4-1 Product and Service Design
CHAPTER
4
Product and
Service Design
Operations Management, Eighth Edition, by William J. Stevenson
McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights
4-2 Product and Service Design
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 organization’s strategy
4-3 Product and Service Design
Product or Service Design Activities
· Translate customer wants and needs into
product and service requirements
· Refine existing products and services
· Develop new products and services
· Formulate quality goals
· Formulate cost targets
· Construct and test prototypes
· Document specifications
4-4 Product and Service Design
Reasons for Product or Service Design
· Economic
· Social and demographic
· Political, liability, or legal
· Competitive
· Technological
4-5 Product and Service Design
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
4-6 Product and Service Design
Legal, Ethical, and Environmental Issues
· Legal
· FDA, OSHA
· Product liability
· Uniform commercial code
· Ethical
· Releasing products with defects
· Environmental
· EPA
4-7 Product and Service Design
Regulations & Legal Considerations
· Product Liability - A manufacturer is liable for
any injuries or damages caused by a faulty
product.
· Uniform Commercial Code - Products carry an
implication of merchantability and fitness.
4-8 Product and Service Design
Designers Adhere to Guidelines
· Produce designs that are consistent with the
goals of the company
· Give customers the value they expect
· Make health and safety a primary concern
· Consider potential harm to the environment
4-9 Product and Service Design
Other Issues in Product and Service Design
· Product/service life cycles
· How much standardization
· Product/service reliability
· Range of operating conditions
4-10 Product and Service Design
Life Cycles of Products or Services
Figure 4.1
Saturation
Maturity
Demand
Decline
Growth
Introduction
Time
4-11 Product and Service Design
Standardization
· Standardization
· Extent to which there is an absence of variety
in a product, service or process
· Standardized products are immediately
available to customers
4-12 Product and Service Design
Mass Customization
• Mass customization:
· A strategy of producing standardized goods
or services, but incorporating some degree
degree of customization
· Delayed differentiation
· Modular design
4-13 Product and Service Design
Delayed Differentiation
• Delayed differentiation is a postponement
tactic
· Producing but not quite completing a product
or service until customer preferences or
specifications are known
4-14 Product and Service Design
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
4-15 Product and Service Design
Improving Reliability
• Component design
• Production/assembly techniques
• Testing
• Redundancy/backup
• Preventive maintenance procedures
• User education
• System design
4-16 Product and Service Design
Product Design
· Product Life Cycles
· Robust Design
· Concurrent Engineering
· Computer-Aided Design
· Modular Design
4-17 Product and Service Design
Robust Design
Robust Design: Design that results in
products or services that can function over
a broad range of conditions
4-18 Product and Service Design
Reverse Engineering
Reverse engineering is the
dismantling and inspecting
of a competitor’s product to discover
product improvements.
4-19 Product and Service Design
Research & Development (R&D)
· Organized efforts to increase scientific
knowledge or product innovation & may
involve:
· Basic Research advances knowledge about a
subject without near-term expectations of
commercial applications.
· Applied Research achieves commercial
applications.
· Development converts results of applied
research into commercial applications.
4-20 Product and Service Design
Concurrent Engineering
Concurrent engineering
is the bringing together
of engineering design and
manufacturing personnel
early in the design phase.
4-21 Product and Service Design
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
4-22 Product and Service Design
Recycling
· Recycling: recovering materials for future use
· Recycling reasons
· Cost savings
· Environment concerns
· Environment regulations
4-23 Product and Service Design
Reliability
· Reliability: The ability of a product, part,
or system to perform its intended function
under a prescribed set of conditions
· Failure: Situation in which a product,
part, or system does not perform as
intended
· Normal operating conditions: The set
of conditions under which an item’s
reliability is specified
4-24 Product and Service Design
Reliability is a Probability
· Probability that the product or system will:
· Function when activated
· Function for a given length of time
· Independent events
· Events whose occurrence or
nonoccurrence do not influence each
other
· Redundancy
· The use of backup components to
increase reliability
4-25 Product and Service Design
Rule 1
Lamp 1 Lamp 2
.90 .80 .90 x .80 = .72
4-26 Product and Service Design
Rule 2
.80 Lamp 2 (backup)
.90 .90 + (1-.90)*.80 = .98
Lamp 1
4-27 Product and Service Design
Rule 3
.70
Lamp 3 (backup for Lamp 2)
.80
Lamp 2 (backup for Lamp1)
1 – P(all fail)
.90 1-[(1-.90)*(1-.80)*(1-.70)] = .994
Lamp 1
4-28 Product and Service Design
Example S-1 Reliability
Determine the reliability of the system shown
.90 .92
.98 .90 .95
4-29 Product and Service Design
Example S-1 Solution
The system can be reduced to a series of three
components
.98 .90+.90(1-.90) .95+.92(1-.95)
.98 x .99 x .996 = .966
4-30 Product and Service Design
Improving Reliability
· Component design
· Production/assembly techniques
· Testing
· Redundancy/backups
· Preventive maintenance procedures
· User education
· System design
