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8/18/2019 MOD-1-4-Product-Design (1).PPT
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Module-1: Operations Management for Competitive Advantage
Mod:1-4
Product & Service Design
(Deploying the Voice of the Customer)
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Learning Outcomes
After going through this topic, you should be able to:
• Appreciate the importance of design in business
• Understand the role of concurrent design vis-!-vis traditional
approach"
• Understand the role of design-for-# methodologies• Appreciate the importance of $uality function deployment
• Appreciate the importance of collaborative product commerce
• Appreciate the importance of technology in product design
and product lifecycle management %&'M(
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It all starts with….
A Design
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Yet….Design?!What is it?
Why me? What is my role?
Why in a B-School?
ngineering schools What is
so new a"out Design?
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Philip Kotler and G. Alexander Rath, 1984
Journal of Business Strategy, Vol. 5 Iss: 2 pp. 16-21
Design A #ower$ul "ut %eglecte&
Strategic 'ool
“Design is a potent strategic tool that companies can use to gain a
sustainable competitive advantage. Yet most companies neglect
design as a strategy tool. What they don't realize is that good
design can enhance products, environment, communications, and
corporate identity.”
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It is heartening, therefore, that an increasing percent of business school resources are beingdevoted to innovation: innovation labs, digital
initiatives, and product design anddevelopment requirements. Stanford’sbusiness school has the Hasso PlattnerInstitute of Design…..
@KIIT [2005.2009.!
Center for Building Competene in
!rodut "ifeyle #anagement to foster #ulti-disiplinary interations
)OU*C+: he usiness of usiness )chools: *estoring a .ocus on Competing to /in, by (o"ert
Simons Harvard Business chool, !apitalism and ociety, "ol. # $%&(), *ss. , +rt. %
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0
)A%A* +(A'I,I'Y
Create the enabling environment:• +ncourage Creativity
Ability to combine ideas in ne2 2ays to solve problems and e#ploitopportunities
• )upport 3nnovation )uccessful application of ne2 ideas in the form of ne2 products, services 4
processes
• hrough 5esign
&urposive application of creativity throughout the process of innovation
)OU*C+: ruce, M6 and 76 essant, 8/hat is design9, 5esign in usiness: )trategic3nnovation through 5esign, &rentice-;all
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>
&A*3A' ?3+/) O. ;+ 5+)3@
&*OC+))
3f design is seen asB66
• 3nventive ideas Then it may fail to meet the users needs and may not
be accepted
• &rovince of specialists*45 )cientists
Then it may lack involvement of others
5esign must be seen as a process
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&roduct 5esign
)pecifies materials)pecifies materials
5etermines dimensions 45etermines dimensions 4tolerancestolerances
5efines appearance5efines appearance
)ets performance)ets performancestandardsstandards
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)ervice 5esign)pecifies 2hat the customer is to)pecifies 2hat the customer is to
e#periencee#perience
&hysical items&hysical items
enefits to the human sensesenefits to the human senses
&sychological&sychological benefits benefits
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An +ffective 5esign &rocess
Matches productservice characteristicsMatches productservice characteristics
2ith customer needs2ith customer needsMeets customer re$uirements in simplest,Meets customer re$uirements in simplest,
most cost-effective manner most cost-effective manner
*educes time to marDet*educes time to marDet
MinimiEes revisionsMinimiEes revisions
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• /hat the customer
2anted
ource !hapter on uperior products, services and processes by B. Wa-hlu
he traditional methods/
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• /hat marDetingunderstood
ource !hapter on uperior products, services and processes by B. Wa-hlu
he traditional methods/
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• /hat the designersdeveloped
ource !hapter on uperior products, services and processes by B. Wa-hlu
he traditional methods/
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• /hat manufacturingmade
