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3.

Product & service


design
Prof V.SESHADRI
Strategic Product and Service Design
In planning the production system, major
decisions are made concerning the design of the
product or services as well as the design of the
production processes. Entrepreneurs usually
formulate new businesses based on a unique
product or a service idea.
The essence of an organization is the goods and
services it offers
Every aspect of the organization is
structured around them
Product and service design or redesign should
be closely tied to an organizations strategy
Instructor Slides 4-2
What is product design?

Product design is conceptualization of an idea


about a product and transformation of the idea
into a reality.
To transform the idea into reality a specification of
the product is prepared. This specification is
prepared by considering different constraints
such as production process, customer
expectation, etc. In product design stage every
aspects of the product are analyzed. Also final
decision regarding the product is taken on the
basis of the analysis. This decision can be related
to any aspect of the product, e.g. dimension and
tolerances, type of material for every
components, etc.
Basic concepts in good product
design
Functionality: The product must function
properly for intended purpose.
Reliability: The product must perform
properly for the designated period of time.
Productivity: The product must be
produced with a required quantity and
quality at a defined and feasible cost.
Basic concepts in good
product design
Quality: The product must satisfy
customers stated and unstated needs.
Standardization: The product should be
designed in such a fashion so that most of
the components are standardized and
easily available in the market.
Modular Design: Designing a product in
parts or sub-assemblies.
Basic concepts in good
product design
Maintainability: The product must perform
for a designated period with a minimum
and defined maintenance. Adequate
provision for maintenance should be kept
in the product.
Cost effectiveness: The product must be
cost effective. The must be manufactured
in the most cost effective environment.
Basic concepts in good
product design
Research & development:
Basic research is a search for new
knowledge. It does not have any
immediate application, but based on the
basic research new product can be
developed in future.
Applied research has objective of
developing commercial products.
Basic concepts in good
product design
Reverse engineering:
Reverse engineering is the process of
carefully dismantling a product,
understanding its design and developing a
product which is better than the existing
one.
Basic concepts in good
product design
Concurrent engineering (CE):
CE is different than conventional approach
of design. In CE, different co-related teams
are formed, which perform different
activities for developing a product. For
example, development of market concept,
design of product, development of
manufacturing process, selection and
arrangement of material for new design is
performed by different teams at the same
time. It reduces considerable amount of
time to develop a new product.
In practice different concepts are combined
and applied together to design a new
Basic concepts in good product
design
Manufacturability: Ease of manufacturing.
Takes into account existing machines,
skills of workers, existing levels of
expertise etc.
Robust Design: Use with reference to
environment, transport and handling
Product Life Cycle: Product Design should
take into account the life span of a
product. Design should account for all the
stages in the life cycle.
P&OM -K B; Ch 3: New Product
10
Development
The three "R"s of Product
Design
1. Reduce
2. Reuse
3. Recycle

11 Instructor Slides
Product or service life
stages

4-12
Instructor Slides
Quality Function Deployment
(QFD)
QFD is a methodology for defining
customer needs and requirements as well
as keep everyone in the project team
focused on them.
It translates customer needs into specific
characteristics (engineering/tangible
specifications); and helps identify the
system processes and production norms to
achieve the needs.
QFD is a planning tool. It represents a
process for integrating cross functional
teams and project activities.
Ref 1 pg483
Quality Function
DEFINITION 3
Deployment
QFD IS A SYSTEM FOR TRANSLATING
CUSTOMER REQUIREMENTS INTO
APPROPRIATE COMPANY MEASURES
AT EACH STAGE FROM RESEARCH
AND PRODUCT DEVELOPMENT TO
ENGINEERING AND MANUFACTURING TO
MARKETING/SALES AND DISTRIBUTION.
QFD House of Quality
Deploying quality
Functions
Kano Model
Kano et al designed a very useful
diagram for characterizing customer
needs.
X axis depicts the performance of the
product while the Y axis depicts the
level of satisfaction derived by the
custome.

P&OM -K B; Ch 3: New Product


17
Development
Two forces:
Customer Satisfaction
deteriorates with time

Level of Best Possible


performance grows with time
(Customer expectations
increase.)
DFM and DFA
Design for manufacturing (DFM)
The designing of products that are
compatible with an organizations
abilities
Design for assembly (DFA)
Design that focuses on reducing the
number of parts in a product and on
assembly methods and sequence

Instructor Slides 4-19


Standardization
Standardization
Extent to which there is an absence of
variety in a product, service, or process
Products are made in large quantities of
identical items
Every customer or item processed receives
essentially the same service
- In a highly competitive global marketplace,
standardization is an essential feature to
grow and thrive in the market place.

Instructor Slides 4-20


MASS CUSTOMIZATION AND
GENERIC PLATFORMS 1/2
As the number of participants in a given market
increases and the market grows, it becomes
more and more difficult for a company to be
successful in that market.
One way of competing in this arena is to adopt
a strategy of targeting specific customer
groups with specific customized offerings.
This strategy of mass customization involves
the manufacturing of a wide variety of products
in small quantities while having a large overall
unit volume.
Prof.V.Seshadri Ref 1 Ch 3 21
MASS CUSTOMIZATION AND
GENERIC PLATFORMS 2/2
The concept of product platform
must be the basis for design.
Platform design is flexible to target
different customer groups with
customized feature sets.
Through the concept of generic
platforms and mass customization,
the company can meet increasing
customer demands, expand market
share, and increase revenue.
Prof.V.Seshadri Ref 1 Ch 3 22
Environmental sustainability
Today the focus is on environmental
sustainability in the design and production of
any product or service.
Product design should take care that every
material specified should be environment
friendly with respect to its manufacture, its use
and its ultimate disposal.
Likewise for every production process.
Both materials and process should not cause
harm to human beings at any stage of their life.
Modularization
Used to obtain variety and yet hold down the
cost
Modules are interchangeable and each different
combination gives a new variety of the product
Design simplification without compromise on
quality can reduce production costs

24
Legal issues vis a vis Product &
Service
Conforming to the laws of the land is
a vital factor in products/services at
all stage during their life cycle.
Any contravention of safety laws or
socio-political laws (such as
prohibition, smoking, public decency,
national interest) must be avoided by
taking due care during the design,
production, use and disposal stages.
Differences between Service
and Product Design
1. Products are generally tangible, services intangible
2. Services are created and delivered at the same time
3. Services cannot be inventoried
4. Services are highly visible to consumers
5. Some services have low barriers to entry and exit
6. Location is often important to service design, with
convenience as a major factor
7. Service systems range from those with little or no
customer contact to those that have a very high
degree of customer contact
8. Demand variability alternately creates waiting lines or
idle service resources

Instructor Slides 4-26


Delayed differentiation
It is a concept inSCM where the
manufacturing process starts by making
a generic or family product that is later
differentiated into a specific end-
product.
This is a widely used method, especially
in industries with high demand
uncertainty, and can be effectively used
to address the final demand even if
forecasts cannot be improved.

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