9/24/2024

Khulna University
MBA 1st year, 2nd term

Operations and Supply Chain Management

(0413 03 MBA 5217)
Week 2 (Product and Service Design)

By
Dr. ATM Jahiruddin

Concept of a Product
• Product is anything that is offered for sell
• A product is a solution that a customer may want to
pay for
• A product is any tangible or intangible offering to the
market to satisfy customers’ needs and wants in
exchange of money
• Differences between Physical products (goods) and
intangible products (service) were discussed earlier

1
 9/24/2024

Product design Introduction 1

• New products are the life blood of an organization

• Make most of the technological advancement
• Enables to cope up with dynamic business world and
customer’s choice
• A critical tool for competitive advantage:
− matches product or service characteristics with customer
requirements
− ensures that customer requirements are met in the simplest
and least costly manner
− reduces time required to design a new product or service
− minimizes revisions necessary to make a design workable

Product design Introduction 2

• When a product/service is designed:

− The detailed characteristics of the product/service are
established.
− The characteristics of the product/service directly affects
how the product/service can be produced/ delivered.
− How the product/service is produced/delivered
determines the design of the production/delivery system.
• A challenging process because:
− it encourages companies to look outside their
boundaries
− bring in new ideas, challenge conventional thinking, and
experiment.
4

2
 9/24/2024

Product design process (p. 157)

Supplier R&D Competitors
Customer Design firm

Innovation
Idea generation
Product concept

Feasibility study
Performance specification

Rapid
Form Design
Prototyping

Functional Design Production Design

Design specification Manufacturing /
delivery specification
Pilot run and final test
Final design and process plan

New product launch 5

Design process- idea generation (p. 158)

• Company’s own R&D • Salespersons in the

department field
• Customer complaints • Factory workers
or suggestions • New technological
• Marketing research developments
• Suppliers • Competitors

• Three way of idea generation from the competitors

– Perceptual map
– Benchmarking
– Reverse engineering
6

3
 9/24/2024

Design from competitors – perceptual map

• A visual method of comparing customer perceptions
of different products or services. (p. 159)

Design from competitors -1

• Benchmarking
• comparing product/process against best-in-class
• Examples of the bests in different business lines
• Disney World, employee commitment; Federal Express, speed;
McDonald’s, consistency
• Reverse engineering
• dismantling competitor’s product to improve your own
product
• Taurus automobile 400 features of competitors’ products and
copying, adapting, or enhancing more than 300 of them
• Audi’s accelerator pedal, Toyota’s fuel-gauge accuracy, BMW’s
tire

4
 9/24/2024

Feasibility study 1 (p. 160)

• A product is worth designing if it is:
• accepted in the market
• Within the financial and technical capacity of the company
• The promising concepts therefore need to undergo a
feasibility study which consists of a market analysis, an
economic analysis, and a technical/strategic analysis.
• Feasibility study determine the advisability of
establishing a project for developing the product

Feasibility study 2 (p. 160)

• Feasibility study entails three basis analyses:

− Market analysis
− Economic analysis
− Technical analysis

10

5
 9/24/2024

Feasibility study 3

• Market analysis:
− An assessment of if the product will be accepted by the
customer, viz a viz, if it can generate enough demand for the
proposed product to invest in developing it further
− Entails rigorous market research thorough Market analysis,
customer surveys, interviews, focus groups, or market tests.
• Economic analysis:
− Estimating production and development costs and compares
them to estimated sales volume.
− Use of cost/benefit analysis, decision theory, net present
value, or internal rate of return

11

Feasibility study 4

• Technical/strategic analyses
− Does the new product require new technology?
− Is the risk or capital investment excessive?
− Does the company have sufficient labor and management
skills to support the required technology?
− Is sufficient capacity available for production? Does the new
product provide a competitive advantage for the company?
− Does it draw on corporate strengths?
− Is it compatible with the core business of the firm?
• Performance specifications
− what the product should do to satisfy customer needs
12

