1. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-1 Irwin/McGraw-Hill DESIGN OF PRODUCTION SYSTEMS PART THREE Chapter Four Product and Service Design Chapter Five Process Selection and Capacity Planning Chapter Six Facilities Layout Chapter Seven Design of Work Systems Chapter Eight Location Analysis © The McGraw-Hill Companies, Inc., 1999

2. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-2 Chapter 4 Product and Service Design

3. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-3 Reasons for Product or Service Design Be competitive Increase business growth & profits Avoid downsizing with development of new products Improve product quality Achieve cost reductions in labor or materials

4. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-4 Trends in Product & Service Design Increased emphasis on or attention to: – Customer satisfaction – Reducing time to introduce new product or service – Reducing time to produce product

5. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-5 Trends in Product & Service Design (Cont’d) Increased emphasis on or attention to: – The organization’s capabilities to produce or deliver the item – Environmental concerns – Designing products & services that are “user friendly” – Designing products that use less material

6. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-6 Objects of Product & Service Design Beyond the overall objective to achieve customer satisfaction while making a reasonable profit is: Design for Manufacturing(DFM) The designers’ consideration of the organization’s manufacturing capabilities when designing a product. The more general term design for operations encompasses services as well as manufacturing

7. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-7 The Design Process Motivation Customer Marketing Competitors Forecasts

8. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-8 Reverse Engineering Reverse engineering is the dismantling and inspecting of a competitor’s product to discover product improvements.

9. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-9 Manufacturability Manufacturability is the ease of fabrication and/or assembly which is important for: – Cost – Productivity – Quality

10. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-10 Regulations & Legal Considerations Product Liability - A manufacturer is liable for any injuries or damages caused by a faulty product. Uniform Commercial Code - Products carry an implication of merchantability and fitness.

11. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-11 Research & Development (R&D) Organized efforts to increase scientific knowledge or product innovation & may involve: – Basic Research advances knowledge about a subject without near-term expectations of commercial applications. – Applied Research achieves commercial applications. – Development converts results of applied research into commercial applications.

12. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-12 Product Design Product Life Cycles Robust Design Concurrent Engineering Computer-Aided Design Modular Design

13. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-13 Advantages of Standardization Fewer parts to deal with in inventory & manufacturing Reduced training costs and time More routine purchasing, handling, and inspection procedures

14. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-14 Advantages of Standardization (Cont’d) Orders fillable from inventory Opportunities for long production runs and automation Need for fewer parts justifies increased expenditures on perfecting designs and improving quality control procedures.

15. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-15 Disadvantages of Standardization Designs may be frozen with too many imperfections remaining. High cost of design changes increases resistance to improvements. Decreased variety results in less consumer appeal.

16. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-16 Life Cycles of Products or Services Time Incubation Growth Maturity Saturation Decline Deman d Figure 4-2

17. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-17 Design for manufacturing (DFM) Design for assembly (DFA) Design for recycling (DFR) Remanufacturing Design for disassembly (DFD) Robust design Product design

18. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-18 Taguchi Approach Robust Design Design a robust product – Insensitive to environmental factors either in manufacturing or in use. Central feature is Parameter Design. Determines: – factors that are controllable and those not controllable – their optimal levels relative to major product advances

19. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-19 Concurrent Engineering Concurrent engineering is the bringing together of engineering design and manufacturing personnel early in the design phase.

20. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-20 “Over the Wall” Approach Design Mfg New Product

21. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-21 Computer-Aided Design Computer-Aided Design (CAD) is product design using computer graphics. – increases productivity of designers, 3 to 10 times – creates a database for manufacturing information on product specifications – provides possibility of engineering and cost analysis on proposed designs

22. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-22 Modular Design Modular design is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged. It allows: – easier diagnosis and remedy of failures – easier repair and replacement – simplification of manufacturing and assembly

23. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-23 Steel production Automobile fabrication House building Road construction Dressmaking Farming Auto Repair Appliance repair Maid Service Manual car wash Teaching Lawn mowing Low service content High goods content High service content Low goods content Increasing goods content Increasing service content Goods-service spectrum Figure 4-3

24. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-24 Service Variability & Customer Influence Service Design Variability in Service Requirements Figure 4-4 Degree of Contact with Customer

25. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-25 The House of Quality Correlation matrix Design requirements Customer require- ments Competitive assessment Relationship matrix Specifications or target values Figure 4-7

26. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-26 House of Quality Example

27. CHAPTER FOUR Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PRODUCT AND SERVICE DESIGN 4-27 Improving Reliability Component design Production/assembly techniques Testing Redundancy Preventive maintenance procedures User education System design