MELJUN CORTES - Operation Management 4th Lecture (PRODUCT DESIGN)

8/9/2019 MELJUN CORTES - Operation Management 4th Lecture (PRODUCT DESIGN)

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4-1 MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,

MBA,MPA,BSCS,ACS

Operations Management

MELJUNELJUN

MELJUN CORTES,BSCS,ACS

Department of ICT

Faculty of Information

Technology


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MBA,MPA,BSCS,ACS

H

APTER

4

Product andService Design

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MBA,MPA,BSCS,ACS

Major factors in design strategy Cost

Quality

Time-to-market Customer satisfaction

Competitive advantage

Product and Service DesignProduct and Service Design

Product and service design or redesign should be

closely tied to an organizations strategy


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MBA,MPA,BSCS,ACS

Translate customer wants and needs intoproduct and service requirements

Refine existing products and services

Develop new products and services Formulate quality goals

Formulate cost targets

Construct and test prototypes

Document specifications

Product or Service Design ActivitiesProduct or Service Design Activities


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Reasons for Product or Service DesignReasons for Product or Service Design

Economic Social and demographic

Political, liability, or legal

Competitive

Technological


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Objectives of Product and Service DesignObjectives 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


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Taking into account the capabilities of theorganization in designing goods and

services

Designing For OperationsDesigning For Operations


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Legal FDA, OSHA, IRS

Product liability

Uniform commercial code Ethical

Releasing products with defects

Environmental EPA

Legal, Ethical, and Environmental IssuesLegal, Ethical, and Environmental Issues

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Regulations & Legal ConsiderationsRegulations & Legal Considerations

Product Liability - A manufacturer is liable forany injuries or damages caused by a faulty

product.

Uniform Commercial Code - Products carry animplication of merchantability and fitness.

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MBA MPA BSCS ACS


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Designers Adhere to GuidelinesDesigners Adhere to Guidelines

Produce designs that are consistant with thegoals of the company

Give customers the value they expect

Make health and safety a primary concern Consider potential harm to the environment

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MBA MPA BSCS ACS


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Other Issues in Product and Service DesignOther Issues in Product and Service Design

Product/service life cycles How much standardization

Product/service reliability

Range of operating conditions


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Life Cycles of Products or ServicesLife Cycles of Products or Services

Time

Introduction

Growth

Maturity

Saturation

Decline

Dema

nd

Figure 4.1


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StandardizationStandardization

Standardization Extent to which there is an absence of variety

in a product, service or process

Standardized products are immediatelyavailable to customers


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Advantages of StandardizationAdvantages of Standardization

Fewer parts to deal with in inventory &manufacturing

Design costs are generally lower

Reduced training costs and time

More routine purchasing, handling, and

inspection procedures


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Advantages of StandardizationAdvantages of Standardization (Contd)(Contd)

Orders fillable from inventory Opportunities for long production runs and

automation

Need for fewer parts justifies increasedexpenditures on perfecting designs andimproving quality control procedures.


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Disadvantages of StandardizationDisadvantages of Standardization

Designs may be frozen with too manyimperfections remaining.

High cost of design changes increases

resistance to improvements. Decreased variety results in less consumer

appeal.


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Mass customization: A strategy of producing standardized goods

or services, but incorporating some degree

degree of customization

Delayed differentiation

Modular design

Mass CustomizationMass Customization


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Delayed differentiation is a postponementtactic

Producing but not quite completing a product

or service until customer preferences orspecifications are known

Delayed DifferentiationDelayed Differentiation

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MBA MPA BSCS ACS


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Modular DesignModular Design

Modular design is a form of standardization inwhich component parts are subdivided intomodules that are easily replaced orinterchanged. It allows:

easier diagnosis and remedy of failures

easier repair and replacement

simplification of manufacturing and assembly


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ReliabilityReliability

Reliability: The ability of a product, part, or systemto perform its intended function under a prescribed

set of conditions

Failure: Situation in which a product, part, orsystem does not perform as intended

Normal operating conditions: The set of

conditions under which an items reliability isspecified


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Improving ReliabilityImproving Reliability

Component design Production/assembly techniques

Testing

Redundancy/backup

Preventive maintenance procedures

User education System design


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Product DesignProduct Design

Product Life Cycles Robust Design

Concurrent Engineering

Computer-Aided Design

Modular Design


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Taguchi Approach Robust DesignTaguchi Approach Robust Design

Design a robust product Insensitive to environmental factors either in manufacturing

or in use.

Central feature isParameter Design.

Determines: factors that are controllable and those not controllable

their optimal levels relative to major product advances

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MBA,MPA,BSCS,ACS


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Degree of NewnessDegree of Newness

1. Modification of an existing product/service2. Expansion of an existing product/service

3. Clone of a competitors product/service

4.New product/service


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MELJUN CORTES,MBA,MPA,BSCS,ACSMELJUN CORTES,MBA,MPA,BSCS,ACS

Degree of Design ChangeDegree of Design Change

Type of DesignChange

Newness of theorganization

Newness to themarket

Modification Low Low

Expansion Low Low

Clone High Low

New High High

Table 4.3


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MELJUN CORTES,MBA,MPA,BSCS,ACSJU CO S, , , SCS, CS

Idea GenerationIdea Generation

Ideas Competitor based

Supply chain based

Research based


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JU CO S, , , SCS, CS, , , ,

Reverse EngineeringReverse Engineering

Reverse engineeringis the

dismantling and inspecting

of a competitors product to discoverproduct improvements.


