1. PRODUCT AND SERVICE DESIGN
TRA 3151, FGCU

2. Learning Objectives
LO3–1: Know the issues associated with product design and the typical processes used by companies.
LO3–2: Illustrate how different criteria can impact the design of a product.
LO3–3: Contrast how service products can have different design criteria compared to manufactured products.

3. The Product Design Process
Companies continuously bring new products to market
Product design is integral to success
Product design differs significantly depending on the industry
Companies often outsource major functions
Contract manufacturer: an organization capable of manufacturing and/or purchasing all the components needed to produce a finished product

4. Importance of New Products
Percentage of Sales from New Products
50%
40%
30%
20%
10%
Position of Firm in Its Industry
Industry leader
Top third
Middle third
Bottom third

5. IMPACT OF MARKET INTRODUCTION ON PROFIT
Cumulative Profits over life of product 3X 2X X 1X
Time (months)
6 months early
6 months late

6. Core Competency
Core competency: the one thing a company can do better than its competitors
A core competency has three characteristics:
It provides potential access to a wide variety of markets
It increases perceived customer benefits
It is hard for competitors to imitate

7. Humor in Product Design
As the customer wanted it.
© T/Maker Co.
As Marketing interpreted it.
© T/Maker Co.
As Engineering designed it.
© T/Maker Co.
As Operations made it.
© T/Maker Co. 7

8. Bad designs
How much is the gas?

9. Bad designs Guess which switch controls the projector screen?
How do you raise the window?

10. Product Development Few Successes Number 2000 1500 1000 500
Ideas
1750
2000
Design review,
Testing, Introduction
Market requirement
1500
1000
Functional specifications
1000
Product specification
500
500
100
One success! 25
Development Stage 21

11. Product Development System
Evaluation
Introduction
Test Market
Functional Specifications
Design Review
Product Specifications
Customer Requirements
Ability
Ideas
Scope of product development team
Scope for design and engineering teams
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12. Six Phases of the Generic Development Process (Formal Process)
Phase 0: Planning
Phase 1: Concept development
Phase 2: System-level design
Phase 3: Design detail
Phase 4: Testing and refinement
Phase 5: Production ramp-up

13. Phase 0: Planning Precedes project approval
Begins with corporate strategy
Includes assessment of technology developments and market objectives
Output is the project mission statement

14. Phase 1: Concept Development
Needs of the target market are identified
Alternative product concepts are generated and evaluated
One or more concepts are selected for further development and testing
Concept: a description of the form, function, and features of a product

15. Phase 2: System-Level Design
Definition of the product architecture
Decomposition of the product into subsystems and components
Final assembly scheme for the production system is usually defined
Output:
Geometric layout of the product
Functional specifications for each subsystem
Preliminary process flow diagram

16. Phase 3: Design Detail
Complete specification of the geometry, materials, and tolerances for all parts
Identification of all the standard parts to be purchased from suppliers
Process plan is established
Tooling is designed
Output:
Drawings describing the geometry of each part and its tooling
Specifications of purchased parts
Process plan

17. Phase 4: Testing and Refinement
Construction and evaluation of multiple preproduction versions of product
Same geometry and material as production version
Not necessarily fabricated with the actual production processes
Prototypes tested to determine if the product will work as designed

18. Phase 5: Production Ramp-Up
Product is made using the intended production system
Need to train workers and resolve any remaining problems
Products may be supplied to preferred customers for evaluation
Transition to ongoing production is gradual

19. The Generic Product Development Process

20. Generic Product Development Process
Generic: begins with a market opportunity and team selects appropriate technologies to meet customer needs, Ex: sporting goods, furniture
Technology-push products: firm begins with new technology and looks for a market. Ex: Tyvek envelopes, 3D printers
Platform products: built around a preexisting technological subsystem, Ex: Electronics, printers

21. Generic Product Development Process Continued
Process-intensive products: production process has an impact on the properties of the product
Product characteristics are constrained by the production process, Ex: Snack foods, cereals, chemicals
Customized products: new products are slight variations of existing configurations, Ex: Batteries, containers, motors
High-risk products: technical or market uncertainties create high risks of failure, Ex: Pharmaceuticals, space systems

22. Generic Product Development Process Continued
Quick-build products: rapid modeling and prototyping enables many design-build-test cycles, Ex: software, cell phones
Complex systems: systems must be decomposed into several subsystems and many components, Ex: airplanes, jet engines, automobiles.

