products and services l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Products and Services PowerPoint Presentation
Download Presentation
Products and Services

Loading in 2 Seconds...

play fullscreen
1 / 55

Products and Services - PowerPoint PPT Presentation


  • 177 Views
  • Uploaded on

Products and Services. Chapter 5. Beni Asllani University of Tennessee at Chattanooga. Operations Management - 5 th Edition. Roberta Russell & Bernard W. Taylor, III. Lecture Outline. Design Process Reducing Time-to-Market Improving Quality of Design

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 'Products and Services' - Faraday


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
products and services

Products and Services

Chapter 5

Beni AsllaniUniversity of Tennessee at Chattanooga

Operations Management - 5th Edition

Roberta Russell & Bernard W. Taylor, III

Copyright 2006 John Wiley & Sons, Inc.

lecture outline
Lecture Outline
  • Design Process
  • Reducing Time-to-Market
  • Improving Quality of Design
  • Special Considerations in Service Design

Copyright 2006 John Wiley & Sons, Inc.

design process
Design Process
  • Effective design can provide a competitive edge
    • matches product or service characteristics with customer requirements
    • ensures that customer requirements are met in the simplest and least costly manner
    • reduces time required to design a new product or service
    • minimizes revisions necessary to make a design workable

Copyright 2006 John Wiley & Sons, Inc.

design process cont
Product design

defines appearance of product

sets standards for performance

specifies which materials are to be used

determines dimensions and tolerances

Service design

specifies what physical items, sensual benefits, and psychological benefits customer is to receive from service

defines environment in which service will take place

Design Process (cont.)

Copyright 2006 John Wiley & Sons, Inc.

design process cont5

Idea

generation

Feasibility

study

Performance specifications

Product or service concept

Form design

Suppliers

Customers

R&D

Revising and testing prototypes

Marketing

Competitors

Production design

Functional

design

Design specifications

Manufacturing or delivery specifications

New product or service launch

Pilot run

and final tests

Final design

& process plans

Design Process (cont.)

Copyright 2006 John Wiley & Sons, Inc.

idea generation sources
Company’s own R&D department

Customer complaints or suggestions

Marketing research

Suppliers

Salespersons in the field

Factory workers

New technological developments

Competitors

Idea Generation Sources

Copyright 2006 John Wiley & Sons, Inc.

idea generation sources cont
Idea Generation Sources (cont.)
  • Perceptual Maps
    • Visual comparison of customer perceptions
  • Benchmarking
    • Comparing product/service against best-in-class
  • Reverse engineering
    • Dismantling competitor’s product to improve your own product

Copyright 2006 John Wiley & Sons, Inc.

perceptual map of breakfast cereals

GOOD TASTE

Cocoa Puffs

LOW NUTRITION

HIGH NUTRITION

Cheerios

Rice

Krispies

Wheaties

Shredded

Wheat

BAD TASTE

Perceptual Map of Breakfast Cereals

Cheerios

Rice

Krispies

Wheaties

Shredded

Wheat

Copyright 2006 John Wiley & Sons, Inc.

feasibility study
Feasibility Study
  • Market analysis
  • Economic analysis
  • Technical/strategic analysis
  • Performance specifications

Copyright 2006 John Wiley & Sons, Inc.

rapid prototyping
Rapid Prototyping
  • Build a prototype
    • form design
    • functional design
    • production design
  • Test prototype
  • Revise design
  • Retest

Copyright 2006 John Wiley & Sons, Inc.

form and functional design
Form Design

how product will look?

Functional Design

reliability

maintainability

usability

Form and Functional Design

Copyright 2006 John Wiley & Sons, Inc.

computing reliability

0.90

0.90

Components in series

0.90 x 0.90 = 0.81

Computing Reliability

Copyright 2006 John Wiley & Sons, Inc.

computing reliability13

Components in parallel

0.90

R2

0.95 + 0.90(1-0.95) = 0.995

0.95

R1

Computing Reliability

Copyright 2006 John Wiley & Sons, Inc.

system reliability

0.90

0.98

0.92+(1-0.92)(0.90)=0.99

0.98

0.98

0.92

0.98

0.98 x 0.99 x 0.98 = 0.951

System Reliability

Copyright 2006 John Wiley & Sons, Inc.

system availability sa
where:

MTBF = mean time between failures

MTTR = mean time to repair

MTBF

MTBF + MTTR

SA =

System Availability (SA)

Copyright 2006 John Wiley & Sons, Inc.

slide16

PROVIDER MTBF (HR) MTTR (HR)

A 60 4.0

B 36 2.0

C 24 1.0

SAA = 60 / (60 + 4) = .9375 or 93.75%

SAB = 36 / (36 + 2) = .9726 or 97.26%

SAC = 24 / (24 + 1) = .9473 or 94.73%

System Availability (cont.)

