PRODUCT AND SERVICE DESIGN

Dr. Jonathan Mondero | DLSU-D | October 17, 2017

LEARNING OUTCOME

• Explain the principles of Product and Service Design

Key Trends Facing Manufacturers
Not every idea comes in a
lightning-strike flash of
understanding.....sometimes
you have to dig to find the
good ones.
DISCUSSION

Why product and service design is

strategically important?
STRATEGIC PRODUCT AND SERVICE DESIGN

• 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
WHAT DOES PRODUCT & SERVICE DESIGN DO?

• Translate customer wants and needs into product and service

requirements
• Refine existing products and services
• Develop new products and services
• Formulate quality goals
• Formulate cost targets
• Construct and test prototypes
• Document specifications
• Translate product and service specifications into process specifications
KEY QUESTIONS
1. Is there a demand for it?
 Market size
 Demand profile
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?
 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
REASONS FOR DESIGN OR RE-DESIGN
➢The driving forces for product and service design (or redesign) are market
Opportunities or Threats:
‒ Economic
o Low demand, excessive warranty claims, need to reduce costs
‒ Social and Demographic
o Aging populations, population shifts
‒ Political, Liability, or Legal
o Government changes, safety issues, new regulations
‒ Competitive
o New or changed products and services
‒ Cost or Availability
o Raw materials, components, labor, water, energy
‒ Technological
o Product components, processes
IDEA GENERATION – SUPPLY-CHAIN BASED
• Ideas can come from anywhere in the supply chain:
• Customers
• Surveys, focus groups, complaints, suggestions
• Suppliers
• Distributors
• Employees
Walmart's Facial Recognition Tech Would Overstep Boundaries
A Walmart patent application filed in 2012 describes a system that would
use facial recognition technology at the checkout to help store personnel
determine if customers are unhappy and, if so, make contact to address
any shopping-related problems.
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
DISCUSSION

• Discuss the following questions

in groups:
• Is reverse engineering
ethical?
• Can reverse engineering be
used for service?
DESIGN CONSIDERATIONS
• Legal
• Ethics
• Human Factors
• Cultural Factors
• Environmental Factors: Sustainability
OTHER DESIGN CONSIDERATIONS
• Strategies for product or service life stages
• Standardization
• Product or service reliability
• Product or service robustness
• Degree of newness
OTHER DESIGN CONSIDERATIONS
Product/Service Life-Stages

Discontinue?
high cost, low Replace?
demand, possibly Find new
quality issues, getting uses
first into the market

lower cost, low cost, high productivity,

increased standardization, few design
demand, changes are needed ,
higher higher reliability
reliability
STANDARDIZATION
• Standardization
• Extent to which there is an absence of variety in a product, service, or process
• Products are made in large quantities of identical items
• Every customer or item processed receives essentially the same service
ADVANTAGES & DISADVANTAGES OF
STANDARDIZATION
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 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
DESIGNING FOR MASS CUSTOMIZATION
• Mass customization
• A strategy of producing basically standardized goods or services, but
incorporating some degree of customization in the final product or service
• Facilitating Techniques
• Delayed differentiation
• Modular design
DELAYED DIFFERENTIATION
• Delayed Differentiation
• The process of producing, but not quite completing, a product or service until
customer preferences are known
• It is a postponement tactic
• Produce a piece of furniture, but do not stain it; the customer chooses the stain
MODULAR DESIGN
• Modular Design
• A form of standardization in which component parts are grouped into modules that are easily
replaced or interchanged
• Advantages
• easier diagnosis and remedy of failures
• easier repair and replacement
• simplification of manufacturing and assembly
• training costs are relatively low
• Disadvantages
• Limited number of possible product configurations
• Limited ability to repair a faulty module; the entire module must often be scrapped
ROBUST DESIGN
• Robust design
• A design that results in products or services that can function over a broad
range of conditions
• The more robust a product or service, the less likely it will fail due to a change in the
environment in which it is used or in which it is performed
• Pertains to product as well as process design
KANO MODEL
• Basic quality
• Refers to customer requirements that have only limited effect on customer
satisfaction if present, but lead to dissatisfaction if absent
• Performance quality
• Refers to customer requirements that generate satisfaction or dissatisfaction in
proportion to their level of functionality and appeal
• Excitement quality
• Refers to a feature or attribute that was unexpected by the customer and
causes excitement
KANO MODEL
KANO MODEL – EXAMPLE

