COURSE TITLE:
Operations Management (TQM)
Day 13, December 07, 2024
COURSE CODE: BUMA 011 CREDIT UNITS: 3 Units
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LESSON 5 – PRODUCT DESIGN
1. Reasons Design or Re-design
2. Legal Considerations
3. Life Cycle Assessment (LCA)
4. Product or Service Life Stage COURSE TITLE:
5. Designing for Mass Customization OperationsManagement(TQM)
6. Component Commonality COURSE CODE: BUMA 011
CREDIT UNITS: 3 Units
7. Reliability
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Overview:
➢An effective product strategy links product
decision with investment, market share, and
product life cycle and defines the breadth of the
production line.
➢The objective of the product decision is to develop
and implement a product strategy that meets the
demands of the marketplace with a competitive
advantage via differentiation, low cost, rapid
response, or a combination of these.
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Learning Outcome:
➢After the end of this lesson, students will be able
to:
1. Determine the interrelatedness of the product
design to a successful operation strategy.
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Product and Service Design:
1. Reasons Design or Re-Design
The driving forces for product and service design
or redesign are market opportunities or threats:
➢ Economic
➢ Social and Demographic
➢ Political, Liability, or Legal
➢ Competitive
➢ Cost or Availability
➢ Technological
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Key Questions
1. Is there a demand for it?
2. Can we do it?
3. What level of quality is appropriate?
4. Does it make sense from an economic
standpoint?
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Key Questions
1. Is there a demand for it?
➢ Market size
➢ Demand profile
2. Can we do it?
3. What level of quality is appropriate?
4. Does it make sense from an economic
standpoint?
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Key Questions
1. Is there a demand for it?
➢ Market size
➢ Demand profile
2. Can we do it?
➢ 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
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Key Questions
3. What level of quality is appropriate?
➢ Customer expectations
➢ Competitor quality
➢ Fit with current offering
4. Does it make sense from an economic
standpoint?
➢ Liability issues, ethical considerations,
sustainability issues, costs and profits
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Product and Service Design:
2. Legal Considerations
1. Product liability
a. The responsibility a manufacturer has for any
injuries or damages caused by as faulty product
b. Some of the concomitant/associated costs are:
➢ Litigation
➢ Legal and insurance costs
➢ Settlement costs
➢ Costly product recalls
➢ Reputation effects
2. Uniform Commercial Code
a. Under the UCC, products carry an implication of
merchantability and fitness
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2.1 Normative Behavior
1. Produce designs that are consistent with the
goals of the organization
➢ e.g., Do not compromise on quality, or cut
corners, even in areas that are not apparent
to the customer
2. Give customers the value they expect
3. Make health and safety a concern
➢Do not place employees, customers, or third
parties at risk because of faulty products and
services
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2.2 Sustainability
Using resources in ways that do not harm ecological
systems that support human existence.
1. Key aspects of designing for sustainability
➢ Life cycle assessment
➢ Reduction of costs and materials used
➢ Re-using parts of returned products
➢ Recycling
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Product and Service Design:
3. Life Cycle Assessment (LCA)
The assessment of the environmental impact of a
product or service throughout its useful life:
a. Focuses on such factors as,
➢ Global warming
➢ Smog formation
➢ Oxygen depletion
➢ Solid waste generation
b. LCA procedures are part of the ISO 14000
environmental management Procedures
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3.1 Reduce: Costs and Materials
Value analysis
1. Examination of the function of parts and
materials in an effort to reduce the cost and/or
improve the performance of a product
2. Common questions used in value analysis
➢ Could a less expensive part of material be used?
➢ Is the function necessary?
➢ Can the function of two or more parts be performed
by a single part?
➢ Can a part be simplified?
➢ Could product specifications be relaxed?
➢ Could standard parts be substituted for non-standard
parts?
