rjs product & service design

8/2/2019 RJS Product & Service Design

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Introduction: Products and services are often the first

thing that customers see of a company, so they should have

an impact. And although operations managers may not

have direct responsibility for product and service design,

they always have an indirect responsibility to provide the

information and advice upon which successful product or

service development depends. But, increasingly, operations

managers are expected to take a more active part in

product and service design.

The design of products and services


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What is designed in a product or service?

All products and services can be considered as having

three aspects:

a concept, which is the understanding of the nature,

use and value of the service or product;

a package of componentproducts and services that

provide those benefits defined in the concept;

the process defines the way in which the component

products and services will be created and delivered.


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The design activity is itself a process: Producing designs forproducts, services is itself a process which conforms to the

input transformationoutput model. It therefore has to be

designed and managed like any other process. Figure

illustrates the design activity as an input transformation

output diagram. The transformed resource inputs will consist

mainly of information in the form of market forecasts, market

preferences, technical data, and so on.


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The stages of design: To get to a final design of a product orservice, the design activity must pass through several key stages.

These form an approximate sequence, although in practice designers

will often recycle or backtrack through the stages. First, comes the

concept generation stage that develops the overall concept for the

product or service. The concepts are then screened to try to ensure

that, in broad terms, they will be a sensible addition to its

product/service portfolio and meet the concept as defined. The agreed

concept has then to be turned into a preliminary design that then goesthrough a stage ofevaluation and improvement to see if the concept

can be served better, more cheaply or more easily. An agreed design

may then be subjected to prototyping and final design.


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Concept generation:

# Ideas from customers.

# Listening to customers.

# Ideas from competitor activity.

# Ideas from staff.

# Ideas from research and development.


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Phases in Product Design and Development

Idea generation: Product development begins with idea

generation. Ideas can come from a variety of sources. This topic

will be discussed in detail following this section.Feasibility analysis: Feasibility analysis entails market analysis

(demand), economic analysis (development cost and production

cost, profit potential), and technical analysis (capacity

requirements and availability, and the skills needed). Also, it isnecessary to answer the question, Does it fit with the mission?

It requires collaboration among marketing, finance, accounting,

engineering, and operations.

Product specifications: This involves detailed descriptions ofwhat is needed to meet (or exceed) customer wants, and

requires collaboration between legal, marketing, and operations.


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Process specifications: Once product specifications have been set,

attention turns to specifications for the process that will be needed to

produce the product. Alternatives must be weighed in terms of cost,

availability of resources, profit potential, and quality. This involvescollaboration between accounting and operations.

Prototype development: With product and process specifications

complete, one (or a few) units are made to see if there are any problems

with the product or process specifications.

Design review: Make any necessary changes, or abandon. Involvescollaboration among marketing, finance, engineering, design, and

operations.

Market test: A market test is used to determine the extent of consumer

acceptance. If unsuccessful, return to the design review phase. This

phase is handled by marketing.

Product introduction: Promote the product. This phase is handled by

marketing.

Follow-up evaluation: Determine if changes are needed, and refine

forecasts. This phase is handled by marketing.


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Concept screening:Three broad categories of designcriteria:

The feasibility of the design option can we do it?

Do we have the skills (quality of resources)?Do we have the organizational capacity (quantity of resources)?

Do we have the financial resources to cope with this option?

The acceptability of the design option do we want to do it?

Does the option satisfy the performance criteria which the designis trying to achieve? (These will differ for different designs.)

Will our customers want it?

Does the option give a satisfactory financial return?

Thevulnerability of each design option do we want to take

the risk? That is,Do we understand the full consequences of adopting the option?

Being pessimistic, what could go wrong if we adopt the option?


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Specify the components of the package: The firsttask in this stage of design is to define exactly what will go into the

product or service: that is, specifying the components of the

package. This will require the collection of information about such

things as the constituent component parts which make up the product

or service package and the component (or product) structure, the

order in which the component parts of the package have to be put

together.