6
 9/24/2024

Prototype design 1 (p. 160)

• If initial feasibility studies are favorable, engineers

prepare an initial prototype design
• Prototype is an initial model of the actual product
prepared by transforming the product concept into a
physical product with technical design

13

Prototype design 2
• Steps
− Build a prototype
• form design
• functional design
• production design
− Test prototype
− Revise design
− Retest
• Continues until a viable design is determined

14

7
 9/24/2024

Prototype design 3 – design approach

• Rapid and Concurrent design
− Rapid prototyping is creating preliminary design models that
are quickly tested and either discarded (as fast failures) or
further refined.
− The models can be physical or electronic, rough facsimiles or
full-scale working models.
− Concurrent design approach is adopted for rapid
prototype designing
− A process of jointly and iteratively developing a design
− Design team includes members from all functional areas
(sales, manufacturing, quality, marketing, finance etc)
− Design decisions overlap and early changes in the design are
less disruptive than those made late in the process
15

Concurrent and Sequential design (p. 161)

16

8
 9/24/2024

Prototype design 4 – design approach

• Sequential design (p. 161)
− A step by step conventional approach of product design
− A linear process where every department perform their
designated activities in the design process separately
− Time consuming but thorough process
− Conventional approach

• Different Aspects/ Types of concurrent design (p. 161)

− Form design
− Functional design
− Production design

17

Form Design (p. 161)

• How the product will look

• Design of the visual aspects like shape, color, size, and
style. Aesthetics such as image, market appeal, and
personal identification etc
• Closely related to the decisions on functional design,
i.e functional design must be adjusted to make the
product look or feel right

18

9
 9/24/2024

Functional Design 1 (p. 161)

• Concerned with how the product performs.

• Seeks to meet the performance specifications of
fitness for use by the customer.
• Three performance characteristics considered
during this phase of design are:
• Reliability
• Maintainability, and
• Usability.

19

Functional Design 2

• Reliability
• Is the probability that a product will perform its intended
function for a specified period of time in a normal condition.
• Example: An AC will work well during the warranty period
• Specified period of time is often indicated by the warranty
period
• A product or system’s reliability is a function of the
reliabilities of its component part
• If all parts must function for the product or system to
operate, then the system reliability is the product of the
component part reliabilities.
• Rs = (R1)(R2). . .(Rn), where Rn is the reliability of the nth
component.

20

10
 9/24/2024

Functional Design 3

• Computing Reliability

Components in parallel

0.90
R2

0.95 0.95 + 0.90(1-0.95) = 0.995

R1
21

Functional Design 4

• Computing Reliability 2

Components in parallel

0.90
R2

0.95 0.95 + 0.90(1-0.95) = 0.995

R1
22

11
 9/24/2024

Functional Design 5

• Computing Reliability 3

0.90

0.98 0.92 0.98

0.98 0.92+(1-0.92)(0.90)=0.99 0.98

0.98 x 0.99 x 0.98 = 0.951

23

Functional Design 6 (p. 161)

• Maintainability
• Refers to the ease and/or cost with which a product or
service is maintained or repaired.
• Products can be made easier to maintain by:
• assembling them in modules (like computers, so that entire
control panels, cards, or disk drives can be replaced when they
malfunction.)
• Quantitative measures of maintainability: Mean Time to
Repair (MTTR)
• Combined with the reliability measure Mean Time between
Failures (MTBF), the average availability of the functioning
system, which is known as Service availability (SA) can be
calculated:

24

12
 9/24/2024

Functional Design 7

MTBF
SA =
MTBF + MTTR

where:
MTBF = mean time between failures
MTTR = mean time to repair

Solve the problem in example 4.2, page 165

25

Functional Design 8

• Usability
• Refers to what makes a product or service easy to use and a
good fit for its targeted customer

Combinations of some factors such as:

• ease of use
• ease of remembering how to use
• frequency and severity of errors
• user satisfaction with experience

26

13
 9/24/2024

Production Design 1 p. 165

• Is concerned with how the product will be made.

