Industrial Engineering and Engineering

Management

Dr. Zehra Canan Araci

Fall 2020-2021
Product and Service Design
Design is the process of deciding on the unique characteristics
and features of the company’s product/service.

Product Design
 Plumbing
 MP3-player
 Pool Pump
 Hot Tub / Spa

Service Design:
 Gas stations
 Retail checkout / cashiers
 Major factors in design strategy
⚫ Cost
⚫ Quality
⚫ Time-to-market
⚫ Customer satisfaction
⚫ Competitive advantage

Product and service design – or redesign – should be

closely tied to an organization’s strategy
1. Translate customer wants and needs into product and
service requirements
2. Refine existing products and services
3. Develop new products and services
4. Formulate quality goals
5. Formulate cost targets
6. Construct and test prototypes
7. Document specifications
8. Translate product and service specifications into process
specifications
Involve Inter-functional Collaboration
 Main focus:
 Customer satisfaction
 Understand what the customer wants
 Secondary focus:
 Function of product/service
 Cost/profit
 Quality
 Appearance
 Ease of production/assembly
 Ease of maintenance/service
 Ideas can come from anywhere in the supply
chain:
 Customers
 Suppliers
 Distributors
 Employees
 Research
 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 and Development (R&D)
 Organized efforts to increase scientific
knowledge or product innovation
 The costs of R&D can be high. Some
companies spend more than $1 million a day
on R&D.
 IBM about $5 billion a year,

 Hewlett-Packard about $4 billion a year,

 Toshiba about $3 billion a year.

 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
 Legal Considerations
 Product liability
 The responsibility a manufacturer has for any injuries or
damages caused by as faulty product
 Some of the associated costs
 Legal and insurance costs
 Settlement costs
 Costly product recalls
 Reputation effects

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 Designers are often under pressure to
 Speed up the design process
 Cut costs
 These pressures force trade-off decisions
 What if a product has bugs?
 Release the product and risk damage to your reputation
 Work out the bugs and forego revenue

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 Sustainability
 Using resources in ways that do not harm ecological systems that
support human existence
 Key aspects of designing for sustainability
 Cradle-to-grave assessment (Life-Cycle assessment)
 End-of-life programs
 The 3-Rs
 Reduction of costs and materials used
 Re-using parts of returned products
 Recycling

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 Cradle-to-Grave Assessment also known as life
Life-Cycle Analysis LCA) is 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
 The goal of cradle-to-grave assessment is to
choose products and services that have the least
environmental impact while still taking into
account economic consideration.
 LCA procedures are part of the ISO 14000 4-14
environmental management procedures
 EOL programs deal with products (business and
consumer) that have reached the end of their useful
lives
 The goal of such programs is to reduce the dumping or
incineration of products (e.g., electronics) which may
pose hazards to the environment

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 Product/service life cycles
 How much standardization
 Mass customization
 Product/service reliability
 Robust design

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 Saturation

Maturity

Decline
Demand

Growth

Introduction

Time
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 Extent to which there is an absence of variety in a
product, service or process

Advantages
1. Fewer parts to deal with in inventory and in manufacturing
2. Reduced training (employees) costs and time
3. More routine purchasing, handling, and inspection procedures
4. Orders fillable from inventory
5. Opportunities for long production runs and automation

Disadvantages
1. High cost of design changes increases resistance to improvements
2. Decreased variety results in less consumer appeal

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Mass customization:
 A strategy of producing standardized goods or services, but
incorporating some degree of customization
 Delayed differentiation
 Modular design

Delayed differentiation is a postponement tactic

 Producing but not quite completing a product or service until
customer preferences or specifications are known

Modular design is a form of standardization in which

component parts are subdivided into modules that are easily
replaced or interchanged. It allows:
 easier diagnosis and remedy of failures
 easier repair and replacement
 simplification of manufacturing and assembly
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 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 item’s reliability
is specified

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 Robust Design

Robust Design:
Design that results in products or services that can
function over a broad range of conditions

 The more robust a product or service, the less likely

it will fail due to a change in the environment in
which it is used or in which it is performed. Hence,
the more designers can build robustness into the
product or service, the better it should hold up,
resulting in a higher level of customer satisfaction.

