mod-1-4-product-design (1).ppt

8/18/2019 MOD-1-4-Product-Design (1).PPT

1/103

Module-1: Operations Management for Competitive Advantage

Mod:1-4

Product & Service Design

(Deploying the Voice of the Customer)


2/103

Learning Outcomes

After going through this topic, you should be able to:

• Appreciate the importance of design in business

• Understand the role of concurrent design vis-!-vis traditional

approach"

• Understand the role of design-for-# methodologies• Appreciate the importance of $uality function deployment

• Appreciate the importance of collaborative product commerce

• Appreciate the importance of technology in product design

and product lifecycle management %&'M(


3/103

It all starts with….

A Design


4/103

Yet….Design?!What is it?

Why me? What is my role?

Why in a B-School?

ngineering schools What is

so new a"out Design?


5/103

Philip Kotler and G. Alexander Rath, 1984

Journal of Business Strategy, Vol. 5 Iss: 2 pp. 16-21

Design A #ower$ul "ut %eglecte&

Strategic 'ool

“Design is a potent strategic tool that companies can use to gain a

sustainable competitive advantage. Yet most companies neglect

design as a strategy tool. What they don't realize is that good

design can enhance products, environment, communications, and

corporate identity.”


6/103

It is heartening, therefore, that an increasing percent of business school resources are beingdevoted to innovation: innovation labs, digital

initiatives, and product design anddevelopment requirements. Stanford’sbusiness school has the Hasso PlattnerInstitute of Design…..

@KIIT [2005.2009.!

Center for Building Competene in

!rodut "ifeyle #anagement to foster #ulti-disiplinary interations

)OU*C+: he usiness of usiness )chools: *estoring a .ocus on Competing to /in, by (o"ert

Simons Harvard Business chool, !apitalism and ociety, "ol. # $%&(), *ss. , +rt. %


7/103

0

)A%A* +(A'I,I'Y

Create the enabling environment:• +ncourage Creativity

Ability to combine ideas in ne2 2ays to solve problems and e#ploitopportunities

• )upport 3nnovation )uccessful application of ne2 ideas in the form of ne2 products, services 4

processes

• hrough 5esign

&urposive application of creativity throughout the process of innovation

)OU*C+: ruce, M6 and 76 essant, 8/hat is design9, 5esign in usiness: )trategic3nnovation through 5esign, &rentice-;all


8/103

>

&A*3A' ?3+/) O. ;+ 5+)3@

&*OC+))

3f design is seen asB66

• 3nventive ideas Then it may fail to meet the users needs and may not

be accepted

• &rovince of specialists*45 )cientists

Then it may lack involvement of others

5esign must be seen as a process


9/103

&roduct 5esign

)pecifies materials)pecifies materials

5etermines dimensions 45etermines dimensions 4tolerancestolerances

5efines appearance5efines appearance

)ets performance)ets performancestandardsstandards


10/103

)ervice 5esign)pecifies 2hat the customer is to)pecifies 2hat the customer is to

e#periencee#perience

&hysical items&hysical items

enefits to the human sensesenefits to the human senses

&sychological&sychological benefits benefits


11/103

An +ffective 5esign &rocess

Matches productservice characteristicsMatches productservice characteristics

2ith customer needs2ith customer needsMeets customer re$uirements in simplest,Meets customer re$uirements in simplest,

most cost-effective manner most cost-effective manner

*educes time to marDet*educes time to marDet

MinimiEes revisionsMinimiEes revisions


12/103

• /hat the customer

2anted

ource !hapter on uperior products, services and processes by B. Wa-hlu

he traditional methods/


13/103

• /hat marDetingunderstood




14/103

• /hat the designersdeveloped




15/103

• /hat manufacturingmade




16/103

• /hat the customer 2as left 2ith




17/103

+ross $unctionalteams relying on

D matrices

/re0ent costly

errors such asthese



18/103

3mproving the 5esign &rocess is

importantB

T di i l h d


19/103

.igure F6G reaDing 5o2n arriers to+ffective 5esign

Traditional methods…

Improved methods…


20/103

Design $or )anu$actura"ility• 'ra&itional A//roach 1We &esign it2 you "uil& it3 or 1O0er the wall3