ource !hapter on uperior products, services and processes by B. Wa-hlu
he traditional methods/
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• /hat the customer 2as left 2ith
ource !hapter on uperior products, services and processes by B. Wa-hlu
he traditional methods/
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+ross $unctionalteams relying on
D matrices
/re0ent costly
errors such asthese
ource !hapter on uperior products, services and processes by B. Wa-hlu
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3mproving the 5esign &rocess is
importantB
T di i l h d
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.igure F6G reaDing 5o2n arriers to+ffective 5esign
Traditional methods…
Improved methods…
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Design $or )anu$actura"ility• 'ra&itional A//roach 1We &esign it2 you "uil& it3 or 1O0er the wall3
• +oncurrent ngineering
1Let4s wor5 together simultaneously3
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3mproving the 5esign &rocess
5esign teams5esign teams
Concurrent designConcurrent design
5esign for manufacture 4 assembly5esign for manufacture 4 assembly *evie2ing 5esigns to prevent failures and ensure value*evie2ing 5esigns to prevent failures and ensure value
5esign for environment5esign for environment
Measure design $ualityMeasure design $uality UtiliEe $uality function deploymentUtiliEe $uality function deployment
5esign for robustness5esign for robustness
+ngage in collaborative design+ngage in collaborative design
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An +ffective 5esign &rocess
Matches productservice characteristicsMatches productservice characteristics
2ith customer needs2ith customer needsMeets customer re$uirements in simplest,Meets customer re$uirements in simplest,
most cost-effective manner most cost-effective manner
*educes time to marDet*educes time to marDetMinimiEes revisionsMinimiEes revisions
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)tages in the
5esign &rocess 3dea @eneration3dea @eneration H &roduct Concept H &roduct Concept
.easibility )tudy.easibility )tudy H &erformance )pecifications H &erformance )pecifications
&reliminary 5esign&reliminary 5esign H &rototype H &rototype
.inal 5esign.inal 5esign H .inal 5esign )pecifications H .inal 5esign )pecifications
&rocess &lanning&rocess &lanning H Manufacturing )pecifications H Manufacturing )pecifications
• +once/t Design
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• +once/t Design
I&ea generation$0erceptual maps,benchmar-ing 1 reverseengineering)
easi"ility stu&y$2ar-et, economic,technical 1 strategicanalyses)
• #reliminary &esign
orm &esign
unctional &esign
#ro&uction &esign
• inal &esign
#rocess /lan
The Desig
n Process 3dea @eneration
.easibility )tudy
.orm
5esign
.unctional
5esign
&roduction
5esign
&ilot-run 4
.inal ests
e2 &roduct
)ervice 'aunch
Customers)uppliers * 4 5
MarDetingCompetitors
&roduct or )ervice Concept
&erformance )pecifications
*evising and esting
of &rototypes
5esign
)pecifications
Manufacturing or
5elivery
)pecifications
.inal 5esign 4 &rocess plans
.igure F61: *ussell 4 aylor .igure F61: *ussell 4 aylor
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3dea @eneration
)uppliers, distributors, salespersons)uppliers, distributors, salespersons
rade Iournals and other published materialrade Iournals and other published material
/arranty claims, customer/arranty claims, customer
complaints, failurescomplaints, failures Customer surveys, focusCustomer surveys, focus
groups, intervie2sgroups, intervie2s
.ield testing, trial users.ield testing, trial users *esearch and development*esearch and development
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5esign eams
MarDeting, manufacturing,MarDeting, manufacturing,
engineeringengineering
)uppliers, dealers, customers)uppliers, dealers, customers
'a2yers, accountants,'a2yers, accountants,
insurance companiesinsurance companies
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Concurrent 5esign
*mproves 3uality o4 early design decisions *mproves 3uality o4 early design decisions Decentralized 5 suppliers complete detailed Decentralized 5 suppliers complete detailed
designdesign *ncorporates production process *ncorporates production process cheduling and management can becheduling and management can be
comple6 as tas-s are done in parallel comple6 as tas-s are done in parallel
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@eneral &erformance
