The essence of an organization is the goods

and services it offers

Every aspect of the organization is
Product & Service Design structured around them
Product and service design or redesign

strategy

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1. Translate customer wants and needs 5. Formulate cost targets

into product & service requirements 6. Construct and test prototypes
2. Refine existing products & services 7. Document specifications
3. Develop new products and services 8. Translate product & service specifications
into process specifications
4. Formulate quality goals
9. Involve inter-functional collaboration

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1. Is there a demand for it? 3. What level of quality is appropriate?
Market size Customer expectations
Demand profile Competitor quality
2. Can we do it?
Fit with current offering
Manufacturability - the capability of an
organization to produce an item at an acceptable 4. Does it make sense from an economic
profit standpoint?
Serviceability - the capability of an organization Liability issues, ethical considerations,
to provide a service at an acceptable cost or profit sustainability issues, costs and profits

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The driving forces for product and service 1. Supply-chain based

design or redesign are market opportunities or
threats: 2. Competitor based
Economic 3. Research based
Social and demographic
Political, liability, or legal
Competitive
Cost or availability
Technological
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Ideas can come from anywhere in the By studying how a competitor operates and
supply chain: its products and services, many useful ideas
can be generated
Customers
Reverse engineering
Suppliers
Distributors product to discover product improvements
Employees
Maintenance and repair personnel

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Research and development (R&D) Product liability

Organized efforts to increase scientific knowledge The responsibility a manufacturer has for any
or product innovation injuries or damages caused by as faulty product
Basic research Some of the concomitant costs
Has the objective of advancing the state of Litigation
knowledge about a subject without any near- Legal and insurance costs
term expectation of commercial applications Settlement costs
Applied research Costly product recalls
Has the objective of achieving commercial Reputation effects
applications Uniform Commercial Code
Development Under the UCC, products carry an implication of
Converts the results of applied research into merchantability and fitness
useful commercial applications.
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 Designers are often under pressure to Sustainability
Using resources in ways that do not harm
Speed up the design process ecological systems that support human existence
Cut costs Key aspects of designing for sustainability
Cradle-to-grave assessment (Life-Cycle
These pressures force trade-off decisions assessment)
What if a product has bugs? End-of-life programs
The 3-Rs
Release the product and risk damage to your Reduction of costs and materials used
reputation Re-using parts of returned products
Work out the bugs and forego revenue Recycling

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aka Life-Cycle Assessment (LCA) Value analysis

The assessment of the environmental impact Examination of the function of parts and materials in an effort to
reduce the cost and/or improve the performance of a product
of a product or service throughout its useful Common questions used in value analysis
life Is the item necessary; does it have value; could it be
Focuses on such factors as eliminated?
Global warming Are there alternative sources for the item?
Smog formation Could another material, part, or service be used instead?
Oxygen depletion Can two or more parts be combined?
Solid waste generation Can specifications be less stringent to save time or money?
LCA procedures are part of the ISO 14000 Do suppliers/providers have suggestions for improvements?
environmental management procedures Can packaging be improved or made less costly?
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Remanufacturing Recycling
Refurbishing used products by replacing worn-out or Recovering materials for future use
defective components Applies to manufactured parts
Can be performed by the original manufacturer or another Also applies to materials used during production
company
Why recycle?
Reasons to remanufacture: Cost savings
Remanufactured products can be sold for about 50% of the
cost of a new product
Environmental concerns
The process requires mostly unskilled and semi-skilled Environmental regulations
workers Companies doing business in the EU must show that a
In the global market, European lawmakers are increasingly specified proportion of their products are recyclable
requiring manufacturers to take back used products Design for recycling (DFR)
Design for disassembly (DFD) Product design that takes into account the ability to
Designing a product to that used products can be easily taken disassemble a used product to recover the recyclable
apart parts
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Standardization
Extent to which there is an absence of
variety in a product, service, or
process
Products are made in large quantities of
identical items
Every customer or item processed
receives essentially the same service
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 Mass customization Delayed differentiation
A strategy of producing basically The process of producing, but not quite
standardized goods or services, but completing, a product or service until
incorporating some degree of
customer preferences are known
customization in the final product or
service It is a postponement tactic
Facilitating techniques Produce a piece of furniture, but do not
Delayed differentiation stain it; the customer chooses the stain
Modular design
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Modular design Reliability

