What Does Product and Service Design Do?

● Translate customer wants and needs into product/service requirements.

○ Example: Marketing and operations team collaborate to design a phone

based on customer demand for better battery life.

● Refine existing products and services to meet current market trends.

○ Example: Updating the software in smart TVs to provide faster streaming.

● Develop new products/services to remain competitive.

○ Example: A tech company creating a new line of wearables.

● Formulate quality goals for consistency and customer satisfaction.

○ Example: Setting a standard for a car’s safety features.

● Formulate cost targets to align product pricing with profitability.

○ Example: Operations and finance teams decide on a production budget for

a new appliance.
● Construct and test prototypes to ensure product functionality.

○ Example: Engineering and marketing teams building and testing a new

phone prototype.
● Document specifications to ensure consistent production processes.

● Translate product/service specs into process specs for production.

○ Example: Engineering team developing manufacturing steps for a new
smartwatch.
mportance of Product and Service Design

 Strategic Implications: The design of products and services is crucial for an

organization's success and future activities. Managers need to make key
decisions in this area.

Reasons for Design or Redesign

Organizations may decide to design or redesign products and services for various
reasons, often influenced by market opportunities and threats. Key factors that can
trigger this need include:

1. Economic Factors:
o Changes in demand, excessive warranty claims, or the need to cut costs.

2. Social and Demographic Factors:

o Changes in population trends, such as an aging population.

3. Political and Legal Factors:

o New government regulations or safety issues.

4. Competitive Factors:
o Introduction of new or improved products/services or changes in
advertising strategies by competitors.

5. Cost or Availability Factors:

o Fluctuations in the cost or availability of raw materials, components, labor,
or energy.

6. Technological Factors:
 o Advances in technology that can directly or indirectly affect product
design. For instance:
 Direct Impact: New technology, like faster microprocessors, can
enable the creation of better devices.
 Indirect Impact: Advances in manufacturing processes may
require existing products to be redesigned for compatibility.
 Example: Digital recording technology that allows viewers to skip
ads has led advertisers to integrate their products into TV shows to
reach audiences effectively.

2. Key Questions in Product and Service Design

● Is there demand for it?

○ Example: Analyzing the potential market for a newly designed electric
bike.
● Can we do it? (Assessing manufacturability/serviceability)
○ Example: Evaluating if the company has the technology and skills to
produce electric cars.
● What level of quality is appropriate?
○ Example: Determining if mid-range quality is sufficient for a smartphone to
compete.
● Does it make sense economically?
○ Example: Calculating if the cost of producing eco-friendly packaging will
still yield profit.

3. Manufacturability and Serviceability

● Manufacturability is the organization’s ability to produce an item at a profit.

● Serviceability refers to delivering a service at an acceptable cost or profit.
 ○ Example: A restaurant evaluating if they can offer faster delivery service at
an affordable cost.

Reasons for Product and Service Design or Redesign

● Economic reasons: Low demand or high warranty claims may prompt redesign.
○ Example: Redesigning a car model to reduce costs after a drop in sales.
● Social and demographic changes: Aging populations or shifts in consumer
preferences.
○ Example: Developing ergonomic furniture for an aging population.
● Political, liability, or legal changes: New regulations may require redesign.
○ Example: Redesigning toys to meet new safety standards.
● Competitive pressures: Competitors’ innovations or promotions.
○ Example: Redesigning a smartphone to compete with a rival’s new
features.
● Cost or availability of materials: Scarcity of resources leading to redesign.
○ Example: Finding an alternative to rare metals in electronic devices.
● Technological advancements: New technologies influencing design.
○ Example: Using smaller, faster processors to develop new-generation
smartphones.

