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SYSTEMS DESIGN
PART
THREE•Chapter Four Product and ServiceDesign
•Chapter Four Supplement Reliability
•Chapter Five Capacity Planning
•Chapter Five Supplement DecisionTheory
•Chapter Six Process Design and FacilityLayout
•Chapter Six Supplement Linear
Programming•Chapter Seven Design of Work Systems
•Chapter Seven SupplementLearning Curves
•Chapter Eight Location Planning andAnalysis
•Chapter Eight Supplement TheTransportation Model
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• Major factors in strategy – Cost
– Quality
–Time-to-market
– Customer satisfaction
– Competitive advantage
Product and Service Design
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Trends in Product & Service Design
• Increased emphasis on or attention to: – Customer satisfaction
– Reducing time to introduce new productor service
– Reducing time to produce product
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Design (Cont’d)
• Increased emphasis on or attention to: – The organization’s capabilities to produce or
deliver the item
– Environmental concerns
– Designing products & services that are “user friendly”
– Designing products that use less material
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•Translate customer wants and needs intoproduct and service requirements
• Refine existing products and services
• Develop new products and services
• Formulate quality goals
• Formulate cost targets
• Construct and test prototypes
• Document specifications
Product or Service Design Activities
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Design
• Be competitive
• Increase business growth & profits
• Avoid downsizing with development of
new products
• Improve product quality
• Achieve cost reductions in labor or materials
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• Development time and cost• Product or service cost
• Resulting product or service quality
• Capability to produce or deliver a givenproduct or service
Service Design
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• Taking into account the capabilities of
the organization in designing goods and
services
Design For Operations
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Kano Model
Customer Needs
C u s t o m e r
S a t i s f a c t i
Excitement
ExpectedMust Have
The Kano Model
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• Internal – Employees
– Marketing department
– R&D department• External
– Customers (QFD)
– Competitors
– Suppliers
and Services
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• Quality Function Deployment – Voice of the customer
– House of quality
Quality Function Deployment
QFD: An approach that integratesthe “voice of the customer” into theproduct and service developmentprocess.
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Research & Development (R&D)
• Organized efforts to increase scientificknowledge 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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• Legal – FDA, OSHA, IRS
– Product liability
– Uniform commercial code
• Ethical – Releasing products with defects
• Environmental
– EPA
Issues
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Product Design
• Product Life Cycles
• Robust Design
• Concurrent Engineering
• Computer-Aided Design
• Modular Design
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Life Cycles of Products or Services
Time
Incubation
Growth
Maturity
Saturation
Decline
D e m a
n d
Figure 4-2
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(Cont’d)
• 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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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 degree of customization
– Delayed differentiation
– Modular design
Mass Customization
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Delayed differentiation is apostponement tactic
– Producing but not quite completing a
product or service until customer preferences or specifications are known
Delayed Differentiation
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Modular Design
Modular design is a form of standardization inwhich component parts are subdivided intomodules 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 : The ability of a product, part, or system to perform its intended function under
a prescribed set of conditions
• Failure: Situation in which a product, part, or system does not perform as intended
• Normal operating conditions: The set of
conditions under which an item’s reliability isspecified
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Improving Reliability
• Component design• Production/assembly techniques
• Testing
• Redundancy/backup
• Preventive maintenance procedures
• User education
• System design
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Robust Design: Design that results inproducts or services that can function
over a broad range of conditions
Robust Design
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Design
• Design a robust product – Insensitive to environmental factors either in
manufacturing or in use.
• Central feature is Parameter Design.
• Determines: – factors that are controllable and those not controllable
– their optimal levels relative to major product advances
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Designing for Manufacturing
Beyond the overall objective to achieve customer
satisfaction while making a reasonable profit is:
Design for Manufacturing(DFM)
The designers’ consideration of theorganization’s manufacturing capabilities when
designing a product.
The more general term design for operations encompasses services as well as manufacturing
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Concurrent Engineering
Concurrent engineering
is the bringing together
of engineering design and
manufacturing personnel
early in the design phase.
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“Over the Wall” Approach
Desig
nMfg
New
Product
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Computer-Aided Design
• Computer-Aided Design (CAD) is productdesign using computer graphics.
– increases productivity of designers, 3 to 10 times
– creates a database for manufacturing informationon product specifications
– provides possibility of engineering and cost
analysis on proposed designs
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Manufacturability
• Manufacturability is the ease of fabrication
and/or assembly which is important for:
– Cost
– Productivity
– Quality
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• Recycling: recovering materials for future use
• Recycling reasons
– Cost savings – Environment concerns
– Environment regulations
Recycling
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• 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
Differences Between Product
and Service Design
Service Variability & Customer
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Service Variability & Customer
Influence Service Design
Variability
in
Service
Require-ments
Figure 4-3
Degree of Contact with Customer
High
Moderate
Low
None
None Low Moderate High
Telephone
Purchase
Dept. Store
Purchase
Customized
Clothing
Internet
Purchase
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The House of Quality
Correlation
matrix
Design
requirements
Customer
require-
ments
Competitive
assessment
Relationship
matrix
Specifications
or
target values
Figure 4-5
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Customer
Requirements
I m p o r t a n c e t o C u s t .
Easy to close
Stays open on a hill
Easy to open
Doesn’t leak in rain
No road noise
Importance weighting
Engineering
Characteristics
Energyneede d
toclosedoor
Checkforce
onlevel
ground
Energyneede d
toopendoor
Waterresistance
10 6 6 9 2 3
7
5
3
3
2
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 = 1Target values
Reduceene
rgy
levelto7.5
ft/l
b
Reduceforce
to9lb.
Reduceene
rgy
to7.5ft/lb.
Maintain
currentlevel
Technical evaluation
(5 is best)
54321
B
A
X
BA
X B
A
X
B
X
A
BXABA
X
Doorseal
resistance
Accoust.Trans.
Window
Maintain
currentlevel
Maintain
currentlevel
House of Quality Example
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• Shorten time-to-market• Package products and services
• Increase emphasis on component
commonality• Use multiple-use platforms
• Consider tactics for mass customization
• Look for continual improvement
Operations Strategy