Design of Goods & Services. Humor in Product Design

Design of Goods & Services

Humor in Product Design

Need-satisfying offering of an organizationExample

P&G does not sell laundry detergentP&G sells the benefit of clean clothes

Customers buy satisfaction, not partsMay be a good or a service

What is a Product?

Generation of New Product Opportunities

Economic changeSociological and demographic changeTechnological change

Political/legal changeChanges in

market practiceprofessional standardssuppliers and distributors

Product

ProductIdea

Package

PhysicalGood

FeaturesQualityLevel

Service(Warranty)

Brand(Name)

Product Components

Product Life Cycle

IntroductionGrowthMaturityDecline

Product Life CycleIntroduction

Fine tuningresearchproduct developmentprocess modification and enhancementsupplier development

Product Life CycleGrowth

Product design begins to stabilizeEffective forecasting of capacity

becomes necessaryAdding or enhancing capacity may be

necessary

Product Life CycleMaturity

Competitors now establishedHigh volume, innovative production may

be neededImproved cost control, reduction in

options, paring down of product line

Product Life CycleDecline

Unless product makes a special contribution, must plan to terminate offering

Product Life Cycle vs. Sales, Cost, and Profit

Sale

s, C

ost &

Pro

fit

Introduction Maturity DeclineGrowth

Cost ofDevelopment

& ManufactureSales Revenue

Time

Cash flowLoss

Profit

0%5%

10%15%20%25%30%35%40%45%50%

Position of Firm in Its Industry

Indu

stry

Lea

der

Top Third Middle

ThirdBottomThird

Percent of Sales From New Product

Products in Various Stages of Life Cycle

GrowthDecline

Time

Sales

Hybrid Cars

Plasma TVs Cell

Phones

VCRs

IntroductionMaturity

Few SuccessesFew Successes

0

500

1000

1500

2000

Development Stage

Number

1000

Market requirement

Design review,Testing, Introduction

25

Ideas1750

Product specification

100

Functional specifications

One success!

500

Product-by-Value Analysis

Lists products in descending order of their individual dollar contribution to the firm.

Helps management evaluate alternative strategies.

Product Development Stages

Idea generationAssessment of firm’s ability to carry outCustomer RequirementsFunctional SpecificationProduct SpecificationsDesign ReviewTest MarketIntroduction to MarketEvaluation

Scop

e of

pro

duct

dev

elop

men

t tea

m

Scope of design for manufacturability and value engineering teams

Quality Function Deployment

Identify customer wantsIdentify how the good/service will satisfy

customer wantsRelate customer wants to product howsIdentify relationships between the firm’s

howsDevelop importance ratingsEvaluate competing products

QFD House of Quality

House of Quality Sequence

Idea Generation Stage

Provides basis for entry into marketSources of ideas

Market need (60-80%); engineering & operations (20%); technology; competitors; inventions; employees

Follows from marketing strategy Identifies, defines, & selects best market

opportunities

Customer Requirements Stage

Identifies & positions key product benefitsStated in core benefits proposition

(CBP)Identifies detailed list of product

attributes desired by customer Focus groups or 1-on-1 interviews

Functional Specification StageDefines product in terms of how the

product would meet desired attributesIdentifies product’s engineering

characteristicsExample: printer noise (dB)

Prioritizes engineering characteristicsMay rate product compared to

competitors’

Determines how product will be madeGives product’s physical specifications

Example: Dimensions, material etc.Defined by engineering drawingDone often on computer Computer-

Aided Design (CAD)

Product Specification Stage

Quality Function Deployment

Product design process using cross-functional teamsMarketing, engineering, manufacturing

Translates customer preferences into specific product characteristics

Involves creating 4 tabular ‘Matrices’ or ‘Houses’Breakdown product design into increasing levels

of detail

You’ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality.

© 1984-1994 T/Maker Co.

House of Quality Example


High relationship Medium relationship Low Relationship

CustomerRequirements

CustomerImportance

Target Values



Target Values

Light weightEasy to useReliable

What the customer desires (‘wall’)

AluminumParts

AutoFocus

AutoExposure


CustomerImportance




CustomerImportance

Target Values


AluminumParts

AutoFocus

AutoExposure

3

12

Average customer importance rating




CustomerImportance


AluminumParts

AutoFocus

AutoExposure

321

Relationship between customer attributes & engineering characteristics (‘rooms’)




CustomerImportance

Target Values


AluminumParts

AutoFocus

AutoExposure

321

5 1 1

Target values for engineering characteristics (‘basement’); key output

Organizing for Product Development

Historically – distinct departmentsDuties and responsibilities are definedDifficult to foster forward thinking

Today – team approachRepresentatives from all disciplines or

functionsConcurrent engineering – cross functional

teams including research, development, manufacturing process design, etc.

