4-1

Product and Service Design

Chapter 4

Product and Service Design

Modified by Aisha Mohsin Operations Mgmt 10th Edition

McGraw-Hill/Irwin

Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-2

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 Translate Product specifications into process specifications
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What Does Product/Service Design Do?

Product and Service Design

4-3

Reasons for Product or Service Redesign An organization takes into account both external and internal reasons in order to design a new product or service or redesign an existing product or service. The reasons listed next have often been the primary reason for the design process.

Product and Service Design

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4-4

Product and Service Design

Reasons
1. Economic

2. Social and demographic 3. Political, liability, or legal 4. Competitive 5. Technological

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4-5

Product and Service Design

Bottom Line
What is important is to realize that whether its a single reason or multiple reasons for a design strategy, the end result should always be an improved, safe and reliable product which should bring revenue and competitive advantage to the organization
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4-6

Product and Service Design

The Key Questions

From a buyers stand point; What is the cost ? And Am I getting quality or value for my money ? From the Organization's standpoint; Is there demand for it? Can we do it ? Is outsourcing an option? Is it economical ? What are the liability issues? Is the level of quality appropriate?
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4-7

Product and Service Design

Legal and Ethical Considerations

Is there a potential to harm the environment? Is the company abiding by govt. regulations? For example; an auto industry should take care of safety features in a car like seal belt, air bags, etc and not to forget the pollution standards.
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4-8

Product and Service Design

And
Give Customer expect the VALUE they

Make HEALTH and SAFETY a primary concern Uniform Commercial Code Products SHOULD carry an implication of merchantability and fitness. (Warranties by the State
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-9

Product and Service Design

Sustainability-Environmentally Conscious Design

The intention of sustainable design is to "eliminate negative environmental impact completely choose non-toxic, sustainably produced or recycled materials which require little energy to process
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4-10

Product and Service Design

Continue..
longer-lasting and betterfunctioning products will have to be replaced less frequently, reducing the impacts of producing replacements

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4-11

Product and Service Design

Life Cycle Assessment -LCA

Its the environmental impact of a product/service throughout its useful life or life cycle It focuses on factors like; global warming, oxygen depletion Solid waste generation
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4-12

Product and Service Design

Imagine !!
Every year, Americans throw away 50 billion food and drink cans, 27 billion glass bottles and jars, and 65 million plastic and metal jar and can covers. More than 30% of our waste is packaging materials. Where does it all go? Some 85% of our garbage is sent to a dump, or landfill, where it can take from 100 to 400 years for things like cloth and aluminum to decompose. Glass has been found in perfect
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-13

Product and Service Design

Its Time to Learn.

We are quickly running out of space. It's time to learn the three R's of the environment: reduce, reuse, recycle. Then practice what you preach: don't buy things you don't need or items that come in wasteful packaging or that cannot be recycled. Reuse and Recycle whatever you can !!!!! Save the planet
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4-14

Product and Service Design

Reduce or Value Analysis

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Examine the functions of the parts of the product so that you reduce the cost of making or improve its performance in future So its Reducing the amount of waste you produce???! This is HOW .. Buy products that don't have a lot of packaging Instead of buying something you're not going to use very often, see if you can borrow it from someone

Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-15

Product and Service Design

Can YOU Reduce ??

Start a compost bin. Some people set aside a place in their yard where they can dispose of certain food and plant materials. Over time, the materials will break down through a natural process called decomposition. The compost is good for the soil in your yard and means that less garbage will go to the landfill.
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4-16

Product and Service Design

Can YOU Reduce??

You can reduce waste by using a computer! Many newspapers and magazines are online now. Instead of buying the paper versions, you can find them on the Internet. Also remember that you should print out only what you need. Everything you print that you don't really need is a waste of paper.
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-17

Product and Service Design

Can You Reuse ??

Instead of throwing things away, try to find ways to use them again! For example: Bring cloth sacks to the store with you instead of taking home new paper or plastic bags. You can use these sacks again and again. You'll be saving some trees! Plastic containers and reusable lunch bags are great ways to take your lunch to school without
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-18

Product and Service Design

Can YOU Reuse ?

