Chapter 2:

Designing Products,
Services and
Processes
What does Product and Service
Design Do?
 Translating customers wants and need into
product and service requirements.

 Refine existing products and services

 Develop new product or services

 Formulate quality goals

Key Question:

From a buyer’s standpoint most, purchasing decisions entails to

fundamentals consideration: cost and quality/performance.

From the Organization standpoints the key question are:

1. Is there a demand for it? (market size, demand profile)

2. Can we, do it? ( manufacturability, serviceability )

3. What level of quality appropriate? (customer expectation,

competitor quality)

4. Does it make sense from an economic standpoint? (liability issues,

ethical consideration, sustainability issues, cost and profit)
Reasons for Product and Service Design or Redesign

Product and services design has typically had strategic implications

for the success and prosperity of an organization. Furthermore, it has an
impact on future activities. Threats & opportunities

The factors that give rise to market opportunities and

threats can be one or more changes:

 Economic-Low demand, excessive

warranty claims, the needs to
reduce cost
 Social and demographic -aging baby boomers,
population shifts

 Political, liability, or legal- government changes,

safety issues, new regulations

 Competitive- new or changed products or services,

new advertising/promotions
 Cost or availability -raw materials, component,
labor, water, energy

 Technological - in products component,

processes
List of some of the main sources of design ideas:
Ideas Generation

Dismantling and inspecting a competitor’s product to

Reverse engineering
discover product improvements.

Research and Organized efforts to increase scientific knowledge or

development (R&D) product innovation

R&D efforts may involve:

has the objective of advancing the state of knowledge about a subject,
Basic research
without any near-erm expectation of commercial applications.

Applied research has the objective of achieving commercial applications.

converts the results of applied research into useful

Development
commercial applications.
 LEGAL AND ETHICAL CONSIDERATIONS

Designers must be careful to take into account a wide array of legal

and ethical considerations given that these are generally mandatory. Most
organizations are subject to numerous government agencies that regulate
them.

The responsibility of a manufacturer for any injuries

Product liability or damages caused by a faulty product

Products carry an implication of merchantability and fitness.

Uniform
Commercial Code A product must be suitable for its intended purpose.

Human factor issues often arise in the design of consumer

HUMAN FACTORS products.
Safety and liability are two critical issues
 ENVIRONMENTAL FACTORS: SUSTAINABILITY

Key aspects of SUSTAINABILITY:

The assessment of the environmental impact of a product

Cradle-to-grave assessment
or service throughout its useful life also known as life cycle
analysis.

Deal with products that have reached the end of their

End-of-life(EOL) programs
useful lives.
The purpose of these programs is to reduce the dumping of
products, particularly electronic equipment, in landfills or
third-world countries.
 Three Rs:

Reduce: Value analysis Examination of the function of parts and materials in an effort
to reduce cost and/or improve product performance.

Remanufacturing Refurbishing used products by replacing worn-out or

Reuse:
defective components.

Recycle: Recycling Recovering materials for future use.

The pressure to recycle has given rise to the term design for
recycling (DFR)
 Design for recycling (DFR)
Design that facilitates the recovery of materials and
components in used products for reuse. Reasons to
recycle, includes:
1. Cost savings

2. Environmental concerns

3. Environmental regulations

OTHER DESIGN CONSIDERATIONS

Product life cycle management (PLM)

A systematic approach to managing the series of

changes a product goes through, from its conception
to its end life.
11
 3 Phases of PLM application:

01
End of Life-
strategies for
product
Beginning of Life-
Design and Development.
discontinuance,
disposal, or
recycling.

03 02

Middle of Life- working

with suppliers, managing
product information and
warranties.
 Standardization
The process of making something conform to a standard
Standardized products mean interchangeable parts.

Major advantages and disadvantages of standardization:

Advantages: Disadvantages:
Product Innovation Stagnation
Benefits to the consumers Differences in equipment
International Markets Cultural differences
 MASS CUSTOMIZATION

A strategy of producing basically standardized goods

but incorporating some degree of customization.

