product and operation management

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Chapter 4

Product and Service Design



• Introduction to Design Process

• Ensuring Quality of Products & Services through Design

• Enhancing Strategic Capabilities through Design

• Impact of Technology on Design

• Difference between Product and Service Design

• Product Development Process

• Economic Analysis of Development Projects

• Designing for the Customer

• Design for Manufacturability

• Measuring Product Development Performance

OBJECTIVES



Introduction

“DESIGN AS A PROCESS” is the purposive application of

creativity throughout the process of innovation.

(Ref. - Design in Business – Strategic Innovation Through Design, Bruce & Besant)

• Design can provide a competitive edge.

• Design of Product & Service desired

– to meet the business competition• Encouraging a company to look beyond the boundaries

• Bringing new ideas and learning above conventional thinking and

experiments

• Breaking the barriers, working in teams, and integrating across functions.

– to address the social and environmental issues

• Design is a critical process for a firm – Defines strategically its customers as well as competitors

– Capitalizes on its core competencies

– Determines the new competencies need to be developed

– Drives the change – new products and services

– Defines new markets and processes



Design Process

• Product design – What materials to be used

– Dimensions and tolerances

– Appearance

– Performance standard

• Service design

– What physical items to offer – Sensual benefits

– Psychological benefits

• Importance of design – Impact on quality of products and services

– Costly design overprices the offerings and loses market share

– Lengthy design process allows the competitors to introduce their

new products/services/features first

– Hurried designs may lead to have flaws and poor performance

– Effective design meets customer needs, simply, cheaply, timely,

easily….



• Concept Design

– Idea generation

– Feasibility study

•Preliminary design

– Form design

– Functional design

– Production design

• Final design

–Process plan

DesignProcess

Idea Generation

Feasibility Study

FormDesign

Functional

Design

Production

Design

Pilot-run &

Final Tests

New Product /

service Launch

CustomersSuppliers R & D

Marketing Competitors

Product or Service Concept

Performance Specifications

Revising and

Testing of

Prototypes

Design

Specifications

Manufacturing

or DeliverySpecifications

Final Design & Process plans



Idea Generation

dea generation in the Design Process

– Begins out of understanding and identifying customer needs

– Concept of new product development or improvements to existing

products

– Sources of idea are Co’s own R&D dept, Customer complaints or

suggestions, marketing research, suppliers, salespersons in the

field, factory workers, new technological developments,

Competitors

• Perceptual Map, Benchmarking and Reverse Engineering can help companies

learn from their competitors



• Perceptual Map

– A visual method of comparing the customer perceptions of

a company’s products and services with competitors’

• Benchmarking

– A method of comparing a company’s product or process

with the best-in-class and making recommendations for

improvement

• Reverse Engineering

– A careful dismantling of competitor’s product to look for

design features that can be incorporated into yours

Customers are often attracted by superior technology

and creative ideas of the Co’s R&D Dept.

• Expenditure on R&D can be enormous and risky.

• Ideas generated by R&D may follow a long path to commercialization



Perceptual Map of Breakfast Cereals



Feasibility Study consists of Market analysis, Economic Analysis & Technical/Strategic Analysis

• Market researchers and analysts do the market analysis

– Design and evaluate customer surveys, interviews, focus groups, or market

tests to asses the product/service demand and scope of investment

• Economic analysis – Looks at estimates of production and development cost

– Compares the above to estimate a sales volume

– Helps in developing a price compatible to the market segment

– Evaluates profit potential of the project by using quantitative techniques like:

• Cost-benefit analysis

• Decision theory

• Net present value or Internal rate of return

• Technical / Strategic analysis

– Does the new product need new technology?

– Is the risk of capital investment very high?

– Does the company have enough labor and management skills to support therequired technology?

– Is sufficient capacity available for production?

– Does the new product provide a competitive advantage to the company?

– Does it draw on corporate strength?

– Is it compatible with the core business of the firm?

Performance specifications are satisfied by the above tests.



PreliminaryDesign

• A Rapid Prototyping Stage

• It involves building and testing a prototype; revising and

retesting until a viable design comes up.

• Design include both form and function.

Form Design

• How the product will look by – shape, size, color,

style?

• Aesthetics like – image, market appeal, personal

identification.

