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

Design of Products

As Engineering designed it. © T/Maker Co. As Operations made it. © T/Maker Co. As Marketing interpreted it. © T/Maker Co. As the customer wanted it. © T/Maker Co. Humor in Product Design

 Need-satisfying offering of an organization Example  P&G does not sell laundry detergent  P&G sells the benefit of clean clothes  Customers buy satisfaction, not parts  May be a good or a service What is a Product?

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

 Translate customer wants and needs into product and service requirements  Refine existing products and services  Develop new products and services  Formulate quality goals  Formulate cost targets  Construct and test prototypes  Document specifications Product or Service Design Activities

Reasons for Product and Service Design or Redesign The main forces that initiate design or redesign are market opportunities and threats The factors that give rise to opportunities and threats can be changes in:  economic factors  social and demographic factors  political, liability or legal factors  competitive factors  quality  cost or availability  technological factors

Product Strategy Options  Product differentiation  Low cost  Rapid response (product life cycles are becoming shorter, therefore faster developers of new products gain on slower developers and obtain a competitive advantage)

The Key Questions  Is there demand for it?  Can we do it? (manufacturability serviceability)  What level of quality is appropriate?  Does it make sense from an economic standpoint?

Manufacturability, Serviceability Manufacturability is the capability of an organization to produce an item at an acceptable profit Servicebility is the capability of an organization to provide a service at an acceptable cost or profit

Legal and Ethical Considerations  Product liability is the responsibility of a manufacturer for any injuries or damages caused by a faulty produt because of poor workmanship or design  Tradeoff deçisions may involve ethical considerations.

Design Guidelines  Produce designs that are consistent with the goals of the organizaton  Give customers the value they expect  Make health and safety a primary concern

Sustainability Sustainability: using resources in ways that do not harm ecological systems that support both current and future human existence Product and service design is a focal point in the quest for sustainability. Key aspects include:  Life cycle assessment  The three R’s  Reduction of costs and materials used  Reuse of parts of returned products  Recycling

Life Cycle Assessment Life cycle assessment, also known as life cycle analysis, is the assesment of the environmental impact of a product or service throughout its useful life. The goal is the choose products and services that have the least environmental impact while still taking into accoun8t economic considerations.

Reduce: Value Analysis/ Value Engineering (VA/VE) (1 of 4) Reducing the use of materials through VA/VE Value analysis refers to an examination of the function of parts and materials in an effort to reduce the cost and/or improve the performance of a product. Achieve equivalent or better performance at a lower cost while maintaining all functional requirements defined by the customer Value analysis focuses on design improvements during production Ratio of value / cost

Value Analysis/Value Engineering (2 of 4) Typical questions that would be asked as part of the analysis (to assess value) include : 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? 7. Does the item have any design features that are not necessary? 8. Can two or more parts be combined into one? 9. Are there nonstandard parts that can be eliminated

Benefits of VA/VE (3 of 4) Benefits:  simplified products  additional standardization of products  improved functional aspects of product  improved job design and job safety  improved maintainability of the product  robust design  reduction in cost

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Cost Reduction of a Bracket via Value Engineering (4 of 4)

Reuse: Remanufacturing Reuse: Refurbishing used products by replacing worn-out or defective components and then reselling them Remanufacturing: Refurbishing used products by replacing worn-out or defective components and reselling the products.

Design for Disassembly Designing products so that they can be more easily taken apart. Includes fewer parts and less material and using snap-fits where possible instead of screws or nuts and bolts

Recycle Recycling: Reclaiming parts of unusable products for recycling (recovering materials for future use) Reasons for recycling:  Cost savings  Environmental concerns  Environmental regulations

Design for recycling Design for recycling Design for Recycling: refers to product design that takes into account the ability to disassemble a used product to recover the recyclable parts, ie. Design that facilitates the recovery of materials and components in used produts for reuse

Design for Environment Design safe and environmentally sound (eg. recyclable) products Design from recycled material Use materials which can be recycled Design for ease of repair Minimize packaging Minimize material & energy used during manufacture, consumption & disposal

“Green Manufacturing” Make products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less material

