The Product Design Process

Concept Development

Product Planning

Product/Process Engineering

Pilot Production/Ramp-Up
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How do you determine what the
customer wants?

Quality Function Deployment

Inter-functional teams from marketing,
design engineering, and manufacturing

Voice of the customer (for new and
existing products)

House of Quality
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Correlation:
Strong positive
X
6
Positive
X
X
Water resistance
Energy needed
to open door
Check force on
level ground
*
Competitive evaluation
X = Us
A = Comp. A
B = Comp. B
(5 is best)
1
2
Easy to close
7
X
Stays open on a hill
5
X AB
Easy to open
3
Doesn’t leak in rain
3
No road noise
2
3
4
5
AB
2
XAB
A XB
X A
10
Importance weighting
6
6
9
2
3
B
Relationships:
5
Technical evaluation
(5 is best)
5
4
3
2
1
B
X
B
B
A
X
X
A
BXA
Maintain
current level
Maintain
current level
BA
X
A
Reduce energy
to 7.5 ft/lb.
7
Reduce force
to 9 lb.
Target values
Maintain
current level
Strong = 9
Reduce energy
level to 7.5 ft/lb
1
Door seal
resistance
3
Customer
Requirements
Energy needed
to close door
Engineering
Characteristics
Negative
Strong negative
X
X
X
Accoust. Trans.
Window
House of Quality
Medium = 3
Small = 1
4
BA
X
5
Product Design

Value Analysis/Value Engineering



Design for Manufacturability




Simplification of products and processes
Cost reduction and avoidance
Traditional approach
Concurrent engineering
Design for Assembly
Global Product Design
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Concurrent Engineering

Concurrent engineering can be defined
as the simultaneous development of
design functions, with open and
interactive communication existing
among all team members for the
purpose of:
 reducing time to market
 decreasing cost
 improving quality and reliability
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Phased versus Overlapping Approach in New
Product Development
Design
information
processing
Information batch size
Activity
1
Phased Approach
Single batch
transfer of
info
Activity
2
Start of
Activity 2
Activity
3
Start of
Activity 3
Design
information
processing
Activity
1
Small batch transfer of info
Elapsed
time
Overlapping Approach
Activity
2
Start of
Activity 2
Start of
Activity 3
Elapsed
time
____________________________________________________________
“New Product Development: The New Time Wars” Joe Blackburn, 1991.
3a
Types of Processes

Conversion - e.g., creating steel from iron ore

Fabrication - e.g., forming steel into cans

Assembly - e.g., put cans, lids and
ingredients together

Testing - e.g., testing for sealed weight
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Process Flow Structures

Job shop

Batch

Assembly Line

Continuous Flow
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Exhibit 5.10, p.168: The Product - Process Matrix
Few
High
Low
Multiple
Major
Volume,
Volume Products, Products,
High
One of a
Low
Higher StandardKind
Volume Volume
ization
I.
Job
Shop
II.
Batch
III.
Assembly
Line
IV.
Continuous
Flow
Flexibility (High)
Unit Cost (High)
Commercial
Printer
French Restaurant
Heavy
Equipment
Coffee Shop
Automobile
Assembly
Burger King
Sugar
Refinery
Flexibility (Low)
Unit Cost (Low)
Source: Modified from Robert Hayes and Steven Wheelwright, Restoring Our Competitive Edge: Competing through
Manufacturing (New York: John Wiley & Sons, 1984). p. 209.
9
Virtual Factory
Shift from centralized production to ....
... an integrated network of capabilities
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Process Flow Design


A process flow design can be defined as a
mapping of the specific processes that raw
materials, parts, and subassemblies follow as
they move through a plant.
Common tools to design a process flow:

