DESIGN OF
PRODUCTS AND SERVICES
Chapter Three
McGraw-Hill/Irwin
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives





LO3–1: Know the issues associated with product design
and the typical processes used by companies.
LO3–2: Illustrate how different criteria can impact the
design of a product.
LO3–3: Contrast how service products can have
different design criteria compared to manufactured
products.
LO3–4: Evaluate the economic impact of a new product
on a company.
LO3–5: Illustrate how product development is measured
in a company.
3-2
Ideo – The Deep Dive
3
The Product Design Process



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Companies continuously bring new products to market
Product design is integral to success
Product design differs significantly depending on the
industry
Companies often outsource major functions

Contract manufacturer: an organization capable of manufacturing
and/or purchasing all the components needed to produce a finished
product
3-4
Core Competency


Core competency: the one thing a company can
do better than its competitors
A core competency has three characteristics:
1.
2.
3.
It provides potential access to a wide variety of
markets
It increases perceived customer benefits
It is hard for competitors to imitate
3-5
Examples of Successes in Design



Sun Microsystems designs the SPARC chips used in its high-performance
workstations but subcontracts the fabrication of those chips to specialized
chip makers (while maintaining ownership of the intellectual property).
A pharmaceutical company may purchase information on genetic targets
from a genomics company, contract with a specialist in combinatorial
chemistry for rapid synthesis and screening of candidate compounds, and
even utilize a contract research organization to conduct clinical trials but
retain ownership of the intellectual property (patents, experimental data,
trademarks, etc.) of the drug that eventually comes to market.
Dell has developed a set of highly specialized systems that support its
make-to-order operating strategy. Dell has created a set of proprietary
logistical processes that range from the design of its web page through its
information systems infrastructure (a process that has proved difficult for
others to imitate). Dell owns the data about what people are buying and in
which combinations. It also has been vertically integrated into final
assembly facilities that are designed to efficiently produce in lot sizes of
one. Finally, while it outsources components, Dell uses longer-term
relationships with its suppliers and links them into its information system to
support quick response.
3-6
Six Phases of the Generic Development
Process (Formal Process)
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Phase 0: Planning
Phase 1: Concept development
Phase 2: System-level design
Phase 3: Design detail
Phase 4: Testing and refinement
Phase 5: Production ramp-up
3-7
Phase 0: Planning




Precedes project approval
Begins with corporate strategy
Includes assessment of technology developments
and market objectives
Output is the project mission statement
3-8
Phase 1: Concept Development



Needs of the target market are identified
Alternative product concepts are generated and
evaluated
One or more concepts are selected for further
development and testing
 Concept:
a description of the form, function, and
features of a product
3-9
Phase 2: System-Level Design




Definition of the product architecture
Decomposition of the product into subsystems and
components
Final assembly scheme for the production system is
usually defined
Output:
 Geometric
layout of the product
 Functional specifications for each subsystem
 Preliminary process flow diagram
3-10
Phase 3: Design Detail





Complete specification of the geometry, materials, and
tolerances for all parts
Identification of all the standard parts to be purchased from
suppliers
Process plan is established
Tooling is designed
Output:



Drawings describing the geometry of each part and its tooling
Specifications of purchased parts
Process plan
3-11
Phase 4: Testing and Refinement

Construction and evaluation of multiple
preproduction versions of product
 Same
geometry and material as production version
 Not necessarily fabricated with the actual production
processes

Prototypes tested to determine if the product will
work as designed
3-12
Phase 5: Production Ramp-Up




Product is made using the intended production
system
Need to train workers and resolve any remaining
problems
Products may be supplied to preferred customers
for evaluation
Transition to ongoing production is gradual
3-13
The Generic Product Development
Process
3-14
Generic Product Development Process



Technology-push products: firm begins with new
technology and looks for a market
Platform products: built around a preexisting
technological subsystem
Process-intensive products: production process has
an impact on the properties of the product
 Product
design cannot be separated from process
design
3-15
Generic Product Development Process
Continued



Customized products: new products are slight
variations of existing configurations
High-risk products: technical or market
uncertainties create high risks of failure
Quick-build products: rapid modeling and
prototyping enables many design-build-test cycles
3-16
Generic Product Development Process
Continued


Complex systems: systems must be decomposed
into several subsystems and many components
Generic: begins with a market opportunity and
team selects appropriate technologies to meet
customer needs
3-17
Summary of Variants of Generic
Product Development Process
3-18
Designing for the Customer
House of Quality
Quality Function
Deployment
Ideal
Customer
Product
Value Analysis/
Value Engineering
3-19
Quality Function Deployment


