1. Chapter 3 Products and Services
To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved.

2. Relevant Web Sites

3. Product Design Specifies materials Determines dimensions & tolerances
Defines appearance
Sets performance standards
Design always begins with the criteria, the measures by which designs will be evaluated.These are determined by objectives. A lot of designs are done with CAD. Some CAD machines solve a nonlinear optimization model to come up with an optimum design. To do this the design criteria have to be mathmatized. The product or process has to be modeled mathematically. Then an optimization algorithm goes to work to find the optimal design. The automobile industry and the air frame industry designs cars and airplanes this way.

4. Service Design Specifies what the customer is to experience
Physical items
Sensual benefits
Psychological benefits

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

6. Stages in the Design Process
Idea Generation — Product Concept
Feasibility Study — Performance Specifications
Preliminary Design — Prototype
Final Design — Final Design Specifications
Process Planning — Manufacturing Specifications

7. The Design Process

8. New product or service launch Revising and testing prototypes
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
Marketing
Competitors
Figure 3.1

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

10. More Idea Generators Perceptual Maps Benchmarking Reverse engineering
Visual comparison of customer perceptions
Benchmarking
Comparing product/service against best-in-class
Reverse engineering
Dismantling competitor’s product to improve your own product
Benchmarking refers to finding the best-in class produce or process, measuring performance of your product or process against it and making recommendations a for improvement based on the results. Ford reverse-engineered 400 other designs before finalizing the design of the Taurus.

11. Perceptual Map of Breakfast Cereals

12. Perceptual Map of Breakfast Cereals
HIGH NUTRITION
LOW NUTRITION
GOOD TASTE
BAD TASTE
Figure 3.2

13. Perceptual Map of Breakfast Cereals
HIGH NUTRITION
LOW NUTRITION
GOOD TASTE
Cocoa Puffs
BAD TASTE
Rice
Krispies
Wheaties
Cheerios
Shredded
Wheat
Figure 3.2

14. Feasibility Study Market Analysis Economic Analysis
Technical / Strategic Analysis
Performance Specifications

15. Preliminary Design Create form & functional design Build prototype
Test prototype
Revise prototype
Retest

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

17. Functional Design (How the Product Performs)
Reliability
Probability product performs intended function for specified length of time
Maintainability
Ease and/or cost or maintaining/repairing product

18. Computing Reliability

19. Computing Reliability
Components in series
0.90
0.90 x 0.90 = 0.81

20. Computing Reliability
Components in series
0.90
0.90 x 0.90 = 0.81
Components in parallel
0.95
0.90 R2 R1
(1-0.95) = 0.995

21. System Availability
System Availability, SA =
MTBF
MTBF + MTTR

22. System Availability MTBF MTBF + MTTR System Availability, SA =
PROVIDER MTBF (HR) MTTR (HR) A B C
Example 3.1

23. System Availability MTBF MTBF + MTTR System Availability, SA =
PROVIDER MTBF (HR) MTTR (HR) A B C
SAA = 60 / (60 + 4) = or 93.75%
SAB = 36 / (36 + 2) = or 97.26%
SAC = 24 / (24 + 1) = or 94.73%
Example 3.1

24. System Availability MTBF MTBF + MTTR System Availability, SA =
PROVIDER MTBF (HR) MTTR (HR) A B C
SAA = 60 / (60 + 4) = or 93.75%
SAB = 36 / (36 + 2) = or 97.26%
SAC = 24 / (24 + 1) = or 94.73%
Example 3.1

25. Production Design Part of the preliminary design phase Simplification
Standardization
Modularity

26. Design Simplification
(a) The original design
The first design had 24 common parts and required 84 seconds to assemble. The second design was originally designed to be assembled with robots in which number of parts was reduced to four and assemble time was cut to 12 seconds. This productivity gain goes from 43 assemblies/hr to 300 assemblies per hour.
Figure c shows an even simplier design consisting of only two parts, a base and spindle. Assembly time is reduced to four seconds—900 assemblies per hour. You can see how this would be a great way to get cost out of a product—by making it easy to assemble.
Assembly using
common fasteners
Figure 3.3

