1. SYSTEMS DESIGN PART THREE Chapter Four Product and Service Design
Chapter Four Supplement Reliability
Chapter Five Capacity Planning
Chapter Five Supplement Decision Theory
Chapter Six Process Design and Facility Layout
Chapter Six Supplement Linear Programming
Chapter Seven Design of Work Systems
Chapter Seven Supplement Learning Curves
Chapter Eight Location Planning and Analysis
Chapter Eight Supplement The Transportation Model

2. Product and Service Design
Chapter 4
Product and Service Design

3. Product and Service Design
Major factors in strategy
Cost
Quality
Time-to-market
Customer satisfaction
Competitive advantage

4. Trends in Product & Service Design
Increased emphasis on or attention to:
Customer satisfaction
Reducing time to introduce new product
or service
Reducing time to produce product

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

6. Product or Service Design Activities
Translate customer wants and needs into product and service requirements
Refine existing products and services
Develop new products and services
Formulate quality goals
Formulate cost targets
Construct and test prototypes
Document specifications

7. Reasons for Product or Service Design
Be competitive
Increase business growth & profits
Avoid downsizing with development of new products
Improve product quality
Achieve cost reductions in labor or materials

8. Objectives of Product and Service Design
Development time and cost
Product or service cost
Resulting product or service quality
Capability to produce or deliver a given product or service

9. Design For Operations
Taking into account the capabilities of the organization in designing goods and services

10. The Kano Model

11. Sources of Ideas for Products and Services
Internal
Employees
Marketing department
R&D department
External
Customers (QFD)
Competitors
Suppliers

12. Quality Function Deployment
Voice of the customer
House of quality
QFD: An approach that integrates the “voice of the customer” into the product and service development process.

13. Reverse engineering is the
dismantling and inspecting of a competitor’s product to discover product improvements.

14. Research & Development (R&D)
Organized efforts to increase scientific knowledge or product innovation & may involve:
Basic Research advances knowledge about a subject without near-term expectations of commercial applications.
Applied Research achieves commercial applications.
Development converts results of applied research into commercial applications.

15. Legal, Ethical, and Environmental Issues
FDA, OSHA, IRS
Product liability
Uniform commercial code
Ethical
Releasing products with defects
Environmental
EPA

16. Regulations & Legal Considerations
Product Liability - A manufacturer is liable for any injuries or damages caused by a faulty product.
Uniform Commercial Code - Products carry an implication of merchantability and fitness.

17. Product Design
Product Life Cycles
Robust Design
Concurrent Engineering
Computer-Aided Design
Modular Design

18. Life Cycles of Products or Services
Figure 4-2
Time
Incubation
Growth
Maturity
Saturation
Decline
Demand

19. Advantages of Standardization
Fewer parts to deal with in inventory & manufacturing
Reduced training costs and time
More routine purchasing, handling, and inspection procedures

20. Advantages of Standardization (Cont’d)
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.

21. 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.

22. Mass Customization Mass customization:
A strategy of producing standardized goods or services, but incorporating some degree degree of customization
Delayed differentiation
Modular design

23. Delayed Differentiation
Delayed differentiation is a postponement tactic
Producing but not quite completing a product or service until customer preferences or specifications are known

24. Modular Design
Modular design is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged. It allows:
easier diagnosis and remedy of failures
easier repair and replacement
simplification of manufacturing and assembly

25. Reliability
Reliability: The ability of a product, part, or system to perform its intended function under a prescribed set of conditions
Failure: Situation in which a product, part, or system does not perform as intended
Normal operating conditions: The set of conditions under which an item’s reliability is specified

26. Improving Reliability
Component design
Production/assembly techniques
Testing
Redundancy/backup
Preventive maintenance procedures
User education
System design

27. Robust Design
Robust Design: Design that results in products or services that can function over a broad range of conditions

28. Taguchi Approach Robust Design
Design a robust product
Insensitive to environmental factors either in manufacturing or in use.
Central feature is Parameter Design.
Determines:
factors that are controllable and those not controllable
their optimal levels relative to major product advances

29. Designing for Manufacturing
Beyond the overall objective to achieve customer satisfaction while making a reasonable profit is:
Design for Manufacturing(DFM)
The designers’ consideration of the organization’s manufacturing capabilities when designing a product.
The more general term design for operations encompasses services as well as manufacturing

30. Concurrent Engineering
Concurrent engineering is the bringing together of engineering design and manufacturing personnel early in the design phase.

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

32. Computer-Aided Design
Computer-Aided Design (CAD) is product design using computer graphics.
increases productivity of designers, 3 to 10 times
creates a database for manufacturing information on product specifications
provides possibility of engineering and cost analysis on proposed designs

33. Manufacturability
Manufacturability is the ease of fabrication and/or assembly which is important for:
Cost
Productivity
Quality

34. Product design
Design for manufacturing (DFM)
Design for assembly (DFA)
Design for recycling (DFR)
Remanufacturing
Design for disassembly (DFD)
Robust design

35. Recycling: recovering materials for future use Recycling reasons
Cost savings
Environment concerns
Environment regulations

36. Differences Between Product and Service Design
Tangible – intangible
Services created and delivered at the same time
Services cannot be inventoried
Services highly visible to customers
Services have low barrier to entry
Location important to service

37. Service Variability & Customer Influence Service Design
Figure 4-3
High
Moderate
Low
None
Telephone Purchase
Dept. Store Purchase
Customized Clothing
Internet Purchase
Variability
in Service
Require-ments
Degree of Contact with Customer

38. Quality Function Deployment
Voice of the customer
House of quality
QFD: An approach that integrates the “voice of the customer” into the product and service development process.

39. The House of Quality Figure 4-5 Relationship Correlation matrix Design
requirements
Customer
require-
ments
Competitive
assessment
Relationship
Specifications or
target values

40. House of Quality Example
Customer
Requirements
Importance to Cust.
Easy to close
Stays open on a hill
Easy to open
Doesn’t leak in rain
No road noise
Importance weighting
Engineering Characteristics
Energy needed
to close door
Check force on level ground
to open door
Water resistance 10 6 9 2 3 7 5 X
Correlation:
Strong positive
Positive
Negative
Strong negative *
Competitive evaluation
X = Us
A = Comp. A
B = Comp. B
(5 is best) AB
X AB
XAB
A X B
X A B
Relationships:
Strong = 9
Medium = 3
Small = 1
Target values
Reduce energy
level to 7.5 ft/lb
Reduce force
to 9 lb.
to 7.5 ft/lb.
current level
Maintain
Technical evaluation 4 1 A BA
BXA
Door seal
resistance
Accoust. Trans.
Window

41. Operations Strategy
Shorten time-to-market
Package products and services
Increase emphasis on component commonality
Use multiple-use platforms
Consider tactics for mass customization
Look for continual improvement