Design of Goods and Services Chapter 5. Designing Goods Form design: Appearance and other sensory aspects of a product Contributes to customer expectations.

Design of Goods and Services

Chapter 5

Designing Goods

Form design: Appearance and other sensory aspects of a product Contributes to customer expectations of

quality Functional design

Performance standards Materials used Physical characteristics

Part dimensions and tolerances (acceptable range of values for a dimension)

Form Design: How the Product Looks, Etc.

Ipod Nano 2006 Toyota Camry

Designing Services

Service package Physical elements: facility, equipment and

furnishings, inventories Sensory and aesthetic aspects Psychological benefits

Quality standards Physical environment in which the

service is provided

Pilot runand final tests

New product or service launch

Final designFinal design& process plans& process plans

Ideageneration

Feasibilitystudy

Product or Product or service conceptservice concept

Performance Performance specificationsspecifications

Functionaldesign

Form design

Production design

Revising and testing Revising and testing prototypesprototypes

Design Design specificationsspecifications

Manufacturing Manufacturing or delivery or delivery specificationsspecifications

SuppliersSuppliersR&DR&D

CustomersCustomers

MarketingMarketing CompetitorsCompetitors

The Product Design Process

Feasibility Study

The objective is to design a product that Fits the company's strategy and will be

competitive in the marketplace Is within the company's financial capabilities

to develop and launch Meets customer needs in target markets Can be made in a quality manner And sold at a price that customers are

willing to pay While meeting the company's profit targets

Operations Issues in Product Design

Product design Product design is a joint responsibility of

marketing, operations, accounting and finance, and engineering (in manufacturing)

Process design (how the product will be made) Would we need a new or modified facility? Can the firm make this product with consistent

quality? How many workers will we need?

What skills will they need?

Functional Design of GoodsHow the Product Performs

Reliability – 2 definitions1. The probability that a product or part will

perform its intended function for a specified period of time under normal conditions of use

2. Mean time between failures The reliability of a product depends

on the reliability of its component parts

Durability: length of a product's useful life

Design Simplification

(b) Revised design(b) Revised design

One-piece base & One-piece base & elimination of elimination of fastenersfasteners

(c) Final design(c) Final design

Design for Design for push-and-snap push-and-snap assemblyassembly

(a) Original design(a) Original design

Assembly using Assembly using common fastenerscommon fasteners

Functional Design of GoodsHow the Product Performs (2)

Maintainability or serviceability Ease and/or cost of repairs

Useability (ease of use) ease of learning ease of use ease of remembering how to use frequency and severity of errors user satisfaction with experience

The objective of DFM is to design a product for easy and economical production

Simplification: reducing the number of parts, assemblies, or options in a product

Standardization: using commonly available and interchangeable parts

Design for Manufacturing (DFM)

Design for Manufacturing (2)

Advantages of simplification and standardization Reduces the cost of ordering, purchasing, and

storing parts. Reduces the space required to hold inventory Reduces the number of tools and operations

required (by eliminating bolts, screws, etc.) Reduces labor costs Reduces the time required to make the product

Design for Manufacturing (3)

Modularity (modular design): combining standardized building blocks, or modules, to create unique finished products Permits some customization Eliminates need for finished goods

inventories Design products that are easy to

assemble.

Design for Manufacturing (4)Value Analysis of Parts and

Materials

Can we do without it? Does it do more than is required? Does it cost more than it is worth? Can something else do a better job? Can it be made by

a less costly method? with less costly tooling? with less costly material?

Can it be made cheaper, better, or faster by someone else? (Should we outsource?)