Benefits of Environmentally Friendly Designs Benefits –Safe and environmentally sound products –Minimum raw material and energy waste –Product differentiation –Environmental liability reduction –Cost-effective compliance with environmental regulations –Recognition as good corporate citizen

Design for Environment

Product Life Cycle, Sales, Cost, and Profit Sales, Cost & Profit. IntroductionMaturityDeclineGrowth Cost of Development & Manufacture Sales Revenue Time Cash flow Loss Profit

Product Life Cycle Introduction  Fine tuning  research  product design and development  process modification and enhancement  supplier development  Short production runs  High production costs  Limited models

Product Life Cycle Growth  Product design begins to stabilize  Effective forecasting of capacity requirements becomes necessary  Adding or enhancing capacity may be necessary

Product Life Cycle Maturity  Competitors now established  High volume, innovative production may be needed  Improved cost control, reduction in options, paring down of product line  Increasing stability of process

Product Life Cycle Decline  Overcapacity  Unless product makes a special contribution, must plan to terminate offering

Products in Various Stages of Life Cycle Growth Decline Time Sales Flat- screen monitors CD-ROM Internet Jet Ski, fax machines Boeing ½ Floppy disks Introduction Maturity

Product-by-Value Analysis  Lists products in descending order of their individual dollar contribution to the firm.  Helps management evaluate alternative strategies.

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Product Development Continuum External Development Strategies Alliances Joint Ventures Purchase Technology or Expertise by Acquiring the Developer Internal Development Strategies Migrations of Existing Products Enhancement to Existing Products New Internally Developed Products Internal  Cost of Product Development  Shared Lengthy  Speed of Product Development  Rapid and/or Existing High  Risk of Product Development  Shared

Degree of Newness of a Product/Service 1.Modification of an existing product/service 2.Expansion of an existing product/service 3.Clone of a competitor’s product/service 4.New product/service

Degree of Design Change Type of Design Change Newness of the organization Newness to the market ModificationLow ExpansionLow CloneHighLow NewHigh

Percent of Sales From New Product

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

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

Trends in Product & Service Design (1 of 2) Increased emphasis on or attention to:  Customer satisfaction (by translating customer wants and needs into product and service requirements)  Reducing time to introduce new product or service  Reducing time to produce product

Trends in Product & Service Design (2 of 2) Increased emphasis on or attention to:  The organization’s capabilities to produce or deliver the item  Refining existing products and services  Environmental concerns  Designing products & services that are “user friendly”  Designing products that use less material

Why Companies Design New Products and Services  To be competitive  To increase business growth and profits  To avoid downsizing with development of new products  To improve product quality  To achieve cost reductions in labor or materials

Objectives of Product and Service Design Main focus –Customer satisfaction Secondary focus –Function of product/service –Time to market –Cost/profit –Quality –Appearance –Ease of production/assembly –Ease of maintenance/service Product and service design – or redesign – should be closely tied to an organization’s strategy

An Effective Design Process Matches product/service characteristics with customer needs Meets customer requirements in the simplest, most cost-effective manner Reduces time to market Minimizes revisions

Few Successes Development Stage Number of 1000 Market requirement Design review, Testing, Introduction 25 Ideas 1750 Product specification 100 Functional specifications One success! 500

Stages in the Design Process 1.Idea Generation — Product Concept 2.Feasibility Study — Performance Specifications 3.Preliminary Design — Prototype 4.Final Design — Final Design Specifications 5.Process Planning — Manufacturing Specifications

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

Step 1: Idea Generation Suppliers, distributors, salespersons, competitors Trade journals and other published material Warranty claims, customer complaints, failures Customer surveys, focus groups, interviews Field testing, trial users Research and development

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Reverse Engineering 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 has the objective of achieving commercial applications.  Development converts results of applied research into commercial applications.

