Chapter 4. Product and Service Design. Learning Objectives. You should be able to: Explain the strategic importance of product and service design Identify some key reasons for design or redesign Recognize the key questions of product and service design
Product and Service
Demand profile (short/long-term, slow/fast growth)
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
What level of quality is appropriate?
Fit with current offering
Does it make sense from an economic standpoint?
Liability issues, ethical considerations, sustainability issues, costs and profitsKey Questions for the Organization
Feasibility analysis (marketing, finance, accounting, engineering, operations)
Demand, development and production cost, potential profit, technical analysis, capacity req., skills needed, fit with mission.
Product specifications (legal, marketing, operations)
What’s needed to meet customer wants
Process specifications (accounting and operations)
Weigh alternative processes in terms of cost, resources, profit, quality
Few units are made to find problems with the product or process
Changes are made or project is abandoned
Determine customer acceptance. If unsuccessful return to Design-review.
Product introduction (marketing)
Follow-up evaluation (marketing)
Based on feedback changes may be made.Phases in ProductsDesign & Development
Ideas can come from anywhere in the supply chain: engineering, operations)
Surveys, focus groups, complaints, suggestions
EmployeesIdea GenerationSupply-Chain Based
Research and Development (R&D) engineering, operations)
Organized efforts to increase scientific knowledge or product innovation
Cost is high (IBM $5 billion/year, HP $4 billion/year, Toshiba $3 billion/year)
Has the objective of advancing the state of knowledge about a subject without any near-term expectation of commercial applications
Has the objective of achieving commercial applications
Converts the results of applied research into useful commercial applications.Idea GenerationResearch Based
Discontinue? Replace? Find new uses
high cost, low demand, possibly quality issues, getting first into the market
lower cost, increased demand, higher reliability
low cost, high productivity, standardization, few design changes are needed , higher reliability
Mass customization engineering, operations)
A strategy of producing basically standardized goods or services, but incorporating some degree of customization in the final product or service
Modular designDesigning for Mass Customization
Delayed Differentiation engineering, operations)
The process of producing, but not quite completing, a product or service until customer preferences are known
e.g., Produce a piece of furniture, but do not stain it; the customer chooses the stain
Concurrent engineering engineering, operations)
Computer-Assisted Design (CAD)
Component commonalityDesigning (products) for Production*
Concurrent engineering engineering, operations)
Bringing design and manufacturing engineers together early in the design phase
manufacturing personnel, marketing and purchasing personnel in loosely integrated cross-functional teams
Views of suppliers and customers may also be sought
is to achieve product designs that reflect customer wants as well as manufacturing capabilities1. Concurrent Engineering*
Increases designers’ productivity. engineering, operations)
Directly supplies information to manufacturing (dimensions, material, tolerance).
Some systems can perform engineering and cost analysis.
Shortens time-to-market2. Computer Aided Design (CAD)*
Designers must take into account production capabilities engineering, operations)
Types of materials
When opportunities and capabilities do not match management must consider expanding or changing capabilities.
Design For Manufacturing (DFM)
Design For Assembly (DFA)
Manufacturability3. Production Requirements*
When products have a high degree of similarity in features and components, a part can be used in multiple products (HP’s universal power source)
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 handled4. Component Commonality*
Service and components, a part can be used in multiple products (HP’s universal power source)
Something that is done to, or for, a customer
Service delivery system
The facilities, processes, and skills needed to provide a service
The combination of goods and services provided to a customer
The physical resources needed to perform the service, accompanying goods, and the explicit (core features) and implicit (ancillary features) services includedService Design-Definitions
Services cannot be stored. Balancing supply and demand. Possible (e.g., doctor’s appointments) vs. impossible (e.g., emergency room).
Difficult to describe/design:
especially when there is direct contact with the customer.
Hand in to me at the end of class.