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 Quality Function Deployment (QFD)
 An approach that integrates the “voice of the customer” into
both product and service development
 The purpose is to ensure that customer requirements are
factored into every aspect of the process
 Listening to and understanding the customer is the central
feature of QFD

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1. First portion to be completed and the most
important one. Interrelationships between design

2. It documents a structured list of customer requirements

requirements
3. These requirements may be classified into 1. Engineering solution for each
different titles. requirement
2. Identifies measurable target for
each product’s characteristics
(How)

(What)

1. Existing competition. What solutions

exist Now?
Priority is the importance of each
2. Comparison of customer
requirement as viewed by the
requirements against available
customer from 1 to 9.
competition to explore possibilities 23
for improvement.
24
  Many techniques for generation of engg
specs
 Currently most popular: Quality Function
Deployment (QFD)
 QFD organized to obtain necessary info
about
 Specs or goals of product
 How competition meets goals
 Important customer viewpoints
 Quantifiable targets
 Method developed in Japan in mid-1970s;
introduced in USA in late 1980s
 60% cost reduction and one-3rd time
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reduction achieved by Toyota through QFD
 QFD Diagram (also
known as House of
Quality)
 Numbers in blocks; steps to be
followed
 Step-1; Who are customers?
 Step-2; What customers want product to
do?
 Step-3; What is important to whom? Who
vs What
 Step-4; description of existing competition;
what solutions exist Now? Comparison of
customer requirements against available
competition to explore possibilities for
improvement; Now vs What
 Step-5; How to measure product for
customer satisfaction; difficult task; engg
specs
 Step-6; comparison of specs to customer
requirements; What vs How
 Step-y; Target information; quantification;
How much?
 Step-8; Interrelationships between engg
specs; How vs How

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  Most design problems; more than one customer
 Many types of customers
 Consumers; end users of product; most important customers
 Some products are not customer products; space shuttle, oil drilling
rig, etc
 Design company’s management, manufacturing, sales, service
personnel also customers
 Standards organizations also customers; set product requirements

 BikeE suspension system

 Main customers; bike riders; two types
 Street riders; majority; BikeE initially designed as road or commuting bike
 Off-road riders; minority; for rough roads, trails
 Additional customers; bike shops, sales people and mechanics (often
same)
 Within company; manufacturing, assembly, shipping personnel

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 Consumers’ requirements
 Work as it should; lasts long; easy to maintain; looks attractive; uses latest
technology; possesses many features
 Production customers’ requirements
 Easy to produce (manufacturing + assembly)
 Makes use of available resources (skills, materials, equipment)
 Uses standard parts and methods
 Minimum scrap and rejections
 Marketing/sales customers’ requirements
 Meets consumer requirements
 Easy to package, store, and transport
 Attractive
 Suitable for display

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 Evaluation of importance of each customer requirement
 Generation of weighting factor for each requirement
 Requirement important to whom?
 For different types of customers?
 How to develop measure of importance for each?
 Ask customers to attach relative weights to each requirement
 Scale of 1 to 10 or any other scale
 Total-100 scheme

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  Customers’ perception of competition’s performance
against each requirement
 Also known as competition benchmarking
 Scales of 1 to 5: Product meets requirement 1. Not at all, 2.
Slightly, 3. Somewhat, 4. Mostly, 5. Completely
 Three models considered for competition here:
 BikeE CT
 Traditional mountain bike
 Recumbent system
 Observations about important requirements
 BikeE CT does not give smooth ride on streets
 BikeE CT very poor on shock elimination due to bumps, but very
good on adjusting for weights and heights

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 Restatement of design problem in terms of measurable parameters
(target values); parameters developed in this step; targets in next
 Directly measurable customers’ requirement should not be included
here
 Direction of improvement: Maximize ; minimize; target

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 Fill in the center portion of QFD
 Each cell relating one engg parameter to one customer
requirement
 One requirement satisfied by several parameters; one parameter
relating to several requirements
 Symbols
◎ for strong - Weight = 9
Ο for medium - Weight = 3
 for weak Weight = 1
Blank for no relationship
 Compute the absolute importance and relative
importance of each engineering specification

32
  Set target values to evaluate product’s ability to satisfy
customers’ requirements.
 Rate the difficulty of accomplishing each target value, 0 =
easy to accomplish to 10 = extremely difficult to achieve.

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 Engg specs may be dependent on each other; roof of house of quality
 In the roof of house of quality, diagonal lines connecting engg specs; two
specs interdependent: symbol shown at intersection
 ++ : strong positive correlation
 + : positive correlation
 - : negative correlation
 ▼ : strong negative correlation

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 The Kano Model is an insightful representation of 3
main categories of needs any product or service must
address in order to survive in a competitive market.
 Gives a thorough understanding of voice of the
customer (VOC).
 Classifies customer requirements into categories:
 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
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 WAOW!
Kano Model Total Satisfaction

Excitement Quality
(Attractive)
Performance Quality
Time (More is better)
(reverse attribute)

Didn’t do it
at all Did it very well

Low High
functionally functionally
and appeal and appeal

Basic Quality
(Must be offered)