• +oncurrent ngineering

1Let4s wor5 together simultaneously3


21/103

3mproving the 5esign &rocess

5esign teams5esign teams

Concurrent designConcurrent design

5esign for manufacture 4 assembly5esign for manufacture 4 assembly *evie2ing 5esigns to prevent failures and ensure value*evie2ing 5esigns to prevent failures and ensure value

5esign for environment5esign for environment

Measure design $ualityMeasure design $uality UtiliEe $uality function deploymentUtiliEe $uality function deployment

5esign for robustness5esign for robustness

+ngage in collaborative design+ngage in collaborative design


22/103

An +ffective 5esign &rocess

Matches productservice characteristicsMatches productservice characteristics

2ith customer needs2ith customer needsMeets customer re$uirements in simplest,Meets customer re$uirements in simplest,

most cost-effective manner most cost-effective manner

*educes time to marDet*educes time to marDetMinimiEes revisionsMinimiEes revisions


23/103

)tages in the

5esign &rocess 3dea @eneration3dea @eneration H &roduct Concept H &roduct Concept

.easibility )tudy.easibility )tudy H &erformance )pecifications H &erformance )pecifications

&reliminary 5esign&reliminary 5esign H &rototype H &rototype

.inal 5esign.inal 5esign H .inal 5esign )pecifications H .inal 5esign )pecifications

&rocess &lanning&rocess &lanning H Manufacturing )pecifications H Manufacturing )pecifications

• +once/t Design


24/103

• +once/t Design

I&ea generation$0erceptual maps,benchmar-ing 1 reverseengineering)

easi"ility stu&y$2ar-et, economic,technical 1 strategicanalyses)

• #reliminary &esign

orm &esign

unctional &esign

#ro&uction &esign

• inal &esign

#rocess /lan

The Desig

n Process 3dea @eneration

.easibility )tudy

.orm

5esign

.unctional

5esign

&roduction

5esign

&ilot-run 4

.inal ests

e2 &roduct

)ervice 'aunch

Customers)uppliers * 4 5

MarDetingCompetitors

&roduct or )ervice Concept

&erformance )pecifications

*evising and esting

of &rototypes

5esign

)pecifications

Manufacturing or

5elivery

)pecifications

.inal 5esign 4 &rocess plans

.igure F61: *ussell 4 aylor .igure F61: *ussell 4 aylor


25/103

3dea @eneration

)uppliers, distributors, salespersons)uppliers, distributors, salespersons

rade Iournals and other published materialrade Iournals and other published material

/arranty claims, customer/arranty claims, customer

complaints, failurescomplaints, failures Customer surveys, focusCustomer surveys, focus

groups, intervie2sgroups, intervie2s

.ield testing, trial users.ield testing, trial users *esearch and development*esearch and development


26/103

5esign eams

MarDeting, manufacturing,MarDeting, manufacturing,

engineeringengineering

)uppliers, dealers, customers)uppliers, dealers, customers

'a2yers, accountants,'a2yers, accountants,

insurance companiesinsurance companies


27/103

Concurrent 5esign

*mproves 3uality o4 early design decisions *mproves 3uality o4 early design decisions Decentralized 5 suppliers complete detailed Decentralized 5 suppliers complete detailed

designdesign *ncorporates production process *ncorporates production process cheduling and management can becheduling and management can be

comple6 as tas-s are done in parallel comple6 as tas-s are done in parallel


28/103

@eneral &erformance

)pecifications3nstructions to supplier:3nstructions to supplier:

885esign a set of braDes that can stop a


29/103

5esign for

Manufacture and Assembly5esign a product for easy5esign a product for easy

4 economical production4 economical production 3ncorporate production3ncorporate production

design early in the design phasedesign early in the design phase

3mproves $uality and reduces costs3mproves $uality and reduces costs

)hortens time to design and manufacture)hortens time to design and manufacture


30/103

5.M @uidelines

1616 MinimiEe the number of parts, tools,MinimiEe the number of parts, tools,fasteners, and assembliesfasteners, and assemblies