Idea Generation

sources of Ideas for New or Redesigned Products/Services

● Customers: Ideas can come from surveys, focus groups, complaints, and
suggestions.
○ Example: A company improving a product based on customer complaints
about quality.
 ● Supply Chain: Suppliers, distributors, and employees can offer suggestions
through interviews and complaints.
○ Example: A supplier suggests a new material for product improvement.
● Competitors: By studying competitors’ products and operations, ideas for
improvements can be generated.
○ Example: Reverse engineering a competitor's product to find ways to
enhance one’s own.
● Reverse Engineering: Disassembling a competitor's product to improve or
innovate.
○ Example: Ford's use of reverse engineering in developing its Taurus
model by examining competitors’ components.
● Research and Development (R&D): Focused efforts on advancing knowledge
and innovation for products or processes.
○ Example: Universities and corporations working on innovations in
medicine or technology.

2. Types of R&D

● Basic Research: Advancing knowledge without immediate commercial

applications.
○ Example: A university researching a new chemical reaction with no current
business use.
● Applied Research: Aimed at achieving commercial applications.
○ Example: A tech company developing a faster processor for smartphones.
● Development: Turning applied research results into useful commercial products.
○ Example: Using new semiconductor technology to build a faster computer.

3. Benefits of R&D

● R&D can lead to patents, giving companies the opportunity for licensing and
royalties.
○ Example: A pharmaceutical company patenting a new drug and profiting
from its early release.
 ● Companies that are first to market with new products often gain a temporary
monopoly.
○ Example: A tech firm releasing a groundbreaking device before
competitors can catch up.

4. Costs of R&D

● R&D can be expensive, with some companies spending millions daily.

○ Example: IBM spending $5 billion annually on R&D.
● Critics argue that insufficient R&D spending may lead to a loss of competitive
advantage.

5. Shift from Product to Process R&D

● Companies are moving toward a balanced approach between product innovation

and process improvements to stay competitive.
○ Example: A company investing in both new product designs and better
manufacturing techniques.

6. Technological Life Cycles

● Technologies go through life cycles, just like products, impacting R&D planning.
○ Example: A company investing in research for next-generation technology
to stay ahead of competitors.

Legal Considerations

● Designers must follow legal regulations set by various government agencies.

○ Example: The Food and Drug Administration (FDA) regulates food

safety, while the Occupational Health and Safety Administration
 (OSHA) enforces workplace safety.

● Environmental Protection is also a key factor, especially when products could

harm the environment.

○ Example: Bans on harmful substances like asbestos and phosphates have

led to redesigns in various industries.

● Automobile standards (pollution control, seat belts, airbags) have significantly

impacted vehicle design.

○ Example: Car manufacturers are required to design vehicles with airbags

and energy-absorbing bumpers for safety.

2. Ethical Considerations

● Ethical design requires minimizing harm and considering the safety of consumers
and the environment.

○ Example: Toy manufacturers must ensure their products don’t have sharp
edges or small, choking-hazard pieces.

● Designers must consider the accessibility of products, like ensuring public

buildings have facilities for individuals with disabilities.

○ Example: Legal mandates like the Americans with Disabilities Act (ADA)
require accessible entrances and facilities.

3. Product Liability

Product liability holds manufacturers accountable for damages caused by faulty

products due to poor design or workmanship.
 ○ Example: Firestone Tire & Rubber faced lawsuits due to defective tires
causing accidents.

Designers must create products that are safe for their intended purpose to avoid
lawsuits and damage to the company’s reputation.

Implied warranties under the Uniform Commercial Code require that products
be fit for their intended purpose and of merchantable quality.

○ Example: A kitchen appliance must be safe for cooking and meet all
performance expectations.

4. Impact of Lawsuits

Legal suits related to product liability lead to high legal and insurance costs,
recalls, and settlements.

○ Example: Tobacco companies faced massive legal battles over the health
impacts of their products.

Companies risk losing customer trust and damaging their brand image if safety
issues arise, reducing demand for their products.

○ Example: A toy manufacturer recalling hazardous toys may face a sharp

decline in sales.

5. Safety and Hazard Mitigation

Products must be designed to be free of hazards, and safety measures shouldbe

implemented where hazards exist
.
 ○ Example: Installing safety guards on machines to prevent accidents in
factories.

Warnings and notices must be provided if potential risks are associated with
product use.

○ Example: Power tools often include clear labels warning users of the
dangers.