• Designs that are difficult to make often result in poor-
quality products
• Often, manufacturing capabilities are overlooked In the
design phase, resulting in a misfit between product
feature and manufacturability
• Some times additional product features requires
complex production process which increases cost
• There should be a trade off between all the aspects

27

Production Design 2

• How the product will be made

– Simplification
– Standardization
– Modular Design
– Design for Manufacture (DFM)

• Simplification
– reducing number of parts, assemblies, or options in a
product
– It also means avoiding tools, separate fasteners, and
adjustments

28

14
 9/24/2024

Simplification example P. 166

(a) Original design (b) Revised design (c) Final design

Assembly using One-piece base & Design for push-

common fasteners elimination of and-snap
fasteners assembly

29

Production Design 3

• Standardization
– using commonly available and interchangeable
parts resulting in:
• higher-volume production and purchasing
• lower investment in inventory
• Easier purchasing and material handling
• fewer quality inspections, and
• fewer difficulties in production

• Gaining cost benefits of standardization without losing

the market advantage

30

15
 9/24/2024

Production Design 4

• Modular Design
– combining standardized building blocks, or
modules, to create unique finished products

• Design for Manufacture (DFM)

– Designing a product so that it can be produced easily
and economically
– Minimize the number of parts and subassemblies.
– Use standard parts when possible

31

Production Design 4

• Final design
− detailed drawings and specifications for new
product or service
• Process plans
− workable instructions
− necessary equipment and tooling
− component sourcing recommendations
− job descriptions and procedures
− computer programs for automated machines

32

16
 9/24/2024

Self study

• Technology in design (p. 167-168)

33

Technology in Design

• Computer Aided Design (CAD)

– assists in creation, modification, and analysis of a design
– computer-aided engineering (CAE)
• tests and analyzes designs on computer screen
– computer-aided manufacturing (CAD/CAM)
• ultimate design-to-manufacture connection
– product life cycle management (PLM)
• managing entire lifecycle of a product stores, retrieves, and updates
design data from the product concept, through manufacturing,
revision, service, and retirement of the product.
– collaborative product design (CPD)

4-34

17
 9/24/2024

Collaborative Product Design (CPD)

• A software system for collaborative design and

development among trading partners
• With PML, manages product data, sets up project
workspaces, and follows life cycle of the product
• Accelerates product development, helps to resolve product
launch issues, and improves quality of design
• Designers can
– conduct virtual review sessions
– test “what if” scenarios
– assign and track design issues
– communicate with multiple tiers of suppliers
– create, store, and manage project documents

4-35

Design Quality Review

• Review designs to prevent failures and ensure value

– Failure mode and effects analysis (FMEA)
• a systematic method of analyzing product failures
– Fault tree analysis (FTA)
• a visual method for analyzing interrelationships
among failures
– Value analysis (VA)
• helps eliminate unnecessary features and functions

4-36

18
 9/24/2024

FMEA for Potato Chips

Failure Cause of Effect of Corrective
Mode Failure Failure Action
Stale low moisture content tastes bad add moisture
expired shelf life won’t crunch  cure longer
poor packaging thrown out better package seal
lost sales shorter shelf life
Broken too thin can’t dip change recipe
too brittle poor display change process
rough handling injures mouth change packaging
rough use chocking
poor packaging perceived as old
lost sales
Too Salty outdated receipt eat less experiment with recipe
process not in control drink more experiment with process
uneven distribution of salt health hazard introduce low salt version
lost sales
Copyright 2011 John Wiley & Sons, Inc. 4-37

Fault Tree Analysis (FTA)

Copyright 2011 John Wiley &

4-38
Sons, Inc.

