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Design of Products and Services*

Design of Products and Services*. OPS 370. *Note much of the material from this chapter is NOT in the textbook. “ You have to have products that sell ”. Product Design is a Business Issue.

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Design of Products and Services*

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  1. Design of Products and Services* OPS 370 *Note much of the material from this chapter is NOT in the textbook

  2. “You have to have products that sell” Product Design is a Business Issue “We are really pleased with our revenues but our goal isn't to make money. It sounds a little flippant, but it's the truth. Our goal and what makes us excited is to make great products. If we are successful people will like them and if we are operationally competent, we will make money” Jonny Ive, Apple Sr. VP of Industrial Design to British Embassy Creative Summit, July 2012 Unknown Attribution

  3. Why Firms Develop New Products 1. Competitive Advantage 2. Market Share Gain 3. Higher Profitability 4. Enhancement of Brand 5. Faster Competitive Response 6. Improved Operating Cost & Resource Utilization

  4. Competitive Advantage

  5. Market Share Gain

  6. Higher Profitability

  7. Enhancement of Corporate Image and Brand Name

  8. Faster Competitive Response ?

  9. Single Item (Industry)Product Life Cycle

  10. Lower Ops $ and Better Utilization of Capacity

  11. Radical and Disruptive Innovation Radical Innovation: Disruptive Innovation:

  12. Examples of Disruptive New Products

  13. Elements of Product Design: Mass Customization

  14. Elements of Product Design: Design for Production (Manufacturability) and Rapid Prototyping Design for manufacturability: Rapid prototyping:

  15. Elements of Product Design: Design Simplification (a) The original design Assembly using common fasteners

  16. (b) Revised design One-piece base & elimination of fasteners Design Simplification (a) The original design Assembly using common fasteners

  17. (b) Revised design (c) Final design One-piece base & elimination of fasteners Design for push-and-snap assembly Design Simplification (a) The original design Assembly using common fasteners

  18. Standardizing parts among different products at Ford Product # before # after Savings/veh • Air filters 18 5 $0.45 • Carpet 9 3 $1.25 • Cigarette 14 1 lighters & $1.16 • Trunk carpet 7 1 Annual savings = $3M + $9M + $5M = $17M

  19. Environmentally Friendly Designs

  20. Where Do New Product Ideas Come From? Traditional sources: • customer surveys • analyzing warranty claims, customer complaints • surveys of suppliers, distributors, and salespersons

  21. Modern Sources • Benchmarking • comparing product/service against best-in-class • Reverse engineering • dismantling competitor’s product to improve your own product • Early Supplier Involvement (ESI)

  22. Customer Choice Analysis

  23. An approach for assessing the overall integrity of a product based on the configuration of its components Product Reliability Analysis

  24. Product Reliability Analysis

  25. Quantifying Reliability

  26. Quantifying Reliability

  27. Quantifying Reliability • What Is the Reliability of the Product Below? (Component Reliabilities Shown) A (0.9) B (0.95) C (0.9)

  28. Quantifying Reliability • How to Improve Reliability? • Add Redundancy! A (0.9) B (0.95) C (0.9)

  29. Quantifying Reliability A (0.9) B (0.95) C (0.9) Backup to A (0.8)

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