Product and Service Design
Operations Management
Lecture # 3
Farhat Fatima, Lecturer Management Sciences
Strategic Importance of the Product and Service Design
◦ Design is becoming increasingly important aspect in Business Strategy
◦ Product and services design is the key avenue to achieve competitive edge
and sustainability in market.
◦ Product and Service design touches every department of business
organization from operations to supply chain, finance, marketing, accounting,
and information system
What does Product and Service Design do?
oRespond to customers requirements
oDocument specifications
oRefine existing product and services
oDevelop new product and service
oFormulate Quality Goals
oMatch the Cost targets
oConstruct or test prototypes
oTranslate product and service specifications into process specifications.
Key Questions for the Organization
1. Is there demand for it?
2. Can we do it?
3. What level of Quality is appropriate?
4. Does it make sense from an economic viewpoint?
Reasons for Product and Service Design or Redesign
1. Economic (low demand, excessive warranty claims, need cost reduction)
2. Social and Demographic (e.g. population shift)
3. Political, liability or legal issues (govt. changes, safety, new regulations)
4. Competitiveness
5. Cost or availability (new components, labor, water, energy)
6. Technological (components, process requirements)
1. IDEA GENERATION
Motivating Factors for new product and service;
1. Competitors’ product and services
o
o
o
o
Pricing policy
Return policy
Warranties
Location strategy
2. Research & Development
2. Legal and Ethical Consideration
Designers must be careful to take into account legal and ethical consideration.
Generally they are mandatory.
1. Environmental Consideration
2. Uniform Commercial Code and Compliance with legal framework &
guidelines of regulatory bodies.
3. Occupational Safety and Health Consideration
4. Removing hazardous materials - Toy designing to remove sharp edges and
toxic materials
5. Accessibility in building designs
6. Product liability
oThe responsibility of the manufacturer for any injuries or damages caused by
a faulty product.
7. Organizations want designers to adhere the following guidelines;
oProduct design should be consistent with the goals and objectives of the
organization.
oGive customers the value they expect
oMake health & safety a primary concern.
8. Human Factors
1. Safety and liability
2. Unnecessary features – cause of dissatisfaction due to complexity
9. Cultural Factors
Different designs for different countries/regions that are culturally acceptable
10. Global Product & Services Design
Taking advantage from global designs/ specifications- virtual teams
Environmental Factors- Sustainability
1. Cradle-to-Grave Assessment:
The Assessment of the environmental impact or a product or service
throughout its life.
2. End-of-Life Programs
End-of-Life Programs deals with the products that have reached the end of
their useful lives.
The Products include both customer products and business equipment.
The purpose of this program is to reduce the dumping of products.
The Three Rs,
1. Reduce- Value Analysis
Examination of the function of parts and materials in to reduce cost and
improve product performance
2. Reuse- Remanufacturing
Refurbishing used products by replacing worn-out or defective components
and reselling the products.
Design for disassembly- used products can be easily taken apart
3. Recycle
Means recovering materials for future use – Design for recycling
Other Designing Consideration
1. Strategy for Product or Service Life Stages
2. Degree of Standardization
3. Designing for Mass Customization
4. Reliability
5. Robust Design
6. Degree of Newness- modification, expansion, new product
7. Quality function deployment- voice of customer in development process
Phases in Product Design & Development
1. Feasibility analysis
2. Product specification
3. Process specification
4. Prototype development
5. Review design
6. Market test
7. Product introduction
8. Follow-up Evaluation.
Design for Production
1. Concurrent Engineering- simultaneous development – integration of
departments in designing and planning process
2. Computer-Aided Designing (CAD)
3. Production Requirement
4. Components Commonalities
Service Design
1. Overview of overall product and service design
i.
ii.
iii.
iv.
The physical resources needed
Accompanied goods
Explicit Services- Core/Essential services
Implicit services- extra features/ value addition
2. Difference between service design and product design
Phases in Service Design Process
Service Blueprinting: Major Steps in Service Blueprinting are as follows;
1. Establish boundaries for the service and decide the level of detail needed
2. Identify and determine the sequence of customer and service actions and
interactions. A Process flowchart
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 plan to respond to the service errors.
Characteristics of Well-designed Service System
1. Consistent with the organization’s mission
2. User-friendly
3. Easy to sustain
4. Cost Effective
5. Having value that is obvious to customer
6. Effective linkages between backend operations and frontend operations
7. Having a single, unifying theme such as convenience or speed
8. Having design features and checks to ensure reliability and high quality
Guidelines for Successful Service Design
1. Define the service package in detail
2. Focus on operations from the customer perspective
3. Recognize the designers’ familiarity with the system
4. Define quality for both tangible and intangible components
5. Recruitment, training and reward policies are consistent with the service
expectations
6. Establish procedures to handle challenges and risks
7. Establish system to monitor, maintain and improve service.