Chapter 3Products and Services

Product Design

Specifies materialsSpecifies materials Determines dimensions & Determines dimensions &

tolerancestolerances Defines appearanceDefines appearance Sets performance Sets performance

standardsstandards

Service Design

Specifies what the customer is to experienceSpecifies what the customer is to experience Physical itemsPhysical items Sensual benefitsSensual benefits Psychological benefitsPsychological benefits

An Effective Design Process

Matches product/service characteristics with Matches product/service characteristics with customer needscustomer needs

Meets customer requirements in simplest, most Meets customer requirements in simplest, most cost-effective mannercost-effective manner

Reduces time to marketReduces time to market Minimizes revisionsMinimizes revisions

Stages in the Design Process

Idea Generation Idea Generation — Product Concept— Product Concept

Feasibility Study Feasibility Study — Performance — Performance SpecificationsSpecifications

Preliminary Design Preliminary Design — Prototype— Prototype

Final Design Final Design — Final Design Specifications— Final Design Specifications

Process Planning Process Planning — Manufacturing — Manufacturing SpecificationsSpecifications

The Design Process

Pilot runand final tests

New product or service launch

Final designFinal design& process plans& process plans

Ideageneration

Feasibilitystudy

Product or Product or service conceptservice concept

Performance Performance specificationsspecifications

Functionaldesign

Form design

Production design

Revising and testing Revising and testing prototypesprototypes

Design Design specificationsspecifications

Manufacturing Manufacturing or delivery or delivery specificationsspecifications

SuppliersSuppliersR&DR&D

CustomersCustomers

MarketingMarketing CompetitorsCompetitors

Figure 3.1Figure 3.1

Idea Generation

Suppliers, distributors, salespersonsSuppliers, distributors, salespersons Trade journals and other published materialTrade journals and other published material Warranty claims, customer Warranty claims, customer

complaints, failurescomplaints, failures Customer surveys, focus Customer surveys, focus

groups, interviewsgroups, interviews Field testing, trial usersField testing, trial users Research and developmentResearch and development

More Idea Generators

Perceptual MapsPerceptual Maps Visual comparison of Visual comparison of

customer perceptionscustomer perceptions

BenchmarkingBenchmarking Comparing product/service Comparing product/service

against best-in-classagainst best-in-class

Reverse engineeringReverse engineering Dismantling competitor’s product to improve your own Dismantling competitor’s product to improve your own

productproduct

Perceptual Map of Breakfast Cereals

HIGH HIGH NUTRITIONNUTRITION

LOW LOW NUTRITIONNUTRITION

GOOD GOOD TASTETASTE

Cocoa PuffsCocoa Puffs

BAD BAD TASTETASTE

Rice Rice KrispiesKrispies

WheatiesWheaties

CheeriosCheerios

Shredded Shredded WheatWheat

Figure 3.2Figure 3.2

Feasibility Study

Market Market AnalysisAnalysis

Economic Economic AnalysisAnalysis

Technical / Strategic AnalysisTechnical / Strategic Analysis Performance SpecificationsPerformance Specifications

Preliminary Design

Create form & functional designCreate form & functional design Build prototypeBuild prototype Test prototypeTest prototype Revise prototypeRevise prototype RetestRetest

Functional Design(How the Product Performs)

ReliabilityReliability Probability product performs intended Probability product performs intended

function for specified length of timefunction for specified length of time

MaintainabilityMaintainability Ease and/or cost or Ease and/or cost or

maintaining/repairing productmaintaining/repairing product

Computing Reliability

0.90 0.90 0.90 x 0.90 = 0.810.90 x 0.90 = 0.81

0.95 + 0.90(1-0.95) = 0.9950.95 + 0.90(1-0.95) = 0.995

Components in seriesComponents in series

Components in parallelComponents in parallel

0.95

0.90RR22

RR11

System Availability

System Availability, SA = System Availability, SA = MTBFMTBF

MTBF + MTTRMTBF + MTTR

PROVIDERPROVIDER MTBF (HR)MTBF (HR) MTTR (HR)MTTR (HR)

AA 6060 4.04.0BB 3636 2.02.0CC 2424 1.01.0

SASAAA = 60 / (60 + 4) = .9375 or 93.75% = 60 / (60 + 4) = .9375 or 93.75%

SASABB = 36 / (36 + 2) = .9726 or 97.26% = 36 / (36 + 2) = .9726 or 97.26%

SASACC = 24 / (24 + 1) = .9473 or 94.73% = 24 / (24 + 1) = .9473 or 94.73%Example 3.1Example 3.1

Production Design

Part of the preliminary design phasePart of the preliminary design phase SimplificationSimplification StandardizationStandardization ModularityModularity

Design Simplification(a) The original design(a) The original design

Assembly using Assembly using common fastenerscommon fasteners

(b) Revised design(b) Revised design

One-piece base & One-piece base & elimination of elimination of fastenersfasteners

(c) Final design(c) Final design

Design for Design for push-and-snap push-and-snap assemblyassembly

Figure 3.3Figure 3.3

Final Design & Process Plans

Produce detailed drawings & specificationsProduce detailed drawings & specifications Create workable instructions for manufactureCreate workable instructions for manufacture Select tooling & equipmentSelect tooling & equipment Prepare job descriptionsPrepare job descriptions Determine operation & assembly orderDetermine operation & assembly order Program automated machinesProgram automated machines

