PRODUCTS AND

SERVICES

To Accompany Russell and Taylor, Operations Management, 4th Edition ,  2003 Prentice-Hall, Inc. All rights reserved.
Design of Products
Humor in Product Design
As the customer wanted it. As Marketing
interpreted it.

© 1984-1994 T/Maker Co. © 1984-1994 T/Maker Co.

As Operations made it. As Engineering

designed it.

© 1984-1994 T/Maker Co. © 1984-1994 T/Maker Co.

What is a Product?

 Need-satisfying offering of an organization

Example

P&G does not sell laundry detergent

P&G sells the benefit of clean clothes

 Customers buy satisfaction, not parts
 May be a good or a service
Why Companies Design New Products
and Services

 To be competitive
 To increase business growth and profits
 To avoid downsizing with development of new products
 To improve product quality
 To achieve cost reductions in labor or materials
 Product or Service Design Activities
• Translate customer wants and needs into product and service
requirements (marketing, operations)
• Refine existing products and services (marketing)
• Develop new products and services (marketing, operations)
• Formulate quality goals (marketing, operations)
• Formulate cost targets (accounting, finance, operations)
• Construct and test prototypes (operations, marketing, engineering)
• Document specifications
• Translate product and service specifications into process specifications
(engineering, operations)
 Reasons for Design or Re-Design
• The driving forces for product and service design or
redesign are market opportunities or threats:
– Economic
– Social and Demographic
– Political, Liability, or Legal
– Competitive
– Cost or Availability
– Technological
Major Factors to be Considered in the (Product
and Service) Design Strategy
•Function of product/service
•Cost
•Quality
•Time-to-market
•Appearance
•Customer satisfaction
•Ease of production/assembly
•Ease of maintenance/service

Product and service design – or redesign – should be

closely tied to an organization’s strategy
 Product Design

 Specifies materials
 Determines dimensions & tolerances
 Defines appearance
 Sets performance standards
 Service Design
 Specifies what the customer is to experience
 Physical items
 Sensual benefits
 Psychological
benefits
An Effective Design Process

 Matches product/service characteristics with customer

needs
 Meets customer requirements in the simplest,
most cost-effective manner
 Reduces time to market
 Minimizes revisions
 Few Successes

Number of
Ideas
2000
1750
Market Design review,
1500 requirement Testing, Introduction
1000
Functional
1000 specifications
500 Product
500 specification
One
100 25
success!
0
Development Stage
 Key Questions (1 of 2)
• Is there a demand for it?
– Market size
– Demand profile
• Can we do it?
– Manufacturability - the capability of an organization to
produce an item at an acceptable profit
– Serviceability - the capability of an organization to
provide a service at an acceptable cost or profit
 Key Questions (2 of 2)
• What level of quality is appropriate?
– Customer expectations
– Competitor quality
– Fit with the current offering
• Does it make sense from an economic standpoint?
– Liability issues, ethical considerations, sustainability
issues, costs and profits
 Legal Considerations
• Legal Considerations
– Product liability
• The responsibility a manufacturer has for any injuries
or damages caused by as faulty product
• Some of the concomitant costs
– Litigation
– Legal and insurance costs
– Settlement costs
– Costly product recalls
– Reputation effects
 Normative Behavior in Product Design
• Produce designs that are consistent with the goals of the
organization
– e.g., Do not compromise on quality, or cut corners, even
in areas that are not apparent to the customer
• Give customers the value they expect
• Make health and safety a concern
– Do not place employees, customers, or third parties at
risk because of faulty products and services
 Sustainability
• Sustainability
– Using resources in ways that do not harm the ecological
systems that support human existence
• Key aspects of designing for sustainability
– Life cycle assessment
– Reduction of costs and materials used
– Re-using parts of returned products
– Recycling
 Life Cycle Assessment (LCA)
• LCA
– The assessment of the environmental impact of a
product or service throughout its useful life
• Focuses on such factors as
– Global warming
– Smog formation
– Oxygen depletion
– Solid waste generation
• LCA procedures are part of the ISO 14000
environmental management procedures
 Reduce: Costs and Materials
• Value Analysis/Value Engineering
– Examination of the function of parts and materials in an
effort to reduce the cost and/or improve the
performance of a product
– Achieve equivalent or better performance at a lower
cost while maintaining all functional requirements
defined by the customer
– Ratio of Value/Cost
– Value analysis focuses on design improvments during
production
Common Questions Used in Value Analysis/
Value Engineering