31/103


32/103

?alue Analysis

?alue +ngineering"*atio of value cost*atio of value cost

Assessment of value :Assessment of value :16 Can 2e do 2ithout it916 Can 2e do 2ithout it9


33/103

5esign for +nvironment

5esign from recycled material5esign from recycled material

Use materials 2hich can be recycledUse materials 2hich can be recycled

5esign for ease of repair 5esign for ease of repair

MinimiEe pacDagingMinimiEe pacDaging

MinimiEe material 4 energyMinimiEe material 4 energy

used during manufacture, consumptionused during manufacture, consumption4 disposal4 disposal


34/103

.igure F6J 5esign for +nvironment


35/103

)ustainability

• Ability to meet present needs 2ithout compromising thoseof future generations

• @reen product design

Use fe2er materials Use recycled materials or recovered components

5ont assume natural materials are al2ays better

5ont forget energy consumption

+#tend useful life of product

3nvolve entire supply chain Change paradigm of design

B00, ource Adapted from the usiness )ocial *esponsibility /eb site, 2226bsr6org, accessed April 1,


36/103

Metrics for 5esign Nuality

1616 &ercent of revenue from ne2 products or&ercent of revenue from ne2 products orservicesservices


37/103


38/103

+ross $unctionalteams relying on

D matrices

/re0ent costly

errors such asthese


Recall...


39/103

Nuality .unction 5eployment

N.5"ranslates the 8voice of the customer intoranslates the 8voice of the customer into

technical design re$uirementstechnical design re$uirements

5isplays re$uirements in matri# diagrams5isplays re$uirements in matri# diagrams

.irst matri# called 8house of $uality.irst matri# called 8house of $uality

)eries of connected houses)eries of connected houses


40/103

;ouse of NualityClicD here"

http://mod-1-4-supplement-hoq.ppt/http://mod-1-4-supplement-hoq.ppt/http://mod-1-4-supplement-hoq.ppt/http://mod-1-4-supplement-hoq.ppt/


41/103

)eries of N.5 ;ouses


42/103

)eries of N.5 ;ouses

C u s t o m e r

r e $ u i r e m e n t s

;ous;ouse ofe of

$ualit$ualit

yy

&roduct

characteristics

A-1

& r o d u c t

c h a r a c t e r i s t i c s

&arts&artsdeploymdeploym

entent

&art characteristics

A-<

& a r t


&rocess&rocess plannin plannin

gg

&rocess

characteristics

A-F

& r o c e s s


OperatingOperating

re$uiremere$uirementsnts

Operations

A-G

.igure F61F.igure F61F


43/103

enefits of N.5

&romotes better understanding of customer&romotes better understanding of customerdemandsdemands

&romotes better understanding of design&romotes better understanding of design

interactionsinteractions 3nvolves manufacturing in the3nvolves manufacturing in the

design processdesign process

reaDs do2n barriers bet2eenreaDs do2n barriers bet2eenfunctions and departmentsfunctions and departments

&rovides documentation of&rovides documentation ofthe design processthe design process


44/103


45/103

Consistency is 3mportant

Consistent errors are easier to correctConsistent errors are easier to correctthan random errorsthan random errors

&arts 2ithin tolerances&arts 2ithin tolerancesmay yield assembliesmay yield assemblies2hich arent2hich arent

Consumers preferConsumers prefer product characteristics product characteristicsnear their ideal valuesnear their ideal values


46/103

echnology in 5esign

CA5 - Computer Aided 5esignCA5 - Computer Aided 5esign Assists in creating andAssists in creating and

modifying designsmodifying designs

CA+ - Computer AidedCA+ - Computer Aided+ngineering+ngineering ests 4 analyEes designsests 4 analyEes designs

on computer screenon computer screen

CA5CAM - 5esign 4 ManufacturingCA5CAM - 5esign 4 Manufacturing Automatically converts CA5 data into processingAutomatically converts CA5 data into processing

instructions for computer controlled e$uipmentinstructions for computer controlled e$uipment


