To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Chapter 3 Products and Services To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved.

Product Design Specifies materials Specifies materials Determines dimensions & tolerances Determines dimensions & tolerances Defines appearance Defines appearance Sets performance standards Sets performance standards

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Service Design Specifies what the customer is to experience Specifies what the customer is to experience Physical items Physical items Sensual benefits Sensual benefits Psychological benefits Psychological benefits

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. An Effective Design Process Matches product/service characteristics with customer needs Matches product/service characteristics with customer needs Meets customer requirements in simplest, most cost-effective manner Meets customer requirements in simplest, most cost-effective manner Reduces time to market Reduces time to market Minimizes revisions Minimizes revisions

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Stages in the Design Process Idea Generation — Product Concept Idea Generation — Product Concept Feasibility Study — Performance Specifications Feasibility Study — Performance Specifications Preliminary Design — Prototype Preliminary Design — Prototype Final Design — Final Design Specifications Final Design — Final Design Specifications Process Planning — Manufacturing Specifications Process Planning — Manufacturing Specifications

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. The Design Process

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. The Design Process Pilot run and final tests New product or service launch Final design & process plans Idea generation Feasibility study Product or service concept Performance specifications Functional design Form design Production design Revising and testing prototypes Design specifications Manufacturing or delivery specifications Suppliers R&D Customers MarketingCompetitors Figure 3.1

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Idea Generation Suppliers, distributors, salespersons Suppliers, distributors, salespersons Trade journals and other published material Trade journals and other published material Warranty claims, customer complaints, failures Warranty claims, customer complaints, failures Customer surveys, focus groups, interviews Customer surveys, focus groups, interviews Field testing, trial users Field testing, trial users Research and development Research and development

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. More Idea Generators Perceptual Maps Perceptual Maps Visual comparison of customer perceptions Visual comparison of customer perceptions Benchmarking Benchmarking Comparing product/service against best-in-class Comparing product/service against best-in-class Reverse engineering Reverse engineering Dismantling competitor’s product to improve your own product Dismantling competitor’s product to improve your own product

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Perceptual Map of Breakfast Cereals

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Perceptual Map of Breakfast Cereals HIGH NUTRITION LOW NUTRITION GOOD TASTE BAD TASTE Figure 3.2

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Perceptual Map of Breakfast Cereals HIGH NUTRITION LOW NUTRITION GOOD TASTE Cocoa Puffs BAD TASTE RiceKrispies Wheaties Cheerios ShreddedWheat Figure 3.2

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Feasibility Study Market Analysis Market Analysis Economic Analysis Economic Analysis Technical / Strategic Analysis Technical / Strategic Analysis Performance Specifications Performance Specifications

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Preliminary Design Create form & functional design Create form & functional design Build prototype Build prototype Test prototype Test prototype Revise prototype Revise prototype Retest Retest

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Form Design (How the Product Looks) Cellular Personal Safety Alarm Personal Computer

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Functional Design (How the Product Performs) Reliability Reliability Probability product performs intended function for specified length of time Probability product performs intended function for specified length of time Maintainability Maintainability Ease and/or cost or maintaining/repairing product Ease and/or cost or maintaining/repairing product

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Computing Reliability

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Computing Reliability x 0.90 = 0.81 Components in series

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Computing Reliability x 0.90 = (1-0.95) = Components in series Components in parallel R2R2R2R2 R1R1R1R1

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. System Availability System Availability, SA = MTBF MTBF + MTTR

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. System Availability System Availability, SA = MTBF MTBF + MTTR PROVIDERMTBF (HR)MTTR (HR) A604.0 B362.0 C241.0 Example 3.1

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. System Availability System Availability, SA = MTBF MTBF + MTTR PROVIDERMTBF (HR)MTTR (HR) A604.0 B362.0 C241.0 SA A = 60 / (60 + 4) =.9375 or 93.75% SA B = 36 / (36 + 2) =.9726 or 97.26% SA C = 24 / (24 + 1) =.9473 or 94.73% Example 3.1

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. System Availability System Availability, SA = MTBF MTBF + MTTR PROVIDERMTBF (HR)MTTR (HR) A604.0 B362.0 C241.0 SA A = 60 / (60 + 4) =.9375 or 93.75% SA B = 36 / (36 + 2) =.9726 or 97.26% SA C = 24 / (24 + 1) =.9473 or 94.73% Example 3.1