A form of standardization in which component parts are grouped The ability of a product, part, or system to perform
into modules that are easily replaced or interchanged
its intended function under a prescribed set of
Advantages
conditions
Easier diagnosis and remedy of failures
Failure
Easier repair and replacement Situation in which a product, part, or system does not
Simplification of manufacturing and assembly perform as intended
Training costs are relatively low Reliabilities are always specified with respect to
Disadvantages
certain conditions
Normal operating conditions
Limited number of possible product configurations
Limited ability to repair a faulty module; the entire module specified
must often be scrapped

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 Robust design
A design that results in products or services that can Product or service design changes:
function over a broad range of conditions 1. Modification of an existing product or service
2. Expansion of an existing product line or service offering
The more robust a product or service, the less likely
3.
it will fail due to a change in the environment in
4. New product or service
which it is used or in which it is performed
Pertains to product as well as process design The degree of change affects the newness of the
Consider the following automobiles: product or service to the market and to the
Ferrari Enzo organization
Toyota Avalon Risks and benefits?
o Which is design is more robust?

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Quality Function Deployment (QFD)

service development
The purpose is to ensure that customer
requirements are factored into every aspect of
the process
Listening to and understanding the customer is
the central feature of QFD

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 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

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CAD
Product design using computer graphics
Concurrent engineering Advantages
Bringing engineering design and manufacturing Increases productivity of designers, 3 to 10 times
personnel together early in the design phase Creates a database for manufacturing information
Also may involve manufacturing, marketing and and product specifications
purchasing personnel in loosely integrated cross- Provides possibility of engineering and cost analysis
functional teams on proposed designs
Views of suppliers and customers may also be sought
CAD that includes finite element analysis (FEA) can
The purpose is to achieve product designs that significantly reduce time to market
reflect customer wants as well as manufacturing Enables developers to perform simulations that aid
capabilities in the design, analysis, and commercialization of
new products
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 Designers must take into account production Manufacturability
capabilities Ease of fabrication and/or assembly
Equipment
It has important implications for
Skills
Cost
Types of materials
Productivity
Schedules
Quality
Technologies
Special abilities

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When products have a high degree of Begins with a choice of service strategy, which
similarity in features and components, a determines the nature and focus of the service,
part can be used in multiple products and the target market
Benefits: Key issues in service design
Savings in design time Degree of variation in service requirements
Standard training for assembly and installation Degree of customer contact and involvement
Opportunities to buy in bulk from suppliers
Commonality of parts for repair
Fewer inventory items must be handled
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 1. Products are generally tangible, services 5. Some services have low barriers to entry and exit
intangible 6. Location is often important to service design, with
convenience as a major factor
2. Services are created and delivered at the 7. Service systems range from those with little or no
same time customer contact to those that have a very high
3. Services cannot be inventoried degree of customer contact
8. Demand variability alternately creates waiting lines
4. Services are highly visible to consumers or idle service resources

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Characteristics Characteristics
Being consistent with the organization mission Being consistent with the organization
Being user-friendly mission
Being robust if variability is a factor Being user-friendly
Being easy to sustain
Being cost-effective
Being robust if variability is a factor
Having value that is obvious to the customer Being easy to sustain
Having effective linkages between back- and Being cost-effective
front-of-the-house operations
Having a single, unifying theme
Having design features and checks that will
ensure service that is reliable and of high quality
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 1. Define the service package in detail
Characteristics 2.
Having value that is obvious to the perspective
customer 3. Consider the image that the service package will
Having effective linkages between back- present both to customers and to prospective
and front-of-the-house operations customers
Having a single, unifying theme
4.
Having design features and checks that will
ensure service that is reliable and of high system may give them a quite different perspective
quality than that of the customer, and take steps to
overcome this

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5. Make sure that managers are involved and will Effective product and service design can help the
support the design once it is implemented organization achieve competitive advantage:
6. Define quality for both tangibles and intangibles Packaging products and ancillary services to increase
7. Make sure that recruitment, training, and reward sales
Using multiple-use platforms
policies are consistent with service expectations
Implementing tactics that will achieve the benefits of
8. Establish procedures to handle both predictable and high volume while satisfying customer needs for variety
unpredictable events Continually monitoring products and services for small
9. Establish system to monitor, maintain, and improve improvement opportunities
service Reducing the time it takes to get a new or redesigned
product or service to the market

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