Operations Management

OSP9304

Product and Service Design

CEMBA 2024
Dept. of Organizational Studies; 2024
The Open University of Sri Lanka

S A D Senanayake
Product and Service Design

Adapted from Presentations of Prof. Chandana Perera

Dept. of Management of Technology University of Moratuwa.
 Product and Service Design

Objectives
• Understand the basic steps of product and service design
• Describe different methods of product / service concept generation
• Identify the objectives of product or service design / for product design
• Use the methods available to improve the design process

Adapted from Presentations of Prof. Chandana Perera

Dept. of Management of Technology University of Moratuwa.
 Product Design
Product design is the combination of
manufacturing capabilities with product and
business knowledge to convert ideas into
physical and usable objects.
• Specifies materials
• Determines dimensions & tolerances
• Defines appearance
• Sets performance standards
 Service Design
Service design is the coordination and
combination of people, communication,
and material components to create quality
service.
Specifies what the customer is to experience
–physical items
–sensual benefits
–psychological benefits
 An Effective Design Process
• Matches product/service characteristics with
customer needs
• Meets customer requirements in simplest, most
cost-effective manner
• Reduces time to market
• Minimizes revisions
Stages In The Design Process
• Idea Generation
–Product Concept
• Feasibility Study
–Performance Specifications
• Preliminary Design
–Prototype
• Final Design
–Final Design Specifications
• Process Planning
–Manufacturing Specifications
 End of 2nd day school

idea generation covered

 The Design Process
Idea Feasibility Product Yes Preliminary
generation study feasible? design

No

Final Process
Prototype
design planning

Design & Manufacturing

Specifications

Manufacturing
 Idea Generation
• Suppliers, distributors, salespersons
• Trade journals and other published material
• Warranty claims, customer complaints, failures
• Customer surveys, focus groups, interviews
• Field testing, trial users
• Research and development
 More Idea Generators
• Perceptual Maps
–visual comparison of customer perceptions
• Benchmarking
–comparing product/service against best-in-class
• Reverse engineering
–dismantling competitor’s product to improve your
own product
 Perceptual Map Of Breakfast
Cereals
Good taste
•Cocoa Puffs

Low nutrition High nutrition

•Cheerios
•Rice
Krispies •Wheaties
•Shredded
Wheat
Bad taste
 Feasibility Study
• Market Analysis

• Economic Analysis

• Technical Analysis

• Strategic Analysis
 Preliminary Design
• Create form & functional design
• Build prototype
• Test prototype
• Revise prototype
• Retest
 Form Design
(How The Product Looks)
 Functional Design
(How the product performs)
• Reliability
–probability product performs intended
function for specified length of time

• Maintainability
–ease and/or cost or maintaining/repairing
product
 Final Design & Process Planning
• Produce detailed drawings &
specifications
• Create workable instructions for
manufacture
• Select tooling & equipment
• Prepare job descriptions
• Determine operation & assembly order
• Program automated machines
 Design Teams
• Marketing, manufacturing, engineering
• Suppliers, dealers, customers
• Lawyers, accountants, insurance companies
Breaking Down Barriers
 Concurrent Design

Customers Design

Marketing Engineering

Suppliers Production
 Concurrent Design
• Also, simultaneous or concurrent engineering
• Simultaneous decision making by design
teams
• Integrates product design & process planning
• Details of design more decentralized
• Encourages price-minus not cost-plus pricing
• Needs careful scheduling - tasks done in
parallel
 Design For Manufacture (DFM)
• Design a product for easy & economical production
• Consider manufacturability early in the design
phase
• Identify easy-to-manufacture product-design
characteristics
• Use easy to fabricate & assemble components
• Integrate product design with process planning
 DFM Guidelines
1. Minimize the number of parts
2. Develop a modular design
3. Design parts for multi-use
4. Avoid separate fasteners
5. Eliminate adjustments
6. Design for top-down assembly
7. Design for minimum handling
8. Avoid tools
9. Minimize subassemblies
10. Use standard parts when possible
11. Simplify operations
12. Design for efficient and adequate testing
13. Use repeatable & understood processes
14. Analyze failures
15. Rigorously assess value
 Design For Assembly (DFA)
• Procedure for reducing number of parts