KEYLESS ENTRY,
LED LIGHTS, BOSE GAS MILEAGE, WARRANTY,
SOUND SYSTEMS WATER WADING

BRAKES, WINDSHIELD,
ENGINE COOLING
SYSTEM
PHASES IN PRODUCTS DESIGN & DEVELOPMENT
1. Feasibility analysis
– Demand, development and production cost, potential profit, technical analysis, capacity req., skills needed, fit
with mission.
2. Product specifications
– What’s needed to meet customer wants
3. Process specifications
– Weigh alternative processes in terms of cost, resources, profit, quality
4. Prototype development
– Few units are made to find problems with the product or process
5. Design review
– Changes are made or project is abandoned
6. Market test
– Determine customer acceptance. If unsuccessful return to Design-review.
7. Product introduction
– promotion
8. Follow-up evaluation
– Based on feedback changes may be made.
DESIGNING (PRODUCTS) FOR PRODUCTION

1. Concurrent engineering
2. Computer-Assisted Design (CAD)
3. Production requirements
4. Component commonality

TECHNOLOGY TODAY
1. 3D Printer
2. Nanotechnology
3. Artificial Intelligence (AI)
1. CONCURRENT ENGINEERING
• Concurrent engineering
• Bringing design and manufacturing engineers together early in the design
phase
• manufacturing personnel, marketing and purchasing personnel in loosely integrated cross-
functional teams
• Views of suppliers and customers may also be sought
• The purpose:
• achieve product designs that reflect customer wants as well as
manufacturing capabilities
2. COMPUTER AIDED DESIGN (CAD)
• Increases designers’ productivity.
• Directly provides information to manufacturing (dimensions, material -
BOM).
• Perform analysis: engineering ,cost.
• Shortens time-to-market

• e.g., AutoCad, SolidWorks, Visio

3. PRODUCTION REQUIREMENTS
• Designers must take into account production capabilities
– Equipment
– Skills
– Types of materials
– Schedules
– Technologies
– Special abilities
• When opportunities and capabilities do not match management must
consider expanding or changing capabilities.
• Related concepts:
a. Design For Manufacturing (DFM)
b. Design For Assembly (DFA)
c. Manufacturability
DFM AND DFA
a. Design for Manufacturing (DFM)
– The designing of products that are compatible with an organization’s abilities
b. Manufacturability
– Ease of fabrication and/or assembly
– It has important implications for
• Cost
• Productivity
• Quality
c. Design for Assembly (DFA)
– Design that focuses on reducing the number of parts in a product and on
assembly methods and sequence.
4. COMPONENT COMMONALITY
• When products have a high degree of similarity in features and
components, a part can be used in multiple products

• Benefits:
• Savings in design time
• Standard training for assembly and installation
• Opportunities to buy in bulk from suppliers
• Commonality of parts for repair
• Fewer inventory items must be handled
SERVICE DESIGN DEFINITIONS
• Service
‒ Something that is done to, or for, a customer
• Service delivery system
‒ The facilities, processes, and skills needed to provide a service
• Product bundle
‒ The combination of goods and services provided to a customer
• Service package
‒ The physical resources needed to perform the service, accompanying goods,
and the explicit (core features) and implicit (ancillary features) services included
SERVICE DESIGN

• Begins with a choice of service strategy, which determines the

nature and focus of the service, and the target market
‒Key issues in service design
o Degree of variation in service requirements
o Degree of customer contact and involvement
DIFFERENCES BETWEEN SERVICE
AND PRODUCT DESIGN
1. Products are generally tangible, services intangible
2. Services are created and delivered at the same time
3. Services cannot be inventoried
4. Services are highly visible to consumers
5. Some services have low barriers to entry and exit
6. Location is often important to service design, with convenience as a major
factor
7. Service systems range from those with little or no customer contact to
those that have a very high degree of customer contact
8. Demand variability alternately creates waiting lines or idle service
resources
SERVICE BLUEPRINT
• a method used in service design to describe and analyze a proposed
service
RECAP
REFERENCES:
• Books:
• Stevenson, W. and Chuong, S. (2014). Operations management (2nd ed.).
McGraw-Hill Education
• Heizer, J. and Render, B. (2014). Operations management : sustainability and
supply chain management (8th ed.). Singapore : Pearson Education South
Asia.

• Internet:
• http://mashable.com/2017/09/22/iphone-8-teardown/#4KsPeQAZfkq4
• http://teaching.ust.hk/~ismt162/Lectures/01_introduction.pdf
• www.wiki.answers.com
• www.ask.com
• www.google.com

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QUESTIONS? COMMENTS? FEEDBACK?

[email protected]
+639178004259
Jo Mon