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Questions and Answers
Reverse engineering involves dismantling and inspecting a competitor's product for improvement.
True
Basic research targets immediate commercial applications.
False
Product liability refers to a manufacturer's responsibility for damages caused by faulty products.
True
Creeping featurism is a marketing strategy that simplifies a product's features.
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Organizations that operate globally use teams of designers from various countries to enhance their products.
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A cradle-to-grave assessment focuses only on the disposal of a product.
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End-of-life programs aim to limit the dumping of expired products in landfills.
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Cultural factors do not influence product design in different countries.
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Product design is the combination of marketing strategies with product and business knowledge.
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Service design focuses on the coordination and combination of people, communication, and material components.
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Organizations with poorly designed products or services are more likely to achieve their goals.
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Product or service design has no impact on customer satisfaction.
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Faulty design is one of the main causes of operations failures within organizations.
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Customer satisfaction is the primary consideration in product and service design.
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It is unnecessary to assess economic viability during the design process.
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Idea generation in design can come from various sources including economic and technological aspects.
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Value Analysis aims to improve product performance and reduce cost.
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Remanufacturing involves creating entirely new products from scratch.
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Recovering materials for future use is known as recycling.
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In the maturity phase, demand levels continue to grow significantly.
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Accurate projections of demand growth are crucial during the growth phase.
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During the decline phase, companies should always discontinue a product immediately.
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Standardization reduces training costs and time.
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The Beginning of Life phase is part of product life cycle management (PLM).
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Standardization allows companies to produce high volumes of low-cost products with a wide variety.
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Customers generally prefer more variety in products despite the preference for low-cost options.
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Mass customization refers to producing entirely unique goods for each customer.
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Delayed differentiation is a tactic of completing a product before knowing customer specifications.
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Reliability measures the effectiveness of a product under predetermined conditions.
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Robust design ensures that products can only function under very specific conditions.
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The degree of newness includes modifying existing products and creating entirely new products.
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Normal operating conditions are irrelevant to a product's reliability.
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Quality function deployment aims to integrate the 'voice of the customer' into product and service development.
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The feasibility analysis phase does not require collaboration among different departments.
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Product specifications are detailed descriptions created to exceed customer wants and require collaboration between legal, marketing, and operations.
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Prototype development involves creating multiple units to identify potential problems with the product specifications.
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The market test phase is used only to promote the new product.
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Follow-up evaluation is conducted to refine forecasts and may involve making changes based on user feedback.
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A well-designed service system must be robust if variability is a factor.
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Having a single, unifying theme in service design is considered unnecessary.
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Study Notes
Product and Service Design
- Product Design combines manufacturing capabilities, product knowledge, and business insights to create tangible and usable products.
- Service Design coordinates and combines people, communication, and materials to deliver high-quality services.
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Strategic Importance of Product and Service Design:
- Well-designed products and services enhance an organization's ability to achieve its goals.
- Design should align with organizational strategy.
- Design significantly influences cost, quality, time-to-market, customer satisfaction, and competitive advantage.
- Design impacts demand forecasts, projected costs, and supply chain performance.
- Faulty design can lead to operational failures, lawsuits, injuries, product recalls, and reputational damage.
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Product and Service Design Functions:
- Translate customer desires into product and service requirements.
- Refine existing products and services.
- Develop new products and services
- Establish quality goals.
- Set cost targets.
- Construct and test prototypes.
- Document specifications.
- Convert product and service specifications into process specifications.
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Objectives of Product and Service Design:
- Primary Consideration: Customer satisfaction.
- Secondary Considerations: Cost or profit, quality, production feasibility, ethical considerations, safety, and sustainability.
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Questions/Issues to Consider:
- Is there demand for the product or service?
- Are we capable of producing or delivering it?
- What level of quality is appropriate?
- Does it make economic sense?
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Reasons for Product and Service Design or Redesign:
- Economic factors.
- Social and demographic changes.
- Political, liability, or legal considerations.
- Competitive pressures.
- Cost or availability changes.
- Technological advancements.
Idea Generation
- Competitor Analysis: Studying competitor's products, services, and operations can generate valuable design ideas.
- Reverse Engineering: Disassembling and examining competitor's products to identify improvement opportunities or create superior alternatives.
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Research and Development (R&D): Organized efforts to advance scientific knowledge or product innovation.
- Basic Research: Aims to expand knowledge without immediate commercial applications.
- Applied Research: Focuses on achieving commercial applications.
- Development: Transforms applied research results into useful commercial products or services.
Legal and Ethical Considerations
- Product Liability: Manufacturers are responsible for injuries or damages caused by faulty products. Products must be suitable for their intended purpose.
Human Factors
- Safety and Liability: Critical considerations in many instances.
- Creeping Featurism: Adding new features to gain a competitive edge, sometimes leading to complexity and unnecessary features.