27. Design Simplification
(a) The original design
(b) Revised design
One-piece base & elimination of fasteners
Assembly using
common fasteners
Figure 3.3

28. Design Simplification
(a) The original design
(b) Revised design
One-piece base & elimination of fasteners
(c) Final design
Design for push-and-snap
assembly
Assembly using
common fasteners
Figure 3.3

29. 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

30. Improving the Design Process
Design teams
Concurrent design
Design for manufacture & assembly
Design to prevent failures and ensure value
Design for environment
Measure design quality
Utilize quality function deployment
Design for robustness
Engage in collaborative design
The Design process is essentially the product development process, to be further discussed in the next chapter.

31. Figure 3.4 Breaking Down Barriers to Effective Design

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

33. Concurrent Design Improves quality of early design decisions
Decentralized - suppliers complete detailed design
Incorporates production process
Often uses a price-minus system
Scheduling and management can be complex as tasks are done in parallel

34. 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

35. Design for Manufacture and Assembly
Design a product for easy & economical production
Incorporate production design early in the design phase
Improves quality and reduces costs
Shortens time to design and manufacture

36. DFM Guidelines
Minimize the number of parts, tools, fasteners, and assemblies
Use standard parts and repeatable processes
Modular design
Design for ease of assembly, minimal handling
Allow for efficient testing and parts replacement

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

38. 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

39. Figure 3.5 Fault Tree for Potato Chips

40. FMEA for Potato Chips Stale
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 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
Table 3.1

41. Value Analysis (Value 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?

42. Design for Environment
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

43. Figure 3.6 Design for Environment

44. Metrics for Design Quality
Percent of revenue from new products or services
Percent of products capturing 50% or more of the market
Percent of process initiatives yielding a 50% or more improvement in effectiveness
Percent of suppliers engaged in collaborative design

45. Metrics for Design Quality
Percent of parts that can be recycled
Percent of parts used in multiple products
Average number of components per product
Percent of parts with no engineering change orders
Things gone wrong

46. Quality Function Deployment (QFD)
Translates the “voice of the customer” into technical design requirements
Displays requirements in matrix diagrams
First matrix called “house of quality”
Series of connected houses

47. House of Quality

48. Design characteristics Customer requirements Competitive assessment
House of Quality
Trade-off matrix
Design characteristics
Customer requirements
Target values
Relationship matrix
Competitive assessment
Importance 1 2 3 4 5 6
Helps to coordinate efforts of various teams working together. Translates the voice of the customer to technical requirements at every stage of design and manufacture. Basically this house converts customer requirements into product design characteristics. It has six sections—the customer requirements section, a competitive assessment section, a design characteristics section, a relationship matrix, a trade-off matrix and a target values section.
We begin the process by listening to our customers. Suppose our customers tell us they want an iron that presses quickly, removes wrinkles, doesn’t stick, provides enough steam, doesn’t spot fabric, and doesn’t scorch fabric.. Ranking of these requirements is on a scale of 0 to 10.
Next we conduct a competitive assessment on a scale of 0 to 5. We see our iron doesn’t fare well with respect to doesn’t stick, doesn’t spot, heats quickly, quick cool-down and not too heavy.
Next we need a way to translate these requirements into measurable design characteristics.
Figure 3.7

49. Competitive Assessment
House of Quality
Figure 3.8
Irons well
Easy and safe to use
Competitive Assessment
Customer Requirements
Presses quickly 9 B A X
Removes wrinkles 8 AB X
Doesn’t stick to fabric 6 X BA
Provides enough steam AB X
Doesn’t spot fabric 6 X AB
Doesn’t scorch fabric 9 A XB
Heats quickly 6 X B A
Automatic shut-off ABX
Quick cool-down 3 X A B
Doesn’t break when dropped 5 AB X
Doesn’t burn when touched 5 AB X
Not too heavy 8 X A B

50. House of Quality Figure 3.9 Customer Requirements
Time required to reach 450º F
Time to go from 450º to 100º
Protective cover for soleplate
Material used in soleplate
Flow of water from holes
Energy needed to press
Thickness of soleplate
Automatic shutoff
Size of soleplate
Number of holes
Weight of iron
Size of holes
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

