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Op Man - Product and Service Design
Op Man - Product and Service Design
Product and service design or redesign should be closely tied to an organization strategy. It is a major
factor in cost, quality, time to market, customer satisfaction and competitive advantage.
The driving forces for product and service design or redesign are market opportunities or threats:
1. Economic- low demand, the need to reduce cost
2. Social and Demographic- Population shifts, aging baby boomers
3. Competitive- New or changed products and services, new advertsing/promotion
4. Cost or Availability- raw materials, labor
5. Technological- processes, product components
VALUE ANALYSIS- Examination of the function of parts and materials in an effort to reduce the cost
and/or improve the performance of a product (reduce cost and materials)
VALUE is the amount that buyers are willing to pay for what a firm provides them and is measured by
total revenue
The main focus of product and service design is customer satisfaction. It is essential for designers to
understand what customer wants and design with that in mind. Marketing is the primary sources of this
information.
Quality is a high on the list of priorities in product and service design but for many electronic products
high tech appearance is a design factor. Designing for operation taking into account the capabilities of
the organization in designing goods and services in addition legal, environmental and ethical
considerations can influence the design function.
Legal Considerations
Product liability- The responsibility a manufacturer has for any injuries or damages caused by as
faulty product. Some of the associated costs: Litigation (the process of taking a case through
court), Legal and insurance costs, Settlement costs, Costly product recalls, Reputation effects.
Uniform Commercial Code- Under the UCC, products carry an implication of merchantability and
fitness (a product must be usable for its intended purposes)
1. Introduction- it may be treated as a curiosity. Demand is low because potential buyers are not
yet familiar with the item.
2. Growth- The demand increases because awareness of the product and services increases.
3. Maturity- there are few, design changes and demand levels off.
4. Decline- Market becomes saturated demand decline.
(Additional Information)
LCA procedures are part of the ISO 14000 environmental management procedures.
The ISO 14000 family addresses various aspects of environmental management. It provides practical
tools for companies and organizations looking to identify and control their environmental impact and
constantly improve their environmental performance. ISO 14001:2004 and ISO 14004:2004 focus on
environmental management systems. The other standards in the family focus on specific environmental
aspects such as life cycle analysis, communication and auditing.
Sustainability- refers in using resources in ways that do not harm ecological systems that support human
existence. Key aspects of designing for sustainability: Life cycle assessment, Reduction of costs and
materials used, Re-using parts of returned products, Recycling
STANDARDIZATION- Extent to which there is absence of variety in a product, service or process.
Standardized service implies that every customer or item processed receives essentially the same
service.
ADVANTAGES OF STANDARDIZATION
1. Fewer parts to deal with in inventory & manufacturing
2. Reduced training costs and time
3. More routine purchasing, handling and inspection procedures
4. Orders fillable from inventory
5. Opportunities for long production runs and automation
6. Need for fewer parts justifies increased expenditures on perfecting designs and improving
quality control procedure
DISADVANTAGES OF STANDARDIZATION
1. Designs may be frozen with too many imperfections remaining.
2. High cost of design changes increases resistance to improvements
3. Decreased variety results in less consumer appeal.
RELIABILITY-The ability of a product, part, or system to perform its intended function under a prescribed
set of conditions; It has an impact on repeat sales, reflect on the product’s image and it also create legal
implication if it is too low.
• 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
ROBUST DESIGN- A design that results in products or services that can function over a broad range of
conditions.
Taguchi’s Approach- Japanese engineer Genichi Taguchi’s approach is based on the concept of robust
design. The central feature of Taguchi’s approach is parameter design. This involves determining the
specification settings for both the product and process that will result in robust design.
KANO MODEL- can be an interesting way to conceptualize design characteristics in terms of customer
satisfaction.
• Basic quality- Refers to customer requirements that have only limited effect on customer
satisfaction if present, but lead to dissatisfaction if absent
• Performance quality- Refers to customer requirements that generate satisfaction or
dissatisfaction in proportion to their level of functionality and appeal
• Excitement quality- Refers to a feature or attribute that was unexpected by the customer and
causes excitement
SERVICE DESIGN
• Service- Something that is done to, or for, a customer
• Service delivery system- The facilities, processes, and skills needed to provide a service
• Product bundle- The combination of goods and services provided to a customer
Service package- the physical resources needed to perform the service, the accompanying goods and the
explicit and implicit services included.