Could a less expensive part of material be

used?
Is the function necessary?
Can the function of two or more parts be
performed by a single part?
Can a part be simplified?
Could product specifications be relaxed?
Could standard parts be substituted for non-
standard parts?
 Common Questions Used in Value Analysis/
Value Engineering
Assessment of value :
– 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 less costly method, tools, material?
– Can it be made cheaper, better or faster by someone else?
– Does the item have any design features that are not
necessary?
– Can two or more parts be combined into one?
– Are there nonstandard parts that can be eliminated
 Benefits of VA/VE
• Benefits:
simplified products
additional standardization of products
improved functional aspects of product
improved job design and job safety
improved maintainability of the product
robust design
reduction in cost
Cost Reduction of a Bracket via Value
Engineering
 Re-Use: Remanufacturing
• Remanufacturing
– Refurbishing used products by replacing worn-out or
defective components (and reselling the products)
• Can be performed by the original manufacturer or another
company
– Design for disassembly (DFD)
• Designing products so that they can be easily taken apart
• Includes fewer parts and less material and using snap-fits
where possible instead of screws or nuts and bolts
 Recycle
• Recycling
– Recovering materials for future use
• Applies to manufactured parts
• Also applies to materials used during production
– Why recycle?
• Cost savings
• Environmental concerns
• Environmental regulations
– Design for recycling (DFR)
• Product design that takes into account the ability to
disassemble a used product to recover the
recyclable parts
Design for the Environment

 Design safe and environmentally sound (eg.

recyclable) products
 Design from recycled material
 Use materials which can be recycled
 Design for ease of repair
 Minimize packaging
 Minimize material & energy
used during manufacture, consumption & disposal
“Green Manufacturing”

 Make products recyclable

 Use recycled materials
 Use less harmful ingredients
 Use lighter components
 Use less energy
 Use less material
 Benefits of Environmentally Friendly Designs

• Benefits
– Safe and environmentally sound products
– Minimum raw material and energy waste
– Product differentiation
– Environmental liability reduction
– Cost-effective compliance with environmental regulations
– Recognition as good corporate citizen
Design for the
Environment
Other Considerations in Product and Service
Design

• Product or service life cycles

• Standardization
• Product or service reliability
• Product or service robustness
Product or service life stages
 Products in Various Stages of Life Cycle

Sales
Growth Maturity
Introduction CD-ROM Decline
Internet Jet Ski, fax machines

Boeing
727
Flat-
3½
screen
Floppy
monitors
disks
Time
 Standardization

 Standardization
Extent to which there is absence of variety in a
product, service or process
 Standardized products are immediately available to
customers
 Advantages of Standardization
(1 of 2)
• Fewer parts to deal with in inventory & manufacturing
• Design costs are generally lower
• Reduced training costs and time
• More routine purchasing, handling, and inspection procedures
 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.
 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.
 Designing for Mass Customization

 Mass customization: A strategy of producing basically

standardized goods or services, but incorporating some
degree of customization in the final product or service
 Facilitating Techniques
Delayed differentiation
Modular design
 Delayed Differentiation
 Delayed differentiation is the process of producing but
not quite completing a product or service until customer
preferences or specifications are known
 It is a postponement tactic (produce a piece of furniture,
but do not stain it until the customer chooses the stain)
 Modular Design
Modular design is a form of standardization in which
component parts are subdivided into modules that are easily
replaced or interchanged.
 Advantages
• easier diagnosis and remedy of failures
• easier repair and replacement
• simplification of manufacturing and assembly
• And it adds flexibility to both production and marketing
Disadvantages
• Limited number of possible product configurations
• Limited ability to repair a faulty module; the entire module must be
scrapped
 Reliability

 Reliability: The ability of a product, part or system to perform its

intended function under a prescribed set of conditions over a
specified length of time. It is expressed as the probability that the
product performs its intended function for a specified length of
time
 Normal Operating Conditions: the set of conditions under which an
item’s reliability is specified
 Maintainability: Ease and/or cost of maintaining/ repairing product
Computing Reliability (1 of 2)

Components in series

0.90 0.90 0.90 x 0.90 = 0.81

Computing Reliability (2 of 2)

Components in series

0.90 0.90 0.90 x 0.90 = 0.81

Components in parallel

0.90
R2

0.95 0.95 + 0.90(1-0.95) = 0.995

R1
Robust Design
Robust design
 A design that results in products or services that can function over a broad range of conditions
 A robust product is to be designed that is insensitive to environmental factors either in
manufacturing or in use
 Pertains to product as well as process design

Consider the following automobiles:

 Ferrari 599

 Toyota Avalon

 Which is design is more robust?

