1. Product and Service Design

2. 4-2 Major factors in design strategy – Cost – Quality – Time-to-market – Customer satisfaction – Competitive advantage Product and Service Design Product and service design – or redesign – should be closely tied to an organization’s strategy

3. 4-3 1.Translate customer wants and needs into product and service requirements 2.Refine existing products and services 3.Develop new products and services 4.Formulate quality goals 5.Formulate cost targets 6.Construct and test prototypes 7.Document specifications Product or Service Design Activities

4. 4-4 Other Issues in Product and Service Design Product/service life cycles How much standardization Mass customization Product/service reliability Robust design Degree of newness Cultural differences

5. 4-5 Standardization – Extent to which there is an absence of variety in a product, service or process Standardized products are immediately available to customers

6. 4-6 Advantages of Standardization Fewer parts to deal with in inventory & manufacturing Design costs are generally lower Reduced training costs and time More routine purchasing, handling, and inspection procedures Quality is more consistent

7. 4-7 Disadvantages of Standardization Designs may be frozen with too many imperfections remaining. High cost of design changes increases resistance to improvements. Decreased variety results in less consumer appeal.

8. 4-8 Mass customization: – A strategy of producing standardized goods or services, but incorporating some degree degree of customization – Delayed differentiation – Modular design Mass Customization

9. 4-9 Delayed differentiation is a postponement tactic – Producing but not quite completing a product or service until customer preferences or specifications are known Delayed Differentiation

10. 4-10 Modular Design Modular design is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged. It allows: – easier diagnosis and remedy of failures – easier repair and replacement – simplification of manufacturing and assembly

11. 4-11 Reliability Reliability : The ability of a product, part, or system to perform its intended function under a prescribed set of conditions Failure : Situation in which a product, part, or system does not perform as intended Normal operating conditions : The set of conditions under which an item’s reliability is specified

12. 4-12 Improving Reliability Component design Production/assembly techniques Testing Redundancy/backup Preventive maintenance procedures User education System design

13. 4-13 Product Design Product Life Cycles Robust Design Concurrent Engineering Computer-Aided Design Modular Design

14. 4-14 Robust Design: Design that results in products or services that can function over a broad range of conditions Robust Design

15. 4-15 Phases in Product Development Process 1.Idea generation 2.Feasibility analysis 3.Product specifications 4.Process specifications 5.Prototype development 6.Design review 7.Market test 8.Product introduction 9.Follow-up evaluation

16. 4-16 Reverse Engineering Reverse engineering is the dismantling and inspecting of a competitor’s product to discover product improvements.

17. 4-17 Manufacturability Manufacturability is the ease of fabrication and/or assembly which is important for: – Cost – Productivity – Quality

18. 4-18 Concurrent Engineering Concurrent engineering is the bringing together of engineering design and manufacturing personnel early in the design phase.

19. 4-19 Computer-Aided Design Computer-Aided Design (CAD) is product design using computer graphics. – increases productivity of designers, 3 to 10 times – creates a database for manufacturing information on product specifications – provides possibility of engineering and cost analysis on proposed designs

20. 4-20 Design for manufacturing (DFM) Design for assembly (DFA) Design for recycling (DFR) Remanufacturing Design for disassembly (DFD) Robust design Product design

21. 4-21 Quality Function Deployment – Voice of the customer – House of quality Quality Function Deployment QFD: An approach that integrates the “voice of the customer” into the product and service development process.

22. 4-22 The House of Quality Correlation matrix Design requirements Customer require- ments Competitive assessment Relationship matrix Specifications or target values Figure 4.3

23. 4-23 House of Quality Example Figure 4.4

24. 4-24 The Kano Model Figure 4.5

25. 4-25 Service Design 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

26. 4-26 Tangible – intangible Services created and delivered at the same time Services cannot be inventoried Services highly visible to customers Services have low barrier to entry Location important to service Range of service systems Demand variability Differences Between Product and Service Design

27. 4-27 Service Design Service is mainly selling experience along with the product Service Concept Service delivery – Facilities – Processes – Skills

28. Market Operations Narrow range of services Service concept Focused operations for a narrow market

29. Market Operations Narrow range of services Service concept Focused operations for a wide market

30. Market Operations Wide range of services Service concept Unfocused operations for a narrow market

31. Market Operations Wide range of services Service concept Unfocused operations for a wide market

32. Number of markets served Few Many NarrowWide Range of services Service focused Unfocused – everything for everyone Market focused Service and market focused Four service concepts Source: Adapted from Johnston (1999). Reprinted by permission of Taylor & Francis, www.tandf.co.uk/journals.

33. Achieving focus by splitting the business

34. Market Service concept Operations Encounter focus

35. 4-35 Service Design Service design involves – The physical resources needed – The goods that are purchased or consumed by the customer – Explicit services – Implicit services

36. 4-36 Service Systems Design of Service systems is mainly influenced by high degree of customer contact such as: – Insulated technical core (software development) – Production line (automatic car wash) – Personalized service (hair cut, medical service) – Consumer participation (diet program) – Self service (supermarket)

37. 4-37 Phases in Service Design 1.Conceptualize 2.Identify service package components 3.Determine performance specifications 4.Translate performance specifications into design specifications 5.Translate design specifications into delivery specifications

38. 4-38 Service Blueprinting Service blueprinting – A method used in service design to describe and analyze a proposed service A useful tool for making Service Delivery effective

39. 4-39 Major Steps in Service Blueprinting 1.Establish Service Focus 2.Identify sequence of customer interactions Prepare a flowchart 3.Develop time estimates 4.Identify potential failure points

40. 4-40 Characteristics of Well Designed Service Systems 1.Consistent with the organization mission 2.User friendly 3.Robust 4.Easy to sustain 5.Cost effective 6.Value to customers 7.Effective linkages between back operations 8.Single unifying theme 9.Ensure reliability and high quality

41. 4-41 Guidelines for Successful Service Design 1.Define the service package 2.Focus on customer’s perspective 3.Make sure that managers are involved 4.Define quality for tangible and intangibles 5.Make sure that recruitment, training and rewards are consistent with service expectations 6.Establish procedures to handle exceptions 7.Establish systems to monitor service