PRODUCT AND SERVICE DESIGN ● Main Focus

○ Customer satisfaction
Major factors in design strategy ○ Understand what the
● Cost customer wants
● Quality ● Secondary focus
● Time-to-market ○ Function of product or
● Customer satisfaction service
● Competitive advantage ○ Cost or profit
○ Quality
Product and service design or redesign- ○ Appearance
should be closely tied to an organization ○ Ease of production or
strategy. assembly
○ Ease of maintenance or
Product or Service Design Activities: service
1. Translate customer wants and
needs into product and service Designing for Operations
requirements ● Taking into account the
2. Refine existing products and capabilities of the organization in
services designing goods and services
3. Develop new products and ● Failure to take this into account
services can:
4. Formulate quality goals ○ Reduce productivity
5. Formulate cost targets ○ Reduce quality
6. Construct and test prototypes ○ Increased costs
7. Document specifications
Legal, Ethical, and Environmental Issues
Reason for product or service design ● Legal
● Economic ○ FDA, OSHA, IRS
● Social and demographic ○ Product liability
● Political, liability, or legal ○ Uniform commercial code
● Competitive ● Ethical
● Cost or availability ○ Releasing products with
● Technological defects
● Environmental
Objectives of product and service ○ EPA
design
Regulation and Legal Considerations ● Extent to which there is an
● Product Liability. A manufacturer absence of variety in a product,
is liable for any injuries or service or process
damages caused by a faulty ● Standardized products are
product. immediately available to
● Uniform Commercial Code. customers
Products carry an implication of
merchantability and fitness. Advantage of Standardization
● Fewer parts to deal with in
Designer Adhere to Guidelines inventory and manufacturing
● Produce design that are ● Design cost are generally lower
consistent with the goals of the ● Reduced training cost and time
company ● More routine purchasing,
● Give customer the value they handling, and inspection of
expect procedures
● Make health and safety a ● Quality is more consistent
primary concern ● Orders fillable from inventory
● Consider potential harm to the ● Opportunities for long production
environment runs and automation
● Need for fewer parts justifies
Other Issues in Product and Service increased expenditures on
Design perfecting design and improving
● Product or service life cycles quality control procedures.
● How much standardization
● Mass customization Disadvantages of Standardization
● Product and service reliability ● Design may be frozen with too
● Robust design many imperfections remaining
● Degree of newness ● High cost of design changes
● Cultural differences increases resistance to
improvements
Life Cycles of Products or Services ● Decreased variety results in less
consumer appeal

Standardization Mass Customization

● A strategy of producing
standardized goods and services,
 but incorporating some degree ● Set of conditions under which an
of customization items reliability is specified
● Delayed differentiation
○ A postponement tactic Improving Reliability
○ Producing but not quite ● Component design
completing a product or ● Production and assembly
service until customer techniques
preferences or ● Testing
specifications are known. ● Redundancy or backup
● Modular design ● Preventive maintenance
○ A form of standardization procedures
in which component parts ● Users education
are subdivided into ● System design
modules that are easily
replaced or interchanged. Product Design
○ It allows easier diagnosis ● Product Life Cycles
and remedy of failures, ● Robust Design
easier repair and ● Concurrent Engineering
replacement, ● Computer-Aided Design
simplification of ● Modular Design
manufacturing and
assembly. Robust Design
● Design that result in products or
Reliability services that can function over a
● The ability of a product, part, or broad range of conditions
system to perform its intended
function under a prescribed set Taguchi Approach Robust Design
of conditions. ● Design a robust product
○ insensitive to
Failure environmental factors
● Situation in which a product, either in manufacturing or
part, or system does not perform in use.
as intended. ● Central feature in Parameter
Design
Normal operating conditions ● Determines:
 ○ Factors that are ○ Uses combined efforts of a
controllable and those not team of designers working
controllable in different countries
○ Their optimal levels relative ○ Provides a range of
to major product comparative advantages
advances over traditional teams
such as:
Degree of Newness ■ Engaging the best
1. Modification of and existing human resources
product or service around the world
2. Expansion of an existing product ■ Possibly operating
or service on a 24 hr basis
3. Clone of a competitor’s product ■ Global customer
or service needs assessment
4. New product or service ■ Global design can
increase
Degree of Design Change marketability