Coffee cans, shoe boxes, margarine containers, and other types of containers people throw away can be used to store things or can become fun arts and crafts projects. Use your imagination! Don't throw out clothes, toys, furniture, and other things that you don't want anymore. Somebody else can probably use them. You can bring them to a center that collects
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-19

Product and Service Design

Remember ..
You can always replace the worn-out defective parts of the product and resell it..This leads to the concept of Design for Disassembly..Which is designing products in such a way so that they can be easily taken apart Suggested Reading: Pg. no 139
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-20

Product and Service Design

Can YOU Recycle??

Recycled items (soda cans, paper bags, milk cartons) are put through a process that makes it possible to create new products out of the materials from the old ones. Many brands of paper towels, garbage bags, greeting cards, and toilet paper, to name a few examples, will tell you on their labels if they are made from recycled materials.
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-21

Strategies For Product/Service Life Stages

Saturation Maturity

Product and Service Design

Demand

Decline Growth

Incubation

Time
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-22

Product and Service Design

PLC The life span of each stage of a product may vary from a few months to years. For an example, within no time some products reach growth stage as soon as they were introduced in the market. Now we will discuss about each stage of the product life cycle.
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-23

Product and Service Design

Development Stage
The development stage can be a protracted stage and will involve activities such as design, planning, costing, test marketing, etc. The costs are high, with no earned revenue (and thus it does not register as a stage on the diagram)
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-24

1- Birth/Incubation/ Introduction Stage This is the stage where a product will be introduced after initial decisions like; Technology selection, Location and layout design of production facility After study of raw material, manpower resources availability

Product and Service Design

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4-25

Product and Service Design

2- Growth Stage
This stage is about looking for growth. It is very critical in the operation management. The key of success is lying in this stage. How we take the product to people or how people will have the feel of necessity of the product depends on the efficient
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-26

Product and Service Design

Stage 2- Growth
Sometimes the time taking to reach to growth stage will be faster because of the uniqueness of a product design or its usage when compared with its competitor's products. Major efforts are required at this stage to push with all possible strategies in an ethical
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-27

Product and Service Design

3- Maturity Stage
Once the product is established, the PLC enters into the maturity stage. At this stage organization takes feedback from various groups of users and improves the product usability with add on features and introduces different models without changing the basic
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-28

Product and Service Design

4- Decline/Death Stage
As discussed in maturity stage, in case business management could not predict the impact of the new product growth and lack of taking necessary changes in the product design, the product life cycle enters into the decline or death stage, which leads to the organization merging with new companies or liquidation or sale.
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-29

Product and Service Design

Conclusion
The operation management of the organization should always keep watching the new trends of people's taste or requirements And the available latest technology and competitor's new proposals so that necessary actions can be taken in advance to decrease the growth stage Increase the span of the maturity stage.
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-30

Product and Service Design

Standardization-Disadvantages
Extent to which there is absence of variety in a product, service or process. 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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4-31

Product and Service Design

Extent to which there is absence of variety in a product, service or process. Fewer parts to deal with inventory & manufacturing Reduced training costs and time More routine handling, and
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StandardizationAdvantages

in

Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

purchasing, inspection

4-32

Standardization- Advantages
Orders fill able 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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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Product and Service Design

4-33

Product and Service Design

Designing for Mass Customization

A strategy of producing standardized goods or services, but incorporating some degree of customization. Several tactics makes this possible; Delayed differentiation Modular design
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-34

Product and Service Design

Delayed Differentiation
Delayed differentiation is a postponement tactic where the manufacturing process starts by making a generic or family product that is later differentiated into a specific end-product. This is a widely used method, especially in industries with high demand uncertainty, It can be effectively used to address
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-35

Product and Service Design

Benetton- Delayed Differentiation

An example would be Benetton and their knitted sweaters that are initially all white, and then dyed into different colors only when the season/customer color preferences/demand is known.

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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-36

Product and Service Design

Modular Design
Modular Design is an approach in which component is an approach that subdivides a system into smaller parts (modules) that can be independently created and then used in different systems to drive multiple functionalities. It allows; reduction in cost (due to lesser customization, and less learning time flexibility in design An example would be computers, If
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-37

Product and Service Design

Dell Computers and Modular Design

Dell Computers has used MD successfully to become a dominant force in the PC industry by offering consumers the opportunity to configure modules according to their own specifications.