Several tactics make mass customization possible:

1. DELAYED DIFFERENTIATION
is a “postponement tactic” the process of producing, but not
quite completing, a product or service, postponing
completion until customer preferences or specifications are
known

2. MODULAR DESIGN
A form of standardization in which component parts are
grouped into modules that are easily replaced or
interchanged.
 RELIABILITY

The ability of a product, part, or system to perform its

intended function under a prescribed set of conditions.

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

Design that results in products or services that can function

over a broad range of conditions.

QUALITY FUNCTION DEPLOYMENT (QFD)

 An approach that integrates the “voice of the customer”

into both product and service development.

 A measure of customer requirements relates to its

corresponding technical requirements.
 The Kano model is a
theory of product and service
design developed by Dr. Noriaki
Kano, a Japanese professor, who
offered a perspective on customer
perceptions of quality different
from the traditional view that
“more is better.”

ki Kan o
o r ia
Dr. N
 Two dimensions of Kano Model:

1. Achievement/ Functionality (horizontal) 2. Customer Satisfaction (vertical)

 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
 Feasibility analysis

entails market analysis (demand), economic analysis

(development cost and production cost, profit potential),
and technical analysis (capacity requirements and
availability, and the skills needed)

Product
specifications
detailed descriptions of what is needed to meet (or
exceed) customer wants

Process specifications

Alternatives must be weighed in terms of cost,

availability of resources, profit potential, and quality

Prototype development

Units are made to see if there are any problems with

the product or process specifications.
 Design review
any necessary changes are made, or the project is
abandoned

Market test
used to determine the extent of consumer acceptance

Product introduction
new product is promoted

Follow-up evaluation
Based on user feedback, changes may be made, or
forecasts refined.
 DESIGNING FOR PRODUCTION

Concurrent engineering

Also known as simultaneous development

Bringing engineering design and manufacturing
personnel together early in the design phase.
-”Over-the-wall” approach contributed to “us versus
them” mentality
 Advantage of Concurrent engineering

• Manufacturing Personnel are able to identify

production capabilities and capacities

• Competitive advantage

• Design can be assessed early

• Problem Resolution instead of conflict resolution

Potential Difficulties

Long standing boundaries between design and

manufacturing can be difficult to overcome
Computer-aided design (CAD) Must have extra communication and flexibility
The major benefit is that it increases productivity of
designers
Product design using computer graphics.
Fine Element Analysis - is a simulation that help in the
design analysis and commercialization of product
 Production Requirements

• Production Capabilities
designers must know the capabilities of the production
of the company.

• Forecasting
is the process of demand forecast

• Manufacturability

Design for manufacturing (DFM) Component Commonality

The designing of products that are compatible with an offering multiple products or services to
organization’s capabilities. customers that often has high degree of
similarity of features and components.
Design for assembly (DFA)
Design that focuses on reducing the number of parts in
a product and on assembly methods and sequence.
SERVICE DESIGN
 Service
Something that is done to or
for a customer

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.

Two key issues in service design:

1. Degree of variation in service requirements

2. Degree of customer contact and customer involvement in

the delivery system
 Phases in the 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.
 Service blueprint

A method used in service design to describe and analyze

a proposed service.

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). Front operations should focus
on customer service, while back operations should focus on speed and efficiency.
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.
REFERENCES
-
https://www.studocu.com/en-gb/document/ateneo-
de-davao-university/operations-mgt-total-quality-
mgt/reveiwer-02-omqtm-product-service-design/1
0760464
https://www.marketing91.com/what-is-product-
standardization-uses-and-advantages/?
fbclid=IwAR161PLDRyTKTB41HSOa4qIZxl3M
RZnWa0LoU-5ZP1KE1MESjEG9_KjA5pg
-
https://www.scribd.com/document/495978202/Intr
oduction-of-OM
THANKYOU!!!