PRODUCT DESIGN PROCESS

THE PRODUCT DESIGN PROCESS

• Concept Development

• Product Planning

• Product/Process Engineering

• Pilot Production/Ramp-Up

2

HOW DO YOU DETERMINE WHAT THECUSTOMER WANTS?

• Quality Function Deployment• Inter-functional teams from marketing, design engineering,

and manufacturing

• Voice of the customer (for new and existing products)

• House of Quality

4

House of Quality

X

X

X

X

X

Correlation:Strong positive

Positive

NegativeStrong negative

X*

Competitive evaluation

X = UsA = Comp. AB = Comp. B(5 is best)

1 2 3 4 5

X AB

X AB

XAB

A X B

X A B

Relationships:

Strong = 9

Medium = 3

Small = 1

Technical evaluation(5 is best)

54321

B

A

X

BAX B

AX

B

X

A

BXABA

X

Engineering Characteristics

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und

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Wat

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Doo

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Acc

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. Tra

ns.

Win

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Target values

Importance weighting 10 6 6 9 2 3

Red

uce

ener

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leve

l to

7.5

ft/lb

Red

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9 lb

.

Red

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7.5

ft/lb

.

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Importance to Cust.Customer Requirements

Easy to close

Stays open on a hill

Easy to open

Doesn’t leak in rain

No road noise

7

5

3

3

2

1 2

3

5

74

6

5

PRODUCT DESIGN

• Value Analysis/Value Engineering• Simplification of products and processes• Cost reduction and avoidance

• Design for Manufacturability• Traditional approach• Concurrent engineering

• Design for Assembly• Global Product Design

6

CONCURRENT ENGINEERING

• Concurrent engineering can be defined as the simultaneous development of design functions, with open and interactive communication existing among all team members for the purpose of:

• reducing time to market• decreasing cost• improving quality and reliability

3

Phased versus Overlapping Approach in New Product Development

Design information processing

Activity 1

Activity 2

Activity 3

Information batch size

Single batchtransfer of

info

Phased Approach

Start of Activity 2

Start of Activity 3

Elapsed time

Design information processing

Activity 1

Activity 2

Small batch transfer of info Overlapping Approach

Start of Activity 2

Start of Activity 3

Elapsed time

____________________________________________________________ “New Product Development: The New Time Wars” Joe Blackburn, 1991. 3a

TYPES OF PROCESSES

• Conversion - e.g., creating steel from iron ore

• Fabrication - e.g., forming steel into cans

• Assembly - e.g., put cans, lids and ingredients together

• Testing - e.g., testing for sealed weight

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PROCESS FLOW STRUCTURES

• Job shop

• Batch (Organizing the materials in lots)

• Assembly Line

• Continuous Flow

8

IV.Continuous

Flow

III.Assembly

Line

II.Batch

I.Job

Shop

LowVolumeOne of a

Kind

MultipleProducts,

LowVolume

FewMajor

Products,HigherVolume

HighVolume,

HighStandard-

izationCommercial

Printer French Restaurant

Flexibility (High)Unit Cost (High)

Flexibility (Low)Unit Cost (Low)

HeavyEquipment

Coffee Shop

AutomobileAssembly

Burger King

SugarRefinery

Source: Modified from Robert Hayes and Steven Wheelwright, Restoring Our Competitive Edge: Competing through Manufacturing (New York: John Wiley & Sons, 1984). p. 209.

Exhibit 5.10, p.168: The Product - Process Matrix

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VIRTUAL FACTORY

Shift from centralized production to ....

... an integrated network of capabilities

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PROCESS FLOW DESIGN

• A process flow design can be defined as a mapping of the specific processes that raw materials, parts, and subassemblies follow as they move through a plant.

• Common tools to design a process flow:• Assembly drawing• Assembly chart• Operation and route sheet

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ASSEMBLY (GOZINTO) CHART

A-2SA-2

4

5

6

7

Lockring

Spacer, detent spring

Rivets (2)

Spring-detent

A-5Component/Assembly Operation

Inspection

Exhibit 4.13

©The McGraw-Hill Companies, Inc., 1998 12

Assemble Drawing

____________________________________________________________ Operations Management, Roger Schroeder, 1985 12b

EXAMPLE: PROCESS FLOW CHART

InspectMaterial for

Defects

Return toSupplier for

Credit

Buffer: MaterialReceived

FromSupplier Defects

Found?

