Service design

- Service design is a human-centered approach to designing and delivering

services. It focuses on understanding and improving the entire experience
a customer has with a service, from initial contact to post-service support.
- It is the activity of planning and organizing people, infrastructure,
communication and material components of service in order to improve
its quality.
- Designing of service is not easy like product because of its intangibility.
- It begins with identifying customer’s needs and developing service
concept that fulfills the needs.
- The goal of service design is to create a service that not only solves
problems for customers but also aligns with the organization's goals and
is easy to deliver.
- Service design considers everything that makes a service work, including
the people providing it, the tools and technology used, and the
processes behind the scenes.

Service design process

The designing of service involves the following stages:
1. Identification of customer requirement:
The design of service begin from identification of customer’s needs.
Operations managers are to determine the different needs of customers in
target market towards companies’ service.
2. Development of service concept
In this phase, operations manager develop service concept based on
customer needs. A service concept is a description of service contents,
features and a service usually accompanied by set of specification, an
analysis of competitive services an economic justification of service.
3. Detailed design
 This phase includes the development of complete specification of service,
resources and unique features. A service process is planned and different
equipment and tools required providing service is determined.
4. Process technology
The process technology refers to the mechanism of converting different
resources into final service delivered to customers. In this step, operations
managers should decide appropriate process technology by considering the
customer contract and labor intensiveness.
5. Re-design of process technology
The customer’s needs and expectations are changed according to the
change in the factors of external environment. So, operations manager
should design its production technology to adopt the changes of customer’s
wants.

Difference between service and product design

Basis of difference Product design service design
Focus Product design focuses more Service design focuses more on
on creation of tangible development of services (e.g.
products (e.g. car, furniture hospitality, healthcare etc.)
etc.)
Goal The goal of product design is The goal of service design is to create a
to deliver a functional and smooth, continuous, efficient, and
appealing physical item. satisfying customer experience.
Design Normally products are In many cases services are designed
designed on the basis of and delivered at the same time on the
general survey that is done basis of customer choice e.g. hair- cut.
in the past.
Patent The patent right can be It is very difficult to take patent right in
taken in case of product case of service design.
design.
Repeatable The products are The services are customized and the
standardize and product service design is not repeatable.
 design is repeatable.
Customer contact There is no or very low There is high customer contact in
customer contact in product service design.
design.
Key elements Form, function, usability, People, processes, tools, environments,
and aesthetics. and customer touch points.
Example Designing a smartphone, Designing a food delivery service,
chair, or clothing. online banking system, or hotel check-
in process.

Emerging issues in product and service design

Product and service design involves various challenges or issues or considerations.
Some of the common issues for product and service design are as follows:
1. Value Analysis
- Value Analysis (VA) is a systematic and organized approach used to
improve the value of a product, process, or service by examining its
functions and finding ways to achieve those functions at the lowest
possible cost without compromising quality and performance.
- Value analysis helps in identifying unnecessary costs and finding ways to
eliminate or reduce them without compromising the quality or
functionality of the product
- Effectively implementing value analysis requires a deep understanding
of customer needs, cost structures, and emerging technologies, which
can be complex and time-consuming to acquire.

2. Concurrent engineering
- Concurrent engineering is a systematic approach to product
development where different functions such as design, manufacturing,
 marketing and other disciplines are integrated and executed
simultaneously rather than sequentially.
- By bringing together teams from design, manufacturing, marketing, and
other disciplines early on, companies can identify and address potential
issues throughout the development process simultaneously.
- Concurrent engineering is an emerging issue in product and service
design because it requires a high level of coordination, communication,
and collaboration among diverse cross-functional teams.
- Additionally, implementing concurrent engineering demands significant
investment in technology, training, and restructuring traditional
workflows, which can be complex for organizations accustomed to
sequential processes.
3. Quality Function Deployment (QFD)
- Quality Function Deployment (QFD) is a structured approach used in
product development and process design to systematically incorporate
customer requirements into the design, development, and
manufacturing processes of a product or service.
- It is a method that aims to ensure that the characteristics of a product or
service meet the needs and expectations of customers.
- Quality Function Deployment (QFD) is an emerging issue in product and
service design because it requires translating customer needs into
detailed technical specifications, which can be complex and resource-
intensive.
- Implementing QFD involves careful data collection, advanced analytical
tools, and significant training, which can be difficult for organizations
with limited resources or expertise.
4. Cultural diversity
- Cultural diversity means difference in religion, food habits, way to
celebrate festival, clothing style etc. of people.
- While conceptualizing the product design, the company must
concentrate on cultural differences of different community, society
and country where the goods and services are offered to sale.
- The recent business trends of globalization and increasing ethnic and
gender diversity are turning manager’s attention to the management
of cultural difference.
5. Product life cycle
- The product life cycle is a model that describes the stages a product
goes through from its introduction to the market until its eventual
decline and withdrawal.
- Understanding the product life cycle helps businesses strategize
marketing, manage resources, and make informed decisions about
product development and discontinuation.
- The product life cycle is an emerging issue in product and service design
because rapid technological advancements and shifting consumer
preferences are shortening the lifespan of products and services.
- Products require unique strategies related to operations, marketing,
financing, manufacturing and human resources depending on the life
cycle stages.
- The main problem for operations manager is to determine the pattern
process of each stage of product life and resources need for purchasing
the products.
6. Computer Aided Design (CAD)
- Computer-Aided design (CAD) is the use of computer systems to aid in
the creation, modification, analysis or optimization of a design.
- CAD facilitates the visualization of a product's physical attributes before
it is manufactured, allowing for better planning, testing, and
modification.
- The designers can modify an existing or create new design on a
computer monitor screen by means of a keyboard.
- Computer-Aided Design (CAD) is an emerging issue in product and
service design due to its increasing complexity and the need for
specialized skills to effectively utilize advanced tools.
- While CAD enhances precision, efficiency, and innovation in design, it
demands significant investment in software, hardware, and training.

7. Computer Aided Manufacturing (CAM)

- Computer-Aided Manufacturing (CAM) is the use of software and
computer-controlled machinery to automate and enhance the
manufacturing process.
- CAM software converts designs from CAD systems into machine
instructions, enabling the precise control of tools and machinery in
the production of physical parts.
- Computer-Aided Manufacturing (CAM) is an emerging issue in
product and service design due to the need for perfect integration
between design and production processes.
- CAM systems require precise and detailed design inputs to create
accurate manufacturing instructions, which can be complex and
time-intensive.