Reducing Time-to-Market

Establish multifunctional design teams Make design decisions concurrently rather

than sequentially Collaborative design with suppliers and

among suppliers Design for manufacturing Use computer-aided design & engineering Rapid prototyping

Design Team

Concurrent Design

Simultaneous design of products and processes by design teams Involves suppliers in design Uses Web-based collaborative work systems

(collaborative product commerce) Many tasks are done at the same time:

requires good project management Uses a price-minus approach rather than a

cost-plus approach to design

Concurrent Design (2)

Advantages of concurrent design Shorter time to market Better product quality Lower design costs Lower production costs Fewer product and process changes after

product is introduced

Design for the Environment

Design products that Can be recycled Can be made from recycled material Are durable and easy to fix Have minimal packaging Use less energy, use alternative energy sources, or

use renewable energy Do not include harmful materials

Extended producer responsibility holds companies responsible for their product even

after its useful life is over

Design for the Environment (2)

Recycled Parts in a BMW

Computer-Aided Design & Engineering

Computer-aided design (CAD): use of computer software to design products

Computer-aided engineering (CAE): use of computer software to evaluate and improve product designs

Specialized CAD/CAE software is used by architects and landscape architects

Advantages of CAD and CAE

Marketing: Firms can design better products and get them to market faster

Finance: CAD and CAE reduce design costs, production costs, and the number of major product and process changes needed

Operations: It is easier to make the product and to maintain good quality.

General: Easier to use concurrent engineering, value engineering, design for manufacturing, and to involve suppliers in product design.

Data Flow in Manufacturing Technology

Computeraided design (CAD)

Computeraidedengineering(CAE)

Productdesigndata Final

design?

No

YesFinaldesigndata

Computeraidedprocessplanning(CAPP)

Manufacturinginstructions

Computeraidedmanufacturing(CAM)

Finishedgoods

Rapid Prototyping

The ability to build product or part models quickly for form design, functional design, or production design A series of models are tested, revised, and

discarded Models can be made of plastic, nylon, metal, or

ceramics. Reduces design costs More designs can be considered better designs New products can be introduced more quickly

Performance SpecificationsPerformance Specifications

Service

Delivery SpecificationsDelivery Specifications

Physical Physical itemsitems

Sensual Sensual benefitsbenefits

Psychological Psychological benefitsbenefits

Design SpecificationsDesign Specifications Service Provider

Customer

Customer Customer requirementsrequirements

Customer Customer expectationsexpectations

ActivitiesActivities FacilityFacility Provider Provider skillsskills

Cost and time Cost and time estimatesestimates

ScheduleSchedule DeliverablesDeliverables LocationLocation

Service ConceptService Concept Service PackageService Package

Desired service Desired service experienceexperience

Targeted Targeted customercustomer

Service Service Design Design ProcessProcess

Service Design Process

Service concept purpose of a service; it defines target market and

customer experience Service package

mixture of physical items, sensual benefits, and psychological benefits

Service specifications performance specifications design specifications delivery specifications

See Table 5.2

Design Decision

High-Contact Service Low-Contact Service

High v. Low Contact High v. Low Contact ServicesServices

Facility Facility locationlocation

Convenient to Convenient to customercustomer

Near labor or transportation source

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210

Facility layout

Must look presentable, accommodate customer needs, and facilitate interaction with customer

Designed for efficiency

Design Decision

High-Contact Service Low-Contact Service

Quality Quality controlcontrol

More variable since More variable since customer is involved in customer is involved in process; customer process; customer expectations and expectations and perceptions of quality perceptions of quality may differ; customer may differ; customer present when defects present when defects occuroccur

Measured against established standards; testing and rework possible to correct defects

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210

Capacity Excess capacity required to handle peaks in demand

Planned for average demand

High v. Low Contact High v. Low Contact Services (cont.)Services (cont.)

Design Decision

High-Contact Service Low-Contact Service

Worker skillsWorker skills Must be able to Must be able to interact well with interact well with customers and use customers and use judgment in decision judgment in decision makingmaking

Technical skills

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210

Scheduling Must accommodate customer schedule

Customer concerned only with completion date

High v. Low Contact High v. Low Contact Services (cont.)Services (cont.)

Design Decision

High-Contact Service Low-Contact Service

High v. Low Contact High v. Low Contact Services (cont.)Services (cont.)