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Production Design Part of the preliminary design phase Part of the preliminary design phase Simplification Simplification Standardization Standardization Modularity Modularity

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Design Simplification (a) The original design Assembly using common fasteners Figure 3.3

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Design Simplification (a) The original design Assembly using common fasteners (b) Revised design One-piece base & elimination of fasteners Figure 3.3

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Design Simplification (a) The original design Assembly using common fasteners (b) Revised design One-piece base & elimination of fasteners (c) Final design Design for push-and-snap assembly Figure 3.3

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Final Design & Process Plans Produce detailed drawings & specifications Produce detailed drawings & specifications Create workable instructions for manufacture Create workable instructions for manufacture Select tooling & equipment Select tooling & equipment Prepare job descriptions Prepare job descriptions Determine operation & assembly order Determine operation & assembly order Program automated machines Program automated machines

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Improving the Design Process Design teams Design teams Concurrent design Concurrent design Design for manufacture & assembly Design for manufacture & assembly Design to prevent failures and ensure value Design to prevent failures and ensure value Design for environment Design for environment Measure design quality Measure design quality Utilize quality function deployment Utilize quality function deployment Design for robustness Design for robustness Engage in collaborative design Engage in collaborative design

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Figure 3.4Breaking Down Barriers to Effective Design

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Design Teams Marketing, manufacturing, engineering Marketing, manufacturing, engineering Suppliers, dealers, customers Suppliers, dealers, customers Lawyers, accountants, insurance companies Lawyers, accountants, insurance companies

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Concurrent Design Improves quality of early design decisions Improves quality of early design decisions Decentralized - suppliers complete detailed design Decentralized - suppliers complete detailed design Incorporates production process Incorporates production process Often uses a price-minus system Often uses a price-minus system Scheduling and management can be complex as tasks are done in parallel Scheduling and management can be complex as tasks are done in parallel

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. General Performance Specifications Instructions to supplier: Instructions to supplier: “Design a set of brakes that can stop a 2200 pound car from 60 miles per hour in 200 feet ten times in succession without fading. The brakes should fit into a space 6” x 8” x 10” at the end of each axle and be delivered to the assembly plant for $40 a set.” “Design a set of brakes that can stop a 2200 pound car from 60 miles per hour in 200 feet ten times in succession without fading. The brakes should fit into a space 6” x 8” x 10” at the end of each axle and be delivered to the assembly plant for $40 a set.” Supplier submits design specifications and prepares a prototype for testing Supplier submits design specifications and prepares a prototype for testing

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Design for Manufacture and Assembly Design a product for easy & economical production Design a product for easy & economical production Incorporate production design early in the design phase Incorporate production design early in the design phase Improves quality and reduces costs Improves quality and reduces costs Shortens time to design and manufacture Shortens time to design and manufacture

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. DFM Guidelines 1.Minimize the number of parts, tools, fasteners, and assemblies 2.Use standard parts and repeatable processes 3.Modular design 4.Design for ease of assembly, minimal handling 5.Allow for efficient testing and parts replacement

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Design for Assembly (DFA) Procedure for reducing number of parts Procedure for reducing number of parts Evaluate methods for assembly Evaluate methods for assembly Determine assembly sequence Determine assembly sequence

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Design Review Failure Mode and Effects Analysis (FMEA) Failure Mode and Effects Analysis (FMEA) A systematic approach for analyzing causes & effects of failures A systematic approach for analyzing causes & effects of failures Prioritizes failures Prioritizes failures Attempts to eliminate causes Attempts to eliminate causes Fault Tree Analysis (FTA) Fault Tree Analysis (FTA) Study interrelationship between failures Study interrelationship between failures

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Figure 3.5Fault Tree for Potato Chips

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. FMEA for Potato Chips Stale Low moisture content, expired shelf life, poor packaging Tastes bad, won’t crunch, thrown out, lost sales Add m cure longer, better package seal, shorter shelf life Broken Too thin, too brittle, rough handling, rough use, poor packaging Can’t dip, poor display, injures mouth, chocking, perceived as old, lost sales Change recipe, change process, change packaging Too Salty Outdated receipt, process not in control, uneven distribution of salt Eat less, drink more, health hazard, lost sales Experiment with recipe, experiment with process, introduce low salt version FAILURE MODECAUSE OF FAILUREEFFECT OF FAILURECORRECTIVE ACTION Table 3.1

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Value Analysis (Value Engineering) Ratio of value / cost Ratio of value / cost Assessment of value : Assessment of value : 1. Can we do without it? 2. Does it do more than is required? 3. Does it cost more than it is worth? 4. Can something else do a better job 5. Can it be made by less costly method, tools, material? 6. Can it be made cheaper, better or faster by someone else?