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Reducing design complexity: Simplicity is usually seen

as a virtue amongst designers of products and services.

The most elegant design solutions are often the simplest.

However, when an operation produces a variety of

products or services (as most do) the range of products

and services considered as a whole can become complex,

which, in turn, increases costs. Designers adopt a number

of approaches to reducing the inherent complexity in the

design of their product or service range.


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Commonality: Using common elements

within a product or service can also simplifydesign complexity. Using the same

components across a range of automobiles is a

common practice.

Standardization: Operations sometimes

attempt to overcome the cost penalties of high

variety by standardizing their products,services or processes. This allows them to

restrict variety to that which has real value for

the end-customer. Often it is the operationsoutputs which are standardized.


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Modularization: The use of modular design principles

involves designing standardized sub-components of a

product or service which can be put together in different

ways. It is possible to create wide choice through the fully

interchangeable assembly of various combinations of a

smaller number of standard sub-assemblies.

Define the process to create the package: The

product/service structure and bill-of-materials specifies

what goes into a product. It is around this stage in the

design process where it is necessary to examine how aprocess could put together the various components to

create the final product or service.


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Design evaluation and improvement: Thepurpose of this stage in the design activity is to

take the preliminary design and see if it can beimproved before the product or service is

tested in the market. There are a number of

techniques that can be employed at this stage

to evaluate and improve the preliminary

design. Here we treat three which have proved

particularly useful:

Quality function deployment (QFD) Value engineering (VE) Taguchi methods.


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Quality function deployment: Thekey purpose of quality function deployment

(QFD) is to try to ensure that the eventualdesign of a product or service actually meets

the needs of its customers. Customers may

not have been considered explicitly since theconcept generation stage, and therefore it is

appropriate to check that what is being

proposed for the design of the product or

service will meet their needs.


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Better Designs in Half the Time!

QFD Is a Productivity Enhancer

CUSTOMERCONCEPT

Plan Design Redesign Manufacture

Plan Design Redesign Manufacture Benefits

Traditional Timeline

What Does QFD Do?


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Four Phase of QFD (G. Kannan, 2008)


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QFD is a tool which integrates three distinct voices, namely, Voice of

Business (VoB), Voice of Customer (VoC) and Voice of Engineer (VoE).

VoB deals with organizational requirements and resource limitations. It issatisfied by generating profits through new and improved products.

VoC deals with customersneeds and requirements within budget constraints.

VoE deals with technical requirements and constraints. It is satisfied bydesigning a product that is compatible with manufacturing facilitiesand endures operating conditions.


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IDENTIFYING & CLASSIFYING CUSTOMER REQUIREMENT

IDENTIFYING IMPORTANCE OF CUSTOMER REQUIREMENT

IDENTIFYING DESIGN DEPENDENT PARAMETER

CORRELATE REQUIREMENTS & PARAMETEETR

CHECK CORRELATION GRID

BENCHMARK CUSTOMER PERCEPTIONS

BENCHMARK DESIGN DEPENDENT PARAMETER

ANALIZE CORRELATION GRID FOR INCONSISTENCIES

DELINEATE DESIGN DEPENDENT PARAMETER TARGET VALUE AND

RELATIVE PRIORITIES

NEED

The Quality Function Deployment (QFD) process


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The QFD matrix is a formal articulation of how the company sees

the relationship between the requirements of the customer (the

whats) and the design characteristics of the new product (the hows).


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The matrix contains various sections, as explained below:

The whats, or customer requirements, is the list of competitive

factors which customers find significant. Their relative importance is

scored, in this case on a 10-point scale, with accurate scoring thehighest.

The competitive scores indicate the relative performance of the

product, in this case on a 1 to 5 scale. Also indicated are the

performances of two competitor products.

The hows, ordesigncharacteristicsof the product, are the variousdimensions of the design which will operationalize customer

requirements within the product or service.

