Chapter 4 Cetera eras Strategic Product and Service Design ‘The essence of an organization offers Every aspect ofthe organization is structured around them Product and service design — or redesign — should be closely tied to an organization’ strategy the goods and services it Lous Chapter 4: Learning Objectives O41 Selanne tie and sic L042 One wat rosie ne sn sn soveeoegn " OAT San pose ag cen tsa {O48 Stan noone he sR Lota srt senna optus pict ssn ad despa What Doos Product & Service Design Do? Actes and responsibil of protuct and servce design include: 1 Translate customer wants and needs ino product and service requrements| Refine esting products and senices Dovelopnew products and services Formulate quality goals Formulate cost argete CConsinictand test prototypes Document specications “Translate productand service spectestons into process speciation Involve inter functional collaboration toaKey Questions Key Questions (cont) 1.1s there a demand for 3. What level of quality is appropriate? Market size Customer expectations Demand profile Competitor quality 2. Can we do it? Fitwith current offering ‘Manufacturability - the capability of an organization to 4, Does it make sense from an economic standpoint? produce an item at an acceptable profit Labilty issues, ethical considerations, sustainably iss Serviceability- the capabilty of an organization to pr ‘costs and profits servige at an acceptable cost or profit toa toa Idea Generation Reasons to Design or Re-Design “The driving forces for product and service design or redesign 4. Supply-chain based fare market opportunites or threats: 2. Compatir based eee 3, Research based + Social and demographic + Political, lability, or legal + Competitive + Cost or availabilty + Technological Lose rySupply-Chain Based ‘Ideas can come from anywhere in the supply chai Customers ‘Suppliers Distributors Employees Maintenance and repair personnel Competitor Based By studying how a competitor operates and its products and services, many useful ideas can be generated Reverse engineering Dismanting and inspecting a competitor's product to siscaver product improvements Loss Loss Research Based Legal Considerations Research and development (R&D) Legal considerations Organized efforts to increase scientitic knowledge or product innovation Basic research + Has the objective of advancing he state of knowledge about subect ithout any nea-erm expectaton of commercial applications Applied research + Has the objective of achieving commercial applications Development *+ Converse results of applied esearch nto useful co applications tos Produetiabity + The esponabily a manueturerhs fran injec damages case bya tty pect + setlementcots + cestyprosuctreas UnitormCommercial Code + Undine Cc, procs amy an mpleaton cf merchant LossEthical Considerations Other considerations Designers are often under pressure to Human factors ‘Speed up the design process Safety and liability Cut costs Cultural factors These pressures force trade-off decisions. Colors, preferred food, product labels Whatif a product has bugs? Global design + Release the product and risksamage to your reputation Design teams can be in diferent counties + Werk outthe bugs and forego revenue Loss Loss Sustainability Cradle-to-Grave Assessment Sustainability Cradle-to-Grave Assessment Using resources in ways that do not harm ecological systems ‘Also known as life cycle analysis (LCA) that support human exéstence Key aspects of designing for sustainability Cradle-to-grave assessment (life cycle analysis) End-ofie programs ‘The assessment ofthe environmental impact of a product or service throughout its useful fe + Focusesonsuch actors as The Three Re + arena * etn can aint sees 1 Rouen pret rena raise 1 eee + St wast generaton + LoAprocedurs are part ofthe 1S0 14000 environmen management procedures Loar LoarThe Three Rs Designers often reflect on three particular aspects of potential cost savings and reducing environmental impact Reduce: Costs and Materials Valueanalysis| Examination ofthe function of parts and mater in an efoto reduce ‘he cost andor improve the perfomance ofa product Reduce ‘Common question used in valve analysis Rome + later nce; oes ive vate could be minted? Recycle v + Cau anette, pat of series Be seinen? + Cantwocr mare parse cmbines? + Canspectcatons be as tingerto ave ine many? + ba suplprouersnave sogestonsormprovements? + can pacagieg be reaver madeless oa? Los Loss Rouse: Remanufacturing Recycle Remanufacturing Recycling Refurbishing used products by replacing worn-out or defective components + Canbe perormed by the oninal manutscturer or another cony Reasons to remanufactur: + Remanufactured products canbe soir about 50% of thee anew product + The process requires most unstiledand semishiled wor + Inte global marke, European laumakers are increasing requting manufacturers take back used products, Design for disassembly (DFD) + Designinga producto that used products canbe Loss Recovering materia fr future use + Aplesto mautatuedpas + Also apples tomate useing prosucton ny rcyole? + caeninos + Enironmerta regulars Companies doing business in he EU must show hata spect roportonof ther product are eoycable Design for recycling (FR) + recut sgn hatte no arcounthe aly to dsase Pout rener he reseble pane Losoduct or Service Life Stages Le we Los ‘Standardization ‘Standardization Extent to which there is an absence of varlety ina product, service, or process + Produtsare made in farge quanti of denteal tems + Every custome or item processedreelves essentaly the sar tos ‘Standardization - Advantages and Disadvantages Advantages Fewer parts to deal with Roducedtraring costs and tine More routine purchasing, handing, and inspection (Ors lable rom inventery ppocuntistorlong production runs and automaton Disadvantages + Designs my be fazen oo early High costo design changes + Decreased product varity Designing for Mass Customization Mass customization A strategy of producing basicaly standardized goods or services, but incorporating some degree of customization in the final product or service Facilitating techniques + Delayed ferentiation + Moar desionDelayed Differentiation Delayed differentiation ‘The process of producing a product or service but not quite completing production until customer preferences are known Itis a postponement tactic + Produce apiece of utr, but do not sani the customer shooses he stan Modular Design ‘Atm sanatzatonn whch component pars ar groupesino modes altc tei repnna or nrehanges Desvanaper Loss Loss Rollabitity Potential ways to improve reliability Rel Improve component design The ability ofa product, pat, 