Copyright 2006 John Wiley & Sons, Inc.

usability
Usability
  • Ease of use of a product or service
    • ease of learning
    • ease of use
    • ease of remembering how to use
    • frequency and severity of errors
    • user satisfaction with experience

Copyright 2006 John Wiley & Sons, Inc.

production design
Production Design
  • Simplification
    • reducing number of parts, assemblies, or options in a product
  • Standardization
    • using commonly available and interchangeable parts
  • Modularity
    • combining standardized building blocks, or modules, to create unique finished products

Copyright 2006 John Wiley & Sons, Inc.

slide19

(b) Revised design

(c) Final design

(a) Original design

One-piece base & elimination of fasteners

Design for push-and-snap

assembly

Assembly using

common fasteners

Design Simplification

Copyright 2006 John Wiley & Sons, Inc.

final design and process plans
Final design

detailed drawings and specifications for new product or service

Process plans

workable instructions

necessary equipment and tooling

component sourcing recommendations

job descriptions and procedures

computer programs for automated machines

Final Design and Process Plans

Copyright 2006 John Wiley & Sons, Inc.

reducing time to market
Reducing Time-to-Market
  • Establish multifunctional design teams
  • Make design decisions concurrently rather than sequentially
  • Design for manufacture and assembly
  • Use technology in the design process
  • Engage in collaborative design

Copyright 2006 John Wiley & Sons, Inc.

design team
Design Team

Copyright 2006 John Wiley & Sons, Inc.

concurrent design
A new approach to design that involves simultaneous design of products and processes by design teams

Improves quality of early design decisions

Involves suppliers

Incorporates production process

Uses a price-minus system

Scheduling and management can be complex as tasks are done in parallel

Concurrent Design

Copyright 2006 John Wiley & Sons, Inc.

design for manufacture and assembly dfma
Design for manufacture

design a product for easy and economical production

Design for assembly

a set of procedures for:

reducing number of parts in an assembly

evaluating methods of assembly

determining an assembly sequence

Design for Manufacture and Assembly (DFMA)

Copyright 2006 John Wiley & Sons, Inc.

dfm guidelines
DFM Guidelines
  • Minimize number of parts and subassemblies
  • Avoid tools, separate fasteners, and adjustments
  • Use standard parts when possible and repeatable, well-understood processes
  • Design parts for many uses, and modules that can be combined in different ways
  • Design for ease of assembly, minimal handling, and proper presentation
  • Allow for efficient and adequate testing and replacement of parts

Copyright 2006 John Wiley & Sons, Inc.

technology in the design process
Technology in the Design Process
  • Computer Aided Design (CAD)
    • assists in creation, modification, and analysis of a design
    • includes
      • computer-aided engineering (CAE)
        • tests and analyzes designs on computer screen
      • computer-aided manufacturing (CAM)
        • ultimate design-to-manufacture connection

Copyright 2006 John Wiley & Sons, Inc.

collaborative design
Collaborative Design
  • A software system for collaborative design and development among trading partners
  • Follows life cycle of the product
  • Accelerates product development, helps to resolve product launch issues, and improves quality of the design
  • Designers can
    • conduct virtual review sessions
    • test “what if” scenarios
    • assign and track design issues
    • communicate with multiple tiers of suppliers
    • create, store, and manage project documents

Copyright 2006 John Wiley & Sons, Inc.

improving quality of design
Improving Quality of Design
  • Review designs to prevent failures and ensure value
  • Design for environment
  • Measure design quality
  • Use quality function deployment
  • Design for robustness

Copyright 2006 John Wiley & Sons, Inc.

design review
Design Review
  • Failure mode and effects analysis (FMEA)
    • a systematic method of analyzing product failures
  • Fault tree analysis (FTA)
    • a visual method for analyzing interrelationships among failures
  • Value analysis (VA)
    • helps eliminate unnecessary features and functions

Copyright 2006 John Wiley & Sons, Inc.

slide30

FMEA for Potato Chips

Copyright 2006 John Wiley & Sons, Inc.

fault tree analysis fta
Fault tree analysis (FTA)

Copyright 2006 John Wiley & Sons, Inc.

value analysis va
Value analysis (VA)
  • Can we do without it?
  • Does it do more than is required?
  • Does it cost more than it is worth?
  • Can something else do a better job?
  • Can it be made by
    • a less costly method?
    • with less costly tooling?
    • with less costly material?
  • Can it be made cheaper, better, or faster by someone else?

