PRODUCT AND SERVICE DESIGN 3.

Ideas for new or improved designs - Marketing (focus groups, surveys, and analyses
of buying patterns).
Main objective of the business : Satisfy the customer while making reasonable profit 4. Competitors
Note: Product and service design – or redesign – should be closely tied to an organization’s - Reverse Engineering is the dismantling and inspecting of a competitor’s product to
strategy discover product improvements.
- Bench marking – business visits the competitors to check different services not
DESIGN FOR MANUFACTURING (DFM) available to them in order to adapt it to their business.
- Para hindi mapag-iwanan
- The designers’ consideration of the organization’s manufacturing capabilities when
5. Capabilities - Design must clearly understand the of production (equipment, skills,
designing a product
materials, schedules, technologies)
DESIGN FOR OPERATIONS - Management must consider the potential for expanding or changing capabilities.
6. Forecast – predicting the future
- The more general term than design for manufacturing encompasses services as well
- Prediction means not 100% will happen
as manufacturing
- Concerns both Product and service design MANUFACTURABILITY
 Failure to take this into account can:
- Manufacturability is the ease of fabrication and/or assembly which is important for:
 Reduce productivity
cost, productivity, quality
 Reduce quality
- To have a zero defect on the manufacturability process
 Increase costs
 Cost – zero defects, low/less cost
THE DESIGN PROCESS  Productivity – zer0/no defects, high productivity
 Quality – zero/ no defects. High quality
1. Motivation – what are the sources of motivation
 For new business, to achieve the goals of organization they have to think and develop HUMOR IN PRODUCT DESIGN
a Product and Service Design
 For existing business, improve or change the design of the Product and Service ( insert ss)
Design because of:
 Government regulations
 the appearance of new technologies that have product and processes
applications,
REGULATIONS & LEGAL CONSIDERATIONS
 competitive pressures
 customer needs. Product Liability - A manufacturer is liable for any injuries or damages caused by a faulty
2. Customer – the driving force for product and service design product.
- Reason why products and services are offered
 - Customer should check expiration dates, warnings etc. 2. High cost of design changes increases resistance to improvements.
3. Decreased variety results in less consumer appeal.
Uniform Commercial Code - Products carry an implication of merchantability and fitness.
PRODUCT DESIGN
- ICC STICKER
 Product Life Cycles
RESEARCH & DEVELOPMENT (R&D) 1. Incubation
Organized efforts to increase scientific knowledge or product innovation & may involve: - Introduction stage
- Product is still new to the market
1. Basic Research advances knowledge about a subject without near-term expectations - Expensive since you have to market and advertise the business and product
of commercial applications. Ex. Research Projects 2. Growth
2. Applied Research achieves commercial applications. (have a plan to develop and - Improvement stage of the product
apply the research) - Experience flaws and defects
3. Development Research converts results of applied research into commercial 3. Maturity
applications.
- Not accepting errors and flaws
STANDARDIZATION - Best time of the business
4. Saturation
Standardization - Extent to which there is an absence of variety in a product, service or - Customers are something
process 5. Decline
- Customers are not anymore buying the product
 Standardized products are immediately available to customers
 Advantages to standardization ROBUST DESIGN
1. Fewer parts to deal with in inventory & manufacturing
