Chapter II: Product and Service

Design
Delivered by: Dr. Bui Cong Son
 Learning Objectives
1. LO4.1 Explain the strategic importance of product and service design.
2. LO4.2 Describe what product and service design does.
3. LO4.3 Name the key questions of product and service design.
4. LO4.4 Identify some reasons for design or redesign.
5. LO4.5 List some of the main sources of design ideas.
6. LO4.6 Discuss the importance of legal, ethical, sustainability considerations in product and service
design.
7. LO4.7 Explain the purpose and goal of life cycle assessment.
8. LO4.8 Explain the phrase “the 3 Rs.”
9. LO4.9 Briefly describe the phases in product design and development.
10.LO4.10 Discuss several key issues in product or service design.
11.LO4.11 Discuss the two key issues in service design.
12.LO4.12 List the characteristics of well-designed service systems.
13.LO4.13 List some guidelines for successful service design.
Introduction
What Does Product and Service Design Do?

Translate customer into product/service requirements

Refine existing products and services

Develop and/or services

Formulate quality goals

Formulate cost targets

Construct and prototypes

Document specifications

Translate specifications into process specifications

 Introduction
Key Questions
Can we do it? Necessary
• From a , most purchasing knowledge, skills,
Is there demand for it? - equipment, capacity,
decisions entail: cost and quality/ potential size of the and supply chain
performance. market, expected capability?
demand profile Manufacturability;
Serviceability;
• From the , the key outsourcing some or all?
questions are:

Does it make sense from

Level of quality?
an economic
Customers expect?
standpoint? Potential
Competitors, similar
liability issues, ethical
items? How would it fit
considerations,
with our current
sustainability issues,
offerings?
costs, and profits?
Introduction
Reasons for Product and Service Design or Redesign
Economic

Social &
Technological
demographic

Political,
Cost or
liability, or
availability
legal

Competitive
Idea Generation
 Idea Generation
Ideas for new or redesigned products or services can come from a variety of sources

• Input from suppliers, distributors, and employees can be obtained from interviews, direct or indirect suggestions, and
complaints.

• One of the strongest motivators for new and improved products or services is competitors’ products and services.
Dismantling and inspecting a competitor’s product to discover product improvements.

• Research is another source of ideas for new or improved products or services. refers to
organized efforts that are directed toward increasing scientific knowledge and product or process innovation.
• Basic research has the the state of knowledge about a subject, without any near-term expectation of
commercial applications.

• has the objective of achieving commercial applications.

• Development converts the results of into useful commercial applications.

 Legal and Ethical Considerations
• Designers must be careful to take into account a wide array . Generally, they are
mandatory

• Most organizations are subject to numerous government agencies that regulate them. Eg: Food and Drug
Administration, the Occupational Health and Safety Administration, the Environmental Protection Agency, and
various state and local agencies

• Product liability can be a strong incentive for design improvements. is the responsibility
of a manufacturer for any injuries or damages caused by a faulty product because of poor workmanship or
design

• Manufacturers also are faced with the implied warranties created by state laws under the a
product must be usable for its intended purposes.

• The suits and potential suits have led to increased costs, expensive settlements with
injured parties, and costly recalls
 Human Factors
• Human factor issues often arise in the of
consumer products.

• Safety and liability are two critical issues in many

instances, and they must .

• Another issue for designers to take into account is

adding new features to their products or services.
Although this can have , it can
sometimes be “too much of a good thing,” and be a
source of customer dissatisfaction.
 Cultural Factors
• Product designers in companies
also must
take into account any cultural
differences of different countries
or regions related to the product.

• This can result in different designs

for .
 Global Product and Service Design
• Organizations that operate globally are discovering advantages in global product design, which uses
the combined efforts of a team of designers who work in and even on different
continents.

• Such can provide a range of comparative advantages over traditional teams such as
engaging the best human resources from around the world without the need to assemble them all in
one place, and operating on a 24-hour basis, thereby decreasing the time-to- market.

• Global product design can provide design outcomes that increase the marketability and utility of a
product. The diversity of may yield different points of view and ideas and
information to enrich the design process.

