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Product and Service Design

4. Product and Service Design. Product and Service Design. Major factors in design strategy Cost Quality Time-to-market Customer satisfaction Competitive advantage. Product and service design – or redesign – should be closely tied to an organization’s strategy.

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Product and Service Design

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  1. 4 Product and Service Design

  2. Product and Service Design • Major factors in design strategy • Cost • Quality • Time-to-market • Customer satisfaction • Competitive advantage Product and service design – or redesign – should be closely tied to an organization’s strategy

  3. 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

  4. Reasons for Product or Service Design • Economic • Social and demographic • Political, liability, or legal • Competitive • Cost or availability • Technological

  5. Objectives of Product and Service Design • Main focus • Customer satisfaction • Understand what the customer wants • Secondary focus • Function of product/service • Cost/profit • Quality • Appearance • Ease of production/assembly • Ease of maintenance/service

  6. Designing For Operations • Taking into account the capabilities of the organization in designing goods and services. • Failure to take this into account can: • Reduce productivity • Reduce quality • Increase costs

  7. Legal, Ethical, and Environmental Issues • Legal • FDA, OSHA, IRS • Product liability • Uniform commercial code • Ethical • Releasing products with defects • Environmental • EPA

  8. 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.

  9. Designers Adhere to Guidelines • Produce designs that are consistant with the goals of the company • Give customers the value they expect • Make health and safety a primary concern • Consider potential harm to the environment

  10. Other Issues in Product and Service Design • Product/service life cycles • How much standardization • Mass customization • Product/service reliability • Robust design • Degree of newness • Cultural differences

  11. Life Cycles of Products or Services Saturation Maturity Decline Demand Growth Introduction Time Figure 4.1

  12. Standardization • Standardization • Extent to which there is an absence of variety in a product, service or process • Standardized products are immediately available to customers

  13. Advantages of Standardization • Fewer parts to deal with in inventory & manufacturing • Design costs are generally lower • Reduced training costs and time • More routine purchasing, handling, and inspection procedures • Quality is more consistent

  14. 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.

  15. 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.

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

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

  18. 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

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

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

  21. 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

  22. Cultural Differences • Multinational companies must take into account cultural differences related to the product design. • Notable failures: • McDonalds' in India • Coffee in UK

  23. Global Product Design • Virtual teams • Uses combined efforts of a team of designers working in different countries • Provides a range of comparative advantages over traditional teams such as: • Engaging the best human resources around the world • Possibly operating on a 24-hr basis • Global customer needs assessment • Global design can increase marketability

  24. Phases in Product Development Process • Idea generation • Feasibility analysis • Product specifications • Process specifications • Prototype development • Design review • Market test • Product introduction • Follow-up evaluation

  25. Idea Generation Ideas Supply chain based Competitor based Research based

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

  27. 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.

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

  29. Concurrent Engineering Concurrent engineeringis the bringing together of engineering design and manufacturing personnel early in the design phase.

  30. 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

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

  32. 4S Reliability

  33. Learning Objectives • Define reliability • Perform reliability computations • Explain the purpose of redundancy in a system

  34. 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

  35. Reliability is a Probability • Probability that the product or system will: • Function when activated • Function for a given length of time • Independent events • Events whose occurrence or nonoccurrence do not influence each other • Redundancy • The use of backup components to increase reliability

  36. Rule 1 Lamp 1 Lamp 2 .90 x .80 = .72 .80 .90

  37. Rule 2 .80 .90 Lamp 2 (backup) .90 + (1-.90)*.80 = .98 Lamp 1

  38. Rule 3 .80 .70 .90 Lamp 3 (backup for Lamp 2) Lamp 2 (backup for Lamp1) 1 – P(all fail) 1-[(1-.90)*(1-.80)*(1-.70)] = .994 Lamp 1

  39. Example S-1 Reliability .92 .90 .98 .90 .95 Determine the reliability of the system shown

  40. Example S-1 Solution .98 .90+.90(1-.90) .95+.92(1-.95) .98 x .99 x .996 = .966 The system can be reduced to a series of three components

  41. Failure Rate Infant mortality Failures due to wear-out Few (random) failures Time, T Figure 4S.1 Failure Rate

  42. Exponential Distribution Reliability = e -T/MTBF 1- e -T/MTBF T Time Figure 4S.2

  43. Normal Distribution Reliability 0 z Figure 4S.3

  44. Availability • The fraction of time a piece of equipment is expected to be available for operation MTBF = mean time between failures MTR = mean time to repair

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

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