1

Chapter Three

Product &
Service Design
2
What is Design?
• The essence of any organization is the products it offers. There is
an obvious link between design & success of the organization.

• Different customers have different: Tastes, Preferences, and

Product needs

• Variety of product designs on the market appeal to the

preferences of a particular customer group.
 • Product is designed in terms of size, color, shape, content and
3
other related dimensions.

• Who is responsible for developing design?

• Design decision is not the sole responsibility of operations
department.
• Design is an interactive decision of: marketing, purchasing,
finance, engineering, etc. and

• Involves active participations of customers, suppliers, creditors,

government agencies and other stakeholders.
4
Product Design
• Product design is the process of deciding on
the unique characteristics and features of the
company’s product.

• It is the process of dining all the features and

characteristics of just about anything you can
think of.
5

The main forces that initiate design or redesign are

1. Economic (e.g., low demand, the need to reduce costs).
(e.g., aging baby boomers, population
2. Social and demographic
shifts).
3. Political, liability, or legal (e.g., government changes, new regulations).
4. Competitive  (e.g., new product, advertising/promotions).

5. Cost or availability (e.g., of raw materials, components, labor,

water, energy).
6. Technological (e.g., in product components, processes).
6

• Customer satisfaction; Designing products & services that are

“user friendly”

• Reducing time to introduce/produce new product or service

• The organization’s capabilities to produce or deliver the right

item on time increased

• Environmental concerns; Designing products that use less material

 7
Steps in Product Design
Step 1: Idea Development/Generation
The ideas for new product or service
concepts can come from sources.
The first step
• Customer
to develop
new product • Competitors; Benchmarking &
is to generate Reverse engineering
as much • New technology
ideas as one • Research and Development (R&D)
can. • Ideas from staff
8
Step 2: Idea Screening
Not all new ideas should be developed in to new products.

The purpose of screening is to eliminate ideas that do not

appear to have a high potential for success.

Feasibility study used for initial screening: Market feasibility,

Financial feasibility and Technical feasibility. And Screening
will be done by check list or break-even analysis.
9
Step 3: Preliminary Design & Testing
• General performance characteristics are
translated into technical specifications

• Prototypes are built & tested (maybe offered

for sale on a small scale)

• For service companies this may entail testing

the offering on a small scale and working with
customers to refine the service offering.
10
Step 4: Final Design
• Specifications are drawn up & then used to:
• Develop processing and service delivery
instructions
• Guide equipment selection
• Outline jobs to be performed
• Negotiate contracts with suppliers & distributors
11 Factors we need to consider while
design of product
 Legal Consideration  Manufacturability
 Product Life Cycles  Concurrent Engineering
 Standardization  Degree of Newness
 Mass Customization  Computer-aided design (CAD)
 Reliability  Computer-aided manufacturing
 Robust design  The Three Rs:
 Quality function deployment  Reduce, Reuse, & Recycle
12
Legal and Ethical Considerations

• Product liability: The responsibility of a

manufacturer for any injuries or damages
caused by a faulty product.

• Uniform Commercial Code: A product

must be suitable for its intended purpose.
13
Product Life
Cycles (PLC)
PLC refers to the
timeline of a product's
relevancy in the market.

May be any length from

a few hours to decades.
14 Advantages of Disadvantages of
Standardization Standardization Standardization
Design costs are Designs may be frozen
Standardization refers to the generally lower with too many
imperfections
extent to which there is an remaining.
More routine High cost of design
absence of variety in a purchasing, and changes increases
product, service or process. inspection resistance to
procedures improvements.
Standardized products are
Orders fillable from Decreased variety
immediately available to inventory results in less
consumer appeal.
customers.
15 • Mass customization may be
informs of
Mass Customization: refers to a 1. Delayed differentiation:
strategy of producing standardized Producing but not quite
goods or services, but incorporating completing a product or
service until customer
some degree of customization
preferences are known.
2. Modular design: is a form
of standardization in which
component parts are
subdivided into modules
that are easily
interchanged.
16

Reliability: The ability of a product,

part, or system to perform its intended Improving Reliability
function under a prescribed set of • Reliability can be improved in
conditions a number of ways:
• Good component
Failure: Situation in which a product, • Testing
part, or system does not perform as • Redundancy/backup
intended • Preventive maintenance
17 Quality Function
Robust Design
Design that results in Deployment (QFD)
products or services that Quality function deployment
can function over a broad is a structured approach for
range of conditions.
integrating the “voice of the
Insensitive to customer” into the product
environmental factors. development process.
18

The designers’ consideration of the

organization’s manufacturing
capabilities when designing a product.

