Product and Service Design Chapter 4 Product and Service Design

Sources of Ideas for Products and Services Internal Employees Marketing department R&D department External Customers (QFD) Competitors Suppliers

Reverse engineering is the dismantling and inspecting of a competitor’s product to discover product improvements.

Research & Development (R&D) Organized efforts to increase scientific knowledge or product innovation & may involve: Basic Research advances knowledge about a subject without near-term expectations of commercial applications. Applied Research achieves commercial applications. Development converts results of applied research into commercial applications.

Legal, Ethical, and Environmental Issues FDA, OSHA, IRS Product liability Uniform commercial code Ethical Releasing products with defects Environmental EPA

Product Design—Other Issues Product Life Cycles Standardization Benefits and disadvantages Key trade-off, Variety vs. volume Design for mass customizations Reliability Robust Design

Life Cycles of Products or Services Figure 4-2 Time Incubation Growth Maturity Saturation Decline Demand

Standardization: The Key Trade-off Volume Variety Flexibility Efficiency

Advantages of Standardization Fewer parts to deal with in inventory & manufacturing Reduced training costs and time More routine purchasing, handling, and inspection procedures

Advantages of Standardization (Cont’d) Orders fillable from inventory Opportunities for long production runs and automation Need for fewer parts justifies increased expenditures on perfecting designs and improving quality control procedures.

Disadvantages of Standardization Designs may be frozen with too many imperfections remaining. High cost of design changes increases resistance to improvements. Decreased variety results in less consumer appeal.

Mass Customization A strategy of producing standardized goods or services, but incorporating some degree degree of customization Implications Product implications—modular design Process implications—postponement Sales implications—internet

Reliability Reliability: The ability of a product, part, or system to perform its intended function under a prescribed set of conditions Failure: Situation in which a product, part, or system does not perform as intended

Improving Reliability Component design Production/assembly techniques Testing Redundancy/backup Preventive maintenance procedures User education System design

Robust Design Robust Design: Design that results in products or services that can function over a broad range of conditions Insensitive to environmental factors either in manufacturing or in use.

Designing for Manufacturing Concurrent engineering CAD Production requirements DFM, DFA Recycling Remanufacturing Component commonality

Differences Between Product and Service (Mfg vs. Services) Tangible – intangible Services cannot be inventoried Services created and delivered at the same time—customer is in the system Location and layout important to services Customers bring more variety Services are more labor intensive Services have low barrier to entry

Service Variability & Customer Influence Service Design Figure 4-3 High Moderate Low None Telephone Purchase Dept. Store Purchase Customized Clothing Internet Purchase Variability in Service Require-ments Degree of Contact with Customer

Continuum of Characteristics More like a manufacturing organization More like a service organization Physical, durable product Output can be inventoried Low customer contact Long response time Regional, national or International markets Large facilities Capital intensive Quality easily measured Intangible, perishable product Output cannot be inventoried High customer contact Short response time Local markets Small facilities Labor intensive Quality not easily measured

Quality Function Deployment Voice of the customer House of quality QFD: An approach that integrates the “voice of the customer” into the product and service development process.

The House of Quality Figure 4-5 Relationship Correlation matrix Design requirements Customer require- ments Competitive assessment Relationship Specifications or target values

House of Quality Example Customer Requirements Importance to Cust. Easy to close Stays open on a hill Easy to open Doesn’t leak in rain No road noise Importance weighting Engineering Characteristics Energy needed to close door Check force on level ground to open door Water resistance 10 6 9 2 3 7 5 X Correlation: Strong positive Positive Negative Strong negative * Competitive evaluation X = Us A = Comp. A B = Comp. B (5 is best) 1 2 3 4 5 AB X AB XAB A X B X A B Relationships: Strong = 9 Medium = 3 Small = 1 Target values Reduce energy level to 7.5 ft/lb Reduce force to 9 lb. to 7.5 ft/lb. current level Maintain Technical evaluation 4 1 A BA BXA Door seal resistance Accoust. Trans. Window