Product & Service Design

Relevance of new product development
• For many industries new product development is now the single most important factor driving a firm’s success or failure by Today’s climate of new product development is characterized 1.Increased domestic and global competition 2.Continuous development of new technologies that make existing products obsolete. 3.Changing customer requirements that truncate product life cycles

4.Rising development costs 5.Increased dependence on external organization For many industries ,product design and development capability aimed at producing a continuous stream of new innovative products is turning out to be a very powerful competitive weapon

Product Design Process
• Outsourcing : 1.Contract Manufacturing 2.Design & Engineering • Core competency 1. should help in providing new benefits to customers 2. Creating new market 3. Can not be easily imitated by competitors

Strategies for New Product Introduction
• Market Pull : “ You should make what you can sell” . The customers needs become the primary basis for new product introduction • Technology- Push : You should sell what you can make “. Accordingly new products must be derived from technology with little regard for the market “. It is marketing's job to create a market • Interfunctional :New products introduction is interfunctional in nature and requires the cooperation among , marketing , operation , engineering, and other functions

The generic Product Development Process- 6 phase approach
      Phase 0 – Planning Phase 1-Concept Development Phase 2- System Level Design Phase 3- Detailed design Phase 4- Testing & Refinement Phase 5- Production & Ramp Up

• Each phase includes Tasks ,Responsibilities for each of the key functions- Marketing , Design , Other functions • Approach most suited for market pull products

Description of a 5 phase- gate NPI Process

• • Identification of a specific Target Market Phase 0 - Idea Validation: Identification ,screening and initial refinement of an idea for a new product Gate 0 : Launch the project Phase 1 Conceptual Design :Exploration of feasibility Gate 1 : Approve project implementation Phase 2: Specification and design - Detailed specifications for the product and production process are worked out Gate 2 : Release the design

• •

Phase 3: Prototype production and testing - An opportunity to learn whether the product under realistic conditions of use is apt to achieve the quality specifications set for it and whether this indeed meets the competitive needs • Gate 3 : Begin volume manufacturing • Phase4 :Manufacturing ramp up -Task here is to gradually achieve the manufacturing capacity necessary to meet the projected sales volume , while successfully meeting the new product targets for unit costs , conformance to performance specifications and other measures of quality including customer satisfaction • Phase 5 : Cost reduction - A common follow up phase

Simultaneous engineering ( Concurrent Engineering )
• Traditional approach : Sequential “ Over the wall approach “ in which manufacturing engineers were asked to develop a process for producing the new product as designed • Parallel Approach : The manufacturing engineers work with product designers with the combined objective of developing better products . In this approach manufacturing engineers get involved early when the product concept is being refined

• This approach involves starting certain engineering tasks related to the manufacturing process at the same time that details of the product design are being worked out . • The result is a more efficient and a more effective process. • Shorter development cycle times • Early Problem identification &resolution of risks

The Product design
• Designing for the customer : The convenience of use and ease and simplicity of operation should be the primary consideration in designing a product. Undue attention to the technical features in recent products is overshadowing the above basic requirements of the customer.

• Robust design : Products should be designed to be robust in the face of changes in environmental conditions • Modular design : Makes it possible to have relatively high variety with limited number of components .The basic idea is to develop a series of basic product components ( modules) which can be assembled in to large number of products • Environmental design • Product life cycle design

Quality Function Deployment-QFD
• A method for linking Customer Requirements with technical specifications • Helps Bringing together designers, and managers from multiple functions (engineering, marketing, operations, human resources and finance ) by using a common language and framework •

House of Quality
Engineering Characteristics




Strong positive



Water resistance Accoust. Trans. Window

Negative Strong negative

Energy needed to close door

Check force on level ground

Energy needed to open door

Door seal resistance

Competitive evaluation
X = Us A = Comp. A B = Comp. B (5 is best) 1 2 3 4 5

Customer Requirements Easy to close Stays open on a hill

7 5 3 3 2




Easy to open Doesn’t leak in rain No road noise Importance weighting




Reduce energy level to 7.5 ft/lb



Reduce energy to 7.5 ft/lb.



Strong = 9

Reduce force to 9 lb.

Maintain current level

Maintain current level

Target values


Maintain current level

Medium = 3 Small = 1


Technical evaluation (5 is best)


4 3 2 1







• Helps translate the requirements as seen by the customer in to technical specifications that can be used by production and design • House Of Quality : A matrix with Customer Requirements on the left side and Technical Specifications on the top of the matrix • Customer Attributes ( WHATS) • Relative Importance : CA’s are rated in terms of relative Importance The relative importance are weights are scaled to a total of 100 points

• Customers Perception(right hand side of the matrix: Customer compares each CA to competition to determine if the current product design is behind , even or ahead of competition. • Engineering Characteristics ( HOW,s)These are listed on top of the matrix and shows how these CA ‘s can be met.