47/103

enefits of CA5

&roduces better designs faster &roduces better designs faster

uilds database of designs and createsuilds database of designs and creates

documentation to support themdocumentation to support them

)hortens time to marDet)hortens time to marDet *educes time to manufacture*educes time to manufacture

+nlarges design possibilities+nlarges design possibilities

+nhances communication and promotes+nhances communication and promotesinnovation in design teamsinnovation in design teams


48/103

Collaborative &roduct

Commerce

)hare and 2orD on design files in real time)hare and 2orD on design files in real time

from physically separate locations,from physically separate locations,typically over the internettypically over the internet

Accelerates product developmentAccelerates product development

;elps resolve product launch issues;elps resolve product launch issues 3mproves the $uality of design3mproves the $uality of design


49/103


50/103

L=

A//en&i6 - I

unctional Design

#ro&uction Design

inal Design 7 #rocess #lans

acD toBacD toB

he 5esign &rocesshe 5esign &rocess


51/103

.unctional 5esign

;o2 the &roduct &erforms"*eliability*eliability

&robability product performs intended&robability product performs intended

function for specified length of timefunction for specified length of time

MaintainabilityMaintainability

+ase andor cost of maintainingrepairing+ase andor cost of maintainingrepairing

product product


52/103

Computing *eliability


53/103


=6P= =6P= =6P= # =6P= R =6>1=6P= # =6P= R =6>1

Components in seriesComponents in series


54/103


=6P= =6P= =6P= # =6P= R =6>1=6P= # =6P= R =6>1

Components in seriesComponents in series

)ystem reliability is a product of)ystem reliability is a product of

part reliability: part reliability:

* * ss R * R * 11"* "*


55/103


=6PL S =6P=1-=6PL" R =6PPL=6PL S =6P=1-=6PL" R =6PPL

Components in parallelComponents in parallel

=6PL

=6P=* *


56/103

ote:

)'B 8 9 : $ailure rate

*eliability can also be e#pressed as the length of time a product or*eliability can also be e#pressed as the length of time a product orservice is in operation before it fails6 Calledservice is in operation before it fails6 Called )ean time "etween

$ailure ;)'B


57/103

)ystem Availability

)ystem Availability, )A R)ystem Availability, )A RM.M.

M. S M* M. S M*

)aintaina"ilityalso called serviceability" refers to the ease andor cost 2ithalso called serviceability" refers to the ease andor cost 2ith

2hich a product or service is maintained or repaired62hich a product or service is maintained or repaired6


58/103

)ystem Availability


M. S M* M. S M*

3f your cycle breaDs L times in


59/103

)ystem Availability


M. S M* M. S M*

&*O?35+* &*O?35+* M. ;*"M. ;*" M* ;*"M* ;*"AA J=J= G6=G6=

FJFJ


60/103

)ystem Availability


M. S M* M. S M*

&*O?35+* &*O?35+* M. ;*"M. ;*" M* ;*"M* ;*"AA J=J= G6=G6=

FJFJ


61/103

)ystem Availability

)ystem Availability, )A R)ystem Availability, )A R

M.M.

M. S M* M. S M*

&*O?35+* &*O?35+* M. ;*"M. ;*" M* ;*"M* ;*"

AA J=J= G6=G6=

FJFJ


62/103

&roduction 5esign

;o2 the product 2ill be made" &art of the preliminary design&art of the preliminary design

phase phase )implification)implification

)tandardiEation)tandardiEation

ModularityModularity

#ro&uction Design ;o2 the product 2ill be made9"


63/103

g p " &oor production designs results into poor $uality of products6

Often production people redesign products on the factory shop-floor6

*ecommended approaches to production design are: impli4ication,

tandardization and 2odularity6

• )implification:)implification: *educes the number of parts, subassemblies, and options in a product

3t also avoids tooling, using separate fasteners, and maDing adIustments6

• )tandardiEation:)tandardiEation: maDes possible the interchangeability of parts among products6