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Design for Environment Design from recycled material Design from recycled material Use materials which can be recycled Use materials which can be recycled Design for ease of repair Design for ease of repair Minimize packaging Minimize packaging Minimize material & energy used during manufacture, consumption & disposal Minimize material & energy used during manufacture, consumption & disposal

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Figure 3.6Design for Environment

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Metrics for Design Quality 1.Percent of revenue from new products or services 2.Percent of products capturing 50% or more of the market 3.Percent of process initiatives yielding a 50% or more improvement in effectiveness 4.Percent of suppliers engaged in collaborative design

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Metrics for Design Quality 5.Percent of parts that can be recycled 6.Percent of parts used in multiple products 7.Average number of components per product 8.Percent of parts with no engineering change orders 9.Things gone wrong

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Quality Function Deployment (QFD) Translates the “voice of the customer” into technical design requirements Translates the “voice of the customer” into technical design requirements Displays requirements in matrix diagrams 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

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. House of Quality

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. House of Quality Trade-off matrix Design characteristics Customer requirements Target values Relationship matrix Competitive assessment Importance Figure 3.7

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. House of Quality Figure 3.8 Irons well Easy and safe to use Competitive Assessment Customer Requirements Customer Requirements12345 X Presses quickly9BAX X Removes wrinkles8ABX X Doesn’t stick to fabric6XBA X Provides enough steam8ABX X Doesn’t spot fabric6XAB X Doesn’t scorch fabric9AXB X Heats quickly6XBA X Automatic shut-off3ABX X Quick cool-down3XAB X Doesn’t break when dropped5ABX X Doesn’t burn when touched5ABX X Not too heavy8XAB

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. House of Quality Figure 3.9 Energy needed to press Weight of iron Size of soleplate Thickness of soleplate Material used in soleplate Number of holes Size of holes Flow of water from holes Time required to reach 450º F Time to go from 450º to 100º Protective cover for soleplate Automatic shutoff Customer Requirements Presses quickly Removes wrinkles+++++ Doesn’t stick to fabric-++++ Provides enough steam++++ Doesn’t spot fabric+--- Doesn’t scorch fabric+++-+ Heats quickly--+- Automatic shut-off+ Quick cool-down--++ Doesn’t break when dropped++++ Doesn’t burn when touched++++ Not too heavy Irons well Easy and safe to use

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. House of Quality Figure 3.10 Energy needed to press Weight of iron Size of soleplate Thickness of soleplate Material used in soleplate Number of holes Size of holes Flow of water from holes Time required to reach 450º Time to go from 450º to 100º Protective cover for soleplate Automatic shutoff

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. House of Quality Figure 3.11 Energy needed to press Weight of iron Size of soleplate Thickness of soleplate Material used in soleplate Number of holes Size of holes Flow of water from holes Time required to reach 450º Time to go from 450º to 100º Protective cover for soleplate Automatic shutoff Units of measure ft-lblbin.cmtyeammoz/ssecsecY/NY/N Iron A 31.48x42SS NY Iron B 41.28x41MG NY Our Iron (X) 21.79x54T NY Estimated impact Estimated cost Targets 1.28x53SS Design changes ******* Objective measures

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. House of Quality Figure 3.12

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Series of QFD Houses

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Series of QFD Houses Customer requirements House of quality Product characteristics A-1 Product characteristics Parts deployment Part characteristics A-2 Part characteristics Process planning Process characteristics A-3 Process characteristics Operating requirements Operations A-4 Figure 3.13

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Benefits of QFD Promotes better understanding of customer demands Promotes better understanding of customer demands Promotes better understanding of design interactions Promotes better understanding of design interactions Involves manufacturing in the design process Involves manufacturing in the design process Breaks down barriers between functions and departments Breaks down barriers between functions and departments Provides documentation of the design process Provides documentation of the design process