• Each EC is assigned a measureable qty(eg kgs,/ sq cm) • Objectives (targets) for the EC are listed on the bottom of the matrix • Relation ships : The CA’s relation ships with EC’s are shown in the matrix –Strong positive , Medium positive , Medium negative , Strong negative • Each EC is evaluated on at a time to for its effect on CA through engineering experiments

• Roof of the House : The inter EC relation ships ( correlation )are listed in the Triangular matrix. (+ high , medium +, Medium - ,High • Used to determine the influence of one EC on the others.

Value analysis definition
Value Analysis is an organized effort to provide required functions of a product at lowest overall cost consistent with achieving the required quality, performance and market acceptance Value analysis is not a cheapening process. Reliability and performance are not sacrificed for the sake of cutting cost

Value Analysis/Value Engineering
• A convenient way or organizing innovation , aimed at improving the value of product or services. • Value analysis is a philosophy of eliminating any thing which causes cost but does not contribute to value. • It is aimed at meeting the product performance requirements and customer needs at the lowest possible cost.

• Value analysis is also an organized approach for analyzing products and services in which several steps and techniques are routinely used. • Value / Cost : • Cost : is an absolute term expressed in monetary units-which measures the resources used for creating a product or service- Labor + Material + Overhead

• Value is the customers perception of the usefulness of the product or service to its cost. Usefulness includes Quality, reliability, and performance of the product for its intended use • Value is what the customer is looking for meeting his needs at the lowest cost

• Value = Usefulness / Cost Increase value : Increase Usefulness Decrease cost Achieved by eliminating unnecessary or costly functions that do not contribute to value.

Value analysis
• State the objective , and identifying primary (Basic)function and Secondary function
• Objective : The purpose or reason that the product exists • Basic Function If eliminated would render the product useless in terms of its stated objectives • Secondary function : Exists to support a basic function , because of the way the product was designed

• Determining the cost of each basic and secondary function

• Developing creative alternatives to reduce the cost or to improve the value of the product Done by consolidating , revising or eliminating the secondary function which improves the value ratio

Designing products for manufacture & Assembly-DFMA
• DFMA – Design For Manufacturing and Assembly • DFM is the method of design for ease of manufacturing of the collection of parts that will form the product after assembly. • DFA is the method of design of the product for ease of assembly.

Design for Assembly (DFA) • concerned only with reducing product assembly cost
– minimizes number of assembly operations

Design for Manufacturing (DFM) • concerned with reducing overall part production cost
– minimizes complexity of manufacturing operations

• Both DFM and DFA seek to reduce material, overhead, and labor cost. • They both shorten the product development cycle time. • Both DFM and DFA seek to utilize standards to reduce cost

DFA Principles
• • • • • • • • • • Minimize part count Design parts with self-locating features Design parts with self-fastening features Minimize reorientation of parts during assembly Design parts for retrieval, handling, & insertion Emphasize ‘Top-Down’ assemblies Standardize parts…minimum use of fasteners. Encourage modular design Design for a base part to locate other components Design for component symmetry for insertion

DFA guidelines
• • • • • • • Reduce part count & types Ensure parts cannot be installed incorrectly Strive to eliminate adjustments Ensure parts self-align & self-locate Ensure adequate access & unrestricted vision Ensure parts are easily handled from bulk Minimize reorientation (assemble in Z axis) & secondary operations during assembly • Make parts symmetrical or obviously asymmetrical

Key DFMA Principles

Minimize Part Count

• • • • •

Standardize Parts and Materials
Create Modular Assemblies Design for Efficient Joining Minimize Reorientation of parts during Assembly and/or Machining Simplify and Reduce the number of Manufacturing Operations Specify ‘Acceptable’ surface Finishes for functionality

Designing Service Products
• Major Questions to be addressed in the design of a service :
1.How to address the variability ( time & knowledge required) that occurs in a service due to the significant involvement of the customer in the service process 2. What are the implications for operational costs and the customer service experience 3. How do you address the question of fit- Service experience fit , the operational fit , and the financial impact

• Service experience fit : New service should fit into the current service experience of the customer • Operational fit : Operational skills and the capabilities to execute the service • Financial Impact:

Products & Development Performance
• Generating a steady stream of new products is extremely important for success • Measures of Product development success
1. Speed and frequency of bringing new products online -Time to market 2. Productivity of the actual development process 3. Quality of the actual product introduced
Refer Exhibit 4.11 Performance measures of development Projects Page: 127

Performance Measures for Development Projects
Performance Dimension Time to market Productivity Quality Measures Impact on competitiveness

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