Yes

No, Continue…

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Goods versus Services

Pencil Manufacturer• tangible• storable• easy quality assessment• centralized production• long lead times• capital intensive• low customer contact• production separate from consumption

McDonald’s

Psychologist• intangible • perishable• difficult quality assessment• dispersed production• short lead times• labor intensity• high customer contact• production concurrent with consumption

goods services

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SOME SERVICE GENERALIZATIONS (1 OF 2)

1. Everyone is an expert on services.

2. Services are idiosyncratic.

3. Quality of work is not quality of service.

4. Most services contain a mix of tangible and intangible attributes (service package).

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SOME SERVICE GENERALIZATIONS (2 OF 2)

5. High-contact services (described later) are experienced, whereas goods are consumed.

6. Effective management of services requires an understanding of marketing and personnel, as well as operations.

7. Services often take the form of cycles of encounters involving face-to-face, phone, electromechanical, and/or mail interactions.

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SERVICE TYPES

• Facilities-based vs. Field-based services

• Internal Services - - External Services

Internal Supplier

Internal Supplier

InternalCustomer

ExternalCustomer

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SERVICE STRATEGY: FOCUS AND ADVANTAGE

PERFORMANCE PRIORITIES

• Treatment of the customer

• Speed and convenience of service delivery

• Price

• Variety

• Unique skills that constitute the service offering

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CLASSIFICATIONS OF SERVICES

• Amount of customer contact

Low versus High

• Standard or Custom Service

• The mix of tangible and intangible goods

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SERVICE-SYSTEM DESIGN MATRIXExhibit 6.7

Mail contact

Face-to-faceloose specs

Face-to-facetight specs

PhoneContact

Face-to-facetotal

customization

Buffered core (none)

Permeable system (some)

Reactivesystem (much)

High

LowHigh

Low

Degree of customer/server contact

On-sitetechnology

SalesOpportunity

ProductionEfficiency

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SERVICE BLUEPRINTING

Brushshoes

Applypolish

Failpoint

BuffCollect

payment

Cleanshoes Materials

(e.g., polish, cloth)

Select andpurchasesupplies

Standardexecution time

2 minutes

Total acceptableexecution time

5 minutes

30secs

30secs

45secs

15secs

Wrongcolor wax

Seen bycustomer 45

secs

Line ofvisibility

Not seen bycustomer butnecessary toperformance

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FAILURE MODE AND EFFECTS CRITICALITY ANALYSIS (FMECA OR FMEA)

Risk Priority Number (RPN) = Occurrence * Severity * Detection

• Occurrence = Frequency of failure mode (1=remote, 9=inevitable, 10=certain)

• Severity = How serious is the failure to the process; to business results? (1=minor, 2-3=annoyance, 9-10=very high/most severe)

• Detection = Likelihood that a defect will be detected by controls before the next (subsequent) process (1-2=very high, 9=very low, 10=absolutely cannot detect)

*FMEA (Failure Mode and Effects Analysis)

*FMECA (Failure Mode, Effects and Criticality Analysis)

SERVICE RECOVERY (JUST IN CASE)

• A real-time response to a service failure.

• Blueprinting can guide recovery planning (fail points).

• Recovery planning involves training front-line workers to respond to such situations as overbooking, lost luggage, or a bad meal.

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SERVICE RECOVERY (JUST IN CASE)

“Empowerment can only take place when every associate can personally assure customer satisfaction every time!”

Gary Johnson

SERVICE RECOVERY PROCESSES: FUNDAMENTAL QUESTIONS TO ASK

• Who are my customers? • What is my product or service?• What are my customer’s expectations and

measures?• Does my product or service meet their

expectations?• What is the process for providing my product or

service?• What action is required to improve the process?• What are my customer’s moments of truth?

SERVICE RECOVERY - HOW IT WORKS

Process Identification

Incidents

Remedies

Cost of Incident

Measurement of Frequency

CustomerIdentification

MissionStatement

Cost ofPoor Quality

SERVICE FAILSAFING: POKA-YOKES

•Keeping a mistake from becoming a service defect.

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A proactive approach

SERVICE FAILSAFING: POKA-YOKES

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THREE CONTRASTING SERVICE DESIGNS

• The production line approach

• The self-service approach

• The personal attention approach

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DESIGNING THE SERVICE SYSTEM

• Major Design Issues• Product & Process are designed simultaneously

• Scheduling of Capacity• due to uncertainty in demand• inability to store inventory

• Dealing will uncertainty in demand• preemptive tactics• flexibility• forecasting• use of waiting lines

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CHARACTERISTICS OF A WELL-DESIGNED SERVICE SYSTEM

1. Each element of the service system is consistent with the operating focus of the firm.

2. It is structured so that consistent performance by its people and systems is easily maintained.

3. It provides effective links between the back & front office so that nothing falls between the cracks.

4. It manages the evidence of service quality in such a way that customers see the value of the service.

5. The service system is:• cost-effective• user-friendly• robust

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