Product and Service Design

Selected Slides from Jacobs et al, 9th Edition

Operations and Supply Management
Chapter 4
Edited, Annotated and Supplemented by
Peter Jurkat

4-2

Generic Product Development Process

Which of the other functions should be represented

on the multi-functional design team?

Variants/sub-processes of Generic Development Process

4-3

Economic Analysis of Project Development Costs

Using measurable factors
to help determine:
Operational design and
development decisions
Go/no-go milestones

Building a Base-Case
Financial Model
A financial model
consisting of major cash
flows
Sensitivity Analysis for
what if questions

Base-Case Cost Elements

Development cost: design,
testing, refinement
Production ramp-up
Marketing and support
Production
Sales Revenue

Yearly period spreadsheet

below modify for
quarterly periods

See Ch04_DevelopmentBaseCaseMPJ.xls

4-5

Designing for the Customer

House of Quality

Quality Function
Deployment

Ideal
Customer
Product

Value Analysis/
Value Engineering

Uses
Multi-functional teams from marketing, design engineering, and manufacturing
Voice of the customer
House of quality

4-6

Designing for the Customer:

The House of Quality for a Car Door

Doesnt leak in rain

No road noise

Water resistance

Accoust. Trans.
Window

X = Us
A = Comp. A
B = Comp. B
(5 is best)
1 2 3 4

Reduce energy
level to 7.5 ft/lb

10

5
4
3
2
1

B
A
X

BA
X

B
A
X

B
X
A

BXA

BA
X

AB

XAB
A XB
X A

Target values

The McGraw-Hill Companies, Inc., 2004

Competitive evaluation

No details given on how

X AB
the Importance weights
were developed see
following slides

Importance weights

Technical evaluation
(5 is best)

Strong positive
Positive
Negative
Strong negative

Maintain
current level

Easy to open

Maintain
current level

Reduce energy
to 7.5 ft/lb.

Stays open on a hill

Reduce force
to 9 lb.

Maintain
current level

Easy to close

Correlation:

Check force
on level
ground
Energy needed
to open door

Customer
Requirements (wants)

Door seal
resistance

Engineering
Characteristics
(hows)

Energy needed
to close door

Starts with wants/importance, then

hows/correlations, then calculate
X
importance, then all others X

Importance scale:
Strong = 9
Medium = 3
Small = 1

Can also get importance

weights by multiplying
customer importance by scale
weights and adding

Quality Function Deployment

Identify customer wants
Identify how the good/service will satisfy customer
wants
Relate customer wants to product hows
Identify relationships between the firms hows
Develop importance ratings
Evaluate competing products
Compare performance to desirable technical attributes
See http://www.qfdonline.com/

QFD House of Quality

4
Interrelationships
2

How to satisfy
customer wants
6

1
What the
customer
wants

3
1

Relationship
matrix

Competitive
assessment

Customer
importance
ratings

5
Target values

Technical
evaluation

Weighted
rating

May need to iterate through these several times

House of Quality Example

Interrelationships

What the
Customer
Wants

Technical
Attributes and
Evaluation

What the
customer
wants

Lightweight
Easy to use
Reliable
Easy to hold steady
Color correction

Relationship
Matrix

Analysis of
Competitors

How to Satisfy
Customer Wants

3
4
5
2
1

Customer
importance
rating
(5 = highest)

House of Quality Example

Interrelationships

Relationship
Matrix

Ergonomic design

Paint pallet

Auto exposure

Auto focus

Technical
Attributes and
Evaluation

Aluminum components

Low electricity requirements

What the
Customer
Wants

Analysis of
Competitors

How to Satisfy
Customer Wants

How to Satisfy
Customer Wants

House of Quality Example

Interrelationships

What the
Customer
Wants

Relationship
Matrix

High relationship (5)

Medium relationship (3)
Low relationship (1)

