Product and Service Design Product and Service Design

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Product and Service Design

Product and Service Design

Product and Service Design • Major factors in design strategy – Cost – Quality

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

Product or Service Design Activities 1. Translate customer wants and needs into product and

Product or Service Design Activities 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 4 -3

Other Issues in Product and Service Design • • 4 -4 Product/service life cycles

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

Standardization • Standardization – Extent to which there is an absence of variety in

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

Advantages of Standardization • Fewer parts to deal with in inventory & manufacturing •

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 4 -6

Disadvantages of Standardization • Designs may be frozen with too many imperfections remaining. •

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. 4 -7

Mass Customization • Mass customization: – A strategy of producing standardized goods or services,

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

Delayed Differentiation • Delayed differentiation is a postponement tactic – Producing but not quite

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

Modular Design Modular design is a form of standardization in which component parts are

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: 4 -10 – easier diagnosis and remedy of failures – easier repair and replacement – simplification of manufacturing and assembly

Reliability • Reliability: The ability of a product, part, or system to perform its

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 4 -11

Improving Reliability • Component design • Production/assembly techniques • Testing • Redundancy/backup • Preventive

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

Product Design • Product Life Cycles • Robust Design • Concurrent Engineering • Computer-Aided

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

Robust Design: Design that results in products or services that can function over a

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

Phases in Product Development Process 1. 2. 3. 4. 5. 6. 7. 8. 9.

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

Reverse Engineering Reverse engineering is the dismantling and inspecting of a competitor’s product to

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

Manufacturability • Manufacturability is the ease of fabrication and/or assembly which is important for:

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

Concurrent Engineering Concurrent engineering is the bringing together of engineering design and manufacturing personnel

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

Computer-Aided Design • Computer-Aided Design (CAD) is product design using computer graphics. 4 -19

Computer-Aided Design • Computer-Aided Design (CAD) is product design using computer graphics. 4 -19 – 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

Product design • • • 4 -20 Design for manufacturing (DFM) Design for assembly

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

Quality Function Deployment • Quality Function Deployment – Voice of the customer – House

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

The House of Quality Figure 4. 3 Correlation matrix Design requirements Customer requirements Relationship

The House of Quality Figure 4. 3 Correlation matrix Design requirements Customer requirements Relationship matrix Specifications or target values 4 -22 Competitive assessment

House of Quality Example Figure 4. 4 Correlation: X X o. C us t.

House of Quality Example Figure 4. 4 Correlation: X X o. C us t. X * Competitive evaluation X = Us A = Comp. A B = Comp. B (5 is best) 1 2 3 4 7 X Stays open on a hill 5 X AB Easy to open 3 Doesn’t leak in rain 3 No road noise Importance weighting 2 Technical evaluation (5 is best) 5 AB XAB A XB X A 5 4 3 2 1 B A X B X A BXA 3 Maintain current level 2 Maintain current level 9 Reduce energy to 7. 5 ft/lb. 6 Reduce force to 9 lb. 6 Maintain current level Reduce energy level to 7. 5 ft/lb 10 Target values 4 -23 Water resistance Customer Requirements Easy to close et Accoust. Trans. Window nc Check force on level ground Energy needed to open door rta Engineering Characteristics Door seal resistance po Energy needed to close door Im X X X Strong positive Positive Negative Strong negative BA X Relationships: Strong = 9 Medium = 3 Small = 1 B

The Kano Model Figure 4. 5 4 -24

The Kano Model Figure 4. 5 4 -24

Service Design • Service – Something that is done to or for a customer

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 4 -25

Differences Between Product and Service Design • • Tangible – intangible Services created and

Differences Between Product and Service Design • • 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 4 -26

Service Design • Service is mainly selling experience along with the product • Service

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

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

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

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

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

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

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

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

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

Many Service focused Number of markets served Service and market focused Few Narrow Unfocused

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

Achieving focus by splitting the business

Achieving focus by splitting the business

Service concept Operations Market Encounter focus

Service concept Operations Market Encounter focus

Service Design • Service design involves – The physical resources needed – The goods

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

Service Systems • Design of Service systems is mainly influenced by high degree of

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) 4 -36

Phases in Service Design 1. Conceptualize 2. Identify service package components 3. Determine performance

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 4 -37

Service Blueprinting • Service blueprinting – A method used in service design to describe

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 4 -38

Major Steps in Service Blueprinting 1. Establish Service Focus 2. Identify sequence of customer

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 4 -39

Characteristics of Well Designed Service Systems 1. 2. 3. 4. 5. 6. 7. 8.

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

Guidelines for Successful Service Design 1. 2. 3. 4. 5. Define the service package

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