1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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.)

8. 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

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

10. 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

11. 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

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

13. Copyright 2006 John Wiley & Sons, Inc.5-13 Computing Reliability 0.95 + 0.90(1-0.95) = 0.995 Components in parallel 0.95 0.90 R2R2R2R2 R1R1R1R1

14. Copyright 2006 John Wiley & Sons, Inc.5-14 System Reliability 0.92 0.90 0.98 0.92+(1-0.92)(0.90)=0.990.98 0.98 x 0.99 x 0.98 = 0.951

15. Copyright 2006 John Wiley & Sons, Inc.5-15 SA = MTBF MTBF + MTTR System Availability (SA) where: MTBF = mean time between failures MTTR = mean time to repair

16. Copyright 2006 John Wiley & Sons, Inc.5-16 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%

17. Copyright 2006 John Wiley & Sons, Inc.5-17 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

18. Copyright 2006 John Wiley & Sons, Inc.5-18  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

19. Copyright 2006 John Wiley & Sons, Inc.5-19 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

20. Copyright 2006 John Wiley & Sons, Inc.5-20 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

21. Copyright 2006 John Wiley & Sons, Inc.5-21 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

22. Copyright 2006 John Wiley & Sons, Inc.5-22 Design Team

23. Copyright 2006 John Wiley & Sons, Inc.5-23 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

24. Copyright 2006 John Wiley & Sons, Inc.5-24 Design for Manufacture and Assembly (DFMA)  Design for manufacture  design a product for easy and economical production  Design for assembly a set of procedures for: reducing number of parts in an assembly evaluating methods of assembly determining an assembly sequence

25. Copyright 2006 John Wiley & Sons, Inc.5-25 DFM Guidelines   Minimize number of parts and subassemblies   Avoid tools, separate fasteners, and adjustments   Use standard parts when possible and repeatable, well-understood processes   Design parts for many uses, and modules that can be combined in different ways   Design for ease of assembly, minimal handling, and proper presentation   Allow for efficient and adequate testing and replacement of parts

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

27. Copyright 2006 John Wiley & Sons, Inc.5-27 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

28. Copyright 2006 John Wiley & Sons, Inc.5-28 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

29. Copyright 2006 John Wiley & Sons, Inc.5-29 Design Review   Failure mode and effects analysis (FMEA) a systematic method of analyzing product failures   Fault tree analysis (FTA) a visual method for analyzing interrelationships among failures   Value analysis (VA) helps eliminate unnecessary features and functions

30. Copyright 2006 John Wiley & Sons, Inc.5-30 FMEA for Potato Chips Failure Mode Cause of Failure Effect of Failure Corrective Action Stale  low moisture content  expired shelf life  poor packaging  tastes bad  won’t crunch  thrown out  lost sales  add moisture  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

31. Copyright 2006 John Wiley & Sons, Inc.5-31 Fault tree analysis (FTA)

32. Copyright 2006 John Wiley & Sons, Inc.5-32 Value analysis (VA)   Can we do without it?   Does it do more than is required?   Does it cost more than it is worth?   Can something else do a better job?   Can it be made by a less costly method? with less costly tooling? with less costly material?   Can it be made cheaper, better, or faster by someone else?

33. Copyright 2006 John Wiley & Sons, Inc.5-33 Design for Environment  Design for environment designing a product from material that can be recycled designing a product from material that can be recycled design from recycled material design from recycled material design for ease of repair design for ease of repair minimize packaging minimize packaging minimize material and energy used during manufacture, consumption and disposal minimize material and energy used during manufacture, consumption and disposal  Extended producer responsibility holds companies responsible for their product even after its useful life holds companies responsible for their product even after its useful life

34. Copyright 2006 John Wiley & Sons, Inc.5-34 Design for Environment (cont.)

35. Copyright 2006 John Wiley & Sons, Inc.5-35 Measure Design Quality   % of revenue from new products or services   % of products capturing 50% or more of market   % of process initiatives yielding a 50% or more improvement in effectiveness   % of suppliers engaged in collaborative design   % of parts that can be recycled   % of parts used in multiple products   % of parts with no engineering change orders   Average number of components per product   Things gone wrong (TGW)

