Copyright 2006 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga Products and Services Operations Management - 5 th Edition Chapter 5 Roberta Russell & Bernard W. Taylor, III

Copyright 2006 John Wiley & Sons, Inc.5-2 Lecture Outline   Design Process   Reducing Time-to-Market   Improving Quality of Design   Special Considerations in Service Design

Copyright 2006 John Wiley & Sons, Inc.5-3 Design Process  Effective design can provide a competitive edge matches product or service characteristics with customer requirements matches product or service characteristics with customer requirements ensures that customer requirements are met in the simplest and least costly manner ensures that customer requirements are met in the simplest and least costly manner reduces time required to design a new product or service reduces time required to design a new product or service minimizes revisions necessary to make a design workable minimizes revisions necessary to make a design workable

Copyright 2006 John Wiley & Sons, Inc.5-4 Design Process (cont.)   Product design defines appearance of product sets standards for performance specifies which materials are to be used determines dimensions and tolerances   Service design specifies what physical items, sensual benefits, and psychological benefits customer is to receive from service defines environment in which service will take place

Copyright 2006 John Wiley & Sons, Inc.5-5 Design Process (cont.) 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

Copyright 2006 John Wiley & Sons, Inc.5-6 Idea Generation Sources   Company’s own R&D department   Customer complaints or suggestions   Marketing research   Suppliers   Salespersons in the field   Factory workers   New technological developments   Competitors

Copyright 2006 John Wiley & Sons, Inc.5-7  Perceptual Maps  Visual comparison of customer perceptions  Benchmarking  Comparing product/service against best-in-class  Reverse engineering  Dismantling competitor’s product to improve your own product Idea Generation Sources (cont.)

Copyright 2006 John Wiley & Sons, Inc.5-8 Perceptual Map of Breakfast Cereals RiceKrispies Wheaties Cheerios ShreddedWheat HIGH NUTRITION LOW NUTRITION GOOD TASTE BAD TASTE Cocoa Puffs RiceKrispies Wheaties Cheerios ShreddedWheat

Copyright 2006 John Wiley & Sons, Inc.5-9 Feasibility Study   Market analysis   Economic analysis   Technical/strategic analysis   Performance specifications

Copyright 2006 John Wiley & Sons, Inc.5-10 Rapid Prototyping  Build a prototype form design form design functional design functional design production design production design  Test prototype  Revise design  Retest

Copyright 2006 John Wiley & Sons, Inc.5-11 Form and Functional Design  Form Design how product will look? how product will look?  Functional Design reliability maintainability usability

Copyright 2006 John Wiley & Sons, Inc.5-12 Computing Reliability x 0.90 = 0.81 Components in series

Copyright 2006 John Wiley & Sons, Inc.5-13 Computing Reliability (1-0.95) = Components in parallel R2R2R2R2 R1R1R1R1

Copyright 2006 John Wiley & Sons, Inc.5-14 System Reliability (1-0.92)(0.90)= x 0.99 x 0.98 = 0.951

Copyright 2006 John Wiley & Sons, Inc.5-15 Reliability Example  You work in a hospital as an administrator of the lab (blood tests, etc.). Other departments have been recently complaining that lab results and service is unreliable. You decide to determine the reliability of your “system”.

Copyright 2006 John Wiley & Sons, Inc.5-16 Reliability Example, cont’d. C B AD CBAD  A = 0.99  B = 0.95  C = 0.97  D = 0.99

Copyright 2006 John Wiley & Sons, Inc.5-17 SA = MTBF MTBF + MTTR System Availability (SA) where: MTBF = mean time between failures MTTR = mean time to repair

Copyright 2006 John Wiley & Sons, Inc.5-18 System Availability (cont.) 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%

Copyright 2006 John Wiley & Sons, Inc.5-19 System Availability Example  The hospital wants to explore changing its paging service. You have three different vendors to choose from. Each guarantees a maximum number of failures per day and a maximum time to regain service once a failure occurs. Which vendor should you choose and why?