Human Factor

Safety and Liability

Safety is a top priority in product design, particularly for consumer products.

○ Example: The crashworthiness of vehicles is critical for ensuring

consumer safety and minimizing insurance claims.

Designers must consider how product design affects the safety of users to avoid
product liability issues.

○ Example: Automakers must ensure vehicles meet safety standards to

protect passengers during accidents and avoid lawsuits.

2. Adding New Features

● Adding new features to products can provide a competitive edge, but it can also
create problems.

○ Example: A smartphone company adding more advanced camera features

to appeal to tech-savvy customers.
 ● Creeping featurism: Adding too many features may make products overly
complex and difficult to use, leading to customer dissatisfaction.

Example: Handheld devices with too many features might overwhelm users, causing
frustration due to the lack of ease of use.

3. Balancing Features and Usability

Designers must balance adding features with maintaining user-friendliness.

○ Example: A remote control with too many buttons may confuse users,
reducing its practicality.

Global Product and Service Design

Traditional vs. Global Product Design

● Traditionally, product design was conducted by teams located in the same facility
or nearby.

○ Example: A design team working from a single office to create a product.

● Global product design involves a team of designers working from different
countries and continents.

○ Example: A car manufacturer having designers in the U.S., Germany, and

Japan collaborate on the same model.

2. Advantages of Global Product Design

● Access to Global Talent: Teams can engage the best resources worldwide
without requiring them to be in one physical location.
 ○ Example: Hiring a top software engineer from India while the rest of the
team is in Europe.
● Faster Time-to-Market: Teams operate around the clock, using time zone
differences to reduce project timelines

○ Example: A design team in Asia works during the day, and when they
stop, a team in the U.S. picks up the work.
● Customer Needs Assessment: Local resources can assess customer needs in
different countries, adapting designs to local opportunities and constraints
.
○ Example: A product being designed to meet different regulatory standards
in the U.S. and Europe simultaneously.

3. Benefits of Diversity in Global Teams

● Diversity can lead to a wider range of ideas, viewpoints, and solutions, enriching
the design process.
○ Example: A global team might develop a product that is culturally sensitive
to multiple regions, enhancing its marketability.

4. Challenges of Global Product Design

● Managing Diversity: Mismanagement of diversity can lead to conflicts and

miscommunications within the team.
○ Example: Language barriers and cultural differences leading to
misunderstandings between team members.

● Technological Support: Advances in information technology are crucial for

the success of global teams, enabling continuous communication and sharing of
designs.
○ Example: Using collaboration tools like video conferencing and cloud
platforms to share real-time updates and engineering changes.
Explain Environmental factors sustainability in Product and Service design

. Cradle-to-Grave Assessment

● Also known as Life Cycle Analysis.

● Assesses the environmental impact of a product/service throughout its life, from
raw material extraction to disposal.
○ Example: Evaluating the carbon footprint, smog formation, and waste
generation of a product from production to disposal.
● Includes energy consumption, pollution, waste, and transportation impacts.
● Goal: Choose products/services with the least environmental impact, balancing
economic considerations.
● Part of ISO 14000 environmental management standards.

2. End-of-Life (EOL) Programs

● Deals with products that have reached the end of their useful lives.
○ Example: Electronics that are no longer functional, which contain toxic
materials like lead and cadmium.
● Purpose: Reduce dumping and incineration, which generate hazardous
emissions and toxic ash.
○ Example: IBM's EOL program collected 2 billion pounds of product waste
over 15 years.
● Focuses on reducing landfill use and hazardous emissions.

3. The Three Rs: Reduce, Reuse, Recycle

● Reduce: Focuses on minimizing material use and costs.

○ Value Analysis: Examines the function of parts and materials to reduce
costs or improve performance.
 ○ Questions asked: Can a cheaper material be used? Is the part necessary?
Can the part be simplified?
● Reuse (Remanufacturing): Refurbishing and reselling products with additional
useful life.
○ Products like automobiles, printers, and computers are often
remanufactured.
○ Benefits: Costs are typically 50% lower than new products, and it
conserves raw materials.
○ Example: European laws require manufacturers to take back used
products.
● Recycle: Recovering materials for future use.
○ Example: Reclaimed metal or plastic parts are melted down to make new
products.
○ Reasons to recycle:
1. Cost savings
2. Environmental concerns
3. Regulatory requirements
○ Design for Recycling (DFR): Focuses on designing products that can be
easily disassembled for material recovery.

