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CHAPTER FOUR

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PRODUCT AND SERVICE DESIGN

4-1Irwin/McGraw-Hill

DESIGN OF PRODUCTION SYSTEMS

PART THREE

•Chapter Four•Product and Service Design

•Chapter Five•Process Selection and Capacity Planning

•Chapter Six•Facilities Layout

•Chapter Seven•Design of Work Systems

•Chapter Eight•Location Analysis

©The McGraw-Hill Companies, Inc., 1999

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Chapter 4

Product and Service Design

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Reasons for Product or Service Design

• Be competitive

• Increase business growth & profits

• Avoid downsizing with development of new products

• Improve product quality

• Achieve cost reductions in labor or materials

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Trends in Product & Service Design

• Increased emphasis on or attention to:– Customer satisfaction

– Reducing time to introduce new product

or service

– Reducing time to produce product

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Trends in Product & Service Design (Cont’d)

• Increased emphasis on or attention to:– The organization’s capabilities to

produce or deliver the item

– Environmental concerns

– Designing products & services that are “user friendly”

– Designing products that use less material

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Objects of Product & Service DesignBeyond the overall objective to achieve customer satisfaction while making a reasonable profit is:

Design for Manufacturing(DFM)

The designers’ consideration of the organization’s manufacturing capabilities when designing a product.

The more general term design for operations encompasses services as well as manufacturing

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The Design Process

• Motivation

• Customer

• Marketing

• Competitors

• Forecasts

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Reverse Engineering

Reverse engineering is the

dismantling and inspecting of a competitor’s product to discover product improvements.

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Manufacturability

• Manufacturability is the ease of fabrication and/or assembly which is important for:

– Cost

– Productivity

– Quality

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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.

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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.

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Product Design

• Product Life Cycles

• Robust Design

• Concurrent Engineering

• Computer-Aided Design

• Modular Design

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Advantages of Standardization

• Fewer parts to deal with in inventory & manufacturing

• Reduced training costs and time

• More routine purchasing, handling, and inspection procedures

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Advantages of Standardization (Cont’d)

• Orders fillable from inventory

• Opportunities for long production runs and automation

• Need for fewer parts justifies increased expenditures on perfecting designs and improving quality control procedures.

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Disadvantages of Standardization

• Designs may be frozen with too many imperfections remaining.

• High cost of design changes increases resistance to improvements.

• Decreased variety results in less consumer appeal.

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Life Cycles of Products or Services

Time

Incubation

Growth

Maturity

Saturation

Decline

Dem

and

Figure 4-2

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• Design for manufacturing (DFM)

• Design for assembly (DFA)

• Design for recycling (DFR)

• Remanufacturing

• Design for disassembly (DFD)

• Robust design

Product design

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Taguchi Approach Robust Design

• Design a robust product– Insensitive to environmental factors either

in manufacturing or in use.

• Central feature is Parameter Design.

• Determines:– factors that are controllable and those not

controllable– their optimal levels relative to major

product advances

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Concurrent Engineering

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

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

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“Over the Wall” Approach

DesignMfg

New Product

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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

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Modular DesignModular 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

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Steel productionAutomobile fabrication

House buildingRoad construction

DressmakingFarming

Auto RepairAppliance repair

Maid ServiceManual car wash

TeachingLawn mowing

Low service contentHigh goods content

High service contentLow goods content

Increasinggoods content

Increasingservice content

Goods-service spectrumFigure 4-3

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Service Variability & Customer Influence Service Design

Variabilityin ServiceRequirements

Figure 4-4

Degree of Contact with Customer

High

Moderate

Low

None

None Low Moderate High

TelephonePurchase

Dept. StorePurchase

CustomizedClothing

InternetPurchase

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The House of Quality

Correlation matrix

Designrequirements

Customerrequire-ments

Competitiveassessment

Relationshipmatrix

Specificationsor

target values

Figure 4-7

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Customer Requirements

Importance to Cust.Easy to close

Stays open on a hill

Easy to open

Doesn’t leak in rain

No road noise

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House of Quality Example

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Improving Reliability• Component design

• Production/assembly techniques

• Testing

• Redundancy

• Preventive maintenance procedures

• User education

• System design