Chapter 4

Product and Service Design

Typical Phases of Product Development

• Planning

• Concept Development

• System-Level design

• Design Detail

• Testing and Refinement

• Production Ramp-up

4-2

Economic Analysis of Project Development Costs

• Using measurable factors to help determine:– Operational design and development

decisions– Go/no-go milestones

• Building a Base-Case Financial Model– A financial model consisting of major

cash flows– Sensitivity Analysis for “what if” questions

4-3

Designing for the Customer

Quality FunctionDeployment

Value Analysis/Value Engineering

Ideal Customer Product

House of Quality

4-4

Designing for the Customer: Quality Function Deployment

• Interfunctional teams from marketing, design engineering, and manufacturing

• Voice of the customer

• House of Quality

4-5

Designing for the Customer: The House of Quality

Customer Requirements

Importance to Cust.

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No road noise

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6

Customer requirements information forms the basis for this matrix, used to translate them into operating or engineering goals.

Customer requirements information forms the basis for this matrix, used to translate them into operating or engineering goals.

Designing for the Customer: Value Analysis/Value Engineering

• Achieve equivalent or better performance at a lower cost while maintaining all functional requirements defined by the customer– Does the item have any design

features that are not necessary?– Can two or more parts be combined

into one?– How can we cut down the weight?– Are there nonstandard parts that

can be eliminated?

4-7

Design for Manufacturability

• Traditional Approach– “We design it, you build it” or “Over the

wall”

• Concurrent Engineering– “Let’s work together simultaneously”

4-8

Measuring Product Development Performance

Measures• Freq. Of new products introduced• Time to market introduction• Number stated and number completed• Actual versus plan• Percentage of sales from new

products

• Freq. Of new products introduced• Time to market introduction• Number stated and number completed• Actual versus plan• Percentage of sales from new

products

Time-to-marketTime-to-market

ProductivityProductivity

QualityQuality

• Engineering hours per project• Cost of materials and tooling per project• Actual versus plan

• Engineering hours per project• Cost of materials and tooling per project• Actual versus plan

• Conformance-reliability in use• Design-performance and customer satisfaction• Yield-factory and field

• Conformance-reliability in use• Design-performance and customer satisfaction• Yield-factory and field

Performance Dimension

4-9

Question Bowl

Which of the following is the first phase of the typical phases of product development?

a. Product/process engineeringb. Product planningc. Concept developmentd. Planninge. Ramp-up

Answer: d. Planning

4-10

Question Bowl

Which of the following is primarily focused on getting the voice of the customer into design specifications in product development?

a. Concurrent engineeringb. Value engineeringc. DFMAd. Quality function deploymente. None of the above

Answer: d. Quality function deployment

4-11

Question Bowl

Which of the following is the first step in building a House of Quality in product development?

a. Develop a list of customer requirements for the product

b. Concept developmentc. Pilot production/Ramp-upd. Concurrent engineeringe. None of the above

Answer: a. Develop a list of customer requirements for the product

4-12

End of Chapter 4

4-13