Chapter 4

Product and Service Design

Focus of Product and Service Design
Product Design and Competitiveness
Service Design

MainFocus
Customersatisfaction:Understandwhatcustomerswant
Secondaryfocus
Functionofproduct/service
Cost/Profit
Quality
Appearance
Easeofproduction/assembly
Easeofmaintenance/service

Productandservicedesignorredesignshould
becloselytiedtoanorganizationsstrategy
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What Does Product or Service Design Do?

1.

Translatecustomerwantsandneeds
intoproductandservicerequirements

2.

Refineexistingproductsandservices

3.

Developnewproductsandservices

4.

Formulatequalitygoals

5.

Formulatecosttargets

6.

Constructandtestprototypes

7.

Documentspecifications

Life Cycles of Products and Services

Issues in Product Standardization

Advantages:
Fewer parts to deal with in inventory and manufacturing
Reduced design costs and time
Quality is more consistent
Opportunities for long production runs and automation
Disadvantages
Decreased variety results in less consumer appeal
High cost of design changes increases resistance to
improvements

Mass Customization: A strategy of producing standardized goods

or services, but incorporating some degree of customization

Cultural Differences

Issues in Time to Market

Concurrent Engineering is the bringing together
of engineering design and manufacturing personnel
early in the design phase.
Reverse Engineering: the dismantling and inspecting
of a competitors product to discover product improvements.
Global Product Design
Original Design Manufacturer (ODM): Designs and manufactures a
product according to purchasers specifications
OEM, ODM (Quanta), OBM (Acer)

Design for Manufacturing and Logistics

Example: Design For Manufacturing and Assembly

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Value Analysis/Value Engineering

Reduce costs of order qualifiers and order winners

Is the item necessary?

Could another material be used instead?
Can specifications be less stringent?
Can two or more parts be combined?
Can packaging be improved to save cost?
VA
VE

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Design a Service is Different

Tangible intangible

Servicescreatedanddeliveredatthesametime

Servicescannotbeinventoried()

Serviceshighlyvisibletocustomers(frontoffice)

Serviceshavelowbarriertoentry(competition)

Locationisimportanttoservicedesign

Rangeofservicesystems()

Demandvariability

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Designing Service Package

Supportingfacility:physicalresourcesthatmustbeinplace
beforeaservicecanbesold

Facilitatinggoods:materialconsumedbytheserviceprocess

Information:operationsdataorinformationtoenable
efficientandcustomizedservice

Explicitservices:benefitsreadilyobservable

Implicitservices:psychologicalbenefitswhichtheconsumer
maysenseonlyvaguely

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A Service Blueprint for a Restaurant

Interactive
Line
Lineof
Visibility
Lineof
Support

Fail-safing = pokayokes
service encounter moments of truth

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Challenges of Service Design

1.
2.
3.
4.

Needtosatisfyvariablerequirements
Difficulttodescribegoodservices
Highcustomercontact
Takeintoaccountservice customerencounter

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Guidelines for Successful Service Design

1.
2.
3.
4.
5.
6.
7.
8.
9.

Definetheservicepackageindetail
Focusoncustomersperspective (expectationand
perception)
Considerimageoftheservicepackage
Recognizethatdesignersperspectiveisdifferent
fromthecustomersperspective
Makesurethatmanagersareinvolved
Definequalityfortangibleandintangibleselements
Makesurethatrecruitment,training,andrewards
areconsistentwithserviceexpectations
Establishprocedurestohandleexceptions
Establishsystemstomonitorservice
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Conclusion

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