Chapter 4 Product and Service Design Copyright

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Chapter Outline ®Product Design Process ®Sources of Ideas for New or Redesigned Products ®Key Issues in Product Design ®Differences in Designing Services ®Quality Function Deployment Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 2

Product Design Process: Phases 1. Idea generation 2. Build a business case: market and competitor analysis 3. Development: translate the “ voice of the customer” 4. Testing and validation 5. Launch LO 1 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 3

Sources of Ideas for Products ® Employees (Role Model: Google) ® Marketing ® Research and Development (R&D) ® Customers ® Survey or Focus Groups ® Competition (Role Model: Samsung) ® Reverse engineering (the dismantling and inspecting of a competitor’s product to discover product improvements) ® Suppliers LO 2 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 6

Searching for New Product Ideas 1. 2. 3. 4. 5. LO 2 Listening to the Market Complaints Gaps in the Market Exploring Niche Markets Using New Technology Creating New Market Space Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 8

Concurrent Engineering ® Bringing engineering design, manufacturing, marketing and purchasing staff together early in the design phase. ®Instead of “Over the Wall” Approach New Product LO 3 Mfg Design Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 9

Issues in Product Design ® ® ® LO 3 Life Cycles Standardization Mass Customization Reliability Robust Design Legal and Ethical Issues Design for Environment Concurrent Engineering Computer-Aided Design (CAD) Design for Manufacturing and Assembly Component Commonality Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 12

Standardization ®Standardization Extent to which there is an absence of variety in a product, service or process ®Advantages ®Economies of scale reduce costs in production and purchasing ®Design time spent on improvements ®Disadvantages ®Limits range of consumer appeal. ®Designs frozen prematurely resist modifications. ®Reduced training costs and time LO 3 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 14

Design for Mass Customization ®A strategy of producing standardized goods or services, but incorporating some degree of customization ®Delayed differentiation ®Modular design LO 3 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 15

Delayed Differentiation ®Producing, but not quite completing, a product or service until customer preferences are known ®a postponement tactic LO 3 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 16

Modular Design ® A form of standardization ® parts are subdivided into modules ® modules easily replaced or interchanged. ® Advantages include: ® easier diagnosis and remedy of failures ® easier repair and replacement ® simplification of manufacturing and assembly ® But may need to scrap entire module if faulty LO 3 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 17

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 LO 3 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 18

Robust Design ®Design that can function over a broad range of conditions ®Taguchi Approach ®Easier to create robust design than to control environmental factors. ®Central feature is Parameter Design. ®Determines: ð factors that are controllable and those not controllable ð their optimal levels relative to major product advances LO 3 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 19

Legal and Ethical Issues ® Legal ®FDA, EPA, HPA ®Change in standards or bans = change in design ®Patent/trademark/copyright violations ®Product liability ®for injury/damage caused by faulty workmanship or design ® Ethical ®Releasing products with defects ®Environmental issues LO 3 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 21

Design for Environment energy efficiency of product energy efficiency used in manufacturing hazardous material minimization emissions and wastes in manufacturing bio-degradable disposal, packaging re-use, including packaging disassembly and remanufacture LO 3 recycling, including packaging Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 22

Design for Environment ®Remanufacturing ®Refurbishing used products by replacing worn-out or defective components. ®Design for disassembly ®Design so that used products can be easily taken apart. ®Recycling ®recovering materials for future use LO 3 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 23

Computer-Aided Design ®Computer-Aided Design (CAD) is product design using computer graphics. ® increases productivity of designers, 3 to 10 times ® creates a database for manufacturing information on product specifications ® provides possibility of engineering and cost analysis on proposed designs LO 3 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 24

Design for Manufacturing and Assembly Manufacturability is a key concern for manufactured goods: ease of fabrication and/or assembly is important for cost, productivity, and quality. ®Design for Manufacturing (DFM) ®Considering organization’s manufacturing capabilities when designing a product. ®Design for Assembly (DFA) ®focuses on reducing the number of parts in a product and on assembly methods and sequence. ®Component Commonality ®Multiple products or product families that have a high degree of similarity can share components LO 3 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 25

Design for Manufacturability ® DFM - the process of designing a product for efficient production at the highest level of quality. ® Example guidelines (see Table 12. 1) ®Minimize number of parts ®Design for robustness ®Eliminate adjustments ®Make assembly easy and foolproof ®Use repeatable, well-understood processes ®Choose parts that can survive process operations ®Design for efficient and adequate testing ®Lay out parts for reliable process completion ®Eliminate engineering changes Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 26

Key Differences Between Goods and Services 1. Services are intangible ® ambiance, convenience, image 2. Services created and delivered at same time ® cannot be inventoried or “fixed” beforehand ® training, process design, customer relations important 3. Services are customized, vary in length 4. Services have low barriers to entry and exit 5. Location important to service design LO 4 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 27

Service Variability & Customer Contact Degree of Contact with Customer High Customized clothing selling (highly customized) Moderate Department store selling Low Telephone Selling Internet Selling (highly standardized) Minimal High Moderate Low Minimal Variability in Service Requirements LO 4 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 28

Quality Function Deployment What is Quality Function Deployment? ! QFD: An approach that integrates the “voice of the customer” into product design. LO 5 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 30

Quality Function Deployment House of Quality 1. Identify customer requirements. 2. Identify technical requirements. 3. Relate the customer requirements to the technical requirements. 4. Conduct an evaluation of competing products or services. 5. Evaluate technical requirements and develop targets. 6. Determine which technical requirements to deploy in the remainder of the production/delivery process. LO 31 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

The House of Quality Correlation matrix Design requirements Customer requirements Relationship matrix Competitive assessment Specifications or target values LO 5 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved. 32

Practice Q # 1 From focus groups, 3 M notices consumers needed an extra hand when wrapping gifts so they created a Pop-up Tape Dispenser. This was an example of which approach to finding new product ideas? o Listening to market complaints o Gaps in the market o Exploring niche markets o Using new technology o Creating new market space LO 38 Copyright © 2010 by The Mc. Graw-Hill Companies, Inc. All rights reserved.