Chapter 3

1. Chapter 3 Products and Services

2. Product Design • Specifies materials • Determines dimensions & tolerances • Defines appearance • Sets performance standards

3. Service Design • Specifies what the customer is to experience • Physical items • Sensual benefits • Psychological benefits

4. An Effective Design Process • Matches product/service characteristics with customer needs • Meets customer requirements in simplest, most cost-effective manner • Reduces time to market • Minimizes revisions

5. Stages in the Design Process • Idea Generation — Product Concept • Feasibility Study — Performance Specifications • Preliminary Design — Prototype • Final Design — Final Design Specifications • Process Planning — Manufacturing Specifications

6. 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 The Design Process Figure 3.1

7. Idea Generation • Suppliers, distributors, salespersons • Trade journals and other published material • Warranty claims, customer complaints, failures • Customer surveys, focus groups, interviews • Field testing, trial users • Research and development

8. More Idea Generators • 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

9. GOOD TASTE Cocoa Puffs LOW NUTRITION HIGH NUTRITION Cheerios Rice Krispies Wheaties Shredded Wheat BAD TASTE Perceptual Map of Breakfast Cereals Figure 3.2

10. Feasibility Study • Market Analysis • Economic Analysis • Technical / Strategic Analysis • Performance Specifications

11. Preliminary Design • Create form & functional design • Build prototype • Test prototype • Revise prototype • Retest

12. Functional Design(How the Product Performs) • Reliability • Probability product performs intended function for specified length of time • Maintainability • Ease and/or cost or maintaining/repairing product

13. 0.90 0.90 0.90 R2 0.95 R1 Computing Reliability Components in series 0.90 x 0.90 = 0.81 Components in parallel 0.95 + 0.90(1-0.95) = 0.995

14. MTBF MTBF + MTTR System Availability, SA = PROVIDER MTBF (HR) MTTR (HR) A 60 4.0 B 36 2.0 C 24 1.0 System Availability SAA = 60 / (60 + 4) = .9375 or 93.75% SAB = 36 / (36 + 2) = .9726 or 97.26% SAC = 24 / (24 + 1) = .9473 or 94.73% Example 3.1

15. Production Design • Part of the preliminary design phase • Simplification • Standardization • Modularity

16. (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 Figure 3.3

17. Final Design & Process Plans • Produce detailed drawings & specifications • Create workable instructions for manufacture • Select tooling & equipment • Prepare job descriptions • Determine operation & assembly order • Program automated machines

18. Improving the Design Process • Design teams • Concurrent design • Design for manufacture & assembly • Design to prevent failures and ensure value • Design for environment • Measure design quality • Utilize quality function deployment • Design for robustness • Engage in collaborative design

19. Design Teams • Marketing, manufacturing, engineering • Suppliers, dealers, customers • Lawyers, accountants, insurance companies

20. Concurrent Design • Improves quality of early design decisions • Decentralized - suppliers complete detailed design • Incorporates production process • Often uses a price-minus system • Scheduling and management can be complex as tasks are done in parallel

21. Design for Manufacture and Assembly • Design a product for easy& economical production • Incorporate production design early in the design phase • Improves quality and reduces costs • Shortens time to design and manufacture

22. DFM Guidelines • Minimize the number of parts, tools, fasteners, and assemblies • Use standard parts and repeatable processes • Modular design • Design for ease of assembly, minimal handling • Allow for efficient testing and parts replacement

23. Value Analysis (Value Engineering) • Ratio of value / cost • Assessment of value : 1. Can we do without it? 2. Does it do more than is required? 3. Does it cost more than it is worth? 4. Can something else do a better job 5. Can it be made by less costly method, tools, material? 6. Can it be made cheaper, better or faster by someone else?

24. Design for Environment • Design from recycled material • Use materials which can be recycled • Design for ease of repair • Minimize packaging • Minimize material & energy used during manufacture, consumption & disposal

25. Characteristics of Services • Services are intangible • Service output is variable • Service have higher customer contact • Services are perishable • Service inseparable from delivery • Tend to be decentralized and dispersed • Consumed more often than products • Services can be easily emulated

26. FedEx A Well-Designed Service System is: • Consistent with firm’s strategic focus • User friendly • Robust • Easy to sustain • Effectively linked between front & back office • Cost effective • Visible to customer

27. Design for High-Contact Services DESIGN DECISION HIGH-CONTACT SERVICE LOW-CONTACT SERVICE Table 3.2

28. Design for High-Contact Services DESIGN DECISION HIGH-CONTACT SERVICE LOW-CONTACT SERVICE Table 3.2