1. Design of Goods and Services Chapter 5

2. Designing Goods Form design: Appearance and other sensory aspects of a product Contributes to customer expectations of quality Functional design Performance standards Materials used Physical characteristics Part dimensions and tolerances (acceptable range of values for a dimension)

3. Form Design: How the Product Looks, Etc. Ipod Nano2006 Toyota Camry

4. Designing Services Service package Physical elements: facility, equipment and furnishings, inventories Sensory and aesthetic aspects Psychological benefits Quality standards Physical environment in which the service is provided

5. Pilot run and final tests New product or service launch Final design & process plans Idea generation Feasibility study Product or service concept Performance specifications Functional design Form design Production design Revising and testing prototypes Design specifications Manufacturing or delivery specifications Suppliers R&D Customers MarketingCompetitors The Product Design Process

6. Feasibility Study The objective is to design a product that Fits the company's strategy and will be competitive in the marketplace Is within the company's financial capabilities to develop and launch Meets customer needs in target markets Can be made in a quality manner And sold at a price that customers are willing to pay While meeting the company's profit targets

7. Operations Issues in Product Design Product design Product design is a joint responsibility of marketing, operations, accounting and finance, and engineering (in manufacturing) Process design (how the product will be made) Would we need a new or modified facility? Can the firm make this product with consistent quality? How many workers will we need? What skills will they need?

8. Functional Design of Goods How the Product Performs Reliability – 2 definitions 1. The probability that a product or part will perform its intended function for a specified period of time under normal conditions of use 2. Mean time between failures The reliability of a product depends on the reliability of its component parts Durability: length of a product's useful life

9. Design Simplification (b) Revised design One-piece base & elimination of fasteners (c) Final design Design for push-and-snap assembly (a) Original design Assembly using common fasteners

10. Functional Design of Goods How the Product Performs (2) Maintainability or serviceability Ease and/or cost of repairs Useability (ease of use) ease of learning ease of use ease of remembering how to use frequency and severity of errors user satisfaction with experience

11.  The objective of DFM is to design a product for easy and economical production  Simplification: reducing the number of parts, assemblies, or options in a product  Standardization: using commonly available and interchangeable parts Design for Manufacturing (DFM)

12. Design for Manufacturing (2) Advantages of simplification and standardization Reduces the cost of ordering, purchasing, and storing parts. Reduces the space required to hold inventory Reduces the number of tools and operations required (by eliminating bolts, screws, etc.) Reduces labor costs Reduces the time required to make the product

13. Design for Manufacturing (3)  Modularity (modular design): combining standardized building blocks, or modules, to create unique finished products  Permits some customization  Eliminates need for finished goods inventories  Design products that are easy to assemble.

14. Design for Manufacturing (4) Value Analysis of Parts and Materials Can we do without it? Does it do more than is required? Does it cost more than it is worth? Can something else do a better job? Can it be made by a less costly method? with less costly tooling? with less costly material? Can it be made cheaper, better, or faster by someone else? (Should we outsource?)

15. Reducing Time-to-Market Establish multifunctional design teams Make design decisions concurrently rather than sequentially Collaborative design with suppliers and among suppliers Design for manufacturing Use computer-aided design & engineering Rapid prototyping

16. Design Team

17. Concurrent Design Simultaneous design of products and processes by design teams Involves suppliers in design Uses Web-based collaborative work systems (collaborative product commerce) Many tasks are done at the same time: requires good project management Uses a price-minus approach rather than a cost- plus approach to design

18. Concurrent Design (2) Advantages of concurrent design Shorter time to market Better product quality Lower design costs Lower production costs Fewer product and process changes after product is introduced

19. Design for the Environment Design products that Can be recycled Can be made from recycled material Are durable and easy to fix Have minimal packaging Use less energy, use alternative energy sources, or use renewable energy Do not include harmful materials Extended producer responsibility holds companies responsible for their product even after its useful life is over

20. Design for the Environment (2) Recycled Parts in a BMW

21. Computer-Aided Design & Engineering Computer-aided design (CAD): use of computer software to design products Computer-aided engineering (CAE): use of computer software to evaluate and improve product designs Specialized CAD/CAE software is used by architects and landscape architects

22. Advantages of CAD and CAE Marketing: Firms can design better products and get them to market faster Finance: CAD and CAE reduce design costs, production costs, and the number of major product and process changes needed Operations: It is easier to make the product and to maintain good quality. General: Easier to use concurrent engineering, value engineering, design for manufacturing, and to involve suppliers in product design.