)pecifications3nstructions to supplier:3nstructions to supplier:
885esign a set of braDes that can stop a
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5esign for
Manufacture and Assembly5esign a product for easy5esign a product for easy
4 economical production4 economical production 3ncorporate production3ncorporate production
design early in the design phasedesign early in the design phase
3mproves $uality and reduces costs3mproves $uality and reduces costs
)hortens time to design and manufacture)hortens time to design and manufacture
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5.M @uidelines
1616 MinimiEe the number of parts, tools,MinimiEe the number of parts, tools,fasteners, and assembliesfasteners, and assemblies
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?alue Analysis
?alue +ngineering"*atio of value cost*atio of value cost
Assessment of value :Assessment of value :16 Can 2e do 2ithout it916 Can 2e do 2ithout it9
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5esign for +nvironment
5esign from recycled material5esign from recycled material
Use materials 2hich can be recycledUse materials 2hich can be recycled
5esign for ease of repair 5esign for ease of repair
MinimiEe pacDagingMinimiEe pacDaging
MinimiEe material 4 energyMinimiEe material 4 energy
used during manufacture, consumptionused during manufacture, consumption4 disposal4 disposal
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.igure F6J 5esign for +nvironment
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)ustainability
• Ability to meet present needs 2ithout compromising thoseof future generations
• @reen product design
Use fe2er materials Use recycled materials or recovered components
5ont assume natural materials are al2ays better
5ont forget energy consumption
+#tend useful life of product
3nvolve entire supply chain Change paradigm of design
B00, ource Adapted from the usiness )ocial *esponsibility /eb site, 2226bsr6org, accessed April 1,
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Metrics for 5esign Nuality
1616 &ercent of revenue from ne2 products or&ercent of revenue from ne2 products orservicesservices
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+ross $unctionalteams relying on
D matrices
/re0ent costly
errors such asthese
ource !hapter on uperior products, services and processes by B. Wa-hlu
Recall...
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Nuality .unction 5eployment
N.5"ranslates the 8voice of the customer intoranslates the 8voice of the customer into
technical design re$uirementstechnical design re$uirements
5isplays re$uirements in matri# diagrams5isplays re$uirements in matri# diagrams
.irst matri# called 8house of $uality.irst matri# called 8house of $uality
)eries of connected houses)eries of connected houses
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;ouse of NualityClicD here"
http://mod-1-4-supplement-hoq.ppt/http://mod-1-4-supplement-hoq.ppt/http://mod-1-4-supplement-hoq.ppt/http://mod-1-4-supplement-hoq.ppt/
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)eries of N.5 ;ouses
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)eries of N.5 ;ouses
C u s t o m e r
r e $ u i r e m e n t s
;ous;ouse ofe of
$ualit$ualit
yy
&roduct
characteristics
A-1
& r o d u c t
c h a r a c t e r i s t i c s
&arts&artsdeploymdeploym
entent
&art characteristics
A-<
& a r t
c h a r a c t e r i s t i c s
&rocess&rocess plannin plannin
gg
&rocess
characteristics
A-F
& r o c e s s
c h a r a c t e r i s t i c s
OperatingOperating
re$uiremere$uirementsnts
Operations
A-G
.igure F61F.igure F61F
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enefits of N.5
&romotes better understanding of customer&romotes better understanding of customerdemandsdemands
&romotes better understanding of design&romotes better understanding of design
interactionsinteractions 3nvolves manufacturing in the3nvolves manufacturing in the
design processdesign process
reaDs do2n barriers bet2eenreaDs do2n barriers bet2eenfunctions and departmentsfunctions and departments
&rovides documentation of&rovides documentation ofthe design processthe design process
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Consistency is 3mportant
Consistent errors are easier to correctConsistent errors are easier to correctthan random errorsthan random errors
&arts 2ithin tolerances&arts 2ithin tolerancesmay yield assembliesmay yield assemblies2hich arent2hich arent
