PART
SYSTEMS DESIGN
THREE
•Chapter Four Product and Service
Design
•Chapter Four Supplement Reliability
•Chapter Five Capacity Planning
•Chapter Five Supplement Decision
Theory
•Chapter Six Process Design and Facility
Layout
•Chapter Six Supplement Linear
Programming
•Chapter Seven Design of Work Systems
•Chapter Seven Supplement
Learning Curves
•Chapter Eight Location Planning and
Analysis
•Chapter Eight Supplement The
Operations Management, Seventh Edition, by William J. Stevenson
Transportation Model
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
4-2 Product and Service Design
Chapter 4
Product and
Service Design
• Be competitive
• Increase business growth & profits
• Avoid downsizing with development of
new products
• Improve product quality
• Achieve cost reductions in labor or
materials
Kano Model
Customer Satisfaction
Excitement
Expected
Must Have
Customer Needs
• Internal
– Employees
– Marketing department
– R&D department
• External
– Customers (QFD)
– Competitors
– Suppliers
Reverse Engineering
• Legal
– FDA, OSHA, IRS
– Product liability
– Uniform commercial code
• Ethical
– Releasing products with defects
• Environmental
– EPA
Product Design
Saturation
Maturity
Demand
Decline
Growth
Incubation
Time
Operations Management, Seventh Edition, by William J. Stevenson
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
4-19 Product and Service Design
Advantages of Standardization
Disadvantages of Standardization
Mass Customization
Mass customization:
– A strategy of producing standardized
goods or services, but incorporating some
degree degree of customization
– Delayed differentiation
– Modular design
Delayed Differentiation
Delayed differentiation is a
postponement tactic
– Producing but not quite completing a
product or service until customer
preferences or specifications are known
Modular Design
Reliability
Improving Reliability
• Component design
• Production/assembly techniques
• Testing
• Redundancy/backup
• Preventive maintenance procedures
• User education
• System design
Operations Management, Seventh Edition, by William J. Stevenson
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
4-27 Product and Service Design
Robust Design
Concurrent Engineering
Concurrent engineering
is the bringing together
of engineering design and
manufacturing personnel
early in the design phase.
New
Product
Mfg Desig
n
Operations Management, Seventh Edition, by William J. Stevenson
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
4-32 Product and Service Design
Computer-Aided Design
Manufacturability
Product design
Recycling
High Customized
Clothing
Variability
in Moderate Dept. Store
Service
Purchase
Require-
ments Low Telephone
Purchase
None Internet
Purchase
None Low Moderate High
Correlation
matrix
Design
requirements
Customer
Relationship Competitive
require-
matrix assessment
ments
Specifications
or
target values
Water resistance
*
Accoust. Trans.
Energy needed
Energy needed
Im
to close door
Engineering
to open door
Check force
po
resistance
Competitive evaluation
Door seal
rta Characteristics
Window
X = Us
on level
nc
ground
A = Comp. A
et B = Comp. B
Customer oC (5 is best)
Requirements us 1 2 3 4 5
t.
X AB
Easy to close 7
Stays open on a hill X AB
5
Easy to open 3 XAB
A XB
Doesn’t leak in rain 3
No road noise 2 X A B
Strong = 9
Reduce energy
Reduce energy
Reduce force
current level
current level
current level
to 7.5 ft/lb.
Medium = 3
Target values
Maintain
Maintain
Maintain
to 9 lb. Small = 1
5 B
BA BA
B B BXA X
Technical evaluation 4
A
X
A X
3
(5 is best) 2 X
X A
1
Operations Strategy
• Shorten time-to-market
• Package products and services
• Increase emphasis on component
commonality
• Use multiple-use platforms
• Consider tactics for mass customization
• Look for continual improvement