chapter 4 om
TRANSCRIPT
4-1 Product and Service Design
CHAPTER4
Product and Service Design
McGraw-Hill/IrwinOperations Management, Eighth Edition, by William J. StevensonCopyright © 2005 by The McGraw-Hill Companies, Inc. All rights
reserved.
4-2 Product and Service Design
Major factors in design strategy Cost Quality Time-to-market Customer satisfaction Competitive advantage
Product and Service DesignProduct and Service Design
Product and service design – or redesign – should be closely tied to an organization’s strategy
4-3 Product and Service Design
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
Product or Service Design ActivitiesProduct or Service Design Activities
4-4 Product and Service Design
Reasons for Product or Service DesignReasons for Product or Service Design Economic Social and demographic Political, liability, or legal Competitive Technological
4-5 Product and Service Design
Objectives of Product and Service DesignObjectives 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
4-6 Product and Service Design
Taking into account the capabilities of the organization in designing goods and services
Designing For OperationsDesigning For Operations
4-7 Product and Service Design
Legal FDA, OSHA, IRS Product liability Uniform commercial code
Ethical Releasing products with defects
Environmental EPA
Legal, Ethical, and Environmental IssuesLegal, Ethical, and Environmental Issues
4-8 Product and Service Design
Regulations & Legal ConsiderationsRegulations & 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 GuidelinesDesigners Adhere to Guidelines Produce designs that are consistant 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 DesignOther 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 ServicesLife Cycles of Products or Services
Time
Introduction
Growth
Maturity
Saturation
Decline
Demand
Figure 4.1
4-12 Product and Service Design
StandardizationStandardization Standardization
Extent to which there is an absence of variety in a product, service or process
Standardized products are immediately available to customers
4-13 Product and Service Design
Advantages of StandardizationAdvantages of Standardization Fewer parts to deal with in 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
Advantages of Standardization Advantages of Standardization (Cont’d)(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.
4-15 Product and Service Design
Disadvantages of StandardizationDisadvantages 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.
4-16 Product and Service Design
• Mass customization: A strategy of producing standardized goods
or services, but incorporating some degree degree of customization
Delayed differentiation Modular design
Mass CustomizationMass Customization
4-17 Product and Service Design
• Delayed differentiation is a postponement tactic Producing but not quite completing a product
or service until customer preferences or specifications are known
Delayed DifferentiationDelayed Differentiation
4-18 Product and Service Design
Modular DesignModular 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
4-19 Product and Service Design
ReliabilityReliability 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
4-20 Product and Service Design
Improving ReliabilityImproving Reliability• Component design• Production/assembly techniques• Testing• Redundancy/backup• Preventive maintenance procedures• User education• System design
4-21 Product and Service Design
Product DesignProduct Design Product Life Cycles Robust Design Concurrent Engineering Computer-Aided Design Modular Design
4-22 Product and Service Design
Robust Design: Design that results in products or services that can function over a broad range of conditions
Robust DesignRobust Design
4-23 Product and Service Design
Degree of NewnessDegree of Newness
1. Modification of an existing product/service2. Expansion of an existing product/service3. Clone of a competitor’s product/service4. New product/service
4-24 Product and Service Design
Phases in Product Development ProcessPhases in Product Development Process
1. Idea generation2. Feasibility analysis3. Product specifications4. Process specifications5. Prototype development6. Design review7. Market test8. Product introduction9. Follow-up evaluation
4-25 Product and Service Design
Idea GenerationIdea Generation
Ideas Competitor based
Supply chain based
Research based
4-26 Product and Service Design
Reverse EngineeringReverse Engineering
Reverse engineering is thedismantling and inspecting of a competitor’s product to discover product improvements.
4-27 Product and Service Design
Research & Development (R&D)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.
4-28 Product and Service Design
ManufacturabilityManufacturability Manufacturability is the ease of fabrication
and/or assembly which is important for: Cost Productivity Quality
4-29 Product and Service Design
Concurrent EngineeringConcurrent Engineering
Concurrent engineering is the bringing together of engineering design and manufacturing personnel early in the design phase.
4-30 Product and Service Design
Computer-Aided DesignComputer-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
4-31 Product and Service Design
Recycling: recovering materials for future use Recycling reasons
Cost savings Environment concerns Environment regulations
RecyclingRecycling
4-32 Product and Service Design
Service DesignService Design Service is an act Service delivery system
Facilities Processes Skills
Many services are bundled with products
4-33 Product and Service Design
Service DesignService Design Service design involves
The physical resources needed The goods that are purchased or consumed by
the customer Explicit services Implicit services
4-34 Product and Service Design
Service DesignService Design Service
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
4-35 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
Differences Between Product Differences Between Product and Service Designand Service Design
4-36 Product and Service Design
Phases in Service DesignPhases in Service Design
1. Conceptualize2. Identify service package components3. Determine performance specifications4. Translate performance specifications into
design specifications5. Translate design specifications into delivery
specifications
4-37 Product and Service Design
Service BlueprintingService Blueprinting Service blueprinting
A method used in service design to describe and analyze a proposed service
A useful tool for conceptualizing a service delivery system
4-38 Product and Service Design
Major Steps in Service BlueprintingMajor Steps in Service Blueprinting
1. Establish boundaries2. Identify steps involved3. Prepare a flowchart4. Identify potential failure points5. Establish a time frame6. Analyze profitability
4-39 Product and Service DesignCharacteristics of Well Designed Characteristics of Well Designed Service SystemsService Systems
1. 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 quality
4-40 Product and Service Design
Challenges of Service DesignChallenges of Service Design Variable requirements Difficult to describe High customer contact Service – customer encounter
4-41 Product and Service Design
Quality Function Deployment Voice of the customer House of quality
Quality Function DeploymentQuality Function Deployment
QFD: An approach that integrates the “voice of the customer” into the product and service development process.
4-42 Product and Service Design
The House of QualityThe House of Quality
Correlation matrix
Designrequirements
Customerrequire-ments
Competitiveassessment
Relationshipmatrix
Specificationsor
target values
Figure 4.4
4-43 Product and Service Design
Customer Requirements
Importance to Cust.Easy to close
Stays open on a hill
Easy to open
Doesn’t leak in rain
No road noiseImportance weighting
Engineering Characteristics
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oor
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Wat
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10 6 6 9 2 3
7
5
3
3
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XX
X
XX
Correlation:Strong positivePositiveNegativeStrong negative
X*Competitive evaluation
X = UsA = Comp. AB = Comp. B(5 is best)1 2 3 4 5
X AB
X AB
XAB
A X B
X A B
Relationships:Strong = 9Medium = 3Small = 1Target values
Red
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7.5
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Red
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Red
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House of Quality ExampleHouse of Quality ExampleFigure 4.5
4-44 Product and Service Design
1. Increase emphasis on component commonality
2. Package products and services3. Use multiple-use platforms4. Consider tactics for mass
customization5. Look for continual improvement6. Shorten time to market
Operations StrategyOperations Strategy
4-45 Product and Service Design
Shorten Time to MarketShorten Time to Market
1. Use standardized components2. Use technology3. Use concurrent engineering