HERRERA, MARCYLINA ISABELLE A.

BA 11 – FUNCTIONAL AREAS IN BUSINESS

BSTM – 2 OPERATIONS MTWTH (1:00-2:30OPM)
Self-check activity: Product and Service Design

1. What are some of the factors that cause organizations to redesign their product or service?
There are various reasons as to why organizations redesign their products or services. The
most common reasons would be:
 Customer dissatisfaction
 Increased competition in the market
 Changes in government regulations
 Technological innovations which might be in the form of new raw materials or new
methods and techniques
 Change in customer expectations
 Changes in the cost and readiness of important resources such as materials, labor
required and different energy
 A product reaching a maturity stage.

2. Explain the term design to manufacturing and briefly explain why it is important?
In order to produce a specific product, an organization's manufacturing capabilities
must be taken into account by product designers. To ensure that the design will be
compatible with the organization's capabilities, operations personnel should be included early
in the design process. People in production and operations can offer the necessary input to
make things clear before production issues arise. To ensure that customer requirements are
properly taken into account, marketing professionals should also be involved.

3. What is meant by the term life cycle? Why should this be a consideration in product and
service design?
The phrase "life cycle" describes the progression of demand stages that goods or
services experience. Introduction, growth, maturity, and decline make up the usual order. The
success of efforts to enhance design may vary depending on where in the life cycle they are
made: early stages have a higher chance of success than later ones. Additionally, early in the

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HERRERA, MARCYLINA ISABELLE A. BA 11 – FUNCTIONAL AREAS IN BUSINESS
BSTM – 2 OPERATIONS MTWTH (1:00-2:30OPM)
life cycle, as familiarity with the product or service grows, many design changes can be
anticipated.

4. What is mass customization?

Producing standardized goods or services while incorporating some degree of
customization into the finished good or service is known as mass customization. Several
strategies can be used to achieve mass customization. Delay in differentiation and modular
design are these strategies. Delayed differentiation refers to delaying the completion of the
service or the product until specific details regarding customer preferences and requirements
are obtained. Customized specifications are added to nearly finished units once the company
is aware of specific customer preferences. Due to standardization, this strategy lowers costs
and increases efficiency while reducing lead times for delivering products or services.
Modular design can also be used to achieve mass customization. In a form of product
standardization known as modular design, components are divided into manageable modules.

5. Name two factors that could make service design much different from product design.
The ways that service design and product design are different
 Services are typically intangible while products are typically tangible. As a
result, compared to product design, service design frequently places a greater
emphasis on intangible elements (such as ambience and mental well-being).

 The production and receipt of services frequently occur simultaneously (e.g. a

haircut, a car wash). As a result, there is less room for error detection and
correction before the customer notices them. As a result, customer relations,
process design, and training are particularly crucial.

 Services can't be put on an inventory. Because of these limitations on

flexibility, capacity design is crucial.

 Services must be designed with consumer visibility in mind because it adds a

dimension to process design that is typically absent.

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HERRERA, MARCYLINA ISABELLE A. BA 11 – FUNCTIONAL AREAS IN BUSINESS
BSTM – 2 OPERATIONS MTWTH (1:00-2:30OPM)

 There are some services with minimal entry and exit barriers. This increases
the pressure on service design to be creative and economical.

 Convenience is a key consideration in location-based service design. As a

result, location selection and service design are frequently interrelated.

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