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McGraw-Hill/IrwinCopyright 2010 by The McGraw-Hill Companies,Inc.All rights reserved.4Product and Service Design4-2Learning ObjectivesExplain the strategic importance of product and service design.List some key reasons for design or redesign.Identify the main objectives of product and service design.Discuss the importance of standardization.Discuss the importance of legal,ethical,and environmental issues in product and service design.4-3Learning ObjectivesBriefly describe the phases in product design and development.Describe some of the main sources of design ideas.Name several key issues in manufacturing design.Name several key issues in service design.Name the phases in service design.List the characteristics of well-designed service systems.Name some of the challenges of service design.4-4Major factors in design strategyCostQualityTime-to-marketCustomer satisfactionCompetitive advantageProduct and Service DesignProduct and service designor redesignshould be closely tied to an organizations strategy4-51.Translate customer wants and needs into product and service requirements2.Refine existing products and services3.Develop new products and services4.Formulate quality goals5.Formulate cost targets6.Construct and test prototypes7.Document specificationsProduct or Service Design Activities4-6Reasons for Product or Service DesignEconomicSocial and demographic1 Political,liability2,or legalCompetitiveCost or availabilityTechnological4-7Objectives of Product and Service DesignMain focus1Customer satisfactionUnderstand what the customer wantsSecondary focusFunction of product/serviceCost/profitQualityAppearanceEase of production/assemblyEase of maintenance/service4-8Taking into account the capabilities of the organization in designing goods and services.Failure to take this into account can:Reduce productivityReduce qualityIncrease costsDesigning For Operations4-9LegalAgri-Food and Veterinary Authority,Health Sciences AuthorityProduct liabilityUniform commercial codeEthicalReleasing products with defectsEnvironmentalEPA Legal,Ethical,and Environmental Issues4-10Regulations and Legal ConsiderationsProduct 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.4-11Designers Adhere to GuidelinesProduce designs that are consistent with the goals of the companyGive customers the value they expectMake health and safety a primary concernConsider potential harm to the environment4-12Other Issues in Product and Service DesignProduct/service life cyclesDegree of standardizationMass customizationProduct/service reliabilityRobustness of design1Degree of newnessCultural differences4-13Life Cycles of Products or ServicesTimeIntroductionGrowthMaturitySaturationDeclineDemandFigure 4.14-14StandardizationStandardization Extent to which there is an absence of variety in a product,service,or processStandardized products are immediately available to customers4-15Advantages of StandardizationFewer parts to deal with in inventory and manufacturingDesign costs are generally lowerReduced training costs and timeMore routine purchasing,handling,and inspection proceduresQuality is more consistent4-16Advantages of StandardizationOrders fillable from inventoryOpportunities for long production runs and automationNeed for fewer parts justifies increased expenditures on perfecting designs and improving quality control procedures4-17Disadvantages of Standardization Designs may be frozen with too many imperfections remainingHigh cost of design changes increases resistance to improvementsDecreased variety results in less consumer appeal4-18Mass customization:A strategy of producing standardized goods or services,but incorporating some degree of customizationDelayed differentiationModular designMass Customization4-19Delayed differentiation is a postponement tacticProducing but not quite completing a product or service until customer preferences or specifications are knownDelayed Differentiation4-20Modular DesignModular 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 failureseasier repair and replacement simplification of manufacturing and assembly 4-21ReliabilityReliability:The ability of a product,part,or system to perform its intended function under a prescribed set of conditionsFailure:Situation in which a product,part,or system does not perform as intendedNormal operating conditions:The set of conditions under which an items reliability is specified4-22Improving ReliabilityComponent designProduction/assembly techniquesTestingRedundancy/backupPreventive maintenance proceduresUser educationSystem design4-23Product DesignProduct life cyclesRobust designConcurrent engineeringComputer-aided designModular design4-24Robust design:Design that results in products or services that can function over a broad range of conditionsRobust Design4-25Taguchis ApproachDesign a robust productInsensitive to environmental factors either in manufacturing or in use.Central feature is Parameter Design.Determines:factors that are controllable and those not controllabletheir optimal levels relative to major product advances4-26Degree of Newness1.Modification of an existing product/service2.Expansion of an existing product/service3.Clone of a competitors product/service4.New product/service4-27Cultural DifferencesMultinational companies must take into account cultural differences related to the product design.4-28Global Product DesignVirtual teamsUses combined efforts of a team of designers working in different countriesProvides a range of comparative advantages over traditional teams such as:Engaging the best human resources around the worldPossibly operating on a 24-hr basisGlobal customer needs assessmentGlobal design can increase marketability4-29Global Product DesignOriginal Equipment Manufacturer(OEM)Designs and manufactures a product based on its own specifications and sells to another company for branding and distributionOriginal Design Manufacturer(ODM)Designs and manufactures a product according to purchasers specificationsOriginal Brand Manufacturer(OBM)Sells an entire product that is manufactured by a second company under its own brand4-30Phases in Product Development Process1.Idea generation2.Feasibility analysis3.Product specifications4.Process specifications5.Prototype development6.Design review7.Market test8.Product introduction9.Follow-up evaluation4-31Idea GenerationIdeasCompetitor basedSupply-chain basedResearch based4-32Reverse EngineeringReverse engineering is thedismantling and inspecting of a competitors product to discover product