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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-38

Product and Service Design

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 items reliability is specified
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-39

Product and Service Design

Improving Reliability
Component design Production/assembly techniques Testing Redundancy/backup Preventive maintenance procedures User education System design
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-40

Product and Service Design

Robust Design
Robust Design: 1.Design that results in products or services that can function over a broad range of condition 2.Robust Design is a proven development philosophy focused on achieving target reliability 3.The objective is to make the endproduct immune to factors that could adversely affect performance
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-41

Product and Service Design

Robust Design

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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-42

Product and Service Design

Robust Design
Robust Design: Not just strong. Flexible! Idiot proof! Simple! Efficient! A product/process that produces consistent, high-level performance "despite being subjected to a wide range of changing client and manufacturing conditions...."

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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-43

Product and Service Design

Taguchis Approach
Its easier to make a product that is insensitive to environmental factors, instead of controlling them like manufacturing imperfections, and deterioration

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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-44

Product and Service Design

Idea generation Feasibility analysis Product specifications Process specifications Prototype development Design review Market test Product introduction Follow up evaluation

Phases in product design and development

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4-45

Product and Service Design

Reverse Engineering and R& D

Reverse engineering is the dismantling and inspecting of a competitors product to discover product improvement Organized efforts that are directed towards increasing scientific knowledge and product or service innovation.

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4-46

Product and Service Design

Concurrent Engineering
Concurrent engineering is the bringing together of engineering design and manufacturing personnel early in the design

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4-47

Product and Service Design

Us versus Them Mentality

Traditionally, designers would design a product without any input from manufacturing and then turned over the design to them Manufacturing pple would face a huge challenge, invested a lot of time for to handle this over the wall approach.. For these reasons, the Concurrent Eng or The Simultaneous
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4-48

Product and Service Design

Concurrent Engineering
It is to achieve a smooth transition from design to production Decreases development time Its about bringing design and manufacturing people together in the design phase Marketing, purchasing and manufacturing pple working as cross-functional teams The emphasis is on Problem
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4-49

Product and Service Design

Computer Aided Design CAD

Product design using computer graphics An existing design can be modified Use of a light pen, a key board, a joy stick etc On the screen, a design can split apart, rotated, enlarged Designer can take a print version and file it electronically No more laboriously mechanical
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-50

Product and Service Design

DFM
Products are initially conceptualized to provide a particular capability and meet identified performance objectives and specifications. a product can be designed in many different ways. The designer's objective must be to optimize the product design with the production system.
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4-51

Product and Service Design

DFM
A company's production system includes its suppliers, material handling systems, manufacturing processes, labor force capabilities and distribution systems. A designer's primary objective is to design a functioning product within given economic and schedule constraints Hence the designing of products
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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

4-52

Product and Service Design

DFA
Design for Assembly is a process by which products are designed with ease of assembly in mind. If a product contains fewer parts it will take less time to assemble, thereby reducing assembly costs. In addition, if the parts are provided with features which make it easier to grasp, move, orient and insert them, this will also reduce assembly time and assembly costs.
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4-53

Product and Service Design

DFA
The reduction of the number of parts in an assembly has the added benefit of generally reducing the total cost of parts in the assembly. This is usually where the major cost benefits of the application of design for assembly occur. Examples; Sony Walkman and Swatch Watch, in which parts are inserted in straight-down moves
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4-54

Product and Service Design

QFD
An approach that integrates the voice of the customer into both product and service type QFD is designed to help planners focus on characteristics of a new or existing product or service from the viewpoints of market segments, company, or technology development needs.
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4-55

Product and Service Design

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

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4-56

Product and Service Design

The Kano Model

Kano Model

Excitement Expected Must Have

n c f i a S r e m o t s u C

Customer Needs

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4-57

Product and Service Design

The Kano model is a theory of product development and customer satisfaction which classifies customer preferences into five categories: Attractive One-Dimensional Must-Be Indifferent Reverse
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The Kano Model