*esults in high-volume of production and purchasing, 'o2er investment in

inventory, easier purchasing and material handling less $uality inspections

• Modularity:Modularity: combines standardiEed building blocDs or modules" to createuni$ue finished products6

D) Design $or manu$actura"ility

5esigning a product so that it can be produced easily and economically6


64/103

5esign )implification

a" he original designa" he original design

Assembly usingAssembly using

common fastenerscommon fasteners

.igure F6F.igure F6F


65/103





b" *evised designb" *evised design

One-pieceOne-piece

base 4 base 4

elimination ofelimination of

fastenersfasteners.igure F6F.igure F6F


66/103





b" *evised designb" *evised design

One-pieceOne-piece

base 4 base 4

elimination ofelimination of

fastenersfasteners

c" .inal designc" .inal design

5esign for5esign for

push-and- push-and-

snapsnap

assemblyassembly.igure F6F.igure F6F


67/103


68/103

Appendi# - 33

J>


69/103

JP


70/103


71/103

01


72/103

0<

'(A


73/103

0F

'(A


74/103

0G

'(A


75/103

0L


76/103

@eneric &roduct 5evelopment &rocess


77/103

@eneric &roduct 5evelopment &rocess


78/103


79/103

'y/ical #hases o$ #ro&uct De0elo/ment

• #lanning

• +once/t De0elo/ment

• System-Le0el &esign

• Design Detail

• 'esting an& (e$inement

• #ro&uction (am/-u/

Designing $or the +ustomer


80/103


Quality Function

Deployment

Value Analysis/

Value Engineering

Ideal

Customer

Product

House of Quality


81/103


uality unction De/loyment

• Inter$unctional teams $rom mar5eting2 &esignengineering2 an& manu$acturing

• ,oice o$ the customer

• Couse o$ uality


'h C $ li

><


82/103

'he Couse o$ uality

Customer

*e$uirement

s

3 m p o r t a n c e t o

C u s t 6

+asy to close

)tays open on a hill

+asy to open

5oesnt leaD in rain

o road noise

3mportance 2eighting

+ngineerin

g

Characterist

ics + n e r g y n e e d e d

t o c l o s e d o o r

C h e c D

f o r c e o n

l e v e l

g r o u n d

+ n e r g y n e e d e d

t o o p e n d o o r

/ a t e r r e s i s t a n c e

1= J J P < F

0

L

F

F

<

TT

T

TT

Correlation:)trong positive

&ositive

egative)trong negative

T

Competitive evaluationT R UsA R Comp6 A R Comp6 L is best"

1 < F G L

T A

T A

TA

A T

T A

*elationships:

)trong R P

Medium R F)mall R 1

arget values

* e d u c e e n

e r g y

l e v e l t o 0 6 L f t l b

* e d u c e f o r c e

t o P l b 6

* e d u c e e n

e r g y

t o 0 6 L f t l b 6

M a i n t a i n

c u r r e n t l e v

e l

echnical evaluation

L is best"

LGF<1

A

T

AT

AT

T

A

TAAT

5 o o r s e a l

r e s i s t a n c e

A c c o u s t 6 , r a n s 6

/ i n d o 2

M a i n t a i n

c u r r e n t l e v

e l

M a i n t a i n

c u r r e n t l e v

e l

©he !c"ra#$Hill %ompanies, Inc., &''(

Customer

reuirements

information forms

the !asis for this

matri"# used to

translate them into

operating or

engineering goals$

Customer

reuirements

information forms

the !asis for this

matri"# used totranslate them into

operating or

engineering goals$



83/103

g g

,alue Analysis@,alue ngineering

• Achie0e eui0alent or "etter /er$ormance at a lowercost while maintaining all $unctional reuirements

&e$ine& "y the customer

Does the item ha0e any &esign $eatures that are

not necessary? +an two or more /arts "e com"ine& into one?

Cow can we cut &own the weight?

Are there nonstan&ar& /arts that can "e

eliminate&?


