Chapter Five System Design
Chapter Five System Design
SYSTEM DESIGN
Introduction
In this chapter you will gain different reasons for product and
service design, as well as key questions that management should address,
such as how to translate customers’ wants and needs into a product and/or
services, redesigning the existing products and services, the need for the
development of new products and services, formulating the quality goals, as
well as cost targets, testing the system design, and lastly in documenting
specifications.
1. Is there a demand for these products and services? What are the
potentials of the market and what is the expected demand for it.
Idea Generation
1. Customer survey
2. Focus group discussion
3. Complaints
4. Unsolicited suggestions
Further, the need for the input from suppliers, distributors and employees,
this can be obtained through:
1. Interviews
2. Direct and indirect suggestions
3. Complaints
1. Pricing Strategies
2. Return policies
3. Warranties
4. Location Strategies
5. Added value services
6. Other processes and policies
Research and
Development
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Basic Applied
Research Research
Research and development efforts come with different components
as seen in Figure 5.1.
Human Factors
Cultural Factors
Since the first time the owner of McDonald’s open their first
restaurant in the US in 1955, they begin to penetrate around the world.
1. Cradle-to-Grave Assessment
2. End-to-Life Programs
3. Reduction of Costs and Material used
4. Reuse of Parts of Returned Products
5. Recycling
Cradle-to-Grave Assessment – this pertains to the valuation of the
environmental influence of a product or service throughout its useful life.
The goal of this assessment is to choose products or services that have less
environmental impact while taking into account the economic value or
consideration.
Recycle – pertains to the recuperating materials for future use. This implies
not only to factory-made parts but also includes materials used during the
production. Companies recycle for various reasons including:
1. Cost Savings
2. Environmental Concerns
3. Environmental Regulations
Degree of Standardization
Advantages
Disadvantages
Robust Design - Design that results in products or services that can function
over a wide range of settings.
Degree of Newness
Product and service design change can range from modification an existing
product or service to entirely making new product or service:
Source: www.npd-solutions.com/qfd.html
There are four phases of QFD approach which are presented in Figure 5.3
The Kano Model
1. Threshold Attributes (Basics) – these are the basic features that the
customers expect in a product and service.
2. Performance Attributes (Satisfiers) – this makes the customer
increase their enjoyment to the product or service.
3. Excitement Attributes (Delighters) – these are the surprise or
supplementary elements that give your product or service more
competitive edge than competitors.
Source: www.mindtools.com
As seen in the Figure 5.4, if a product's features don't encounter a
customer's Threshold Attributes, his or her satisfaction levels will be
relatively low. However, even if you fully carry on these, you won't influence
customers that much. Most products strive on Performance Attributes,
where a customer weighs up one product in contradiction of another and
judges’ satisfaction by the obtainability of various features. But she may
determine an Excitement Attribute that really demands to her, and gives
her extraordinary satisfaction, even if it isn't flawlessly implemented.
Feasibility Product
Analysis Specifications
Prototype Process
Development Specification
Follow-up Product
evaluation Introduction
Design review. At this phase, any essential changes are made or the project
is abandoned. Marketing, finance, engineering, design, and operations
cooperate to regulate whether to continue or abandon.
There are different design techniques that have better applicability for the
product design than that on service design.
Concurrent Engineering - Bringing engineering design and manufacturing
personnel together early in the design phase. There are various advantages
and disadvantages of this approach.
Advantage
Disadvantage
Production Requirements
Service Design
Service package – the physical resources needed to perform the service, the
supplementary goods, and the explicit and implicit services included.
1st Phase
Conceptualization 2nd Phase
Service Package 3rd Phase
Components
Determine 4th Phase
Performance
Specification Translate 5th Phase
performance
specification into Translate desgin
design specification specification into
delivery specification
Figure 5.6 Phases in Service Design
Design objectives based on customers perspective requires an
understanding of customers’ expectation and experiences in order to satisfy
the customers.
In deciding of what kind of capacity and how much is needed to match the
demand it should also consider the following:
1. Cost
2. Expected Return
3. Benefits and Risks
4. Sustainability Issues
5. Supply Chain requirements
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Determinant of Effective Capacity
1. Facility – the key for effective capacity is the size and provision for
expansion of the facility. Further, location, transportation cost and
how far the facility in the market, energy sources and labor forces is
also important.
2. Product and Service Factors – product and service design has greatly
affecting capacity planning. The ability to produce the item is
important. For instance, in a restaurant who have limited menu, the
possibility to deliver the service is much faster than those who have
numerous items in the menu. Further, if the dimension or the size
of a particular product or output is the same, it is easier to
standardize the process, methods and materials.
Strategy Formulation
Process Type
Moderate Batch
Volume Commercial
bakery
Classroom
lecture
High Repetitive
Volume Assembly line
Automatic car
was
Job Design
Specialization
Motivation
Method Analysis
It is a process of analyzing how the job is being done. The need for
method analysis can come from numerous sources:
Motion Study
4. Chart
Location Planning and Analysis
Location Options
Global Location
1. Trade Agreement
2. Technology
Benefits of Globalization
Disadvantage
1. Transportation Cost
2. Security Cost
3. Unskilled Labor
4. Import Restrictions
5. Criticisms
Risk
1. Political
2. Terrorism
3. Economic
4. Legal
5. Ethical
6. Cultural
General Procedures for Making Location Decisions
SYSTEM DESIGN
NAME DATE
SECTION SCORE
PART 1. IDENTIFICATION
Instruction. Identify the following by writing the correct answer in the space
provided.
1. Product Life-Cycle
2. The Kano Model
8. Degree of Newness
9. Taguchi’s Approach
PART 3. ESSAY
3. Discussed why human factors and cultural factors play a vital role in
product and service design or redesign?
4. Why there’s a need to consider legal and ethical factors in product
and service designing and redesigning?
7. What are the several of reasons why there is need for product and
service design and redesign?
8. What are the important questions that need to be answered in
considering product and service design and/or redesign?
Look for a company with an existing product and service and try to redesign their products
and/or services. Provide the following on a separate sheet of papers: