1. Design of Products and Services* OPS 370 *Note much of the material from this chapter is NOT in the textbook

2. “You have to have products that sell” Product Design is a Business Issue “We are really pleased with our revenues but our goal isn't to make money. It sounds a little flippant, but it's the truth. Our goal and what makes us excited is to make great products. If we are successful people will like them and if we are operationally competent, we will make money” Jonny Ive, Apple Sr. VP of Industrial Design to British Embassy Creative Summit, July 2012 Unknown Attribution

3. Why Firms Develop New Products 1. Competitive Advantage 2. Market Share Gain 3. Higher Profitability 4. Enhancement of Brand 5. Faster Competitive Response 6. Improved Operating Cost & Resource Utilization

4. Competitive Advantage

5. Market Share Gain

6. Higher Profitability

7. Enhancement of Corporate Image and Brand Name

8. Faster Competitive Response ?

9. Single Item (Industry)Product Life Cycle

10. Lower Ops $ and Better Utilization of Capacity

11. Radical and Disruptive Innovation Radical Innovation: Disruptive Innovation:

12. Examples of Disruptive New Products

13. Elements of Product Design: Mass Customization

14. Elements of Product Design: Design for Production (Manufacturability) and Rapid Prototyping Design for manufacturability: Rapid prototyping:

15. Elements of Product Design: Design Simplification (a) The original design Assembly using common fasteners

16. Design Simplification (a) The original design Assembly using common fasteners (b) Revised design One-piece base & elimination of fasteners

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

18. Standardizing parts among different products at Ford Product# before# afterSavings/veh Air filters18 5 $0.45 Carpet 9 3 $1.25 Cigarette 141 lighters &$1.16 Trunk carpet 7 1 Annual savings = $3M + $9M + $5M = $17M

19. Environmentally Friendly Designs

20. Where Do New Product Ideas Come From? Traditional sources: customer surveys analyzing warranty claims, customer complaints surveys of suppliers, distributors, and salespersons

21. Modern Sources Benchmarking –comparing product/service against best-in-class Reverse engineering –dismantling competitor’s product to improve your own product Early Supplier Involvement (ESI)

22. Customer Choice Analysis

23. Product Reliability Analysis An approach for assessing the overall integrity of a product based on the configuration of its components

24. Product Reliability Analysis

25. Quantifying Reliability

27. What Is the Reliability of the Product Below? (Component Reliabilities Shown) A (0.9) B (0.95) C (0.9)

28. Quantifying Reliability How to Improve Reliability? – Add Redundancy! A (0.9) B (0.95) C (0.9)

29. Quantifying Reliability A (0.9) B (0.95) C (0.9) Backup to A (0.8)