Design for Robustness

 Product can fail due to poor design quality

 Products are subjected to many conditions
 Product is designed so that small variations in production or
assembly do not adversely affect the product
 Design products for consistent performance
 Robust design studies
• Controllable factors - under designer’s control
• Uncontrollable factors - from user or environment
 Central feature is parameter design
Degree of Newness

Product or service design changes can be in the form of:

 Modification of an existing product or service
 Expansion of an existing product line or service offering
 Clone of a competitor’s product or service
 New product or service
The degree of change affects the newness of the product or
service to the market and to the organization
 Risks and benefits?
 Percent of Sales From New Product
50%
45%
40%
35% Industry Leader
30%
25% Top
20% Third Middle
15% Third
10% Bottom
5% Third
0%
Position of Firm in Its Industry
Phases in Design & Development

1. Idea generation
2. Feasibility analysis
3. Product specifications
4. Process specifications
5. Prototype development
6. Design review
7. Market test
8. Product introduction
9. Follow-up evaluation
Main Phases in the Design Process

1. Idea Generation — Product Concept

2. Feasibility Study — Performance Specifications
3. Preliminary Design — Prototype
4. Final Design — Final Design Specifications
5. Process Planning — Manufacturing Specifications
The Design Process

Idea Feasibility
generation Product or service study Performance
concept specifications

Suppliers Customers Form design

R&D
Revising and testing
Marketing Competitors
prototypes

Functional Production
design design
Design Manufacturing or
New product or specifications delivery
specifications
service launch
Pilot run
Final design and final tests
& process plans
Step 1: Idea Generation (1 of 5)

 Suppliers, distributors, salespersons, competitors

 Trade journals and other published material
 Warranty claims, customer
complaints, failures
 Customer surveys, focus
groups, interviews
 Field testing, trial users
 Research and development
Idea Generation (2 of 5)

1. Supply-chain based
2. Competitor based
3. Research based
Supply-Chain Based (3 of 5)

Ideas can come from anywhere in the supply chain:

 Customers
 Suppliers
 Distributors
 Employees
 Maintenance and repair personnel
Competitor-Based (4 of 5)

By studying how a competitor operates and its products and

services, many useful ideas can be generated
Reverse engineering
 Dismantling and inspecting a competitor’s product to discover product improvements
Research Based (5 of 5)
Research and Development (R&D)
Organized efforts to increase scientific knowledge or product
innovation & may involve:
Basic research
 Has the objective of advancing the state of knowledge about a subject
without any near-term expectations of commercial applications
Applied research
 Has the objective of achieving commercial applications

Development
 Converts the results of applied research into useful commercial
applications.
Tools of Idea Generation

 Perceptual Maps
 Visual comparison of
customer perceptions
 Benchmarking
 Comparing product/service
against best-in-class
 Reverse engineering
 Dismantling and inspecting a competitor’s product to
discover product improvements
 Step 2: Feasibility Study

 Market
Analysis
 Economic
Analysis
 Technical / Strategic Analysis
Performance Specifications are written for product concepts
that pass the feasibility study
Step 3: Preliminary Design

 Create form & functional design

 Build prototype
 Test prototype
 Revise prototype
 Retest
3.1. Form Design
(How the Product Looks)

Cellular Personal Safety

Personal Computer
Alarm
 3.2. Functional Design

 Relates to how the product performs

 Relates to the concept of Reliability and Maintainability
3.3. Production Design

Part of the preliminary design phase

 Simplification
 Standardization
 Mass customization
3.3.1. Design Simplification (1 of 3)

(a) The original design

Assembly using
common fasteners
3.3.1. Design Simplification (2 of 3)

(a) The original design (b) Revised design

One-piece base &

Assembly using
elimination of
common fasteners
fasteners
3.3.1. Design Simplification (3 of 3)

(a) The original design (b) Revised design (c) Final design

Assembly using One-piece base & Design for

common fasteners elimination of push-and-snap
fasteners assembly
Steps 4&5: Final Design & Process Plans

 Produce detailed drawings & specifications

 Create workable instructions for manufacture
 Select tooling & equipment
 Prepare job descriptions
 Determine operation & assembly order
 Program automated machines
Product Strategy Options

