1. Product and Service Design
Chapter 4
Product and Service Design

2. Sources of Ideas for Products and Services
Internal
Employees
Marketing department
R&D department
External
Customers (QFD)
Competitors
Suppliers

3. Reverse engineering is the
dismantling and inspecting of a competitor’s product to discover product improvements.

4. 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.

5. Legal, Ethical, and Environmental Issues
FDA, OSHA, IRS
Product liability
Uniform commercial code
Ethical
Releasing products with defects
Environmental
EPA

6. Product Design—Other Issues
Product Life Cycles
Standardization
Benefits and disadvantages
Key trade-off, Variety vs. volume
Design for mass customizations
Reliability
Robust Design

7. Life Cycles of Products or Services
Figure 4-2
Time
Incubation
Growth
Maturity
Saturation
Decline
Demand

8. Standardization: The Key Trade-off
Volume
Variety
Flexibility
Efficiency

9. Advantages of Standardization
Fewer parts to deal with in inventory & manufacturing
Reduced training costs and time
More routine purchasing, handling, and inspection procedures

10. 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.

11. 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.

12. Mass Customization
A strategy of producing standardized goods or services, but incorporating some degree degree of customization
Implications
Product implications—modular design
Process implications—postponement
Sales implications—internet

13. Reliability
Reliability: The ability of a product, part, or system to perform its intended function under a prescribed set of conditions
Failure: Situation in which a product, part, or system does not perform as intended

14. Improving Reliability
Component design
Production/assembly techniques
Testing
Redundancy/backup
Preventive maintenance procedures
User education
System design

15. Robust Design
Robust Design: Design that results in products or services that can function over a broad range of conditions
Insensitive to environmental factors either in manufacturing or in use.

16. Designing for Manufacturing
Concurrent engineering
CAD
Production requirements
DFM, DFA
Recycling
Remanufacturing
Component commonality

17. Differences Between Product and Service (Mfg vs. Services)
Tangible – intangible
Services cannot be inventoried
Services created and delivered at the same time—customer is in the system
Location and layout important to services
Customers bring more variety
Services are more labor intensive
Services have low barrier to entry

18. Service Variability & Customer Influence Service Design
Figure 4-3
High
Moderate
Low
None
Telephone Purchase
Dept. Store Purchase
Customized Clothing
Internet Purchase
Variability
in Service
Require-ments
Degree of Contact with Customer

19. Continuum of Characteristics
More like a manufacturing organization
More like
a service organization
Physical, durable product
Output can be inventoried
Low customer contact
Long response time
Regional, national or International markets
Large facilities
Capital intensive
Quality easily measured
Intangible, perishable product
Output cannot be inventoried
High customer contact
Short response time
Local markets
Small facilities
Labor intensive
Quality not easily measured

20. Quality Function Deployment
Voice of the customer
House of quality
QFD: An approach that integrates the “voice of the customer” into the product and service development process.

21. The House of Quality Figure 4-5 Relationship Correlation matrix Design
requirements
Customer
require-
ments
Competitive
assessment
Relationship
Specifications or
target values

22. House of Quality Example
Customer
Requirements
Importance to Cust.
Easy to close
Stays open on a hill
Easy to open
Doesn’t leak in rain
No road noise
Importance weighting
Engineering Characteristics
Energy needed
to close door
Check force on level ground
to open door
Water resistance 10 6 9 2 3 7 5 X
Correlation:
Strong positive
Positive
Negative
Strong negative *
Competitive evaluation
X = Us
A = Comp. A
B = Comp. B
(5 is best) AB
X AB
XAB
A X B
X A B
Relationships:
Strong = 9
Medium = 3
Small = 1
Target values
Reduce energy
level to 7.5 ft/lb
Reduce force
to 9 lb.
to 7.5 ft/lb.
current level
Maintain
Technical evaluation 4 1 A BA
BXA
Door seal
resistance
Accoust. Trans.
Window