Product and Service Design Module 4 PDF

Product and Service Design Module 4 Proud to be RTUian Product design - the combination of manufacturing capabilities with product and business knowledge to convert ideas into physical and usable objects. Service design - the coordination and combination of people, communication, and...

Product and Service Design Module 4 Proud to be RTUian Product design - the combination of manufacturing capabilities with product and business knowledge to convert ideas into physical and usable objects. Service design - the coordination and combination of people, communication, and material components to create quality service. Strategic importance of product and service design: Organizations that have well- designed products or services are more likely to realize their goals than those with poorly designed products or services. Strategic importance of product and service design: Product or service design should be closely tied to an organization’s strategy. It is a major factor in cost, quality, time-to-market, customer satisfaction, and competitive advantage. Strategic importance of product and service design: Demand forecasts and projected costs are important, as is the expected impact on the supply chain. Strategic importance of product and service design: A significant cause of operations failures can be traced to faulty design. Designs that have not been well thought out, or are incorrectly implemented, or instructions for assembly or usage that are wrong or unclear, can be the cause of product and service failures, leading to lawsuits, injuries and deaths, product recalls, and damaged reputations. What Does Product and Service Design Do? 1. Translate customer wants and needs into product and service requirements. 2. Refine existing products and services. 3. Develop new products and/or services. What Does Product and Service Design Do? 4. Formulate quality goals. 5. Formulate cost targets. 6. Construct and test prototypes. 7. Document specifications. 8. Translate product and service specifications into process specifications. Objectives of Product and Service Design:  Primary consideration - Customer satisfaction Secondary considerations - Cost or profit, quality, ability to produce a product or provide a service, ethics/safety, and sustainability. Questions/Issues to Take Into Account: 1. Is there demand for it? 2. Can we do it? 3. What level of quality is appropriate? 4. Does it make sense from an economic standpoint? Reasons for Product and Service Design or Redesign: Economic Social and demographic Political, liability, or legal Competitive Cost or availability Technological IDEA GENERATION (Main sources of design ideas): 1. Competitors’ products and services - by studying a competitor’s products or services and how the competitor operates an organization can glean many ideas. IDEA GENERATION (Main sources of design ideas): Reverse engineering - dismantling and inspecting a competitor’s product to discover product improvement; or even come up with a product better than the competitor’s. IDEA GENERATION (Main sources of design ideas): 2. Research and development (R&D) - organized efforts to increase scientific knowledge or product innovation. Basic research has the objective of advancing the state of knowledge about a subject, without any near-term expectation of commercial applications.  Applied research has the objective of achieving commercial applications.  Development converts the results of applied research into useful commercial applications. LEGAL AND ETHICAL CONSIDERATIONS: 1. Product liability - the responsibility of a manufacturer for any injuries or damages caused by a faulty product; a product must be suitable for its intended purpose. HUMAN FACTORS: 1. Safety and liability are two critical issues in many instances, and they must be carefully considered. 2. Creeping featurism seeking a competitive edge by adding new features. CULTURAL FACTORS: - any cultural differences of different countries or regions related to the product must be taken into account; this can result in different designs for different countries or regions. GLOBAL PRODUCT AND SERVICE DESIGN: - organizations that operate globally uses the combined efforts of a team of designers who work in different countries and even on different continents engaging the best human resources from around the world. ENVIRONMENTAL FACTORS - SUSTAINABILITY KEY ASPECTS: 1. Cradle-to-grave assessment - the assessment of the environmental impact of a product or service throughout its useful life. also known as life cycle analysis focusing on such factors as global warming. ENVIRONMENTAL FACTORS - SUSTAINABILITY KEY ASPECTS: 2. End-of-Life Programs - the purpose is to reduce the dumping of products that have reached the end of their useful lives, in landfills or third-world countries, or incineration which converts materials into hazardous air and water emissions and generates toxic ash. ENVIRONMENTAL FACTORS - SUSTAINABILITY KEY ASPECTS: 3. The Three Rs: Reduce, Reuse, and Recycle  Reduce: Value Analysis - Examination of the function of parts and materials in an effort to reduce cost and/or improve product performance. ENVIRONMENTAL FACTORS - SUSTAINABILITY KEY ASPECTS: Reuse: Remanufacturing - refurbishing used products by replacing worn-out or defective components, and reselling the products. ENVIRONMENTAL FACTORS - SUSTAINABILITY KEY ASPECTS:  Recycle: recovering materials for future use. Reasons for recycling: 1. Cost savings 2. Environment concerns 3. Environmental regulation Phases in product design and development: 1. Launching (introduction) - it may be treated as a curiosity item; many potential buyers may suspect that all the bugs haven’t been worked out and that the price may drop after the introductory period. 1. Launching (introduction) - companies must carefully weigh the trade-offs in getting all the bugs out versus getting a leap on the competition, as well as getting to market at an advantageous time. 1. Launching (introduction) - it is important to have a reasonable forecast of initial demand so an adequate supply of product or an adequate service capacity is in place. 2. Growth phase - design improvements and increasing demand yield higher reliability and lower costs, leading the growth in demand. 2. Growth phase - it is important to obtain accurate projections of the demand growth rate and how long that will persist, and then to ensure that capacity increases coincide with increasing demand. 