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

2. Design of Products

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

4. What is a Product? Need-satisfying offering of an organization Example
P&G does not sell laundry detergent
P&G sells the benefit of clean clothes
Customers buy satisfaction, not parts
May be a good or a service
This slide provides an opportunity to introduce the complex nature of a product.
There are a number of examples one can discuss here: McDonald’s/ Burger King/Wendys (their product is more than hamburgers); your particular college or university; Microsoft; auto manufacturers.

5. Why Companies Design New Products and Services
To be competitive
To increase business growth and profits
To avoid downsizing with development of new products
To improve product quality
To achieve cost reductions in labor or materials

6. Product or Service Design Activities
Translate customer wants and needs into product and service requirements (marketing, operations)
Refine existing products and services (marketing)
Develop new products and services (marketing, operations)
Formulate quality goals (marketing, operations)
Formulate cost targets (accounting, finance, operations)
Construct and test prototypes (operations, marketing, engineering)
Document specifications
Translate product and service specifications into process specifications (engineering, operations)

7. Reasons for Design or Re-Design
The driving forces for product and service design or redesign are market opportunities or threats:
Economic
Social and Demographic
Political, Liability, or Legal
Competitive
Cost or Availability
Technological

8. Major Factors to be Considered in the (Product and Service) Design Strategy
Function of product/service
Cost
Quality
Time-to-market
Appearance
Customer satisfaction
Ease of production/assembly
Ease of maintenance/service
Product and service design – or redesign – should be
closely tied to an organization’s strategy

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

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

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

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

13. Key Questions (1 of 2) Is there a demand for it? Market size
Demand profile
Can we do it?
Manufacturability - the capability of an organization to produce an item at an acceptable profit
Serviceability - the capability of an organization to provide a service at an acceptable cost or profit

14. Key Questions (2 of 2) What level of quality is appropriate?
Customer expectations
Competitor quality
Fit with the current offering
Does it make sense from an economic standpoint?
Liability issues, ethical considerations, sustainability issues, costs and profits

15. Legal Considerations Legal Considerations Product liability
The responsibility a manufacturer has for any injuries or damages caused by as faulty product
Some of the concomitant costs
Litigation
Legal and insurance costs
Settlement costs
Costly product recalls
Reputation effects

16. Normative Behavior in Product Design
Produce designs that are consistent with the goals of the organization
e.g., Do not compromise on quality, or cut corners, even in areas that are not apparent to the customer
Give customers the value they expect
Make health and safety a concern
Do not place employees, customers, or third parties at risk because of faulty products and services

17. Sustainability Sustainability
Using resources in ways that do not harm the ecological systems that support human existence
Key aspects of designing for sustainability
Life cycle assessment
Reduction of costs and materials used
Re-using parts of returned products
Recycling

18. Life Cycle Assessment (LCA)
The assessment of the environmental impact of a product or service throughout its useful life
Focuses on such factors as
Global warming
Smog formation
Oxygen depletion
Solid waste generation
LCA procedures are part of the ISO environmental management procedures

19. Reduce: Costs and Materials
Value Analysis/Value Engineering
Examination of the function of parts and materials in an effort to reduce the cost and/or improve the performance of a product
Achieve equivalent or better performance at a lower cost while maintaining all functional requirements defined by the customer
Ratio of Value/Cost
Value analysis focuses on design improvments during production

20. Common Questions Used in Value Analysis/ Value Engineering
Could a less expensive part of material be used?
Is the function necessary?
Can the function of two or more parts be performed by a single part?
Can a part be simplified?
Could product specifications be relaxed?
Could standard parts be substituted for non-standard parts?

21. Common Questions Used in Value Analysis/ Value Engineering
Assessment of value :
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 less costly method, tools, material?
Can it be made cheaper, better or faster by someone else?
Does the item have any design features that are not necessary?
Can two or more parts be combined into one?
Are there nonstandard parts that can be eliminated

22. Benefits of VA/VE Benefits: simplified products
additional standardization of products
improved functional aspects of product
improved job design and job safety
improved maintainability of the product
robust design
reduction in cost

23. Cost Reduction of a Bracket via Value Engineering

24. Re-Use: Remanufacturing
Refurbishing used products by replacing worn-out or defective components (and reselling the products)
Can be performed by the original manufacturer or another company
Design for disassembly (DFD)
Designing products so that they can be easily taken apart
Includes fewer parts and less material and using snap-fits where possible instead of screws or nuts and bolts

