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Transcript of Design of Goods and Services Chapter 5. Designing Goods Form design: Appearance and other sensory...
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Design of Goods and Services
Chapter 5
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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)
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Form Design: How the Product Looks, Etc.
Ipod Nano 2006 Toyota Camry
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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
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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
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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
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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?
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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
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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
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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
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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)
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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
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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.
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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?)
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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
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Design Team
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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
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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
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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
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Design for the Environment (2)
Recycled Parts in a BMW
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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
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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.
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Data Flow in Manufacturing Technology
Computeraided design (CAD)
Computeraidedengineering(CAE)
Productdesigndata Final
design?
No
YesFinaldesigndata
Computeraidedprocessplanning(CAPP)
Manufacturinginstructions
Computeraidedmanufacturing(CAM)
Finishedgoods
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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
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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
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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
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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
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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.)
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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.)
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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
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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
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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
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House of QualityHouse of Quality
Trade-off matrix
Design characteristics
Customer requirements
Target values
Relationship matrix
Competitive assessment
Imp
ort
ance
11 22
33
44
55
66
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Competitive Competitive Assessment of Assessment of Customer Customer RequirementsRequirements
Iro
ns
wel
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asy
and
sa
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o u
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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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En
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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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Tradeoff MatrixTradeoff Matrix
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En
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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
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SS = SilverstoneMG = MirorrglideT = Titanium
CompletedCompletedHouse of QualityHouse of Quality
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A Series of Connected A Series of Connected QFD HousesQFD Houses
Cu
sto
mer
re
qu
irem
ents
House House of of
qualityquality
Product characteristics
A-1P
rod
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ch
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teri
stic
s
Parts Parts deploymentdeployment
Part characteristics
A-2
Par
t ch
arac
teri
stic
sProcess Process planningplanning
Process characteristics
A-3
Pro
cess
ch
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teri
stic
s
Operating Operating requirementsrequirements
Operations
A-4
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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