4. Design for Disassembly (DFD)

● A design consideration for remanufacturing and recycling.

● Ensures that products are easy to take apart to reclaim components and
materials for reuse or recycling.

key Points for Exam Preparation: Other Design Considerations

1. Product or Service Life Cycle Stages

 ○ Introduction Phase: Introduce the product/service to the market. Manage
expectations about product quality and price drops.
■ Example: High-tech products launched during peak buying periods
like holidays.
○ Growth Phase: Demand increases. Improve product reliability, lower
costs, and ensure capacity grows with demand.
■ Example: Smartphones improving battery life and lowering prices.
○ Maturity Phase: Demand levels off, fewer design changes, high
productivity, and low costs.
■ Example: Baking soda and duct tape finding new uses to extend
their product life.
○ Decline Phase: Decide to discontinue, replace, or find new uses for the
product/service.
■ Example: Duct tape used beyond its original purpose of taping
HVAC ducts.
○ Some products, like nails and paper clips, do not exhibit clear life cycles.
○
2. Standardization
○ Definition: Lack of variety in a product, service, or process, providing
interchangeable parts and uniform service.
■ Example: Automatic car wash where all cars receive the same
service.
○ Advantages:
■ Lower production costs and higher productivity.
■ Reduced training time and consistent quality.
■ Easier maintenance and repair with interchangeable parts.
■ Example: Automakers using standardized brakes and electrical
systems across models.
○ Disadvantages:
■ Lack of variety, which can limit customer appeal.
■ Risks of freezing designs too early, limiting innovation.
 ■ Example: U.S. manufacturers struggling with the metric vs. imperial
system in global markets.
■
3. Designing for Mass Customization

○ Mass Customization: Producing standardized goods with some degree

of customization.
■ Example: Dell allowing customers to configure their own computers
by selecting modular parts.
○ Delayed Differentiation: Postponing completion until customer
preferences are known.
■ Example: Furniture makers applying the final stain only after
customer selection.

○ Modular Design: Grouping parts into subassemblies (modules) that can

be easily replaced or reconfigured.
■ Example: Dell computers offering modular configurations.
Prefabricated motel rooms are another example.

○ Advantages of Modular Design: Easier diagnosis of failures, faster

assembly, and customization with less waiting time for customers.

Reliability

● Definition: Reliability refers to the ability of a product, part, service, or system to

perform its intended function under specified conditions.
○ Example: A smoke alarm must detect smoke and sound an alert in a
timely manner.
● Importance: It impacts product comparisons, pricing, repeat sales, and a
product's image.
 ○ Example: High reliability can result in fewer resources required for repairs
and sustainability concerns.
● Failure: Describes a product's inability to function as intended, whether by not
working at all, underperforming, or behaving unexpectedly.
○ Example: A smoke alarm failing to detect smoke, sounding too faint, or
triggering without smoke.
● Operating Conditions: Reliability is always dependent on normal conditions like
temperature, humidity, and proper maintenance.
○ Example: Towing heavy loads with a passenger car can cause premature
failure due to excess stress on the drive train.
● Improving Reliability:
○ Enhance individual component reliability to improve system reliability.
○ Use backup components or improve maintenance and user education.
○ Simplify systems to reduce potential points of failure.
○ Example: Cars have backup safety systems to ensure reliability in case of
primary system failure.

Optimal Reliability

● Reliability needs depend on the use of the product or service.

○ Example: The reliability required for light bulbs differs from that required
for airplanes.
● Cost-Benefit Analysis: Reliability improvements become more costly over time,
with benefits eventually leveling off or decreasing compared to the costs.