36. Copyright 2006 John Wiley & Sons, Inc.5-36 Quality Function Deployment (QFD)  Translates voice of customer into technical design requirements  Displays requirements in matrix diagrams first matrix called “house of quality” first matrix called “house of quality” series of connected houses series of connected houses

37. Copyright 2006 John Wiley & Sons, Inc.5-37 House of Quality Trade-off matrix Design characteristics Customer requirements Target values Relationship matrix Competitive assessment Importance 1 2 3 4 5 6

38. Copyright 2006 John Wiley & Sons, Inc.5-38 Competitive Assessment of Customer Requirements 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

39. Copyright 2006 John Wiley & Sons, Inc.5-39 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 From Customer Requirements to Design Characteristics

40. Copyright 2006 John Wiley & Sons, Inc.5-40 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 - - + + + Tradeoff Matrix

41. Copyright 2006 John Wiley & Sons, Inc.5-41 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 31.48x42SS27150.545500NY Iron B 41.28x41MG27150.335350NY Our Iron (X) 21.79x54T35150.750600NY Estimated impact 344454325530 Estimated cost 333343334452 Targets 1.28x53SS3030500 Design changes ******* Objective measures Targeted Changes in Design

42. Copyright 2006 John Wiley & Sons, Inc.5-42 SS = Silverstone MG = Mirorrglide T = Titanium Completed House of Quality

43. Copyright 2006 John Wiley & Sons, Inc.5-43 A Series of Connected 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

44. Copyright 2006 John Wiley & Sons, Inc.5-44 Benefits of QFD  Promotes better understanding of customer demands  Promotes better understanding of design interactions  Involves manufacturing in design process  Breaks down barriers between functions and departments  Provides documentation of design process

45. Copyright 2006 John Wiley & Sons, Inc.5-45 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

46. Copyright 2006 John Wiley & Sons, Inc.5-46 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

47. Copyright 2006 John Wiley & Sons, Inc.5-47 Taguchi’s Quality Loss Function   Quantifies customer preferences toward quality   Emphasizes that customer preferences are strongly oriented toward consistently   Design for Six Sigma (DFSS) Quality Loss Lower tolerance limit Target Upper tolerance limit

48. Copyright 2006 John Wiley & Sons, Inc.5-48 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

49. Copyright 2006 John Wiley & Sons, Inc.5-49 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

50. Copyright 2006 John Wiley & Sons, Inc.5-50   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.)

51. Copyright 2006 John Wiley & Sons, Inc.5-51 Design Decision High-Contact ServiceLow-Contact Service High v. Low Contact Services   Facility location   Convenient to customer  Near labor or transportation source Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210  Facility layout  Must look presentable, accommodate customer needs, and facilitate interaction with customer  Designed for efficiency

52. Copyright 2006 John Wiley & Sons, Inc.5-52 Design Decision High-Contact ServiceLow-Contact Service   Quality control   More variable since customer is involved in process; customer expectations and perceptions of quality may differ; customer present when defects occur  Measured against established standards; testing and rework possible to correct defects Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210  Capacity  Excess capacity required to handle peaks in demand  Planned for average demand High v. Low Contact Services (cont.)

53. Copyright 2006 John Wiley & Sons, Inc.5-53 Design Decision High-Contact ServiceLow-Contact Service   Worker skills   Must be able to interact well with customers and use judgment in decision making  Technical skills Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210  Scheduling  Must accommodate customer schedule  Customer concerned only with completion date High v. Low Contact Services (cont.)

54. Copyright 2006 John Wiley & Sons, Inc.5-54 Design Decision High-Contact ServiceLow-Contact Service High v. Low Contact Services (cont.)   Service process   Mostly front-room activities; service may change during delivery in response to customer  Mostly back- room activities; planned and executed with minimal interference Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210  Service package  Varies with customer; includes environment as well as actual service  Fixed, less extensive

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