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, , , ,, , , ,

Research & Development (R&D)Research & Development (R&D)

Organized efforts to increase scientificknowledge or product innovation & mayinvolve:

Basic Research advances knowledge about a

subject without near-term expectations ofcommercial applications.

Applied Research achieves commercialapplications.

Developmentconverts results of appliedresearch into commercial applications.


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, , , ,, , , ,

Designing for ManufacturingDesigning for Manufacturing

Beyond the overall objective to achievecustomer satisfaction while making areasonable profit is:

Design for Manufacturing(DFM)

The designers consideration of theorganizations manufacturing capabilities

when designing a product.

The more general term design for operationsencompasses services as well as manufacturing


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, , , ,, , , ,

Concurrent EngineeringConcurrent Engineering

Concurrent engineering

is the bringing together

of engineering design andmanufacturing personnel

early in the design phase.


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, , , ,, , , ,

Computer-Aided DesignComputer-Aided Design

Computer-Aided Design (CAD) is productdesign using computer graphics.

increases productivity of designers, 3 to 10times

creates a database for manufacturinginformation on product specifications

provides possibility of engineering and costanalysis on proposed designs


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Design for manufacturing (DFM) Design for assembly (DFA)

Design for recycling (DFR)

Remanufacturing Design for disassembly (DFD)

Robust design

Product designProduct design


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Recycling: recovering materials for future use Recycling reasons

Cost savings

Environment concerns Environment regulations

RecyclingRecycling


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Service DesignService Design

Service is an act Service delivery system

Facilities

Processes Skills

Many services are bundled with products


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Service design involves The physical resources needed

The goods that are purchased or consumed by

the customer Explicit services

Implicit services


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Service Something that is done to or for a customer

Service delivery system

The facilities, processes, and skills needed toprovide a service

Product bundle The combination of goods and services

provided to a customer Service package

The physical resources needed to perform the

service


MBA,MPA,BSCS,ACS

Differences Between ProductDifferences Between Product


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Tangible intangible Services created and delivered at the same

time

Services cannot be inventoried Services highly visible to customers

Services have low barrier to entry

Location important to service

Differences Between ProductDifferences Between Productand Service Designand Service Design


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Phases in Service DesignPhases in Service Design

1. Conceptualize2. Identify service package components

3. Determine performance specifications

4. Translate performance specifications intodesign specifications

5. Translate design specifications into delivery

specifications


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Service BlueprintingService Blueprinting

Service blueprinting A method used in service design to describe and

analyze a proposed service

A useful tool for conceptualizing a servicedelivery system


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Major Steps in Service BlueprintingMajor Steps in Service Blueprinting

1. Establish boundaries2. Identify steps involved

3. Prepare a flowchart

4. Identify potential failure points

5. Establish a time frame

6. Analyze profitability


MBA,MPA,BSCS,ACS

Characteristics of Well DesignedCharacteristics of Well Designed


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Characteristics of Well DesignedCharacteristics of Well DesignedService SystemsService Systems

1. Consistent with the organization mission2. User friendly

3. Robust

4. Easy to sustain

5. Cost effective

6. Value to customers

7. Effective linkages between back operations

8. Single unifying theme

9. Ensure reliability and high quality


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Ch ll f S i D iCh ll f S i D i


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Challenges of Service DesignChallenges of Service Design

Variable requirements Difficult to describe

High customer contact

Service customer encounter


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Q li F i D lQ lit F ti D l t


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Quality Function Deployment Voice of the customer

House of quality

Quality Function DeploymentQuality Function Deployment

QFD: An approach that integrates thevoice of the customer into the

product and service developmentprocess.


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Th H f Q litTh H f Q lit


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The House of QualityThe House of Quality

Correlation

matrix

Design

requirements

Customer

require-

ments

Competitive

assessment

Relationship

matrix

Specifications

or

target values

Figure 4.4


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H f Q lit E lH f Q lit E l


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Customer

Requirements

ImportancetoC

ust.Easy to close

Stays open on a hill

Easy to open

Doesnt leak in rain

No road noise

Importance weighting

Engineering

Characteristics

Energyneede d

toclosedoor

Checkforce

onlevel

ground

Energyneede d

toopendoor

Waterresistance

10 6 6 9 2 3

7

5

3

3

2

X

X

X

X

X

Correlation:Strong positive

Positive

NegativeStrong negative

X*

Competitive evaluation

X = UsA = Comp. AB = Comp. B(5 is best)

1 2 3 4 5

X AB

X AB

XAB

A X B

X A B

Relationships:Strong = 9

Medium = 3

Small = 1Target values

Reduceenergy

levelto7.5ft/l b

Reduceforce

to9lb.

Reduceenergy

to7.5ft/lb.

Maintain

currentlevel

Technical evaluation

(5 is best)

54321

B

A

X

BA

X B

A

X

B

X

A

BXABA

X

Doorseal

resistance

Accoust.Trans.

Window

Maintain

currentlevel

Maintain

currentlevel

House of Quality ExampleHouse of Quality ExampleFigure 4.5


MBA,MPA,BSCS,ACS

Th K M d lTh K M d l


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Kano Model

Customer Needs

CustomerSatisfacti

Excitement

Expected

Must Have

The Kano ModelThe Kano ModelFigure 4.6


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O ti St tO ti St t


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1. Increase emphasis on componentcommonality

2. Package products and services

3. Use multiple-use platforms

4. Consider tactics for masscustomization

5. Look for continual improvement

6. Shorten time to market

Operations StrategyOperations Strategy


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Documents

MELJUN CORTES - Operation Management 4th Lecture (PRODUCT DESIGN)