Lesson 4 PRODUCT AND SERVICE DESIGN Other Issues in Product and Service Design

Major factors in design strategy ▪ Product/service life cycles

▪ How much standardization
Cost
▪ Mass customization
Quality
▪ Product/service reliability
Time-to-market
▪ Robust design
Customer satisfaction
▪ Degree of newness
Competitive advantage
▪ Cultural differences
Product and service design – or redesign – should be closely
Standardization
tied to an organization’s strategy
▪Extent to which there is an absence of variety in a product,
Product or Service Design Activities
service or process
1. Translate customer wants and needs into product
▪ Standardized products are immediately available to
and service requirements
customers
2. Refine existing products and services
3. Develop new products and services Advantages of Standardization
4. Formulate quality goals
▪ Fewer parts to deal with in inventory &
5. Formulate cost targets
manufacturing
6. Construct and test prototypes
▪ Design costs are generally lower
7. Document specifications
▪ Reduced training costs and time
Reasons for Product or Service Design or Redesign ▪ More routine purchasing, handling, and inspection
procedures
▪ Economic
▪ Quality is more consistent
▪ Social and demographic
▪ Orders fillable from inventory
▪ Political, liability, or legal
▪ Opportunities for long production runs and
▪ Competitive (new or changed products or services,
automation
new advertising/promotions)
▪ Need for fewer parts justifies increased
▪ Cost or availability (of raw materials, components,
expenditures on perfecting designs and improving
labor, water, energy)
quality control procedures.
▪ Technological (in product components, processes)
Disadvantages of Standardization
Objectives of Product and Service Design
▪ Designs may be frozen with too many
▪ Main focus
imperfections remaining.
▪ Customer satisfaction
▪ High cost of design changes increases resistance to
▪ Understand what the customer wants
improvements.
▪ Secondary focus
▪ Decreased variety results in less consumer appeal.
▪ Function of product/service
▪ Cost/profit Mass Customization
▪ Quality
▪A strategy of producing standardized goods or services, but
▪ Appearance
incorporating some degree of customization
▪ Ease of production/assembly
▪ Ease of maintenance/service Delayed Differentiation
Designing For Operations • Delayed differentiation is a postponement tactic
▪ Taking into account the capabilities of the ▪Producing but not quite completing a product or service until
organization in designing goods and services. customer preferences or specifications are known
▪ Failure to take this into account can:
▪Reduce productivity Modular Design
▪Reduce quality
Modular design is a form of standardization in which
▪Increase costs
component parts are subdivided into modules that are easily
Regulations & Legal Considerations replaced or interchanged. It allows:

▪ Product Liability - A manufacturer is liable for any injuries or ▪ easier diagnosis and remedy of failures
damages caused by a faulty product. ▪ easier repair and replacement
▪ simplification of manufacturing and assembly
▪ Uniform Commercial Code - Products carry an implication of
merchantability and fitness. ▪ Reliability: The ability of a product, part, or system to
perform its intended function under a prescribed set of
Designers Adhere to Guidelines conditions
▪ Produce designs that are consistent with the goals ▪ Failure: Situation in which a product, part, or system does
of the company not perform as intended
▪Give customers the value they expect
▪ Make health and safety a primary concern ▪ Normal operating conditions: The set of conditions under
▪ Consider potential harm to the environment which an item’s reliability is specified
Improving Reliability ▪ Possibly operating on a 24-hr basis
▪ Global customer needs assessment
Component design
▪ Global design can increase marketability
Production/assembly techniques
Testing Phases in Product Development Process
Redundancy/backup
1. Idea generation
Preventive maintenance procedures
2. Feasibility analysis
User education
3. Product specifications
System design
4. Process specifications
Product Design 5. Prototype development
6. Design review
Product design is the process of efficient and effective idea
7. Market test
generation and development with the goal of creating new
8. Product introduction
products.
9. Follow-up evaluation
Product Design
Idea Generation
▪ Product Life Cycles
Considered ground zero in the product development process,
▪ Robust Design
idea generation (or ideation) involves gathering information
▪ Concurrent Engineering
and creative insights in order to come up with ideas for a new
▪ Computer-Aided Design
product.
▪ Modular Design
By getting it right, you lay a solid foundation for your new
Product Life Cycle Stages
product concept and set it on the path to success
There are five distinct product life cycle stages:
IDEA
1.Product Development. When the company finds and
Supply chain based
develops a new product idea, product development starts.
Competitor based
During product development, sales are zero, and the
Research based
company’s investment costs increase.
Reverse engineering is the dismantling and
2.Introduction. Sales slowly grow as the product is introduced
in the market. Profits are still non-existent, because the heavy inspecting of a competitor’s product to discover product
expenses of the product introduction overweigh sales. improvements.

