1. Roberta Russell & Bernard W. Taylor, III
Chapter 5
Products and Services
Operations Management - 5th Edition
Roberta Russell & Bernard W. Taylor, III

2. Design Process Effective design can provide a competitive edge
Matches product or service characteristics with customer requirements
Ensures that customer requirements are met in the simplest and least costly manner
Reduces time required to design a new product or service
Minimizes revisions necessary to make a design workable

3. Design Process (cont.) Product design Service 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

4. Outline of 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
We’ll look at each of these in turn.

5. 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
Anywhere else??

6. Idea Generation – Competitor Source
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

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

8. Feasibility Study Market analysis Economic analysis
Technical/strategic analysis
Performance specifications are written for product concepts that pass the feasibility study

9. Rapid Prototyping Build a prototype Test prototype Revise design
Form design
Functional design
Production design
Test prototype
Revise design
Retest

10. Form and Functional Design
Form Design
How product will look?
Functional Design
Reliability
Maintainability
Usability

11. Reliability
The probability that a given part or product will perform its intended function for a specified length of time under normal conditions of use

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

13. Computing Reliability
(1-0.95) = 0.995
Components in parallel
0.95
0.90 R2 R1

14. System Reliability 0.92 0.90 0.98 0.98 x 0.99 x 0.98 = 0.951
0.92+(1-0.92)(0.90)=0.99
0.98
0.98 x 0.99 x 0.98 = 0.951

15. Reliability Example
You work in a hospital as an administrator of the lab (blood tests, etc.). Other departments have been recently complaining that lab results and service is unreliable. You decide to determine the reliability of your “system”.

16. Reliability Example, cont’d.

17. System Availability (SA)
MTBF
MTBF + MTTR
where:
MTBF = mean time between failures
MTTR = mean time to repair

18. System Availability (cont.)
PROVIDER MTBF (HR) MTTR (HR) A B C
SAA = 60 / (60 + 4) = or 93.75%
SAB = 36 / (36 + 2) = or 94.74%
SAC = 24 / (24 + 1) = or 96.00%

19. System Availability Example
The hospital wants to explore changing its paging service. You have three different vendors to choose from. Each guarantees a maximum number of failures per day and a maximum time to regain service once a failure occurs. Which vendor should you choose and why?

20. SA Example, cont’d. PROVIDER # of Failures MTTR (MIN) Enera 12 2.5
Verizon
Sprint 8 3.5

21. Usability Ease of use of a product or service Ease of learning
Ease of remembering how to use
Frequency and severity of errors
User satisfaction with experience

22. Production Design Simplification Standardization Modularity
Reducing number of parts, assemblies, or options in a product
Standardization
Using commonly available and interchangeable parts
Modularity
Combining standardized building blocks, or modules, to create unique finished products

23. Design Simplification
(a) Original design
Assembly using
common fasteners
(b) Revised design
One-piece base & elimination of fasteners
(c) Final design
Design for push-and-snap
assembly

24. Final Design and Process Plans
Workable instructions
Necessary equipment and tooling
Component sourcing recommendations
Job descriptions and procedures
Computer programs for automated machines
Final design
Detailed drawings and specifications for new product or service

25. 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

26. Design Team

27. 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

28. Technology in the Design Process
Computer Aided Design (CAD)
Assists in creation, modification, and analysis of a design
Includes
Computer-aided engineering (CAE)
Tests and analyzes designs on computer screen
Computer-aided manufacturing (CAM)
Ultimate design-to-manufacture connection

29. 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

30. 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

31. Design for Environment

32. Design for Robustness Robust product Robust design
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)

33. Tolerance and Consistency
Allowable ranges of variation in the dimension of a part
Consistency
Consistent errors are easier to correct than random errors
Parts within tolerances may yield assemblies that are not within limits
Consumers prefer product characteristics near their ideal values

34. Special Considerations in Service Design
Services are intangible
Service output is variable
Services 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

35. Service Design Process
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
Service Design Process

36. Service Design Process (cont.)
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