OM-1 OPERATION MANAGEMENT
Chapter 4: PRODUCT AND SERVICE DESIGN
REASONS FOR PRODUCT AND SERVICE DESIGN
OR REDESIGN
 Product and Service Design
-has typically had strategic implications for the
access and prosperity of an organization.
 Value Analysis
-Examination of the function of parts and
materials in an effort to reduce cost and or improve
product performance.
OBJECTIVES OF PRODUCT AND SERVICES
DESIGN
 Designing for Operations
-Taking into the account the capabilities of the
organization in designing good and services.
LEGAL, ETHICAL, AND ENVIRONMENTAL
ISSUES
 Product Liability
-The responsibility of manufacturer for any
injuries or damages cause by a faulty product.
OTHER ISSUES IN PRODUCT AND SERVICE
DESIGN
 Life Cycle
-Incubation, growth, maturity, and decline.
 Standardization
-Extent to which there is absence of variety in a
product, service, or process.
ADVANTAGES AND DISADVANTAGES OF
STANDARDIZATION
ADVANTAGES
1. Fewer parts to deal with in inventory and in
manufacturing.
2. Reduced training costs and time.
3. More routine purchasing, handling, and
inspection procedures.
4. Orders fillable from inventory.
5. Opportunities for long production runs and
automation.
6. Need for fewer parts justifies increased
expenditures on perfecting designs and
improving quality control procedures.
DISADVANTAGES
1. Design may be frozen with too
many imperfections remaining.
2. High cost of design changes
increases resistance to
improvements.
3. Decreased variety results in less
consumer appeal.
DESIGNING FOR MASS CUSTOMIZATION
 Mass Customization
-A strategy of producing basically standardized
good, but incorporating some degree of
customization.
 Delayed Differentiation
-The process of producing, but not quite
completing a product or service until customer
preference are known.
 Modular Design
-A form of standardization in which component
parts are grouped into modules that are easily
replaced or interchanged.
 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.
 Robust Design
-Design that results in products or services that
can function over a broad range of conditions.
PHASES IN PRODUCT DESIGN AND DEVELOPMENT
“IDEA GENERATION”
Ideas can come from a variety of sources. They can
be;
1. Supply-chain based
2. Competitor based
3. Research based
 Reverse Engineering
-Dismantling and inspecting competitor’s
product to discover product improvements.
 Research And Development
-Organized effort’s to increase scientific
knowledge or product innovation.
DESIGNING FOR MANUFACTURING
 Concurrent Engineering
-Bringing engineering design and
manufacturing personnel together early in the design
phase.
 Computer-Aided Design
-Product design user computer graphics.
PRODUCTION REQUIREMENTS
 Design For Manufacturing (DFM)
-The designing of products that are compatible
with an organizations capabilities.
 Design For Assembly (DFA)
-Design that focuses on reducing the number of
parts in a and on assembly methods and sequence.
 Manufacturability
- The ease of fabrication and assembly.
 Recycling
-Recovering materials for future use.
 Design For Recycling (DFR)
-Design that facilities the recovery of materials
and components in used products for reuse.
 Remanufacturing
-Refurbishing used products by replacing worn-
out or defective components.
 Design For Disassembly (DFD)
-Design so that use products can be easily taken
apart.
QUALITY FUNCTION DEPLOYMENT
 Quality Function Deployment (QFD)
-An approach that integrates the “voice of
customer” into both product and service
development.
SERVICE DESIGN
 Service
-Something that is done for a customer.
 Service Delivery System (SDS)
-The facilities, processes, and skills needed to
provide a service.
 Product Bundle
-The combination of goods and services
provided to a customer.
 Service Package
-The physical resources needed to perform the
service, the accompanying goods and the implicit
service included.