Second Chapter: Product and Service Design

1. Define product design and service design.

Product design: Product design describes the process of imagining, creating, and iterating
products that solve users’ problems or address specific needs in a given market.
The key to successful product design is an understanding of the end-user customer, the person
for whom the product is being created. Product designers attempt to solve real problems for
real people by using both empathy and knowledge of their prospective customers’ habits,
behaviors, frustrations, needs, and wants.

Service design: Service design is the activity of planning and organizing people,
infrastructure, communication and material components of a service in order to improve its
quality and the interaction between service provider and customers. The purpose of service
design methodologies is to design according to the needs of customers or participants, so that
the service is user-friendly, competitive and relevant to the customers.

2. What are the reasons for product or service design or redesign?

Product and service design has typically had strategic implications for the success and
prosperity of an organization. Furthermore, it has an impact on future activities. Consequently,
decisions in this area are some of the most fundamental that managers must make.
Organizations become involved in product and service design or redesign for a variety of
reasons. The main forces that initiate design or redesign are market opportunities and threats.
The factors that give rise to market opportunities and threats can be one or more changes:
a. Economic (e.g., low demand, excessive warranty claims, the need to reduce costs).
b. Social and demographic (e.g., aging baby boomers, population shifts).
c. Political, liability, or legal (e.g., government changes, safety issues, new regulations).
d. Competitive (e.g., new or changed products or services, new advertising/promotions).
e. Cost or availability (e.g., of raw materials, components, labor, water, energy).
f. Technological (e.g., in product components, processes).
3. What are the factors affecting product design?

There are several factors that affect the design of a product. A product designer must consider
these factors before designing the product in order to create winning designs. These factors are
as follows:

1. Customer requirements: The end users or customers are the ones that would leverage the
product. So, due respect should be given to their requirements before designing a product. The
designers should make sure that the product is ergonomically designed so that the customers
can use it conveniently in all conditions.

2. Facilities for the operators: It is the task of product designers to ensure that the operators
can effortlessly perform the intended operations using the product. The product should be
integrated with all the essential features and facilities that make its operation simple and
comfortable. If the product design is complicated, then the operator may become tired and be
less productive. So, the product should be designed in such a way that it is easy to handle and
operate.

3. Functionality: A product should be designed in such a way that it yields 100% customer
satisfaction. For this, the designer must ensure that the product is functioning optimally and is
meeting the purpose for which it is designed. There should be sync between the appearance of
the product and its functionality to the customers.

4. Cost Ratio: A product designer must design high-quality product in a way that it is cost
effective. The product should be of top-notch quality, functional and appealing in design, such
that it attracts the customers. The designer must also ensure that he is creating a design which
is even cost effective as that will attract the customers most.

5. Quality of product: The design of a product and its quality should go hand in hand. The
quality of a product depends on its design as well as conformity. So, the designer must ensure
that he/she is producing a good quality product that embellishes an impressive design.

6. Capability of process: A product designer must have the requisite knowledge of the
machinery in order to take care of the quality of conformance. The quality of conformance
depends on the capacity of equipment and machines (how much they can process). A designer
should thus establish a tolerance limit of each machine and equipment.

7. Material requirements: The type, quality, and nature of a material used in the production
of a product impact its design to a great extent. So, the designer must have adequate knowledge
of the materials. He/she should have up to date information about the availability of new and
better materials in order to create the desired product.
 8. Work methods: The work methods adopted and the equipment used to impact the viability
of the design. Little changes in the work methods can considerably affect the production cost.
So, a designer must be inventive in order to find out the most efficient work methods. He/she
should be accustomed to the innovations in the market so that he/she can improvise the work
methods and equipment accordingly. A product should be designed in such a way that it should
have the scope for improvisation in the type of equipment required and the work methods
adopted.

9. Effect on existing designs: In case a new product is being designed to replace an existing
product, then a designer should ensure that he/she uses the standards materials, parts,
components, design strategies, techniques and manufacturing processes. It is the task of a
product designer to blend the existing product with new manufacturing technology. In this
way, the designer can keep the production cost minimum.

