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CHAPTER FOURPRODUCT AND SERVICE DESIGN
MTSU Management 362 4-1
DESIGN OF PRODUCTION SYSTEMS
PART THREE
•Chapter Four•Product and Service Design
•Chapter Five•Process Selection and Capacity Planning
•Chapter Six•Facilities Layout
•Chapter Seven•Design of Work Systems
•Chapter Eight•Location Analysis
CHAPTER FOURPRODUCT AND SERVICE DESIGN
Chapter 4
Product and Service Design
CHAPTER FOURPRODUCT AND SERVICE DESIGN
MTSU Management 362 4-3
Reasons for Product or Service Design
• Be competitive through the introduction of new products
• Business growth & profits
• Alternative to downsizing through the development of new products
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Motivation for Product or Service Redesign
• Customer complaints/feedback
• Accidents and injuries
• Excessive warranty claims
• Low demand
• Improve quality
• Reduce labor or materials costs
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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– 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
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Objectives of Product & Service DesignSatisfy the customer while making a reasonable profit
Other considerations include
development time and cost
product or service cost
product or service quality
design for operations
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The Design Process• Motivation
• Customer
• Ideas
– marketing
– research &development
– competitors
• Operations capabilities
• Forecasts
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Identifying New Product Opportunities
• Factors influencing market opportunities– economic change– sociological and demographic change– technological change– political change
• Other sources of changes and opportunities– market practices– professional standards– suppliers– distributors
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8
Ideas
Market requirements
Functional specifications
Product specifications
Design review
Test market
Introduction
Success?
Product Development Stages
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Example of How to Use the Competition
Reverse engineering is the
dismantling and inspecting of a competitor’s product to discover product improvements
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Impact of Design on Operations
• Manufacturability is the ease of fabrication and/or assembly which is important for
– cost
– productivity
– quality
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Regulations & Legal Considerations
• Government and/or Industry Regulations
• Product Liability - A manufacturer is liable for any injuries or damages caused by a faulty product
• Uniform Commercial Code - Implied warranty of merchantability and fitness
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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.
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Approaches to Product Design• Product Life Cycles
• Manufacturing Design
• Remanufacturing
• Robust Design
• Concurrent (Simultaneous)Engineering
• Computer-Aided Design
• Standardization/Modular Design
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Life Cycles of Products or Services
Time
Incubation
Growth
Maturity
Saturation
Decline
Dem
and
Figure 4-2
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• Design for manufacturing (DMF)– design compatible with operations capabilities– manufacturability - ease of fabrication and/or
assembly which impacts cost, productivity and quality
• Design for assembly (DFA)– reduce the number of parts in an assembly– assembly method and sequence
• Design for recycling (DFR)– allows for dis-assembly of used products to recover
components and material for reuse
Manufacturing Design Considerations (1 of 2)
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• Design for remanufacturing– Removing some components from an old
product and reusing them in new products– Reasons for remanufacturing
• can be sold at a much reduced price
• requires mostly unskilled and semi-skilled workers
• becoming a requirement
– Design for dis-assembly (DFD)• product can be easily taken apart
• use fewer parts and less material
Manufacturing Design Considerations (2 of 2)
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Robust Design• Product performs as designed over a broad
range of conditions
• Less likely to fail due to a change in the environment
• A similar approach can be used for manufacturing processes
• Taguchi’s approach involves determining the specifications that will result in a robust design
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Traditional “Over the Wall” Approach
DesignManufacturing
New Product
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Traditional “Over the Wall” Approach
DesignManufacturing
New Product
Issues/Questions
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Concurrent Engineering Approach (1 of 3)
Concurrent engineering is the bringing together of design, marketing, accounting, manufacturing and other relevant personnel early in the design phase
Concurrent engineering is the bringing together of design, marketing, accounting, manufacturing and other relevant personnel early in the design phase
Allows certain designand development activitiesto go on simultaneously
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Concurrent Engineering Approach (2 of 3)
• Advantages– manufacturing able to identify operations
capabilities and capacities– early opportunities to procure critical resources
with long lead times– early consideration of technical feasibility of the
design– emphasis on problem resolution, not conflict
resolution
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Concurrent Engineering Approach (3 of 3)
• Difficulties– long-standing existing boundaries can be
difficult to overcome– there must be extra communication and
flexibility
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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
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Standardization/Modular Design
Standardization is the extent to which there is absence of variety in a product, service, or processModular design is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged
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Advantages of Standardization (1 of 2)
• Fewer parts to deal with in inventory & manufacturing
• Reduced training costs and time
• More routine purchasing, handling, and inspection procedures
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Advantages of Standardization (2 of 2)
• 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.