FunctionalDesign

• How the product will perform?

• It meets the performance specifications of fitness for

use by the customers.

• Two important performance characteristic are –

usability, reliability and maintainability.



Usability

• Ease of use of a product or service

– ease of learning

– ease of use

– ease of remembering how to use

– frequency and severity of errors

– user satisfaction with experience



Reliability • It is the probability that a given part and product will perform its

intended function for a specified length of time under normal

conditions of use.

• A product or system reliability is a function of the reliabilities of its

component parts.

Rs = (R1)(R2) ….. (Rn), where Rn is the reliability of the nth component.

For a series of two components, each with reliability of 0.90, the system

reliability is 0.90 x 0.90 = 0.81 (or 81 percent). This shows that, fewer

the number of components (or simpler the design) better is the

reliability.

But in case of back-up (parallel) design, given for critical components,

Rs = 1 - [(1 - R1)(1 - R2)] = 1 – (0.10 x 0.10) = 1 – 0.001 = 0.999 (or 99.9%).

Reliability of a system can be seen in terms of MTBF (Mean Time Before Failure i.e. the

length of time a product or service in operation, before it fails. [or MTBF = 1/ Failure Rate].

0.90 0.90

0.90

0.90



System Reliability

0.92

0.90

0.98 0.98

1 – [(1- 0.92)(1- 0.90)]=0.9920.98 0.98

0.98 x 0.992 x 0.98 = 0.9527



Maintainability or Serviceability

• It is the ease with which a product or service is maintained or

repaired.

•Specifying regular maintenance schedule is part of maintainability i.e. proper planning for up-keeping (or

availability) of critical replacement parts.

Availability, SA = MTBF/ (MTBF + MTTR)

Example: While choosing the service provider, a company finds the following dataon availability. Which one to choose?

Service Provider MTBF (hr.) MTTR (hr.)A 60 4.0B 36 2.0C 24 1.0

Answer: System Availability, SA = MTBF/ (MTBF + MTTR)

SA A= MTBF/ (MTBF + MTTR) = 60/ 64 = 0.9375

SA B= MTBF/ (MTBF + MTTR) = 36/ 38 = 0.9473

SA C= MTBF/ (MTBF + MTTR) = 24/ 25 = 0.96

C should be chosen for its highest value of availability.



ProductionDesign • How the product will be made?

• Poor production designs results into poor quality of products.

• Often production people redesign products on the factory shop-floor.

• Recommended approaches to production design are: Simplification,

Standardization and Modularity .

Simplification: • Reduces the number of parts, subassemblies, and options in a product

• It also avoids tooling, using separatee fasteners, and making

adjustments.

Standardization makes possible the interchangeability of parts among products.

• Results in high-volume of production and purchasing, Lower

investment in inventory, easier purchasing and material handling less

quality inspections.

Modular Design combines standardized building blocks (or modules) to create unique

finished products.

DFM

(Design for Manufacture)

Designing a product so that it can be produced easily and economically.



Design

Simplification

(b) Revised design

One-piece base &

elimination of

fasteners

(c) Final design

Design for

push-and-snap

assembly

(a) Original design

Assembly using

common fasteners

Source: Adapted from G. Boothroyd and P. Dewhurst, “Product Design…. Key to

Successful Robotic Assembly.” Assembly Engineering (September 1986), pp. 90-93.



Final Design and Process Plans

• The final design consists of detailed drawings and

specifications for the new product or service.

• The accompanying process plans are workable

instructions for manufacturing that includes:

– Necessary equipment and tooling – Component sourcing recommendations

– Job descriptions and procedures for workers

– Computer programs for automated machines (if in use)

• Launching the new product or service involves

ramping up production, coordinating the supply-chain

and rolling out marketing plans.



Techniques for improving the Design Process

• Establishing multifunctional design teams

• Making design decisions Concurrently

• Designing for Manufacture and Assembly

• Reviewing Designs to prevent failures andensure value

• Designing for the Environment

• Measuring Design Quality

• Using Quality Function Deployment

• Designing for Robustness

• Engaging in Collaborative Design



• Full-time participants from marketing, manufacturing and engineering are

essential to effective product design.

• Other useful team members can be – customers, dealers, suppliers, lawyers,

accountants….