The central matrix (sometimes called the relationship matrix)

represents a view of the interrelationship between the whats and thehows. This is often based on value judgments' made by the design

team. The symbols indicate the strength of the relationship.

Th b tt b f h i i h i l


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The bottom box of the matrix is a technical

assessment of the product. This contains the absolute

importance of each design characteristic. [For

example, the design characteristic interfaces has arelative importance of (9 5) + (1 9) = 54.] This is

also translated into a ranked relative importance. In

addition, the degree of technical difficulty to achievehigh levels of performance in each design

characteristic is indicated on a 1 to 5 scale.

The triangular roofof the house captures anyinformation the team has about the correlations

(positive or negative) between the various design

characteristics.


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QFD can be used to

Reduce product development time by 50%

Cut start-up & engineering costs by 30%

Reduce time to market

Reduce of design changes


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Value engineering: The purpose of value engineering is to try toreduce costs, and prevent any unnecessary costs, before producing

the product or service. Simply put, it tries to eliminate any costs that

do not contribute to the value and performance of the product orservice. (Valueanalysis is the name given to the same process when

it is concerned with cost reduction after the product or service has

been introduced.)

Taguchi methods: The main purpose of Taguchi methods, asadvocated by Genichi Taguchi, is to test the robustness of a design.

The basis of the idea is that the product or service should still

perform in extreme conditions.

Example: A telephone should still work even when it has been

knocked onto the floor. Although one does not expect customers toknock a telephone to the floor, this does happen, and so the need to

build strength into the casing should be

considered in its design.

The benefits of interactive design: A number of factors have been


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The benefits of interactive design: A number of factors have been

suggested which can significantly reduce time to market for a product

or service, including the following:

simultaneous development of the various stages in the overall

process; an early resolution of design conflict and uncertainty;

an organizational structure which reflects the development project.

If the development process takes longer than expected (or

even worse, longer than competitors) two effects are likely to show.The first is that the costs of development will increase. Having to use

development resources, such as designers, technicians,

subcontractors, and so on, for a longer development period usually

increases the costs of development. Perhaps more seriously, the lateintroduction of the product or service will delay the revenue from

its sale (and possibly reduce the total revenue substantially if

competitors have already got to the market with their own products or

services). This is illustrated in Figure 5.9.


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Simultaneous development: When each stage is separate,

with a clearly defined set of tasks, any difficulties

encountered during the design at one stage might

necessitate the design being halted while responsibility

moves back to the previous stage. The main problem of the

sequential approach is that it is both time consuming and

costly. This sequential approach is shown in Figure 5.10(a).This principle can be taken right through all the

stages, one stage commencing before the previous one has

finished, so there is simultaneous or concurrent work on

the stages (see Fig. 5.10(b)). (Note that simultaneousdevelopment is often calledsimultaneous (or concurrent)

engineering in manufacturing operations.)


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Early conflict resolution: Characterizing the design activity as a whole


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Early conflict resolution: Characterizing the design activity as a wholeseries of decisions is a useful way of thinking about design. However, a

decision, once made, need not totally and utterly commit the organization.If the

design team manages to resolve conflict early in the design activity, this will

reduce the degree of uncertainty within the project and reduce the extra cost and,most significantly, time associated with either managing this uncertainty or

changing decisions already made. Figure 5.11 illustrates two patterns of design

changes through the life of the total design, which imply different time-to-

market performances.


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Why is good product and service design important?

Good design makes good business sense because it

translates customer needs into the shape and form of the

product or service and so enhances profitability. Design includes formalizing three particularly important

issues: the concept, package and process implied by the

design.

Design is a process that itself must be designed according

to the process design principles described in the previous

chapter.

What are the stages in product and service design?Concept generation transforms an idea for a product or

service into a concept which captures the nature of the

product or service and provides an overall specification for

its design.


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