84/103

Design $or )anu$actura"ility• 'ra&itional A//roach

1We &esign it2 you "uil& it3 or 1O0er the wall3

• +oncurrent ngineering

1Let4s wor5 together simultaneously3


85/103


86/103

)easuring #ro&uct De0elo/ment #er$ormance

Measures•.re$6 Of ne2 products introduced•ime to marDet introduction• umber stated and number completed

•Actual versus plan•&ercentage of sales from ne2 products

•.re$6 Of ne2 products introduced•ime to marDet introduction• umber stated and number completed

•Actual versus plan•&ercentage of sales from ne2 products

Time-to-marketTime-to-market

ProductivityProductivity

QualityQuality

•+ngineering hours per proIect•Cost of materials and tooling per proIect

•Actual versus plan

•+ngineering hours per proIect•Cost of materials and tooling per proIect

•Actual versus plan

•Conformance-reliability in use•5esign-performance and customer satisfaction

•Vield-factory and field

•Conformance-reliability in use•5esign-performance and customer satisfaction

•Vield-factory and field

&erformance5imension


87/103

Appendi# 3?

5esign *evie2"

>0

he 5esign &rocess


88/103

&ilot runand final tests

e2 product orservice launch

.inal design.inal design4 process plans4 process plans

3deageneration

.easibilitystudy

&roduct or service&roduct or service

conceptconcept

&erformance&erformance

specificationsspecifications

.unctionaldesign

.orm design

&roduction d

esign

*evising and testing*evising and testing prototypes prototypes

5esign5esignspecificationsspecifications

Manufacturing orManufacturing ordeliverydeliveryspecificationsspecifications

)uppliers)uppliers*45*45

CustomersCustomers

MarDetingMarDeting CompetitorsCompetitors

.igure F61: *ussell 4 aylor

.igure F61: *ussell 4 aylor acD toBacD toB

he 5esign &rocesshe 5esign &rocess

echni$ues for improving the 5esign &rocess


89/103

• +stablishing multifunctional &esign teams

• MaDing design decisions +oncurrently

• Design $or )anu$actura"ility an& Assem"ly

• (e0iewing Designs to prevent failures and ensure value

• Design $or the n0ironment

• )easuring Design uality

• Using uality unction De/loyment

• Design $or (o"ustness

• +ngaging in +olla"orati0e Design

5esign *evie2 to prevent failures and ensure value


90/103

.ailure mode and effects analysis .M+A"• a systematic method of analyEing product failures

.ault tree analysis .A"

• a visual method for analyEing interrelationships amongfailures

?alue analysis ?A"

• helps eliminate unnecessary features and functions


91/103

5esign *evie2

;ailure 2ode and

tudy interrelationship bet?een 4ailurestudy interrelationship bet?een 4ailures

.M+A for &otato Chips.M+A for &otato Chips


92/103

.M+A for &otato Chips.M+A for &otato Chips

FailureMode

Cause ofFailure

Effect ofFailure

CorrectiveAction

Stale low moisture content

expired shelf life

poor packaging

tastes bad

won’t crunch

thrown out

lost sales

add moisture

cure longer

better package seal

shorter shelf lifeBroken 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


93/103

?alue analysis ?A" by asDing :


94/103

• Can 2e do 2ithout it9

• 5oes it do more than is re$uired9

• 5oes it cost more than it is 2orth9

• Can something else do a better Iob9

• Can it be made by a less costly method tooling material9

• Can it be made cheaper better faster by someone else9

• 3s it an updated versions 9

3s it recyclable biodegradable9

3s the process sustainable9

/ill it use more energy than it is 2orth9

5oes the item or its by-product harm the environment9


95/103

Appendi# ?

)ervice 5esign"

PL

)ervice 5esign

S i d fi D d i i


96/103

• Ser0ice defines a target marDet and its customers e#perience6

• Ser0ice &esign begins 2ith ser0ice conce/t and ends 2ith ser0ice

&eli0ery

• Ser0ice conce/t defines

• he target customer and their desired e#perience

• ;o2 the service differs from others

• ;o2 to compete in the marDetplace

• )ometimes fills the unoccupied niche differs from the generally

accepted mode of operation"

• Ser0ice /ac5age is a bundle of 0hysical items, ensual bene4its, and

0sychological bene4its.

