INTRODUCTION

❑ The essence of an organization is the goods and services

it offers
- Every aspect of the organization is structured
around it
❑ Product (Goods and Service) design (or redesign) should be
closely tied to an organization’s strategy
❑ organization success is dependent on customer satisfaction
and delight
❑ A successful product or services do not only have attractive
package design but should be also able to provide robust
performance. Thus, product design must be practical
enough for production and powerful enough to provide a
competitive advantage.
DEFINITION ❑ Service design is the coordination and
combination of people, communication,
and material components to create quality
service. Product design is the combination
of manufacturing capabilities with product
and business knowledge to convert ideas
into physical and usable objects.

❑ Physical Product design is the

combination of manufacturing capabilities
with product and business knowledge to
convert ideas into physical and usable
objects.
OBJECTIVES The objectives of product and
service design is to obtain
customer satisfaction and
maximize the value of the product
or service at minimum cost. The
product or service should also be
able to meet primary needs and
desire of the customer. This may
not require development of new
product, but enhancement to
existing product or service.
Market Opportunities or Threats drive product (goods & services)
design (or redesign)

Economic Competitive
Low demand, need to reduce costs, New or changed products and
quality problems services

Social and Demographic Cost of Availability

Aging populations, REASONS Raw materials, components,
population changes labor, energy

Political, Liability, or Legal Technological

Regulations, saety issues Product components, processes

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IS THERE A DEMAND FOR IT? WHAT LEVEL OF QUALITY IS

• Market size APPROPRIATE?
• Demand profile (short/long term, • Customer expectations
slow/fast growth) • Competitor quality
• Fit with current offering
CAN WE DO IT?
•Manufacturability - the capability of an DOES IT MAKE SENSE FROM AN
organization to produce an item at an ECONOMIC STANDPOINT?
acceptable profit • Costs and profit
•Serviceability - the capability of an •Liability issues, ethical considerations,
organization to provide a service at an sustainability issues
acceptable cost or profit
 FACTORS AFFECTING PRODUCT AND SERVICE
DESIGN

Prototyping and Testing 3 4 Raw Materials

Customer 2 5 Production method and

process layout
Involvement

Correct Team 1 6 External Factors

Selection
PHASES ❑ Feasibility Analysis
- Demand, development and production
cost, potential profit, technical analysis,
capacity requirements, skills needed, fit
with mission

❑ Product Specifications
- What’s needed to meet customer wants

❑ Process Specifications
- Weigh alternative processes in terms of
cost, resources, profit, quality

❑ Prototype Development
- Few units are made to find problems
with the product or process
PHASES ❑ Design Review
- Changes are made or project is
abandoned

❑ Market Test
- Determine customer acceptance. If
unsuccessful return to Design-review

❑ Product Introduction
- Promotion

❑ Follow-Up Evaluation
- Based on feedback, changes may be
made
IDEA GENERATION:
SUPPLY-CHAIN BASED
 SUPPLY-CHAIN BASED
Ideas can come from anywhere in the
supply-chain:

▪ Suppliers
▪ Employees
▪ Distributors
▪ Customers
IDEA GENERATION:
COMPETITOR-BASED

GENERATION
 COMPETITOR BASED
▪ Studying a competitor’s
products and services

▪ Reverse engineering
■ Dismantling and
inspecting a
competitor’s product
to study its
construction and
composition
IDEA GENERATION:
RESEARCH-BASED

GENERATION
 RESEARCH BASED
★ Basic research
Objective: advancing the state of
knowledge about a subject without
near-term expectation of commercial
applications
Research and
Development (R&D) ★ Applied research
- organized efforts to Objective: commercial applications
increase (scientific)
knowledge or product ★ Development
innovation Objective: Converting the results of
applied research into commercial
applications
 QFD
❑ Integrate the “voice of the customer” into
product and service development
❑ Displays requirements in matrix diagram
(The “house of quality”)

Benefits of QFD

1. Customer Driven
2. Reduces Implementation Time
3. Promotes Teamwork
4. Provides Documentation
STANDARDIZATION
❑ Absence of variety in a product, service, or
process

- Products are made in large quantities of

identical items

- Every unit [customer] processed goes

through the same process [receives
essentially the same service]
STANDARDIZATION
Advantages: Disadvantages:
- Fewer parts to deal with in inventory - High cost of design changes
and in manufacturing increase resistance to
- Reduced training costs and time improvements: design may be
- More routine purchasing, handling, frozen with too many
and inspection procedures imperfections
- Orders fillable from inventory - Decreased variety results in
- Opportunities for long production runs less consumer appeal
and automation
PRODUCT/SERVICE LIFE-STAGES
Mass Customization
- a strategy for producing standardized goods or services, while
incorporating some degree of customization in the final product or service.

