De La Salle LipaMaster in Management Technology

Joseph Winthrop B. GodoyMMT – Batch 36

Product Design

*Companies choose various ways to design their products and the type of services they provide. Which include: standardization, mass customization, delayed differentiation, modular design, and robust design. Deciding which method to use is very important along with deciding the company's target market. Deciding the right method, establishes good productivity and efficient way of operations.

Product Design

*Major factors in design strategy*Cost*Quality*Time-to-market (Timing)*Customer satisfaction*Competitive advantage

Product Design

Product design – or redesign – should be closely tied to an organization’s strategy

• Increased emphasis on or attention to:– Customer satisfaction

– Reducing time to introduce new product – Reducing time to produce product

– The organization’s capabilities to produce or deliver the item

– Environmental concerns

– Designing products that are “user friendly”

– Designing products that use less material

Trends in Product Design

Other Important Trends  Companies have switched from ignoring operations

strategy to recognizing the importance of incorporating strategies into their business decisions.

Companies have reduced the number of workers and have made their companies operate more efficiently by placing an emphasis on cost control and productivity improvement.

Companies use revenue management to manipulate prices and influence demand to maximize revenues.

Trends in Product Design

Product Design Activities*Translate customer wants and needs into product requirements*Refine existing products *Develop new products *Formulate quality goals*Formulate cost targets*Construct and test prototypes*Document specifications

Reasons for Product Design

*Economic*Social and demographic*Political, liability, or legal*Competitive*Technological

Objectives of Product Design*Main focusCustomer satisfaction

*Secondary focusFunction of productCost/profitQualityAppearanceEase of production/assemblyEase of maintenance/service

Designing For Operations

*Taking into account the capabilities of the organization in designing goods.

Designers Adhere to Guidelines

*Produce designs that are consistent with the goals of the company*Give customers the value they expect*Make health and safety a primary concern*Consider potential harm to the environment

Standardization

*Standardization *Extent to which there is an absence of variety in a product

*The degree of Standardization?*Standardized products are immediately available to customers

Calculators & Cellphones

Advantages of Standardization

*Fewer parts to deal with in inventory and manufacturing*Design costs are generally lower*Reduced training costs and time*More routine purchasing, handling, and inspection procedures

Advantages of Standardization (Cont’d)

*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 results in less consumer appeal.

Mass Customization

•Mass customization:*A strategy of producing standardized goods, but incorporating some degree of customization*Delayed differentiation*Modular design

Modular DesignModular design is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged. It allows:* easier diagnosis and remedy of

failures* easier repair and replacement * simplification of manufacturing

and assembly

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 item’s reliability is specified

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

Product Design*Product Life Cycles*Robust Design*Concurrent Engineering*Computer-Aided Design*Modular Design

Life Cycles of Products

Time

Introduction

Growth

Maturity

Saturation

Decline

Dem

and

Design for low volume

Flash memory

Compact discs

cassettes

The Four stages are:

1. Introduction: During the first stage, the product is introduced into the market. Proper research and forecasting should be done to ensure the product/service is adequate for a specific market and for a specific time. It is crucial to have a proper amount of supply that can meet the expected demand for the product/service.

Life Cycles of Products

The Four stages are:

2. Growth: The second stage involves the increase in demand for the product/service. Reputation for the product grows and an accurate forecast of demand is needed to determine the length of time the product/service will remain in the market. Enhancements and improvements are common in this stage..

Life Cycles of Products

The Four stages are:

3. Maturity/Saturation: This third stage deals with the product reaching a steady demand. Few or no improvements or product changes are needed at this stage. Forecasting should provide an estimate of how long it will be before the market dies down, causing the product to die out..

Life Cycles of Products

The Four stages are:

4. Decline: The last stage involves choosing to discontinue the product/service, replacing the product with a new product, or finding new uses for the product.

Life Cycles of Products

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

Robust Design

Degree of Newness

1.Modification of an existing product

2.Expansion of an existing product

3.Clone of a competitor’s product

4.New product

Phases in Product Development Process

1. Idea generation2. Feasibility analysis3. Product specifications4. Process specifications5. Prototype development6. Design review7. Market test8. Product introduction9. Follow-up evaluation

Idea Generation

Ideas Competitor based

Supply chain based

Research based

Reverse Engineering

Reverse engineering is thedismantling and inspecting of a competitor’s product to discover product improvements.

Research & Development (R&D)

*Organized efforts to increase scientific knowledge or product innovation & may involve:*Basic Research advances knowledge about a subject without near-term expectations of commercial applications.

*Applied Research achieves commercial applications.

*Development converts results of applied research into commercial applications.

Manufacturability*Manufacturability is the ease of fabrication and/or assembly which is important for:*Cost*Productivity*Quality

Concurrent Engineering

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

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 and cost analysis on proposed designs

*Recycling: recovering materials for future use*Recycling reasons*Cost savings*Environment concerns*Environment regulations

Recycling

Service Design

*refers to an act (intangible)*something that is done for the customer

Service Design

*the facilities, processes and skills needed to provide a service

Service Delivery System

*the combination of goods and services provided to a customer

Product Bundle

*the physical resources needed to perform a service (ex. Accompanying goods, implicit and explicit services)

Service Package

Service Plan Choose Service Strategy Determine Target Market Implementation

*oftentime created and at the same time delivered (ex. Haircut, massage)*highly visible to customers

Services

Service blue-printing a method used in a service design to describe and analyze a proposed service

 Characteristics of a well-designed service system

Consistent with organization’s mission-vision

User friendly Sustainability Cost-effective

Phases

Challenges of service design less likely to be encountered compared with product design

Phases

*Define the service package in detail*Focus on the operation from a customer perspective*Consider the image that the service package will present*Involvement of Managers

Guidelines for a successful service design

*Recruitment, training and rewards are consistent with service expectations*Procedures are established to handle predictable and unpredictable events*Monitor, maintain, improve

Guidelines for a successful service design