Irwin/McGraw-Hill 1
The Product Design Process
Concept Development
Product Planning
Product/Process Engineering
Pilot Production/Ramp-Up
2
Irwin/McGraw-Hill 2
How do you determine what thecustomer 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
4
House of Quality
X
X
X
X
X
Correlation:Strong positive
Positive
NegativeStrong negative
X*
Competitive evaluation
X = UsA = Comp. AB = Comp. B(5 is best)
1 2 3 4 5
X AB
X AB
XAB
A X B
X A B
Relationships:
Strong = 9
Medium = 3
Small = 1
Technical evaluation(5 is best)
54321
B
A
X
BAX B
AX
B
X
A
BXABA
X
Engineering Characteristics
Ener
gy n
eede
d to
clo
se d
oor
Che
ck fo
rce
on
leve
l gro
und
Ener
gy n
eede
d to
ope
n do
or
Wat
er re
sist
ance
Doo
r sea
l re
sist
ance
Acc
oust
. Tra
ns.
Win
dow
Target values
Importance weighting 10 6 6 9 2 3
Red
uce
ener
gy
leve
l to
7.5
ft/lb
Red
uce
forc
eto
9 lb
.
Red
uce
ener
gy to
7.5
ft/lb
.
Mai
ntai
ncu
rren
t lev
el
Mai
ntai
ncu
rren
t lev
el
Mai
ntai
ncu
rren
t lev
el
Importance to Cust.Customer Requirements
Easy to close
Stays open on a hill
Easy to open
Doesn’t leak in rain
No road noise
7
5
3
3
2
1 2
3
5
74
6
5
Irwin/McGraw-Hill 4
Value Analysis/Value Engineering Simplification of products and processes Cost reduction and avoidance
Design for Manufacturability Traditional approach Concurrent engineering
Design for Assembly Global Product Design
Product Design
6
Irwin/McGraw-Hill 5
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
3
Phased versus Overlapping Approach in New Product Development
Design information processing
Activity 1
Activity 2
Activity 3
Information batch size
Single batchtransfer of
info
Phased Approach
Start of Activity 2
Start of Activity 3
Elapsed time
Design information processing
Activity 1
Activity 2
Small batch transfer of info Overlapping Approach
Start of Activity 2
Start of Activity 3
Elapsed time
____________________________________________________________ “New Product Development: The New Time Wars” Joe Blackburn, 1991. 3a
Irwin/McGraw-Hill 7
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
7
Irwin/McGraw-Hill 8
Process Flow Structures
Job shop
Batch
Assembly Line
Continuous Flow
8
IV.Continuous
Flow
III.Assembly
Line
II.Batch
I.Job
Shop
LowVolumeOne of a
Kind
MultipleProducts,
LowVolume
FewMajor
Products,HigherVolume
HighVolume,
HighStandard-
izationCommercial
Printer French Restaurant
Flexibility (High)Unit Cost (High)
Flexibility (Low)Unit Cost (Low)
HeavyEquipment
Coffee Shop
AutomobileAssembly
Burger King
SugarRefinery
Source: Modified from Robert Hayes and Steven Wheelwright, Restoring Our Competitive Edge: Competing through Manufacturing (New York: John Wiley & Sons, 1984). p. 209.
Exhibit 5.10, p.168: The Product - Process Matrix
9
Irwin/McGraw-Hill 10
Virtual Factory
Shift from centralized production to ....
... an integrated network of capabilities
10
Irwin/McGraw-Hill 11
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
11
Assembly (Gozinto) Chart
A-2SA-2
4
5
6
7
Lockring
Spacer, detent spring
Rivets (2)
Spring-detent
A-5Component/Assembly Operation
Inspection
Exhibit 4.13
©The McGraw-Hill Companies, Inc., 1998 12
Assemble Drawing
____________________________________________________________ Operations Management, Roger Schroeder, 1985 12b
Irwin/McGraw-Hill 14
Example: Process Flow Chart
InspectMaterial for
Defects
Return toSupplier for
Credit
Buffer: MaterialReceived
FromSupplier Defects
Found?
Yes
No, Continue…
13
Irwin/McGraw-Hill 15
Goods versus Services
Pencil Manufacturer• tangible• storable• easy quality assessment• centralized production• long lead times• capital intensive• low customer contact• production separate from consumption
McDonald’s
Psychologist• intangible • perishable• difficult quality assessment• dispersed production• short lead times• labor intensity• high customer contact• production concurrent with consumption
goods services
47
Irwin/McGraw-Hill 16
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).
48
Irwin/McGraw-Hill 17
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.
49
Service Types Facilities-based vs. Field-based services
Internal Services - - External Services
Internal Supplier
Internal Supplier
InternalCustomer
ExternalCustomer
50
Irwin/McGraw-Hill 19
Service Strategy: Focus and AdvantagePerformance Priorities
Treatment of the customer
Speed and convenience of service delivery
Price
Variety
Unique skills that constitute the service offering
51
Irwin/McGraw-Hill 20
Classifications of Services
Amount of customer contact
Low versus High
Standard or Custom Service The mix of tangible and intangible goods
52
Irwin/McGraw-Hill 21
Service-System Design MatrixExhibit 6.7
Mail contact
Face-to-faceloose specs
Face-to-facetight specs
PhoneContact
Face-to-facetotal
customization
Buffered core (none)
Permeable system (some)
Reactivesystem (much)
High
LowHigh
Low
Degree of customer/server contact
On-sitetechnology
SalesOpportunity
ProductionEfficiency
53
Irwin/McGraw-Hill 22
Service BlueprintingBrushshoes
Applypolish
Failpoint
BuffCollect
payment
Cleanshoes Materials
(e.g., polish, cloth)
Select andpurchasesupplies
Standardexecution time
2 minutes
Total acceptableexecution time
5 minutes
30secs
30secs
45secs
15secs
Wrongcolor wax
Seen bycustomer 45
secs
Line ofvisibility
Not seen bycustomer butnecessary toperformance
55
Irwin/McGraw-Hill 23
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)
Irwin/McGraw-Hill 24
Service Recovery (Just in case)
A real-time response to a service failure.
Blueprinting can guide recovery planning (fail points).
Recovery planning involves training front-line workers to respond to such situations as overbooking, lost luggage, or a bad meal.
56
Irwin/McGraw-Hill 25
Service Recovery (Just in case)
“Empowerment can only take place when every associate can personally assure customer satisfaction every time!”
Gary Johnson
Irwin/McGraw-Hill 26
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?
Irwin/McGraw-Hill 27
Service Recovery - How it Works
Process Identification
Incidents
Remedies
Cost of Incident
Measurement of Frequency
CustomerIdentification
MissionStatement
Cost ofPoor Quality
Irwin/McGraw-Hill 28
Service Failsafing: Poka-Yokes
Keeping a mistake from becoming a service defect.
57
A proactive approach
Irwin/McGraw-Hill 29
Service Failsafing: Poka-Yokes
58
Irwin/McGraw-Hill 30
Three Contrasting Service Designs
The production line approach
The self-service approach
The personal attention approach
59
Irwin/McGraw-Hill 31
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
60
Irwin/McGraw-Hill 32
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
61