Phases in Product Development

Process
1. Idea generation
2. Feasibility analysis
3. Product specifications
4. Process specifications
Cultural Differences 5. Prototype development
● Multinational companies must 6. Design review
take into account cultural 7. Market test
differences related to the 8. Product introduction
product design 9. Follow-up evaluation
● Notable failures:
○ Chevy Nova in Mexico Idea Generation
○ Ikea beds in the U.S. ● Supply chain based
● Competitor based
Global Product Design ● Research based
● Virtual teams
Reverse Engineering
 ● The dismantling and inspecting of Concurrent Engineering
a competitor's product to ● Bringing together of engineering
discover product improvements. design and manufacturing
personnel early in the design
Research and Development phase
● Organized efforts to increase
scientific knowledge or product Computer-Aided Design
innovation and may involve ● Product design using computer
○ Basic Research advances graphic
knowledge about a ○ Increase productivity of
subject without near-term designers, 3 to 10 times
expectations of ○ Create a database for
commercial application manufacturing information
○ Applied Research archives on product specifications
commercial applications ○ Provides possibility of
○ Development converts engineering and cost
result of applied research analysis on proposed
into commercial designs
applications
Product Design
Manufacturability ● Design for Manufacturing (DFM)
● The ease of facication and/or ● Design for Assembly (DFA)
assembly which is important for: ● Design for Recycling (DFR)
○ Cost ● Remanufacturing
○ Productivity ● Design for Disassembly (DFD)
○ Quality ● Robust Design

Designing for Manufacturing (DFM) Recycling

● The designers consideration of ● Recovering materials for future
the organization manufacturing use
capabilities when designing a ● Recycling reason
product ○ Cost savings
● The more general term design for ○ Environment Concerns
operations encompasses services ○ Environmental regulations
as well as manufacturing
Remanufacturing
 ● Refurbishing used products by product and service
replacing worn-out or defective development process.
components ● Voice of the customer
○ Remanufactured products ● House of quality
can be sold for 50% of the
cost of a new produce House of quality
○ Remanufacturing can use
unskilled labor
○ Some governments require
manufacturer to take
back used product
Kano Model
Design for Disassembly (DFD)
● Designing products so that they
can be easily taken apart

Component Commonality
● Multiple products or product Service Design
families that have a high degree ● Service is an act
of similarity can share ● Service delivery system
components ○ Facilities
● Automakers using internal parts ○ Processes
○ Skills
○ Engines and transmissions ● Many services are bundled with
○ Water pumps products
○ Etc. ● Service design involves
● Other benefits ● The physical resources needed
○ Reduced training for ● The goods that are purchased or
assemble and installation consumed by the customer
○ Reduced repair time and ● Explicit services
costs ● Implicit services

Quality Function Deployment Service

● An approach that integrates the ● Something that is done to or for a
“voice of the customer” into the customer
 ○ Personalized service (hair
Service delivery system cut, medical service)
● The facilities, processes, and skills ○ Consumer participation
needed to provide a service (diet program)
○ Self service (supermarket)
Product bundle
● The combination of goods and Service Demand Variability
services provided to a customer ● Demand variability creates
waiting lines and idle service
Service package resources
● The physical resources needed to ● Service design perspectives:
perform the service ○ Cost and efficiency
perspective
Differences Between Product and ○ Customer perspective
Service Design ● Customer participation makes
● Tangible – intangible quality and demand variability
● Services created and delivered hard to manage
at the same time ● Attempts to achieve high
● Services cannot be inventoried efficiency may depersonalize
● Services highly visible to service and change customer’s
customers perception of quality
● Services have low barrier to entry
● Location important to service Phases in Service Design
● Range of service systems 1.Conceptualize
● Demand variability 2.Identify service package components
3.Determine performance specifications
Service Systems 4.Translate performance specifications
● Service systems range from those into design specifications
with little or no customer contact 5.Translate design specifications into
to very high degree of customer delivery specifications
contact such as:
○ Insulated technical core Service Blueprinting
(software development) ● A method used in service design
○ Production line (automatic to describe and analyze a
car wash) proposed service
 ● A useful tool for conceptualizing 4.Recognize that designer’s perspective
a service delivery system is different from the customer’s
perspective
Major Steps in Service Blueprinting 5.Make sure that managers are involved
1.Establish boundaries 6.Define quality for tangible and
2.Identify sequence of customer intangibles
interactions 7.Make sure that recruitment, training
● Prepare a flowchart and rewards are consistent with service
3.Develop time estimates expectations
4.Identify potential failure points 8.Establish procedures to handle
exceptions
Characteristics of Well Designed Service 9.Establish systems to monitor service
Systems
1.Consistent with the organization Operations Strategy
mission
2.User friendly 1.Increase emphasis on component
3.Robust commonality
4.Easy to sustain 2.Package products and services
5.Cost effective 3.Use multiple-use platforms
6.Value to customers 4.Consider tactics for mass
7.Effective linkages between back customization
operations 5.Look for continual improvement
8.Single unifying theme 6.Shorten time to market
9.Ensure reliability and high quality
Shorten Time to Market
Challenges of Service Design 1.Use standardized components
1.Variable requirements 2.Use technology
2.Difficult to describe 3.Use concurrent engineering
3.High customer contact
4.Service – customer encounter

Guidelines for Successful Service Design

1.Define the service package
2.Focus on customer’s perspective
3.Consider image of the service
package