19
 9/24/2024

Value Analysis (VA)

• Eliminate unnecessary features and functions

• Used by multifunctional design teams
• Define essential functions of an item
• Determine the value of the functions
• Determine the cost of providing the functions
• Compute Value/Cost ratio
• Design team works to increase the ratio

Copyright 2011 John Wiley &

4-39
Sons, Inc.

Design for Environment and

Extended Producer Responsibility
• Design for environment
– designing a product from material that can be recycled
– design from recycled material
– design for ease of repair
– minimize packaging
– minimize material and energy used during manufacture, consumption
and disposal
• Extended producer responsibility
– holds companies responsible for their product even after its useful life

Copyright 2011 John Wiley &

4-40
Sons, Inc.

20
 9/24/2024

Design for Environment

Copyright 2011 John Wiley &

4-41
Sons, Inc.

Quality Function Deployment (QFD)

• Translates voice of customer into technical design

requirements
• Displays requirements in matrix diagrams
– first matrix called “house of quality”
– series of connected houses

Copyright 2011 John Wiley &

4-42
Sons, Inc.

21
 9/24/2024

House of Quality

Importance
Trade-off matrix

3
Design
characteristics

1 4 2

Customer Relationship Competitive

requirements matrix assessment

6 Target values

Copyright 2011 John Wiley &

4-43
Sons, Inc.

Competitive Assessment of
Customer Requirements
Competitive Assessment
Customer Requirements 1 2 3 4 5
Presses quickly 9 B A X
Removes wrinkles 8 AB X
Doesn’t stick to fabric 6 X BA
Irons
well

Provides enough steam 8 AB X

Doesn’t spot fabric 6 X AB
Doesn’t scorch fabric 9 A XB
Heats quickly 6 X B A
Automatic shut-off 3 ABX
safe to use
Easy and

Quick cool-down 3 X A B
Doesn’t break when dropped 5 AB X
Doesn’t burn when touched 5 AB X
Not too heavy 8 X A B

Copyright 2011 John Wiley &

4-44
Sons, Inc.

22
 Sons, Inc.
Sons, Inc.
Easy and Irons
safe to use well
to Design

Copyright 2011 John Wiley &

Copyright 2011 John Wiley &
Requirements

Characteristics
From Customer

Heats quickly

Not too heavy

Presses quickly

Quick cool-down
Automatic shut-off
Removes wrinkles

Doesn’t spot fabric

Doesn’t scorch fabric
Doesn’t stick to fabric
Provides enough steam
Customer Requirements

Energy needed to press

Doesn’t burn when touched

Doesn’t break when dropped
Weight of iron

4-46
4-45

-
Size of soleplate

+
Thickness of soleplate
Energy needed to press
-

Material used in soleplate

Weight of iron
-
+

-
Number of holes

+
Size of soleplate
+

Tradeoff Matrix

+
Size of holes
Thickness of soleplate
- -

+
+ + +
+

Flow of water from holes

Material used in soleplate
+ - - - +
- - +
+ +
+
- + + +

Time required to reach 450º

Number of holes
Time to go from 450º to 100º
Size of holes
Protective cover for soleplate
+ - - -

Flow of water from holes

+ + +
+
+ + +

Automatic shutoff
-

Time required to reach 450º F

+

Time to go from 450º to 100º

+
+ - +

-
-

Protective cover for soleplate

+
+ +

Automatic shutoff
+ + +
+

23
9/24/2024
 9/24/2024

A Series of Connected QFD Houses

Product
characteristics
requirements
Customer

Part
A-1 characteristics

characteristics
Product
Process
House A-2 characteristics
of
quality

characteristics
Parts A-3 Operations

Part
deployment

characteristics
Process
Process A-4
planning

Operating
requirements

Copyright 2011 John Wiley &

4-47
Sons, Inc.

Benefits of QFD

• Promotes better understanding of customer demands

• Promotes better understanding of design interactions
• Involves manufacturing in design process
• Provides documentation of design process

Copyright 2011 John Wiley &

4-48
Sons, Inc.

24