Operations Management
MANAGEMENT AND OPERATIONS
Product & Service Design
Agenda for Today
1.
2.
Product & Service Design
Practice: Creative Product & Service Design
Dr. Nguyen Thi Duc Nguyen
1
Operations Management
Product/Service Design & Process Design
Designing
Product /
Service
so that Products/
services can be
created effectively
Designing
the Process
Product / Service so that they can create
Design impact on all products/services
Process Design
effectively
vice versa
Creativity, Innovation and Design
• Creativity – Use of Imagination or Original Ideas
• Innovation – Doing something new
• Design – Defining the looks, arrangement and
working of something
• Products and Services – The nature and
characteristics of the organisation’s offerings
Dr. Nguyen Thi Duc Nguyen
2
Operations Management
The Stages of Product / Service Design:
1. Concept Generation
2. Concept Screening
3. Preliminary Design
4. Evaluation and Improvement
5. Prototyping and Final Design
The Stages of Product / Service Design:
1. Concept Generation
Ideas from Customers – Marketing
- Identifying new product or services opportunities
- Use market research tools for gathering data from customers to test out ideas
Listening to Customers
- Ideas from customers on a day-to-day basis, or from complaints
Ideas from Competitor Activity
Ideas from Staff
- Salesperson or customer service who meet customers and know what they like and
do not like.
Ideas from Research and Development (R&D)
- Time and Investment
Dr. Nguyen Thi Duc Nguyen
3
Operations Management
The Stages of Product / Service Design:
2. Concept Screening
Evaluate concepts by assessing the worth or value of design options
Design Criteria
1. Feasibility of the design option – Can we do it?
- Do we have the skills, quality of resources?
- Do we have the organisational capacity?
- Do we have the financial resources to cope with this option?
2. Acceptability of the design option – Do we want to do it?
- Does the option satisfy the performance criteria which the design is trying to
achieve?
- Will our customers want it?
- Does the option give a satisfactory financial return?
3. Vulnerability of each design option – do we want to take the risk?
- Do we understand the full consequences of adopting the option?
- Being pessimistic, what would go wrong if we adopt the option?
- What would be the consequences of everything going wrong?
The Stages of Product / Service Design:
3. Preliminary Design
Specifying the components of the Design
Reducing Design Complexity – Keep it Simple!
- Standardisation: Product, Service, Processes; variety reduction
- Commonality: Using common elements across the range of products/services
e.g. iPhone, Cars, AirBus
- Modularisation: Designing standardised ‘Sub-components’ of a product or service
which can be put together in different ways.
e.g. Education, Computers, Holiday packages
Dr. Nguyen Thi Duc Nguyen
4
Operations Management
The Stages of Product / Service Design:
4. Evaluation and Improvement
Quality Function Deployment (QFD)
A formal articulation of how the company sees the
relationship between the requirements of the Customer
(the whats) and the Design characteristics of the New
Product (the hows)
Integrates the ‘House of Quality’ and the ‘Voice of the
Customer’
QFD matrix for a Promotional USB data Storage Stick
Dr. Nguyen Thi Duc Nguyen
5
Operations Management
The Stages of Product / Service Design:
5. Prototyping and Final Design
Too Risky to launch a product or service before testing it out!
Computer-Aided-Design (CAD)
Alpha and Beta Testing
Alpha Testing: Internal process where the developers or manufacturers examine the
product for errors (not opened to market or potential customers)
Beta Testing: External process ‘pilot test’ what takes place in the ‘real world’ before
commercial production.
i.e. Field testing, pre-release testing, customer validation,
customer/user acceptance testing
Group Exercise:
Product Design
Dr. Nguyen Thi Duc Nguyen
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