• Ser0ices "lue/rint is a process flo2chart that emphasiEe customer

interaction and service related terms such as 4ailure points, and lines o4

visibility.


97/103

)ervice 5esign &rocess )ervice Concept

5esired arget


98/103

)ervice &acDage

&erformance )pecifications

Customer )ervice

&rovider 5esign )pecifications

5elivery )pecifications

S(,I+

5esired

service e#perience

arget

Customer

&sychological

benefits&hysical

items

)ensual

benefits

Customer

*e$uirements

Customer

e#pectations

Activities .acility&rovider

sDills

Cost 4 time

estimates

5eliverables)chedule 'ocation


99/103


100/103

5 i f ;i h C t t


101/103

5esign for ;igh-Contact

)ervices5+)3@ 5+C3)3O5+)3@ 5+C3)3O ;3@;-COAC )+*?3C+;3@;-COAC )+*?3C+ 'O/-COAC )+*?3C+'O/-COAC )+*?3C+Facility locationFacility location Con%enient to customer Con%enient to customer &ear la!or or&ear la!or or

transportationtransportation

Facility layoutFacility layout 'ust loo( presenta!le#'ust loo( presenta!le#

accommodate customeraccommodate customerneeds# and facilitateneeds# and facilitateinteraction )ith customer interaction )ith customer

Designed for efficiencyDesigned for efficiency

Quality controlQuality control 'ore %aria!le since customer'ore %aria!le since customeris in%ol%ed in process*is in%ol%ed in process*customer e"pectations andcustomer e"pectations and

perceptions of uality mayperceptions of uality maydiffer* customer present )hendiffer* customer present )hendefects occur defects occur

'easured against'easured againstesta!lished standards*esta!lished standards*testing and re)or(testing and re)or(

possi!le to correct defectspossi!le to correct defects

CapacityCapacity E"cess capacity reuired toE"cess capacity reuired tohandle pea(s in demandhandle pea(s in demand

Planned for a%eragePlanned for a%eragedemanddemand

able F6


102/103

5esign for ;igh-Contact

)ervices5+)3@ 5+C3)3O5+)3@ 5+C3)3O ;3@;-COAC )+*?3C+;3@;-COAC )+*?3C+ 'O/-COAC )+*?3C+'O/-COAC )+*?3C++or(er s(ills+or(er s(ills 'ust !e a!le to interact )ell'ust !e a!le to interact )ell

)ith customers and use)ith customers and use ,udgment in decision ma(ing ,udgment in decision ma(ing

Technical s(illsTechnical s(ills

-cheduling-cheduling 'ust accommodate customer'ust accommodate customerscheduleschedule

Customer concerned onlyCustomer concerned only)ith completion date)ith completion date

-er%ice process-er%ice process 'ostly front.room acti%ities*'ostly front.room acti%ities*ser%ice may change duringser%ice may change duringdeli%ery in response todeli%ery in response tocustomer customer

'ostly !ac(.room'ostly !ac(.roomacti%ities* planned andacti%ities* planned ande"ecuted )ith minimale"ecuted )ith minimalinterferenceinterference

-er%ice pac(age-er%ice pac(age Varies )ith customer* includesVaries )ith customer* includesen%ironment as )ell as actualen%ironment as )ell as actualser%iceser%ice

Fi"ed# less e"tensi%eFi"ed# less e"tensi%e

able F6


103/103

(e$erences

16 Operations Management by *oberta )6 *ussell 4 ernard

/6 aylorQ &earson +ducation>. O/erations )anagement $or +om/etiti0e A&0antage by

*ichard 6 Chase, .6 *obert 7acobs, icholas 76 A$uilano,

and itin W Agar2alQ ata Mc@ra2-;ill +leventh

+ditionQ )i#th *eprint "F6 )trategic Operations Management by )teve ro2n,

*ichard 'amming, 7ohn essant and &eter 7onesQ +lsevier

mod-1-4-product-design (1).ppt

Documents