Chapter threeDesign of goods and

services

Learning Unit Objectives Once this unit is completed you should be able to:- Understand the basis of competitiveness in both service

and manufacturing environments Understand the functions of goods and services design Understand the application of the steps in product design

and development Apply the processes for the generation of new ideas Understand the concept of product-life-cycle management

Learning objectives• Raise awareness of the concept that satisfying

customers is perhaps the most important competitive goal of any business

• Understand that customers form perceptions of the quality of goods and services by comparing their expectations with actual outcomes

• Understand the main objectives and importance of goods and service design

• Define the product life cycle and the steps in the actual design process

Learning objectives • Explain the concept of a product development

team• Explain robust design, manufacturability,

modular design, and CAD• Discuss value analysis and configuration

management• Explain the principles and practices of kaizen• Discuss the concepts of mass customisation and

modular design• Appreciate that gathering customer information

is vital to providing a quality service.

Introduction• What do customers know about their

customers?• What makes customers use the good or service

on offer?• What factors ensure customer retention?• DO managers think in terms of which service

customers use AND in terms of the benefits customers seek?

• How do customers judge a quality good or service?

ANSWERS HAVE A DIRECT IMPACT ON COMPANY SURVIVAL

3.1 Introduction

• Design of goods and services = key to organisational survival and success

• Good design: all activities connected with introducing new good to the market

• Service design: all activities connected with introducing new service to the market

• Interconnected

• Pressures.

Pressures

Pressures on design managers include:-Customer and markets, local and internationalFull exploitation of latest technology availableGlobalisation of marketsChange in customer demand patternsOther applications for existing products

3.2 Basis of competitivenessGlobalisation – no longer guaranteed a firm base of customers

Factors:

– Technology – keep ahead with latest technology

– Outside influences – Government legislation i.e. environmental controls, trade union activity i.e. health & safety measures

– Economic indicators – other emerging markets i.e. China

– The competition!!

– Cost and availability – resources must be right price and quality to enable manufacture of goods at right price and standard

3.2 Basis of competitiveness (cont.)

• No single factor accounts for customer satisfaction

• Customer requirements paramount importance

• Marketing & operations departments work together to understand customer desires during design.

3.3 Functions of goods-and-service design

• Clear definition (customers, markets)• Understanding customers long and short-term

needs• Linkages between customer & design,

production and delivery• Relationships with customers• Complaint management processes• Measurement of customer satisfaction.

3.4 Product development

• Product life-cycle– Introduction– Growth– Maturity– Decline

3.4 Product development

Show vide “product lifecycle”

3.4 Product development • Steps in product design and development

– Planning – development of design strategy. Technology check

– Concept development – investigate target market and its requirements

– System design - identify all sub-systems required to make up the good/service

– Detailed design – specification of good/service. Product and quality specifications. Process plan developed

– Testing & improvement – prototype production. Performance evaluation

– Production initialisation – production commences. Operator training. Product/good launched

3.4 Product development

• Product development team

– Ensures the product/good that is introduced is a success

– Does the product/good meet customer requirements?

– Multi-disciplinary

• System, parameter and tolerance design

- Process of applying scientific and engineering knowledge to produce a basic functional design that meets both customer needs and manufacturing requirements

3.5 Robust design

• Blueprint – that can be manufactured to specifications during the manufacturing process

• Specific purpose

• Reduces probability of failure

• Considers environmental factors.

3.6 Ensuring manufacturability & analysis of value

These two activities are inseparable

•Advantages:– Cost reduction– Robust design– Improved operating characteristics– Easy maintenance– Reduced intricacy– Improved safety

3.6 Ensuring manufacturability & analysis of value

• DFMA – Design for manufacturability and assembly

• Objective – increase quality by ensuring goods designed for manufacturing fit seamlessly into the manufacturing process

• Simplify the transformation process

3.6 Ensuring manufacturability & analysis of value

• Reduce all parts to simplest• Curtail the number of operations• Design to only meet customer requirements• Design product to tie in with competence of

process• Include highest level of quality for

standardised parts• Minimise use of specialist equipment • etc….

3.6 Ensuring manufacturability & analysis of value

• Generation of new product ideas• Creativity• Reasons for new products – changes in:

• General• Economic indicators• Technology• Customer needs• Politico-legal environment• Environment.

Brainstorming

Uses team participation to spawn innovative thoughts on specific subject matter

•No idea should be criticised

•No idea should be belittled

•No idea should be laughed at

Brainstorming

Show brainstorming video

Brainstorming

GROUP EXERCISE

You are asked to design a new motor vehicle that will be very energy efficient. Generate some new ideas for this car.

3.7 Product life cycle management• Important acronyms:

PPO – product and process optimisation SBU – strategic business unit JIT – just in time QFD – quality function deployment CPI – continuous process improvements

PPO• Product optimisation is the practice of making changes

or adjustments to a product to make it more desirable.• Example• A product has a number of attributes. For example, a

soda bottle can have different packaging variations, flavours, nutritional values. It is possible to optimise a product by making minor adjustments. Typically, the goal is to make the product more desirable and to increase marketing metrics such as Purchase Intent, Believability, Frequency of Purchase, etc

SBU• An autonomous division or organisational unit, small

enough to be flexible and large enough to exercise control over most of the factors affecting its long term performance.

• Because strategic business units are more agile (and usually have independent missions and objectives), they allow the owning conglomerate to respond quickly to changing economic or market situations

JITa system in which goods are made or purchased just before they are needed, so as to avoid carrying high levels of stock.

QFDListening to voice of the market (customer). It is a structured product development process which translates what the market requires into a programme to create, manufacture, and deliver it. In a QFD process, multi-skilled teams collaborate to arrive at a common understanding of the customer needs, and determine the appropriate technical requirements of each stage.

CPIOngoing activities aimed at process simplification, and reduction or elimination of process waste.

3.7 Product life cycle management

• Managing reprocessing, restructuring or re-engineering change– Key to managing change is to get an optimal

balance between types of change:• CPI restructuring or renovation• New product introduction• Strategic technology insertion• Agile and virtual organisational traits

3.7 Product life cycle management

• Managing continuity and configuration management– Continuity (ongoing similarity)– Configuration (arrangement of parts)– 3 stages:

• Development• Production• Service

3.7 Product life cycle management

• Managing revision changes:

–Change management

–Class discussion (see Table 3.1 p85)

3.7 Product life cycle management

• Managing revision changes:– Focusing on customer satisfaction– Incorporating lessons learned.

3.8 Mass customisation

• process speedily fabricates parts of components that are unvarying

• Could include customised parts

• E.g. MacDonald’s

• Successful when:– Modular design– Effective scheduling– Speedy throughput rate.

Summary

• Considered importance of goods & service design

• Competitiveness• Product development• Robust design• Manufacturability & analysis of value (DFMA)• Product life cycle management• Mass customisation.

GROUP EXERCISE

In groups of 2 please complete case studies 1 & 2 on page 93

Next Week

1. Read p 95 – 112

2. Write a short paragraph explaining the basics of kaizen. How is it implemented in an organisation?

3. Write a paragraph describing mass customisation with examples.