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Design for Robustness Product can fail due to poor design quality Product can fail due to poor design quality Products subjected to many conditions Products subjected to many conditions Robust design studies Robust design studies Controllable factors - under designer’s control Controllable factors - under designer’s control Uncontrollable factors - from user or environment Uncontrollable factors - from user or environment Designs products for consistent performance Designs products for consistent performance

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Consistency is Important Consistent errors are easier to correct than random errors Consistent errors are easier to correct than random errors Parts within tolerances may yield assemblies which aren’t Parts within tolerances may yield assemblies which aren’t Consumers prefer product characteristics near their ideal values Consumers prefer product characteristics near their ideal values

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Technology in Design CAD - Computer Aided Design CAD - Computer Aided Design Assists in creating and modifying designs Assists in creating and modifying designs CAE - Computer Aided Engineering CAE - Computer Aided Engineering Tests & analyzes designs on computer screen Tests & analyzes designs on computer screen CAD/CAM - Design & Manufacturing CAD/CAM - Design & Manufacturing Automatically converts CAD data into processing instructions for computer controlled equipment Automatically converts CAD data into processing instructions for computer controlled equipment

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Benefits of CAD Produces better designs faster Produces better designs faster Builds database of designs and creates documentation to support them Builds database of designs and creates documentation to support them Shortens time to market Shortens time to market Reduces time to manufacture Reduces time to manufacture Enlarges design possibilities Enlarges design possibilities Enhances communication and promotes innovation in design teams Enhances communication and promotes innovation in design teams

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Collaborative Product Commerce Share and work on design files in real time from physically separate locations, typically over the internet Share and work on design files in real time from physically separate locations, typically over the internet Accelerates product development Accelerates product development Helps resolve product launch issues Helps resolve product launch issues Improves the quality of design Improves the quality of design

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Characteristics of Services 1.Services are intangible 2.Service output is variable 3.Service have higher customer contact 4.Services are perishable 5.Service inseparable from delivery 6.Tend to be decentralized and dispersed 7.Consumed more often than products 8.Services can be easily emulated

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. FedEx A Well-Designed Service System is Consistent with firm’s strategic focus Consistent with firm’s strategic focus User friendly User friendly Robust Robust Easy to sustain Easy to sustain Effectively linked between front & back office Effectively linked between front & back office Cost effective Cost effective Visible to customer Visible to customer

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. The Service Design Process

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. The Service Design Process Figure 3.14 Performance Specifications Service Delivery Specifications Physical items Sensual benefits Psychological benefits Design Specifications Service Provider Customer Customer requirements Customer expectations ActivitiesFacility Provider skills Cost and time estimates ScheduleDeliverablesLocation Service Concept Service Package Desired service experience Targeted customer

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Figure 3.15 Blueprint for an Installment Lending Operation Loan application BranchOfficer Pay book Line of visibility Deny 1 day 2 days 3 days Confirm Fail pointCustomer waitEmployee decision F F F F F F W 30 min. – 1 hr. Decline Receive payment Final payment Notify customer Close account Confirm Delinquent Issue check Print payment book Accept Verify income data Initial screening Employer Bank accounts Credit check Credit bureau Data base records Branch records Accounting Verify payor WW

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Design for High-Contact Services DESIGN DECISIONHIGH-CONTACT SERVICELOW-CONTACT SERVICE Facility location Convenient to customer Near labor or transportation Facility layout Must look presentable, accommodate customer needs, and facilitate interaction with customer Designed for efficiency Quality control More variable since customer is involved in process; customer expectations and perceptions of quality may differ; customer present when defects occur Measured against established standards; testing and rework possible to correct defects Capacity Excess capacity required to handle peaks in demand Planned for average demand Table 3.2

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Design for High-Contact Services DESIGN DECISIONHIGH-CONTACT SERVICELOW-CONTACT SERVICE Worker skills Must be able to interact well with customers and use judgment in decision making Technical skills Scheduling Must accommodate customer schedule Customer concerned only with completion date Service process Mostly front-room activities; service may change during delivery in response to customer Mostly back-room activities; planned and executed with minimal interference Service package Varies with customer; includes environment as well as actual service Fixed, less extensive Table 3.2