2. Design costs are generally lower - Design that results in products or services that can function over a broad range of
3. Reduced training costs and time conditions
4. More routine purchasing, handling, and inspection procedures
TAGUCHI APPROACH ROBUST DESIGN
5. Quality is more consistent
6. Orders fillable from inventory 1. Design a robust product - Insensitive to environmental factors either in manufacturing
7. Opportunities for long production runs and automation or in use.
8. Need for fewer parts justifies increased expenditures on perfecting designs and 2. Central feature is Parameter Design - involves determining the specification settings
for both the product and the process that will result in robust design in terms of
improving quality control procedures.
manufacturing variations, product deterioration, and conditions during use.
 Disadvantages of Standardization 3. Determines - factors that are controllable and those not controllable their optimal
1. Designs may be frozen with too many imperfections remaining. levels relative to major product advances
CONCURRENT ENGINEERING - Service
Something that is done to or for a customer
- is the bringing together of engineering design and manufacturing personnel early in
- Service delivery system
the design phase
The facilities, processes, and skills needed to provide a service
COMPUTER-AIDED DESIGN - Product bundle
The combination of goods and services provided to a customer
- Computer-Aided Design (CAD) is product design using computer graphics. - Service package
- Advantages The physical resources needed to perform the service
- 1. increases productivity of designers, 3 to 10 times
- 2. creates a database for manufacturing information on product specifications DIFFERENCES BETWEEN PRODUCT AND SERVICE DESIGN
- 3. provides possibility of engineering and cost analysis on proposed designs 1. Tangible – intangible
2. Services created and delivered at the same time
MODULAR DESIGN
3. Services cannot be inventoried
- Modular design is a form of standardization in which component parts are subdivided 4. Services highly visible to customers
into modules that are easily replaced or interchanged. 5. Location important to service
It allows: 6. Range of service systems
- easier diagnosis and remedy of failures 7. Demand variability
- easier repair and replacement
DESIGN GUIDELINES
- simplification of manufacturing and assembly
1. Have a single, unifying theme, such as convenience or speed.
SERVICE DESIGN
2. Make sure the system has the capability to handle any expected variability in service
- Service is an act requirements.
- Service delivery system 3. Include design features and checks to ensure that service will be reliable and will
provide consistent high quality.
 Facilities
4. Design the system to be user friendly.
 Processes
 Skills SERVICE BLUEPRINTING
- Many services are bundled with products
- Service design involves - A method used in service design to describe and analyze a proposed service
- A useful tool for conceptualizing a service delivery system
 The physical resources needed
 The goods that are purchased or consumed by the customer MAJOR STEPS IN SERVICE BLUEPRINTING
 Explicit services
 Implicit services
  Establish boundaries for the process and decide on the level of detail that will be 2. Plan the use of the System – refers to short range of planning. This involves planning
needed. inventory, planning workforce level, purchasing and production, budgeting and
1. Identify the steps involved and describe them. scheduling
2. Prepare a flowchart
3. Identify potential failure points.
4. Establish a timeframe for service execution, and an estimate of variability in
processing time requirements.
5. Analyze profitability. USES OF FORCEAST

