The Product Design Process

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The Product Design Process

• Concept Development
• Product Planning
• Product/Process Engineering
• Pilot Production/Ramp-Up

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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

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House of Quality
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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

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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

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Phased versus Overlapping Approach in New Product
Development
Information batch size
Activity 1
Phased Approach
Design information processing
Single batch transfer of info
Activity 2
Start of Activity 2
Activity 3
Elapsed time
Start of Activity 3
Activity 1
Overlapping Approach
Design information processing
Small batch transfer of info
Activity 2
Start of Activity 2
Elapsed time
Start of Activity 3
__________________________________________________
__________ New Product Development The New
Time Wars Joe Blackburn, 1991.
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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
• Assembly Line
• Continuous Flow

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Flexibility (High) Unit Cost (High)
Commercial Printer French Restaurant
Flexibility (Low) Unit Cost (Low)
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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
Exhibit 4.13
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• The McGraw-Hill Companies, Inc., 1998

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Assemble Drawing
__________________________________________________
__________ Operations
Management, Roger Schroeder, 1985
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Example Process Flow Chart
Inspect Material for Defects
Buffer Material Received From Supplier
Defects Found?
No, Continue
Yes
Return to Supplier for Credit
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Goods versus Services
goods
services
McDonalds

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

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

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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

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Service Strategy Focus and AdvantagePerformance
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 Matrix
Exhibit 6.7
Degree of customer/server contact
Buffered
Permeable
Reactive
core (none)
system (some)
system (much)
High
Low
Face-to-face total customization
Face-to-face loose specs
Sales Opportunity
Production Efficiency
Face-to-face tight specs
Phone Contact
On-site technology
Mail contact
High
Low
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Service Blueprinting
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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 (1remote,
  9inevitable, 10certain)
• Severity How serious is the failure to the
  process to business results? (1minor,
  2-3annoyance, 9-10very high/most severe)
• Detection Likelihood that a defect will be
  detected by controls before the next (subsequent)
  process (1-2very high, 9very low, 10absolutely
  cannot detect)
•  
•  

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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

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Service Recovery Processes Fundamental Questions
to Ask

• Who are my customers?
• What is my product or service?
• What are my customers 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 customers moments of truth?

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Service Recovery - How it Works
Customer Identification
Mission Statement
Process Identification
Incidents
Remedies
Cost of Poor Quality
Cost of Incident
Measurement of Frequency
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Service Failsafing Poka-Yokes

• Keeping a mistake from becoming a service defect.

• A proactive approach

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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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