Cultural Factors
- Consider cultural differences across countries and regions when designing products or services. This can result in tailored designs for specific markets.
Global Product and Service Design
- Organizations with global operations utilize teams of designers located in different countries and continents.
- This approach combines the best human resources from around the world.
Environmental Factors - Sustainability
- Cradle-to-Grave Assessment (Life Cycle Analysis): Assessing a product or service's environmental impact throughout its lifespan, considering factors like global warming.
- End-of-Life Programs: Reducing product dumping in landfills, third-world countries, or incineration.
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The Three Rs:
- Reduce: Value Analysis - examining parts and materials to reduce cost and improve performance.
- Reuse: Remanufacturing - refurbishing used products by replacing worn-out components.
- Recycle: Recovering materials for future use.
- Reasons for Recycling: Cost savings, environmental concerns, and regulations.
Phases in Product Design and Development
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Launching (Introduction):
- Product may be considered a curiosity item.
- Potential buyers may be hesitant due to unproven reliability and potential price drops.
- Companies must balance bug-fixing with time-to-market and competitive advantage.
- Accurate demand forecasting is crucial to ensure adequate supply or service capacity.
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Growth Phase:
- Design improvements and increasing demand lead to better reliability and lower costs.
- Accurate demand growth projections and capacity expansion are essential.
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Maturity:
- Demand levels off.
- Limited design changes are needed.
- Costs are generally low, and productivity is high.
- New uses can extend the product or service's life and expand the market.
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Decline Phase:
- Decisions must be made about product discontinuation, replacement, or market abandonment.
- Exploring new uses or users for existing products or services is an option.
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Product Life Cycle Management (PLM):
- A systematic approach to managing product changes from conception to end-of-life.
- Phases: Beginning of life, Middle of life, End of life.
Key Issues in Product or Service Design
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Standardization:
- The extent of uniformity in products, services, or processes.
- Advantages: Fewer parts, reduced training, streamlined purchasing and handling, inventory-based orders.
- Disadvantages: Limited design flexibility, costly design changes, reduced consumer appeal.
- Companies favor standardization for high volume, low-cost production.
- Customers prefer variety but appreciate low costs.
- The challenge is to balance standardization benefits with customer demand for variety.
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Mass Customization:
- Producing standardized goods with elements of customization in the final product or service.
- Techniques: Delayed differentiation and Modular Design.
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Delayed Differentiation:
- Postponing product or service completion until customer preferences are known.
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Modular Design:
- A form of standardization where components are grouped into easily replaceable modules.
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Reliability:
- A measure of a product, part, service, or system's ability to function as intended under specified conditions.
- Failure: Occurs when an item does not perform as intended.
- Normal Operating Conditions: Define the conditions under which reliability is specified. Deviating from these conditions can result in premature failure.
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Robust Design:
- A design that produces products or services capable of functioning under a wide range of conditions.
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Degree of Newness:
- Modifications to an existing product or service.
- Expansions to an existing product line or service offering.
- Clones of competitor's products or services.
- Entirely new products or services.
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Quality Function Deployment (QFD):
- An approach that integrates "voice of the customer" into product and service development.
- Ensures that customer needs are considered in every stage of the process.
Phases in Product Design and Development (In Detail)
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1. Feasibility Analysis:
- Market analysis (demand).
- Economic analysis (development and production costs, profit potential).
- Technical analysis (capacity requirements, skills).
- Collaboration between marketing, finance, accounting, engineering, and operations.
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2. Product Specifications:
- Detailed descriptions of customer requirements.
- Requires collaboration between legal, marketing, and operations.
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3. Process Specifications:
- Determining the methods for producing the product.
- Weighing alternatives based on cost, resource availability, profitability, and quality.
- Involves collaboration between accounting and operations.
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4. Prototype Development:
- Creating one or more units to test product and process specifications.
- Identifies potential problems.
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5. Design Review:
- Evaluating the design and making necessary changes.
- Determining whether to proceed or abandon the project.
- Collaboration between marketing, finance, engineering, design, and operations.
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6. Market Test:
- Assessing consumer acceptance.
- Returning to the design review phase if unsuccessful.
- Handled by marketing.
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7. Product Introduction:
- Promoting the new product.
- Handled by marketing.
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8. Follow-Up Evaluation:
- Gathering user feedback and making adjustments.
- Refining forecasts based on performance.
- Handled by marketing.
Characteristics of a Well-Designed Service System
- Aligns with the organization's mission.
- Easy to use.
- Robust in the face of variability.
- Easy to maintain.
- Cost-effective.
- Offers clear value to customers.
- Has a single, unifying theme (e.g., convenience or speed).
- Incorporates design features and checks to ensure reliable, high-quality service.
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Description
This quiz covers the fundamentals of product and service design, focusing on their strategic importance and functions. Learn how effective design can drive organizational success and influence customer satisfaction and competitive advantage. Explore the essential components that contribute to successful product and service outcomes.