QUALITY FUNCTION DEPLOYMENT Accounting Cost profit estimates

Finance Cash flow and funding
- An approach that integrates the “voice of the customer” into the product and service Human Resource Hiring recruiting training
development process. Marketing Pricing, promotion, strategy
MIS IT IS systems, services
Operations Schedules, MRP, workloads
Product/Service design New products and services
Course Code: CBAC101

Course Title: Operations Management and TQM FEATURES COMMON TO ALL FORECASTS
Professor: KRISTABELLE JULIANNE P. JINGCO, DBA 1. Assume a casual system – future resembles the past
Forecast 2. Forecasts rarely perfect because o randomness
3. Forecasts more accurate for groups vs. individuals
OM is mostly proactive not reactive - Forecasting errors among items in a group usually have a cancelling effect
- Extremes in a group cancel each other
It involves structured planning activities
4. Forecasts accuracy decreases as time horizon for forecasts increases
Planning requires data pertaining to the feature
ELEMENTS OF GOOD FORECAST
Forecast: A statement about the future which not necessarily numerical
1. The b
USES OF FORECASTS

1. Plan the system – involves long range of planning about the types of products and
STEPS IN FORECASTING
services to offer, what facilities and equipment to, have, where to locate etc.
1. Determine the purpose of the forecast
- What is its purpose and when will it be needed? This will provide an indication of the  Executive opinions (long-range planning)
level of detail required in the forecasts, the amount of resources (personnel, computer - There are factors hard to quantify (effects of election)
time, dollars) that can be justified and the level of accuracy necessary  Sales force composite
2. Establish a time horizon - Retailer forecasts for the manufacturer
- The forecast must indicate a time limit, keeping in mind that accuracy decreases ad  Consumer surveys
the time horizon increases - Asking preferences
3. Select a forecasting techniques  Outside opinion
4. Gather and analyze relevant data - Financial and consulting gurus and companies
- Before a forecast can be prepared, data must be gathered and analysed. Identify any
 Opinions of managers and staff
assumptions that are made in conjunction with preparing and using the forecast
- Delphi method – a series of questionnaires developed sequentially
5. Prepare the forecast
- Managers and staff complete a series of questionnaires, each developed from the
- Use an appropriate technique
previous one to achieve a consensus forecast
6. Monitor the forecast
- A forecast has to be monitored to determine whether it is performing in a satisfactory Associative forecasts – techniques that uses explanatory variables to predict future demand
manner. If it is not, re-examine the method, assumption, validity of data and so on;
modify as needed; a prepare a revised forecast  Based on identification of related variables that can be uses to predict values of the
variable of interest
APPROACHES TO FORECASTING
Forecasts based on time series (historical) data – a time ordered sequence of obeservations
1. Qualitative methods taken at regular intervals over time
- Consist mainly of subjective inputs which often defy precise numerical description
2. Quantitative methods  Find an association between the predictor and the predicted
- Involves either the extension of historical data or the developmental of associative  Predictor variables – used to predict values of variable interest, sometimes
models that attempt to utilize causal (explanatory) variables to make a forecast called independent variables
 Predicted variable – dependent variable
Judgemental – subjective analysis of subjective inputs  Regression – technique for fitting a line to a set of points
 Linear regression – most widely used form of regression; objective is to obtain
Associative models – analyses historical data to reveal relationships between (easily or in
an equation of a straight line that minimizes the sum of squared vertical
advance) observable quantities and forecasts quantities. Uses this relationship to make
deviations of data points from the line
predictions
Behavior of Series
Time series – objective analysis historical data assuming the future will be like the past
1. Trend
Forecast based on judgement and opinion – forecasts that use subjective inputs such as
– a long-term upward or downward movement in data. Population shifts, changing
opinion from consumer, surveys, sales staff, managers, executive and experts
incomes, and cultural changes often account for such movements;
 - long term investment in data The forecast horizon
2. Seasonality
Forecasting frequency
–refers to short-term, fairly regular variations generally related to factors such as the
calendar or time of day. Restaurants, supermarkets and theaters experience weekly - Forecasting is not free
and even daily seasonal variations; - Consider cost and accuracy – weigh cost –accuracy trade-offs carefully
- short term regular variations in data
3. Cycles Forecast detail part/product level
- are wavelike variations of more than one years duration. These are often related to a
Availability of
variety of economic, political and even agricultural conditions
- Wavelike variations of long term - Historical data
4. Irregular variations - Computers
- are due to unusual circumstances such as severe weather conditions, strikes, or a - Able users/decision makers
major change in a product or service. They do not reflect typical behaviour, and
inclusion in the series can distort the overall picture. Whenever possible, these should
be identified and removes from the data
- caused by unusual circumstances
5. Random variations
- are residual variations that remain after all other behaviors have been accounted for
- Caused by chance

 HISTORICAL DATA CONTAIN RANDOM VARIATIONS OR NOISE

 RANDOM VARIATIONS ARE CASUED RELATIVELY UNIMPORTANT
FACTORS
 THE OBJECTIVE IS TO REMOVE ALL RANDOMNESS AND HAVE REAL
VARIATIONS
 MINOR VARIATIONS ARE RANDOM AND LARGE ONES ARE REAL

CHOOSING A FORECASTING TECHNIQUE

- Two most important factors are cost and accuracy

- Combinations of two is deemed best by the management
- No single techniques works best in every situation