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3.2 Re-Use: Remanufacturing
1. Refurbishing used products by replacing worn-out
or defective components
➢ Can be performed by the original manufacturer
or another company
2. Design for disassembly (DFD)
➢ Designing a product to that used products can
be easily taken apart
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3.3 Recycle
1. Recycling
a. Recovering materials for future use
➢ Applies to manufactured parts
➢ Also applies to materials used during
production
b. Why recycle?
➢ Cost savings
➢ Environmental concerns
➢ Design for recycling (DFR)
c. Design for recycling (DFR)
➢ Product design that takes into account the
ability to disassemble a used product to recover
the recyclable parts
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Other Considerations
1. Product or service life cycles
2. Standardization
3. Product or service reliability
4. Product or service robustness
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Product and Service Design:
4. Product or service life cycles
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Other Considerations
2. Standardization - Extent to which there is an absence of
variety in a product, service, or process
➢ Advantages of Standardization
1. Fewer parts to deal with in inventory & manufacturing
2. Reduced training costs and time
3. More routine purchasing, handling and inspection
procedures
4. Orders fillable from inventory
5. Opportunities for long production runs and
automation
6. Need for fewer parts justifies increased expenditures
on perfecting designs and improving
7. quality control procedures
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Other Considerations
2. Standardization - Extent to which there is an
absence of variety in a product, service, or process
➢ Disadvantages of Standardization
1. Designs may be frozen with too many
imperfections remaining.
2. High cost of design changes increases
resistance to improvements
3. Decreased variety results in less consumer
appeal.
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Product and Service Design:
5. Designing for Mass Customization
Mass customization
1. Delayed differentiation
2. Modular design
a. Reliability
b. Robust design
c. Degree of Newness
d. Phases in Design & Development
e. Idea Generation
f. Supply-Chain Based
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Product and Service Design:
5. Designing for Mass Customization
g. Competitor-Based
h. Research Based
i. Concurrent Engineering
j. Computer-Aided Design (CAD)
k. DFM and DFA
l. Component Commonality
m. The House of Quality
n. Kano Model
o. Service Design
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Product and Service Design:
5. Designing for Mass Customization
1. Delayed Differentiation:
➢ The process of producing, but not quite
completing, a product or service until customer
preferences are known
➢ It is a postponement tactic
✓Produce a piece of furniture, but do not stain
it; the customer chooses the stain
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2. Modular Design:
A form of standardization in which component
parts are grouped into modules that are easily
replaced or interchanged
➢ Advantages
✓ easier diagnosis and remedy of failures
✓ easier repair and replacement
✓ simplification of manufacturing and
assembly
➢ Disadvantages
✓ Limited number of possible product
configurations
✓ Limited ability to repair a faulty module; the
entire module must often be scrapped
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2.a. Reliability:
➢ The ability of a product, part, or system to
perform its intended function under a prescribed
set of conditions.
1. Failure - Situation in which a product, part, or
system does not perform as intended
2. Normal operating conditions - The set of
conditions under which an item’s reliability is
specified
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2.b. Robust design:
➢ A design that results in products or services that
can function over a broad range of conditions
➢ Pertains to product as well as process design
✓Consider the following automobiles:
o Ferrari 599
o Toyota Avalon
✓ Which is design is more robust?
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2.c Degree of Newness:
➢ Product or service design changes:
✓ Modification of an existing product or
service
✓Expansion of an existing product line or
service offering
✓Clone of a competitor’s product or service
✓New product or service
➢ The degree of change affects the newness of
the product or service to the market and to the
organization
✓Risks and benefits?
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2.d Phases in Design & Development:
1. Idea generation
2. Feasibility analysis
3. Product specifications
4. Process specifications
5. Prototype development
6. Design review
7. Market test
8. Product introduction
9. Follow-up evaluation
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2.f. Supply-Chain Based:
Ideas can come from anywhere in the supply
chain:
1. Customers
2. Suppliers
3. Distributors
4. Employees
5. Maintenance and repair personnel
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2.g. Competitor Based:
➢ By studying how a competitor operates and
its products and services, many useful ideas
can be generated
➢ Reverse engineering - Dismantling and
inspecting a competitor’s product to discover
product improvements
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2.h. Research Based:
Research and Development (R&D) – Organized efforts
to increase scientific knowledge or product
innovation
1. Basic research - Has the objective of advancing
the state of knowledge about a subject without
any near-term expectation of commercial
applications
2. Applied research - Has the objective of achieving
commercial applications
3. Development - Converts the results of applied
research into useful commercial applications.