51. House of Quality + - Figure 3.10 Protective cover for soleplate
Time to go from 450º to 100º
Time required to reach 450º
Material used in soleplate
Flow of water from holes
Energy needed to press
Thickness of soleplate
Automatic shutoff
Size of soleplate
Number of holes
Weight of iron
Size of holes - +

52. House of Quality Figure 3.11
Protective cover for soleplate
Time to go from 450º to 100º
Time required to reach 450º
Material used in soleplate
Flow of water from holes
Energy needed to press
Thickness of soleplate
Automatic shutoff
Size of soleplate
Number of holes
Weight of iron
Size of holes
Units of measure ft-lb lb in. cm ty ea mm oz/s sec sec Y/N Y/N
Iron A x4 2 SS N Y
Iron B x4 1 MG N Y
Our Iron (X) x5 4 T N Y
Estimated impact
Estimated cost
Targets x5 3 SS
Design changes * * * * * * *
Objective measures
Figure 3.11

53. House of Quality
Figure 3.12

54. Series of QFD Houses

55. Series of QFD Houses A-1 A-2 A-3 A-4 House of quality Parts deployment
Customer requirements
House of quality
Product characteristics
A-1
Parts deployment
Part characteristics
A-2
Process planning
Process characteristics
A-3
Operating requirements
Operations
A-4
Figure 3.13

56. 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

57. Design for Robustness Product can fail due to poor design quality
Products subjected to many conditions
Robust design studies
Controllable factors - under designer’s control
Uncontrollable factors - from user or environment
Designs products for consistent performance

58. 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

59. Technology in Design CAD - Computer Aided Design
Assists in creating and modifying designs
CAE - Computer Aided Engineering
Tests & analyzes designs on computer screen
CAD/CAM - Design & Manufacturing
Automatically converts CAD data into processing instructions for computer controlled equipment

60. Benefits of CAD Produces better designs faster
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

61. 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

62. Characteristics of Services
Services are intangible
Service output is variable
Service have higher customer contact
Services are perishable
Service inseparable from delivery
Tend to be decentralized and dispersed
Consumed more often than products
Services can be easily emulated

63. A Well-Designed Service System is
Consistent with firm’s strategic focus
User friendly
Robust
Easy to sustain
Effectively linked between front & back office
Cost effective
Visible to customer
FedEx

64. The Service Design Process

65. The Service Design Process
Figure 3.14
Performance Specifications
Service
Delivery Specifications
Physical items
Sensual benefits
Psychological benefits
Design Specifications
Service Provider
Customer
Customer requirements
Customer expectations
Activities
Facility
Provider skills
Cost and time estimates
Schedule
Deliverables
Location
Service Concept
Service Package
Desired service experience
Targeted customer

66. Figure 3.15 Blueprint for an Installment Lending Operation
Loan application
Branch
Officer
Pay book
Line of visibility
Deny
1 day
2 days
3 days
Confirm
Fail point Customer wait Employee decision F W
30 min. – 1 hr.
Decline
Receive payment
Final payment
Notify customer
Close account
Delinquent
Issue check
Print payment book
Accept
Verify income data
Initial screening
Employer
Bank accounts
Credit check
Credit bureau
Data base records
Branch records
Accounting
Verify payor

67. Design for High-Contact Services
DESIGN DECISION HIGH-CONTACT SERVICE LOW-CONTACT SERVICE
Facility location
Convenient to customer
Near labor or transportation
Facility layout
Must look presentable, accommodate customer needs, and facilitate interaction with customer
Designed for efficiency
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
Capacity
Excess capacity required to handle peaks in demand
Planned for average demand
Table 3.2

68. Design for High-Contact Services
DESIGN DECISION HIGH-CONTACT SERVICE LOW-CONTACT SERVICE
Worker skills
Must be able to interact well with customers and use judgment in decision making
Technical skills
Scheduling
Must accommodate customer schedule
Customer concerned only with completion date
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
Service package
Varies with customer; includes environment as well as actual service
Fixed, less extensive
Table 3.2