Total Dissatisfaction
 Feasibility Product Process
Analysis specifications specifications

Prototype
Market test Design review
development

Product Follow-up
introduction evaluation
 Concurrent Engineering
 Computer-Aided Design (CAD)
 Production Requirements
 Manufacturability
 Design for Manufacturing (DFM)
 Design for Assembly (DFA)
 Design for Disassembly (DFD)

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 Product design
Design team Manufacturing

Departments would carry out their tasks

before throwing the project over the wall to
Feedback the next department.
Instructor Slides 41
 Manufacturing Product engineer Logistic
engineer

Marketing Purchase

Concurrent Product
Development
Production Other PLC experts

Services engineer Supplier Client

Dr. Ahmed Al-Ashaab, Lean Product and Process Development Workshop, 2017, Cranfield University, UK
 • Activity modelling • Product data technologies
• Team work • Product modelling
• Approaches (QFD, DFMA, FMEA, SPC) • Data exchange
• PDM/PLM
• Manufacture model

ORGANISATION INFORMATION

TECHNOLOGY HUMAN RESOURCES

• CAD/CAM/CAE • Motivation
• CAPP • Responsibility
• Information management • Training
• Video conference • Empowerment

Dr. Ahmed Al-Ashaab, Lean Product and Process Development Workshop, 2017, Cranfield University, UK
 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
 Manufacturability is the ease of fabrication
and/or assembly which is important for:
 Cost
 Productivity
 Quality
 DFM is the approach of modifying the
design/geometry of an individual component in
a manner that maintain its functionalities and
ensuring the manufacturability at lower cost
(cost effective).

Dr. Ahmed Al-Ashaab, Lean Product and Process Development Workshop, 2017, Cranfield University, UK
  Design for manufacturing principles can be
applied for any manufacturing technique.
 For example:
 Machining (drilling, milling, turning, etc…)
 Welding
 Casting
 Injection moulding
 …

Which pocket is easier to mill (cut) out?

Dr. Ahmed Al-Ashaab, Lean Product and Process Development Workshop, 2017, Cranfield University, UK
 DFA is a process for improving product design
for easy and low-cost assembly, by minimising
the number of parts in a product and selecting
the appropriate manufacturing processes.

48

Dr. Ahmed Al-Ashaab, Lean Product and Process Development Workshop, 2017, Cranfield University, UK
Need Grasping Tools
(tweezers, magnets, snap rings)

1. Two hands

3. Due to obscured view/access

2. Due to part size/thickness
Heavy

4. Fragile 5. Large 6. Computer chip 7. Expansion board

Dr. Ahmed Al-Ashaab, Lean Product and Process Development Workshop, 2017, Cranfield University, UK
 Design for Assembly (DFA)

FROM TO

19 7
Dr. Ahmed Al-Ashaab, Lean Product and Process Development Workshop, 2017, Cranfield University, UK
 Design for Manufacturing and Assembly (DFMA)

Dr. Ahmed Al-Ashaab, Lean Product and Process Development Workshop, 2017, Cranfield University, UK
Video-Design for Manufacturing and Assembly
(DFMA)

https://www.youtube.com/watch?v=6b29TW05o0o
 There are many similarities between product and
service design.
 One major difference is:

Product Service
Production and delivery Services are usually
are usually separated created and delivered
in time simultaneously.

 Many services are not pure services, but part of a

product bundle (the combination of goods and
services provided to a customer.)
https://www.youtube.com/watch?v=-0BnIUKiLrw
 Service blueprinting
 A method used in service design to describe and
analyze a proposed service
 A useful tool for conceptualizing a service
delivery system

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

Identify Identify the Map the Map Link Add

the customer process contact customer evidence
process to or from the employee and contact of service
be blue- customer customer’s actions, person at each
printed. segment. point of onstage activities to customer
view. and back- needed action
stage. support step.
functions.
https://www.youtube.com/watch?v=-glgJ9U_Fsk
 Bill
Desk
Hotel Cart for Desk Elevators Cart for Room Menu Delivery Food Lobby
PHYSICAL Exterior Bags RegistrationHallways Bags Amenities Tray Hotel
EVIDENCE Parking Papers Room Bath Food Exterior
Lobby Appearance Parking
Key

Arrive Give Bags Call Check out

Go to Receive Sleep Receive
CUSTOMER at to Check in
Bags Shower
Room Eat and
Room Food
Hotel Bellperson Service Leave
CONTACT PERSON

Greet and
(On-Stage) Process Deliver Deliver Process
Take
Registration Bags Food Check Out
Bags

Take
(Back-Stage) Take Bags Food
to Room Order

Registration Prepare Registration

SUPPORT System Food System
PROCESS
THANK YOU