Copyright 2006 John Wiley & Sons, Inc.5-20 SA Example, cont’d. PROVIDER# of FailuresMTTR (MIN) Enera122.5 Verizon103.0 Sprint83.5

Copyright 2006 John Wiley & Sons, Inc.5-21 Usability  Ease of use of a product or service ease of learning ease of learning ease of use ease of use ease of remembering how to use ease of remembering how to use frequency and severity of errors frequency and severity of errors user satisfaction with experience user satisfaction with experience

Copyright 2006 John Wiley & Sons, Inc.5-22  Simplification reducing number of parts, assemblies, or options in a product reducing number of parts, assemblies, or options in a product  Standardization using commonly available and interchangeable parts using commonly available and interchangeable parts  Modularity combining standardized building blocks, or modules, to create unique finished products combining standardized building blocks, or modules, to create unique finished products Production Design

Copyright 2006 John Wiley & Sons, Inc.5-23 Design Simplification (b) Revised design One-piece base & elimination of fasteners (c) Final design Design for push-and-snap assembly (a) Original design Assembly using common fasteners

Copyright 2006 John Wiley & Sons, Inc.5-24 Final Design and Process Plans  Final design detailed drawings and specifications for new product or service detailed drawings and specifications for new product or service  Process plans workable instructions workable instructions necessary equipment and tooling necessary equipment and tooling component sourcing recommendations component sourcing recommendations job descriptions and procedures job descriptions and procedures computer programs for automated machines computer programs for automated machines

Copyright 2006 John Wiley & Sons, Inc.5-25 Reducing Time-to- Market  Establish multifunctional design teams  Make design decisions concurrently rather than sequentially  Design for manufacture and assembly  Use technology in the design process  Engage in collaborative design

Copyright 2006 John Wiley & Sons, Inc.5-26 Design Team

Copyright 2006 John Wiley & Sons, Inc.5-27 Concurrent Design  A new approach to design that involves simultaneous design of products and processes by design teams  Improves quality of early design decisions  Involves suppliers  Incorporates production process  Uses a price-minus system  Scheduling and management can be complex as tasks are done in parallel

Copyright 2006 John Wiley & Sons, Inc.5-28 Technology in the Design Process  Computer Aided Design (CAD) assists in creation, modification, and analysis of a design assists in creation, modification, and analysis of a design includes includes computer-aided engineering (CAE) computer-aided engineering (CAE)  tests and analyzes designs on computer screen computer-aided manufacturing (CAM) computer-aided manufacturing (CAM)  ultimate design-to-manufacture connection

Copyright 2006 John Wiley & Sons, Inc.5-29 Collaborative Design   A software system for collaborative design and development among trading partners   Follows life cycle of the product   Accelerates product development, helps to resolve product launch issues, and improves quality of the design   Designers can conduct virtual review sessions test “what if” scenarios assign and track design issues communicate with multiple tiers of suppliers create, store, and manage project documents

Copyright 2006 John Wiley & Sons, Inc.5-30 Improving Quality of Design  Review designs to prevent failures and ensure value  Design for environment  Measure design quality  Use quality function deployment  Design for robustness

Copyright 2006 John Wiley & Sons, Inc.5-31 Design for Environment

Copyright 2006 John Wiley & Sons, Inc.5-32 Design for Robustness  Robust product designed to withstand variations in environmental and operating conditions   Robust design yields a product or service designed to withstand variations   Controllable factors design parameters such as material used, dimensions, and form of processing   Uncontrollable factors user’s control (length of use, maintenance, settings)

Copyright 2006 John Wiley & Sons, Inc.5-33 Tolerance and Consistency  Tolerance allowable ranges of variation in the dimension of a part allowable ranges of variation in the dimension of a part  Consistency consistent errors are easier to correct than random errors consistent errors are easier to correct than random errors parts within tolerances may yield parts within tolerances may yield assemblies that are not within limits consumers prefer product characteristics near their ideal values consumers prefer product characteristics near their ideal values

Copyright 2006 John Wiley & Sons, Inc.5-34 Special Considerations in Service Design  Services are intangible  Service output is variable  Service have higher customer contact  Services are perishable  Service inseparable from delivery  Services tend to be decentralized and dispersed  Services are consumed more often than products  Services can be easily emulated

Copyright 2006 John Wiley & Sons, Inc.5-35 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 Service Design Process

Copyright 2006 John Wiley & Sons, Inc.5-36   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 Service Design Process (cont.)