TECHNIQUES

DELAYED
DIFFERENTIATION MODULAR DESIGN

The process of producing, but Components are grouped into

not quite completing, a product modules that are easily replaced
into customer preferences are or interchanged.
known
 MODULAR DESIGN
Advantages:
1. Simplification of Disadvantage:
manufacturing and assembly
2. Relatively low training costs 1. Limited number of
3. Easier diagnosis and remedy possible product
of failures configuration (e.g., a
4. Easier repair and PC computer)
replacement
DESIGNING (PRODUCTS) FOR PRODUCTION

Concurrent Production
engineering requirements

Computer
Component
-Assisted
Design (CAD)
commonality
DESIGNING (PRODUCTS) FOR PRODUCTION
Concurrent
engineering
- Bringing design, marketing, purchasing
and manufacturing personnel together
early in the design phase
▪ Integrated cross-functional teams
▪ Views of suppliers and customers
may also be sought
The purpose:
✔Achieve product designs that reflect
customer wants as well as manufacturing
capabilities
Computer-Assisted Design
(CAD)
- Increased designers’
productivity
- Directly provides information
to manufacturing (dimensions,
material – BOM)
- Perform analysis:
engineering, cost
- Shortens time-to-market
- E.g., SolidWorks, AutoCad
 Design for
Manufacturing (DFM) DFM and DFA
❑ Designing products that are compatible
with an organization’s capabilities
- Equipment
- Skills
- Types of materials
- Schedules
Design for
- Technologies Assembly (DFA)
- Special abilities
❑ When Opportunities and Capabilities do ❑ Reducing the number of
not match management must consider parts in a product and
expanding or changing capabilities on assembly methods
❑ Manufacturability and sequence
- Ease of fabrication and/or assembly
- Has important implications for:
• Cost
• Productivity
• Quality
DESIGNING (PRODUCTS) FOR PRODUCTION
Component Commonality
- Using (standardized) parts in
multiple products
- Benefits:
• Reduced design time
• Standard training for
assembly and installation
• Opportunities to buy in bulk
from suppliers
• Commonality of parts for
repair
• Fewer inventory items must
be handled
Service Design
- Begins with a choice of
service strategy, which
determines the nature and
focus of the service, and the
target market
- Key issues in service design:
• Degree of variation in
service requirements
• Degree of customer
contact and involvement
 DIFFERENCES BETWEEN SERVICE AND
PRODUCT DESIGN
➔ Services are created and delivered at the same
time.
- Less opportunity to correct errors
- Training, process design more
important
➔ Services cannot be inventoried capacity issues
➔ Services are highly visible to consumers
➔ Service systems range from those with little or
no customer contact (similar to product design)
to those that have a very high degree of
customer contact
➔ Location is often important to service design
- Convenience is a major factor
DIFFERENCES BETWEEN SERVICE AND
PRODUCT DESIGN
➔ Demand variability – time & quantity &
requirements – alternately creates
waiting lines or idle service resources
- Cost and efficiency perspective vs.
customer perspective
- Standardizing
● Risk of eliminating features
that customers value
● Reduce customer choices (e.g.,
cable channels bundle)
● Increase flexibility (e.g.,
temporary workers)
CHALLENGES TO SERVICE DESIGN
➢ Variability
➢ Timing
- Services cannot be stored
➢ Quantity
- Balancing supply and demand:
● Possible (e.g., doctor’s
appointments)
● Impossible (e.g., emergency room)
➢ Requirements
- Difficult to predict customer
- Especially when there is direct contact
with the customer
 SERVICE BLUEPRINT
- A method to design and analyze a service

STEPS:
1) Establish boundaries and decide the
level of detail needed
2) Identify and determine the sequence
of customer and service actions and
interactions. Picture the service from
the customer’s perspective
3) Develop time estimates for each
phase of the process, as well as time
variability.
4) Identify potential failure points and
develop a plan to prevent or
minimize them, as well as a response
plan
 VALUE STREAM MAPPING
1. Specify value from the standpoint of the
customer
2. Identify all the steps in the process – from
incoming goods from suppliers to shipment of
products [delivery of service] to customers –
and create a visual map
3. Collect data: processing time, waiting times,
distance, errors, inefficient work methods, etc.
4. Objective: Increase value – time, cost, quality,
variety – to customer. Eliminate steps that do
not create value
5. Repeat as long as waste exists
 VALUE STREAM MAPPING
Ask Yourself
- Where are the bottlenecks?
- Where do errors occur?
- Which process has to deal with the most variation?
- Where does waste occur?
❑Excess inventory
❑Over-processing – paperwork, redundancy
❑Waiting lines
❑Unnecessary transportation
❑Processing waste – using more resources than
required
❑Inefficient work methods
❑Mistakes
❑Underused people
VALUE STREAM MAPPING: SYMBOLS
 VALUE STREAM MAPPING EXAMPLE
Urgent-Care Visit
- Value to customer: accurate and quick exam