• Advances in information technology have played a key role in the viability of global
teams
Environmental
Factors: Sustainability
Product and service design is a
focal point in the quest for
sustainability.
include cradle-to-grave
assessment, end-of-life programs,
reduction of costs and materials
used, reuse of parts of returned
products, and recycling
 Environmental Factors: Sustainability,
Cradle-to-grave assessment:
• The assessment of the environmental impact of a product or service throughout its useful life.

End-of-Life Programs
• End-of-life (EOL) programs deal with products that have reached the end of their useful lives. The
products include both consumer products and business equipment.

The 3Rs: Reduce, Reuse, and Recycle

• Examination of the function of parts and materials in an effort to reduce
cost and/or improve product performance.
• Reuse - Refurbishing used products by replacing worn-out or defective
components.
• Recycling Recovering materials for future use. Design that facilitates the
recovery of materials and components in used products for reuse.
 Other Design
Considerations
Aside from
, and human
considerations designers must
also take into account product
or service life cycles, how much
standardization to incorporate,
, and the
range of operating conditions
under which a product or
service must function.
Other Design Considerations
Strategies for Product or Service Life Stages
FIGURE 4.1
Products or services often go through stages over time
Other Design Considerations
Product Life Cycle Management

• (PLM) is a systematic approach to managing the series

of changes a product goes through, from its conception, design, and development,
through production and any redesign, to its end of life.

• A goal of PLM is to eliminate waste and improve efficiency.

• There are three phases of PLM application:

• Beginning of life, which involves design and development;
• Middle of life, which involves working with suppliers, managing product information and
warranties; and
• End of life, which involves strategies for product discontinuance, disposal, or recycling.
 Other Design Considerations
Degree of Standardization
• Standardization refers to the extent to which there is absence of variety in a product, service, or
process. implies that every customer or item processed receives essentially the
same service.

Advantages Disadvantages
Fewer parts to deal with in inventory and in Designs may be frozen with too many
manufacturing. imperfections remaining.
High cost of design changes increases
Reduced training costs and time.
resistance to improvements.
More routine purchasing, handling, and inspection High cost of design changes increases
procedures. resistance to improvements.
Orders fillable from inventory.

Opportunities for long production runs and automation.

Need for fewer parts justifies increased expenditures on

perfecting designs and improving quality control
procedures.
 Other Design Considerations
Designing for Mass Customization

Companies like standardization because it enables them to produce high volumes

of relatively low-cost products, with little variety. Customers, on
the other hand, typically prefer more variety, although they like the low cost.
• Mass customization of producing basically standardized goods, but
incorporating some degree of customization.

• Delayed differentiation The process of producing, but not quite completing, a product
or service until are known.

• Modular design A form of in which component parts are grouped into

modules that are easily replaced or interchanged.
 Other Design Considerations
Reliability
• Reliability The ability of a product, part, or system to perform its intended function under a prescribed
set of conditions.
• Failure Situation in which a product, part, or system does not perform as intended.
• Normal operating conditions The set of conditions under which an item’s reliability is specified.

TABLE 4.3 Potential ways to improve reliability

Improve component design.

Improve production and/or assembly techniques.

Improve testing.

Use backups.

Improve preventive maintenance procedures.

Improve user education.

Improve system design.

 Other Design Considerations
Robust Design

• Robust design Design that results in products or services that can function over a broad
range of conditions.

• 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.

• Taguchi’s Approach. His premise is that it is often easier to design a product that is
insensitive to , either in manufacturing or in use, than to control the
environmental factors.

• The central feature of Taguchi’s approach and the feature used most often by U.S.
companies is .

• The Taguchi approach modifies the conventional statistical methods of experimental design.
 Other Design Considerations
Degree of Newness

• Product or service design change can range from the

modification of an existing product or service to an
entirely new product or service:
1. Modification of an existing product or service
2. Expansion of an existing product line or service offering
3. Clone of a competitor’s product or service
4. New product or service

• The degree of change affects the newness to the

organization and the newness to the market.
 Other Design Considerations
Quality Function Deployment

• (QFD) An approach that integrates the “voice of the customer” into both
product and service development.

