1. Product and Service Design
CHAPTER 4
Product and Service Design

2. 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

3. 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

4. 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”

5. Objectives of Product & Service Design
Design a product or service that will meet (or exceed) customer expectations, within cost or budget, that takes into account the capabilities of operations and the fact that alternative designs may be more or less efficient to produce or provide.
Satisfy customers while making a reasonable profit.
Consider organization capabilities when designing a product. DFO--Design For Operations
“manufacturability”

6. Ideas for New or Redesigned Products and Services
Motivation for design and redesign comes from many directions:
Employees
Customers
Competition
Suppliers
Governmental Reg.
Product Liability

7. 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.

8. Product & Service Design Issues
Life Cycles
Standardization
Mass Customization
“delayed differentiation”
“modular design”
Reliability
Robust Design

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

10. 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.

11. 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.

12. 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

13. Manufacturing Design Production Capabilities--DFM,DFA Remanufacturing
Recycling--DFR
Concurrent Engineering
Computer-Aided Design
Component Commonality

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

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

16. 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

17. SERVICE DESIGN Differences between Service and Product Design:
focuses on more intangible factors
less latitude in finding and correcting errors before customer does
services can’t be inventoried
highly visible to consumers and must be designed accordingly
some services have low barriers to entry & exit
location often crucial

18. SERVICE DESIGN
Begins with choice of service strategy and extends to design of the service delivery system.
ISSUES:
Degree of variation in service requirements
Degree of customer contact and customer involvement in the delivery system
Useful tool Service Blueprinting

19. QUALITY FUNCTION DEPLOYMENT “House of Quality”
Correlation
matrix
Design
requirements
Customer
require-
ments
Relationship
matrix
Competitive
assessment
Specifications or
target values

20. 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
House of Quality Example
IRWIN
Ó a Times Mirror Higher Education Group, Inc. company, 1996

21. 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

22. MEASURING RELIABILITY
Two alternative approaches to operationally defining reliability:
The probability the product or system will function on any given trial--”Point-in-Time”
The probability that the product or system will function for a given length of time--”Length of Service”

23. 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