Chapter 4 l.jpg
This presentation is the property of its rightful owner.
Sponsored Links
1 / 51

Chapter 4 PowerPoint PPT Presentation


  • 90 Views
  • Uploaded on
  • Presentation posted in: General

Chapter 4. Product/Service Design. Introduction. Progressive Corp. Prior to 1988, carved our profitable niche serving high-risk drivers In 1988 two major events occurred Allstate overtook it in high-risk niche California passed proposition 103

Download Presentation

Chapter 4

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Chapter 4 l.jpg

Chapter 4

Product/Service Design

Chapter 4: Product/Service Design


Introduction l.jpg

Introduction

Chapter 4: Product/Service Design


Progressive corp l.jpg

Progressive Corp.

  • Prior to 1988, carved our profitable niche serving high-risk drivers

  • In 1988 two major events occurred

    • Allstate overtook it in high-risk niche

    • California passed proposition 103

  • Round-the-clock immediate response program adopted

Chapter 4: Product/Service Design


Progressive corp continued l.jpg

Progressive Corp. continued

  • Special vans equipped with air-conditioning, comfortable chairs, desk, and two cell phones.

  • Often settlement check offered on spot

  • 80% of accident victims contacted within 9 hours of learning of accident

  • 70% of vehicles inspected within one day

  • Typically claim wrapped up with a week

Chapter 4: Product/Service Design


Thermos l.jpg

Thermos

  • In 1992 had 25% share of $1 billion barbecue grill market

  • Product becoming a commodity

  • CEO believed consumers were too intelligent to be tricked by clever advertising and slick packaging

  • Survival dependent on constant innovation, high quality, at right price

Chapter 4: Product/Service Design


Thermos continued l.jpg

Thermos continued

  • Interdisciplinary team with representatives from marketing, manufacturing, engineering, and finance to design new grill

  • Team used to reduce project completion time

  • As example, initially designers opted for tapered legs

Chapter 4: Product/Service Design


Thermos continued7 l.jpg

Thermos continued

  • Manufacturing noted that tapered legs would have to be custom made

  • Design changed to straight legs

  • Under previous system, manufacturing would not have found out about legs until design completed

Chapter 4: Product/Service Design


Thermos continued8 l.jpg

Thermos continued

  • Team developed revolutionary electric grill

  • Technology used to give food barbecued taste

  • Burns cleaner than gas or charcoal

  • Grill won four design awards in its first year

Chapter 4: Product/Service Design


Caterpillar l.jpg

Caterpillar

  • Used virtual-reality system called CAVE (cave automatic virtual environment) to take large earthmoving equipment for test drive before it was actually built

  • Surround-screen and surround sound cube with 10-foot sides

  • Super-computer projects 3D graphics onto the walls

Chapter 4: Product/Service Design


Caterpillar continued l.jpg

Caterpillar continued

  • Inside CAVE, people can walk around and operate imaginary controls

  • System responds to movements

  • Provides many perspectives

  • Backhoe and wheel loader recently introduced incorporate visibility and performance improvements based on data collected from virtual test-drives

Chapter 4: Product/Service Design


Themes illustrate in examples l.jpg

Themes Illustrate in Examples

  • Two examples related to design of products and one to the design of a service

  • Importance of product and service design to an organization’s competitiveness

    • Progressive

    • Thermos

Chapter 4: Product/Service Design


Themes continued l.jpg

Themes continued

  • Technology

    • In Progressive’s case, new technology such as cellular phones made new service possible

    • In Caterpillar’s case, new technology used to enhance design process

  • Design Teams

Chapter 4: Product/Service Design


Impacts of selection design decisions l.jpg

Impacts of Selection/Design Decisions

  • Fit

  • Materials

  • Labor

  • Equipment

  • Process

  • Financing

Chapter 4: Product/Service Design


Three stages in output selection and design l.jpg

Three Stages inOutput Selection and Design

  • Selection stage

    • Idea generation

    • Screening and selection

  • Product and service design stage

    • Preliminary design

    • Prototype testing

    • Final design

  • Process design

Chapter 4: Product/Service Design


Steps in product service selection and design l.jpg

Steps in Product-Service Selection and Design

Chapter 4: Product/Service Design


The selection stage l.jpg

The Selection Stage

Chapter 4: Product/Service Design


Generation of ideas l.jpg

Generation of Ideas

  • Employees with customer contact play a key role in generating new ideas

  • Can imitate proven new idea

  • Purchase new idea

  • Marketing “pull” versus technology “push”

  • Product versus process research

Chapter 4: Product/Service Design


The development effort l.jpg

The Development Effort

Chapter 4: Product/Service Design


Mortality curve of chemical product ideas from research to commercialization l.jpg

Mortality Curve of Chemical Product Ideas from Research to Commercialization

Chapter 4: Product/Service Design


Service gap identifier l.jpg

Service Gap Identifier


Product process innovations over time l.jpg

Product-Process Innovations Over Time

Chapter 4: Product/Service Design


Screening and selection l.jpg

Screening and Selection

  • Assessing technical feasibility

  • Determining up-front capital needs

  • Evaluation may include calculation of payback period, return on investment, or net present value