25. Recycle Recycling Recovering materials for future use
Applies to manufactured parts
Also applies to materials used during production
Why recycle?
Cost savings
Environmental concerns
Environmental regulations
Design for recycling (DFR)
Product design that takes into account the ability to disassemble a used product to recover the recyclable parts

26. Design for the Environment
Design safe and environmentally sound (eg. recyclable) products
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

27. “Green Manufacturing”
Make products recyclable
Use recycled materials
Use less harmful ingredients
Use lighter components
Use less energy
Use less material

28. Benefits of Environmentally Friendly Designs
Safe and environmentally sound products
Minimum raw material and energy waste
Product differentiation
Environmental liability reduction
Cost-effective compliance with environmental regulations
Recognition as good corporate citizen

29. Design for the Environment

30. Other Considerations in Product and Service Design
Product or service life cycles
Standardization
Product or service reliability
Product or service robustness

31. Product or service life stages

32. Products in Various Stages of Life Cycle
Sales
Growth
Maturity
Decline
CD-ROM
Internet
Introduction
Jet Ski, fax machines
Boeing 727
3 ½ Floppy disks
Flat-screen monitors
Time

33. Standardization Standardization
Extent to which there is absence of variety in a product, service or process
Standardized products are immediately available to customers

34. Advantages of Standardization (1 of 2)
Fewer parts to deal with in inventory & manufacturing
Design costs are generally lower
Reduced training costs and time
More routine purchasing, handling, and inspection procedures

35. Advantages of Standardization (2 of 2)
Orders fillable from inventory
Opportunities for long production runs and automation
Need for fewer parts justifies increased expenditures on perfecting designs and improving quality control procedures.

36. Disadvantages of Standardization
Designs may be frozen with too many imperfections remaining.
High cost of design changes increases resistance to improvements.
Decreased variety results in less consumer appeal.

37. Designing for Mass Customization
Mass customization: A strategy of producing basically standardized goods or services, but incorporating some degree of customization in the final product or service
Facilitating Techniques
Delayed differentiation
Modular design

38. Delayed Differentiation
Delayed differentiation is the process of producing but not quite completing a product or service until customer preferences or specifications are known
It is a postponement tactic (produce a piece of furniture, but do not stain it until the customer chooses the stain)

39. Modular Design
Modular design is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged.
Advantages
easier diagnosis and remedy of failures
easier repair and replacement
simplification of manufacturing and assembly
And it adds flexibility to both production and marketing
Disadvantages
Limited number of possible product configurations
Limited ability to repair a faulty module; the entire module must be scrapped

40. Reliability
Reliability: The ability of a product, part or system to perform its intended function under a prescribed set of conditions over a specified length of time. It is expressed as the probability that the product performs its intended function for a specified length of time
Normal Operating Conditions: the set of conditions under which an item’s reliability is specified
Maintainability: Ease and/or cost of maintaining/ repairing product

41. Computing Reliability (1 of 2)
Components in series
0.90
0.90 x 0.90 = 0.81

42. Computing Reliability (2 of 2)
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

43. Robust Design Robust design
A design that results in products or services that can function over a broad range of conditions
A robust product is to be designed that is insensitive to environmental factors either in manufacturing or in use
Pertains to product as well as process design
Consider the following automobiles:
Ferrari 599
Toyota Avalon
Which is design is more robust?

44. Design for Robustness Product can fail due to poor design quality
Products are subjected to many conditions
Product is designed so that small variations in production or assembly do not adversely affect the product
Design products for consistent performance
Robust design studies
Controllable factors - under designer’s control
Uncontrollable factors - from user or environment
Central feature is parameter design

45. Degree of Newness
Product or service design changes can be in the form of:
Modification of an existing product or service
Expansion of an existing product line or service offering
Clone of a competitor’s product or service
New product or service
The degree of change affects the newness of the product or service to the market and to the organization
Risks and benefits?