 Product differentiation
 Low cost
 Rapid response (product life cycles are becoming shorter,
therefore faster developers of new products gain on slower
developers and obtain a competitive advantage)
 Improving the Design Process

 Design teams & concurrent design

 Design for manufacturing - Manufacturability
 Component commonality
 Design for assembly
 Design for disassembly
 Design to prevent failures and ensure value
 Design for the environment
 Measure design quality
 Utilize quality function deployment
 Utilize Computer Aided Design
 Design for robustness
 Engage in collaborative design
 Organizing for Product Development (1 of 2)

• Historically – distinct departments

– Duties and responsibilities are defined
– Difficult to foster forward thinking
• Today – team approach
– Representatives from all disciplines or functions
– Concurrent engineering – cross functional team
 Organizing for Product Development (2 of 2)

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

• Concurrent Engineering
– “Let’s work together simultaneously”
 “Over the Wall” Approach

New
Product

Mfg Design
Breaking Down Barriers to Effective Design
Design Teams

 Marketing, manufacturing, engineering

purchasing personnel
 Suppliers, dealers, customers
 Lawyers, accountants, insurance companies
 Concurrent Engineering: Defined
Concurrent engineering is the bringing together of personnel from
various functions together early in the design phase.
CE can be defined as the simultaneous development of project
design functions, with open and interactive communication existing
among all team members for the purposes of reducing time to
market,
market decreasing cost, and improving quality and reliability
Time savings are created by performing activities in parallel
DFM and DFA

Design for manufacturing (DFM)

The designing of products that are compatible with an

organization’s abilities

Design for assembly (DFA)

Design that focuses on:

 reducing the number of parts in a product
 the assembly methods

 the sequence of assembly operations

 Design for Manufacturing and Assembly

 Design a product for easy & economical production

 Incorporate production design early in the design
phase
 Taking into account the manufacturing capabilities (equipment, skills, types of
materials, schedules, technologies) of the organization in designing goods
 The more general term “design for operations” encompasses services as well
as manufacturing
 Improves quality, productivity and reduces costs
 Shortens time to design and manufacture
 DFMA Guidelines

1. Simplify products by reducing the number of separate parts

2. Minimize the number of parts, tools, fasteners, and
assemblies
3. Use standard parts and repeatable processes
4. Design parts for many uses
5. Incorporate modularity in design
6. Design for ease of assembly, minimal handling
7. Allow for efficient testing and parts replacement
 Design for Manufacturing and Assembly
DFMA software allows designers to examine the integration of part
designs before the product is manufactured.
Answers are required for such questions as:
• During the operation of the product, does the part move
relative to all other parts already assembled?
• Must the part be of a different material or be isolated from
other parts already assembled?
• Must the part be separate from all other parts to allow the
disassembly of the product for adjustment or maintenance?
Manufacturability

Manufacturability
 Ease of fabrication and/or assembly
 It has important implications for
Cost
Productivity
Quality
Component Commonality

When products have a high degree of similarity in

features and components, a part can be used in multiple
products
Benefits:
Savings in design time
Standard training for assembly and installation
Opportunities to buy in bulk from suppliers
Commonality of parts for repair
Fewer inventory items must be handled
Design Review

 Failure Mode and Effects Analysis (FMEA)

 A systematic approach for analyzing causes &
effects of failures
 Prioritizes failures
 Attempts to eliminate causes
 Fault Tree Analysis (FTA)
 Study interrelationship between failures
 Value Analysis (VA)
Fault Tree for Potato Chips
 FMEA for Potato Chips
FAILURE
MODE CAUSE OF FAILURE EFFECT OF FAILURE CORRECTIVE ACTION

Stale Low moisture Tastes bad, won’t Add m cure longer,

content, expired shelf crunch, thrown out, better package seal,
life, poor packaging lost sales shorter shelf life

Broken Too thin, too brittle, Can’t dip, poor Change recipe,
rough handling, display, injures change process,
rough use, poor mouth, chocking, change packaging
packaging perceived as old, lost
sales

Too Salty Outdated receipt, Eat less, drink more, Experiment with
process not in health hazard, lost recipe, experiment
control, uneven sales with process,
distribution of salt introduce low salt
version
 Designing for the Customer:
Quality Function Deployment (QFD)
 QFD is an approach that integrates the “voice of the customer” into the
product and service development process. Translates customer
preferences into specific product characteristics
 Enables to design for the customer
 Cross functional teams are used
 Displays requirements in matrix diagrams
 First matrix called “house of quality”
 Series of connected houses
 Quality Function Deployment Process
 Identify customer wants
 Identify how the good/service will satisfy customer wants
 Relate customer wants to product hows
 Identify relationships between the firm’s hows
 Develop importance ratings
 Evaluate competing products
House of Quality (1 of 2)