10. Packaging: Packaging is one of the core components associated with a product. The design
of the package of a product is equally important as the product itself. This is because packaging
ensures that the product is delivered safely to the end users. Thus, the designer should ensure
that the package is protective and even serves the promotional purpose. The package should
be attractive as that will appeal to the customers.

4. What does product and service design do?

The various activities and responsibilities of product and service design include the following
(functional interactions are shown in parentheses):

1. Translate customer wants needs into product and service design requirements(Marketing,
Operation)
2. Refine existing product and/or service. (Marketing)
3. Develop new products and/or service. (Marketing, Operation)
4. Formulate cost Goal. (Marketing, Operation)
5. Formulate cost targets. (Accounting, Finance, Operation)
6. Construct and test prototypes. (Operation, Marketing, Engineering)
7. Document specifications.
8. Translate product and service specification into Process specification. (Engineering,
Operations)

Product and service design involves or affect nearly every functional area of an organization
however, marketing and operation have major involvement.
5. Explain product liability and bar code.

Product liability:
The responsibility of a manufacturer or vendor of goods to compensate for injury caused by
defective merchandise that it has provided for sale.

Bar code:
A barcode (or bar code) is a unique sequence of digits that is used to identify an item or product.
Most barcodes on retail products are in either EAN (13 digit) or UPC (12 digit) format.
A barcode number can be turned into a barcode image (vertical black bars). When a barcode
images is scanned at a checkout counter, product information will appear on the checkout
screen.

6. How does a bar code work?

In a nutshell, a barcode is a way to encode information into a visual pattern (those black lines
and white spaces) that a machine (a barcode scanner) can read.
The combination of black and white bars (also referred to as elements) represents varying text
characters that follow a pre-established algorithm for that barcode (more on the types of
barcodes later). A barcode scanner will read this pattern of black and white bars and translate
them into a line of test that your retail point of sale system can understand.

7. Problems of product life cycle theory.

While the product life cycle theory is widely accepted, it does have critics who say that the
theory has so many exceptions and so few rules that it is meaningless. Problems of product life
cycle theory are:

i There is no set amount of time that a product must stay in any stage; each product is
different and moves through the stages at different times. Also, the four stages are not
the same time period in length, which is often overlooked.
ii There is no real proof that all products must die. Some products have been seen to go
from maturity back to a period of rapid growth thanks to some improvement or
redesign. Some argue that by saying in advance that a product must reach the end of
life stage, it becomes a self-fulfilling prophecy that companies subscribe to. Critics say
that some businesses interpret the first downturn in sales to mean that a product has
reached decline and should be killed, thus terminating some still-viable products
prematurely.
iii The theory can lead to an over-emphasis on new product releases at the expense of
mature products, when in fact the greater profits could possibly be derived from the
mature product if a little work was done on revamping the product.
iv The theory emphasizes individual products instead of taking larger brands into account.
v The theory does not adequately account for product redesign and/or reinvention.
8. What do you mean by reliability and failure? What are the ways to improve reliability?

Reliability: Reliability is a measure of the ability of a product, a part, a service, or an entire

system to perform its intended function under a prescribed set of conditions.

Failure: The term failure is used to describe a situation in which a product, part, or system
does not perform as intended.

Potential ways to improve reliability-

a. Improve component design.
b. Improve production and/or assembly techniques.
c. Improve testing.
d. Use backups.
e. Improve preventive maintenance procedures.
f. Improve user education.
g. Improve system design.

9. Legal, ethical, and environmental issues in relation to product design.

The well-designed products and services are always help to achieve the goals of business
organization rather than of poorly designed products and services. Therefore any organization
must have selection of strategy in product and service design. With the help of legal, ethical
and environmental consideration of service design, the targeted customers will be motivated,
reward and enhance through the selection of effective strategies.

Legal consideration: The legal considerations such as product liability assign the
responsibility of manufacturer to give the compensation for the damages or injuries occurred
or caused by the faulty products and services.