Consumers preferConsumers prefer product characteristics product characteristicsnear their ideal valuesnear their ideal values
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echnology in 5esign
CA5 - Computer Aided 5esignCA5 - Computer Aided 5esign Assists in creating andAssists in creating and
modifying designsmodifying designs
CA+ - Computer AidedCA+ - Computer Aided+ngineering+ngineering ests 4 analyEes designsests 4 analyEes designs
on computer screenon computer screen
CA5CAM - 5esign 4 ManufacturingCA5CAM - 5esign 4 Manufacturing Automatically converts CA5 data into processingAutomatically converts CA5 data into processing
instructions for computer controlled e$uipmentinstructions for computer controlled e$uipment
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enefits of CA5
&roduces better designs faster &roduces better designs faster
uilds database of designs and createsuilds database of designs and creates
documentation to support themdocumentation to support them
)hortens time to marDet)hortens time to marDet *educes time to manufacture*educes time to manufacture
+nlarges design possibilities+nlarges design possibilities
+nhances communication and promotes+nhances communication and promotesinnovation in design teamsinnovation in design teams
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Collaborative &roduct
Commerce
)hare and 2orD on design files in real time)hare and 2orD on design files in real time
from physically separate locations,from physically separate locations,typically over the internettypically over the internet
Accelerates product developmentAccelerates product development
;elps resolve product launch issues;elps resolve product launch issues 3mproves the $uality of design3mproves the $uality of design
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L=
A//en&i6 - I
unctional Design
#ro&uction Design
inal Design 7 #rocess #lans
acD toBacD toB
he 5esign &rocesshe 5esign &rocess
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.unctional 5esign
;o2 the &roduct &erforms"*eliability*eliability
&robability product performs intended&robability product performs intended
function for specified length of timefunction for specified length of time
MaintainabilityMaintainability
+ase andor cost of maintainingrepairing+ase andor cost of maintainingrepairing
product product
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Computing *eliability
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Computing *eliability
=6P= =6P= =6P= # =6P= R =6>1=6P= # =6P= R =6>1
Components in seriesComponents in series
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Computing *eliability
=6P= =6P= =6P= # =6P= R =6>1=6P= # =6P= R =6>1
Components in seriesComponents in series
)ystem reliability is a product of)ystem reliability is a product of
part reliability: part reliability:
* * ss R * R * 11"* "*
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Computing *eliability
=6PL S =6P=1-=6PL" R =6PPL=6PL S =6P=1-=6PL" R =6PPL
Components in parallelComponents in parallel
=6PL
=6P=* *
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ote:
)'B 8 9 : $ailure rate
*eliability can also be e#pressed as the length of time a product or*eliability can also be e#pressed as the length of time a product orservice is in operation before it fails6 Calledservice is in operation before it fails6 Called )ean time "etween
$ailure ;)'B
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)ystem Availability
)ystem Availability, )A R)ystem Availability, )A RM.M.
M. S M* M. S M*
)aintaina"ilityalso called serviceability" refers to the ease andor cost 2ithalso called serviceability" refers to the ease andor cost 2ith
2hich a product or service is maintained or repaired62hich a product or service is maintained or repaired6
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)ystem Availability
)ystem Availability, )A R)ystem Availability, )A RM.M.
M. S M* M. S M*
3f your cycle breaDs L times in
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)ystem Availability
)ystem Availability, )A R)ystem Availability, )A RM.M.
M. S M* M. S M*
&*O?35+* &*O?35+* M. ;*"M. ;*" M* ;*"M* ;*"AA J=J= G6=G6=
FJFJ
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)ystem Availability
)ystem Availability, )A R)ystem Availability, )A RM.M.
M. S M* M. S M*
&*O?35+* &*O?35+* M. ;*"M. ;*" M* ;*"M* ;*"AA J=J= G6=G6=
FJFJ
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)ystem Availability
)ystem Availability, )A R)ystem Availability, )A R
M.M.