23. Summary of Variants of Generic Product Development Process

24. Quality Function Deployment
Interfunctional teams from marketing, design engineering, and manufacturing
Begins with listening to the customer
Uses market research
Customer preferences are defined and broken down into customer requirements
House of quality 6

25. Quality Function Deployment
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
Compare performance to desirable technical attributes
© 2011 Pearson Education, Inc. publishing as Prentice Hall

26. Competitive assessment
QFD House of Quality
How to satisfy
customer wants
Interrelationships
What the customer
wants
Customer importance ratings
Competitive assessment
Relationship
matrix
Weighted rating
Technical
evaluation
Target values
© 2011 Pearson Education, Inc. publishing as Prentice Hall 1

27. House of Quality Example
Your team has been charged with designing a new camera for Great Cameras, Inc.
The first action is to construct a House of Quality
© 2011 Pearson Education, Inc. publishing as Prentice Hall

28. House of Quality Example
What the Customer
Wants
Relationship
Matrix
Technical
Attributes and
Evaluation
How to Satisfy
Customer Wants
Interrelationships
Analysis of
Competitors
What the customer wants
Customer
importance
rating
(5 = highest)
Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
Color correction 1
© 2011 Pearson Education, Inc. publishing as Prentice Hall

29. House of Quality Example
What the Customer
Wants
Relationship
Matrix
Technical
Attributes and
Evaluation
How to Satisfy
Customer Wants
Interrelationships
Analysis of
Competitors
Low electricity requirements
Aluminum components
Ergonomic design
Auto exposure
Auto focus
Paint pallet
How to Satisfy
Customer Wants
© 2011 Pearson Education, Inc. publishing as Prentice Hall

30. House of Quality Example
What the Customer
Wants
Relationship
Matrix
Technical
Attributes and
Evaluation
How to Satisfy
Customer Wants
Interrelationships
Analysis of
Competitors
High relationship
Medium relationship
Low relationship
Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
Color corrections 1
Relationship matrix
© 2011 Pearson Education, Inc. publishing as Prentice Hall

31. House of Quality Example
What the Customer
Wants
Relationship
Matrix
Technical
Attributes and
Evaluation
How to Satisfy
Customer Wants
Interrelationships
Analysis of
Competitors
House of Quality Example
Company A
Company B
G P
F G
P P
Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
Color corrections 1
Our importance ratings 22 5
How well do competing products meet customer wants
© 2011 Pearson Education, Inc. publishing as Prentice Hall

32. House of Quality Example
Low electricity requirements
Aluminum components
Ergonomic design
Auto exposure
Auto focus
Paint pallet
What the Customer
Wants
Relationship
Matrix
Technical
Attributes and
Evaluation
How to Satisfy
Customer Wants
Interrelationships
Analysis of
Competitors
Relationships between the things we can do
© 2011 Pearson Education, Inc. publishing as Prentice Hall

33. House of Quality Example
What the Customer
Wants
Relationship
Matrix
Technical
Attributes and
Evaluation
How to Satisfy
Customer Wants
Interrelationships
Analysis of
Competitors
Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
Color corrections 1
Our importance ratings
Weighted rating
© 2011 Pearson Education, Inc. publishing as Prentice Hall

34. House of Quality Example
What the Customer
Wants
Relationship
Matrix
Technical
Attributes and
Evaluation
How to Satisfy
Customer Wants
Interrelationships
Analysis of
Competitors
House of Quality Example
Target values
(Technical attributes)
Technical evaluation
Company A % yes 1 ok G
Company B % yes 2 ok F
Us % yes 2 ok G
Failure 1 per 10,000
Panel ranking
2 circuits
2’ to ∞
0.5 A
75%
© 2011 Pearson Education, Inc. publishing as Prentice Hall

35. House of Quality Example
Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
Color correction 1
Our importance ratings
Low electricity requirements
Aluminum components
Ergonomic design
Auto exposure
Auto focus
Paint pallet
Company A
Company B
G P
F G
P P
Target values
(Technical attributes)
Technical evaluation
Company A % yes 1 ok G
Company B % yes 2 ok F
Us % yes 2 ok G
Failure 1 per 10,000
Panel ranking
2 circuits
2’ to ∞
0.5 A
75%
House of Quality Example
Completed House of Quality
© 2011 Pearson Education, Inc. publishing as Prentice Hall

36. Completed House of Quality Matrix for a Car Door
Customer requirements information forms the basis for this matrix, used to translate them into operating or engineering goals

37. Value Analysis (Engineering)
Ratio of value / cost
Assessment of value :
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?

38. Cost Reduction of a Bracket via Value Engineering
© 2011 Pearson Education, Inc. publishing as Prentice Hall