3. Growth. The growth stage is a period of rapid market Research & Development (R&D)
acceptance and increasing profits
▪ Organized efforts to increase scientific knowledge or
4.Maturity. In the maturity stage, sales growth slows down product innovation & may involve:
because the product has achieved acceptance by most
▪ Basic Research advances knowledge about a subject without
potential buyers. Profits level off or decline because
expectations of commercial applications.
marketing outlays need to be increased to defend the
product against competition. ▪ Applied Research achieves commercial applications.
5.Decline. Finally, sales fall off and profits drop. ▪ Development converts results of applied research into
commercial applications.
Robust Design: Design that results in products or services
that can function over abroad rangeof conditions Manufacturability
Taguchi Approach Robust Design ▪ Manufacturability is the ease of fabrication and/or
assembly which is important for:
Systemized statistical approach to product and process
improvement developed by Dr. G. Taguchi ▪ Cost
▪ Productivity
▪ Approach emphasizes moving quality upstream to
▪ Quality
the design phase
▪ Based on the notion that minimizing variation is the Designing for Manufacturing
primary means of improving quality
▪ Special attention is given to designing systems such Beyond the overall objective to achieve customer satisfaction
that their performance is insensitive to while making a reasonable profit is:
environmental changes
The designers’ consideration of the organization’s
Global Product Design Virtual teams manufacturing capabilities when designing a product.

▪ Uses combined efforts of a team of designers The more general term design for operations encompasses
working in different countries services as well as manufacturing
▪ Provides a range of comparative advantages over
traditional teams such as:
▪ Engaging the best human resources around the Design for Manufacturing (DFM)
world
is the process of designing parts, components or products for ▪ Remanufacturing: Refurbishing used products by replacing
ease of manufacturing with an end goal of making a better worn-out or defective components.
product at a lower cost.
▪ Remanufactured products can be sold for 50% of the cost of
This is done by simplifying, optimizing and refining the a new producer
product design. The acronym DFMA (Design for
▪ Remanufacturing can use unskilled labor
Manufacturing and Assembly) is sometimes used
interchangeably with DFM. ▪ Some governments require manufacturers to take back used
products
Some material properties to consider during DFM include
▪ Design for Disassembly (DFD): Designing products so that
•Mechanical properties - How strong does the
they can be easily taken apart.
material need to be?
•Optical properties - Does the material to be Component Commonality
reflective or transparent?
•Thermal properties - How heat resistant does it ▪ Multiple products or product families that have a high
need to be? degree of similarity can share components
•Color - What color does the part need to be?
▪ Automakers using internal parts
•Electrical properties - Does the material need to act
▪ Engines and transmissions
as a dielectric •(act as an insulator rather than a
▪ Water pumps ▪ Etc.
conductor)?
▪ Other benefits
•Flammability - How flame/burn resistant does the
▪ Reduced training for assemble and installation
material need to be?
▪ Reduced repair time and costs
Concurrent Engineering

Concurrent engineering is the bringing together of

Quality Function Deployment
engineering design and manufacturing personnel early in the
design phase. ▪ Quality Function Deployment
▪ Voice of the customer
What is concurrent engineering and its benefits?
▪ House of quality
Concurrent engineering, an approach in which multiple
QF An approach that integrates the “voice of D: the
engineering tasks or projects are performed in parallel,
customer” into the product and service development process.
provides benefits such as multidisciplinary collaboration,
improved productivity, and a faster design process. Service Design