M. S M* M. S M*
&*O?35+* &*O?35+* M. ;*"M. ;*" M* ;*"M* ;*"
AA J=J= G6=G6=
FJFJ
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&roduction 5esign
;o2 the product 2ill be made" &art of the preliminary design&art of the preliminary design
phase phase )implification)implification
)tandardiEation)tandardiEation
ModularityModularity
#ro&uction Design ;o2 the product 2ill be made9"
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g p " &oor production designs results into poor $uality of products6
Often production people redesign products on the factory shop-floor6
*ecommended approaches to production design are: impli4ication,
tandardization and 2odularity6
• )implification:)implification: *educes the number of parts, subassemblies, and options in a product
3t also avoids tooling, using separate fasteners, and maDing adIustments6
• )tandardiEation:)tandardiEation: maDes possible the interchangeability of parts among products6
*esults in high-volume of production and purchasing, 'o2er investment in
inventory, easier purchasing and material handling less $uality inspections
• Modularity:Modularity: combines standardiEed building blocDs or modules" to createuni$ue finished products6
D) Design $or manu$actura"ility
5esigning a product so that it can be produced easily and economically6
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5esign )implification
a" he original designa" he original design
Assembly usingAssembly using
common fastenerscommon fasteners
.igure F6F.igure F6F
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5esign )implification
a" he original designa" he original design
Assembly usingAssembly using
common fastenerscommon fasteners
b" *evised designb" *evised design
One-pieceOne-piece
base 4 base 4
elimination ofelimination of
fastenersfasteners.igure F6F.igure F6F
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5esign )implification
a" he original designa" he original design
Assembly usingAssembly using
common fastenerscommon fasteners
b" *evised designb" *evised design
One-pieceOne-piece
base 4 base 4
elimination ofelimination of
fastenersfasteners
c" .inal designc" .inal design
5esign for5esign for
push-and- push-and-
snapsnap
assemblyassembly.igure F6F.igure F6F
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Appendi# - 33
J>
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JP
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01
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0<
'(A
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0F
'(A
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0G
'(A
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0L
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@eneric &roduct 5evelopment &rocess
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@eneric &roduct 5evelopment &rocess
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'y/ical #hases o$ #ro&uct De0elo/ment
• #lanning
• +once/t De0elo/ment
• System-Le0el &esign
• Design Detail
• 'esting an& (e$inement
• #ro&uction (am/-u/
Designing $or the +ustomer
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Designing $or the +ustomer
Quality Function
Deployment
Value Analysis/
Value Engineering
Ideal
Customer
Product
House of Quality
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Designing $or the +ustomer
uality unction De/loyment
• Inter$unctional teams $rom mar5eting2 &esignengineering2 an& manu$acturing
• ,oice o$ the customer
• Couse o$ uality
Designing $or the +ustomer
'h C $ li
><
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'he Couse o$ uality
Customer
*e$uirement
s
3 m p o r t a n c e t o
C u s t 6
+asy to close
)tays open on a hill
+asy to open
5oesnt leaD in rain
o road noise
3mportance 2eighting
+ngineerin
g
Characterist
ics + n e r g y n e e d e d
t o c l o s e d o o r
C h e c D
f o r c e o n
l e v e l
g r o u n d
+ n e r g y n e e d e d
t o o p e n d o o r
/ a t e r r e s i s t a n c e
1= J J P < F
0
L
F
F
<
TT
T
TT
Correlation:)trong positive
&ositive
egative)trong negative
T
Competitive evaluationT R UsA R Comp6 A R Comp6 L is best"
1 < F G L
T A
T A
TA
A T
T A
*elationships:
)trong R P
Medium R F)mall R 1
arget values
* e d u c e e n
e r g y
l e v e l t o 0 6 L f t l b
* e d u c e f o r c e
t o P l b 6
* e d u c e e n
e r g y
t o 0 6 L f t l b 6
M a i n t a i n
c u r r e n t l e v
e l
echnical evaluation
L is best"
LGF<1
A
T
AT
AT
T
A
TAAT
5 o o r s e a l
r e s i s t a n c e
A c c o u s t 6 , r a n s 6
/ i n d o 2
M a i n t a i n
c u r r e n t l e v
e l
M a i n t a i n
c u r r e n t l e v
e l
©he !c"ra#$Hill %ompanies, Inc., &''(
Customer
reuirements
information forms
the !asis for this
matri"# used to
translate them into
operating or
engineering goals$
Customer
reuirements
information forms
the !asis for this
matri"# used totranslate them into
operating or
engineering goals$
Designing $or the +ustomer
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g g
,alue Analysis@,alue ngineering
• Achie0e eui0alent or "etter /er$ormance at a lowercost while maintaining all $unctional reuirements
&e$ine& "y the customer
Does the item ha0e any &esign $eatures that are
not necessary? +an two or more /arts "e com"ine& into one?
Cow can we cut &own the weight?
Are there nonstan&ar& /arts that can "e
eliminate&?
