Design of Goods and Services Chapter 5

Designing Goods Form design: Appearance and other sensory aspects of a product Contributes to customer expectations of quality Functional design Performance standards Materials used Physical characteristics Part dimensions and tolerances (acceptable range of values for a dimension)

Designing Services Service package Physical elements: facility, equipment and furnishings, inventories Sensory and aesthetic aspects Psychological benefits Quality standards Physical environment in which the service is provided

Feasibility Study The objective is to design a product that Fits the company's strategy and will be competitive in the marketplace Is within the company's financial capabilities to develop and launch Meets customer needs in target markets Can be made in a quality manner And sold at a price that customers are willing to pay While meeting the company's profit targets

Operations Issues in Product Design Product design Product design is a joint responsibility of marketing, operations, and engineering (in manufacturing) Production design (how the product will be made) Would we need a new or modified facility? Can the firm make this product with consistent quality? How many workers will we need? What skills will they need?

Functional Design of Goods How the Product Performs Reliability – 2 definitions 1. The probability that a product or part will perform its intended function for a specified period of time under normal conditions of use 2. Mean time between failures The reliability of a product depends on the reliability of its component parts Durability: length of a product's useful life

Functional Design of Goods How the Product Performs (2) Maintainability or serviceability Ease and/or cost of repairs Useability (ease of use) ease of learning ease of use ease of remembering how to use frequency and severity of errors user satisfaction with experience

 The objective of DFM is to design a product for easy and economical production  Simplification: reducing the number of parts, assemblies, or options in a product  See Figure 5-3, p. 189  Standardization: using commonly available and interchangeable parts Design for Manufacturing (DFM)

Design for Manufacturing (2) Advantages of simplification and standardization Reduces the cost of ordering, purchasing, and storing parts. Reduces the space required to hold inventory Reduces the number of tools and operations required (by eliminating bolts, screws, etc.) Reduces labor costs Reduces the time required to make the product

Design for Manufacturing (3)  Modularity (modular design): combining standardized building blocks, or modules, to create unique finished products  Permits some customization  Eliminates need for finished goods inventories  Design products that are easy to assemble.

Design for Manufacturing (4) Value Analysis of Parts and Materials Can we do without it? Does it do more than is required? Does it cost more than it is worth? Can something else do a better job? Can it be made by a less costly method? with less costly tooling? with less costly material? Can it be made cheaper, better, or faster by someone else? (Should we outsource?)

Reducing Time-to-Market Establish multifunctional design teams. See Figure 5- 4, p. 190 Make design decisions concurrently rather than sequentially Collaborative design with suppliers and among suppliers Design for manufacturing Use computer-aided design & engineering Rapid prototyping

Concurrent Design Simultaneous design of products and processes by design teams Involves suppliers in design Uses Web-based collaborative work systems (collaborative product commerce) Many tasks are done at the same time: requires good project management Uses a price-minus approach rather than a cost- plus approach to design

Concurrent Design (2) Advantages of concurrent design Shorter time to market Better product quality Lower design costs Lower production costs Fewer product and process changes after product is introduced

Design for the Environment Design products that Can be recycled Can be made from recycled material Are durable and easy to fix Have minimial packaging Use less energy, use alternative energy sources, or use renewable energy Do not include harmful materials Extended producer responsibility holds companies responsible for their product even after its useful life is over

Computer-Aided Design & Engineering Computer-aided design (CAD): use of computer software to design products Computer-aided engineering (CAE): use of computer software to evaluate and improve product designs Specialized CAD/CAE software is used by architects and landscape architects

Advantages of CAD and CAE Marketing: Firms can design better products and get them to market faster Finance: CAD and CAE reduce design costs, production costs, and the number of major product and process changes needed Operations: It is easier to make the product and to maintain good quality. General: Easier to use concurrent engineering, value engineering, design for manufacturing, and to involve suppliers in product design.

Data Flow in Manufacturing Technology Computer aided design (CAD) Computer aided engineering (CAE) Product design data Final design? No Yes Final design data Computer aided process planning (CAPP) Manufacturing instructions Computer aided manufacturing (CAM) Finished goods

Rapid Prototyping The ability to build product or part models quickly for form design, functional design, or production design A series of models are tested, revised, and discarded Models can be made of plastic, nylon, metal, or ceramics. Reduces design costs More designs can be considered  better designs New products can be introduced more quickly

Service Design Process Service concept purpose of a service; it defines target market and customer experience Service package mixture of physical items, sensual benefits, and psychological benefits Service specifications performance specifications design specifications delivery specifications See Table 5.2, page 210

Copyright 2006 John Wiley & Sons, Inc. Quality Function Deployment (QFD)  Translates voice of customer into technical design requirements  Displays requirements in matrix diagrams first matrix called “house of quality” first matrix called “house of quality” series of connected houses series of connected houses  Study pages 200 – 205, including Figures

Copyright 2006 John Wiley & Sons, Inc. Benefits of QFD  Promotes better understanding of customer demands  Promotes better understanding of design interactions  Involves manufacturing in design process  Breaks down barriers between functions and departments  Provides documentation of design process