PRODUCT AND SERVICE

DESIGN
PRESENTED BY:
Alona B. Abiog
Catherine A. Zuñiga
MBA 2-B
LEARNING OBJECTIVES

• Explain the strategic importance of product and service design.

• Describe what product and service design does.
• Name the key questions of product and service design.
• Identify some reasons for design or redesign.
• List some of the main sources of design ideas.
• Discuss the importance of legal, ethical, and sustainability
considerations in product and service design.
WHAT IS PRODUCT AND SERVICE DESIGN?

• Product and service design refers to

the entire process of engineering a
potential future product or service,
including its form, fit, and function.
What Does Product and Service Design Do?

1. Translate customer wants and needs into product and service

requirements. (marketing, operations)
2. Refine existing products and services. (marketing)
3. Develop new products and/or services. (marketing, operations)
4. Formulate quality goals. (marketing, operations)
5. Formulate cost targets. (accounting, finance, operations)
6. Construct and test prototypes. (operations, marketing, engineering)
7. Document specifications.
8. Translate product and service specifications into process
specifications. (engineering, operations)
 KEY QUESTIONS FOR PRODUCT AND SERVICE
DESIGN

1. Is there demand for it?

2. Can we do it?
- MANUFACTURABILITY -  The capability of an organization
to produce an item at an acceptable profit.
- SERVICEABILITY - The capability of an organization to
provide a service at an acceptable cost or profit.
3.What level of quality is appropriate?
4.Does it make sense from an economic standpoint?
 REASONS FOR PRODUCT AND SERVICE DESIGN
OR REDESIGN

• ECONOMIC
• SOCIAL AND DEMOGRAPHIC
• POLITICAL, LIABILITY OR LEGAL
• COMPETITIVE
• COST OR AVAILABILITY
• TECHNOLOGICAL
 IDEA GENERATION – SUPPLY CHAIN BASED

• Ideas can come from anywhere in the supply chain:

- Customers
• Surveys, focus groups, complaints, suggestions
- Suppliers
- Distributors
- Employees
 IDEA GENERATION – COMPETITOR BASED

• Studying how a competitor operates and its

products and services

• Reverse engineering
- Dismantling and inspecting a competitor’s
product to discover product improvements
 IDEA GENERATION – RESEARCH BASED

• Research and Development (R&D)

- Organized efforts to increase scientific knowledge or product innovation

• Basic research
- Objective: advancing the state of knowledge about a subject without
any near-term expectation of commercial applications
• Applied research
- Objective: achieving commercial applications
• Development
- Converts the results of applied research into useful commercial
applications.
 DESIGN CONSIDERATIONS - HUMAN FACTORS

• Safety and Liability

• Adding new features

- Good? Bad?
 DESIGN CONSIDERATIONS - CULTURAL
FACTORS

• Customers come from all over the world.

• Different designs for different countries

or regions.
 DESIGN CONSIDERATIONS - LEGAL

• Legal Considerations
• Product liability
- The responsibility a manufacturer has for any injuries or damages caused by as
faulty product
- Some of the concomitant costs
• Litigation
• 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
 DESIGN CONSIDERATIONS - ETHICS

• Designers are often under pressure to

- Speed up the design process
- Cut costs
• These pressures force trade-off decisions
- Release the product and risk damage to your
reputation
ENVIRONMENTAL FACTORS:
SUSTAINABILITY
Cradle-to-Grave End-of-life Programs The Three Rs: Reduce, Reuse,
Assessment
-Deals with products and Recycle
- The assessment of the
environmental impact of that have reached -Reflects the three particular
a product or service the end of their aspects of cost-saving and
throughout its useful life. useful lives. reducing environmental impact.
 OTHER DESIGN CONSIDERATIONS
• Strategies for Product or
Service Life Stages
Stage 1: Product Development
- The new product is introduced; this is when all of the research and
development happens. 
Stage 2: Product Growth
-The product is more than an idea or a prototype. At this stage, the
product is manufactured, marketed, and released. Distribution increases,
demand increases, and competition also increases. 
Stage 3: Product Maturity
-During this stage, the product is widely available, and there are many
competitors in the marketplace. You market the product to different
segments, but more spending on advertising will have no impact on its
demand. 
Stage 4: Product Decline
-The product is losing market share, or becoming obsolete. It is well past
its point of highest demand, and the demand decreases.  
***OTHER DESIGN CONSIDERATIONS
• Degree of Standardization
- Lacking of variability in product , services and processes
- Advantages :
1. Fewer parts to deal with in inventory and in 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 procedures.
- Disadvantages :
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.
***OTHER DESIGN CONSIDERATIONS
• Designing for Mass Customization
- A strategy of producing basically standardized goods, but
incorporating some degree of customization

Delayed differentiation  
-The process of producing, but not quite completing, a product
or service until customer preferences are known.

Modular design  
-A form of standardization in which component parts are
grouped into modules that are easily replaced or interchanged.
***OTHER DESIGN CONSIDERATIONS
• Reliability Failure  
Situation in which a product, part, or system does not
- a measure of the ability of a product, a part, a perform as intended.
service, or an entire system to perform its Normal operating conditions
intended function under a prescribed set of The set of conditions under which an item’s reliability is
conditions. specified.