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Design $or )anu$actura"ility• 'ra&itional A//roach
1We &esign it2 you "uil& it3 or 1O0er the wall3
• +oncurrent ngineering
1Let4s wor5 together simultaneously3
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)easuring #ro&uct De0elo/ment #er$ormance
Measures•.re$6 Of ne2 products introduced•ime to marDet introduction• umber stated and number completed
•Actual versus plan•&ercentage of sales from ne2 products
•.re$6 Of ne2 products introduced•ime to marDet introduction• umber stated and number completed
•Actual versus plan•&ercentage of sales from ne2 products
Time-to-marketTime-to-market
ProductivityProductivity
QualityQuality
•+ngineering hours per proIect•Cost of materials and tooling per proIect
•Actual versus plan
•+ngineering hours per proIect•Cost of materials and tooling per proIect
•Actual versus plan
•Conformance-reliability in use•5esign-performance and customer satisfaction
•Vield-factory and field
•Conformance-reliability in use•5esign-performance and customer satisfaction
•Vield-factory and field
&erformance5imension
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Appendi# 3?
5esign *evie2"
>0
he 5esign &rocess
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&ilot runand final tests
e2 product orservice launch
.inal design.inal design4 process plans4 process plans
3deageneration
.easibilitystudy
&roduct or service&roduct or service
conceptconcept
&erformance&erformance
specificationsspecifications
.unctionaldesign
.orm design
&roduction d
esign
*evising and testing*evising and testing prototypes prototypes
5esign5esignspecificationsspecifications
Manufacturing orManufacturing ordeliverydeliveryspecificationsspecifications
)uppliers)uppliers*45*45
CustomersCustomers
MarDetingMarDeting CompetitorsCompetitors
.igure F61: *ussell 4 aylor
.igure F61: *ussell 4 aylor acD toBacD toB
he 5esign &rocesshe 5esign &rocess
echni$ues for improving the 5esign &rocess
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• +stablishing multifunctional &esign teams
• MaDing design decisions +oncurrently
• Design $or )anu$actura"ility an& Assem"ly
• (e0iewing Designs to prevent failures and ensure value
• Design $or the n0ironment
• )easuring Design uality
• Using uality unction De/loyment
• Design $or (o"ustness
• +ngaging in +olla"orati0e Design
5esign *evie2 to prevent failures and ensure value
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.ailure mode and effects analysis .M+A"• a systematic method of analyEing product failures
.ault tree analysis .A"
• a visual method for analyEing interrelationships amongfailures
?alue analysis ?A"
• helps eliminate unnecessary features and functions
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5esign *evie2
;ailure 2ode and
tudy interrelationship bet?een 4ailurestudy interrelationship bet?een 4ailures
.M+A for &otato Chips.M+A for &otato Chips
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.M+A for &otato Chips.M+A for &otato Chips
FailureMode
Cause ofFailure
Effect ofFailure
CorrectiveAction
Stale low moisture content
expired shelf life
poor packaging
tastes bad
won’t crunch
thrown out
lost sales
add moisture
cure longer
better package seal
shorter shelf lifeBroken too thin
too brittle
rough handling
rough use
poor packaging
can’t dip
poor display
injures mouth
chocking
perceived as old
lost sales
change recipe
change process
change packaging
Too Salty outdated receipt
process not in control
uneven distribution of salt
eat less
drink more
health hazard
lost sales
experiment with recipe
experiment with process
introduce low salt version
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?alue analysis ?A" by asDing :
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• Can 2e do 2ithout it9
• 5oes it do more than is re$uired9
• 5oes it cost more than it is 2orth9
• Can something else do a better Iob9
• Can it be made by a less costly method tooling material9
• Can it be made cheaper better faster by someone else9
• 3s it an updated versions 9
3s it recyclable biodegradable9
3s the process sustainable9
/ill it use more energy than it is 2orth9
5oes the item or its by-product harm the environment9
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Appendi# ?
