Fast Concept Development for Products and Services Prof. Dr. Utz Dornberger HCMC, 2012

Methodology for products Step Guiding Question Tools 1 In which product and for which customer you want to innovate? Portfolio Analisis Customer Profile /Personas 2 In which part/element of the product you want to innovate Quality Function Deployment Product Clinic 3 How you want to innovate? Creativity Techniques Idea Evaluation and Selection 4 How is the concept of the new product? Kano Model Functional Analisis Target Costing

The concept of Product Clinic The concept of Product Clinic is based upon an analysis of own and competitive products and the utilization of the gained findings for innovations. Within the Product Clinic, finished products or well-elaborated prototypes will be compared among each other and with competitive solutions. In a small user group a comparative evaluation and practical test of the different products will be carried out. The teams of the Product Clinics are composed in a manner that the complete process chain from product determination and construction over service up to recycling will be covered.

Procedure of a Product Clinic Experts Competitor A Product new products Synthesis for a system optimum Identification of best-solutions on component-level and sub-function level Competitor B Products new processes Systematic analysis Competitor C Products new structures Competitor D Products new supplier Top clients

Summary - Product Clinic The Product Clinic can be seen as a concept for a institutionalized learning place, providing the following aspects: Analysis of products Synthesis of best-solutions of single characteristics and/or functions to new products Learning on the concrete products in a workshop environment Development of a new product design on the basis of competitor learning Increase of customer benefits through specific improvement measures for new products

What is QFD? QFD helps answering following questions: Quality function deployment (QFD) is a flexible and comprehensive technique for assuring quality and customer satisfaction, especially in the development of new products and services QFD helps answering following questions: What are the qualities that our customer expects? What functions must our product/service provide? In which way do we have to deploy our resources, so that we can provide our customers what they want?

Focus of QFD The focus of QFD remains on critical characteristics of products and services (both new and existent ones) Different viewpoints are taken independently into account: Costumers (Voice of the Costumer) Market information Inner organization Technological development needs Results are structured in graphs and matrices, which bring transparency and visibility to the development of future products and services This technique is also ideal for identifying differentiating competitive advantages, which are the pre-stage of every marketing strategy

QFD How does QFD work? Input Output Prioritized development targets Quality function deployment (QFD) translates a set of consumer requirements, market research and technical benchmarking data into an appropriate number of prioritized engineering targets to be met by a new product/service. Input Consumer requirements Output Market research Prioritized development targets QFD Technical benchmarking Internal discussion

QFD Process Client’s identification Client’s requirements Requirements’ prioritization Product Specifications Matching the client’s requirements with the service specifications Bench- marking Prioritization and goals of the new service characteristics to be developed 9

How can these technical attributes be granted? “House of quality” The “house of quality” links Customer requirements (What) Technical product specification (How) Target values (Why) Competitive Performance (How Much) How can these technical attributes be granted? Conflicts? What does the customer want/expect? Why are certain technical attributes necessary? How much technical attributes are necessary?

Methodology for service processes Step Guiding Question Tools 1 In which service process and for which customer you want to innovate? Portfolio Analisis Customer Profile /Personas 2 In which part/step of the service process you want to innovate Service Blueprinting Failure Mode and Effect Analsis 3 How you want to innovate? Creativity Techniques Idea Evaluation and Selection 4 How is the concept of the new service? Process Modelling & Simulation Resource Model

Process model Service Blueprinting It is used both in the planning and in the improvement procedures of services It allows to define the different contact points between the service provider and the client It allows to identify which process are visible for the client and which do not The process diagram of a service provision must be represented in a continuous way (“service production line”) Employees from all departments must be taken into account Caso de micro empresas el dueño conoce muz bien proceso de prestación del servicio

Structure: Service Blueprinting Process model Structure: Service Blueprinting Client Processes that are done by the client Interaction line Service Processes that are done by the service provider with the intervention of the client Visibility Line Processes that are done by the service provider, which are invisible to the client

