DESIGN OF GOODS

AND SERVICES
June 21, 2022
Learning Objectives:
● Strategic Importance
● Reasons for design or redesign
● Standardization.
● Legal, ethical & Environmental issues.
● Phases in product design & Development
● Sources of design ideas.
● Issues in manufacturing & services design.
● Phases in services design
● Challenges of service design.
Product or Service Activities
● Translate customer wants & needs into product/service
requirements/.
● Refine existing products and services.
● Develop new products & services.
● Formulate quality goals.
● Formulate cost targets.
● Construct and test prototypes.
● Document specifications.
Reasons for Product Design
● Economic
● Social and Demographic
● Political, liability, or legal
● competition
● Cost or availability
● Technological
Objective of Product & Service Design
● Main Focus
○ Customer satisfaction
○ Understand what the customer wants
● Secondary focus
○ Function of product/services
○ Cost/profit
○ Quality
○ Appearance
○ Ease of production/assemby
○ Ease of maintenance/service
Designing for Operations
- Taking into account the capabilities of the organization in designing
goods & services

- Failure to take this into account can:

lower productivity
lower quality
higher costs
Legal, Ethical, and Environmental Issues
-FDA, Permits and Licences
-Product Liability (a Manufacturer is liable for any injuries/damages
caused by a faculty product.)

- Uniform commercial codes

(Products carry an implication of merchantability & Fitness).

-Ethical
-Releasing products with defects

-Environmental
Other issues: Life Cycle
Phases in Product Design & Development
● Idea generation
● Feasibility Analysis
● Product Specification
● Process Specification
● Prototype development
● Design review
● Market test
● Product introduction
● Follow-up evaluation
Quality Function Deployment (QFD)
● Voice of Customer
● House of Quality

QFD: An approach that integrates the “voice of the customer” into the
product and service development process.
The House of Quality
Service Design
● Service
○ Something that is done to or for a customer.
● Service Delivery System
○ The facilities, processes, and skills.
● Product bundle
○ The combination of goods and services.
● Service Package
○ The physical resources needed, the goods consumed by the
customer, explicit/implicit services
Phases in Service Design
● Conceptualize
● Identify service package components
● Determine performance specifications
● Translate performance specifications into design
specifications
● Translate design specifications into delivery specifications
Challenges in Service Design
● Variable requirements
● Difficult to describe
● High customer contact
● Service - customer encounter
Guidelines for Successful Service Design
1. Define the service package.
2. Focus on customer’s perspective.
3. Consider image of the service package.
4. Recognize that designer’s perspective is different from the customer’s
perspective.
5. Make sure that managers are involve.
6. Define quality for tangible and intangibles.
7. Make sure that recruitment, training and rewards are consistent with
service expectations.
8. Establish procedures to handle expectations.
9. Establish systems to monitor services.
Thank you for listening!