4-58

Product and Service Design

KANO MODEL
Attractive Quality These attributes provide satisfaction when achieved fully, but do not cause dissatisfaction when not fulfilled, These are attributes that are not normally expected, For example, a thermometer on a package of milk showing the temperature of the milk One-dimensional Quality These attributes result in satisfaction when fulfilled and dissatisfaction when not fulfilled, An example of this would be a milk package that is said to have ten percent more milk for the same price will result in customer satisfaction, but if it only contains six percent then the customer will feel misled and it will lead to dissatisfactionWilliam J. Stevenson Operations Management, Seventh Edition, by
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4-59

Product and Service Design

KANO MODEL
Must-be Quality These attributes are taken for granted when fulfilled but result in dissatisfaction when not fulfilled. An example of this would be package of milk that leaks. Customers are dissatisfied when the package leaks, but when it does not leak the result is not increased customer satisfaction. Since customers expect these attributes and view them as basic, then it is unlikely that they are going to tell the company about them when asked about quality attributes. Indifferent Quality These attributes refer to aspects that are neither good nor bad, and they do not result in either customer satisfaction or Operations J. customer dissatisfaction. Management, Seventh Edition, by WilliamInc. Stevenson reserved. Copyright 2002 by The McGraw-Hill Companies, All rights
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4-60

Product and Service Design

KANO MODEL

Reverse Quality These attributes refer to a high degree of achievement resulting in dissatisfaction and to the fact that not all customers are alike. For example, some customers prefer hightech products, while others prefer the basic model of a product and will be dissatisfied if a product has too many extra features.[1]

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4-61

Product and Service Design

Service and related ideas

Service is something that is done to or for a customer The skills, processes and facilities needed to provide a service is called Service Delivery System The combination of goods and services provided to a customer is called Product Bundle
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4-62

Product and Service Design

Service Design vs Product Design

Tangible intangible Services created and delivered at the same time, car wash, a haircut Services cannot be inventoried Services highly visible to customers Services have low barrier to entry Service has to be innovative to be effective
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4-63

Product and Service Design

Service Design
Location is important to service design Convenience is a major factor Service design in terms of customer contact..Low versus High Personalized services versus SW development Word of cautionreducing customer choices may result in dissatisfaction, e.g.: A cable operator who would bundle the channels without your choice
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4-64

Product and Service Design

Continue..
Standardizing or simplifying reduces the cost but lowers the appeals Its best utilized when Customer demand in incorporated

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4-65

Product and Service Design

Phases in Service Design

Service Blue Printing The process of describing and analyzing a proposed service, lets refer to table 4.5 on page 163 Its a simple blueprint for a restaurant That assumes Customers being places at the top and all the BACKSTAGE CONTACTS or Back Room Operations being located
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4-66

McGraw-Hill/Irwin

Major Steps in Service Blue Printing Establish boundaries Decide the level of detail Identify the sequence of actions and interactions refer to table 4.7 page 163 Develop time estimates for ach phase f the process Identify potential failure points Develop a plan to combat
Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Product and Service Design

4-67

Characteristics of well-Designed System

Product and Service Design

Being consistent with the org. mission Being user-friendly Being robust if variability is a factor Easy to sustain cost-effective Offering values that obvious to customer
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4-68

Product and Service Design

Challenges of Service Design Variable requirements that requires a range of inputs and outputs Difficult to describe, verbal descriptions are somewhat imprecise Customer contact is usually higher
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4-69

Product and Service Design

Guidelines

Describe the package in detail Focus on the operation from customer perspective Consider the image that package presents Recognize the design familiarity with the system Make sure you have the support from mgmt as far as the design is concerned and also when is implemented
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4-70

Product and Service Design

Guidelines
Quality described in terms of tangibles n intangibles Make sure that the rewards, training and recruitment policies are consistent with the service expectations Establish procedures to handle both predictable and unpredictable events Establish a system to monitor and
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4-71

Product and Service Design

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
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4-72

Product and Service Design

Is this YOU ??

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4-73

Product and Service Design

Lets prepare ahead of time!!!

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Operations Management, Seventh Edition, by William J. Stevenson Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.