Copyright 2006 John Wiley & Sons, Inc.

design for environment
Design for Environment
  • Design for environment
    • designing a product from material that can be recycled
    • design from recycled material
    • design for ease of repair
    • minimize packaging
    • minimize material and energy used during manufacture, consumption and disposal
  • Extended producer responsibility
    • holds companies responsible for their product even after its useful life

Copyright 2006 John Wiley & Sons, Inc.

design for environment cont
Design for Environment (cont.)

Copyright 2006 John Wiley & Sons, Inc.

measure design quality
% of revenue from new products or services

% of products capturing 50% or more of market

% of process initiatives yielding a 50% or more improvement in effectiveness

% of suppliers engaged in collaborative design

% of parts that can be recycled

% of parts used in multiple products

% of parts with no engineering change orders

Average number of components per product

Things gone wrong (TGW)

Measure Design Quality

Copyright 2006 John Wiley & Sons, Inc.

quality function deployment qfd
Quality FunctionDeployment (QFD)
  • Translates voice of customer into technical design requirements
  • Displays requirements in matrix diagrams
    • first matrix called “house of quality”
    • series of connected houses

Copyright 2006 John Wiley & Sons, Inc.

house of quality

5

Importance

Trade-off matrix

3

Design characteristics

4

2

1

Customer requirements

Relationship matrix

Competitive assessment

6

Target values

House of Quality

Copyright 2006 John Wiley & Sons, Inc.

competitive assessment of customer requirements

Competitive Assessment

Customer Requirements 1 2 3 4 5

Presses quickly 9 B A X

Removes wrinkles 8 AB X

Doesn’t stick to fabric 6 X BA

Provides enough steam 8 AB X

Doesn’t spot fabric 6 X AB

Doesn’t scorch fabric 9 A XB

Heats quickly 6 X B A

Automatic shut-off 3 ABX

Quick cool-down 3 X A B

Doesn’t break when dropped 5 AB X

Doesn’t burn when touched 5 AB X

Not too heavy 8 X A B

Irons well

Easy and safe to use

Competitive Assessment of Customer Requirements

Copyright 2006 John Wiley & Sons, Inc.

from customer requirements to design characteristics

Energy needed to press

Weight of iron

Size of soleplate

Thickness of soleplate

Material used in soleplate

Number of holes

Size of holes

Flow of water from holes

Time required to reach 450º F

Time to go from 450º to 100º

Protective cover for soleplate

Automatic shutoff

Customer Requirements

Presses quickly - - + + + -

Removes wrinkles + + + + +

Doesn’t stick to fabric - + + + +

Provides enough steam + + + +

Doesn’t spot fabric + - - -

Doesn’t scorch fabric + + + - +

Heats quickly - - + -

Automatic shut-off +

Quick cool-down - - + +

Doesn’t break when dropped + + + +

Doesn’t burn when touched + + + +

Not too heavy + - - - + -

Irons well

Easy and safe to use

From Customer Requirementsto Design Characteristics

Copyright 2006 John Wiley & Sons, Inc.

tradeoff matrix

-

-

Energy needed to press

Weight of iron

Size of soleplate

Thickness of soleplate

Material used in soleplate

Number of holes

Size of holes

Flow of water from holes

Time required to reach 450º

Time to go from 450º to 100º

Protective cover for soleplate

Automatic shutoff

+

+

+

Tradeoff Matrix

Copyright 2006 John Wiley & Sons, Inc.

targeted changes in design

Energy needed to press

Weight of iron

Size of soleplate

Thickness of soleplate

Material used in soleplate

Number of holes

Size of holes

Flow of water from holes

Time required to reach 450º

Time to go from 450º to 100º

Protective cover for soleplate

Automatic shutoff

Units of measure ft-lb lb in. cm ty ea mm oz/s sec sec Y/N Y/N

Iron A 3 1.4 8x4 2 SS 27 15 0.5 45 500 N Y

Iron B 4 1.2 8x4 1 MG 27 15 0.3 35 350 N Y

Our Iron (X) 2 1.7 9x5 4 T 35 15 0.7 50 600 N Y

Estimated impact 3 4 4 4 5 4 3 2 5 5 3 0

Estimated cost 3 3 3 3 4 3 3 3 4 4 5 2

Targets 1.2 8x5 3 SS 30 30 500

Design changes * * * * * * *

Objective measures

Targeted Changes in Design

Copyright 2006 John Wiley & Sons, Inc.

completed house of quality

SS = Silverstone

MG = Mirorrglide

T = Titanium

CompletedHouse of Quality

Copyright 2006 John Wiley & Sons, Inc.