Improving the Design Process

Design teamsDesign teams Concurrent designConcurrent design Design for manufacture & assemblyDesign for manufacture & assembly Design to prevent failures and ensure valueDesign to prevent failures and ensure value Design for environmentDesign for environment Measure design qualityMeasure design quality Utilize quality function deploymentUtilize quality function deployment Design for robustnessDesign for robustness Engage in collaborative designEngage in collaborative design

Design Teams

Marketing, manufacturing, engineeringMarketing, manufacturing, engineering Suppliers, dealers, customersSuppliers, dealers, customers Lawyers, accountants, insurance Lawyers, accountants, insurance

companiescompanies

Concurrent Design

Improves quality of early design Improves quality of early design decisionsdecisions

Decentralized - suppliers complete Decentralized - suppliers complete detailed design detailed design

Incorporates production processIncorporates production process Often uses a price-minus systemOften uses a price-minus system Scheduling and management can be Scheduling and management can be

complex as tasks are done in parallelcomplex as tasks are done in parallel

Design for Manufacture and Assembly

Design a product for easyDesign a product for easy& economical production& economical production

Incorporate production Incorporate production design early in the design phasedesign early in the design phase

Improves quality and reduces costs Improves quality and reduces costs Shortens time to design and manufactureShortens time to design and manufacture

DFM Guidelines

1.1. Minimize the number of parts, tools, fasteners, Minimize the number of parts, tools, fasteners, and assembliesand assemblies

2.2. Use standard parts and repeatable processesUse standard parts and repeatable processes3.3. Modular designModular design4.4. Design for ease of assembly, minimal Design for ease of assembly, minimal

handlinghandling5.5. Allow for efficient testing and parts Allow for efficient testing and parts

replacementreplacement

Value Analysis (Value Engineering)

Ratio of value / costRatio of value / cost Assessment of value : Assessment of value :

1. Can we do without it?1. Can we do without it?2. Does it do more than is required?2. Does it do more than is required?3. Does it cost more than it is worth?3. Does it cost more than it is worth?4. Can something else do a better job4. Can something else do a better job5. Can it be made by less costly method, tools, material?5. Can it be made by less costly method, tools, material?

6. Can it be made cheaper, better or faster by someone else?6. Can it be made cheaper, better or faster by someone else?

Design for Environment

Design from recycled materialDesign from recycled material Use materials which can be recycledUse materials which can be recycled Design for ease of repairDesign for ease of repair Minimize packagingMinimize packaging Minimize material & energy Minimize material & energy

used during manufacture, consumption & disposalused during manufacture, consumption & disposal

Characteristics of Services

1.1. Services are intangibleServices are intangible2.2. Service output is variable Service output is variable 3.3. Service have higher customer contactService have higher customer contact4.4. Services are perishableServices are perishable5.5. Service inseparable from deliveryService inseparable from delivery6.6. Tend to be decentralized and dispersedTend to be decentralized and dispersed7.7. Consumed more often than productsConsumed more often than products8.8. Services can be easily emulatedServices can be easily emulated

FedEx

A Well-Designed Service System is:

Consistent with firm’s strategic focusConsistent with firm’s strategic focus User friendlyUser friendly RobustRobust Easy to sustainEasy to sustain Effectively linked Effectively linked

between front & back officebetween front & back office Cost effectiveCost effective Visible to customerVisible to customer

Design for High-Contact Services

DESIGN DECISIONDESIGN DECISION HIGH-CONTACT SERVICEHIGH-CONTACT SERVICE LOW-CONTACT SERVICELOW-CONTACT SERVICE

Facility locationFacility location Convenient to customerConvenient to customer Near labor or transportationNear labor or transportation

Facility layoutFacility layout Must look presentable, accommodate Must look presentable, accommodate customer needs, and facilitate customer needs, and facilitate interaction with customerinteraction with customer

Designed for efficiencyDesigned for efficiency

Quality controlQuality control More variable since customer is More variable since customer is involved in process; customer involved in process; customer expectations and perceptions of expectations and perceptions of quality may differ; customer present quality may differ; customer present when defects occurwhen defects occur

Measured against established Measured against established standards; testing and rework standards; testing and rework possible to correct defectspossible to correct defects

CapacityCapacity Excess capacity required to handle Excess capacity required to handle peaks in demandpeaks in demand

Planned for average demandPlanned for average demand

Table 3.2Table 3.2

Design for High-Contact Services

DESIGN DECISIONDESIGN DECISION HIGH-CONTACT SERVICEHIGH-CONTACT SERVICE LOW-CONTACT SERVICELOW-CONTACT SERVICE

Worker skillsWorker skills Must be able to interact well with Must be able to interact well with customers and use judgment in customers and use judgment in decision makingdecision making

Technical skillsTechnical skills

SchedulingScheduling Must accommodate customer Must accommodate customer scheduleschedule

Customer concerned only with Customer concerned only with completion datecompletion date

Service processService process Mostly front-room activities; service Mostly front-room activities; service may change during delivery in may change during delivery in response to customerresponse to customer

Mostly back-room activities; Mostly back-room activities; planned and executed with planned and executed with minimal interferenceminimal interference

Service packageService package Varies with customer; includes Varies with customer; includes environment as well as actual serviceenvironment as well as actual service

Fixed, less extensiveFixed, less extensive

Table 3.2Table 3.2