4-1 Product and Service Design

Operations Management

William J. Stevenson

8th edition

4-2 Product and Service Design

Product Design

Product Design : Arrangement of elements or parts that collectively form a product.

Form Design : Appearance , aesthetics , dimensions and volume. Functional Design: Performance of the product.

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Product and Service Design

Major factors in design strategy

Cost Quality Time-to-market Customer satisfaction Competitive advantage

Product and service design or redesign should be closely tied to an organizations strategy

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Reasons for Product or Service Design

Competition Social and demographic Profits / Growth Technological Reasons

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Objectives of Product and Service Design

Main focus

Customer satisfaction

Secondary focus

Function of product/service Cost/profit Quality Appearance Ease of production/assembly Ease of maintenance/service

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Characteristics of a Good Product Design

Function or Performance. Appearance or Aesthetics Reliability Maintainability Simplification Specifications Safety

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Approaches to a Product Design

Designing for the customer. Designing for Manufacture and Assembly(DFMA) Designing for ease of Manufacturability. Designing for Quality Designing for ergonomics Designing for Environmental Protection Design for Recycling Design for Disassembly(DFD) Design for Mass Customisation

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Other Issues in Product and Service Design

Product/service life cycles How much standardization Product/service reliability Range of operating conditions

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Life Cycles of Products or Services

Figure 4.1

Saturation

Maturity

Deman d

Decline Growth

Introduction

Time

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Standardization

Standardization

Extent to which there is an absence of variety in a product, service or process

Standardized products are immediately available to customers

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Advantages of Standardization

Fewer parts to deal with in inventory & manufacturing Design costs are generally lower

Reduced training costs and time

More routine purchasing, handling, and inspection procedures

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Advantages of Standardization (Contd)

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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Mass Customization

Mass customization:

A strategy of producing standardized goods or services, but incorporating some degree degree of customization Delayed differentiation Modular design

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Delayed Differentiation

Delayed differentiation is a postponement tactic

Producing but not quite completing a product or service until customer preferences or specifications are known

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Modular Design

Modular design is a form of standardization in which component parts are subdivided into modules 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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Phases in Product Development Process

1. 2. 3. 4. 5. 6. 7. 8. 9. Idea generation Feasibility analysis Product specifications Process specifications Prototype development Design review Market test Product introduction Follow-up evaluation

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Idea Generation
Supply chain based

Ideas

Competitor based

Research based

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Reverse Engineering

Reverse engineering is the dismantling and inspecting of a competitors product to discover product improvements.

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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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Concurrent Engineering

Concurrent engineering is the bringing together of engineering design and manufacturing personnel early in the design phase.

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Computer-Aided Design

Computer-Aided Design (CAD) is product design using computer graphics.

increases productivity of designers, 3 to 10 times

creates a database for manufacturing information on product specifications provides possibility of engineering and cost analysis on proposed designs

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Service Design

Service is an act Service delivery system

Facilities Processes Skills

Many services are bundled with products

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Service Design

Service design involves

The physical resources needed The goods that are purchased or consumed by the customer Explicit services Implicit services

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Service Design

Service

Something that is done to or for a customer

Service delivery system

The facilities, processes, and skills needed to provide a service The combination of goods and services provided to a customer The physical resources needed to perform the service

Product bundle

Service package

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Differences Between Product and Service Design

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

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Phases in Service Design

1.
2. 3. 4.

5.

Conceptualize Identify service package components Determine performance specifications Translate performance specifications into design specifications Translate design specifications into delivery specifications

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Characteristics of Well Designed Service Systems

1.
2. 3.

4.
5. 6.

7.
8. 9.

Consistent with the organization mission User friendly Robust Easy to sustain Cost effective Value to customers Effective linkages between back operations Single unifying theme Ensure reliability and high quality

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