More Idea Generators Perceptual Maps Visual comparison of customer perceptions Benchmarking Comparing product/service against best-in-class Reverse engineering Dismantling and inspecting a competitor’s product to discover product improvements

Perceptual Map of Breakfast Cereals (1 of 2) HIGH NUTRITION LOW NUTRITION GOOD TASTE BAD TASTE

Perceptual Map of Breakfast Cereals (2 of 2) HIGH NUTRITION LOW NUTRITION GOOD TASTE Cocoa Puffs BAD TASTE RiceKrispies Wheaties Cheerios ShreddedWheat

Step 2: Feasibility Study Step 2: Feasibility Study Market Analysis Economic Analysis Technical / Strategic Analysis Performance Specifications are written for product concepts that pass the feasibility study

Step 3: Preliminary Design Step 3: Preliminary Design Create form & functional design Build prototype Test prototype Revise prototype Retest

3.1. Form Design (How the Product Looks) Cellular Personal Safety Alarm Personal Computer

3.2. Functional Design (How the Product Performs) Reliability: The ability of a product, part or system to perform its intended function under a prescribed set of conditions over a specified length of time. It is expressed as the probability that the product performs intended function for a specified length of time Normal Operating Conditions: the set of conditions under which an item’s reliability is specified Maintainability: Ease and/or cost of maintaining/ repairing product

Computing Reliability (1 of 4) x 0.90 = 0.81 Components in series

Computing Reliability (2 of 4) x 0.90 = (1-0.95) = Components in series Components in parallel R2R2R2R2 R1R1R1R1

Computing Reliability (3 of 4) Determine the reliability of the system shown

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

How to improve Reliability  Component design  Production/assembly techniques  Testing  Redundancy/backup  Preventive maintenance procedures  User education  System design

System Availability (1 of 4) System Availability (1 of 4) System Availability, SA = MTBF MTBF + MTTR

System Availability (2 of 4) System Availability (2 of 4) System Availability, SA = MTBF MTBF + MTTR PROVIDERMTBF (HR)MTTR (HR) A604.0 B362.0 C241.0

System Availability (3 of 4) 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%

System Availability (4 of 4) 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%

3.3. Production Design Part of the preliminary design phase Simplification Standardization Mass customization

Design Simplification (1 of 3) (a) The original design Assembly using common fasteners

Design Simplification (2 of 3) (a) The original design Assembly using common fasteners (b) Revised design One-piece base & elimination of fasteners

Design Simplification (3 of 3) (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

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

Advantages of Standardization (1 of 2) 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

Advantages of Standardization (2 of 2) 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 basically standardized goods or services, but incorporating some degree of customization by: –Delayed differentiation –Modular design Mass Customization

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

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 And it adds flexibility to both production and marketing

Steps 4&5: Final Design & Process Plans Produce detailed drawings & specifications Create workable instructions for manufacture Select tooling & equipment Prepare job descriptions Determine operation & assembly order Program automated machines

Improving the Design Process Design teams & concurrent design Design for manufacture & assembly Design for disassembly Design to prevent failures and ensure value Design for environment Measure design quality Utilize quality function deployment Utilize Computer Aided Design Design for robustness Engage in collaborative design

Organizing for Product Development (1 of 2) Historically – distinct departments –Duties and responsibilities are defined –Difficult to foster forward thinking Today – team approach –Representatives from all disciplines or functions –Concurrent engineering – cross functional team

Traditional Approach –“We design it, you build it” or “Over the wall” Concurrent Engineering –“Let’s work together simultaneously” Organizing for Product Development (2 of 2)

“Over the Wall” Approach Design Mfg New Product

Breaking Down Barriers to Effective Design

Design Teams Marketing, manufacturing, engineering Suppliers, dealers, customers Lawyers, accountants, insurance companies

Concurrent Engineering Defined Concurrent engineering is the bringing together of personnel from various functions together early in the design phase. CE can be defined as the simultaneous development of project design functions, with open and interactive communication existing among all team members for the purposes of reducing time to market, decreasing cost, and improving quality and reliability Time savings are created by performing activities in parallel

Concurrent Design Improves quality of early design decisions Scheduling and management can be complex as tasks are done in parallel

General Performance Specifications 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.” Supplier submits design specifications and prepares a prototype for testing

Design for Manufacture and Assembly Design a product for easy & economical production Incorporate production design early in the design phase Taking into account the manufacturing capabilities of the organization in designing goods The more general term “design for operations” encompasses services as well as manufacturing Improves quality, productivity and reduces costs Shortens time to design and manufacture

DFM Guidelines 1.Simplify products by reducing the number of separate parts 2.Minimize the number of parts, tools, fasteners, and assemblies 3.Use standard parts and repeatable processes 4.Design parts for many uses 5.Incorporate modularity in design 6.Design for ease of assembly, minimal handling 7.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 Manufacturing and Assembly Greatest improvements related to DFMA arise from simplification of the product by reducing the number of separate parts: During the operation of the product, does the part move relative to all other parts already assembled? Must the part be of a different material or be isolated from other parts already assembled? Must the part be separate from all other parts to allow the disassembly of the product for adjustment or maintenance?