Computer-Aided Design ▪ Service is an act

▪ Service delivery system
▪ Computer-Aided Design (CAD) is product design
▪ Facilities
using computer graphics.
▪ Processes
▪ increases productivity of designers, 3 to 10 times
▪ Skills
▪ creates a database for manufacturing information
▪ Many services are bundled with products
on product specifications
▪ provides possibility of engineering and cost analysis Service Design
on proposed design.
Service design involves
2d Auto cad templates
▪ The physical resources needed (Physical resources,
Product design such as raw material, buildings, vehicles,
transportation, storage facility, machines and
▪ Design for manufacturing (DFM)
factory)
▪ Design for assembly (DFA)
▪ Design for recycling (DFR) ▪ The goods that are purchased or consumed by the
▪ Remanufacturing customer
▪ Design for disassembly (DFD)
▪ Robust design ▪ Explicit services
▪ Implicit services
Recycling
Service Design
▪Recycling: recovering materials for future use
▪Recycling reasons ▪ Service- Something that is done to or for a customer
▪Cost savings ▪ Service delivery system- The facilities, processes, and skills
▪Environment concerns needed to provide a service
▪Environment regulations
▪ Product bundle- The combination of goods and services
provided to a customer

▪ Service package- The physical resources needed to perform

Remanufacturing the service

Differences Between Product and Service Design

▪ Tangible – intangible 1. Consistent with the organization mission
2. User friendly
▪ Services created and delivered at the same time
3. Robust
▪ Services cannot be inventoried
4. Easy to sustain
▪ Services highly visible to customers
5. Cost effective
▪ Services have low barrier to entry
6. Value to customers
▪ Location important to service
7. Effective linkages between back operations
▪ Range of service systems
8. Single unifying theme
▪ Demand variability
9. Ensure reliability and high quality
Service Systems
Challenges of Service Design
▪ Service systems range from those with little or no customer
1. Variable requirements
contact to very high degree of customer contact such as:
2. Difficult to describe
▪ Insulated technical core (software development)
▪ Production line (automatic car wash) 3. High customer contact
▪ Personalized service (hair cut, medical service)
4. Service – customer encounter
▪ Consumer participation (diet program)
▪ Self service (supermarket)

Service Demand Variability Guidelines for Successful Service Design

▪ Demand variability creates waiting lines and idle service 1. Define the service package
resources 2. Focus on customer’s perspective
3. Consider image of the service package
▪ Service design perspectives:
4. Recognize that designer’s perspective is different
▪ Cost and efficiency perspective from the customer’s perspective
5. Make sure that managers are involved
▪ Customer perspective
1. Guidelines for Successful Service Design
▪ Customer participation makes quality and demand 6. Define quality for tangible and intangibles
variability hard to manage 7. Make sure that recruitment, training and rewards
are consistent with service expectations
▪ Attempts to achieve high efficiency may depersonalize 8. Establish procedures to handle exceptions
service and change customer’s perception of quality 9. Establish systems to monitor service
Phases in Service Design

Conceptualize Operations Strategy

Identify service package components
Determine performance specifications 1. Increase emphasis on component commonality
Translate performance specifications into design 2. Package products and services
specifications 3. Use multiple-use platforms
Translate design specifications into delivery 4. Consider tactics for mass customization
specifications 5. Look for continual improvement
6. Shorten time to market
Service Blueprinting

▪ A method used in service design to describe and analyze a

proposed service Shorten Time to Market

▪ A useful tool for conceptualizing a service delivery system 1. 1.Use standardized components
2. Use technology
Major Steps in Service Blueprinting 3. Use concurrent engineering
1. Establish boundaries
2. Identify sequence of customer interactions
3. Develop time estimates
4. Identify potential failure points

Characteristics of Well Designed Service Systems