Chapter 4: Product/Service Design1 Chapter 4 Product/Service Design

Chapter 4: Product/Service Design2 Themes Illustrate in Examples 4 Two examples related to design of products and one to the design of a service 4 Importance of product and service design to an organization’s competitiveness –Progressive –Thermos

Chapter 4: Product/Service Design3 Themes continued 4 Technology –In Progressive’s case, new technology such as cellular phones made new service possible –In Caterpillar’s case, new technology used to enhance design process 4 Design Teams

Chapter 4: Product/Service Design4 Impacts of Selection/Design Decisions 4 Fit 4 Materials 4 Labor 4 Equipment 4 Process 4 Financing 4 Ultimately, product cost

Chapter 4: Product/Service Design5 Three Stages in Output Selection and Design 4 Selection Stage –Idea generation –Screening and selection 4 Product and Service Design Stage –Preliminary design –Prototype testing –Final Design 4 Process Design

Chapter 4: Product/Service Design6 Steps in Product-Service Selection and Design

Chapter 4: Product/Service Design7 The Selection Stage

Chapter 4: Product/Service Design8 Generation of Ideas 4 Employees with customer contact play a key role in generating new ideas 4 Can imitate proven new idea 4 Purchase new idea 4 Marketing Pull Versus Technology Push 4 Product Versus Process Research

Chapter 4: Product/Service Design9 The Development Effort

Chapter 4: Product/Service Design10 Mortality Curve of Chemical Product Ideas from Research to Commercialization

11 Service Gap Identifier

Chapter 4: Product/Service Design12 Product-Process Innovations Over Time

Chapter 4: Product/Service Design13 Screening and Selection 4 Assessing technical feasibility 4 Determining up-front capital needs 4 Evaluation may include calculation of payback period, return on investment, or net present value

Chapter 4: Product/Service Design14 Analysis of Organizational Fit 4 Experience with particular output 4 Experience with production system required for the output 4 Experience in providing an output to the same target recipients 4 Experience with the distribution system for the output

Chapter 4: Product/Service Design15 Typical Checklist for Organizational Fit

Chapter 4: Product/Service Design16 The Aggregate Project Plan 4 Project Portfolio –Derivative projects –Breakthrough projects –Platform projects –R&D projects

Chapter 4: Product/Service Design17 The Aggregate Project Plan

Chapter 4: Product/Service Design18 An Example Aggregate Project Plan

Chapter 4: Product/Service Design19 Using the Aggregate Project Plan 4 Identify gaps in portfolio 4 Evaluate resource requirements 4 Employee development

Chapter 4: Product/Service Design20 The Product/Service Design Stage

Chapter 4: Product/Service Design21 The Product Design Stage 4 Preliminary Design 4 Prototype Testing –Avoid costly design-test-design cycle 4 Final Design

Chapter 4: Product/Service Design22 Preliminary Design 4 Tradeoff Analysis 4 Standardization 4 Modularity 4 Computer-Aided Design

Chapter 4: Product/Service Design23 Tradeoff Analysis Factors to Consider 4 Function 4 Cost 4 Size and shape 4 Appearance 4 Quality 4 Reliability 4 Environmental impact 4 Producability 4 Timing 4 Accessibility 4 Recipient input requirements

Chapter 4: Product/Service Design24 Egekwu_2000 House Of Quality 6. Technical assessment and target values 1. Customer requirements 4. Relationship matrix 3. Product characteristics Importance 2. Competitive assessment 5. Tradeoff matrix

Chapter 4: Product/Service Design25 The House of Quality for a Car Door - figure 4:10 on page 119

Chapter 4: Product/Service Design26 Egekwu_2000 Benefits Of QFD 4 Promotes better understanding of customer demands 4 Promotes better understanding of design interactions 4 Involves manufacturing in the design process 4 Breaks down barriers between functions and departments

Chapter 4: Product/Service Design27 Egekwu_ Focuses the design effort 4 Fosters teamwork 4 Improves documentation of the design and development process 4 Provides a database for future designs 4 Increases customer satisfaction 4 Reduces the number of engineering changes 4 Brings new designs to the market faster 4 Reduces the cost of design and manufacture

Chapter 4: Product/Service Design28 Advantages of Standardization 4 Minimizes number of parts needed to stock 4 Minimizes number of equipment setups 4 Simplified operations procedures 4 Quantity discounts due to larger purchases 4 Minimized service and repair problems

Chapter 4: Product/Service Design29 Disadvantages of Standardization 4 Possible lower quality because standard parts used rather than specially made parts 4 Inflexible production

Chapter 4: Product/Service Design30 Modularity computer 5 hard drive sizes 5 choices for amount of RAM 5 choices for CPU 4 modem choices 5 x 5 x 5 x 4 = 500 possible computer configurations with only 19 different parts

Chapter 4: Product/Service Design31 Prototype Testing 4 Design concept developed in preliminary stage tested 4 Physical models 4 Computer simulation 4 Rapid prototyping (RP) 4 Actual product or service 4 Accept, extend, modify, or reject preliminary design

Chapter 4: Product/Service Design32 Final Design 4 Simplification and value analysis 4 Safety and human factors 4 Reliability 4 Manufacturability- DFM/DFA (design-for- manufacturability/design-for- assembly)methodologies.

