Mod-2 Product and Service Design
Mod-2 Product and Service Design
Products and Services, Legal, Ethical, and Environmental Issues, Designing for
Manufacturing, and services.
INTRODUCTION
The strategic importance of product and service design
The essence of a business organization is the products and services it offers, and every aspect
of the organization and its supply chain are structured around those products and services.
"Organizations have a strategic interest in product and service design because organizations
that have well-designed products or services are more likely to realize their goals than those
with poorly designed products or services.
"Product or service design should be closely tied to an organization's strategy
Factors influence the strategy of design
• Major factors in design strategy
• Cost
• Quality
• Time-to-market
• Customer satisfaction
• Competitive advantage
What does product and service design do?
1. Translate customer wants and needs into product and service requirements.
(marketing. operations)
2. Refine existing products and services.(marketing)
3. Develop new products and services. (marketing. operations)
4. Formulate quality goals. (marketing. operations)
5. Formulate cost targets. (accounting. finance. operations)
6. Construct and test prototypes. (operations. marketing. engineering)
7. Document specifications.
8. Translate product and service specifications into process specifications. (engineering
specifications)
Reasons for Product and Service Design or Redesign
The main forces that initiate design or redesign are market opportunities and threats
The factors that give rise to market opportunities and threats can be one or more changes:
Economic
• Expansion in the economy can increase consumer spending and demand for products.
Social and demographic
Increasing population can lead to higher demand for goods and services.
Political, liability, or legal
• New regulations can create markets for compliance-related products and services.
Competitive
• Competitors leaving the market can reduce competition
Technological
• New technologies can create entirely new markets or revolutionize existing ones.
Benefits of DFM
Feasibility Analysis:
Process Specifications:
Prototype Development:
Design Review:
Market Test:
Product Introduction:
Follow-up Evaluation:
Service Design
• Service is an act
• Service delivery system
• Facilities
• Processes
• Skills
• Many services are bundled with products
Differences between Product and Service Design
Factor Product Design Service Design
Tangible vs. Intangible Tangible Intangible
Services created and delivered at Services created and delivered at
Creation and Delivery
the different time the same time
Timing
Inventory
Can be inventoried Cannot be inventoried
Management
Production less visible to Delivery process highly visible
Customer Visibility
customers to customers
Barrier to Entry High Low
Location Importance Less important Crucial
Service Blueprinting
• Service Blueprinting is a method used to document and analyze the steps and
interactions involved in delivering a service. It helps to visualize the service process,
identify potential issues, and improve service efficiency and customer satisfaction.