)ervice 5esign"
PL
)ervice 5esign
S i d fi D d i i
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• Ser0ice defines a target marDet and its customers e#perience6
• Ser0ice &esign begins 2ith ser0ice conce/t and ends 2ith ser0ice
&eli0ery
• Ser0ice conce/t defines
• he target customer and their desired e#perience
• ;o2 the service differs from others
• ;o2 to compete in the marDetplace
• )ometimes fills the unoccupied niche differs from the generally
accepted mode of operation"
• Ser0ice /ac5age is a bundle of 0hysical items, ensual bene4its, and
0sychological bene4its.
• Ser0ices "lue/rint is a process flo2chart that emphasiEe customer
interaction and service related terms such as 4ailure points, and lines o4
visibility.
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)ervice 5esign &rocess )ervice Concept
5esired arget
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)ervice &acDage
&erformance )pecifications
Customer )ervice
&rovider 5esign )pecifications
5elivery )pecifications
S(,I+
5esired
service e#perience
arget
Customer
&sychological
benefits&hysical
items
)ensual
benefits
Customer
*e$uirements
Customer
e#pectations
Activities .acility&rovider
sDills
Cost 4 time
estimates
5eliverables)chedule 'ocation
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5 i f ;i h C t t
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5esign for ;igh-Contact
)ervices5+)3@ 5+C3)3O5+)3@ 5+C3)3O ;3@;-COAC )+*?3C+;3@;-COAC )+*?3C+ 'O/-COAC )+*?3C+'O/-COAC )+*?3C+Facility locationFacility location Con%enient to customer Con%enient to customer &ear la!or or&ear la!or or
transportationtransportation
Facility layoutFacility layout 'ust loo( presenta!le#'ust loo( presenta!le#
accommodate customeraccommodate customerneeds# and facilitateneeds# and facilitateinteraction )ith customer interaction )ith customer
Designed for efficiencyDesigned for efficiency
Quality controlQuality control 'ore %aria!le since customer'ore %aria!le since customeris in%ol%ed in process*is in%ol%ed in process*customer e"pectations andcustomer e"pectations and
perceptions of uality mayperceptions of uality maydiffer* customer present )hendiffer* customer present )hendefects occur defects occur
'easured against'easured againstesta!lished standards*esta!lished standards*testing and re)or(testing and re)or(
possi!le to correct defectspossi!le to correct defects
CapacityCapacity E"cess capacity reuired toE"cess capacity reuired tohandle pea(s in demandhandle pea(s in demand
Planned for a%eragePlanned for a%eragedemanddemand
able F6
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5esign for ;igh-Contact
)ervices5+)3@ 5+C3)3O5+)3@ 5+C3)3O ;3@;-COAC )+*?3C+;3@;-COAC )+*?3C+ 'O/-COAC )+*?3C+'O/-COAC )+*?3C++or(er s(ills+or(er s(ills 'ust !e a!le to interact )ell'ust !e a!le to interact )ell
)ith customers and use)ith customers and use ,udgment in decision ma(ing ,udgment in decision ma(ing
Technical s(illsTechnical s(ills
-cheduling-cheduling 'ust accommodate customer'ust accommodate customerscheduleschedule
Customer concerned onlyCustomer concerned only)ith completion date)ith completion date
-er%ice process-er%ice process 'ostly front.room acti%ities*'ostly front.room acti%ities*ser%ice may change duringser%ice may change duringdeli%ery in response todeli%ery in response tocustomer customer
'ostly !ac(.room'ostly !ac(.roomacti%ities* planned andacti%ities* planned ande"ecuted )ith minimale"ecuted )ith minimalinterferenceinterference
-er%ice pac(age-er%ice pac(age Varies )ith customer* includesVaries )ith customer* includesen%ironment as )ell as actualen%ironment as )ell as actualser%iceser%ice
Fi"ed# less e"tensi%eFi"ed# less e"tensi%e
able F6
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(e$erences
16 Operations Management by *oberta )6 *ussell 4 ernard
/6 aylorQ &earson +ducation>. O/erations )anagement $or +om/etiti0e A&0antage by
*ichard 6 Chase, .6 *obert 7acobs, icholas 76 A$uilano,
and itin W Agar2alQ ata Mc@ra2-;ill +leventh
+ditionQ )i#th *eprint "F6 )trategic Operations Management by )teve ro2n,
*ichard 'amming, 7ohn essant and &eter 7onesQ +lsevier
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