Product and
Service Design
McGraw-Hill/Irwin
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
 You should be able to:
1.
Explain the strategic importance of product and service design
2. Identify some key reasons for design or redesign
3. Recognize the key questions of product and service design
4. List some of the main sources of design ideas
5. Discuss the importance of legal, ethical, and sustainability
considerations in product and service design
6. Explain the purpose and goal of life cycle assessment
7. Explain the phrase “the 3 Rs”
8. Briefly describe the phases in product design and development
9. Name several key issues in manufacturing design
10. Recognize several key issues in service design
11. Name the phases in service design
12. List the characteristics of well-designed service systems
13. Assess some of the challenges of service design
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 The essence of an organization is the goods and services it
offers
 Every aspect of the organization is structured around
them
 Product and service design – or redesign – should be
closely tied to an organization’s strategy
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Stages of product/service design:
 Functional design (form, shape, size, materials,
etc.)
 Process design (processing technology and
tooling)
 Production design (production line & plant
layout)
 Product/service quality
 Production/delivery cost
 Customer satisfaction
1.
Is there a demand for it?
 Market size
 Demand profile
2.
Can we do it (competence)?
 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?
 Customer expectations
 Competitor quality
 Fit with current offering
4.
Does it make sense from an economic standpoint?
 Liability issues, ethical considerations, sustainability issues,
costs and profits
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 Developing New Products/Services
 Sources of Product Innovation
 Getting Them to Market Faster
 Designing and Developing New Services
 Improving Current Products/Services
 Designing for Ease of Production
 Designing for Quality
 Customers
 Managers
 Marketing
 Operations
 Engineering
 Research and Development (R&D)
 Basic research
 Applied research
1. Technical and economic feasibility studies
2. Prototype design
3. Performance testing of prototype
4. Market sensing/evaluation and economic evaluation
of the prototype
5. Design of production model
6. Market/performance/process testing and economic
evaluation of production model
7. Continuous modification of production model
1. Technical and Economic Feasibility Studies
 Determine the advisability of establishing a project for
developing the product
 If initial feasibility studies are favorable, engineers
prepare an initial prototype design
2. Prototype Design
 This design should exhibit the basic form, fit, and
function of the final product
 It will not necessarily be identical to the production
model
3. Performance Testing of Prototype
 Performance testing and redesign of the prototype
continues until this design-test-redesign process
produces a satisfactorily performing prototype
4. Market Sensing/Evaluation and Economic
Evaluation of the Prototype
 Accomplished by demonstrations to potential
customers, market test, or market surveys
 If the response to the prototype is favorable, economic
evaluation of the prototype is performed to estimate
production volume, costs, and profits
 If the economic evaluation is favorable, the project
enters the production design phase.
5. Design of Production Model
 The initial design of the production model will not be
the final design; the model will evolve
6. Market/Performance/Process Testing and
Economic Evaluation of Production Model
 The production model should exhibit:
 low cost
 reliable quality
 superior performance
 the ability to be produced in the desired quantities on the
intended equipment
7. Continuous Modification of Production Model
 Production designs are continuously modified to:
 Adapt to changing market conditions
 Adapt to changing production technology
 Allow for manufacturing improvements
 About 5% of all new-product ideas survive to
production, and only about 10% of these are
successful.
 It is best to cancel unpromising newproduct/service development projects early!
 Employees often become emotionally caught up
in these projects and are overly optimistic
 An impartial management review board is needed
for periodic reviews of the progress of these
projects.
 Speed creates competitive advantages
 Speed saves money
 Tools to improve speed:
 Autonomous design and development teams
 Computer-aided design/computer-aided
manufacturing (CAD/CAM)
 Simultaneous (concurrent) engineering
 Autonomous Design and Development Teams
 Teams are given decision-making responsibility and
more freedom to design and introduce new
products/services
 Time-to-market has been slashed dramatically
 Enormous sums of money have been saved
 Teams do not have to deal with the bureaucratic red tape
ordinarily required to obtain approvals
 Computer-Aided Design/Computer-Aided
Manufacturing (CAD/CAM)
 Engineers, using CAD/CAM, can generate many views of
parts, rotate images, magnify views, and check for
interference between parts
 Part designs can be stored in a data base for use on other
products
 When it is time for manufacturing, the product design is
retrieved, translated into a language that production
machinery understands, and then the production
system can be automatically set up.
 Simultaneous
(Concurrent)
Engineering
Product/
Service Ideas
Economic and Technical
Feasibility Studies
Product/Service Design
Continuous
Interaction
Production Process Design
Produce and Market
New Product/Service
 Focus is improving performance, quality, and cost
 Objective is maintaining or improving market
share of maturing products/services
 Little changes can be significant
 Small, steady (continuous) improvements can add
up to huge long-term improvements
 Value analysis is practiced, meaning design
features are examined in terms of their
cost/benefit (value).
 Ease of Production (Manufacturability)
 Specifications - Precise information about the
characteristics of the product
 Tolerances - Minimum & maximum limits on a dimension
that allows the item to function as designed
 Standardization - Reduce variety among a group of
products or parts
 Simplification - Reduce or eliminate the complexity of a
part or product
 Crucial element of product design is its impact on
quality
 Quality is determined by the customer’s
perception of the degree of excellence of the
product/service’s characteristics
 Chapter 7 covers the principles of designing
products/services for quality
Three general dimensions of service design are:
 Degree of Standardization of the Service
 Custom-fashioned for particular customers or basically
the same for all customers?
 Degree of Customer Contact in Delivering the
Service
 High level of contact (dress boutique) or low level (fast-
food restaurant)?
 Mix of Physical Goods and Intangible Services
 Mix dominated by physical goods (tailor’s shop) or by
intangible services (university)?
 Differences Between New Service and New
Product Development
 Unless services are dominated by physical goods, their
development usually does not require engineering,
testing, and prototype building.
 Because many service businesses involve intangible
services, market sensing tends to be more by surveys
rather than by market tests and demonstrations.
 Legal considerations
 Ethical considerations
 Human factors
 Cultural factors
 Global product and service design
 Environmental factors
 Others
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 Sustainability
 Using resources in ways that do not harm ecological systems that
support human existence
 Key aspects of designing for sustainability
 Cradle-to-grave assessment (Life-Cycle assessment)
 End-of-life programs
 The 3-Rs
 Reduction of costs and materials used
 Re-using parts of returned products
 Recycling
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 Value analysis
 Examination of the function of parts and materials in an effort to
reduce the cost and/or improve the performance of a product
 Common questions used in value analysis
 Is the item necessary; does it have value; could it be eliminated?
 Are there alternative sources for the item?
 Could another material, part, or service be used instead?
 Can two or more parts be combined?
 Can specifications be less stringent to save time or money?
 Do suppliers/providers have suggestions for improvements?
 Can packaging be improved or made less costly?
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 Remanufacturing
 Refurbishing used products by replacing worn-out or defective
components
 Can be performed by the original manufacturer or another company
 Reasons to remanufacture:
 Remanufactured products can be sold for about 50% of the cost of a
new product
 The process requires mostly unskilled and semi-skilled workers
 In the global market, European lawmakers are increasingly requiring
manufacturers to take back used products
 Design for disassembly (DFD)
 Designing a product to that used products can be easily taken apart
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 Recycling
 Recovering materials for future use
 Applies to manufactured parts
 Also applies to materials used during production
 Why recycle?
 Cost savings
 Environmental concerns
 Environmental regulations
 Companies doing business in the EU must show that a specified
proportion of their products are recyclable
 Design for recycling (DFR)
 Product design that takes into account the ability to
disassemble a used product to recover the recylcable parts
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