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Lecture 4. Product and Service Design
Lecture 4. Product and Service Design
Lecture 4. Product and Service Design
DEFINE IDEATE
PRODUCT AND
SERVICE DESIGN
Jonathan Desenganio
“Not every idea
comes in a lightning-
strike flash of
understanding….
Sometimes you have
to dig to find the
good ones”
DISCUSSION
Finance
Marketing Product and service design
(or redesign) should be
closely tied to an
organization’s strategy
Translate customer Refine existing Develop new products
wants and needs into products and services and services
product and service Formulate quality goals
requirements
Opportunities
Aging population REASONS FOR Raw materials
Social and Cost or Components
DESIGN AND Labor
Demographic Availability
REDESIGN Water
Population shift Energy
Threats
Political, Liability
Technological Product Components
Government changes or Legal Processes
Safety issues
New Regulations
IDEA GENERATION – SUPPLY CHAIN BASED
Supplier Employees Distributor Customer
Is reverse engineering
ethical?
Can reverse engineering
be used for services?
CULTURAL
ETHICS FACTOR
ENVIRONMENTAL
FACTOR
LEGAL
DESIGN CONSIDERATION
OTHER DESIGN CONSIDERATION
ROBUSTNESS NEWNESS
DEMAND PRODUCT LIFE CYCLE
TIME
Example
Car chassis with custom paint
DELAYED DIFFERENTIATION
The process of producing, but not quite completing, a product or
service until customer preferences are known
It is a postponement tactic
• Produce a piece of furniture, but do not stain it; the customer
chooses the stain
MODULAR DESIGN
A form of standardization in which component parts are grouped
into modules that are easily replaced or interchanged
Advantages
• easier diagnosis and remedy of failures
• easier repair and replacement
• simplification of manufacturing and assembly
• training costs are relatively low
Disadvantages
• Limited number of possible
product configurations
• Limited ability to repair a faulty
module; the entire module must
often be scrapped
ROBUST DESIGN
A design that results in products or services that can
function over a broad range of conditions
• The more robust a product or service, the less
likely it will fail due to a change in the environment
in which it is used or in which it is performed
Pertains to product as well as process design
Refers to customer
KANO MODEL Satisfied
requirements that generate
satisfaction or
Refers to a feature or attribute that dissatisfaction in
was unexpected by the customer proportion to their level of
and causes excitement functionality and appeal
Excitement
Quality Performance
Low Quality High
Functionality Functionality
and appeal and appeal
TIME
Basic Refers to customer
Quality requirements that have
only limited effect on
customer satisfaction if
present, but lead to
dissatisfaction if absent
Dissatisfied
Gas, Mileage,
KANO MODEL Satisfied Warranty, Water
Keyless Entry, LED Lights, Bose Wading
Sound System
Excitement
Quality Performance
Low Quality High
Functionality Functionality
and appeal and appeal
TIME
Basic
Quality
Brakes, Windshield,
Engine cooling
Dissatisfied system
PHASES IN PRODUCTS DESIGN & DEVELOPMENT
Feasibility analysis Process specifications Design review Product introduction
Demand, development and Weigh alternative Changes are made or promotion
production cost, potential profit, processes in terms of cost, project is abandoned
technical analysis, capacity req., resources, profit, quality
skills needed, fit with mission.
1 2 3 4 5 6 7 8
TECHNOLOGY TODAY
1. 3D Printer
2. Nanotechnology
3. Artificial Intelligence (AI)
CONCURRENT ENGINEERING
Bringing design and manufacturing engineers together early
in the design phase
• manufacturing personnel, marketing and purchasing personnel in loosely
integrated cross-functional teams
• Views of suppliers and customers may also be sought
The Purpose:
• achieve product designs that reflect customer wants as well as manufacturing
capabilities
COMPUTER – AIDED DESIGN (CAD)
Increases designers’ productivity
Directly provides information to
manufacturing (dimensions,
material - BOM).
Perform analysis: engineering ,cost.
Shortens time-to-market
PRODUCTION REQUIREMENTS
Designers must take into account production capabilities
• Equipment
• Skills
• Types of materials
• Schedules
• Technologies
• Special abilities
When opportunities and capabilities do not match management must
consider expanding or changing capabilities
Related concepts:
1. Design For Manufacturing (DFM)
2. Design For Assembly (DFA)
3. Manufacturability
DFM AND DFA
Design for Manufacturing (DFM)
The designing of products that are compatible with an
organization’s abilities
Manufacturability
1. Ease of fabrication and/or assembly
2. It has important implications for
• Cost
• Productivity
• Quality
Design for Assembly (DFA)
Design that focuses on reducing the number of parts in a product and on assembly
methods and sequence
COMPONENT COMMONALITY
When products have a high degree of similarity in features and
components, a part can be used in multiple products
Benefits
• Savings in design time
• Standard training for assembly and installation
• Opportunities to buy in bulk from suppliers
• Commonality of parts for repair
• Fewer inventory items must be handled
SERVICE DESIGN DEFINITIONS
Service
Something that is done to, or for, a customer
Service delivery system
The facilities, processes, and skills needed to provide a service
Product bundle
The combination of goods and services provided to a customer
Service package
The physical resources needed to perform the service, accompanying goods, and
the explicit (core features) and implicit (ancillary features) services included
SERVICE DESIGN
Begins with a choice of service strategy, which determines the nature
and focus of the service, and the target market
Key issues in service design
• Degree of variation in service requirements
• Degree of customer contact and involvement
DIFFERENCES BETWEEN SERVICE AND PRODUCT
DESIGN
1. Products are generally tangible, services intangible
2. Services are created and delivered at the same time
3. Services cannot be inventoried
4. Services are highly visible to consumers
5. Some services have low barriers to entry and exit
6. Location is often important to service design, with convenience as a
major factor
7. Service systems range from those with little or no customer contact to
those that have a very high degree of customer contact
8. Demand variability alternately creates waiting lines or idle service
resources
SERVICE BLUEPRINT
• a method used in service design to describe and analyze a proposed
service
QUESTIONS?
COMMENTS?
FEEDBACKS?
Thinking is the hardest work there
is, which is probably the reason
why so few engage in it
-Henry Ford
THANKYOU!
END OF CHAPTER 4