a series of connected qfd houses

Product characteristics

Part characteristics

Customer requirements

A-1

Process characteristics

Product characteristics

A-2

House of quality

A-3

Parts deployment

Part characteristics

Operations

A-4

Process planning

Process characteristics

Operating requirements

A Series of Connected QFD Houses

Copyright 2006 John Wiley & Sons, Inc.

benefits of qfd
Benefits of QFD
  • Promotes better understanding of customer demands
  • Promotes better understanding of design interactions
  • Involves manufacturing in design process
  • Breaks down barriers between functions and departments
  • Provides documentation of design process

Copyright 2006 John Wiley & Sons, Inc.

design for robustness
Design for Robustness
  • Robust product
    • designed to withstand variations in environmental and operating conditions
  • Robust design
    • yields a product or service designed to withstand variations
  • Controllable factors
    • design parameters such as material used, dimensions, and form of processing
  • Uncontrollable factors
    • user’s control (length of use, maintenance, settings

Copyright 2006 John Wiley & Sons, Inc.

tolerance and consistency
Tolerance and Consistency
  • Tolerance
    • allowable ranges of variation in the dimension of a part
  • Consistency
    • consistent errors are easier to correct than random errors
    • parts within tolerances may yield assemblies that are not within limits
    • consumers prefer product characteristics near their ideal values

Copyright 2006 John Wiley & Sons, Inc.

taguchi s quality loss function

Quality Loss

Lower

tolerance

limit

Upper

tolerance

limit

Target

Taguchi’s Quality Loss Function
  • Quantifies customer preferences toward quality
  • Emphasizes that customer preferences are strongly oriented toward consistently
  • Design for Six Sigma (DFSS)

Copyright 2006 John Wiley & Sons, Inc.

special considerations in service design
Services are intangible

Service output is variable

Service have higher customer contact

Services are perishable

Service inseparable from delivery

Services tend to be decentralized and dispersed

Services are consumed more often than products

Services can be easily emulated

Special Considerations in Service Design

Copyright 2006 John Wiley & Sons, Inc.

service design process

Desired service experience

Service Concept

Service Package

Targeted customer

Physical items

Sensual benefits

Psychological benefits

Performance Specifications

Customer requirements

Customer expectations

Service Provider

Customer

Design Specifications

Provider skills

Cost and time estimates

Activities

Facility

Delivery Specifications

Schedule

Deliverables

Location

Service

Service Design Process

Copyright 2006 John Wiley & Sons, Inc.

service design process cont
Service Design Process (cont.)
  • Service concept
    • purpose of a service; it defines target market and customer experience
  • Service package
    • mixture of physical items, sensual benefits, and psychological benefits
  • Service specifications
    • performance specifications
    • design specifications
    • delivery specifications

Copyright 2006 John Wiley & Sons, Inc.

high v low contact services
Facility location

Convenient to customer

High v. Low Contact Services

Design Decision

High-Contact Service

Low-Contact Service

  • Near labor or transportation source
  • Facility layout
  • Must look presentable, accommodate customer needs, and facilitate interaction with customer
  • Designed for efficiency

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210

Copyright 2006 John Wiley & Sons, Inc.

high v low contact services cont
Quality control

More variable since customer is involved in process; customer expectations and perceptions of quality may differ; customer present when defects occur

High v. Low Contact Services (cont.)

Design Decision

High-Contact Service

Low-Contact Service

  • Measured against established standards; testing and rework possible to correct defects
  • Capacity
  • Excess capacity required to handle peaks in demand
  • Planned for average demand

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210

Copyright 2006 John Wiley & Sons, Inc.

high v low contact services cont53
Worker skills

Must be able to interact well with customers and use judgment in decision making

High v. Low Contact Services (cont.)

Design Decision

High-Contact Service

Low-Contact Service

  • Technical skills
  • Scheduling
  • Must accommodate customer schedule
  • Customer concerned only with completion date

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210

Copyright 2006 John Wiley & Sons, Inc.

high v low contact services cont54
Service process

Mostly front-room activities; service may change during delivery in response to customer

High v. Low Contact Services (cont.)

Design Decision

High-Contact Service

Low-Contact Service

  • Mostly back-room activities; planned and executed with minimal interference
  • Service package
  • Varies with customer; includes environment as well as actual service
  • Fixed, less extensive

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210

Copyright 2006 John Wiley & Sons, Inc.

slide55

Copyright 2006 John Wiley & Sons, Inc.All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information herein.

Copyright 2006 John Wiley & Sons, Inc.