Designing Products and Services

By: Rochelle G. Abanilla

Product - is anything that can be offered to market for attention, acquisition, use or consumption that might satisfy a wand or need.

Service any activity or benefits that one party can offer to another that is essentially intangible and does not result in the ownership of anything.

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

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

Sources of Ideas for Products and Services

Internal
Employees Marketing department R&D department

External
Customers Suppliers Competitors

Reverse engineering dismantling and inspecting of a competitors product to discover product improvements
Example: Taurus model of Ford Motor Company

Legal, Ethical, and Environmental Issues

Legal
FDA, OSHA, IRS = BFAD, DOH, DENR 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.

Ethical
Releasing products with defects

Environmental
Dont design something that can harm the environment.

OTHER ISSUES IN PRODUCTS AND SERVICE DESIGN Product or Service Life Cycle Standardization Reliability Robust design

Life Cycles of Products or Services

Saturation Maturity

Demand

Decline Growth

Incubation

Time

Standardization
refers to the extent to which there is absence of variety in a product, service, or process.

Advantages of Standardization
Fewer parts to deal with in inventory & manufacturing Reduced training costs and time More routine purchasing, handling, and inspection procedures

Advantages of Standardization (Contd)

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.

Disadvantages of Standardization
Designs may be frozen with too many imperfections remaining. High cost of design changes increases resistance to improvements. Decreased variety consumer appeal. results in less

Designing For Mass Customization

Mass customization a strategy of producing standardized goods or services, but incorporating some degree of customization Delayed differentiation a postponement tactic Modular design a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged

Examples of Modular Design for LCD Display Enclosures

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 items reliability is specified

Improving Reliability
Component design Production/assembly techniques Testing Redundancy/backup Preventive maintenance procedures User education System design

Robust Design
Design that results in products or services that can function over a broad range of conditions

Taguchi Approach Robust Design

Genichi Taguchis (Japanese engineer) design a robust product which is insensitive to environmental factors either in manufacturing or in use. Central feature is Parameter Design.

Designing for Manufacturing

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

Advantages of Concurrent Engineering

Manufacturing personnel are able to identify production capabilities and capacities. Early opportunities for design or procurement of critical tooling, some of which might have long lead times. Early consideration of the technical feasibility of a particular design or a portion design. Emphasis can be on problem resolution instead of conflict resolution.

Disadvantages of Concurrent Engineering

Longstanding existing boundaries between design and manufacturing can be difficult to overcome. There must be extra communication and flexibility if the process is to work, and these can be difficult to achieve

Over the Wall Approach

New Product

Mfg

Desig n

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 analysis on proposed designs and cost

design for manufacturing and assembly (DFMA) software one extension of CAD which focuses on the effect of design on assembly. 3-D object modeling second CAD extension particularly used for small prototype development.

Computer-Aided Manufacturing (CAM)

refers to the use of specialized computer programs to direct and control manufacturing equipment.

Benefits of CAD and CAM

Product quality Shorter design time Production cost reduction Database availability New range of capabilities

Production Requirements
Manufacturability is the ease of fabrication and/or assembly which is important for cost, productivity and quality. Forecast of future demand can be useful, supplying information on the timing and volume of demand, and information on demands for new products and services.

Design for manufacturing (DFM) used to indicate the designing of products that are compatible with an organizations capabilities Design for assembly (DFA) design focuses on reducing the number of parts in a product and on assembly methods and sequence.

Recycling
refers to recovering materials for future use

Recycling reasons:
Cost savings Environment concerns Environment regulations

design for recycling (DFR) refers to product design that takes into account the ability to disassemble a used product to recover the recyclable parts
Examples : Light bulb hanging vases

REMANUFACTURING
design for disassembly (DFD) which includes using fewer parts and less material, using snap fits where possible instead of screws or nuts and bolts.

DESIGNING FOR SERVICES

Two issues in service design Degree of variation in service requirements Degree of customer contact and customer involvement in the delivery system.

Service Variability & Customer Influence Service Design

High
Variability in Service Requirements

Customized Clothing Dept. Store Purchase Telephone Purchase Internet Purchase None Low Moderate High

Moderate Low None

Degree of Contact with Customer

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

Service Design Guidelines

Have single, unifying theme, such as convenience and speed. Make sure the system has the capacity to handle any expected variability in service requirements. Include design features and checks to ensure that service will be reliable and will provide consistently high quality. Design the system to be user-friendly.

Quality Function Deployment

Quality 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.

The House of Quality

Correlation matrix Design requirements

Customer requirements

Relationship matrix

Competitive assessment

Specifications or target values

Steps in building house of quality

Identity customer wants. Identify how the good/service will satisfy customer wants. Relate customer wants to product hows. Identify relationship between the firms hows. Develop importance rating. Evaluate competing products. Determine the desirable technical attributes, your performance, and the competitors performance against these attributes.

House of Quality Example

Correlation:
X X X

Water resistance

Door seal resistance

Im

po

Customer Requirements Easy to close Easy to open

rta nc et

Engineering Characteristics

Accoust. Trans. Window

Energy needed to close door

Check force on level ground Energy needed to open door

Strong positive Positive Negative Strong negative

X = Us A = Comp. A B = Comp. B (5 is best) 1 2 3 4

Competitive evaluation

oC

us t.

7 5 3 3 2
Reduce energy level to 7.5 ft/lb

X X AB

AB

Stays open on a hill Doesnt leak in rain No road noise Importance weighting Target values

XAB A XB X A B

10

6
Maintain current level

6
Reduce force to 9 lb.

9
Reduce energy to 7.5 ft/lb.

2
Maintain current level

3
Maintain current level

Relationships:
Strong = 9 Medium = 3 Small = 1

Technical evaluation (5 is best)

5 4 3 2 1

B A X

BA X

B A X

B X A

BXA

BA X

The Kano Model

Kano Model

Customer Satisfaction

Excitement Expected Must Have

Customer Needs

Operations Strategy
Shorten time-to-market Package products and services Increase emphasis on component commonality Use multiple-use platforms Consider tactics for mass customization Look for continual improvement