Chapter 4
Download
1 / 51

Product - PowerPoint PPT Presentation


  • 120 Views
  • Updated On :

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

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Product' - sumitra


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 Commercialization


Product process innovations over time l.jpg
Product-Process Innovations Over Time Commercialization

Chapter 4: Product/Service Design


Screening and selection l.jpg
Screening and Selection Commercialization

  • 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 CommercializationOrganizational 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 Commercialization

Chapter 4: Product/Service Design


The aggregate project plan l.jpg
The Aggregate Project Plan Commercialization

  • 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 Commercialization

Chapter 4: Product/Service Design


An example aggregate project plan l.jpg
An Example Aggregate CommercializationProject Plan

Chapter 4: Product/Service Design


Using the aggregate project plan l.jpg
Using the Aggregate CommercializationProject 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 Commercialization

Chapter 4: Product/Service Design


The product design stage l.jpg
The Product Design Stage Commercialization

  • Preliminary Design

  • Prototype Testing

  • Final Design

Chapter 4: Product/Service Design


Preliminary design l.jpg
Preliminary Design Commercialization

  • Tradeoff Analysis

  • Standardization

  • Modularity

  • Computer-Aided Design

Chapter 4: Product/Service Design


Tradeoff analysis factors to consider l.jpg

Function Commercialization

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 Quality component, and operation requirementsfor a Car Door

Chapter 4: Product/Service Design


Advantages of standardization l.jpg
Advantages of Standardization component, and operation requirements

  • 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 component, and operation requirements

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

  • Inflexible production

Chapter 4: Product/Service Design


Modularity l.jpg

computer component, and operation requirements

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 component, and operation requirements

  • 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 component, and operation requirements

  • 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 component, and operation requirements

  • 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 component, and operation requirements

  • 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 component, and operation requirements

Chapter 4: Product/Service Design


Commercialization43 l.jpg
Commercialization component, and operation requirements

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 component, and operation requirements

  • 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 Commercialization component, and operation requirementsCapabilities

  • 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 component, and operation requirements

  • 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 component, and operation requirementscontinued

  • 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 component, and operation requirements

  • 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 component, and operation requirements

  • 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 component, and operation requirements

  • 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


ad