Chapter 4
Product and
Service Design
Reasons for Product or
Service Design
• Be competitive through the
introduction of new products
• Business growth & profits
• Alternative to downsizing through
the development of new products
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What Does Product and
Service Design Do? (1 of 2)
• Translates customer wants and
needs into product and service
requirements (marketing)
• Refines existing products and
services (marketing)
• Develops new products and/or
services (marketing, operations)
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What Does Product and
Service Design Do? (2 of 2)
• Formulates quality goals (quality
assurance, operations)
• Formulates cost target (accounting)
• Constructs and tests prototypes
(marketing, operations)
• Documents specifications
(engineering, operations)
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Objectives of Product &
Service Design
• Satisfy the customer while making a
reasonable profit
• Other considerations include
–
–
–
–
development time and cost
product or service cost
product or service quality
design for operations (manufacturability)
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The Design Process
• Motivation
• Customer
• Ideas
– marketing
– research & development
– competitors
• Operations capabilities
• Forecasts
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Identifying New Product
Opportunities
• Factors influencing market opportunities
– economic change
– sociological and demographic change
– technological change
– political change
• Other sources of changes and opportunities
– market practices
– professional standards
– suppliers
– distributors Chapter 4 Product and Service Design
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Example of How to
Use the Competition
• Reverse engineering is the
dismantling and inspecting of a
competitor’s product to discover
product improvements
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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.
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Ideas
Market requirements
Product
Development
Stages
Functional specifications
Product specifications
Design review
Test market
Introduction
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Success?
8
Legal, Ethical, and
Environmental Issues
• Legal
– FDA, OSHA, IRS
– Product liability
– Uniform commercial code
• Ethical
– Releasing products with defects
• Environmental
– EPA
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Other Issues in Product Design
• Product Life Cycles
• Standardization
• Mass Customization
• Reliability
• Robust Design
• Concurrent Engineering
• Computer-Aided Design
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Life Cycles of Products or
Services
Figure 4-2
Saturation
Deman
d
Maturity
Decline
Growth
Incubation
Time
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Degree of Standardization
• Standardization is the extent to
which there is absence of variety in a
product, service, or process
• This results in interchangeable parts
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Advantages of
Standardization (1 of 2)
• Fewer parts to deal with in
inventory & manufacturing
• Reduced training costs and time
• More routine purchasing, handling,
and inspection procedures
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Advantages of
Standardization (2 of 2)
• 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.
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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.
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Mass Customization
• A strategy of producing
standardized goods or services, but
incorporating some degree of
customization
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Delayed Differentiation
• Delayed differentiation is a
postponement tactic
• Producing but not quite completing
a product or service until customer
preferences or specifications are
known
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Modular Design
• 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
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Reliability
• Reliability is the ability of a product,
part, or system to perform its intended
function under a prescribed set of
conditions
• Failure is when a product, part, or
system does not perform as intended
• Normal operating condition is the set
of conditions under which an item’s
reliability is specified
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Improving Product
Reliability
•
•
•
•
Component design
Testing
Redundancy
Preventive maintenance
procedures
• User education
• System design
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Robust Design
• Product performs as designed over a
broad range of conditions
• Less likely to fail due to a change in the
environment
• A similar approach can be used for
manufacturing processes
• Taguchi’s approach involves
determining the specifications that will
result in a robust design
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Traditional “Over the Wall”
Approach to Design
New
Product
Manufacturing
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Design
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Traditional “Over the Wall”
Approach to Design
New
Product
Manufacturing
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Issues/
Questions
Design
4-25
Concurrent Engineering
Approach (1 of 3)
Concurrent engineering is the
bringing together of design,
marketing, accounting,
manufacturing and other relevant
personnel early in the design phase
Allows certain design
and development activities
to go on simultaneously
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Concurrent Engineering
Approach (2 of 3)
• Advantages
– manufacturing able to identify
operations capabilities and capacities
– early opportunities to procure critical
resources with long lead times
– early consideration of technical
feasibility of the design
– emphasis on problem resolution, not
conflict resolution
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Concurrent Engineering
Approach (3 of 3)
• Difficulties
– long-standing existing boundaries can
be difficult to overcome
– there must be extra communication
and flexibility
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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
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Manufacturing Design
Considerations (1 of 2)
• Design for manufacturing (DMF)
– design compatible with operations capabilities
– manufacturability - ease of fabrication and/or
assembly which impacts cost, productivity and
quality
• Design for assembly (DFA)
– reduce the number of parts in an assembly
– assembly method and sequence
• Design for recycling (DFR)
– allows for dis-assembly of used products to
recover components and material for reuse
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Manufacturing Design
Considerations (2 of 2)
• Design for remanufacturing
– Refurbishing used by replacing worn out or
defective components
– Reasons for remanufacturing
• can be sold at a much reduced price
• requires mostly unskilled and semi-skilled
workers
• becoming a requirement
– Design for dis-assembly (DFD)
• product can be easily taken apart
• use fewer parts and less material
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Service Design
• Differences between service design
and product design
• Overview of service design
• Design guidelines
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Differences Between
Product and Service Design
• 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
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Service Variability & Customer
Influence Service Design
Figure 4-3
High
Customized
Clothing
Moderate
Variability
in
Service
Requirements
Dept. Store
Purchase
Low
None
Telephone
Purchase
Internet
Purchase
None
Low
Moderate
High
Degree of Contact with Customer
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Design Guidelines
• Have a single, unifying theme
• Make sure the system has
capability to handle variability in
demand
• Include design features to ensure
quality
• Design system to be user friendly
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Quality Function Deployment
• A structured approach for integrating the
“voice of the customer” into the product
or service development process
• Ensure that customer requirements are
translated into technical terms related to
the product or service
• Based on a set of matrices
– main QFD matrix
– house of quality
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The Main QFD Matrix
Importance
Customer
to
requirements customer
Technical requirements
Relationship
matrix
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The House of Quality
Figure 4-5
Correlation
matrix
Design
requirement
s
Customer
requirements
Relationship
matrix
Competitive
assessment
Specifications
or
target values
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House of Quality Example
Technical
requirements
Customer
Requirements
Paper
width
Paper
thickness
Roll
roundness
Coating
thickness
Tensile
strength
Paper
color
*
Correlation:
Strong positive
Positive
x Negative
* Strong negative
Competitive evaluation
X = Us
A = Comp. A
B = Comp. B
(5 is best)
1
X
2
3
4
5
AB
Paper will not tear
3
Consistent finish
1
A X B
No ink bleed
2
B A
Prints clearly
3
X AB
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5
4
3
2
1
B
X
A
A
X
B
B
A
X
A
X
B
27
A
B
X
9
Within
Approval panel
36
5 lbs.
36
C microns
w mm
Target values
27
1 mm
Total runout
3
t mm
Importance weighting
Technical evaluation
(5 is best)
X
Relationships:
Strong = 9
Medium = 3
Small = 1
X
A
B
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The Kano Model
Figure 4-7
Customer Satisfaction
Kano Model
Excitement
Expected
Must Have
Customer Needs
Design Characteristics
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Operations Strategy
• Shortening time-to-market
• Packaging products and ancillary
services
• Increasing emphasis on component
commonality
• Using multiple-use platforms
• Considering tactics for mass
customization
• Looking for continual improvement
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