prod&serv design

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SYSTEMS DESIGN

PART

THREE•Chapter Four Product and ServiceDesign

•Chapter Four Supplement Reliability

•Chapter Five Capacity Planning

•Chapter Five Supplement DecisionTheory

•Chapter Six Process Design and FacilityLayout

•Chapter Six Supplement Linear

Programming•Chapter Seven Design of Work Systems

•Chapter Seven SupplementLearning Curves

•Chapter Eight Location Planning andAnalysis

•Chapter Eight Supplement TheTransportation Model



• Major factors in strategy – Cost

– Quality

–Time-to-market

– Customer satisfaction

– Competitive advantage

Product and Service Design



Trends in Product & Service Design

• Increased emphasis on or attention to: – Customer satisfaction

– Reducing time to introduce new productor service

– Reducing time to produce product



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



•Translate customer wants and needs intoproduct 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

Product or Service Design Activities



Design

• Be competitive

• Increase business growth & profits

• Avoid downsizing with development of

new products

• Improve product quality

• Achieve cost reductions in labor or materials



• Development time and cost• Product or service cost

• Resulting product or service quality

• Capability to produce or deliver a givenproduct or service

Service Design



• Taking into account the capabilities of

the organization in designing goods and

services

Design For Operations



Kano Model

Customer Needs

C u s t o m e r

S a t i s f a c t i

Excitement

ExpectedMust Have

The Kano Model



• Internal – Employees

– Marketing department

– R&D department• External

– Customers (QFD)

– Competitors

– Suppliers

and Services



• Quality Function Deployment – Voice of the customer

– House of quality

Quality Function Deployment

QFD: An approach that integratesthe “voice of the customer” into theproduct and service developmentprocess.



Research & Development (R&D)

• Organized efforts to increase scientificknowledge 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.



• Legal – FDA, OSHA, IRS

– Product liability

– Uniform commercial code

• Ethical – Releasing products with defects

• Environmental

– EPA

Issues



Product Design

• Product Life Cycles

• Robust Design

• Concurrent Engineering

• Computer-Aided Design

• Modular Design



Life Cycles of Products or Services

Time

Incubation

Growth

Maturity

Saturation

Decline

D e m a

n d

Figure 4-2



(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.



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.



Mass customization: – A strategy of producing standardized

goods or services, but incorporating some

degree degree of customization

– Delayed differentiation

– Modular design

Mass Customization



Delayed differentiation is apostponement tactic

– Producing but not quite completing a

product or service until customer preferences or specifications are known

Delayed Differentiation



Modular Design

Modular design is a form of standardization inwhich component parts are subdivided intomodules that are easily replaced or interchanged. It allows:

– easier diagnosis and remedy of failures

– easier repair and replacement

– simplification of manufacturing and assembly



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 isspecified



Improving Reliability

• Component design• Production/assembly techniques

• Testing

• Redundancy/backup

• Preventive maintenance procedures

• User education

• System design



Robust Design: Design that results inproducts or services that can function

over a broad range of conditions

Robust Design



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



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 theorganization’s manufacturing capabilities when

designing a product.

The more general term design for operations encompasses services as well as manufacturing



Concurrent Engineering

Concurrent engineering

is the bringing together

of engineering design and

manufacturing personnel

early in the design phase.



“Over the Wall” Approach

Desig

nMfg

New

Product



Computer-Aided Design

• Computer-Aided Design (CAD) is productdesign using computer graphics.

– increases productivity of designers, 3 to 10 times

– creates a database for manufacturing informationon product specifications

– provides possibility of engineering and cost

analysis on proposed designs



Manufacturability

• Manufacturability is the ease of fabrication

and/or assembly which is important for:

– Cost

– Productivity

– Quality



• Recycling: recovering materials for future use

• Recycling reasons

– Cost savings – Environment concerns

– Environment regulations

Recycling



• 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

Differences Between Product

and Service Design

Service Variability & Customer



Service Variability & Customer

Influence Service Design

Variability

in

Service

Require-ments

Figure 4-3

Degree of Contact with Customer

High

Moderate

Low

None

None Low Moderate High

Telephone

Purchase

Dept. Store

Purchase

Customized

Clothing

Internet

Purchase



The House of Quality

Correlation

matrix

Design

requirements

Customer

require-

ments

Competitive

assessment

Relationship

matrix

Specifications

or

target values

Figure 4-5



Customer

Requirements

I m p o r t a n c e t o C u s t .

Easy to close

Stays open on a hill

Easy to open

Doesn’t leak in rain

No road noise

Importance weighting

Engineering

Characteristics

Energyneede d

toclosedoor

Checkforce

onlevel

ground

Energyneede d

toopendoor

Waterresistance

10 6 6 9 2 3

7

5

3

3

2

X

X

X

X

X

Correlation:Strong positive

Positive

NegativeStrong negative

X*

Competitive evaluation

X = UsA = Comp. AB = Comp. B(5 is best)

1 2 3 4 5

X AB

X AB

XAB

A X B

X A B

Relationships:

Strong = 9

Medium = 3

Small = 1Target values

Reduceene

rgy

levelto7.5

ft/l

b

Reduceforce

to9lb.

Reduceene

rgy

to7.5ft/lb.

Maintain

currentlevel

Technical evaluation

(5 is best)

54321

B

A

X

BA

X B

A

X

B

X

A

BXABA

X

Doorseal

resistance

Accoust.Trans.

Window

Maintain

currentlevel

Maintain

currentlevel

House of Quality Example



• 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

Operations Strategy

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