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CHAPTER 4 PRODUCT AND SERVICE DESIGN

CHAPTER 4 PRODUCT AND SERVICE DESIGN

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Published by Abdelrahman Zohairy
CHAPTER 4 PRODUCT AND SERVICE DESIGN

CHAPTER 4 PRODUCT AND SERVICE DESIGN

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Published by: Abdelrahman Zohairy on Jan 09, 2013
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CHAPTER 4PRODUCT AND SERVICE DESIGN
In planning the production system, major decisions are made concerning the design of the product orservices as well as the design of the production processes. Entrepreneurs usually formulate newbusinesses based on a unique product or a service idea. In existing firms, new products or services areintroduced when the competition for existing products increases or as existing products approach the endof their product life cycle. Even after a few new products are launched, and even if these products aresuccessful, since they have limited life cycles, companies always seek and consider new productpossibilities. If a company continuously monitors new product possibilities, and if there is a productfailure among the current products, or if there is a significant change in the product market, then thecompany can still be in position to release a new product to fill the void. This chapter focuses on thedesign of the products and services. The main topics in this chapter include:1.The reasons, trends, and objectives of Product and Service Design.2.The Design Process (Designing for mass customization, reliability, robust design, etc.).3.Research and Development.4.Standardization.5.Product Design (concurrent engineering, computer aided design, remanufacturing).6.Service Design.7.Quality Function Deployment.8.Operations Strategy.There aren’t many things more important to an organization than its products and/or services and there isa rather obvious connection between the design of those products and/or services and the organization’ssuccess. Consequently, organizations are vitally concerned about achieving outstanding product andservice design so they can compete in today’s global marketplace.
Answers to Discussion and Review Questions
1.Organizations redesign their products and services for a variety of reasons. Among them arecustomer dissatisfaction, government regulation, competition, liability claims, technologicalinnovation (products and methods) and changes in costs and availability of such inputs asmaterials, labor and energy.2.Applied research is research with a specific “commercial” application goal; basic research isintended to increase knowledge about a subject or area.3.CAD refers to computer-aided design: computer graphics used for product design. A designercan easily modify an existing design or create a new one. The designer can readily obtain avariety of different perspectives as well as other pertinent information that speeds the process andfrees the designer to concentrate on creative aspects of design.4.The main advantages of standardization are:a.Less variety of parts to deal with.b.Permits standardized training, purchasing, inspection and material handling. It may alsopermit automation.
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60
 
c.Enables production to stock, which allows filling orders from inventory, and potentially longproduction runs.Among the main disadvantages of standardization are the following:a.Designs may be “frozen” with too many imperfections remaining.b.The high cost of design changes increases resistance to improvement.c.Decreased variety may lessen consumer appeal.5.Modular design refers to viewing a product (and sometimes a service) as being composed of anumber of “chunks” or sections instead of a collection of individual parts. In effect, it is oneform of standardization. Among the advantages of modular design are ease of diagnosis andrepair of failures, standardization of manufacturing, more routine purchasing, inventory controland training. The disadvantages of modular design include a decrease in possible variety of theproduct, the possibility of not being able to disassemble a module to replace a faulty part, andpossible resistance to design improvements, particularly minor ones, if they cannot be readilyincorporated into an existing configuration.6.Product designers must take into consideration the organization’s manufacturing capabilities toproduce a particular product. Operations people should be involved early in the design process toensure that the design will be compatible with the organization’s capabilities. Production/Operations people can provide the necessary input that make things apparent before problemsarise in production. Marketing people should also be involved to ensure that customerrequirements will be given proper consideration.7.Some of the competitive advantages of concurrent engineering are:a.Manufacturing personnel are able to identify production capabilities andcapacities. Very often, they have some latitude in design in terms of selectingsuitable materials and processes. Knowledge of production capabilities can helpin the selection process. In addition, cost and quality considerations can begreatly influenced by design, and conflicts during production can be greatlyreduced.b.Early opportunities for design or procurement of critical tooling, some of whichmight have a long lead time. This can result in a major shortening of the productdevelopment process, which could be a key competitive advantage.c.Early consideration of the technical feasibility of a particular design or a portionof a design. Again, this can avoid serious problems during production.d.More effective resource allocation.e.The emphasis can be on
 problem
resolution instead of
conflict 
resolution.8.Remanufacturing involves removing some of the parts and components of old products andreusing them in new products. The advantages of remanufacturing include the following:a.Remanufactured products are cheaper to make than new products.b.Remanufactured products require less skilled workers than new products.c.There will be less depletion of natural resources.9.The term “life cycle” refers to a sequence of stages of demand that products or services gothrough. A typical sequence consists of incubation, growth, maturity, saturation and decline.Efforts to improve design may depend on the stage of the life cycle: In the early stages, there is a
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greater potential for returns than in later stages. Moreover, many design changes can beanticipated early during the life cycle as familiarity with the product or service increases.10.Research and development can contribute to productivity by helping to uncover new and betterways for designing, fabrication, and assembly of products and new ways of providing services.R&D is a key factor because it can be directed towards productivity improvements, as opposed toachieving improvements as a by-product of operations through trial and error, for example.11.Mass customization is a strategy of producing standardized goods or services while incorporatinga certain degree of customization in the final product or service. Mass customization can beachieved using a couple of different tactics. These tactics are delayed differentiation and modulardesign.Delayed differentiation involves postponing completion of the service or the product untilobtaining specific information about customer preferences and specifications. Once the companyhas knowledge about specific customer preferences, the customized specifications areincorporated on almost-completed units. This approach reduces product or service delivery leadtimes while reducing costs and improving the efficiency due to standardization.Mass customization can also be achieved through modular design. Modular design is a form ofproduct standardization in which components are classified into modules that are easily replaced,interchanged, assembled or disassembled. Advantages and disadvantages of modular design arediscussed in the answer to discussion question five.12.Differences between service design and product design:a.Products are generally tangible; services are generally intangible. Consequently, servicedesign often focuses more on intangible factors (e.g., peace of mind, ambiance) than doesproduct design.b.Services are often produced and received at the same time (e.g. a haircut, a car wash). Thus,there is less latitude in finding and correcting errors
before
the customer has a chance todiscover them. Consequently, training, process design, and customer relations areparticularly important.c.Services cannot be inventoried. This poses restrictions on flexibility and makes capacitydesign very important.d.Services are highly visible to consumers and must be designed with that in mind; this adds anextra dimension to process design, one that usually is not present in product design.e.Some services have low barriers to entry and exit. This places additional burden on servicedesign to be innovative and cost-effective.f.Location is often important to service design, with convenience as a major factor. Hence,design of services and choice of location are often closely linked.13.Robust design is a design that results in products or services that can function over a broad rangeof conditions. The more robust a product the less likely it will fail due to a change in theenvironment in which it is used. The more designers can build robustness into the product, thebetter it should hold up, resulting in a higher level of customer satisfaction. It does not mean justmaking products heavier and bigger because these may not be attributes customers desire in aproduct. They may want a robust design that is lighter and compact.14.Quality function deployment (QFD) is a structures approach for integrating the “voice of theconsumer” into the product development process. The purpose is to ensure that customerrequirements are factored into every aspect of the process from product planning to theproduction floor. Listening to and understanding the customer is the central feature of QFD.
 Instructor’s Manual, Chapter 4
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