___________________________________ 

___________________________________ 
PMBA8155 Operations Management
___________________________________ 

___________________________________ 

Product and ___________________________________ 

Service Design
___________________________________ 

___________________________________ 

___________________________________ 

___________________________________ 
Learning Objectives
___________________________________ 
 Understand
___________________________________ 
 Product and Service Design Process
 Ways to Improve Product Design ___________________________________ 
 Concurrent engineering
 Quality function deployment
___________________________________ 
 House of Quality
 Value engineering/value analysis
___________________________________ 

___________________________________ 

___________________________________ 
Importance of Product Design
___________________________________ 

 Good/effective design can provide a ___________________________________ 

competitive edge
___________________________________ 

___________________________________ 

 Bad design can damage a company’s ___________________________________ 

reputation and …
 www.baddesigns.com

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 ___________________________________ 

New Product Development Impacts ___________________________________ 

Key Measures of Business Performance
___________________________________ 

___________________________________ 

___________________________________ 

___________________________________ 

___________________________________ 

___________________________________ 

___________________________________ 
What Is Good Design?
___________________________________ 
 Useful: It works well and functions as promised
___________________________________ 
 Usable: It has appropriate ergonomics and user
interface
___________________________________ 
 Desirable: It looks good!
 Producible: It should be capable of economical ___________________________________ 
volume manufacture
 Profitable: It should result in sufficient business ___________________________________ 
rewards
 Differentiated: It is different than existing
products
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___________________________________ 

___________________________________ 
Product Design Process
___________________________________ 
 Concept Development ___________________________________ 

___________________________________ 
 Product Planning
___________________________________ 
 Detailed Engineering
___________________________________ 

 Production Ramp-up

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 ___________________________________ 
Benefits of
___________________________________ 
Introducing New Products Faster
___________________________________ 
 Greater Market Share ___________________________________ 

 Price Premiums ___________________________________ 

___________________________________ 
 Quick Reaction to Competition
___________________________________ 
 Set Industry Standards

___________________________________ 
Improving Product Design
___________________________________ 
Concurrent Engineering
___________________________________ 
 Definition ___________________________________ 
 cross-functional coordination, integration,
and simultaneous development of product ___________________________________ 

___________________________________ 
 Benefits
 reducing time to market ___________________________________ 
 decreasing cost
 improving quality and reliability

___________________________________ 
Traditional Design vs. ___________________________________ 
Concurrent Design
___________________________________ 
Traditional design: walls between functional areas
___________________________________ 

___________________________________ 

customers Design Manuf.

Marketing
Engineers Engineers Production ___________________________________ 

___________________________________ 

Concurrent design: break down the walls between

functional areas
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 ___________________________________ 

___________________________________ 
First to Market vs. Best to Market
___________________________________ 
 Which one is better?
___________________________________ 

___________________________________ 

___________________________________ 

___________________________________ 

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___________________________________ 
Improving Product Design
___________________________________ 
Designing For Customer
___________________________________ 
 User Centered Design
___________________________________ 
Donald A. Norman—2006 Benjamin Franklin Medal
___________________________________ 

___________________________________ 

___________________________________ 

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___________________________________ 
Improving Product Design
___________________________________ 
Designing For Customer
___________________________________ 

___________________________________ 

___________________________________ 

___________________________________ 
Ideal
Quality Function Value Analysis/
Deployment— Customer Value Engineering ___________________________________ 
House of Quality Product

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 ___________________________________ 
Designing For The Customer
___________________________________ 
Quality Function Deployment
___________________________________ 
 Translate the “voice of the customer” into ___________________________________ 
technical design requirements
___________________________________ 
 Use interfunctional teams from marketing,
___________________________________ 
engineering, and manufacturing
___________________________________ 
 Basic tool--House of Quality

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___________________________________ 
Designing for the Customer ___________________________________ 
House Of Quality
5. Tradeoff ___________________________________ 
Matrix
___________________________________ 
Importance 3. Product
characteristics
___________________________________ 

___________________________________ 
1. Customer 4. Relationship 2. Competitive
requirements matrix assessment
___________________________________ 

6. Technical assessment and

target values
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Correlation:
House of Quality: X Strong positive ___________________________________ 
5 Positive
An Example X X
X Negative
X X
* Strong negative ___________________________________ 
Engineering
Water resistance
Accoust. Trans.
Check force on
Energy needed

Energy needed

Characteristics Competitive evaluation

to close door

to open door
resistance

level ground
Door seal

3 X = Us
___________________________________ 
Window

A = Comp. A
Customer B = Comp. B
(5 is best)
Requirements
1 2 3 4 5

Easy to close 7 X AB ___________________________________ 

Stays open on a hill 5 X AB

1 Easy to open 3 XAB

2 ___________________________________ 
Doesn’t leak in rain 3 A XB

No road noise 2
4 X A B
___________________________________ 
Importance weighting 10 6 6 9 2 3 Relationships:
Strong = 9 ___________________________________ 
level to 7.5 ft/lb
Reduce energy

Reduce energy

Medium = 3
Reduce force
current level

current level

current level

Target values
to 7.5 ft/lb.

Small = 1
Maintain

Maintain

Maintain
to 9 lb.

Technical evaluation
6 5
4
B
BA
X B
B BXA
BA
X
A A X
(5 is best) 3
2 X A
1
X 15
 ___________________________________ 
Designing for the Customer ___________________________________ 
Value Analysis/Value Engineering
___________________________________ 
 Achieve equivalent or better performance ___________________________________ 
at a lower cost while maintaining all
functional requirements specified by the ___________________________________ 
customer
___________________________________ 
 Does the item have any features that are not
necessary?
___________________________________ 
 Can two or more parts be combined into one?
 How can we cut down the weight?
 Are there nonstandard parts that can be eliminated?
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___________________________________ 
Improving Product Design
___________________________________ 
Design for Manufacturing & Assembly
___________________________________ 
 Simplification of the product by reducing ___________________________________ 
the number of separate parts
___________________________________ 
 Guidelines ___________________________________ 
 Simplification (fewer parts)
___________________________________ 
 Standardization (more standard parts)
 Modular design (combining parts)

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___________________________________ 

___________________________________ 
Product vs. Service Design
___________________________________ 
 Product design  Service design ___________________________________ 
 defines appearance of  specifies what physical
product items, sensual benefits, ___________________________________ 
 sets standards for and psychological
performance benefits customer is to ___________________________________ 
receive from service
 specifies which
materials are to be used  defines environment in ___________________________________ 
 determines dimensions
which service will take
and tolerances place

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 ___________________________________ 
Service Characteristics and Their ___________________________________ 
Implications on Service Design
___________________________________ 

Characteristics Implications ___________________________________ 

• intangible • Focus on intangible factors ___________________________________ 

• can not be inventoried • Capacity planning, flexibility critical
• Less latitude to make mistake
___________________________________ 
• high customer contact
• highly visible to consumers • Problem prevention, process
___________________________________ 
layout, and customer relations
• production concurrent with
• Location
consumption
• labor intensive • Employee treatment and training
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___________________________________ 
Service ___________________________________ 
Design
Process ___________________________________ 

___________________________________ 

___________________________________ 

___________________________________ 

___________________________________ 

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___________________________________ 

___________________________________ 
Case: IKEA
___________________________________ 
 IKEA’s competitive priorities ___________________________________ 
 IKEA’s new product developing process
___________________________________ 
 Additional features beyond their design
process that help create exceptional ___________________________________ 
value for their customers
___________________________________ 
 Important criteria for selecting a site

21