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Spice Giant McCormick

Demand for
traditional spices going down

Adeyl Khan, Faculty, BBA, NSU


Product or Service Design
Activities Tr
anslate customer wants and needs into product and service
requirements
Re
fine existing products and services
De
velop new products and services
Fo
rmulate quality goals
Fo
rmulate cost targets
Co
nstruct and test prototypes
Do
cument specifications

Adeyl Khan, Faculty, BBA, NSU 4-2


Product and Service Design

Organization
’s strategy

Adeyl Khan, Faculty, BBA, NSU 4-3


Objectives of P/S Design

Adeyl Khan, Faculty, BBA, NSU 4-4


Legal, Ethical, and
Environmental Issues roduct Liability - A
manufacturer is
liable for any
injuries or
damages caused
by a faulty
product.

niform Commercial
Code - Products
carry an
implication of
merchantability
and fitness.

Adeyl Khan, Faculty, BBA, NSU 4-5


Sample Guidelines of an
Organization
Designers to Adhere
roduce designs that are consistent with the
goals of the company

ive customers the value they expect

ake health and safety a primary concern

onsider potential harm to the environment

Adeyl Khan, Faculty, BBA, NSU 4-6


Other Issues in P/S Design

Adeyl Khan, Faculty, BBA, NSU 4-7


Figure 4.1
Life Cycles of Products or
Services
Saturation

Maturity

Decline
Demand

Growth

Introduction

Time

Adeyl Khan, Faculty, BBA, NSU 4-8


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

tandardized products are immediately


available to customers

Adeyl Khan, Faculty, BBA, NSU 4-9


Adeyl Khan, Faculty, BBA, NSU 4-10
Adeyl Khan, Faculty, BBA, NSU 4-11
Adeyl Khan, Faculty, BBA, NSU 4-12
Adeyl Khan, Faculty, BBA, NSU 4-13
Adeyl Khan, Faculty, BBA, NSU 4-14
Improving Reliability
C
omponent design
P
roduction/assembly techniques
T
esting
R
edundancy/backup
P
reventive maintenance procedures
U
ser education
S
ystem design
Adeyl Khan, Faculty, BBA, NSU 4-15
Product Design

Adeyl Khan, Faculty, BBA, NSU 4-16


Adeyl Khan, Faculty, BBA, NSU 4-17
Degree of Design Change
Type of Design Newness of the Newness to the
Change organization market
Modification Low Low
Expansion Low Low
Clone High Low
New High High

Adeyl Khan, Faculty, BBA, NSU


Table 4.3 4-18
Cultural Differences
ultinational companies must take into
account cultural differences related to the
product design.

otable failures:
 Chevy Nova in Mexico
 Ikea beds in U.S.

Adeyl Khan, Faculty, BBA, NSU 4-19


Global Product Design
irtual teams
 Uses combined efforts of a team of designers
working in different countries
 Provides a range of comparative advantages
over traditional teams such as:
 Engaging the best human resources around the world
 Possibly operating on a 24-hr basis
 Global customer needs assessment
 Global design can increase marketability

Adeyl Khan, Faculty, BBA, NSU 4-20


Phases in Product Development
Process Idea generation
Feasibility
analysis
Product
specifications
Process
specifications
Prototype
development
Design review
Market test
Product
introduction
Follow-up
evaluation

Adeyl Khan, Faculty, BBA, NSU 4-21


Idea Generation
Supply chain based

Ideas Competitor based

Research based

Adeyl Khan, Faculty, BBA, NSU 4-22


Adeyl Khan, Faculty, BBA, NSU 4-23
Manufacturability
anufacturability
is the ease of
fabrication and/or
assembly which
is important for:
 Cost
 Productivity
 Quality

Adeyl Khan, Faculty, BBA, NSU 4-24


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

Adeyl Khan, Faculty, BBA, NSU 4-25


Computer-Aided Design
omputer-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

Adeyl Khan, Faculty, BBA, NSU 4-26


Product design
esign for manufacturing (DFM)

esign for assembly (DFA)

esign for recycling (DFR)

emanufacturing

esign for disassembly (DFD)

obust design
Adeyl Khan, Faculty, BBA, NSU 4-27
Recycling
ecycling: recovering materials for future use

ecycling reasons
 Cost savings
 Environment concerns
 Environment regulations

Adeyl Khan, Faculty, BBA, NSU 4-28


Remanufacturing
emanufacturing: Refurbishing used products by
replacing worn-out or defective components.
 Remanufactured products can be sold for 50% of
the cost of a new producer
 Remanufacturing can use unskilled labor
 Some governments require manufacturers to take
back used products

esign for Disassembly (DFD): Designing products


so that they can be easily taken apart.

Adeyl Khan, Faculty, BBA, NSU 4-29


Component Commonality
ultiple products or product families that have a
high degree of similarity can share components

utomakers using internal parts


 Engines and transmissions
 Water pumps
 Etc.

ther benefits
 Reduced training for assemble and installation
 Reduced repair time and costs

Adeyl Khan, Faculty, BBA, NSU 4-30


Quality Function Deployment
uality Function Deployment
 Voice of the customer
 House of quality

QFD: An approach that integrates the


“voice of the customer” into the
product and service development
process.