Example Client Service Process model Example Client No Client calls the technician New contact with the client The End No Client describes the problem Machine working? Reparation desired by the client Yes No Client approves new appointment Client describes the problem Client at home? Yes Yes Service New appointment Technician arrives to new appointment Technician arrives to the clients Technician defines an appointment Problem Identification Reparation’s budget Possible to repair? No Technician describes the problem Technician checks the machine Technician repairs the machine Technician prepares invoice Si simplemente se hace la cita impide que el reparador vaya preparado Yes Preparation and order of the parts File

Service Quality Is a goal of 99.9% good enough? 1 hour of unsafe drinking water every month 2 unsafe plane landings per day at O’Hare Airport in Chicago 16,000 pieces of mail lost by the U.S. Post Office every hour.

Failure Mode and Effect Analysis - FMEA FMEA is a prevention technique ensuring that failures are unlikely to occur Identify potential or known failure modes Helps to identify the most critical and likely failures in a new or existing process Determine “Effects” of The Failure Mode Severity Rating Develop and Drive Action Plan Determine Process Functions Determine Failure Modes of Function Determine “Causes” of the Failure Mode Occurrence Rating Determine “Controls” Detection Rating Calculate & Assess Risk

Potential Failure Mode Potential Failure Effects The FMEA Worksheet Process Step/Input Potential Failure Mode Potential Failure Effects SEV Potential Causes OCC Current Controls DET RPN Actions Recommended Resp. What is the process step/ Input under investigation? In what ways does the key input go wrong? What is the impact on the key output variables (customer requirements) or internal requirements? How severe is the effect to the customer? What causes the key input to go wrong? How often does cause or failure mode occur? What are the existing controls that prevent either the cause or the failure mode? How well can you detect the cause/failure before next step?   What are the actions for reducing the RPN. Who is responsible for the recommended action?

FMEA Scoring - Severity Severity of Effect Rating Extreme May endanger machine or worker. Hazardous without warning 10 May endanger machine or worker. Hazardous with warning 9 High Major disruption to service process. Loss of primary function. 8 Reduced primary function performance. Service requires correction or major Variance. 7 Moderate Medium disruption of service process. Possible scrap. Loss of secondary function performance. Requires repair or Minor Variance. 6 Minor disruption of service process. Product must be repaired. Reduced secondary function performance. 5 Minor defect, product repaired or "Use-As-Is" disposition. 4 Low Fit & Finish item. Minor defect, may be reprocessed on-line. 3 Minor Nonconformance, may be reprocessed on-line. 2 None No effect 1

FMEA Scoring - Occurrence Failure Rate Capability Likelihood of Occurrence Rating (Cpk) Very High 1 in 2 < .33 10 Failure is almost inevitable 1 in 3 > .33 9 Process is not in statistical control. 1 in 8 > .51 8 High Similar processes have experienced problems. 1 in 20 > .67 7 1 in 80 > .83 6 Process is in statistical control but with isolated failures. Moderate Previous processes have experienced occasional 1 in 400 > 1.00 5 failures or out-of-control conditions. 1 in 2000 > 1.17 4 Process is in statistical control. 1 in 15k > 1.33 3 Low Process is in statistical control. Only isolated 1 in 150k > 1.50 2 failures associated with almost identical processes. Failure is unlikely. No known failures associated Remote 1 in 1.5M > 1.67 1 with almost identical processes.

FMEA Scoring - Detection Likelihood that control will detect failure Rating Very low No known control(s) available to detect failure mode. 10 Low Controls have a remote chance of detecting the failure. 9 8 Moderate Controls may detect the existence of a failure 7 6 5 High Controls have a good chance of detecting the existence of a failure 4 3 Very High The process automatically detects failure. Controls will almost certainly detect the existence of a failure 2 1

FMEA Scoring - RPN or Risk Priority Number Severity x Occurrence x Detection= RPN (Risk Priority Number)

International SEPT Program Office: Beethovenstrasse 15, D-04107 Leipzig Germany E-Mail: dornberger@uni-leipzig.de Web: www.sept.uni-leipzig.de