The more general term design for

operations encompasses services as
well as manufacturing
 Manufacturability is • Three concepts are closely related to
19 DFM. These are:
the ease of fabrication
and/or assembly.  Simplification; improves the
manufacturability of by reducing
Which is important for:
the complexity of its design.
Cost, Productivity
 Specification; a detail
Quality
description of material, parts, or
products.

 Standardization; activity that

reduce variety.
 Concurrent Problems of Benefits Concurrent
Old Approach Engineering
20 Engineering Inefficient and Emphasis is on
An approach that brings many costly problem-solving
Takes a longer Takes a less time due
people together in the early
amount of time to less rework
phase of product design in order Doesn’t create Representatives of
to simultaneously design the team sense different group.

product & the process.

It replaces the traditional “over

the wall approach” or
sequential design
21 Computer Aided Design
(CAD)
 Using computers to design
products & prepare engineering
documentation

 Shorter development cycles,

improved accuracy, & lower
cost
22 Computer-Aided
Manufacturing (CAM)
Utilizing specialized computers &
program to control manufacturing
equipment
Benefits of CAD/CAM;
Product quality, Shorter design time,
Production cost reductions, & New
range of capabilities
23
Degree of Newness
• Product or service design change can range from the
modification of an existing product to an entirely new product:

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.

24
The Three Rs: 2. Reuse: Remanufacturing; It refers to
refurbishing used products by replacing
1. Reduce: Value Analysis;
worn-out or defective components, and
refers to an examination of
reselling the products.
the function of parts and
materials in an effort to 3. Recycle; means recovering materials

reduce the cost and for future use. Companies recycle for a

improve the performance variety of reasons, including Cost savings,

of a product. Environment concerns and regulations.

25
Service Design
• Service is an act or it is Something that is done
to or for a customer.

• Service delivery system includes Facilities,

Processes and Skills needed to provide services

• Service typically includes direct interaction with

the customer.
 System design involves development or
26
refinement of the overall service package

1. The physical resources needed.

2. The accompanying goods that are consumed

by the customer.

3. Explicit services (the essential/core

features of a service). E.g. Tax Preparation
4. Implicit services (ancillary/extra features).
27
Differences between Service Design
and Product Design
Service Design Product Design
Intangible Tangible
Created and delivered Created and consumed
simultaneously separately
Can't be inventoried Can be inventoried
High customer interaction Low customer interaction
28 Major Steps in Service Blueprinting
1. Establish boundaries for the service and
decide on the level of detail needed.
2. Identify and determine the sequence of
customer and service actions &
A method used in interactions.
service design to 3. Develop time estimates for each phase of
describe and analyze the process, as well as time variability.

a proposed service. 4. Identify potential failure points and

develop a plan to prevent or minimize them.
29 A simple service blueprint for a Hotels
 A simple service blueprint for a shoeshine
30
Standard Brush Apply Collect
execution time Buff
shoes polish payment
2 minutes
30 30 45 15
secs secs secs secs
Total acceptable
execution time
Wrong
5 minutes
color wax
Clean Fail
shoes point Materials
Seen by
(e.g., polish, cloth)
customer 45
secs

Line of Not seen by

visibility customer but Select and
necessary to purchase
performance supplies
31
Characteristics of Well-Designed Service Systems
1. Being consistent with the organization’s mission.
2. Being user-friendly and Being robust if variability is a factor.
4. Being easy to sustain and Being cost-effective.
6. Having value that is obvious to customers.
7. Having effective linkages between back & front house operations
8. Having a single, unifying theme, such as convenience or speed.
9. Having design features that will ensure reliable & of high quality.
32

Thank You