46. Percent of Sales From New Product

47. Phases in Design & Development
Idea generation
Feasibility analysis
Product specifications
Process specifications
Prototype development
Design review
Market test
Product introduction
Follow-up evaluation

48. Main Phases in the Design Process
Idea Generation — Product Concept
Feasibility Study — Performance Specifications
Preliminary Design — Prototype
Final Design — Final Design Specifications
Process Planning — Manufacturing Specifications

49. 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

50. Step 1: Idea Generation (1 of 5)
Suppliers, distributors, salespersons, competitors
Trade journals and other published material
Warranty claims, customer complaints, failures
Customer surveys, focus groups, interviews
Field testing, trial users
Research and development

51. Idea Generation (2 of 5) Supply-chain based Competitor based
Research based

52. Supply-Chain Based (3 of 5)
Ideas can come from anywhere in the supply chain:
Customers
Suppliers
Distributors
Employees
Maintenance and repair personnel

53. Competitor-Based (4 of 5)
By studying how a competitor operates and its products and services, many useful ideas can be generated
Reverse engineering
Dismantling and inspecting a competitor’s product to discover product improvements

54. Research Based (5 of 5) Research and Development (R&D)
Organized efforts to increase scientific knowledge or product innovation & may involve:
Basic research
Has the objective of advancing the state of knowledge about a subject without any near-term expectations of commercial applications
Applied research
Has the objective of achieving commercial applications
Development
Converts the results of applied research into useful commercial applications.

55. Tools of Idea Generation
Perceptual Maps
Visual comparison of customer perceptions
Benchmarking
Comparing product/service against best-in-class
Reverse engineering
Dismantling and inspecting a competitor’s product to discover product improvements

56. Step 2: Feasibility Study
Market Analysis
Economic Analysis
Technical / Strategic Analysis
Performance Specifications are written for product concepts that pass the feasibility study

57. Step 3: Preliminary Design
Create form & functional design
Build prototype
Test prototype
Revise prototype
Retest

58. 3.1. Form Design (How the Product Looks)
Cellular Personal Safety Alarm
Personal Computer

59. 3.2. Functional Design Relates to how the product performs
Relates to the concept of Reliability and Maintainability

60. 3.3. Production Design Part of the preliminary design phase
Simplification
Standardization
Mass customization

61. 3.3.1. Design Simplification (1 of 3)
(a) The original design
Assembly using
common fasteners

62. 3.3.1. Design Simplification (2 of 3)
(b) Revised design
One-piece base & elimination of fasteners
(a) The original design
Assembly using
common fasteners

63. 3.3.1. Design Simplification (3 of 3)
(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

64. Steps 4&5: 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

65. Product Strategy Options
Product differentiation
Low cost
Rapid response (product life cycles are becoming shorter, therefore faster developers of new products gain on slower developers and obtain a competitive advantage)
Ask students to identify products or companies which rely on each of these strategies.

66. Improving the Design Process
Design teams & concurrent design
Design for manufacturing Manufacturability
Component commonality
Design for assembly
Design for disassembly
Design to prevent failures and ensure value
Design for the environment
Measure design quality
Utilize quality function deployment
Utilize Computer Aided Design
Design for robustness
Engage in collaborative design

67. Organizing for Product Development (1 of 2)
Historically – distinct departments
Duties and responsibilities are defined
Difficult to foster forward thinking
Today – team approach
Representatives from all disciplines or functions
Concurrent engineering – cross functional team

68. Organizing for Product Development (2 of 2)
Traditional Approach
“We design it, you build it” or “Over the wall”
Concurrent Engineering
“Let’s work together simultaneously”

69. “Over the Wall” Approach
Design
Mfg
New
Product

70. Breaking Down Barriers to Effective Design

71. Design Teams
Marketing, manufacturing, engineering purchasing personnel
Suppliers, dealers, customers
Lawyers, accountants, insurance companies

72. Concurrent Engineering: Defined
Concurrent engineering is the bringing together of personnel from various functions together early in the design phase.
CE can be defined as the simultaneous development of project design functions, with open and interactive communication existing among all team members for the purposes of reducing time to market, decreasing cost, and improving quality and reliability
Time savings are created by performing activities in parallel

73. DFM and DFA
Design for manufacturing (DFM)
The designing of products that are compatible with an organization’s abilities
Design for assembly (DFA)
Design that focuses on:
reducing the number of parts in a product
the assembly methods
the sequence of assembly operations

74. Design for Manufacturing and Assembly
Design a product for easy & economical production
Incorporate production design early in the design phase
Taking into account the manufacturing capabilities (equipment, skills, types of materials, schedules, technologies) of the organization in designing goods
The more general term “design for operations” encompasses services as well as manufacturing
Improves quality, productivity and reduces costs
Shortens time to design and manufacture

75. DFMA Guidelines
Simplify products by reducing the number of separate parts
Minimize the number of parts, tools, fasteners, and assemblies
Use standard parts and repeatable processes
Design parts for many uses
Incorporate modularity in design
Design for ease of assembly, minimal handling
Allow for efficient testing and parts replacement

76. Design for Manufacturing and Assembly
DFMA software allows designers to examine the integration of part designs before the product is manufactured.
Answers are required for such questions as:
During the operation of the product, does the part move relative to all other parts already assembled?
Must the part be of a different material or be isolated from other parts already assembled?
Must the part be separate from all other parts to allow the disassembly of the product for adjustment or maintenance?