Ethical consideration: Ethical issues are another major issue factors that the product and
service designer must take into consideration. This should be ethical standards for adhere such
issues. The designers are in more pressure to decrease the production process cost and
efficiency increment. Such pressures force them to trade-off decisions which also include
ethical consideration if the products and services are not able to satisfy the consumers'
requirements that are going to be launched. This could harm the reputation of company as well
as damages will occur further.

Environmental consideration: Designers must be careful to take into account a wide range
of legal and ethical considerations. Moreover, if there is a potential to harm the environment,
then those issues also become important. Most organizations are subject to several government
agencies that regulate them.
10. What questions must be answered at the time of product design?

The questions must be answered at the time of product design are:

i Is there demand for it? What is the potential size of the market, and what is the
expected demand profile (will demand be long term or short term, will it grow
slowly or quickly)?

ii Can we do it? Do we have the necessary knowledge, skills, equipment, capacity,

and supply chain capability? For products, this is known as manufacturability; for
services, this is known as serviceability. Also, is outsourcing some or all of the
work an option?

iii What level of quality is appropriate? What do customers expect? What level of
quality do competitors provide for similar items? How would it fit with our current
offerings?

iv Does it make sense from an economic standpoint? What are the potential liability
issues, ethical considerations, sustainability issues, costs, and profits? For
nonprofits, is the cost within budget?

11. Phases in product design and development.

Product design and development generally proceeds in a series of phases:

Feasibility analysis: Feasibility analysis entails market analysis (demand), economic analysis
(development cost and production cost, profit potential), and technical analysis (capacity
requirements and availability, and the skills needed). Also, it is necessary to answer the
question, does it fit with the mission? It requires collaboration among marketing, finance,
accounting, engineering, and operations.

Product specifications: This involves detailed descriptions of what is needed to meet (or
exceed) customer wants, and requires collaboration between legal, marketing, and operations.

Process specifications: Once product specifications have been set, attention turns to
specifications for the process that will be needed to produce the product. Alternatives must be
weighed in terms of cost, availability of resources, profit potential, and quality. This involves
collaboration between accounting and operations.
 Prototype development: With product and process specifications complete, one (or a few)
units are made to see if there are any problems with the product or process specifications.

Design review: At this stage, any necessary changes are made or the project is abandoned.
Marketing, finance, engineering, design, and operations collaborate to determine whether to
proceed or abandon.

Market test: A market test is used to determine the extent of consumer acceptance. If
unsuccessful, the product returns to the design review phase. This phase is handled by
marketing.

Product introduction: The new product is promoted. This phase is handled by marketing.

Follow-up evaluation: Based on user feedback, changes may be made or forecasts refined.
This phase is handled by marketing.

12. What do you mean by standard and standardization? Advantages of standardization.

Standard: A standard is a level of quality or achievement, especially a level that is thought to

be acceptable.
Standard Products means Products requiring no changes, alterations, or additions.

Standardization: An important issue that often arises in both product/service design and
process design is the degree of standardization. Standardization refers to the extent to which
there is absence of variety in a product, service, or process. Standardized products are made in
large quantities of identical items; calculators, computers are examples. Standardized service
implies that every customer or item processed receives essentially the same service.
An automatic car wash is a good example; each car, regardless of how clean or dirty it is,
receives the same service.

Advantages of standardization-
a. Fewer parts to deal with in inventory and in manufacturing.
b. Reduced training costs and time.
c. More routine purchasing, handling, and inspection procedures.
d. Orders fillable from inventory.
e. Opportunities for long production runs and automation.
f. Need for fewer parts justifies increased expenditures on perfecting designs and
improving quality control procedures.
13. What is rebuts design?

Some products or services will function as designed only within a narrow range of conditions,
while others will perform as designed over a much broader range of conditions. The latter have
robust design. Consider a pair of fine leather boots—obviously not made for trekking through
mud or snow. Now consider a pair of heavy rubber boots—just the thing for mud or snow. The
rubber boots have a design that is more robust than that of the fine leather boots.
The more robust a product or service, the less likely it will fail due to a change in the
environment in which it is used or in which it is performed.

14. Define model. Explain different types of model.