Adeyl Khan, Faculty, BBA, NSU 4-31


The House of Quality
Correlation
matrix

Design
requirements

Customer
Relationship Competitive
require-
matrix assessment
ments

Specifications
or
target values
Figure 4.3
Adeyl Khan, Faculty, BBA, NSU 4-32
House of Quality Example
Figure 4.4
Correlation:
X Strong positive
Positive
X X
X X X Negative
* Strong negative

Water resistance
Accoust. Trans.
Energy needed

Energy needed
Im

to close door
Engineering

to open door
Check force
po

resistance
Competitive evaluation

Door seal
rta Characteristics

Window
X = Us

on level
nc

ground
A = Comp. A
et B = Comp. B
Customer oC (5 is best)
Requirements us 1 2 3 4 5
t.
X AB
Easy to close 7
Stays open on a hill X AB
5
Easy to open 3 XAB

A XB
Doesn’t leak in rain 3
No road noise 2 X A B

Importance weighting 10 6 6 9 2 3 Relationships:


level to 7.5 ft/lb

Strong = 9
Reduce energy

Reduce energy
Reduce force
current level

current level
current level
to 7.5 ft/lb.
Medium = 3
Target values

Maintain
Maintain

Maintain
Small = 1
to 9 lb.

5 B
BA BA
B B BXA X
Technical evaluation 4
A
X
A X
3
(5 is best) 2 X
X A
1

Adeyl Khan, Faculty, BBA, NSU 4-33


The Kano Model
Kano Model

Excitement
Expected
Must Have
n
ifc
am
rS
eC
to
u
s

Customer Needs

Figure 4.5
Adeyl Khan, Faculty, BBA, NSU 4-34
Service Design
ervice is an act

ervice delivery system


 Facilities
 Processes
 Skills

any services are bundled with products

Adeyl Khan, Faculty, BBA, NSU 4-35


Service Design
ervice design involves
 The physical resources needed
 The goods that are purchased or consumed
by the customer
 Explicit services
 Implicit services

Adeyl Khan, Faculty, BBA, NSU 4-36


Service Design
S
ervice
 Something that is done to or for a customer
S
ervice delivery system
 The facilities, processes, and skills needed to provide a
service
P
roduct bundle
 The combination of goods and services provided to a
customer
S
ervice package
 The physical resources needed to perform the service

Adeyl Khan, Faculty, BBA, NSU 4-37


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
Range of
service systems
Demand
variability

Adeyl Khan, Faculty, BBA, NSU 4-38


Service Systems
ervice systems range from those with little
or no customer contact to very high degree
of customer contact such as:
 Insulated technical core (software
development)
 Production line (automatic car wash)
 Personalized service (hair cut, medical
service)
 Consumer participation (diet program)
 Self service (supermarket)

Adeyl Khan, Faculty, BBA, NSU 4-39


Service Demand Variability
D
emand variability creates waiting lines and idle service
resources
S
ervice design perspectives:
 Cost and efficiency perspective
 Customer perspective
C
ustomer participation makes quality and demand
variability hard to manage
A
ttempts to achieve high efficiency may depersonalize
service and change customer’s perception of quality

Adeyl Khan, Faculty, BBA, NSU 4-40


Phases in Service Design
onceptualize

dentify service package components

etermine performance specifications

ranslate performance specifications into design


specifications

ranslate design specifications into delivery


specifications
Adeyl Khan, Faculty, BBA, NSU 4-41
Service Blueprinting
ervice blueprinting
 A method used in service design to describe
and analyze a proposed service

useful tool for conceptualizing a service


delivery system

Adeyl Khan, Faculty, BBA, NSU 4-42


Major Steps in Service
Blueprinting
stablish boundaries

dentify sequence of customer interactions


 Prepare a flowchart

evelop time estimates

dentify potential failure points

Adeyl Khan, Faculty, BBA, NSU 4-43


Characteristics of Well Designed
Service Systems
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

Adeyl Khan, Faculty, BBA, NSU 4-44


Challenges of Service Design
ariable requirements

ifficult to describe

igh customer contact

ervice – customer encounter

Adeyl Khan, Faculty, BBA, NSU 4-45


Guidelines for Successful
Service Design
package
Define the service

Focus on
customer’s perspective
Consider image of
the service package
Recognize that
designer’s perspective is different from the customer’s perspective
Make sure that
managers are involved
Define quality for
tangible and intangibles
Make sure that
recruitment, training and rewards are consistent with service expectations
Establish
procedures to handle exceptions
Establish systems
to monitor service

Adeyl Khan, Faculty, BBA, NSU 4-46


Operations Strategy
ncrease emphasis on component commonality

ackage products and services

se multiple-use platforms

onsider tactics for mass customization

ook for continual improvement

horten time to market


Adeyl Khan, Faculty, BBA, NSU 4-47
Shorten Time to Market
se standardized components

se technology

se concurrent engineering

Adeyl Khan, Faculty, BBA, NSU 4-48


Adeyl Khan, Faculty, BBA, NSU 49
Learning Objectives
E
xplain the strategic importance of product and service
design.
L
ist some key reasons for design or redesign.
I
dentify the main objectives of product and service
design.
D
iscuss the importance of standardization.
D
iscuss the importance of legal, ethical, and
environmental issues in product and service design.

Adeyl Khan, Faculty, BBA, NSU 4-50


Learning Objectives
Bri
efly describe the phases in product design and
development.
De
scribe some of the main sources of design ideas.
Na
me several key issues in manufacturing design.
Na
me several key issues in service design.
Na
me the phases in service design.
Lis
t the characteristics of well-designed service systems.
Na
me some of the challenges of service design.

Adeyl Khan, Faculty, BBA, NSU 4-51

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