Robust Design

● Definition: A robust design allows a product or service to function under a wide

range of environmental conditions, minimizing the chance of failure.

○ Example: Heavy rubber boots for mud and snow are more robust than fine
leather boots.
 ● Benefits: Robust products are less likely to fail due to environmental variations,
leading to greater customer satisfaction.

○ Example: A food product that tolerates slight temperature changes during

processing is more robust.

● Application in Manufacturing: A robust design minimizes the impact of external

factors, such as temperature variations during production.

○ Example: A product designed to be unaffected by minor temperature

variations in a furnace will have fewer quality issues.

Taguchi’s Approach to Robust Design

● Premise: It's easier to design products that are less sensitive to environmental
factors than to control those factors during manufacturing.

● Parameter Design: Determines optimal settings for both products and processes
to ensure robustness during manufacturing and use.

○ Example: Involving fewer test runs to identify the near-optimal combination

of chemicals for a product.

● Efficiency: Although Taguchi’s method reduces the number of experiments, it

may not always find the optimal solution, but it’s faster and more practical.
○ Example: Instead of testing all possible chemical combinations, a reduced
sample is tested, saving time and cost.

1. Degree of Newness
● Definition: The degree of newness refers to the extent of change in product or
service design, ranging from minor modifications to completely new offerings.
Types of Newness:
○ Modification of an Existing Product/Service: Making small changes to
enhance performance or aesthetics.
■ Example: Updating the design of a smartphone model with a better
camera.

○ Expansion of an Existing Product Line/Service Offering: Adding new

variants or options to a current product line.
■ Example: A car manufacturer introducing an electric version of a
popular gas model.

○ Clone of a Competitor’s Product/Service: Creating a similar product

based on a competitor’s successful offering.

■ Example: A soft drink brand launching a cola drink modeled after a

market leader.
○ New Product/Service: Introducing an entirely new offering that hasn’t
been previously available in the market.

■ Example: The launch of a completely new wearable health tracking

device.

● Impact on Organization:
○ Low newness can lead to quick production transitions, while high newness
may result in slower, more expensive adaptations.

● Impact on Market:
○ Low newness typically means easier market acceptance but can limit
profit potential; high newness may face acceptance challenges but can
 lead to rapid market share gains.

● Risk Assessment: Organizations must carefully evaluate risks and benefits of

design changes based on identified customer needs.

2. Quality Function Deployment (QFD)

QFD is a structured approach to integrating customer feedback into product and service
development to ensure their needs are met effectively.

Purpose: To translate customer requirements into technical specifications that guide

product design and manufacturing processes.

Process:

○ Identify customer wants and translate them into actionable technical

requirements.
■ Example: A customer request for an easy-to-adjust cutting height
for a lawn mower translates into specifications about the
adjustment mechanism and user instructions.

● Matrices Structure:

○ The main matrix connects customer requirements (what) with

corresponding technical requirements (how).

○ House of Quality: This term refers to the matrix's design, resembling a

house and incorporating various analysis features:

■ Importance Weightings: Evaluate the significance of each

customer requirement.
 ■ Competitive Evaluations: Assesses how the current product or
service compares to competitors.

■ Correlational Matrix: Identifies relationships between technical

requirements, highlighting conflicts or trade-offs.

Example: A strong negative correlation may exist between “paper

thickness” and “roll roundness” in a paper supplier's product
specifications.

● Example Analysis:
○ In a QFD analysis for a commercial printer’s paper supplier:

■ Customer requirements are listed on one side, technical

requirements on top.

■ The central matrix shows how well each technical requirement

meets customer needs, using symbols to denote the strength of
relationships (e.g., a dot for strong correlation).

■ Competitive evaluations show the supplier’s strengths and

weaknesses against competitors, helping prioritize improvements.
● Outcome: The QFD process helps designers focus on areas that will most
effectively satisfy customer needs while balancing technical challenges and
market competitiveness.

Overview of the Kano Model

● Definition: Developed by Dr. Noriaki Kano, the Kano Model categorizes

customer perceptions of quality into distinct types, moving beyond the traditional
view that "more is better."
 ● Purpose: To help designers understand customer quality needs and
preferences, allowing for better product and service design.