3. Maturity - the demand levels off; few, if any, design changes are needed. - generally, costs are low and productivity is high; new uses for products or services can extend their life and increase the market size. 4. Decline phase - decisions must be made about whether to discontinue a product or service and replace it with new ones or abandon the market, or to attempt to find new uses or new users for the existing product or service. Product life cycle management (PLM) - a systematic approach to managing the series of changes a product goes through, from its conception to its end-of-life. Three phases of PLM application: Beginning of life Middle of life End of life Key issues in product or service design 1. Standardization - extent to which a product, service, or process lacks variety. Standardization advantages: 1. Fewer parts to deal with in inventory and in manufacturing. 2. Reduced training costs and time. 3. More routine purchasing, handling, and inspection procedures. 4. Orders fillable from inventory. Standardization disadvantages: 1. Designs may be frozen with too many imperfections remaining. 2. High cost of design changes increases resistance to improvements. 3. Decreased variety results in less consumer appeal. Key issues in product or service design Companies like standardization because it enables them to produce high volumes of relatively low-cost products, albeit products with little variety. Customers, on the other hand, typically prefer more variety, although they like the low cost. Key issues in product or service design The question for producers is how to resolve these issues without  losing the benefits of standardization, and  incurring a host of problems that are often linked to variety. Key issues in product or service design 2. Mass Customization - a strategy of producing basically standardized goods, but incorporating some degree of customization in the final product or service. Mass Customization Techniques Delayed differentiation Modular design Delayed differentiation - a postponement tactic: the process of producing, but not quite completing, a product or service, postponing completion until customer preferences or specifications are known. Modular design - A form of standardization in which component parts are grouped into modules that are easily replaced or interchanged. Key issues in product or service design 3. Reliability - a measure of the ability of a product, a part, a service, or an entire system to perform its intended function under a prescribed set of conditions. Failure – is a 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; if users do not heed these conditions it often results in premature failure of parts or complete systems. Key issues in product or service design 4. Robust Design – a design that results in products or services that can function over a broad range of conditions. Key issues in product or service design 5. Degree of Newness – Modification of an existing product or service Expansion of an existing product line or service offering Clone of a competitor’s product or service New product or service Key issues in product or service design 6. Quality function deployment (QFD) - an approach that integrates the “voice of the customer” into both product and service development. - the purpose is to ensure that customer requirements are factored into every aspect of the process. PHASES IN PRODUCT DESIGN & DEVT 1. Feasibility analysis 2. Product specifications 3. Process specifications 4. Prototype development 5. Design review 6. Market test 7. Product introduction 8. Follow-up evaluation 1. Feasibility analysis - entails market analysis (demand), economic analysis (development cost and production cost, profit potential), and technical analysis (capacity requirements and availability, and the skills needed). - requires collaboration among marketing, finance, accounting, engineering, and operations. 2. Product specifications - detailed descriptions of what is needed to meet (or exceed) customer wants, and requires collaboration between legal, marketing, and operations. 3. Process specifications – determining the methods that will be needed to produce the product. - alternatives must be weighed in terms of cost, availability of resources, profit potential, and quality; this involves collaboration between accounting and operations. 4. Prototype development* - once product and process specifications are complete, one (or a few) units are made to see if there are any problems with the product or process specifications. * Sample or model 5. Design review - at this stage, any necessary changes are made or the project is abandoned. - marketing, finance, engineering, design, and operations collaborate to determine whether to proceed or abandon. 6. Market test - used to determine the extent of consumer acceptance. If unsuccessful, the product returns to the design review phase. - this phase is handled by marketing. 7. Product introduction - the new product is promoted. - this phase is handled by marketing guys people who determine the type of promotion that is suitable to the product. 8. Follow-up evaluation - Based on user feedback, changes may be made or forecasts refined. - this phase is handled by marketing. Characteristics of well-designed service system: Being consistent with the organization’s mission. Being user-friendly. Being robust if variability is a factor. Being easy to sustain.  Being cost-effective. Having value that is obvious to customers. Having a single, unifying theme, such as convenience or speed. Having design features and checks that will ensure service that is reliable and of high quality.  Having effective linkages between back-of-the-house operations (i.e., no contact with the customer) and front-of-the-house operations (i.e., direct contact with customers). - Front operations should focus on customer service, while back operations should focus on speed and efficiency. Guidelines for successful service designs: 1. Define the service package in detail. A service blueprint may be helpful for this. 2. Focus on the operation from the customer’s perspective. Consider how customer expectations and perceptions are managed during and after the service. 3. Consider the image that the service package will present both to customers and to prospective customers. 4. Recognize that designers’ familiarity with the system may give them quite a different perspective than that of the customer, and take steps to overcome this.  5. Make sure that managers are involved and will support the design once it is implemented. 6. Define quality for both tangibles and intangibles. Intangible standards are more difficult to define, but they must be addressed.