Manufacturability and Value Engineering

Benefits:reduced complexity of productsadditional standardization of productsimproved functional aspects of productimproved job design and job safetyimproved maintainability of the productrobust design

Cost Reduction of a Bracket via Value Engineering

Successful Value Engineering:

Support of top management Qualified, experience leadership Formal organization of the value engineering

function Training programs to teach the skills and

techniques to those assigned to teams A diverse, cooperating team Adequate staffing, funding, and vendor

assistance

Issues for Product Development

Robust designTime-based competitionModular designComputer-aided designValue analysisEnvironmentally friendly design“Green” manufacturing

Robust Design

Products are designed so that they may be manufactured uniformly and consistently despite adverse manufacturing and environmental conditions.

Time-based Competition

Product life cycles are becoming shorter.

Faster developers of new products gain on slower developers and obtain a competitive advantage

Modular Design

Products designed in easily segmented components known as modular designs

Adds flexibility to both production and marketing

Examples:Airbus – wingsFast food – buns, vegetables, etc.Dell computer

Designing products at a computer terminal or work station Design engineer

develops rough sketch of product

Uses computer to draw product

Often used with CAM

© 1995 Corel Corp.

Computer Aided Design (CAD)

Benefits of CAD Shorter design time Database availability New capabilities Improved product quality Reduced production costs

Extensions Design for Manufacturing and Assembly (DFMA) 3-D Object Modeling CAD info is translated into machine control

instructions (CAM)

CAD & CAM

Virtual Reality

Computer technology used to develop an interactive, 3-D model of a product

Especially helpful in design of layouts (e.g. factory, store, home, office, etc.)

Value Analysis

Focuses on design improvement during production

Seeks improvements leading either to a better product or a product which can be more economically produced

Environmentally Friendly Designs

BenefitsSafe and environmentally sound productsMinimum raw material and energy wasteProduct differentiationEnvironmental liability reductionCost-effective compliance with

environmental regulationsRecognition as good corporate citizen

“Green” Manufacturing

Make products recyclableUse recycled materialsUse less harmful ingredientsUse lighter componentsUse less energyUse less material

Product Development Continuum

External Development StrategiesAlliances

Joint Ventures Purchase Technology or Expertise by Acquiring the Developer

Internal Development StrategiesMigrations of Existing Products

Enhancement to Existing ProductsNew Internally Developed Products

Internal ----------------------Cost of Product Development --------------------------- Shared

Lengthy --------------------Speed of Product Development---------Rapid and/or Existing

High ------------------------- Risk of Product Development ----------------------------- Shared

Engineering drawingShows dimensions, tolerances, & materialsShows codes for Group Technology

Bill of Material Lists components, quantities & where usedShows product structure

Engineering Change Notice (ECN) A correction or modification of an engineering

drawing or bill of material

Product Documents

Monterey Jack

(a) U.S. grade AA. Monterey cheese shall conform to the following requirements:

(1)Flavor - Is fine and highly pleasing, free from undesirable flavors and odors. May possess a very slight acid or feed flavor.

(2)Body and texture - A plug drawn from the cheese shall be reasonably firm. It shall have numerous small mechanical openings evenly distributed throughout the plug. It shall not possess sweet holes, yeast holes, or other gas holes

(3)Color - Shall have a natural, uniform, bright and attractive appearance.

(4)Finish and appearance - bandaged and paraffin-dipped. The rind shall be sound, firm, and smooth providing a good protection to the cheese

Code of Federal Regulation, Parts 53 to 109,. Revised as of Jan. 1, 1985, General Service Administration

1-5/8

13/163/8

13/16

13/16diameter

13/32diameter

1/4 R

12-1/2

5/16

2-1/4

45°

BracketScale: FULL

Drawn: J. Thomas A- 435-038

1-5/8

13/163/8

13/16

13/16diameter

13/32diameter

1/4 R

12-1/2

5/16

2-1/4

45°

BracketScale: FULL

Drawn: J. Thomas A- 435-038

Engineering Drawing Example

Engineering Drawings - Show Dimensions, Tolerances, etc.

