DOM 511: Operations Management Practice

Design of Products & Services

Lecture Outline
Design Process Reducing Time-to-Market Improving Quality of Design Special Considerations in Service Design

Design Process
Effective design can provide a competitive edge

matches product or service characteristics with customer requirements ensures that customer requirements are met in the simplest and least costly manner reduces time required to design a new product or service minimizes revisions necessary to make a design workable

Design Process (cont.)

Product design

Service design

defines appearance of product sets standards for performance specifies which materials are to be used determines dimensions and tolerances

specifies what physical items, sensual benefits, and psychological benefits customer is to receive from service defines environment in which service will take place

Design Process (cont.)

Idea generation
Product or service concept

Feasibility study

Performance specifications

Suppliers R&D

Customers

Form design
Revising and testing prototypes

Marketing

Competitors

Functional design New product or service launch

Final design & process plans Design specifications

Production design
Manufacturing or delivery specifications

Pilot run and final tests

Idea Generation Sources

Companys own R&D department Customer complaints or suggestions Marketing research Suppliers Salespersons in the field Factory workers New technological developments Competitors

Idea Generation Sources (cont.)

Perceptual Maps
Visual comparison of customer perceptions

Benchmarking
Comparing product/service against best-in-class

Reverse engineering
Dismantling competitors product to improve your own product

Feasibility Study
Market analysis Economic analysis Technical/strategic analysis Performance specifications

Rapid Prototyping
Build a prototype

form design functional design production design

Test prototype Revise design Retest

Form and Functional Design

Form Design

how product will look?

Functional Design

reliability maintainability usability

Computing Reliability

Components in series 0.90 0.90 0.90 x 0.90 = 0.81

Computing Reliability
Components in parallel
0.90
R2

0.95
R1

0.95 + 0.90(1-0.95) = 0.995

System Reliability
0.90

0.98

0.92

0.98

0.98

0.92+(1-0.92)(0.90)=0.99

0.98

0.98 x 0.99 x 0.98 = 0.951

System Availability (cont.)

PROVIDER A B C MTBF (HR) 60 36 24 MTTR (HR) 4.0 2.0 1.0

SAA = 60 / (60 + 4) = SAB = 36 / (36 + 2) = SAC = 24 / (24 + 1) =

Usability
Ease of use of a product or service

ease of learning ease of use ease of remembering how to use frequency and severity of errors user satisfaction with experience

Production Design
Simplification

reducing number of parts, assemblies, or options in a product

Standardization

using commonly available and interchangeable parts

combining standardized building blocks, or modules, to create unique finished products

Modularity

Final Design and Process Plans

Final design

Process plans

detailed drawings and specifications for new product or service

workable instructions

necessary equipment and tooling component sourcing recommendations job descriptions and procedures computer programs for automated machines

Reducing Time-toMarket
Establish multifunctional design teams Make design decisions concurrently rather than sequentially Design for manufacture and assembly Use technology in the design process Engage in collaborative design

Design Team

Concurrent Design
A new approach to design that involves simultaneous design of products and processes by design teams Improves quality of early design decisions Involves suppliers Incorporates production process Uses a price-minus system Scheduling and management can be complex as tasks are done in parallel

Design for Manufacture and Assembly (DFMA)

Design for manufacture

Design for assembly

a set of procedures for:

design a product for easy and economical production

reducing number of parts in an assembly evaluating methods of assembly determining an assembly sequence

DFM Guidelines
Minimize number of parts and subassemblies Avoid tools, separate fasteners, and adjustments Use standard parts when possible and repeatable, well-understood processes Design parts for many uses, and modules that can be combined in different ways Design for ease of assembly, minimal handling, and proper presentation Allow for efficient and adequate testing and replacement of parts

