CHAPTER

PART THREE
FOUR
DESIGN OF
PRODUCT AND SERVICE DESIGN
PRODUCTION SYSTEMS
•Chapter Four
•Product and Service Design
•Chapter Five
•Process Selection and Capacity Planning
•Chapter Six
•Facilities Layout
•Chapter Seven
•Design of Work Systems
•Chapter Eight
•Location Analysis
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©The McGraw-Hill Companies, Inc., 1999
 CHAPTER FOUR
PRODUCT AND SERVICE DESIGN

Chapter 4
Product and
Service Design
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PRODUCT AND SERVICE DESIGN
Reasons for Product or Service Design
• Be competitive
• Increase business growth & profits
• Avoid downsizing with
development of new products
• Improve product quality
• Achieve cost reductions in labor or
materials
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Trends in Product & Service Design

• Increased emphasis on or attention

to:
– Customer satisfaction

– Reducing time to introduce new

product
or service

– Reducing time to produce product

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Trends in Product & Service Design (Cont’d)

• Increased emphasis on or attention

to:
– The organization’s capabilities to
produce or deliver the item
– Environmental concerns
– Designing products & services that are
“user friendly”
– Designing products that use less
material
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Objects of Product & Service Design
Beyond the overall objective to achieve customer
satisfaction while making a reasonable profit is:
Design for Manufacturing(DFM)
The designers’ consideration of the
organization’s manufacturing capabilities when
designing a product.
The more general term design for operations
encompasses services as well as manufacturing

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The Design Process

• Motivation
• Customer
• Marketing
• Competitors
• Forecasts

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Reverse Engineering

Reverse engineering is the

dismantling and inspecting of
a competitor’s product to
discover product
improvements.

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Manufacturability

• Manufacturability is the ease of

fabrication and/or assembly which
is important for:
– Cost
– Productivity
– Quality

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PRODUCT AND SERVICE DESIGN
Regulations & Legal Considerations
• Product Liability - A manufacturer is liable
for any injuries or damages caused by a
faulty product.
• Uniform Commercial Code - Products
carry an implication of merchantability
and fitness.

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Research & Development (R&D)
• Organized efforts to increase scientific
knowledge or product innovation & may
involve:
– Basic Research advances knowledge about a
subject without near-term expectations of
commercial applications.
– Applied Research achieves commercial
applications.
– Development converts results of applied
research into commercial applications.

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PRODUCT AND SERVICE DESIGN
Product Design
• Product Life Cycles
• Robust Design
• Concurrent Engineering
• Computer-Aided Design
• Modular Design

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Advantages of Standardization

• Fewer parts to deal with in inventory &

manufacturing
• Reduced training costs and time
• More routine purchasing, handling, and
inspection procedures

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PRODUCT AND SERVICE DESIGN
Advantages of Standardization (Cont’d)

• Orders fillable from inventory

• Opportunities for long production runs
and automation
• Need for fewer parts justifies increased
expenditures on perfecting designs and
improving quality control procedures.

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Disadvantages of Standardization
• Designs may be frozen with too many
imperfections remaining.
• High cost of design changes increases
resistance to improvements.
• Decreased variety results in less
consumer appeal.

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 CHAPTER FOUR
Figure 4-2 PRODUCT AND SERVICE DESIGN
Life Cycles of Products or Services

Saturation

Maturity
Demand

Decline
Growth

Incubation

Time
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PRODUCT AND SERVICE DESIGN
Product design
• Design for manufacturing (DFM)
• Design for assembly (DFA)
• Design for recycling (DFR)
• Remanufacturing
• Design for disassembly (DFD)
• Robust design

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Taguchi Approach Robust Design
• Design a robust product
– Insensitive to environmental factors either
in manufacturing or in use.
• Central feature is Parameter Design.
• Determines:
– factors that are controllable and those not
controllable
– their optimal levels relative to major
product advances

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Concurrent Engineering

Concurrent engineering
is the bringing together
of engineering design and
manufacturing personnel
early in the design phase.

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PRODUCT AND SERVICE DESIGN
“Over the Wall” Approach

New
Product

Mfg Design
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Computer-Aided Design
• 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

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Modular Design
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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Figure 4-3 PRODUCT AND SERVICE DESIGN
Steel production Goods-service spectrum
Automobile fabrication

House building
Low service content Road construction
High goods content
Dressmaking
Farming

Auto Repair
Appliance repair

Maid Service
Increasing Manual car wash
goods content
Increasing Teaching
service content Lawn mowing
High service content
Low goods content ©The McGraw-Hill Companies, Inc., 1999
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 CHAPTER FOUR
Figure 4-4 PRODUCT AND SERVICE DESIGN
Service Variability & Customer Influence Service Design
High Customized
Clothing
Variability
Moderate Dept. Store
in Service
Requirements Purchase
Low Telephone
Purchase
None Internet
Purchase
None Low Moderate High

Degree of Contact with Customer

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Figure 4-7 PRODUCT AND SERVICE DESIGN
The House of Quality

Correlation
matrix

Design
requirements

Customer
Relationship Competitive
require-
matrix assessment
ments

Specifications
or
target values
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PRODUCT AND SERVICE DESIGN
House of Quality Example Correlation:
X Strong positive
Positive
X X
X X X Negative
Strong negative

Water resistance
*

Accoust. Trans.
Energy needed

Energy needed
Im

to close door
Engineering

to open door
po

resistance
Competitive evaluation

Door seal
rta Characteristics

force on

Window
X = Us
nc

ground
Check
A = Comp. A
et

level
B = Comp. B
Customer oC (5 is best)
Requirements us 1 2 3 4 5
t.
X AB
Easy to close 7
Stays open on a hill X AB
5
Easy to open 3 XAB

A XB
Doesn’t leak in rain 3
No road noise 2 X A B

Importance weighting 10 6 6 9 2 3 Relationships:

level to 7.5 ft/lb

Strong = 9
Reduce energy

Reduce energy
Reduce force

current level
current level

current level
to 7.5 ft/lb.
Medium = 3
Target values

Maintain
Maintain

Maintain
Small = 1
to 9 lb.

5 B
BA BA
B B BXA X
Technical evaluation 4
3
A
X
A X
(5 is best) 2 X
X A
1

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PRODUCT AND SERVICE DESIGN
Improving Reliability
• Component design
• Production/assembly techniques
• Testing
• Redundancy
• Preventive maintenance procedures
• User education
• System design
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