• The critical interactive factors between success and failure of a new product are

– create, make and market.

• The team remains in tact till the end of life of the product to continually work on

design improvements.

• Team members co-locate, sharing a work-space where team meetings, vendor

appointments ad product-fit sessions r held.

• The operational nature of the team significantly lowers the time-to-launch a new

product to the market without much design changes.

• Teams help people - do their job better, improve communications, spark

creativity.

Establishing multifunctional design teams



• Concurrent design is a new approach to design that involves the

simultaneous design of products and processes by design teams.

• Concurrent design also means involving the customer in the design

process before production begins.

• A supplier, expert in his area, as a member, is asked to prepare a

prototype for testing. This saves a lot of development time and

resources.

• IBM did early manufacturing involvement (EMI) first and then did

continuous manufacturing involvement (CMI).

• Sequential design vs. Concurrent design (cost-plus approach vs.

price-minus approach).

• Techniques like PERT/CPM (to mange scheduling more complex

tasks), Target costing and Value analysis are more in use.

• Making design decisions Concurrently



Sequential vs. Concurrent Design Approach

S e q u e

n t i a l

D e s i g n i n g

C o n c u

r r e n t

D e s i g n i n g



Design for Manufacturability

• Traditional Approach – “We design it, you build it” or “Over the wall”

• Concurrent Engineering

– “Let’s work together simultaneously”



Design for Manufacturing and Assembly

Greatest improvements related to DFMA arise from

simplification of the product by reducing the number of separate parts:

1.During the operation of the product, does the part moverelative to all other parts already assembled?

2.Must the part be of a different material or be isolated fromother parts already assembled?

3.Must the part be separate from all other parts to allow the

disassembly of the product for adjustment or maintenance?



Design Review to prevent failures and ensure value

• Review designs to prevent failures andensure value

– Failure mode and effects analysis (FMEA)

• a systematic method of analyzing product failures

– Fault tree analysis (FTA)

• a visual method for analyzing interrelationships

among failures

– Value analysis (VA)

• helps eliminate unnecessary features and functions



FMEA for Potato ChipsFMEA for Potato Chips

FailureMode

Cause ofFailure

Effect ofFailure

CorrectiveAction

Stale low moisture content

expired shelf life

poor packaging

tastes bad

won’t crunch

thrown out

lost sales

add moisture

cure longer

better package seal

shorter shelf life

Broken too thin

too brittle

rough handling

rough use

poor packaging

can’t dip

poor display

injures mouth

chocking

perceived as oldlost sales

change recipe

change process

change packaging

Too Salty outdated receipt

process not in control

uneven distribution of salt

eat less

drink more

health hazard

lost sales

experiment with recipe

experiment with process

introduce low salt version



Fault tree analysis (FTA)



Value analysis (VA)

• Can we do without it?

• Does it do more than is required?

• Does it cost more than it is worth?

• Can something else do a better job?

• Can it be made by

– a less costly method?

– with less costly tooling?

– with less costly material?

• Can it be made cheaper, better, or faster by

someone else?



Value analysis (VA) ………Contd.

• Updated versions also include:

– Is it recyclable or biodegradable?

– Is the process sustainable?

– Will it use more energy than it is worth?

– Does the item or its by-product harm the

environment?



Design for Environment and

Extended Producer Responsibility

• Design for environment – designing a product from material that can be recycled

– design from recycled material

– design for ease of repair

– minimize packaging

– minimize material and energy used during manufacture,consumption and disposal

• Extended producer responsibility – holds companies responsible for their product even after itsuseful life



Design for Environment



Sustainability

• Ability to meet present needs without compromisingthose of future generations

• Green product design – Use fewer materials

– Use recycled materials or recovered components

– Don’t assume natural materials are always better

– Don’t forget energy consumption

– Extend useful life of product

– Involve entire supply chain – Change paradigm of design

Source: Adapted from the Business Social Responsibility Web site, www.bsr.org, accessed April 1, 2007.

http://www.bsr.org/

http://www.bsr.org/



Quality Function Deployment (QFD)

• Translates voice of customer into technical design requirements

• Displays requirements in matrix diagrams

– first matrix called “house of quality”

– series of connected houses

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