Potential ways to improve reliability:

1. Improve component design.

2. Improve production and/or assembly techniques.
3. Improve testing.
4. Use backups.
5. Improve preventive maintenance procedures.
6. Improve user education.
7. Improve system design.
 ***OTHER DESIGN CONSIDERATIONS
• Robust Design

- 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. His premise is that it is
often easier to design a product that is insensitive to
environmental factors, either in manufacturing or in use,
than to control the environmental factors.
 ***OTHER DESIGN CONSIDERATIONS
• Degree of Newness

- Product or service design change can range from the modification of an existing
product or service to an entirely new product or service.

1. Modification of an existing product or service.

2. Expansion of an existing product line or service offering.
3. Clone of a competitor’s product or service.
4. New product or service.
***OTHER DESIGN CONSIDERATIONS
• Quality Function Deployment

- An approach that integrates the “voice of the customer” into both product and
service development.

MAIN QFD MATRIX:

The matrix provides a
structure for data collection
 ***OTHER DESIGN CONSIDERATIONS

• Quality Function Deployment….

An approach involves a sequence of

“houses,” beginning with design
characteristics, which leads to specific
components, then production
processes, and finally, a quality plan.
 ***OTHER DESIGN CONSIDERATIONS

• Quality Function Deployment

 ***OTHER DESIGN CONSIDERATIONS

• Quality Function Deployment: The House of Quality Sequence

- provides a conceptual understanding of the

progression involved
***OTHER DESIGN CONSIDERATIONS
• The KANO Model
- A theory of product and service design developed by Dr. Noriaki Kano, a Japanese professor, wherein the
model employs three definitions of quality: basic, performance, and excitement.
PHASES IN PRODUCT DESIGN AND DEVELOPMENT

1. Feasibility Analysis 2. Product Specifications 3. Process Specifications

4. Prototype Development 5. Design Review 6. Market Test

7. Product Introduction 8. Follow-up Evaluation

DESIGNING FOR PRODUCTION

CONCURRENT ENGINEERING
COMPUTER-AIDED DESIGN (CAD)
- Bringing engineering design and
- Product design using computer
manufacturing personnel together early
graphics.
in the design phase.
***DESIGNING FOR PRODUCTION

PRODUCTION REQUIREMENTS
- designers must take into account production
capabilities. Design needs to clearly COMPONENT COMMONALITY
understand the capabilities of production - use of the same components among products in
(e.g., equipment, skills, types of materials, a product family.
schedules, technologies, special abilities).
SERVICE DESIGN

- Begins with the choice of a service strategy, which determines the nature and focus of the service, and the target
market.
- Two key issues are the degree of variation in service requirements and the degree of customer contact and customer
involvement in the delivery system. T

SERVICE SERVICE DELIVERY SYSTEM

- An action done for a customer (client, patient, - The facilities, processes, and skills needed to provide
etc.). a service.

SERVICE PACKAGE
PRODUCT BUNDLE - The physical resources needed to perform the
- The combination of goods and services service, the accompanying goods, and the explicit and
provided to a customer. implicit services included
***SERVICE DESIGN
***SERVICE DESIGN

Service blueprint  
-A method used in service design to describe and analyze a
proposed service.
***SERVICE DESIGN

Characteristics of Well-Designed Service Systems

1. Being consistent with the organization’s mission.

2. Being user-friendly.
3. Being robust if variability is a factor.
4. Being easy to sustain.
5. Being cost-effective.
6. Having value that is obvious to customers.
7. Having effective linkages between back-of-the-house operations (i.e., no contact with the customer)
and front-of-the-house operations (i.e., direct contact with customers).
8. Having a single, unifying theme, such as convenience or speed.
9. Having design features and checks that will ensure service that is reliable and of high quality.
OPERATIONS STRATEGY
Product and service design is a fertile area for achieving
competitive advantage and/or increasing customer
satisfaction. Potential sources for this goal are the
following:
• Packaging products and ancillary services to increase sales.
• Using multiple-use platforms.
• Implementing tactics that will achieve the benefits of high
volume while satisfying customer needs for variety, such as
mass customization.
• Continually monitoring products and services for small
improvements rather than the “big bang” approach.
• Shortening the time it takes to get new or redesigned goods
and services to market.
From a design standpoint, reducing the time
to market involves :
• Using standardized components to create
new but reliable products.
• Using technology such as computer-aided
design (CAD) equipment to rapidly design
new or modified products.
• Concurrent engineering to shorten
engineering time.
REFERENCES

 W. Stevenson (2015), Operations Management, 12th Edition

 https://www.tasstudent.com/life-cycle-analysis/
 https://www.westermo.com/support/product-life-cycle ,Westermo product life cycle
and notifications
 https://www.korenix.com/en/support/p02.aspx?kind=80 ,Product Life Cycle
 http://www.reducereuserecycle.co.uk
 https://www.smartsheet.com/product-life-cycle-management ,Data, Data,
Everywhere! Product Lifecycle Management in the World of IoT
 https://kaizeninstituteindia.wordpress.com/2013/12/05/standardization ,KAIZEN/SIX
SIGMA /LEAN MANAGEMENT/ TRAINING & CONSULTING /OPERATIONAL EXCELLENCE
Thank You!!!