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 Relabilties are always specified with respect to cera conditions ‘Normal operating conditions + The setofcondions under hich an item's reabity toate Improve production andlor assembly techniques Improve testing Use backups Improve preventive maintenance procedures Improve user education Improve system design toateRobust Design Robust design + Adesign that results in products or services that can function over a broad range of conditions ‘The more robusta productor sence the es key wl fal due {oa changein the envonmentin whic tis used orin whieh i perormed + Pertains to product as well as process design ‘Consider he folowing automobes: + Teta rion in espn mre ba? Loss Quality Funetion Deployment ‘Quality Function Deployment (QFD) {An approach that integrates the “voice ofthe customer into both product and service development + The purposes to ensure that customer requirements are factor Into every aspecto the process + Usteninate and understanding the customers the cena far. House of Quality toate Loss Degree of Newnes Productor service design changes 1 Moston ofan existing produto service 2. Expansion ofan existing productine o sence ofring 3. Clone of a compotirs productor sence 4. New producto service ‘The degre of change alec the newness ofthe prosuctor serve the market and othe owganczation Ricks andbenefts? FIGURE 4.4 An example of the hhouse of qualityThe House of Quality Sequence Kano Model Basic quality Refers to customer requirements that have only limited ofact on customer satisfaction if present, but lea to dissatisfaction if ‘been! Performance quality RRefors to customer requirements that goneratesatistacton or Aissatistacton in proporon to thet level of functionality and appeal Excitement quality Rolers oa feature or attribute that was unexpected by customer and causes excitement Phases in Product Design and Development 1 2. 3 4 5 6. 7. 8 Feasibility analysis Product specifications Process specifications Prototype development Design review Market test Product introduction Follow-up evaluationConcurrent Engineering Concurrent engineering Bringing engineering design and manufacturing personnel together early in the design phase * Also may inive manuactring, marking and purchasing petsonnelin loosely negated cross unctonalteas + Vows of suppliers and customers may also be sought ‘The purpose is to achieve product designs that reflect customer wants as well as manufacturing capabilities Loss Computer-Aided Design (CAD) caD Product design using computer graphics Advantages + Increases producti of designers, 3 to 10 times + Creates a database for manufacturing information and product speatcatons + Provides possbiy of engineering and cost analysis on desis CCAD that includes finite element analysis (FEA) can significantly reduce time to market + Enables develope to perform simiations that adn analysis, and commercialzain of new products Loss Production Requirements Designers must take into account production capabilities Equipment Skills Types of materials Schedules Technologies Special abilities toate Manufacturability Manutacturabiity Ease of fabrication andlor assembly thas important implications for + Cost + Produetiy + Quatty Design for manufacturing Design for assembly toate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 Commonalty of parts for repair Fewer inventory items must be handled Loss Service Design Begins with a choice of service strategy, which determines the nature and focus of the service, and the target market Key issues in service design *+ Degree of variatonin service requirements + Degree of customer contact and nvolement Loa Loa Differences between Service and Product Design Products are generally tangible; services are intangible ‘Services are created and delivered at the same time ‘Senices cannet be inventoried ‘Senices are highly visible to consumers ‘Some services have low barriers to entry and ext Lecation is oten important to service design, wth convene asa major factor ‘Seni systems range fom those with litle or no custony Contact to those that havo avery high degree of custor Contact 8, Demand variability aterately creates waiting ines of Phases in Service Design Process 1. Conceptualize dea generation ‘Assessment of customer wants/needs ‘Assessment of demand potential 2. Identity service package components needed 3. Determine performance specifications 4. Translate performance specifications into design specifications 5. Translate design specifications into delivery speci Loa‘The Well-Designed Service System characteristics Consistent withthe organization mission Userrienaly Robust i variably isa factor Eagy to sustain Costetectve Has value that is obvious tothe customer Has effective linkages between back- and fron-o-the-hous operations Has a single, unifying there Has design features and checks that wll ensure serv reliable and of high aly Loa Successful Service Design ‘etme ne serie package deta Forusen the pean fam the unonersperapectve one the mage tte sevice package wa ree DN estes rato peapecie cass Fecognae hat eget rat ih e system may ge ema ue ‘erenserecie nan mart cute ana epson i 5. Mak ae tat managers re invoed andl upertedesin o= Inpentea Demme aay bath tngbis anc iangbes Nato sre aterm an, anew poe ae cons Ete oeaie shana beh prc and prec Esuolun stems more mata ane pow sence 5 Operations Strategy Effective product and service design can help the ‘organization achieve competitive advantage: Packaging products and ancillary services to increase sales Using mutiple-use platforms Implementing tacts that wil achieve the beneis of high vlur while satityng customer neods fr varoty Continually monitoring products and services for small Improvement opportunities Reducing th tim it takes to get a now or redesigned p service tothe market Because learning changes everything.”ity Content: Text Alternatives for Images FIGURE 4.4 An example of the house of quality - As Time Passes - Text Alternative “The graphic is more detailed than the pcr graphic of the house of quality ‘thas he mata boes outined where np and feedback canbe ‘entered. The example alos fr ker-scale ratngsto be gven on Importance of charactrssin tems ofthe cstome’sneeds and ‘company’s capaiies, The Kano Model ~As Time Passes - Text Alternative Exetement quay “Top mage: A fou quadrant coordina plane is shown, wth thesis representing unctonalyand appeal and te ans representing ovels Dofeatstacton Aline atx represents Pertmance Gualty Acune below Performance quality and below the axl represents base quay ‘curve above Perfomance quay and above he rans repesenis,