McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. 4 Product and Service Design

4-2  Major factors in design strategy  Cost  Quality  Time-to-market  Customer satisfaction  Competitive advantage Product and Service Design Product and service design – or redesign – should be closely tied to an organization’s strategy

4-3 1.Translate customer wants and needs into product and service requirements 2.Refine existing products and services 3.Develop new products and services 4.Formulate quality goals 5.Formulate cost targets 6.Construct and test prototypes 7.Document specifications Product or Service Design Activities

4-4 Reasons for Product or Service Design  Economic  Social and demographic  Political, liability, or legal  Competitive  Cost or availability  Technological

4-5 Objectives of Product and Service Design  Main focus  Customer satisfaction  Understand what the customer wants  Secondary focus  Function of product/service  Cost/profit  Quality  Appearance  Ease of production/assembly  Ease of maintenance/service

4-6  Taking into account the capabilities of the organization in designing goods and services.  Failure to take this into account can:  Reduce productivity  Reduce quality  Increase costs Designing For Operations

4-7  Legal  FDA, OSHA, IRS  Product liability  Uniform commercial code  Ethical  Releasing products with defects  Environmental  EPA Legal, Ethical, and Environmental Issues

4-8 Regulations & Legal Considerations  Product Liability - A manufacturer is liable for any injuries or damages caused by a faulty product.  Uniform Commercial Code - Products carry an implication of merchantability and fitness.

4-9 Designers Adhere to Guidelines  Produce designs that are consistant with the goals of the company  Give customers the value they expect  Make health and safety a primary concern  Consider potential harm to the environment

4-10 Other Issues in Product and Service Design  Product/service life cycles  How much standardization  Mass customization  Product/service reliability  Robust design  Degree of newness  Cultural differences

4-11 Life Cycles of Products or Services Time Introduction Growth Maturity Saturation Decline Deman d Figure 4.1

4-12 Standardization  Standardization  Extent to which there is an absence of variety in a product, service or process  Standardized products are immediately available to customers

4-13 Advantages of Standardization  Fewer parts to deal with in inventory & manufacturing  Design costs are generally lower  Reduced training costs and time  More routine purchasing, handling, and inspection procedures  Quality is more consistent

4-14 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.

4-15 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.

4-16 Mass customization:  A strategy of producing standardized goods or services, but incorporating some degree degree of customization  Delayed differentiation  Modular design Mass Customization

4-17 Delayed differentiation is a postponement tactic  Producing but not quite completing a product or service until customer preferences or specifications are known Delayed Differentiation

4-18 Modular Design Modular design is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged. It allows:  easier diagnosis and remedy of failures  easier repair and replacement  simplification of manufacturing and assembly

4-19 Product Design  Product Life Cycles  Robust Design  Concurrent Engineering  Computer-Aided Design  Modular Design

4-20 Robust Design: Design that results in products or services that can function over a broad range of conditions Robust Design

4-21 Taguchi Approach Robust Design  Design a robust product  Insensitive to environmental factors either in manufacturing or in use.  Central feature is Parameter Design.  Determines:  factors that are controllable and those not controllable  their optimal levels relative to major product advances

4-22 Cultural Differences  Multinational companies must take into account cultural differences related to the product design.  Notable failures:  McDonalds' in India  Coffee in UK

4-23 Global Product Design  Virtual teams  Uses combined efforts of a team of designers working in different countries  Provides a range of comparative advantages over traditional teams such as:  Engaging the best human resources around the world  Possibly operating on a 24-hr basis  Global customer needs assessment  Global design can increase marketability

4-24 Phases in Product Development Process 1.Idea generation 2.Feasibility analysis 3.Product specifications 4.Process specifications 5.Prototype development 6.Design review 7.Market test 8.Product introduction 9.Follow-up evaluation

4-25 Idea Generation Ideas Competitor based Supply chain based Research based

4-26 Reverse Engineering Reverse engineering is the dismantling and inspecting of a competitor’s product to discover product improvements.

4-27 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.

4-28 Manufacturability  Manufacturability is the ease of fabrication and/or assembly which is important for:  Cost  Productivity  Quality

4-29 Concurrent Engineering Concurrent engineering is the bringing together of engineering design and manufacturing personnel early in the design phase.

4-30 Computer-Aided Design  Computer-Aided Design (CAD) is product design using computer graphics.  increases productivity of designers, 3 to 10 times  creates a database for manufacturing information on product specifications  provides possibility of engineering and cost analysis on proposed designs

4-31  Recycling: recovering materials for future use  Recycling reasons  Cost savings  Environment concerns  Environment regulations Recycling

McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. 4S Reliability

4-33 Learning Objectives  Define reliability  Perform reliability computations  Explain the purpose of redundancy in a system

4-34 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  Normal operating conditions: The set of conditions under which an item’s reliability is specified

4-35  Probability that the product or system will:  Function when activated  Function for a given length of time  Independent events  Events whose occurrence or nonoccurrence do not influence each other  Redundancy  The use of backup components to increase reliability Reliability is a Probability

4-36 Rule Lamp 1Lamp 2.90 x.80 =.72

4-37 Rule (1-.90)*.80 =.98 Lamp 1 Lamp 2 (backup)

4-38 Rule [(1-.90)*(1-.80)*(1-.70)] = – P(all fail) Lamp 1 Lamp 2 (backup for Lamp1) Lamp 3 (backup for Lamp 2)

4-39 Example S-1 Reliability Determine the reliability of the system shown

4-40 Example S-1 Solution The system can be reduced to a series of three components (1-.90) (1-.95).98 x.99 x.996 =.966

4-41 Failure Rate Figure 4S.1 Few (random) failures Infant mortality Failures due to wear-out Time, T Failure Rate

4-42 Exponential Distribution Reliability = e -T/MTBF 1- e -T/MTBF TTime Figure 4S.2

4-43 Normal Distribution Reliability 0z Figure 4S.3

4-44 Availability  The fraction of time a piece of equipment is expected to be available for operation MTBF = mean time between failures MTR = mean time to repair

4-45 Improving Reliability  Component design  Production/assembly techniques  Testing  Redundancy/backups  Preventive maintenance procedures  User education  System design