23. Data Flow in Manufacturing Technology Computer aided design (CAD) Computer aided engineering (CAE) Product design data Final design? No Yes Final design data Computer aided process planning (CAPP) Manufacturing instructions Computer aided manufacturing (CAM) Finished goods

24. Rapid Prototyping The ability to build product or part models quickly for form design, functional design, or production design A series of models are tested, revised, and discarded Models can be made of plastic, nylon, metal, or ceramics. Reduces design costs More designs can be considered  better designs New products can be introduced more quickly

25. Performance Specifications Service Delivery Specifications Physical items Sensual benefits Psychological benefits Design Specifications Service Provider Customer Customer requirements Customer expectations ActivitiesFacility Provider skills Cost and time estimates ScheduleDeliverablesLocation Service Concept Service Package Desired service experience Targeted customer Service Design Process

26. Service concept purpose of a service; it defines target market and customer experience Service package mixture of physical items, sensual benefits, and psychological benefits Service specifications performance specifications design specifications delivery specifications See Table 5.2

27. Design Decision High-Contact ServiceLow-Contact Service High v. Low Contact Services  Facility location  Convenient to customer  Near labor or transportation source Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210  Facility layout  Must look presentable, accommodate customer needs, and facilitate interaction with customer  Designed for efficiency

28. Design Decision High-Contact ServiceLow-Contact Service  Quality control  More variable since customer is involved in process; customer expectations and perceptions of quality may differ; customer present when defects occur  Measured against established standards; testing and rework possible to correct defects Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210  Capacity  Excess capacity required to handle peaks in demand  Planned for average demand High v. Low Contact Services (cont.)

29. Design Decision High-Contact ServiceLow-Contact Service  Worker skills  Must be able to interact well with customers and use judgment in decision making  Technical skills Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210  Scheduling  Must accommodate customer schedule  Customer concerned only with completion date High v. Low Contact Services (cont.)

30. Design Decision High-Contact ServiceLow-Contact Service High v. Low Contact Services (cont.)  Service process  Mostly front-room activities; service may change during delivery in response to customer  Mostly back- room activities; planned and executed with minimal interference Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210  Service package  Varies with customer; includes environment as well as actual service  Fixed, less extensive

31. Copyright 2006 John Wiley & Sons, Inc. Approaches to Service Design  Design for efficiency: High standardization High standardization Limited variety Limited variety Automation may be used Automation may be used High-volume services purchase at low cost. High-volume services purchase at low cost.  Customer involvement in producing the service Self-service salad bar Self-service salad bar  High customer attention: pure services, high-end hotels and retailers

32. Copyright 2006 John Wiley & Sons, Inc. Quality Function Deployment (QFD)  Translates voice of customer into technical design requirements  Displays requirements in matrix diagrams first matrix called “house of quality” first matrix called “house of quality” series of connected houses series of connected houses

33. House of Quality Trade-off matrix Design characteristics Customer requirements Target values Relationship matrix Competitive assessment Importance 1 2 3 4 5 6

34. Competitive Assessment of Customer Requirements Irons well Easy and safe to use Competitive Assessment Customer Requirements Customer Requirements12345 X Presses quickly9BAX X Removes wrinkles8ABX X Doesn’t stick to fabric6XBA X Provides enough steam8ABX X Doesn’t spot fabric6XAB X Doesn’t scorch fabric9AXB X Heats quickly6XBA X Automatic shut-off3ABX X Quick cool-down3XAB X Doesn’t break when dropped5ABX X Doesn’t burn when touched5ABX X Not too heavy8XAB

35. Energy needed to press Weight of iron Size of soleplate Thickness of soleplate Material used in soleplate Number of holes Size of holes Flow of water from holes Time required to reach 450º F Time to go from 450º to 100º Protective cover for soleplate Automatic shutoff Customer Requirements Presses quickly--+++- Removes wrinkles+++++ Doesn’t stick to fabric-++++ Provides enough steam++++ Doesn’t spot fabric+--- Doesn’t scorch fabric+++-+ Heats quickly--+- Automatic shut-off+ Quick cool-down--++ Doesn’t break when dropped++++ Doesn’t burn when touched++++ Not too heavy+---+- Irons well Easy and safe to use From Customer Requirements to Design Characteristics

36. Energy needed to press Weight of iron Size of soleplate Thickness of soleplate Material used in soleplate Number of holes Size of holes Flow of water from holes Time required to reach 450º Time to go from 450º to 100º Protective cover for soleplate Automatic shutoff - - + + + Tradeoff Matrix

37. Energy needed to press Weight of iron Size of soleplate Thickness of soleplate Material used in soleplate Number of holes Size of holes Flow of water from holes Time required to reach 450º Time to go from 450º to 100º Protective cover for soleplate Automatic shutoff Units of measure ft-lblbin.cmtyeammoz/ssecsecY/NY/N Iron A 31.48x42SS27150.545500NY Iron B 41.28x41MG27150.335350NY Our Iron (X) 21.79x54T35150.750600NY Estimated impact 344454325530 Estimated cost 333343334452 Targets 1.28x53SS3030500 Design changes ******* Objective measures Targeted Changes in Design

38. SS = Silverstone MG = Mirorrglide T = Titanium Completed House of Quality

39. A Series of Connected QFD Houses Customer requirements House of quality Product characteristics A-1 Product characteristics Parts deployment Part characteristics A-2 Part characteristics Process planning Process characteristics A-3 Process characteristics Operating requirements Operations A-4

40. Copyright 2006 John Wiley & Sons, Inc. Benefits of QFD  Promotes better understanding of customer demands  Promotes better understanding of design interactions  Involves manufacturing in design process  Breaks down barriers between functions and departments  Provides documentation of design process