Interfunctional teams from marketing, design
engineering, and manufacturing
Begins with listening to the customer
 Uses
market research
 Customer preferences are defined and broken down
into customer requirements

House of quality
3-20
Tata Megapixel
21
QFD: An Example from the Auto
Industry
QFD involves converting the expectations and
demands of the customers into clear objectives, which
are then translated into the vehicle specification. For
example, Topspeed found that passengers became
uncomfortable if the car rolled more than two
degrees and side acceleration exceeded 13.2 feet
per second squared. These data were used to help
define design criteria for the chassis engineers.
3-22
Completed House of Quality Matrix
for a Car Door
Customer requirements
information forms the
basis for this matrix,
used to translate them
into operating or
engineering goals
3-23
Linking Customer Needs to Product/Process
Attributes - Quality Function Deployment (QFD)


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Process design is as
important as product
design
Products and/or services
must meet customer
needs
Processes must meet
product and/or service
needs
4-24
Quality Function Deployment: Phase 1 Example

Phase 1: Product Planning

Translating customer wants and needs into technical design parameters
that can guide development of products and services.
4-25
The “House of Quality” Supports QFD
by providing a structured framework for linking customer to
product and process
The relationships
among the HOWs
HOW it can be achieved,
in measurable technical
terms
WHAT customers want
The relationships
between the WHATs
and the HOWs
Performance Goals for
the HOWS
4-26
The “House of Quality” links to
competitors
Relative importance
of the WHATs
Performance on
WHAT’s relative
to competitors
Performance goals
achieved by competitors
Relative importance of
performance goal to
delivery of customer
wants
4-27
Phase 1 House of Quality
Relationships among
HOWS
HOWS
WHATS
Relationships
between WHATs
and HOWS
Goals for HOWS
4-28
Phase 1 House of Quality
(continued)
Quick delivery is most
important to
customers
It is measured in
minutes
AND…
It can affect how
hot a pizza is
when it arrives
It is also something
Mary is very good
at.
The goal is < 20
minutes
4-29
The House of Quality

The “House” is used repetitively to drive customer
requirements closer to the product and process design.
 “Hows”
Phase 1
Product Planning
from prior phase become “Whats” of current phase
Phase 2
Part Deployment
Phase 3
Process Planning
Phase 4
Production Planning
4-30
Phase 2 House of Quality
(continued)

Phase 2: Part Deployment
–Technical design
parameters provide
information to guide the
development of the
components of the
product or service.
4-31
Phase 3 House of Quality

Phase 3: Process Planning


Based on component characteristics, processes are designed.
Specifying process requirements



Specific decisions on resource allocation and configuration
Prioritizing process requirements
Analyzing competitive offerings
4-32
The House of Quality

Phase 4: Production Planning

Process requirements are used to design a system that will control the process
and make sure it continues to meet expectations.
Phase 1
Product Planning
Phase 2
Part Deployment
Phase 3
Process Planning
Phase 4
Production Planning
• The result is a discernable and measurable link between
– The “wants” of the customer and the design of the product or service
4-33
Designing Products for Manufacture
and Assembly

Traditional approach
 “We

design it, you build it” or “over the wall”
Concurrent engineering
 “Let’s
work together simultaneously”
3-34
Design for Manufacturing and
Assembly

Greatest improvements related to DFMA arise from
simplification of the product by reducing the number of
separate parts:
1.
2.
3.
During the operation of the product, does the part move relative
to all other parts already assembled?
Must the part be of a different material or be isolated from other
parts already assembled?
Must the part be separate from all other parts to allow the
disassembly of the product for adjustment or maintenance?
3-35
BioBag
BioBag biodegradable and
compostable plastic bags are used
for carrying produce and are
supplied on a roll. Text on the bag
says “This bag is certified
compostable. Use, reuse, then
compost.”
3-36
Designing Service Products



Service products are very different
Direct customer involvement introduces significant
variability in the process
Questions to address:
 How
will this variability be addressed?
 What are the implications for operational cost and the
customer service experience?
3-37
Three General Factors for
Determining Fit
1. Service experience fit
•
The new service should fit into the current service
experience for the customer
2. Operational fit
•
Existing processes should be able to support the
operation of the new service
3. Financial impact
•
Introducing a new service should be financially
justified
3-38