2. Categories of Quality

The Kano Model defines three primary categories of quality:

● Basic Quality:
○ Characteristics: Essential features that, if absent, lead to customer
dissatisfaction; however, their presence does not enhance satisfaction.
○ Example: A short power cord on an appliance; if it's too short, customers
are dissatisfied, but a longer cord doesn’t necessarily increase satisfaction
once a sufficient length is provided.
● Performance Quality:
○ Characteristics: Features that generate satisfaction or dissatisfaction
based on their functionality and appeal; satisfaction increases
proportionally with improvements.
○ Example: The tread life of tires or the durability of paint; longer-lasting
products enhance customer satisfaction.
● Excitement Quality:
○ Characteristics: Unexpected features that delight customers and create a
"wow" factor; their absence does not cause dissatisfaction.
○ Example: A complimentary dinner voucher at a hotel; customers are
pleasantly surprised, leading to higher satisfaction levels.

3. Relationship Between Quality Types and Customer Satisfaction

● Impact on Satisfaction:
○ Basic quality must be met to avoid dissatisfaction, but exceeding these
features does not further enhance satisfaction.
○ Performance features directly influence satisfaction levels—more
functionality generally leads to more satisfaction.
 ○ Excitement features, while not expected, can greatly boost satisfaction if
included, leading to increased brand loyalty.

4. Evolution of Quality Features

● Dynamic Nature: Over time, excitement features can transition to performance

features, and performance features can become basic quality features.
○ Implication: Companies need to stay updated on customer perceptions
and the lifecycle of quality features to ensure they are not investing in
improvements for aspects that have become basic.

5. Strategic Application

● Design Focus: Companies should first ensure all basic quality requirements are
met before investing additional resources into performance features.

● Cost–Benefit Analysis: For performance features, improvements should only be

pursued if the benefits exceed costs.

● Identifying Excitement Features: Since customers may not be able to articulate

what would excite them, businesses should actively seek out these features, as
they can significantly enhance customer satisfaction and loyalty when
implemented effectively.

6. Integration with Other Methods

● Compatibility with QFD: The Kano Model can be used alongside Quality
Function Deployment (QFD) to ensure customer voices are integrated into
product design.
● Application in Six Sigma: It is also applicable in Six Sigma projects, aiding in
quality improvement initiatives.

Key Takeaways for Exam Preparation

 ● Understand the definitions and implications of basic, performance, and
excitement quality.
● Recognize the dynamic nature of these quality types and their impact on
customer satisfaction.
● Focus on the strategic implications of the Kano Model for product design and
customer engagement.

Designing for Production

1. Overview of Designing for Production

● Definition: Refers to design techniques primarily applicable to product design,

with some relevance to service design. Key concepts include concurrent
engineering, computer-aided design (CAD), design for manufacturing (DFM), and
component commonality.

2. Concurrent Engineering

● Concept: Involves simultaneous development of product and processes by

integrating cross-functional teams (designers, manufacturers, marketing, and
suppliers).

● Purpose: Aims to reduce product development time and improve product quality
by incorporating diverse perspectives early in the design process.

● Advantages:
1. Improved Communication: Manufacturing can address production
capabilities early, reducing conflicts.
 2. Early Tooling Design: Critical tooling can be designed early, speeding up
development and giving a competitive edge.

3. Technical Feasibility: Early assessments of design feasibility minimize

production issues.

4. Focus on Problem Resolution: Promotes collaboration to solve issues

rather than conflicts between departments.

● Challenges:
1. Overcoming Boundaries: Long-standing divisions between departments
can hinder collaboration.

2. Need for Flexibility: Extra communication and adaptability are required

for effective teamwork.

3. Computer-Aided Design (CAD)

● Definition: The use of computer graphics to design products, allowing for

modifications and visualizations on-screen.

● Benefits:
1. Increased Productivity: Designers can work 3 to 10 times faster than
traditional drawing methods.

