3 - New Product and Service Design

New Product and Service Design
Prof. W.S. William

Product Design
o Product design process transforms abstract customer demands

into specific product design
o Product design process is a process of function allocation that

identifies product purposes and allocates them to a structural
product.
o The product design process is a decision-making process.

Design
o Product design process transforms abstract customer

demands into specific product design
o Product design process is a process of function allocation

that identifies product purposes and allocates them to a
structural product.
o The product design process is a decision-making process.

Designing Goods and Services
• Steps 1 and 2: Strategic mission, Analysis and Competitive Priorities

• Steps 3: Customer Benefit Package Design and Configuration
− Based on:
▪ A solid understanding of customer needs and target markets
▪ The value that customers place on time, place, information,
entertainment, exchange, and form
Designing Goods and Services
• Step 4: Detailed Goods, Services, and Process Design

− Prototype testing
▪ Process by which a model is constructed to test a product’s
performance under actual operating conditions, as well as
consumer reactions to the prototypes.
▪ Tests consumer reactions to prototypes
• Step 5: Market Introduction/Deployment
• Step 6: Marketplace Evaluation
− Evaluate how well the goods and services are selling and
customers’ reactions to them.
Customer-focused Design
• Guides the design, creation, and marketing of goods and services by

integrating the voice of the customer into all decisions
− Voice of the customer: Customer requirements as expressed in
customers’ own words
• Quality Function Deployment (QFD):
− An approach to guide the design, creation, and marketing of goods
and services by integrating the voice of the customer into all
decisions
− Applied to a specific manufactured good or service, or to the entire
customer benefit package (CBP)
The House of Quality
House of Quality for a New Camera
Quality Function Deployment
1. Identify customer wants

2. Identify how the good/service will satisfy customer wants
3. Relate customer wants to product hows
4. Identify relationships between the firm’s hows
5. Develop customer importance ratings
6. Evaluate competing products
7. Compare performance to desirable technical attributes
QFD House of Quality
House of Quality Example House of Quality Example
For a digital
camera
House of Quality Example
House of Quality Example House of Quality Example House of Quality Example
G: Good
F: Fair
P: Poor
Completed House of Quality House of Quality Sequence
Value Analysis or Value Engineering
• Purpose is to simplify products and processes
• Objective is to achieve better performance at a lower cost

while maintaining all functional requirements defined by
the customer
– Does the item have any design features that are not necessary?
– Can two or more parts be combined into one?
– How can we cut down the weight?
– Are there nonstandard parts that can be eliminated?
3D printer
Car (only 64
parts)
Challenges in Design of Tangible Products
 Design for Reliability

 Design for Manufacturability
 Design for Sustainability (Re-use,
re-cycle, re-manufacture) –
Design for Disassembly
 Design for Customization
 Design for Serviceability
Biosphere Rules
Phasing in Biosphere Rules

 Rule#1: Use a Parsimonious  Step 1: Think fewer materials
Palette
 Step 2: Rethink design
 Rule#2: Cycle Up – Virtuously
 Step 3; Think scale
 Exploit the Power of Platforms economies
 Step 4: Rethink the buyer-
supplier relationships
Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.
Designing Service Products
• Service products are very different
• Direct customer involvement introduces

significant variability in the process
• Questions to address:
– How will this variability be addressed?
– What are the implications for operational
cost and the customer service experience?
3–20
Three General Factors for
Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.
Determining Fit
• Service experience fit
– The new service should fit into the current
service experience for the customer
• Operational fit
– Existing processes should be able to support
the operation of the new service
• Financial impact
– Introducing a new service should be
financially justified
3–21
Mapping Customer Journey
 Quantitative: Dig into existing data,
web analytics, surveys etc.
 Be Collaborative: Involve a cross-
functional team  Qualitative: Observe and talk to
customers and front-line employees,
 Be customer focused: Map must be
Allow them to tell a story of their
developed from customer’s
experience, document their actions,
perspective
thoughts and feelings (matching with
 Should contain both quantitative touchpoints)
and qualitative research
 Be multi-faceted: provide an eagle-
eye view of the holistic customer
journey
Elements of Journey Mapping
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New Product and Service Design

Prof. W.S. William

o Product design process transforms abstract customer demands

o Product design process is a process of function allocation that

o The product design process is a decision-making process.

o Product design process transforms abstract customer

o Product design process is a process of function allocation

o The product design process is a decision-making process.

• Steps 1 and 2: Strategic mission, Analysis and Competitive Priorities

• Step 4: Detailed Goods, Services, and Process Design

• Guides the design, creation, and marketing of goods and services by

1. Identify customer wants

• Purpose is to simplify products and processes

• Objective is to achieve better performance at a lower cost

 Design for Reliability

Phasing in Biosphere Rules

• Direct customer involvement introduces

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