Chapter 4: Product/Service Design33 Egekwu_2000 DFM - Design Simplification (a) The original design(b) Revised design(c) Final design Design for push-and-snap assembly One-piece base & elimination of fasteners Assembly using common fasteners

Chapter 4: Product/Service Design34 Egekwu_2000 Computing Reliability x 0.90 = (1-0.95) = Components in series Components in parallel RsRs = 1 - [(1-R 1 )(1-R 2 )(1-R 3 ) …]

Chapter 4: Product/Service Design35 Robust Design 4 A product designed to withstand variations in environmental and operating conditions is said to be robust or possesses robust quality 4 Poor performance can be due to: –- controllable factors (materials, process conditions, dimensions, etc. OR –- uncontrollable factors (length of use, settings, humidity, heat, etc.)

Chapter 4: Product/Service Design36 Egekwu_2000 Design For Robustness 4 Product can fail due to poor design quality 4 Products subjected to many conditions 4 Robust design studies –controllable factors - under designer’s control –uncontrollable factors - from user or environment 4 Designs products for consistent performance

Chapter 4: Product/Service Design37 Robust Design 4 Designers job is then: - to choose values of controllable variables that react in a robust (i.e. withstand variation from ideal) fashion to the possible occurrences of uncontrollable factors. 4 E.G.: Tires that operate with certain hole sizes, ABS (anti-lock braking system) Braking system

Chapter 4: Product/Service Design38 Product/Process Technologies:Computer-Aided Design 4 Develop drawings on computer screen 4 Can retrieve old designs and changes as necessary rather than creating new designs from scratch 4 Computer-aided engineering (CAE) 4 Computer-aided process planning (CAPP) 4 Computer-aided manufacturing (CAM)

Chapter 4: Product/Service Design39 Methods to Speed New Output Introduction 4 Contract R&D 4 Product/process teams 4 Overlap development stages 4 Combine/eliminate stages 4 Incremental emphasis 4 More extensive application 4 Use new technologies

Chapter 4: Product/Service Design40 Commercialization

Chapter 4: Product/Service Design41 Commercialization Process of moving an idea for a new product or service from concept to market Concepts of Innovation and Diffusion

Chapter 4: Product/Service Design42 History of the Typewriter 4 Mechanical typewriter dominated market for 25 years 4 Then the electromechanical typewriter dominated market for 15 years 4 Electric typewriter dominated for the next 7 years 4 First generation microprocessor based machines dominated for next 5 years

Chapter 4: Product/Service Design43 Characteristics of Companies with Superior Commercialization Capabilities 4 Commercialize two to three times as many new products and processes as their competitors 4 Two to three times as many technologies incorporated into products 4 Get product to market in half time 4 Compete in twice as many product and geographic markets

Chapter 4: Product/Service Design44 Example - Assume Following Applies to Laser Printer Industry 4 Market growing 20% annually 4 Prices declining 12% annually 4 Five year life cycle As a project leader, would you choose between incurring a 30% cost overrun to finish project on schedule or miss deadline by six months?

Chapter 4: Product/Service Design45 Laser Printer Example continued 4 Incurring the 30% cost overrun will reduce cumulative profits by 2.3% 4 Launching printer six months late will reduce cumulative profits by 33%

Chapter 4: Product/Service Design46 To Improve Commercialization Capability Must Measure It 4 Time to market 4 Range of markets 4 Number of markets 4 Breadth of technologies

Chapter 4: Product/Service Design47 Improving Commercialization Capability 4 Make it a priority 4 Set goals and benchmarks 4 Build cross-functional teams 4 Promote hands-on management to speed actions and decisions

Chapter 4: Product/Service Design48 Disruptive Technologies 4 Disruptive Technologies –innovative technologies that pertain to new ways of meeting customers’ needs or performing same function e.g. ABS, On- line degree programs, etc. –initially they tend to appeal to a niche market - RISK? 4 Sustaining Technologies –technological innovations that focus on what mainstream customers currently value –performance characteristics improvements are not dramatic; “design incrementalism” is an example.