Product andService Design

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

You should be able to:1. Explain the strategic importance of product and service

design2. Identify some key reasons for design or redesign3. Recognize the key questions of product and service design4. List some of the main sources of design ideas5. Discuss the importance of legal, ethical, and sustainability

considerations in product and service design6. Explain the purpose and goal of life cycle assessment7. Explain the phrase “the 3 Rs”8. Briefly describe the phases in product design and

development9. Name several key issues in manufacturing design10. Recognize several key issues in service design11. Name the phases in service design12. List the characteristics of well-designed service systems13. Assess some of the challenges of service design 4-2Student Slides

The essence of an organization is the goods and services it offersEvery aspect of the organization is structured

around themProduct and service design – or redesign – should

be closely tied to an organization’s strategy

Student Slides 4-3

Stages of product/service design:Functional design (form, shape, size,

materials, etc.)Process design (processing technology

and tooling)Production design (production line &

plant layout)

Product/service qualityProduction/delivery costCustomer satisfaction

1. Is there a demand for it?Market sizeDemand profile

2. Can we do it (competence)?Manufacturability - the capability of an

organization to produce an item at an acceptable profit

Serviceability - the capability of an organization to provide a service at an acceptable cost or profit

3. What level of quality is appropriate?Customer expectationsCompetitor qualityFit with current offering

4. Does it make sense from an economic standpoint?

Liability issues, ethical considerations, sustainability issues, costs and profits

4-6Student Slides

Developing New Products/ServicesSources of Product InnovationGetting Them to Market FasterDesigning and Developing New Services

Improving Current Products/ServicesDesigning for Ease of ProductionDesigning for Quality

CustomersManagersMarketingOperationsEngineeringResearch and Development (R&D)

Basic researchApplied research

1. Technical and economic feasibility studies2. Prototype design3. Performance testing of prototype4. Market sensing/evaluation and economic

evaluation of the prototype5. Design of production model6. Market/performance/process testing and

economic evaluation of production model7. Continuous modification of production

model

1. Technical and Economic Feasibility StudiesDetermine the advisability of establishing a

project for developing the productIf initial feasibility studies are favorable,

engineers prepare an initial prototype design

2. Prototype DesignThis design should exhibit the basic form, fit,

and function of the final productIt will not necessarily be identical to the

production model

3. Performance Testing of PrototypePerformance testing and redesign of the

prototype continues until this design-test-redesign process produces a satisfactorily performing prototype

4. Market Sensing/Evaluation and Economic Evaluation of the PrototypeAccomplished by demonstrations to potential

customers, market test, or market surveysIf the response to the prototype is favorable,

economic evaluation of the prototype is performed to estimate production volume, costs, and profits

If the economic evaluation is favorable, the project enters the production design phase.

5. Design of Production ModelThe initial design of the production model will

not be the final design; the model will evolve

6. Market/Performance/Process Testing and Economic Evaluation of Production ModelThe production model should exhibit:

low costreliable qualitysuperior performancethe ability to be produced in the desired

quantities on the intended equipment

7. Continuous Modification of Production ModelProduction designs are continuously modified

to:Adapt to changing market conditionsAdapt to changing production technologyAllow for manufacturing improvements

About 5% of all new-product ideas survive to production, and only about 10% of these are successful.

It is best to cancel unpromising new-product/service development projects early!

Employees often become emotionally caught up in these projects and are overly optimistic

An impartial management review board is needed for periodic reviews of the progress of these projects.

Speed creates competitive advantagesSpeed saves moneyTools to improve speed:

Autonomous design and development teamsComputer-aided design/computer-aided

manufacturing (CAD/CAM)Simultaneous (concurrent) engineering

Autonomous Design and Development TeamsTeams are given decision-making responsibility

and more freedom to design and introduce new products/services

Time-to-market has been slashed dramaticallyEnormous sums of money have been savedTeams do not have to deal with the

bureaucratic red tape ordinarily required to obtain approvals

Computer-Aided Design/Computer-Aided Manufacturing (CAD/CAM)Engineers, using CAD/CAM, can generate

many views of parts, rotate images, magnify views, and check for interference between parts

Part designs can be stored in a data base for use on other products

When it is time for manufacturing, the product design is retrieved, translated into a language that production machinery understands, and then the production system can be automatically set up.

Simultaneous(Concurrent)Engineering

Economic and TechnicalEconomic and TechnicalFeasibility StudiesFeasibility Studies

Product/Product/Service IdeasService Ideas

Production Process DesignProduction Process DesignProduct/Service DesignProduct/Service Design

Produce and MarketProduce and MarketNew Product/ServiceNew Product/Service

ContinuousInteraction

Focus is improving performance, quality, and cost

Objective is maintaining or improving market share of maturing products/services

Little changes can be significantSmall, steady (continuous) improvements

can add up to huge long-term improvementsValue analysis is practiced, meaning design

features are examined in terms of their cost/benefit (value).

Ease of Production (Manufacturability)Specifications - Precise information about the

characteristics of the productTolerances - Minimum & maximum limits on a

dimension that allows the item to function as designed

Standardization - Reduce variety among a group of products or parts

Simplification - Reduce or eliminate the complexity of a part or product

Crucial element of product design is its impact on quality

Quality is determined by the customer’s perception of the degree of excellence of the product/service’s characteristics

Chapter 7 covers the principles of designing products/services for quality

Three general dimensions of service design are:

Degree of Standardization of the ServiceCustom-fashioned for particular customers or

basically the same for all customers?Degree of Customer Contact in Delivering

the ServiceHigh level of contact (dress boutique) or low

level (fast-food restaurant)?Mix of Physical Goods and Intangible

ServicesMix dominated by physical goods (tailor’s shop)

or by intangible services (university)?

Differences Between New Service and New Product DevelopmentUnless services are dominated by physical

goods, their development usually does not require engineering, testing, and prototype building.

Because many service businesses involve intangible services, market sensing tends to be more by surveys rather than by market tests and demonstrations.

Legal considerationsEthical considerationsHuman factorsCultural factorsGlobal product and service designEnvironmental factorsOthers

4-27Student Slides

Sustainability Using resources in ways that do not harm ecological

systems that support human existence

Key aspects of designing for sustainability Cradle-to-grave assessment (Life-Cycle assessment) End-of-life programs The 3-Rs

Reduction of costs and materials used Re-using parts of returned products Recycling

Student Slides 4-28

Value analysis Examination of the function of parts and materials in an

effort to reduce the cost and/or improve the performance of a product

Common questions used in value analysis Is the item necessary; does it have value; could it be eliminated? Are there alternative sources for the item? Could another material, part, or service be used instead? Can two or more parts be combined? Can specifications be less stringent to save time or money? Do suppliers/providers have suggestions for improvements? Can packaging be improved or made less costly?

4-29Student Slides

Remanufacturing Refurbishing used products by replacing worn-out or

defective componentsCan be performed by the original manufacturer or another

company Reasons to remanufacture:

Remanufactured products can be sold for about 50% of the cost of a new product

The process requires mostly unskilled and semi-skilled workers In the global market, European lawmakers are increasingly

requiring manufacturers to take back used products Design for disassembly (DFD)

Designing a product to that used products can be easily taken apart

4-30Student Slides

Recycling Recovering materials for future use

Applies to manufactured partsAlso applies to materials used during production

Why recycle?Cost savingsEnvironmental concernsEnvironmental regulations

Companies doing business in the EU must show that a specified proportion of their products are recyclable

Design for recycling (DFR)Product design that takes into account the ability to

disassemble a used product to recover the recylcable parts

4-31Student Slides