Professional Documents
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OM-4 Product & Service Design
OM-4 Product & Service Design
Product and
Service Design
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
Product and Service Design
4-2
Product or Service Design Activities
1. Translate customer wants and needs
into product and service requirements
2. Refine existing products and services
3. Develop new products and services
4. Formulate quality goals
5. Formulate cost targets
6. Construct and test prototypes
7. Document specifications
4-3
Reasons for Product or Service
Design
Economic
Social and demographic
Political, liability, or legal
Competitive
Cost or availability
Technological
4-4
Objectives of Product and
Service Design
Main focus
Customer satisfaction
Understand what the customer wants
Secondary focus
Function of product/service
Cost/profit
Quality
Appearance
Ease of production/assembly
Ease of maintenance/service
4-5
Other Issues in Product and
Service Design
Product/service life cycles
How much standardization
Mass customization
Product/service reliability
Robust design
Degree of newness
Cultural differences
4-6
Life Cycles of Products or Services
Figure 4.1
Saturation
Maturity
Demand
Decline
Growth
Introduction
Time
4-7
Standardization
Standardization
Extent to which there is an absence of
variety in a product, service or process
4-8
Advantages of Standardization
Fewer parts to deal with in inventory &
manufacturing
Design costs are generally lower
Reduced training costs and time
More routine purchasing, handling, and
inspection procedures
Quality is more consistent
4-9
Advantages of Standardization
(Cont’d)
4-10
Disadvantages of Standardization
4-11
Mass Customization
• Mass customization:
A strategy of producing standardized
goods or services, but incorporating some
degree of customization.
Mass customization is a concept where
customers are provided unique custom-
made products at the mass production
prices.
4-12
Advantages of Mass Customization
4-13
Disadvantages of Mass Customization
4-14
Delayed Differentiation
• Delayed differentiation or Postponement is
a concept where the manufacturing process
starts by making a generic or family product
that is later differentiated into a specific end-
product.
Producing but not quite completing a
product or service until customer
preferences or specifications are known.
4-15
For example, you offer an item in red, orange,
green, black, and white. If you're using delayed
differentiation, you can, instead of ordering 100
items of each color to keep in your inventory, order
only white ones to keep in stock.
4-16
Modular Design
4-17
Modular Design
A computer is one of the best examples of
modular design. Typical modules include
power supply units, processors, mainboards,
graphics cards, hard drives, and optical
drives. All of these parts should be easily
interchangeable as long as the user uses
parts that support the same standard
interface.
4-18
Reliability
4-19
Improving Reliability
• Component design
• Production/assembly techniques
• Testing
• Redundancy/backup
• Preventive maintenance procedures
• User education
• System design
4-20
Robust Design
4-21
Robust design
4-22
Phases in product design and
development
1. Idea generation
2. Feasibility analysis
3. Product specifications
4. Process specifications
5. Prototype development evaluation
6. Design review
7. Market test
8. Product introduction
9. Follow-up
4-23
Service Design
Service is an act
Service delivery system
Facilities
Processes
Skills
Many services are bundled with products
4-24
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
4-25
Differences Between Product
and Service Design
Tangible – intangible
Services created and delivered at the same
time
Services cannot be inventoried
Services highly visible to customers
Services have low barrier to entry
Location important to service
Range of service systems
Demand variability
4-26
Phases in service design
process
1. Conceptualize.
Idea generation
Assessment of customer wants/needs (marketing)
Assessment of demand potential (marketing)
2. Identify service package components needed (operations
and marketing).
3. Determine performance specifications (operations and
marketing).
4. Translate performance specifications into design
specifications.
5. Translate design specifications into delivery specifications.
4-27
Service Blueprinting
Service blueprinting
A method used in service design to describe
and analyze a proposed service
A useful tool for conceptualizing a service
delivery system
4-28
Service Mapping/Blueprinting
A tool for simultaneously depicting the
service process, the points of customer
contact, and the evidence of service from the
customer’s point of view.
Process
4-29
Express Mail Delivery Service
Truck Truck
Packaging Packaging
Forms Forms
EVIDENCE
CONTACT PERSON CUSTOME PHYSICAL
Hand-held Hand-held
Computer Computer
Uniform Uniform
Driver
Picks Deliver
Up Pkg. Package
Customer
Service
Order
Airport Fly to
Dispatch
Receives Sort Unload Load
Driver Fly to
& Loads Center & On
Destinatio Sort Truck
SUPPORT
Load on
PROCESS
Airplane
n
Sort
Packages
4-30
Building a Service Blueprint
Step
Step11 Step
Step22 Step
Step33 Step
Step44 Step
Step55 Step
Step66
Map Map
Mapcontact Add
Identify
Identifythe
the Identify
Identifythe
the Mapthe
the contact Link
Linkcustomer
customer Add
process employee evidence
evidenceofof
process to
process to customer
customeroror processfrom
from employee and contact
and contact
be the actions, service
serviceatat
beblue-
blue- customer
customer the actions, person
person
printed. segment. customer’s onstage
onstageand activities each
printed. segment. customer’s and activitiestoto each
point back-stage. customer
pointofof back-stage. needed
needed customer
view. support action
actionstep.
step.
view. support
functions.
functions.
4-31