Bill of MaterialP/N: 1000 Name: Bicycle

P/N Desc Qty Units Level1001 Handle Bars 1 Each 11002 Frame Assy 1 Each 1

1003 Wheels 2 Each 2 1004 Frame 1 Each 2

Bill of MaterialP/N: 1000 Name: Bicycle

P/N Desc Qty Units Level1001 Handle Bars 1 Each 11002 Frame Assy 1 Each 1

1003 Wheels 2 Each 2 1004 Frame 1 Each 2

Bill of Material Example

Bill of Material for a Panel Weldment Hard Rock Café’s Hickory BBQ Bacon Cheeseburger

Number Description Qty

Description Qty

A60-71 Panel Weldm’t 1 BunHamburger PattyCheddar CheeseBaconBBQ OnionsHickory BBQ SauceBurger Set Lettuce Tomato Red Onion PickleFrench FriesSeasoned Salt11-inch PlateHRC Flag

18 oz.2 slices2 strips½ cup1 oz. 1 leaf1 slice4 rings1 slice5 oz.1 tsp11

A 60-7R 60-17R 60-428P 60-2

Lower Roller Assembly Roller Pin Locknet

1111

60-72R 60-57-1A 60-402-50-1150

Guide Assem. Rear Support Angle Roller Assem. Bolt

1111

A 60-73A 60-74R 60-9902-50-1150

Guide Assm, Front Support Weldm’t Wear Plate Bolt

1111

BOM – Manufacturing vs. Fast-FoodBOM – Manufacturing vs. Fast-Food

Make-or-Buy Decisions

Decide whether or not you want (or need) to produce an item

May be able to purchase the item as a “standard item” from another manufacturer

Reasons for Making

lower production cost unsuitable suppliers assure adequate supply utilize surplus labor and

make a marginal contribution

obtain desired quality remove supplier

collusion

obtain a unique item that would entail a prohibitive commitment from the supplier

maintain organizational talent

protect proprietary design or quality

increase/maintain size of company

Reasons for Buying

lower acquisition cost

preserve supplier commitment

obtain technical or management ability

inadequate capacity reduce inventory

costs

ensure flexibility and alternate source of supply

reciprocity item is protected by

patent or trade secret

frees management to deal with its primary business

Parts grouped into familiesSimilar, more standardized parts

Uses coding systemDescribes processing & physical

characteristicsPart families produced

in manufacturing cellsMini-assembly lines

Group Technology Characteristics

112mm112mm

60mm60mm

4mm x 45° chamfer4mm x 45° chamfer

80mm80mm Product Code: 1 5 3 1

Part function (round rod) Material (steel) Max. length (50 < L < 150) Primary machine (lathe)

Round Rod

Group Technology Code Example

Group Technology Schemes Enable Grouping of Parts

Improved product designReduced purchasesReduced work-in-process inventoryImproved routing & machine loadingReduced setup & production timesSimplified production planning &

controlSimplified maintenance

Group Technology Benefits

Production Documents

Assembly DrawingAssembly chartRoute sheetWork order

Shows exploded view of product

Head Neck

Handle

End Cap

© 1984-1994 T/Maker Co.

Assembly Drawing

Assembly Drawing and Chart

Route Sheet

Lists all operationsRoute Sheet for Bracket

Sequence Machine Operation SetupTime

OperationTime/Unit

1 Shear # 3 Shear tolength

5 .030

2 Shear # 3 Shear 45°corners

8 .050

3 Drillpress

Drill bothholes

15 3.000

4 Brakepress

Bend 90° 10 .025

Route Sheet for BracketSequence Machine Operation Setup

TimeOperationTime/Unit

1 Shear # 3 Shear tolength

5 .030

2 Shear # 3 Shear 45°corners

8 .050

3 Drillpress

Drill bothholes

15 3.000

4 Brakepress

Bend 90° 10 .025

Work Order

Dept Oper DateWork Order

Approved: JM

Manufacturing

Authorizes producing a given item, usually to a schedule

Configuration Management

A system by which a product’s planned and changing components are accurately identified and for which control and accountability of change are maintained

Service Design – Customer Participation

Decision Trees & Product Design

Particularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes.

Considerations: Include all possible alternatives and states of

nature - including “doing nothing”Enter payoffs at end of each branchApproach determining expected values by

backward induction & “pruning” tree

Transition to Production

First issue: knowing when to move to production

Second issue: must view product development as evolutionary, not the responsibility of single individual or department

Third issue: expect to need a trial production period to work the bugs out

Fourth issue: recognize that responsibility must also transition