Design

CHAPTER
3
Design of Operations
Systems
4-2 Product and Service Design

Product and
Service Design
4-3 Product and Service Design

Product and Service Design


· Major factors in design strategy
· Cost
· Quality
· Time-to-market
· Customer satisfaction
· Competitive advantage

Product and service design – or redesign – should be


closely tied to an organization’s strategy
4-4 Product and Service Design

Product or Service Design Activities


· Translate customer wants and needs into product
and service requirements (marketing & operations)
· Refine existing products and services (marketing)
· Develop new products and services (marketing &
operation)
· Formulate quality goals (marketing & operations)
· Formulate cost targets (Accounting, finance,
operations)
· Construct and test prototypes (marketing ,operations
and engineering)
· Document specifications
4-5 Product and Service Design

Reasons for Product or Service Design

· Economic (e.g. low/high demand)


· Social and demographic (e.g population
shift)
· Political,
liability, or legal (e.g. safety issues,
new regulations)
· Competitiveness(e.g. new/changed products,
new adv/promotion)
· Technological (e.g. in product components,
process)
4-6 Product and Service Design

Objectives of Product and Service Design

· Main focus
· Customer satisfaction
· Secondary focus
· Function of product/service
· Cost/profit
· Quality
· Appearance
· Ease of production/assembly
· Ease of maintenance/service
4-7 Product and Service Design

Legal, Ethical, and Environmental Issues

Designers must be careful to take into account a


wide array of legal and ethical considerations
· Legal
· Product liability
· Ethical
· Releasing products with defects
· Environmental
4-8 Product and Service Design

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.
4-9 Product and Service Design

Designers Adhere to Guidelines

· Produce designs that are consistent with the


goals of the company
· Give customers the value they expect
· Make health and safety a primary concern

· Consider potential harm to the environment


4-10 Product and Service Design

Other Issues in Product and Service Design

· Product/service life cycles


· How much standardization
· Product/service reliability
· Range of operating conditions
4-11 Product and Service Design

Life Cycles of Products or Services

Saturation

Maturity

Decline
Demand

Growth

Introduction

Time
4-12 Product and Service Design

Standardization

· Standardization
· Extent to which there is an absence of variety
in a product, service or process
· Standardized products are immediately
available to customers
· Standardized products mean interchangeable
parts……vs compatibility
4-13 Product and Service Design

Advantages of Standardization

· Fewerparts to deal within inventory &


manufacturing
· Design costs are generally lower
· Reduced training costs and time
· More routine purchasing, handling, and
inspection procedures
4-14 Product and Service Design

Disadvantages of Standardization

· High cost of design changes increases


resistance to improvements.
· Decreased variety results in less consumer
appeal.
· So, what to do with the product/service design
to avoid these problems? Mass customization
4-15 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
4-16 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
4-17 Product and Service Design

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
4-18 Product and Service Design

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
4-19 Product and Service Design

Cultural differences
· Product designers in multinational companies also
must take into account any cultural differences of
different countries or regions related to the product
·Case: McDonald’s
4-20 Product and Service Design

Product Design

· Product Life Cycles


· Robust Design
· Concurrent Engineering
· Computer-Aided Design
· Modular Design
4-21 Product and Service Design

Robust Design

Robust Design: Design that results in


products or services that can function over
a broad range of conditions
4-22 Product and Service Design

examples
4-23 Product and Service Design
4-24 Product and Service Design

Phases in Product Development Process

1. Idea generation
2. Feasibility analysis
3. Product specifications
4. Process specifications
5. Prototype development
6. Design review
7. Market test
8. Product introduction
9. Follow-up evaluation
4-25 Product and Service Design

Idea Generation

Supply chain based

Ideas Competitor based

Research based
4-26 Product and Service Design

Reverse Engineering

Reverse engineering is the dismantling and


inspecting of a competitor’s product to
discover product improvements.
4-27 Product and Service Design

Research & Development (R&D)

· Organizedefforts 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.
4-28 Product and Service Design

Manufacturability

· Manufacturability
is the ease of fabrication
and/or assembly which is important for:
· Cost

· Productivity

· Quality
4-29 Product and Service Design

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
4-30 Product and Service Design

Concurrent Engineering

Concurrent engineering
is the bringing together
of engineering design and
manufacturing personnel
early in the design phase.
4-31 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
4-32 Product and Service Design

Recycling
· Recycling: recovering materials for future use
· Recycling reasons
· Cost savings
· Environment concerns
· Environment regulations
4-33 Product and Service Design

Service Design

· Service- Service is an act


· Something that is done to or for a customer
· Service delivery system
· The facilities, processes, and skills needed to
provide a service
· Product bundle
· The combination of goods and services
provided to a customer
· Service package
· The physical resources needed to perform the
service
4-34 Product and Service Design
Differences Between Product
and Service Design

· 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


4-35 Product and Service Design
Characteristics of Well Designed
Service Systems
1. Consistent with the organization mission
2. User friendly
3. Robust
4. Easy to sustain
5. Cost effective
6. Value to customers
7. Effective linkages between back operations
8. Single unifying theme
9. Ensure reliability and high quality
4-36 Product and Service Design

Challenges of Service Design

· Variable requirements
· Difficult to describe
· High customer contact

· Service – customer encounter


4-37 Product and Service Design

Operations Strategy

1. Increase emphasis on component


commonality
2. Package products and services
3. Use multiple-use platforms
4. Consider tactics for mass
customization
5. Look for continual improvement
6. Shorten time to market

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