Assembly drawing

Assembly chart

Operation and route sheet
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Exhibit 4.13
Assembly (Gozinto) Chart
4
5
6
7
Lockring
Spacer, detent spring
SA-2
Rivets (2)
A-2
Spring-detent
A-5
Component/Assembly Operation
Inspection
©The McGraw-Hill Companies, Inc., 1998
12
Assemble Drawing
____________________________________________________________
Operations Management, Roger Schroeder, 1985
12b
Example: Process Flow Chart
Buffer: Material
Received
From
Supplier
No,
Continue…
Inspect
Material for
Defects
Defects
Found?
Yes
Return to
Supplier for
Credit
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Goods versus Services
goods
Pencil Manufacturer
• tangible
• storable
• easy quality assessment
• centralized production
• long lead times
• capital intensive
• low customer contact
• production separate
from consumption
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McDonald’s
services
Psychologist
• intangible
• perishable
• difficult quality assessment
• dispersed production
• short lead times
• labor intensity
• high customer contact
• production concurrent
with consumption
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Some Service Generalizations (1 of 2)
1. Everyone is an expert on services.
2. Services are idiosyncratic.
3. Quality of work is not quality of service.
4. Most services contain a mix of tangible
and intangible attributes (service package).
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Some Service Generalizations (2 of 2)
5. High-contact services (described later) are
experienced, whereas goods are consumed.
6. Effective management of services requires
an understanding of marketing and
personnel, as well as operations.
7. Services often take the form of cycles of
encounters involving face-to-face, phone,
electromechanical, and/or mail interactions.
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Service Types

Facilities-based vs. Field-based services

Internal Services - - External Services
Internal Supplier
Internal
Customer
External
Customer
Internal Supplier
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Service Strategy: Focus and Advantage
Performance Priorities

Treatment of the customer

Speed and convenience of service delivery

Price

Variety

Unique skills that constitute the service
offering
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Classifications of Services

Amount of customer contact
Low
versus
High

Standard or Custom Service

The mix of tangible and intangible goods
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Exhibit 6.7
Service-System Design Matrix
Degree of customer/server contact
High
Buffered
core (none)
Permeable
system (some)
Reactive
system (much)
Low
Face-to-face
total
customization
Face-to-face
loose specs
Sales
Opportunity
Face-to-face
tight specs
On-site
technology
Production
Efficiency
Phone
Contact
Mail contact
Low
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High
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Service Blueprinting
Standard
execution time
2 minutes
Brush
shoes
30
secs
Total acceptable
execution time
5 minutes
Seen by
customer
Line of
visibility
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Not seen by
customer but
necessary to
performance
Clean
shoes
45
secs
Apply
polish
30
secs
Fail
point
Buff
Collect
payment
45
secs
15
secs
Wrong
color wax
Materials
(e.g., polish, cloth)
Select and
purchase
supplies
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Failure Mode and Effects Criticality
Analysis (FMECA or FMEA)
Risk Priority Number (RPN) = Occurrence * Severity * Detection



Occurrence = Frequency of failure mode (1=remote,
9=inevitable, 10=certain)
Severity = How serious is the failure to the process; to business
results? (1=minor, 2-3=annoyance, 9-10=very high/most
severe)
Detection = Likelihood that a defect will be detected by controls
before the next (subsequent) process (1-2=very high, 9=very
low, 10=absolutely cannot detect)
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Service Recovery (Just in case)

A real-time response to a service failure.

Blueprinting can guide recovery planning
(fail points).

Recovery planning involves training frontline workers to respond to such situations as
overbooking, lost luggage, or a bad meal.
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Service Recovery (Just in case)
“Empowerment can only take place when
every associate can personally assure
customer satisfaction every time!”
Gary Johnson
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Service Recovery Processes:
Fundamental Questions to Ask

Who are my customers?

What is my product or service?



What are my customer’s expectations and
measures?
Does my product or service meet their
expectations?
What is the process for providing my product or
service?

What action is required to improve the process?

What are my customer’s moments of truth?
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Service Recovery - How it Works
Customer
Identification
Mission
Statement
Process Identification
Incidents
Remedies
Cost of Incident
Cost of
Poor Quality
Measurement of Frequency
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Service Failsafing: Poka-Yokes

Keeping a mistake from
becoming a service
defect.

A proactive approach
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Service Failsafing: Poka-Yokes
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Three Contrasting Service Designs

The production line approach

The self-service approach

The personal attention approach
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Designing the Service System

Major Design Issues

Product & Process are designed simultaneously

Scheduling of Capacity
 due to uncertainty in demand
 inability to store inventory

Dealing will uncertainty in demand
 preemptive tactics
 flexibility
 forecasting
 use of waiting lines
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Characteristics of a Well-Designed
Service System
1. Each element of the service system is consistent with
the operating focus of the firm.
2. It is structured so that consistent performance by its
people and systems is easily maintained.
3. It provides effective links between the back & front
office so that nothing falls between the cracks.
4. It manages the evidence of service quality in such a
way that customers see the value of the service.
5. The service system is:
 cost-effective
 user-friendly
 robust
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