77. Manufacturability Manufacturability
Ease of fabrication and/or assembly
It has important implications for
Cost
Productivity
Quality

78. Component Commonality
When products have a high degree of similarity in features and components, a part can be used in multiple products
Benefits:
Savings in design time
Standard training for assembly and installation
Opportunities to buy in bulk from suppliers
Commonality of parts for repair
Fewer inventory items must be handled

79. 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
Value Analysis (VA)

80. Fault Tree for Potato Chips

81. 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

82. Designing for the Customer: Quality Function Deployment (QFD)
QFD is an approach that integrates the “voice of the customer” into the product and service development process. Translates customer preferences into specific product characteristics
Enables to design for the customer
Cross functional teams are used
Displays requirements in matrix diagrams
First matrix called “house of quality”
Series of connected houses

83. Quality Function Deployment Process
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

84. House of Quality (1 of 2) Correlation matrix Design requirements
Customer requirements
Target values
Relationship matrix
Competitive assessment
Importance 1 2 3 4 5 6

85. House of Quality (2of 2)

86. 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

87. 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

88. Technology in Design: Computer Aided Design (CAD)
Product design using computer graphics
Designing products at a computer terminal or work station
Design engineer develops rough sketch of product
Uses computer to draw product
Often used with CAM
© 1995 Corel Corp.

89. Technology in Design CAD - Computer Aided Design
Assists in creating and modifying designs
CAE - Computer Aided Engineering
Tests & analyzes designs on computer screen
CAM refers to the use of specialized
computer programs to direct and
control manufacturing equipment
CAD/CAM - Design & Manufacturing
Automatically converts CAD data into processing instructions for computer controlled equipment

90. Benefits of CAD (1 of 2) Produces better designs faster
Increases the productivity of designers, 3 to 10 times and thus allows more time for designers to work on creative projects
Reduces costs and increases product quality
Creates a database for manufacturing information on product specifications (Builds database of designs and creates documentation to support them)
Shortens time to market

91. Benefits of CAD (1 of 2) Reduces time to manufacture
Enlarges design possibilities
Enhances communication and promotes innovation in design teams
Provides the possibility of engineering and cost analysis on proposed designs
CAD that includes finite element analysis (FEA) can significantly reduce time to market
Enables developers to perform simulations that aid in the design, analysis, and commercialization of new products

92. Consistency is Important in Design
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

93. Kano Model Basic quality Performance quality Excitement quality
Refers to customer requirements that have only limited effect on customer satisfaction if present, but lead to dissatisfaction if absent
Performance quality
Refers to customer requirements that generate satisfaction or dissatisfaction in proportion to their level of functionality and appeal
Excitement quality
Refers to a feature or attribute that was unexpected by the customer and causes excitement

94. The Kano Model

95. Trends in Product & Service Design (1 of 2)
Increased emphasis on or attention to:
Customer satisfaction (by translating customer wants and needs into product and service requirements)
Reducing time to introduce new product or service
Reducing time to produce product

96. Trends in Product & Service Design (2 of 2)
Increased emphasis on or attention to:
The organization’s capabilities to produce or deliver the item
Refining existing products and services
Environmental concerns
Designing products & services that are “user friendly”
Designing products that use less material

97. Global Product Design Virtual teams
Uses combined efforts of a team of designers working in different countries
Provides a range of comparative advantages over traditional teams such as:
Engaging the best human resources around the world
Possibly operating on a 24-hr basis
Global customer needs assessment
Global design can increase marketability

98. Design Guidelines (1 of 2)
Produce designs that are consistent with the goals of the company
Take into account the operations capabilities of the organization in order to achieve designs that fit with those capabilities
Take into account the cultural differences related to product design (for multinationals)
Give customers the value they expect
Make health and safety a primary concern
Consider potential harm to the environment

99. Design Quidelines (2 of 2)
Increased emphasis on components commonality
Package products and services
Use multiple-use platforms
Consider tactics for mass customization
Look for continual improvement
Shorten time to market