Course: Production Planning

and Inventory Management

Course Code: SCM-4705

TOPICS:
• PRODUCT AND SERVICES
• PRODUCT DESIGN PROCESS
• QUALITY FUNCTION
DEPLOYMENT
• HOUSE OF QUALITY
 The Design Process

The purpose of any organization is to provide products

and services to the customers. And organization can
gain a competitive edge through designs that bring
new ideas to the market.
Importance of Design:
Design can provide a competitive edge.
Design defines a firm’s customer, as well as its
competitors.
It is also the most obvious driver of change.
 The Design Process

Product design specifies which materials are to be

used.
Determines dimensions and tolerances.
Defines the appearance of the product.
Set standard for performances.

Service Design specifies what physical items,

sensual benefits, and psychological benefits that the
customer receive from the service.
 The Design Process

An effective design process:

Matches product or service characteristics with
customer requirements.
Ensure that customer requirements are met in the
simplest and least costly manner.
Reduces the time required to design a new product
or service.
Minimizes the revisions necessary to make design
workable.
The Design Process
 The Design Process

Idea Generation: The design process begins with

understanding and actively identifying customer
needs.
Feasibility Study: Consists of a market analysis,
an economic analysis and a technical/strategic
analysis.
Preliminary Design: Involves testing and
revising a prototype.
Form Design: Form design refers to the physical
appearance of a product.
 Functional Design

Functional design: Functional Design is concerned with

how the product performs.
Two performance characteristics considered during the
phase of design are :
1. Reliability
2. Maintainability

Reliability: The probability that a product will perform its

intended function for a specified period of time.
The system reliability is the product of the component part
reliabilities.
 Functional Design

Example:

Needed two parts of component

Each have the reliability of 0.90.

0.90 (R1) 0.90 (R2)

The reliability of the system is 0.90*0.90=0.81

What do you Understand from that?
 Functional Design

Failure of some components in a system is more

critical than others. To increase the reliability of the
individual parts (and thus the whole system),
redundant parts can be built in to back up a failure.
This components are said to operate in parallel.
0.90 (R2)
Backup

0.95 (R1)
Original
 Functional design

= 1-[(.05)(.10)]
= .995
What do you understand from that?
Reliability can also be expressed as the length of time a
product or service is in operation before it fails,
called the MTBF (Mean Time Between Failure).
MTBF is the reciprocal of the failure rate.
MTBF= 1/Failure Rate
 Functional Design

Example: If a laptop battery fails four times in 20

hours operation, what would be its failure rate and
its MTBF.

Failure Rate= 4/20

= 0.20
MTBF= 1/0.20
= 5 Hours
 Functional Design

Maintainability: Refers to the ease and/or cost with

which a product or service is maintained or repaired.
Also known as Service availability.

One quantitative measure of maintainability is mean

time to repair (MTTR).

SA (System Availability) = MTBF/(MTBF+MTTR)

How to determine Reliability

1. You will be given MTBF

(Expected Life Time)
2. You will be given Specific
Time to determine its
probability of either failure
or no failure
 How to determine Reliability

a. Here MTBF=4 Years, T=4 Years

So, P (no failure before 4 years)=
==
b. P (failure before 4 years)= =
c. P (no failure before 6 years)= =
 How to determine Reliability

Question: What is the probability that the satellite described in above problem will
fail between 5 and 12 years after being placed into earth orbit?

Answer: We need to find out: P (5 years < failure < 12 years)

P (no failure before 5 years) = P (failure after 5 years)
P (5 years < failure < 12 years) = P (no failure before 5 years) - P (no failure before
12 years)
=
=
 How to determine Reliability

P (no failure before 5 Years)=

P (no failure before 12 Years)=

5 Years 12 Years

P (5 years < failure < 12 years) = P (no failure

before 5 years) - P (no failure before 12 years)
=
=

5 Years 12 Years
 Dimension of Quality (Product)

Performance – Main characteristics of the product

Aesthetics – Appearance, feel, smell, taste
Special features – Extra characteristics
Conformance – How well a product corresponds to
design pattern
Reliability – Consistency of performance
Durability – The useful life of the product
Perceived quality – Indirect evaluation of the quality
Serviceability – Handing of complaints or repairs
 QFD (Quality Function Deployment)

QFD translates the voice of the customer into technical

design requirements.
QFD uses a series of matrix diagram (also called
quality tables) that resemble connected houses.

Benefits of QFD:
Customer driven.
Reduces implementation time.
Promotes teamwork.
Provides documentation.
 QFD

Customer driven:
Creates Focus On Customer Requirements
Uses Competitive Information Effectively
Prioritizes Resources
Identifies Items That Can Be Acted On
Structures Resident Experience/Information
Reduce Implementation Time:
Decreases Midstream Design Change
Limits Post Introduction Problems
Avoids Future Development Redundancies
Identifies Future Application Opportunities
Surfaces Missing Assumptions
 QFD

Promotes Team Work:

Based On Consensus
Creates Communication At Interfaces
Identifies Actions At Interfaces
Creates Global View-Out Of Details
Provides Documentation:
Documents Rationale For Design
Is Easy To Assimilate
Adds Structure To The Information
Adapts To Changes (Living Document)
Provides Framework For Sensitivity Analysis
 QFD

Collecting Customer Information

What Does Customer Really Want ?

What Are Customer’s Expectations ?
Are Customer’s Expectations Used To Drive Design
Process ?
What Can Design Team Do To Achieve Customer
Satisfaction?
QFD
 Building a House of Quality

List Customer Requirements (What’s)

Prioritize Customer Requirements
List Technical Descriptors (How’s)
Develop Relationship (What’s & How’s)
Develop Interrelationship (How’s)
Competitive Assessments
Prioritize Technical Descriptors
 Building a House of Quality

Relationship Matrix
Relationship between
Customer
Requirements and
Technical Descriptors
WHATs vs. HOWs

+9 STRONG

+3 MEDIUM

+1 WEAK
QFD
 QFD Summary

 Orderly Way Of Obtaining Information & Presenting It

 Shorter Product Development Cycle
 Considerably Reduced Start-Up Costs
 Fewer Engineering Changes
 Reduced Chance Of Oversights During Design Process
 Environment Of Teamwork
 Consensus Decisions
 Preserves Everything In Writing