Product and Service Design

1
Chapter 4

• Product and Service Design

2
Reasons for Product or Service Design

• Be competitive
• Increase business growth profits
• Avoid downsizing with development of new products
• Improve product quality, reduce labor and
  material cost (if its a re-design)
• To open a new business

3
Challenges in Product Service Design

• Increasing competitive pressure to
• Improve customer satisfaction
• Increase user-friendliness
• Reduce time to introduce new product or service
• Reducing time to produce
• Increasing environmental concerns
• Waste reduction, recycling
• Less material, less packaging

4
Manufacturing Product Development

• Idea Generation/Concept Development
• Technical and Economic feasibility
• Preliminary Design and Planning
• Detailed Engineering
• Process Selection Planning (Chap. 5)
• Pilot Production and Ramp-Up

? These activities need not be done sequentially.
In particular, 12, 34 can be done
simultaneously
CONCURRENT ENGINEERING
5
Guidelines for Manuf. Product Design

• Customer needs should be the focus
• Competitor products should be analyzed
• Feasibility analysis based on forecast sales,
  investment requirements, operations capabilities
  should be done
• The final design should take into account
• Operational capabilities
• Manufacturability/Assembly/Disassembly (DFM, DFA,
  DFD)
• Legal and regulatory considerations

QUALITY FUNCTION DEPLOYMENT (QFD)
6
Two Approaches to Design
7
Disadvantage of Over-the-wall approach
8
Benefits of Concurrent Engineering

• Production/Operations capabilities and costs
  become evident early in the process
• - almost 75 of the cost of a product is firmed
  up during design phase
• Early detection of potential manufacturing
  problems
• Reduced time to market because of
• early error detection
• simultaneous activities

• Can you think of any disadvantages?
• Forming and managing teams

9
(No Transcript)
10
Service Design

• Services are, in general, intangible. Therefore,
  there is no physical product to design.
• Services cant be inventoried.
• There is more customer involvement.
• Immediate feedback.
• Many services are created and delivered at the
  same time ? in many cases, the service is the
  process itself.

11
Service Design (Contd.)

• Services tend to be decentralized and
  geographically dispersed
• Competitors can copy easily
• Location, Location, Location
• Two key issues to be decided on
• - degree of customer contact
• - variability of service requirements

12
Impact of Service Variability Customer Contact
on Service Design
Customized ?
Variability in Service Requirements
? Standardized
Degree of Contact with Customer
13
Guidelines for Service Design

• Have a unifying theme convenience, speed,
  personal attention etc.
• Make arrangements to cope with variability in
  service requirements
• Ensure reliability and consistent quality
• Make the system user-friendly (especially
  important for self-service)

14
Three Approaches to Service Design

• Production Line Approach When there is low
  variability in service req.s (e.g. McDonalds)
• Personalized Approach When there is high
  customer contact, high variability in service
  req.s (e.g. Ritz-Carlton, Nordstrom Dept.)
• Self-service Approach Let the customers take
  more responsibility in the production of the
  service (ATMs, gas stations)