1. Chapter 3
Products and Services

2. Product Design Specifies materials Determines dimensions & tolerances
Defines appearance
Sets performance standards

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

4. 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

5. 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

6. 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

7. 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

8. 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

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

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

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

12. 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

13. 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

14. 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

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

16. 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

17. 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

18. 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

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

20. 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

21. 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

22. 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

23. 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?

24. 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

25. 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

26. 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

27. 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

28. 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