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  1. PART THREE PRODUCT AND SERVICE DESIGN • IT COVERS: Product and Service Design • Reliability • Capacity Planning • Decision Theory • Process Design and Facility Layout • Linear Programming • Design of Work Systems • Learning Curves • Location Planning and Analys • The Transportation Model

  2. Product and Service Design

  3. Product and Service Design • Major factors in strategy • Cost • Quality • Time-to-market • Customer satisfaction • Competitive advantage

  4. Trends in Product & Service Design • Increased emphasis on or attention to: • Customer satisfaction • Reducing time to introduce new product or service • Reducing time to produce product

  5. Trends in Product & Service 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

  6. Product or Service Design Activities • Translate customer wants and needs into product 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

  7. Reasons for Product or Service Design • Be competitive • Increase business growth & profits • Avoid downsizing with development of new products • Improve product quality • Achieve cost reductions in labor or materials

  8. Objectives of Product and Service Design • Development time and cost • Product or service cost • Resulting product or service quality • Capability to produce or deliver a given product or service

  9. Design For Operations • Taking into account the capabilities of the organization in designing goods and services

  10. The Kano Model

  11. Sources of Ideas for Products and Services • Internal • Employees • Marketing department • R&D department • External • Customers (QFD) • Competitors • Suppliers

  12. Quality Function Deployment • Quality Function Deployment • Voice of the customer • House of quality QFD: An approach that integrates the “voice of the customer” into the product and service development process.

  13. Reverse Engineering Reverse engineering is the dismantling and inspecting of a competitor’s product to discover product improvements.

  14. Research & Development (R&D) • Organized efforts to increase scientific knowledge 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.

  15. Legal, Ethical, and Environmental Issues • Legal • Halal, drug, alcoholic, in USA (FDA, OSHA, IRS) • Product liability • Uniform commercial code • Ethical • Releasing products with defects, Consumers’ Assoc. • Environmental • EIA (Env Imp Assessment)

  16. Regulations & Legal Considerations • Product Liability - A manufacturer is liable for any injuries or damages caused by a faulty product. • Uniform Commercial Code - Products carry an implication of merchantability and fitness.

  17. Product Design • Product Life Cycles • Robust Design • Concurrent Engineering • Computer-Aided Design • Modular Design

  18. Saturation Maturity Decline Demand Growth Incubation Time Life Cycles of Products or Services Figure 4-2

  19. Advantages of Standardization • Fewer parts to deal with in inventory & manufacturing • Reduced training costs and time • More routine purchasing, handling, and inspection procedures

  20. Advantages of Standardization (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.

  21. Disadvantages of 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.

  22. Mass Customization Mass customization: • A strategy of producing standardized goods or services, but incorporating some degree degree of customization • Delayed differentiation • Modular design

  23. Delayed Differentiation Delayed differentiation is a postponement tactic • Producing but not quite completing a product or service until customer preferences or specifications are known

  24. Modular Design Modular design is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged. It allows: • easier diagnosis and remedy of failures • easier repair and replacement • simplification of manufacturing and assembly

  25. 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 is specified

  26. Improving Reliability • Component design • Production/assembly techniques • Testing • Redundancy/backup • Preventive maintenance procedures • User education • System design

  27. Robust Design Robust Design: Design that results in products or services that can function over a broad range of conditions

  28. Taguchi Approach Robust 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

  29. 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 the organization’s manufacturing capabilities when designing a product. The more general term design for operationsencompasses services as well as manufacturing

  30. Concurrent Engineering Concurrent engineering is the bringing together of engineering design and manufacturing personnel early in the design phase.

  31. New Product Design Mfg “Over the Wall” Approach

  32. Computer-Aided Design • Computer-Aided Design (CAD) is product design using computer graphics. • increases productivity of designers, 3 to 10 times • creates a database for manufacturing information on product specifications • provides possibility of engineering and cost analysis on proposed designs

  33. Manufacturability • Manufacturability is the ease of fabrication and/or assembly which is important for: • Cost • Productivity • Quality

  34. Product design • Design for manufacturing (DFM) • Design for assembly (DFA) • Design for recycling (DFR) • Remanufacturing • Design for disassembly (DFD) • Robust design

  35. Recycling • Recycling: recovering materials for future use • Recycling reasons • Cost savings • Environment concerns • Environment regulations

  36. Differences Between Product and Service Design • 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

  37. High CustomizedClothing Moderate Dept. StorePurchase Low TelephonePurchase None InternetPurchase Low None Moderate High Service Variability & Customer Influence Service Design Figure 4-3 Variability in Service Require-ments Degree of Contact with Customer

  38. Quality Function Deployment • Quality Function Deployment • Voice of the customer • House of quality QFD: An approach that integrates the “voice of the customer” into the product and service development process.

  39. Correlation matrix Design requirements Customer require- ments Relationship matrix Competitive assessment Specifications or target values The House of Quality Figure 4-5

  40. Correlation: Strong positive X Positive X X Negative X X X Strong negative * Engineering Characteristics Competitive evaluation Energy needed to close door Check force on level ground Energy needed to open door Accoust. Trans. Window Door seal resistance Water resistance X = Us A = Comp. A Importance to Cust. B = Comp. B Customer Requirements (5 is best) 1 2 3 4 5 AB X Easy to close 7 X AB Stays open on a hill 5 Easy to open 3 XAB A X B Doesn’t leak in rain 3 10 6 6 9 2 3 No road noise 2 X A B Importance weighting Relationships: Strong = 9 Medium = 3 Reduce energy level to 7.5 ft/lb Reduce energy to 7.5 ft/lb. Target values Reduce force to 9 lb. Maintain current level Maintain current level Maintain current level Small = 1 5 BA BA B B BXA X Technical evaluation (5 is best) B 4 X A X A 3 A X 2 X 1 House of Quality Example

  41. Operations Strategy • 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