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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.
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Advantages of Modular Design
Allows
– easier diagnosis and remedy of failures
– easier repair and replacement
– simplification of manufacturing and assembly
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Quality Function Deployment• A structured approach for integrating the
“voice of the customer” into the product or service development process
• Ensure that customer requirements are translated into technical terms related to the product or service
• Based on a set of matrices– main QFD matrix– house of quality
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The Main QFD Matrix
Customerrequirements
Technical requirements
Relationshipmatrix
Importanceto
customer
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The House of Quality
Correlation matrix
Designrequirements
Customerrequire-ments
Competitiveassessment
Relationshipmatrix
Specificationsor
target values
Figure 4-7
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Customer Requirements
Importance to Cust.Easy to close
Stays open on a hill
Easy to open
Doesn’t leak in rain
No road noise
Importance weighting
Engineering Characteristics
Ene
rgy
need
ed
to c
lose
doo
r
Che
ck f
orce
on
leve
l gr
ound
Ene
rgy
need
ed
to o
pen
door
Wat
er r
esis
tanc
e
10 6 6 9 2 3
7
5
3
3
2
X
X
X
X
X
Correlation:Strong positivePositiveNegativeStrong negative
X*Competitive evaluation
X = UsA = Comp. AB = Comp. B(5 is best)
1 2 3 4 5
X AB
X AB
XAB
A X B
X A B
Relationships:Strong = 9Medium = 3Small = 1Target values
Red
uce
ener
gy
leve
l to
7.5
ft/lb
Red
uce
forc
eto
9 lb
.
Red
uce
ener
gy to
7.5
ft/l
b.
Mai
ntai
ncu
rren
t lev
elTechnical evaluation(5 is best)
54321
B
A
X
BAX B
AX
BXA
BXABA
X
Doo
r se
al
resi
stan
ce
Acc
oust
. Tra
ns.
Win
dow
Mai
ntai
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rren
t lev
el
Mai
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ncu
rren
t lev
el
House of Quality Example
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Reliability
• A measure of the ability of a product to perform its intended function under a prescribed set of conditions (normal operating conditions)
• May be a criterion for the buyer
• May be a determinant of price
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Improving Product Reliability
• Component design
• Testing
• Redundancy
• Preventive maintenance procedures
• User education
• System design
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Service Design
• Differences between service design and product design
• Overview of service design
• Design guidelines
• Service blueprinting
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Differences Between Service Designand Product Design
• Products tangible; services intangible
• Services created and delivered at the same time
• Services cannot be inventoried
• Services highly visible to customer
• Some services have low barriers to entry and exit
• Location often important to service design
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Steel productionAutomobile fabrication
House buildingRoad construction
DressmakingFarming
Auto RepairAppliance repair
Maid ServiceManual car wash
TeachingLawn mowing
Low service contentHigh goods content
High service contentLow goods content
Increasinggoods content
Increasingservice content
Goods-service spectrumFigure 4-3
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Service Variability & Customer Influence Service Design
Variabilityin ServiceRequirements
Figure 4-4
Degree of Contact with Customer
High
Moderate
Low
None
None Low Moderate High
TelephonePurchase
Dept. StorePurchase
CustomizedClothing
InternetPurchase
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Design Guidelines
• Have a single, unifying theme
• Make sure the system has capability to handle variability in demand
• Include design features to ensure quality
• Design system to be user friendly
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Service Blueprinting• Establish boundaries for the and decide level of
detail• Identify the steps involved and describe them• Prepare a flowchart of major steps• Identify potential failure points• Establish timeframe for execution, and an estimate
of variability in processing time requirements• Analyze profitability
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Robodog Great Idea?
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