Design for Assembly (DFA) Procedure for reducing the number of parts Evaluate methods for assembly Determine the sequence of assembly operations

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. DFMA software focuses on the effect of design upon assembly, allows designers to examine the integration of product designs before the product is manufactured.

Design Review Failure Mode and Effects Analysis (FMEA) A systematic approach for analyzing causes & effects of failures Prioritizes failures Attempts to eliminate causes Fault Tree Analysis (FTA) Study interrelationship between failures Value Analysis (VA)

Fault Tree for Potato Chips

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

Designing for the Customer: Quality Function Deployment (QFD) QFD is an approach that integrates the “voice of the customer” into the product and service development process. Translates customer preferences into specific product characteristics Enables to design for the customer Cross functional teams are used Displays requirements in matrix diagrams First matrix called “house of quality” Series of connected houses

Quality Function Deployment Process  Identify customer wants  Identify how the good/service will satisfy customer wants  Relate customer wants to product hows  Identify relationships between the firm’s hows  Develop importance ratings  Evaluate competing products

House of Quality (1 of 6) Correlation matrix Design requirements Customer requirements Target values Relationship matrix Competitive assessment Importance

House of Quality (2 of 6) 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

House of Quality (3 of 6) 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

House of Quality (4 of 6) 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

House of Quality (5 of 6) 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 (6 of 6)

House of Quality: Another Example Customer requirements information forms the basis for this matrix, used to translate them into operating or engineering goals.

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

Benefits of QFD Promotes better understanding of customer demands Promotes better understanding of design interactions Involves manufacturing in the design process Breaks down barriers between functions and departments Provides documentation of the design process

Designing products at a computer terminal or work station –Design engineer develops rough sketch of product –Uses computer to draw product Often used with CAM © 1995 Corel Corp. Technology in Design: Computer Aided Design (CAD)

Technology in Design CAD - Computer Aided Design Assists in creating and modifying designs CAE - Computer Aided Engineering Tests & analyzes designs on computer screen CAM refers to the use of specialized computer programs to direct and control manufacturing equipment CAD/CAM - Design & Manufacturing Automatically converts CAD data into processing instructions for computer controlled equipment

Benefits of CAD Produces better designs faster Allows more time for designers to work on creative projects Reduces costs and increases product quality Builds database of designs and creates documentation to support them Shortens time to market Reduces time to manufacture Enlarges design possibilities Enhances communication and promotes innovation in design teams Provides possibility of engineering and cost analysis on proposed designs

Design for Robustness Product can fail due to poor design quality Products subjected to many conditions Robust Design results in products or services that can function over a broad range of conditions A robust product is to be designed that is insensitive to environmental factors either in manufacturing or in use Product is designed so that small variations in production or assembly do not adversely affect the product Design products for consistent performance Robust design studies Controllable factors - under designer’s control Uncontrollable factors - from user or environment Central feature is parameter design

Consistency is Important Consistent errors are easier to correct than random errors Parts within tolerances may yield assemblies which aren’t Consumers prefer product characteristics near their ideal values

Collaborative Product Commerce Share and work on design files in real time from physically separate locations, typically over the internet Accelerates product development Helps resolve product launch issues Improves the quality of design

The Kano Model

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved. Metrics for Design Quality (1 of 2) 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 (2 of 2) 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

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

Design Guidelines (1 of 2)  Produce designs that are consistent with the goals of the company  Take into account the operations capabilities of the organization in order to achieve designs that fit with those capabilities  Take into account the cultural differences related to product design (for multinationals)  Give customers the value they expect  Make health and safety a primary concern  Consider potential harm to the environment

Design Quidelines (2 of 2) Increased emphasis on components commonality Package products and services Use multiple-use platforms Consider tactics for mass customization Look for continual improvement Shorten time to market