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Irwin/McGraw-Hill 1
The Product Design Process
Concept Development
Product Planning
Product/Process Engineering
Pilot Production/Ramp-Up
2
Irwin/McGraw-Hill 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. A
B = 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)
5
4
3
2
1
B
A
X
BA
X B
A
X
B
X
A
BXABA
X
Engineering Characteristics
En
erg
y n
eed
ed
to c
lose
do
or
Ch
eck
forc
e o
n
leve
l gro
un
d
En
erg
y n
eed
ed
to o
pen
do
or
Wat
er r
esis
tan
ce
Do
or
seal
re
sist
ance
Acc
ou
st. T
ran
s.W
ind
ow
Target values
Importance weighting 10 6 6 9 2 3
Red
uce
en
erg
y le
vel t
o 7
.5 f
t/lb
Red
uce
fo
rce
to 9
lb.
Red
uce
en
erg
y t
o 7
.5 f
t/lb
.
Mai
nta
incu
rren
t le
vel
Mai
nta
incu
rren
t le
vel
Mai
nta
incu
rren
t le
vel
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
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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
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
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
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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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IV.Continuous
Flow
III.Assembly
Line
II.Batch
I.Job
Shop
LowVolumeOne of a
Kind
MultipleProducts,
LowVolume
FewMajor
Products,HigherVolume
HighVolume,
HighStandard-
ization
CommercialPrinter
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 MatrixExhibit 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 4.13Exhibit 4.13
©The McGraw-Hill Companies, Inc., 1998 12
Assemble Drawing
____________________________________________________________
Operations Management, Roger Schroeder, 1985 12b
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Example: Process Flow Chart
InspectMaterial for
Defects
Return toSupplier for
Credit
Buffer: MaterialReceived
FromSupplier Defects
Found?
Yes
No, Continue…
13
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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 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 MatrixExhibit 6.7Exhibit 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 BlueprintingBrushshoes
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)
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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 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?
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Service Recovery - How it Works
Process Identification
Incidents
Remedies
Cost of Incident
Measurement of Frequency
CustomerIdentification
MissionStatement
Cost ofPoor Quality
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Service Failsafing: Poka-Yokes
Keeping a mistake from becoming a service defect.
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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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