Technology in the Design Process

Computer Aided Design (CAD)

assists in creation, modification, and analysis of a design includes

computer-aided engineering (CAE)

tests and analyzes designs on computer screen

computer-aided manufacturing (CAM)

ultimate design-to-manufacture connection

Collaborative Design
A software system for collaborative design and development among trading partners Follows life cycle of the product Accelerates product development, helps to resolve product launch issues, and improves quality of the design Designers can

conduct virtual review sessions test what if scenarios assign and track design issues communicate with multiple tiers of suppliers create, store, and manage project documents

Improving Quality of Design

Review designs to prevent failures and ensure value Design for environment Measure design quality Use quality function deployment Design for robustness

Design Review
Failure mode and effects analysis (FMEA)

a systematic method of analyzing product failures a visual method for analyzing interrelationships among failures helps eliminate unnecessary features and functions

Fault tree analysis (FTA)

Value analysis (VA)

Value analysis (VA)

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?

Design for Environment

Design for environment

designing a product from material that can be recycled design from recycled material design for ease of repair minimize packaging minimize material and energy used during manufacture, consumption and disposal

Extended producer responsibility

holds companies responsible for their product even after its useful life

Measure Design Quality

% of revenue from new products or services % of products capturing 50% or more of market % of process initiatives yielding a 50% or more improvement in effectiveness % of suppliers engaged in collaborative design % of parts that can be recycled % of parts used in multiple products % of parts with no engineering change orders Average number of components per product Things gone wrong (TGW)

Quality Function Deployment (QFD)

Translates voice of customer into technical design requirements Displays requirements in matrix diagrams

first matrix called house of quality series of connected houses

House of Quality
Importance 5

Trade-off matrix
3 Design characteristics 4 Relationship matrix 2 Competitive assessment

1 Customer requirements

Target values

Benefits of QFD
Promotes better understanding of customer demands Promotes better understanding of design interactions Involves manufacturing in design process Breaks down barriers between functions and departments Provides documentation of design process

Design for Robustness

Robust product

designed to withstand variations in environmental and operating conditions

Robust design

yields a product or service designed to withstand variations

design parameters such as material used, dimensions, and form of processing users control (length of use, maintenance, settings

Controllable factors

Uncontrollable factors

Tolerance and Consistency

Tolerance

allowable ranges of variation in the dimension of a part

consistent errors are easier to correct than random errors parts within tolerances may yield assemblies that are not within limits consumers prefer product characteristics near their ideal values

Consistency

Special Considerations in Service Design

Services are intangible Service output is variable Service have higher customer contact Services are perishable Service inseparable from delivery Services tend to be decentralized and dispersed Services are consumed more often than products Services can be easily emulated

Service Design Process (cont.)

Service concept

purpose of a service; it defines target market and customer experience mixture of physical items, sensual benefits, and psychological benefits

Service package

Service specifications

performance specifications design specifications delivery specifications

High v. Low Contact Services

Design Decision High-Contact Service Low-Contact Service
Near labor or transportation source

Facility Convenient to location customer Facility layout

Must look presentable, Designed for accommodate efficiency customer needs, and facilitate interaction with customer

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210

High v. Low Contact Services (cont.)

Design Decision
Quality control

High-Contact Service

Low-Contact Service

More variable since Measured against customer is involved in established process; customer standards; testing expectations and perceptions of quality and rework possible may differ; customer to correct defects present when defects occur

Capacity

Excess capacity required to handle peaks in demand

Planned for average demand

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210

High v. Low Contact Services (cont.)

Design Decision
Worker skills

High-Contact Service
Must be able to interact well with customers and use judgment in decision making Must accommodate customer schedule

Low-Contact Service
Technical skills

Scheduling

Customer concerned only with completion date

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210

High v. Low Contact Services (cont.)

Design Decision
Service process

High-Contact Service

Low-Contact Service

Mostly front-room Mostly backactivities; service may room activities; change during delivery planned and in response to customer executed with minimal interference Varies with customer; includes environment as well as actual service Fixed, less extensive

Service package

Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Competitive Advantage (New York:McGraw-Hill, 2001), p. 210