Lightweight
Easy to use
Reliable
Easy to hold steady
Color corrections

3
4
5
2
1

1
1
3

Relationship matrix

Technical
Attributes and
Evaluation

1
3

3
5
5

Analysis of
Competitors

How to Satisfy
Customer Wants

House of Quality Example

Interrelationships

What the
Customer
Wants

Relationship
Matrix

Ergonomic design

Paint pallet

Auto exposure

Auto focus

Aluminum components

Relationships
between the
things we can do

Low electricity requirements

Technical
Attributes and
Evaluation

Analysis of
Competitors

How to Satisfy
Customer Wants

House of Quality Example

Interrelationships

What the
Customer
Wants

importance

Lightweight
Easy to use
Reliable
Easy to hold steady
Color corrections

Our importance ratings

Weighted
rating

3
4
5
2
1

Relationship
Matrix

relationship strength
1

Technical
Attributes and
Evaluation

3
3

3
5
5

22

27 27

32

25

Multiply importance X relationship

strength and add column products

Analysis of
Competitors

How to Satisfy
Customer Wants

Interrelationships

House of Quality Example

Technical
Attributes and
Evaluation

How well do
competing products
meet customer wants
Lightweight
Easy to use
Reliable
Easy to hold steady
Color corrections
Our importance ratings

3
4
5
2
1
22

Company B

Relationship
Matrix

Company A

What the
Customer
Wants

Analysis of
Competitors

How to Satisfy
Customer Wants

G
G
F
G
P

P
P
G
P
P

G for Good, F for Fair, P for Poor

Interrelationships

House of Quality Example

2 circuits

2 to

75%

Target
values
(Technical
attributes)

0.5 A

Technical
Attributes and
Evaluation

Panel ranking

Relationship
Matrix

Failure 1 per 10,000

What the
Customer
Wants

Analysis of
Competitors

How to Satisfy
Customer Wants

Company A 0.7 60% yes 1

ok G

Technical
evaluation Company B 0.6 50% yes 2
Us
0.5 75% yes 2

ok F
ok G

Company B

Lightweight

G P

Easy to use

G P

Reliable

F G

Easy to hold steady 2

G P

Color correction

Panel ranking

Failure 1 per 10,000

2 to

75%

0.5 A

Target values
(Technical
attributes)

2 circuits

Our importance ratings 22 9 27 27 32 25

Iterate until consensus is

reached by panel. Then
make Hows the Wants in the
next QFD

Company A

Ergonomic design

Paint pallet

Auto exposure

Auto focus

Aluminum components

Completed
House of
Quality

Low electricity requirements

House of Quality Example

Company A

0.7 60% yes

ok

Technical
Company B
evaluation

0.6 50% yes

ok

0.5 75% yes

ok

Us

House of Quality Sequence

Deploying resources through the
organization in response to
customer requirements
Quality
plan

Customer
requirements

House
1

House
2

House
3

Production
process

Design
characteristics

Design
characteristics

Specific
components

Specific
components

Production
process

House
4

Figure 5.4

QFD Class Exercise

Each team should have come with an idea for
a new product or service design
Pair with another team and interview them
about What the customer wants from the
product or service
Complete QFDs = House of Quality through
two iterations
Submit report in Session3 including
considerations in the rest of this slide set
For further details and tools for QFD see QFD Online

4-19

Designing for the Customer:

Value Analysis/Value Engineering

Achieve equivalent or better performance at

a lower cost while maintaining all functional
requirements defined by the customer
Does the item have any design 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?

4-20

First Design

Value
Engineered
Design

4-21

Measuring Product Development Performance

Performance
Dimension
Time-to-market

Productivity

Quality

Measures
Freq. Of new products introduced
Time to market introduction
Number stated and number completed
Actual versus plan
Percentage of sales from new products
Engineering hours per project
Cost of materials and tooling per project
Actual versus plan

Conformance-reliability in use
Design-performance and customer satisfaction
Yield-factory and field