2. Database Creation: CAD generates a database with essential information

(geometry, dimensions, tolerances)
.
3. Analytical Capabilities: Some CAD systems offer engineering analyses,
such as weight and stress evaluations.

● Example: Used extensively in industries like automotive and aerospace for

designing parts, allowing for quick iterations and simulations.
4. Production Requirements

● Understanding Capabilities: Designers must be aware of production

capabilities (equipment, materials, technology) to ensure feasible designs.

● Manufacturability: The design should facilitate easy fabrication and assembly to

optimize costs, productivity, and quality.

● Design for Manufacturing (DFM): Ensures product designs are compatible with
production capabilities.

● Design for Assembly (DFA): Focuses on simplifying the assembly process,

often by reducing the number of parts or optimizing assembly sequences.

5. Component Commonality

● Definition: Using the same components across multiple products to streamline

design, production, and repair processes.

● Benefits:
○ Cost Savings: Reduced design time and bulk purchasing advantages.

○ Simplified Training: Common components mean less training is required

for assembly and maintenance.

○ Inventory Efficiency: Fewer unique parts needed for repairs, decreasing

inventory costs for dealers.

● Examples:
○ Automotive Industry: Sharing engines and transmissions across different
car models.
 ○ Service Industry: In appliance repair, common parts reduce training
needs and repair time.

○ Software Development: Using modular coding saves time and resources

for similar applications.

Service Design

● Definition: Service design focuses on creating and delivering services, which are
typically acts performed for customers. Unlike product design, services are
produced and consumed simultaneously.

● Components: Service design includes the physical resources, accompanying

goods, explicit services (core features), and implicit services (extra features like
customer experience).

2. Key Differences Between Service Design and Product Design

● Intangibility: Services are intangible (e.g., experience, ambiance), while

products are tangible (e.g., goods).

○ Example: A spa experience focuses on relaxation (intangible) rather than

just the physical facility (tangible).

● Simultaneity of Production and Delivery: Services are often created and

delivered at the same time (e.g., haircuts).

○ Example: In a restaurant, the meal is prepared and served to customers

in real-time.

● Inability to Inventory Services: Services cannot be stored, creating challenges

in managing capacity and flexibility.
 ○ Example: An airline cannot store seats; empty seats on a flight represent
lost revenue.

● Visibility to Consumers: Services are highly visible, necessitating careful

design to meet customer expectations.

○ Example: The cleanliness and ambiance of a hotel lobby impact customer

perception.
● Low Barriers to Entry and Exit: This increases competition and demands
innovation in service design.

○ Example: New restaurants frequently open, requiring existing

establishments to innovate to retain customers.

● Importance of Location: Service design is often closely tied to location, with

convenience being crucial.

○ Example: A coffee shop's success may depend on being in a high-traffic

area.

3. Service Design Process

● Service Strategy: Establishes the nature of the service and the target market.
Top management assesses market potential and organizational capability.

● Customer Requirements: Identifying customer needs and expectations for the

target market is vital.

● Variation and Contact: Degree of service variability and customer contact

affects standardization versus customization.
○ Example: A fast-food chain (low variability, low contact) can standardize
its service, while a custom tailoring service (high variability, high contact)
requires personalization.
4. Phases in the Service Design Process

● Similar to Product Design: The phases of service design mirror those of

product design but also include designing the delivery system.

5. Service Blueprinting

● Definition: A service blueprint is a visual representation of a service process,

detailing customer and service provider interactions.

○ Example: A restaurant blueprint might illustrate customer actions

(ordering, eating) alongside back-end operations (kitchen processes,
supply ordering).

6. Customer Perspective in Service Design

● Understanding Customer Experience: Design objectives should focus on

customer satisfaction and the relationship between service delivery and
perceived quality.

○ Example: A hotel may focus on staff training to ensure a welcoming

atmosphere, which enhances the guest experience.

7. Balancing Efficiency and Quality

● Trade-offs: Designers must balance operational efficiency with the need for a
personalized service experience.

○ Example: A fast-casual restaurant may simplify its menu to speed up

service, which can frustrate customers who desire customization.