• The purpose is to ensure that customer requirements are factored into every aspect of the
process. Listening to and understanding the customer is the central feature of QFD.

• The structure of QFD is based on a . The main matrix relates customer

requirements (what) and their corresponding technical requirements (how). The matrix provides
a structure for data collection.

• Additional features are usually added to the basic matrix to broaden the scope of analysis.
Typical additional features include importance weightings and competitive evaluations. A
is usually constructed for technical requirements; this can reveal
conflicting technical requirements.
 Other Design Considerations
Quality Function Deployment

FIGURE 4.3 FIGURE 4.2

The house of quality An example of the house of quality: the main QFD matrix
Source: Ernst and Young Consulting Group, Total Quality (Homewood, IL: Dow-
Jones Irwin, 1991), p. 121. Reprinted by permission
Other Design Considerations
Quality Function Deployment

FIGURE 4.4
An example of the house of quality
 Other Design Considerations
Quality Function Deployment

FIGURE 4.5
The house of quality sequence
Other Design Considerations
Kano Model

FIGURE 4.6A FIGURE 4.6B

The Kano model As time passes, excitement factors become performance factors,
and performance factors become basic factors
Phases in Product Design and Development

Follow-up Product
evaluation. specifications.

Product Process
introduction. specifications.

Prototype
Market test.
development.

Design
review.
 Designing for Production
• Concurrent engineering means bringing design and manufacturing engineering people together early in the
design phase to simultaneously develop the product and the processes for creating the product.

• Computer-aided design (CAD) uses computer graphics for product design. The designer can modify an existing
design or create a new one on a monitor by means of a light pen, a keyboard, a joystick, or a similar device.

• Design needs to clearly understand the capabilities of production (e.g., equipment, skills, types of materials,

schedules, technologies, special abilities). This helps in choosing designs that match capabilities.

• Design for manufacturing (DFM) is used to indicate the designing of products that are compatible with an

organization’s capabilities. A related concept in manufacturing is design for assembly (DFA).

 Service Design
• Service refers to an act, something that is done to or for a customer (client, patient, etc.). It is
provided by a , which includes the facilities, processes, and skills needed
to provide the service. Many services are not pure services, but part of a —the
combination of goods and services provided to a customer. The service component in products is
increasing.

• System design involves development or refinement of the overall :

1. The physical resources needed.
2. The accompanying goods that are purchased or consumed by the customer, or provided with the
service.
3. Explicit services (the essential/core features of a service, such as tax preparation).

4. Implicit services (ancillary/extra features, such as friendliness, courtesy)

Service Design
Phases in the Service Design Process

1. Conceptualize.
Idea generation
Assessment of customer wants/needs (marketing)
Assessment of demand potential (marketing)

2. Identify service package components needed (operations and marketing).

3. Determine performance specifications (operations and marketing).

4. Translate performance specifications into design specifications.

5. Translate design specifications into delivery specifications.

FIGURE 4.7
A simple service blueprint for a restaurant
 Service Design
Characteristics of Well-Designed Service Systems

Being consistent with the organization’s mission.

Being user-friendly

Being robust if variability is a factor

Being easy to sustain.

Being cost-effective.

Having value that is obvious to customers.

Having effective linkages between back-of-the-house operations and front-of-the-house operations

Having a single, unifying theme, such as convenience or speed.

Having design features and checks that will ensure service that is reliable and of high quality.
 Service Design
Guidelines for Successful Service Design

Define the service package in detail

Focus on the operation from the customer’s perspective.

Consider the image that the service package will present both to customers and to prospective customers.
Recognize that designers’ familiarity with the system may give them a quite different perspective than that of
the customer, and take steps to overcome this.
Make sure that managers are involved and will support the design once it is implemented
Define quality for both tangibles and intangibles. Intangible standards are more difficult to define, but they must
be addressed.
Make sure that recruitment, training, and reward policies are consistent with service
expectations
Establish procedures to handle both predictable and unpredictable events.
Establish systems to monitor, maintain, and improve service