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4-1 Product and Service Design

HAPTER

4

Product andService Design

McGraw-Hill/Irwin

Operations Management, Eighth Edition, by William J. StevensonCopyright 2005 by he M!"ra#$%ill Companies, &n!. 'll rights

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4-2 Product and Service Design

Major factors in design strategy Cost

Quality

Time-to-market Customer satisfaction

Competitive advantage

Product and Service DesignProduct and Service Design

Product and service design or redesign should be

closely tied to an organizations strategy

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4-3 Product and Service Design

Translate customer wants and needs intoproduct and service requirements

Refine existing products and services

Develop new products and services ormulate quality goals

ormulate cost targets

Construct and test prototypes

Document specifications

Product or Service Design ActivitiesProduct or Service Design Activities

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4-4 Product and Service Design

Reasons for Product or Service DesignReasons for Product or Service Design

!conomic

"ocial and demograp#ic

$olitical% lia&ility% or legal

Competitive

Tec#nological

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4-5 Product and Service Design

Objectives of Product and Service DesignObjectives of Product and Service Design

Main focus Customer satisfaction

"econdary focus

unction of product'service Cost'profit

Quality

(ppearance !ase of production'assem&ly

!ase of maintenance'service

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4-6 Product and Service Design

)egal D(% *"+(

$roduct lia&ility

,niform commercial code !t#ical

Releasing products wit# defects

!nvironmental !$(

Legal, Etical, and Environ!ental "ssuesLegal, Etical, and Environ!ental "ssues

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4-7 Product and Service Design

Regulations # Legal ConsiderationsRegulations # Legal Considerations

Product Liability - ( manufacturer is lia&le for

any injuries or damages caused &y a faulty

product Uniform Commercial Code - $roducts carry an

implication of merc#anta&ility and fitness

S

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4-8 Product and Service Design

Designers Adere to $uidelinesDesigners Adere to $uidelines

$roduce designs t#at are consistent wit# t#e

goals of t#e company

.ive customers t#e value t#ey expect

Make #ealt# and safety a primary concern

Consider potential #arm to t#e environment

4 9 P d t d S i D i

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4-9 Product and Service Design

Oter "ssues in Product and Service DesignOter "ssues in Product and Service Design

$roduct'service life cycles +ow muc# standardi/ation

$roduct'service relia&ility

Range of operating conditions

4 10 P d t d S i D i

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4-10 Product and Service Design

Life C%cles of Products or ServicesLife C%cles of Products or Services

Time

Introduction

Growth

Maturity

Saturation

Decline

Demand

Figure 4.1

4 11 P d t d S i D i

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4-11 Product and Service Design

Standardi&ationStandardi&ation

"tandardi/ation !xtent to w#ic# t#ere is an a&sence of variety

in a product% service or process

"tandardi/ed products are immediatelyavaila&le to customers

4 12 P d t d S i D i

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4-12 Product and Service Design

0 Mass customi/ation1 ( strategy of producing standardi/ed goods

or services% &ut incorporating some degree

degree of customi/ation Delayed differentiation

Modular design

'ass Custo!i&ation'ass Custo!i&ation

4 13 Product and Service Design

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4-13 Product and Service Design

0 Delayed differentiation is a postponement

tactic

$roducing &ut not quite completing a productor service until customer preferences or

specifications are known

Dela%ed Di(erentiationDela%ed Di(erentiation

4 14 Product and Service Design

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4-14 Product and Service Design

'odular Design'odular Design

Modular design is a form of standardi/ation inw#ic# component parts are su&divided intomodules t#at are easily replaced orinterc#anged 2t allows1

easier diagnosis and remedy of failures

easier repair and replacement

simplification of manufacturing and assem&ly

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4 16 Product and Service Design

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4-16 Product and Service Design

Product DesignProduct Design

$roduct )ife Cycles Ro&ust Design

Concurrent !ngineering

Computer-(ided Design

Modular Design

4 17 Product and Service Design

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4-17 Product and Service Design

Ro&ust Design1 Design t#at results in

products or services t#at can function over

a &road range of conditions

Robust DesignRobust Design

4 18 Product and Service Design

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4-18 Product and Service Design

Reverse EngineeringReverse Engineering

Reverse engineeringis the

dismantling and inspecting

of a competitors product to discoverproduct improvements.

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4-24 Product and Service Design

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4 24 Product and Service Design

Probability that the product or system )ill& Function )hen activated

Function 'or a given length o' time

*ndependent events +vents )hose occurrence or

nonoccurrence do not in'luence each other

"edundancy !he use o' bac#up components to increase

reliability

"eliability is a Probability"eliability is a Probability

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4-26 Product and Service Design

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g

"ule -"ule -

.90

.80

76 < =5-76>?86 9 78,amp 1

,amp - bac#up

4-27 Product and Service Design

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g

"ule 0"ule 0

.90

.80

.70

121.351.651.78 9 .334

1 Pall 'ail

,amp 1

,amp - bac#up 'or ,amp1

,amp 0 bac#up 'or ,amp -

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4-29 Product and Service Design

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g

+:ample %1 %olution+:ample %1 %olution

!he system can be reduced to a series o' threecomponents

.98 .90+.90(1.90! .95+.92(1.95!

.98 # .99 # .99$ % .9$$

4-30 Product and Service Design

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g

*mproving "eliability*mproving "eliability

Component design Production/assembly techniues

!esting

"edundancy/bac#ups Preventive maintenance procedures

$ser education

%ystem design