P501: Managing Operations &

Supply Chain

Lecture - 4
 Why is design important?
⚫ Satisfy customer needs

⚫ Aesthetically pleasing product

⚫ Performance and reliability

⚫ Easily and quickly manufacture-able (DFM/DFA)

⚫ At reasonable cost
 Key Questions
Is there a demand for it?
⚫ Market size, Demand profile

Can we do it?
⚫ Manufacturability, Serviceability

What level of quality is appropriate?

⚫ Customer expectations, Competitor quality
⚫ Fit with current offering
Does it make sense from an economic standpoint?
⚫ Liability issues, ethical considerations, sustainability issues, costs and
profits
 Focus of Design
⚫ Concept

⚫ understanding of the nature & use & value of the product

⚫ Package

⚫ ‘component’ products and services that provide those benefits

defined in the concept

⚫ Process

⚫ defines the way in which the component products and services

will be created and delivered.

The stages of design
 Concept/Idea Generation
⚫ Ideas from
⚫ Customers

⚫ Staff

⚫ Competitor’s activity

⚫ Reverse Engineering

⚫ R&D

⚫ Open sourcing
Concept Screening
“You have to kiss a lot of frogs to
find the prince. But remember, one
prince can pay for a lot of frogs.”
 Concept Screening
Rating
Performance Relative Very Good Fair Poor Very Factor
Features Weight Good (30) (20) (10) Poor Score
(40) (0)
Sales
Competition
Patent protection
Technical
opportunity
Materials
availability
Effect on present
product
Labor availability
Value added
Total 1.00
 Exercise
⚫ Pizza Hut is considering a new flavor of pizza - in the

same price range as its existing Supreme Line. You have

been asked to evaluate the proposed product and
recommend whether the company should move forward
with the new product or not. You must provide
justification for each factor. A factor score of less than 30
is unacceptable.
 Design Considerations
⚫ Legal considerations

⚫ Ethical considerations

⚫ Human factors

⚫ Cultural factors

⚫ Global product and service design

⚫ Environmental factors

⚫ Others
 Legal & Ethical Considerations
⚫ Legal considerations

⚫ Government further regulates

⚫ Product liability

⚫ Ethical considerations

⚫ Trade-off decisions

⚫ Produce designs that are consistent with the goals of the

organization.
⚫ Give customers the value they expect.

⚫ Make health and safety a primary concern.

 Human Factors
⚫ Safety and liability

⚫ New features

⚫ Competitive edge

⚫ Too much of a good thing

⚫ May lead to customer dissatisfaction

⚫ Ease of use
Cultural Differences
 Global Product and Service Design
⚫ Virtual team

⚫ Geographic/time/resource constraints

⚫ Marketability and utility

⚫ Diversity

⚫ Benefits vs. Challenges

 Environmental Factors
⚫ Pollution Issues

⚫ Sustainability

⚫ Cradle-to-Grave Assessment

⚫ End-of-Life Programs

⚫ The Three R
 The Three R
⚫ Reduce: Value Analysis

⚫ Reuse: Remanufacturing

⚫ Design for Disassembly (DFD)

⚫ Recycle

⚫ Design for Recycling (DFR)

⚫ Reasons: cost savings/ environmental concerns/ environmental

regulations
 Other Design Considerations
⚫ Reducing design complexity
⚫ Standardization
⚫ Commonality
⚫ Modularization

⚫ Designing for Mass Customization

⚫ Delayed differentiation
⚫ Modularization

⚫ Reliability

⚫ Robustness

⚫ Degree of Newness
 Design Evaluation & Improvement
⚫ Quality Function Deployment (QFD)

⚫ Value Engineering (VE)

⚫ Taguchi Methods
Quality Function Deployment (QFD)
Quality Function Deployment (QFD)
 Value Engineering
⚫ Try to reduce costs, and prevent any unnecessary costs, before
producing the product, or

⚫ Try to eliminate any costs that do not contribute to the value and
performance of the product

⚫ Also called Value Analysis when it is concerned with cost reduction

after the product has been introduced

⚫ Examine the purpose of the product, its basic functions and its secondary
functions

⚫ Analyse their cost, then try to find any similar components that could do
the same job at lower cost
 Taguchi Methods
⚫ Main purpose is to test the robustness of a design.

⚫ The basis of the idea is that the product should still perform in

extreme conditions.

⚫ Instead of constantly directing effort toward controlling a

process to assure consistent quality, design the manufactured

good to achieve high quality despite the variations that will
occur in the production line.
 Reliability
⚫ Reliability is defined as a probability, that is, a value between

0 and 1.

⚫ A 97% reliable part has a probability of 0.97 that it will

perform its function for a given period under specified

operating conditions.

⚫ Reliability of serial system vs. parallel system

Reliability of serial system vs. parallel system
Reliability of serial system vs. parallel system
 Service Design Definitions
⚫ Service

⚫ Something that is done to, or for, a customer

⚫ Service delivery system

⚫ The facilities, processes, and skills needed to provide a service

⚫ Product bundle

⚫ The combination of goods and services provided to a customer

⚫ Service package

⚫ The physical resources needed to perform the service, accompanying

goods, and the explicit (core features) and implicit (ancillary features)
services included
Service Blueprinting
End of Class