4-# Product and Service Design

CHAPTER
4

Product and
Service Design

Operations Management, Eighth Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
4-# Product and Service Design

What does Product & Service Design Do?

4-# Product and Service Design
4-# Product and Service Design

Product and Service Design

·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
4-# Product and Service Design

Objectives of Product and Service Design

·Main focus
·Customer satisfaction
·Secondary focus
·Function of product/service
·Cost/profit
·Quality
·Appearance
·Ease of production/assembly
·Ease of maintenance/service
4-# Product and Service Design

Other Issues in Product and Service Design

·Product/service life cycles

·How much standardization

·Product/service reliability
·Range of operating conditions
4-# Product and Service Design

Life Cycles of Products or Services

Figure 4.1

Saturation

Maturity
Demand

Decline
Growth

Introduction

Time
4-# Product and Service Design

Steps in the Product Design Process

Arrows show that it’s a circular process, Product design are never
finished, but always updated with new ideas
4-# Product and Service Design

Phases in Product Development Process

1.Idea generation
2.Feasibility analysis
3.Product specifications
4.Process specifications
5.Prototype development
6.Design review
7.Market test
8.Product introduction
9.Follow-up evaluation
4-# Product and Service Design

Idea Generation

Supply chain based

Ideas Competitor based

Research based
4-# Product and Service Design

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
4-# Product and Service Design

Product Design

·Product Life Cycles

·Robust Design
·Concurrent Engineering
·Computer-Aided Design
·Modular Design
4-# Product and Service Design

Reliability

·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
4-# Product and Service Design

Robust Design

Robust Design: Design that results in

products or services that can function over
a broad range of conditions
4-# Product and Service Design

Taguchi Approach Robust Design

·Design a robust product

·Insensitive
to environmental factors either in
manufacturing or in use.
·Centralfeature is Parameter Design.
·Determines:
·factors
that are controllable and those not
controllable
·their optimal levels relative to major product
advances
4-# Product and Service Design

Phases in Service Design

1.Conceptualize
2.Identify service package components
3.Determine performance specifications
4.Translate performance specifications into
design specifications
5.Translate design specifications into
delivery specifications
4-# Product and Service Design

Service Blueprinting

·Service blueprinting
·A method used in service design to describe
and analyze a proposed service
·A useful tool for conceptualizing a service
delivery system
4-# Product and Service Design

Major Steps in Service Blueprinting

1.Establish boundaries
2.Identify steps involved
3.Prepare a flowchart
4.Identify potential failure points
5.Establish a time frame
6.Analyze profitability
4-# Product and Service Design

Quality Function Deployment

·Quality Function Deployment

·Voiceof the customer
·House of quality

QFD: An approach that integrates the “voice of the

customer” into the product and service development
process.
 4-# Product and Service Design

CHAPTER
4s

Reliability

Operations Management, Eighth Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
4-# Product and Service Design

Reliability

·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
4-# Product and Service Design

Reliability is a Probability

·Probability that the product or system

will:
· Function when activated
· Function for a given length of time
·Independent events
·Events
whose occurrence or
nonoccurrence do not influence each
other
·Redundancy
·The
use of backup components to
increase reliability
4-# Product and Service Design

Rule 1

Lamp 1 Lamp 2

.90 .80 .90 x .80 = .72

4-# Product and Service Design

Rule 2

.80 Lamp 2 (backup)

.90 .90 + (1-.90)*.80 = .98

Lamp 1
4-# Product and Service Design

Rule 3

.70
Lamp 3 (backup for Lamp 2)

.80
Lamp 2 (backup for Lamp1)

1 – P(all fail)
.90 1-[(1-.90)*(1-.80)*(1-.70)] = .994
Lamp 1
4-# Product and Service Design

Example S-1 Reliability

Determine the reliability of the system shown

.90 .92

.98 .90 .95

4-# Product and Service Design

Example S-1 Solution

The system can be reduced to a series of three

components

.98 .90+.90(1-.90) .95+.92(1-.95)

.98 x .99 x .996 = .966

4-# Product and Service Design

Failure Rate
Figure 4S.1
Failure Rate

Infant Failures due

Few (random) failures
mortality to wear-out
Time, T
4-# Product and Service Design

Exponential Distribution
Figure 4S.2

Reliability = e -T/MTBF

1- e -T/MTBF

T Time
4-# Product and Service Design

Normal Distribution
Figure 4S.3

Reliability

0 z
4-# Product and Service Design

Availability

·The fraction of time a piece of equipment

is expected to be available for operation

MTBF = mean time between failures

MTR = mean time to repair
4-# Product and Service Design

Improving Reliability

·Component design
·Production/assembly techniques

·Testing
·Redundancy/backups
·Preventive maintenance procedures
·User education

·System design
4-# Product and Service Design
4-# Product and Service Design
4-# Product and Service Design
4-# Product and Service Design