improvements.4-33Research&Development(R&D)Organized efforts to increase scientific knowledge or product innovation,and 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.4-34ManufacturabilityManufacturability is the ease of fabrication and/or assembly,which is important for:CostProductivityQuality4-35Designing for ManufacturingBeyond the overall objective to achieve customer satisfaction while making a reasonable profit is:Design for Manufacturing(DFM)The designers consideration of the organizations manufacturing capabilities when designing a product.The more general term design for operations encompasses services as well as manufacturing.4-36Concurrent EngineeringConcurrent engineering is the bringing together of engineering design and manufacturing personnel early in the design phase.4-37Computer-Aided DesignComputer-aided design(CAD)is product design using computer graphics.increases productivity of designers 3 to 10 timescreates a database for manufacturing information on product specificationsprovides possibility of engineering and cost analysis on proposed designs4-38Design for manufacturing(DFM)Design for assembly(DFA)Design for recycling(DFR)RemanufacturingDesign for disassembly(DFD)Robust designProduct Design4-39Recycling:recovering materials for future useRecycling reasonsCost savingsEnvironment concernsEnvironment regulationsRecycling4-40RemanufacturingRemanufacturing:Refurbishing used products by replacing worn-out or defective components.Remanufactured products can be sold for 50%of the cost of a new producerRemanufacturing can use unskilled laborSome governments require manufacturers to take back used productsDesign for Disassembly(DFD):Designing products so that they can be easily taken apart.4-41Component CommonalityMultiple products or product families that have a high degree of similarity can share components Automakers using internal partsEngines and transmissionsWater pumpsEtc.Other benefitsReduced training for assemble and installationReduced repair time and costs4-42Quality Function DeploymentVoice of the customerHouse of qualityQuality Function DeploymentQFD:An approach that integrates the“voice of the customer”into the product and service development process.4-43The House of QualityCorrelation matrixDesignrequirementsCustomerrequire-mentsCompetitiveassessmentRelationshipmatrixSpecificationsortarget valuesFigure 4.3Customer RequirementsImportance to Cust.Easy to closeStays open on a hillEasy to openDoesnt leak in rainNo road noiseImportance weightingEngineering CharacteristicsEnergy needed to close doorCheck force on level groundEnergy needed to open doorWater resistance106692375332XXXXXCorrelation:Strong positivePositiveNegativeStrong negativeX*Competitive evaluationX=UsA=Comp.AB=Comp.B(5 is best)1 2 3 4 5XABX ABXABA X BX ABRelationships:Strong=9Medium=3Small=1Target valuesReduce energy level to 7.5 ft/lbReduce forceto 9 lb.Reduce energy to 7.5 ft/lb.Maintaincurrent levelTechnical evaluation(5 is best)54321BAXBAXBAXBXABXABAXDoor seal resistanceAccoust.Trans.WindowMaintaincurrent levelMaintaincurrent levelHouse of Quality ExampleFigure 4.4The Kano ModelFigure 4.64-46Service DesignService is an actService delivery systemFacilitiesProcessesSkillsMany services are bundled with products4-47Service DesignService design involvesThe physical resources neededThe goods that are purchased or consumed by the customer,or provided with the serviceExplicit servicesImplicit services4-48Service DesignServiceSomething that is done to or for a customerService delivery systemThe facilities,processes,and skills needed to provide a serviceProduct bundleThe combination of goods and services provided to a customerService packageThe physical resources needed to perform the service4-49Tangible intangibleServices created and delivered at the same timeServices cannot be inventoriedServices highly visible to customersServices have low barrier to entry and exitLocation is important to service designRange of service systemsDemand variabilityDifferences Between Product and Service Design4-50Service SystemsService systems range from those with little or no customer contact to very high degree of customer contact such as:Insulated technical core(software development)Production line(automatic car wash)Personalized service(hair cut,medical service)Consumer participation(diet program)Self-service(supermarket)4-51Service Demand VariabilityDemand variability creates waiting lines and idle service resourcesService design perspectives:Cost and efficiency perspectiveCustomer perspectiveCustomer participation makes quality and demand variability hard to manageAttempts to achieve high efficiency may depersonalize service and change customers perception of quality4-52Phases in Service Design1.Conceptualize2.Identify service package components3.Determine performance specifications4.Translate performance specifications into design specifications5.Translate design specifications into delivery specifications4-53Service BlueprintingService blueprintingA method used in service design to describe and analyze a proposed serviceA useful tool for conceptualizing a service delivery system4-54Major Steps in Service Blueprinting1.Establish boundaries2.Identify sequence of customer interactionsPrepare a flowchart3.Develop time estimates4.Identify potential failure points4-55Characteristics of Well-Designed Service Systems1.Consistent with the organization mission2.User friendly3.Robust4.Easy to sustain5.Cost-effective6.Value to customers7.Effective linkages between back operations8.Single unifying theme9.Ensure reliability and high quality4-56Challenges of Service Design1.Variable requirements2.Difficult to describe3.High customer contact4.Service customer encounter4-57Guidelines for Successful Service Design1.Define the service package2.Focus on customers perspective3.Consider image of the service package4.Recognize that designers perspective is different from the customers perspective5.Make sure that managers are involved6.Define quality for tangible and intangibles elements7.Make sure that recruitment,training,and rewards are consistent with service expectations8.Establish procedures to handle exceptions9.Establish systems to monitor service4-581.Increase emphasis on component commonality2.Package products and services3.Employ multiple-use platforms4.Consider tactics for mass customization5.Look for continual improvement6.Shorten time to marketOperations Strategy4-59Shorten Time to Market1.Use standardized components2.Use technology3.Use concurrent engineering
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