Importance
5
Correlation matrix

3
Design
requirements

1 4 2
Customer Relationship Competitive
requirements matrix assessment

6 Target values
House of Quality (2of 2)
Series of QFD Houses

Product
characteristics
requirements
Customer

Part characteristics
A-1
characteristics
Product

Process
House A-2 characteristics
of
quality

characteristics
Parts A-3 Operations

Part
deployment

characteristics
Process
Process A-4
planning
Operating
requirements
Benefits of QFD

 Promotes better understanding of customer demands

 Promotes better understanding of design interactions
 Involves manufacturing in the
design process
 Breaks down barriers between
functions and departments
 Provides documentation of
the design process
 Technology in Design: Computer Aided
Design (CAD)
• Product design using
computer graphics
• Designing products at
a computer terminal or work
station
– Design engineer
develops rough
sketch of product
– Uses computer to © 1995 Corel Corp.

draw product
• Often used with CAM
 Technology in Design
 CAD - Computer Aided Design
 Assists in creating and
modifying designs
 CAE - Computer Aided Engineering
 Tests & analyzes designs
on computer screen
 CAM refers to the use of specialized
computer programs to direct and
control manufacturing equipment
 CAD/CAM - Design & Manufacturing
 Automatically converts CAD data into processing instructions for
computer controlled equipment
 Benefits of CAD (1 of 2)

 Produces better designs faster

 Increases the productivity of designers, 3 to 10 times and thus
allows more time for designers to work on creative projects
 Reduces costs and increases product quality
 Creates a database for manufacturing information on product
specifications (Builds database of designs and creates
documentation to support them)
 Shortens time to market
 Benefits of CAD (1 of 2)
 Reduces time to manufacture
 Enlarges design possibilities
 Enhances communication and promotes innovation in design teams
 Provides the possibility of engineering and cost analysis on
proposed designs

CAD that includes finite element analysis (FEA) can significantly

reduce time to market
Enables developers to perform simulations that aid in the
design, analysis, and commercialization of new products
Consistency is Important in Design

 Consistent errors are easier to correct than random

errors
 Parts within tolerances
may yield assemblies
which aren’t
 Consumers prefer
product characteristics
near their ideal values
Kano Model

Basic quality
 Refers to customer requirements that have only limited effect on
customer satisfaction if present, but lead to dissatisfaction if absent
Performance quality
 Refers to customer requirements that generate satisfaction or
dissatisfaction in proportion to their level of functionality and appeal
Excitement quality
 Refers to a feature or attribute that was unexpected by the customer
and causes excitement
 The Kano Model

Kano
KanoModel
Model
atisfaction
erSSatisfaction

Excitement
Excitement
Expected
Expected
Customer

Must
MustHave
Have
Custom

Customer
CustomerNeeds
Needs
 Trends in Product & Service Design (1 of 2)

Increased emphasis on or attention to:

Customer satisfaction (by translating customer wants and
needs into product and service requirements)
Reducing time to introduce new product or service
Reducing time to produce product
 Trends in Product & Service Design (2 of 2)
Increased emphasis on or attention to:

The organization’s capabilities to produce or deliver the item

Refining existing products and services
Environmental concerns
Designing products & services that are “user friendly”
Designing products that use less material
 Global Product Design
 Virtual teams
Uses combined efforts of a team of designers working in
different countries
Provides a range of comparative advantages over traditional
teams such as:
Engaging the best human resources around the world
Possibly operating on a 24-hr basis
Global customer needs assessment
Global design can increase marketability
 Design Guidelines (1 of 2)
 Produce designs that are consistent with the goals of the
company
 Take into account the operations capabilities of the
organization in order to achieve designs that fit with those
capabilities
 Take into account the cultural differences related to product
design (for multinationals)
 Give customers the value they expect
 Make health and safety a primary concern
 Consider potential harm to the environment
Design Quidelines (2 of 2)

 Increased emphasis on components

commonality
 Package products and services
 Use multiple-use platforms
 Consider tactics for mass customization
 Look for continual improvement
 Shorten time to market