• Evaluate methods for assembly

• Determine assembly sequence

 More Design Improvements
• Standardization
–uses commonly available parts
–reduces costs & inventory
• Modular design
–combines standardized building blocks/modules
into unique products
 Design For Environment
• Design from recycled material
• Use materials which can be recycled
• Design for ease of repair
• Minimize packaging
• Minimize material & energy used during
manufacture, consumption & disposal
 Value Analysis (Engineering)
• Ratio of value / cost
• Assessment of value :
–1. Can we do without it?
–2. Does it do more than is required?
–3. Does it cost more than it is worth?
–4. Can something else do a better job
–5. Can it be made by less costly method, tools, material?
–6. Can it be made cheaper, better or faster by someone
else?
 Quality Function Deployment
(QFD)
• Translates the “voice of the customer” into
technical design requirements
• Displays requirements in matrix diagrams
• First matrix called “house of quality”
• Series of connected houses
House Of Quality 5. Tradeoff
matrix

Importance 3. Product
characteristics

1. Customer 4. Relationship 2. Competitive

requirements matrix assessment

6. Technical assessment and

target values
 Correlation:

House of Quality
Strong positive
Positive
X Negative
* Strong negative
Engineering

Ventilation system
Angle of basket

ergonomic design
Shoulder straps/
Characteristics Competitive evaluation

strong basket
Bottom (Zip)
Light weight
X = Us

opening
A = Comp. A
B = Comp. B
Customer (5 is best)
Requirements 1 2 3 4 5

Maintains freshness 7 B A X

Ease of unloading 6 B A X

Durable 6 X B A

A B X
Ease of maneuvering 5

Easy to carry/comfort 3 A B X

Absolute importance 32 45 54 27 54 90 Relationships:

Relative importance 4 3 2 5 2 1 Strong = 9
Medium = 3

Strength by
Target values
Maintain

Maintain
Maintain

Increase Small = 1
opening

current
weight

Retain
Retain
design

design

50%

level
5
x x
x A
Technical evaluation 4 x x
3 B B
(5 is best) 2 B
A
A B x 7
1 B
A
Series Of QFD Houses
 Benefits Of QFD
• Promotes better understanding of customer demands
• Promotes better understanding of design interactions
• Involves manufacturing in the design process
• Breaks down barriers between functions and
departments
 Technology In Design
• CAD - Computer Aided Design
–assists in creating and modifying designs
• CAE - Computer Aided Engineering
–tests & analyzes designs on computer screen
• CAD/CAM - Design & Manufacturing
–automatically converts CAD data into processing
instructions for computer controlled equipment
 Characteristics Of Services
1. Intangible
2. Variable output
3. High customer contact
4. Perishable
5. Service inseparable from delivery
6. Decentralized
7. Consumed more often
8. Easily emulated
 A Well-designed
Service System Is
• Consistent with firm’s strategic focus
• User friendly
• Robust
• Easy to sustain
• Effectively linked between front & back office
• Cost effective
• Visible to customer
 Some Service Generalizations
1. Everyone is an expert on services.

2. Services are idiosyncratic (distinctive to uer

+ service provider).

3. Most services are a mix of tangible and

intangible attributes (service package).
 Service Generalizations
4. High-contact services are experienced,
whereas goods are consumed.
5. Effective management requires
understanding of marketing, personnel,
operations.
6. Services are cycles of face-to-face, phone,
electromechanical, and/or mail interactions.
 Service Businesses
• Facilities-based services
– E.g. nursing home

• Field-based services - dispatching workers or

contractors to a location outside company
premises
– E.g. home visits for patient care
 Internal Services

Internal Supplier
Internal
Customer
External
Customer

Internal Supplier
 The Service Triangle
The Service
Strategy

The
Customer

The The
Systems People
Service Strategy: Focus and Advantage
Performance Priorities
• Treatment of the customer - Quality

• Speed and convenience of service delivery

• Price/Cost

• Variety/Flexibility

• Unique Service offerings

 Service-System Design Matrix
Degree of customer/server contact
Buffered Permeable Reactive
High core (none) system (some) system (much) Low
Face-to-face
total
customization
Face-to-face
Sales loose specs Production
Opportunity Face-to-face Efficiency
tight specs
Phone
Contact
On-site
technology
Mail contact

Low High
 Three Contrasting Service
Designs
• The production line approach

• The self-service approach

• The personal attention approach

Thank you