Service Service processprocess

Mostly front-room Mostly front-room activities; service may activities; service may change during delivery change during delivery in response to in response to customercustomer

Mostly back-room activities; planned and executed with minimal interference

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210

Service package

Varies with customer; includes environment as well as actual service

Fixed, less extensive

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.

Approaches to Service DesignApproaches to Service Design

Design for efficiency:Design for efficiency: High standardizationHigh standardization Limited varietyLimited variety Automation may be usedAutomation may be used High-volume services purchase at low cost.High-volume services purchase at low cost.

Customer involvement in producing the serviceCustomer involvement in producing the service Self-service salad barSelf-service salad bar

High customer attention: pure services, high-end hotels High customer attention: pure services, high-end hotels and retailersand retailers

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.

Quality FunctionQuality FunctionDeployment (QFD)Deployment (QFD)

Translates voice of customer into Translates voice of customer into technical design requirementstechnical design requirements

Displays requirements in matrix diagramsDisplays requirements in matrix diagrams first matrix called “house of quality”first matrix called “house of quality” series of connected housesseries of connected houses

House of QualityHouse of Quality

Trade-off matrix

Design characteristics

Customer requirements

Target values

Relationship matrix

Competitive assessment

Imp

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11 22

33

44

55

66

Competitive Competitive Assessment of Assessment of Customer Customer RequirementsRequirements

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Competitive Assessment

Customer RequirementsCustomer Requirements 1 2 3 4 5

Presses quickly 9 B A XX

Removes wrinkles 8 AB XX

Doesn’t stick to fabric 6 XX BA

Provides enough steam 8 AB XX

Doesn’t spot fabric 6 XX AB

Doesn’t scorch fabric 9 A XXB

Heats quickly 6 XX B A

Automatic shut-off 3 ABXX

Quick cool-down 3 XX A B

Doesn’t break when dropped 5 AB XX

Doesn’t burn when touched 5 AB XX

Not too heavy 8 XX A B

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Customer RequirementsCustomer Requirements

Presses quickly - - + + + -

Removes wrinkles + + + + +

Doesn’t stick to fabric - + + + +

Provides enough steam + + + +

Doesn’t spot fabric + - - -

Doesn’t scorch fabric + + + - +

Heats quickly - - + -

Automatic shut-off +

Quick cool-down - - + +

Doesn’t break when dropped + + + +

Doesn’t burn when touched + + + +

Not too heavy + - - - + -

Iro

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From Customer From Customer RequirementsRequirementsto Design to Design CharacteristicsCharacteristics

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--

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Tradeoff MatrixTradeoff Matrix

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Units of measure ft-lb lb in. cm ty ea mm oz/s sec sec Y/N Y/N

Iron A 3 1.4 8x4 2 SS 27 15 0.5 45 500 N Y

Iron B 4 1.2 8x4 1 MG 27 15 0.3 35 350 N Y

Our Iron (X) 2 1.7 9x5 4 T 35 15 0.7 50 600 N Y

Estimated impact 3 4 4 4 5 4 3 2 5 5 3 0

Estimated cost 3 3 3 3 4 3 3 3 4 4 5 2

Targets 1.2 8x5 3 SS 30 30 500

Design changes * * * * * * *

Ob

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Targeted Changes in Targeted Changes in DesignDesign

SS = SilverstoneMG = MirorrglideT = Titanium

CompletedCompletedHouse of QualityHouse of Quality

A Series of Connected A Series of Connected QFD HousesQFD Houses

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House House of of

qualityquality

Product characteristics

A-1P

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Parts Parts deploymentdeployment

Part characteristics

A-2

Par

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Process characteristics

A-3

Pro

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Operating Operating requirementsrequirements

Operations

A-4

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.

Benefits of QFDBenefits of QFD

Promotes better understanding of customer Promotes better understanding of customer demandsdemands

Promotes better understanding of design Promotes better understanding of design interactionsinteractions

Involves manufacturing in design processInvolves manufacturing in design process Breaks down barriers between functions and Breaks down barriers between functions and

departmentsdepartments Provides documentation of design processProvides documentation of design process