Chapter 4: Product/Service Design


Analysis of organizational fit l.jpg

Analysis of Organizational Fit

  • Experience with particular output

  • Experience with production system required for the output

  • Experience in providing an output to the same target recipients

  • Experience with the distribution system for the output

Chapter 4: Product/Service Design


Typical checklist for organizational fit l.jpg

Typical Checklist for Organizational Fit

Chapter 4: Product/Service Design


The aggregate project plan l.jpg

The Aggregate Project Plan

  • Project Portfolio

    • Derivative projects

    • Breakthrough projects

    • Platform projects

    • R&D projects

Chapter 4: Product/Service Design


The aggregate project plan26 l.jpg

The Aggregate Project Plan

Chapter 4: Product/Service Design


An example aggregate project plan l.jpg

An Example AggregateProject Plan

Chapter 4: Product/Service Design


Using the aggregate project plan l.jpg

Using the AggregateProject Plan

  • Identify gaps in portfolio

  • Evaluate resource requirements

  • Employee development

Chapter 4: Product/Service Design


The product service design stage l.jpg

The Product/Service Design Stage

Chapter 4: Product/Service Design


The product design stage l.jpg

The Product Design Stage

  • Preliminary Design

  • Prototype Testing

  • Final Design

Chapter 4: Product/Service Design


Preliminary design l.jpg

Preliminary Design

  • Tradeoff Analysis

  • Standardization

  • Modularity

  • Computer-Aided Design

Chapter 4: Product/Service Design


Tradeoff analysis factors to consider l.jpg

Function

Cost

Size and shape

Appearance

Quality

Reliability

Environmental impact

Producability

Timing

Accessibility

Recipient input requirements

Tradeoff Analysis Factors to Consider

Chapter 4: Product/Service Design


Using qfd to link customers attributes to technical component and operation requirements l.jpg

Using QFD to link customers’ attributes to technical, component, and operation requirements

Chapter 4: Product/Service Design


The house of quality for a car door l.jpg

The House of Qualityfor a Car Door

Chapter 4: Product/Service Design


Advantages of standardization l.jpg

Advantages of Standardization

  • Minimizes number of parts needed to stock

  • Minimizes number of equipment setups

  • Simplified operations procedures

  • Quantity discounts due to larger purchases

  • Minimized service and repair problems

Chapter 4: Product/Service Design


Disadvantages of standardization l.jpg

Disadvantages of Standardization

  • Possible lower quality because standard parts used rather than specially made parts

  • Inflexible production

Chapter 4: Product/Service Design


Modularity l.jpg

computer

5 choices for RAM

5 hard drive sizes

5 choices for CPU

4 modem choices

5 x 5 x 5 x 4 = 500 possible computer configurations with only 19 different parts

Modularity

Chapter 4: Product/Service Design


Computer aided design l.jpg

Computer-Aided Design

  • Develop drawings on computer screen

  • Can retrieve old designs and changes as necessary rather than creating new designs from scratch

  • Computer-aided engineering (CAE)

  • Computer-aided process planning (CAPP)

  • Computer-aided manufacturing (CAM)

Chapter 4: Product/Service Design


Prototype testing l.jpg

Prototype Testing

  • Design concept developed in preliminary stage tested

  • Physical models

  • Computer simulation

  • Rapid prototyping (RP)

  • Actual product or service

  • Accept, extend, modify, or reject preliminary design

Chapter 4: Product/Service Design


Final design l.jpg

Final Design

  • Simplification and value analysis

  • Safety and human factors

  • Reliability

  • Manufacturability

Chapter 4: Product/Service Design


Methods to speed new output introduction l.jpg

Methods to Speed New Output Introduction

  • Contract R&D

  • Product/process teams

  • Overlap development stages

  • Combine/eliminate stages

  • Incremental emphasis

  • More extensive application

  • Use new technologies

Chapter 4: Product/Service Design


Commercialization l.jpg

Commercialization

Chapter 4: Product/Service Design


Commercialization43 l.jpg

Commercialization

Process of moving an idea for a new product or service from concept to market

Chapter 4: Product/Service Design


History of the typewriter l.jpg

History of the Typewriter

  • Mechanical typewriter dominated market for 25 years

  • Then the electromechanical typewriter dominated market for 15 years

  • Electric typewriter dominated for the next 7 years

  • First generation microprocessor based machines dominated for next 5 years

Chapter 4: Product/Service Design


Characteristics of companies with superior commercialization capabilities l.jpg

Characteristics of Companies with Superior CommercializationCapabilities

  • Commercialize two to three times as many new products and processes as their competitors

  • Two to three times as many technologies incorporated into products

  • Get product to market in half time

  • Compete in twice as many product and geographic markets

Chapter 4: Product/Service Design


Example assume following applies to laser printer industry l.jpg

Example: Assume following applies to laser printer industry

  • Market growing 20% annually

  • Prices declining 12% annually

  • Five year life cycle

    As a project leader, would you choose between incurring a 30% cost overrun to finish project on schedule or miss deadline by six months?

Chapter 4: Product/Service Design


Laser printer example continued l.jpg

Laser Printer example continued

  • Incurring the 30% cost overrun will reduce cumulative profits by 2.3%

  • Launching printer six months late will reduce cumulative profits by 33%

Chapter 4: Product/Service Design


To improve commercialization capability must measure it l.jpg

To Improve Commercialization Capability Must Measure It

  • Time to market

  • Range of markets

  • Number of markets

  • Breadth of technologies

Chapter 4: Product/Service Design


Improving commercialization capability l.jpg

Improving Commercialization Capability

  • Make it a priority

  • Set goals and benchmarks

  • Build cross-functional teams

  • Promote hands-on management to speed actions and decisions

Chapter 4: Product/Service Design


Disruptive technologies l.jpg

Disruptive Technologies

  • Disruptive technologies

  • Sustaining technologies

Chapter 4: Product/Service Design


Performance trajectories traditional versus online distance education learning programs l.jpg

Performance Trajectories: Traditional Versus Online Distance Education Learning Programs

Chapter 4: Product/Service Design


  • Login