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2.h. Research Based:
➢ By studying how a competitor operates and its
products and services, many useful ideas can be
generated
➢ Reverse engineering - Dismantling and inspecting
a competitor’s product to discover product
improvements
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2.i. Concurrent Engineering:
Bringing engineering design and manufacturing
personnel together early in the design
phase
1. May involve marketing and purchasing
personnel
2. Views of suppliers and customers may also be
sought
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2.j. Computer-Aided Design (CAD):
1. Product design using computer graphics
2. Advantages
✓ 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
3. CAD that includes finite element analysis (FEA)
can significantly reduce time to market
✓Enables developers to perform simulations that
aid in the design, analysis, and
commercialization of new products
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2.j. Computer-Aided Design (CAD):
1. Designers must take into account the production
capabilities
✓ Equipment
✓ Skills
✓ Types of materials
✓ Schedules
✓ Technologies
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2.j. Computer-Aided Design (CAD):
1. Ease of fabrication and/or assembly
2. It has important implications for Equipment
✓ Cost
✓ Productivity
✓ Quality
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2.k. DFM and DFA:
1. Design for manufacturing (DFM)
✓The designing of products that are compatible
with an organization’s abilities
2. Design for assembly (DFA)
✓Design that focuses on reducing the number of
parts in a product and on assembly methods
and sequence
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Product and Service Design:
6. Component Commonality
1. When products have a high degree of similarity
in features and components, a part can be used
in multiple products
2. Benefits:
✓ Savings in design time
✓ Standard training for assembly and
installation
✓ Opportunities to buy in bulk from suppliers
✓ Commonality of parts for repair
✓ Fewer inventory items must be handled
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2.l. Component Commonality:
1. When products have a high degree of similarity
in features and components, a part can be used
in multiple products
2. Benefits
✓ Savings in design time
✓ Standard training for assembly and
installation
✓ Opportunities to buy in bulk from suppliers
✓ Commonality of parts for repair
✓ Fewer inventory items must be handled
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2.m. The House of Quality:
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2.m. The House of Quality Sequence:
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2.n. Kano Model:
1. Basic quality
✓ Refers to customer requirements that have
only limited effect on customer satisfaction if
present, but lead to dissatisfaction if absent
2. Performance quality
✓ Refers to customer requirements that
generate satisfaction or dissatisfaction
proportion to their level of functionality and
appeal
3. Excitement quality
✓ Refers to a feature or attribute that was
unexpected by the customer and cause
excitement
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2.o. Service Design:
Begins with a choice of service strategy, which
determines the nature and focus of the service, and
the target market
1. Service – Something that is done to, or for, a
customer
2. Service delivery system – The facilities,
processes, and skills needed to provide a
service
3. Product bundle – The combination of goods
and services provided to a customer
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2.o. Service Design:
Begins with a choice of service strategy, which
determines the nature and focus of the
service, and the target market
✓ Key issues in service design
1. Degree of variation in service requirements
2. Degree of customer contact and involvement
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2.o. Service Design: Service Blueprint
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Product and Service Design:
7. Reliability
1. The ability of a product, part, or system to
perform its intended function under a
prescribed set of conditions
2. Reliability is expressed as a probability:
✓ The probability that the product or system
will function when activated
✓ The probability that the product or system
will function for a given length of time
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ACTIVITY:
1. What is the most important
driving force for product
design or redesign? Why?
2. How often do you think should
a company engage in newness
of their product? Why?
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ThankYou
MR. RUEL A. PILI, MBA
09066237364
piliruel@yahoo.com
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