Product & Service Design Activities PDF

What Does Product & Service Design Do? Activities and responsibilities of product and service design include 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....

What Does Product & Service Design Do? Activities and responsibilities of product and service design include 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. 8.Translate product and service specifications into process specifications. Key Questions - Is there a demand for it?Potential size of the market. Expected demand profile. Can We Do It? Manufacturability ; the capability of an organization to produce an item at an acceptable profit. Serviceability ; the capability of an organization to provide a service at an acceptable cost or profit. Reverse engineering.Dismantling and inspecting competitor's product to discover ways of their own product improvements. Phases in Product Design and Development 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 Product specification Feasibility analysis Market Analysis. Detailed Descriptions Of What Is Process specifications Attention Economic analysis. Technical Needed. turns to specifications for the analysis. process that will be needed to produce the product. Alternatives Must Be Weighted. Prototype development With Product Design review. And Process Specifications Any Necessary Changes Are Made. Market test Used to determine the extent Complete,one(or a few) units are made. Project Can Be Abandoned. of consumer acceptance. If unsuccessful, product returns to Phase 5. Legal considerations: Product liability. The responsibility a manufacturer has for any injuries or damages caused by a faulty product because of poor design or manufacturing. - Some of the associated costs. Litigation. Legal and insurance costs. Settlement costs. Costly product recalls. Reputation effects. Ethical Considerations Designers are often under pressure to: Speedup The Design Process. Cut Costs. These pressures force trade-off decisions: Whatif A Software Product Has Bugs? - Release the product and risk damage to your reputation. - Work out the bugs and sacrifice revenue. Other Considerations Human factors: Safety And Liability. Cultural factors: Colors, preferred food, product labels. Global design: Design teams can be indifferent countries. 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; if it cannot be disassembled, 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. Degree of Newness Product or service design changes: 1. Modification of an existing product or service. 2. Expansion of an existing product line or service offering. 3. Clone of a competitor’s product or service. 4. New product or service. The degree of change affects the newness of the product or service to the market and to the organization. Concurrent engineering: Bringing engineering design and manufacturing personnel together early in the design phase. - Also may involve manufacturing, marketing and purchasing personnel in loosely integrated cross- functional teams. - Views Of Suppliers And Customers May Also Be Sought. The Purpose is to achieve product design That Reflect customer wants as well as manufacturing capabilities Manufacturability: Ease of fabrication and/or assembly It Has Important Implications For: Cost. Productivity. Quality. Design For Manufacturing(DFM). Design For Assembly(DFA). Component Commonality When products have a high degree of similarity in features and components, a part can be used in multiple products. Benefits: Savings Indesign Time. Standard Training For Assembly And Installation Opportunities Buy In Bulk From Suppliers. Commonality of parts for repair. Fewer inventory items must be handled. 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 Customer Contact And Involvement. - Degree Of Variability In Service Requirements Differences between Service and Product Design 1.Products are generally tangible; services are 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. Phases in Service Design Process 1. Conceptualize. - Idea generation. - Assessment of customer wants/needs. - Assessment of demand potential. 2.Identify service package components needed.3.Determine performance specifications.4.Translate performance specifications into design specifications. 5.Translate design specifications into delivery specifications. Service blueprint: A Method For Describing And Analyzing A Service Process. - Shows customer and service actions. Majorstepsare: - Establish boundaries. - Identify and determine the sequence of customer and service actions and interactions. - Develop time estimates for each phase of the process. Identify potential failure points. Design StrategyEffective product and service design can help the organization achieve competitive advantage: Packaging products and ancillary services to increase sales. Using multiple-use platforms. Implementing tactics that will achieve the benefits of high volume while satisfying customer needs for variety. Continually monitoring products and services for small improvement opportunities. Shortening the time it takes to get new or redesigned goods and services to market. Capacity decisions: 1.Have a real impact on the organization’s ability to meet future demands. 2.Affect operating costs. 3.Are a major determinant of initial cost. 4.Often involves long-term commitment of resources. 5.Can affect competitiveness. 6.Affect the ease of management. 7.Have become more important and complex due to globalization. 8.Need to be planned for them far in advance due to their consumption of financial and other resources..Determinants of Effective Capacity Facilities. Process factors. Policy factors. Supply chain factors. Product and service factors. Human factors. Operational factors. External factors. Strategy FormulationStrategies are typically based on assumptions and predictions about: Long-term demand patterns. Technological changes. Competitors behavior. Strategy FormulationThese assumptions and predictions typically involve: 1.The growth rate and variability of demand. 2.The costs of building and operating facilities. 3.The rate and direction of technological innovation. 4.The likely behavior of competitors. 5.Availability of capital and other inputs..Forecasting Capacity RequirementsLong-term considerations relate to overall level of capacity requirements. Require forecasting demand over a time horizon and then converting those needs into capacity requirements. Short-term considerations relate to probable variations in capacity requirements. Less concerned with cycles and trends than with seasonal variations and other variations from average. The need to be near customers. Convenience. The inability to store services. Cannot store services for consumption later. The degree of volatility of demand. Volume and timing of demand. Time required to service individual customers. Demand Management Strategies ; Strategies used to offset capacity limitations and that are intended to achieve a closer match between supply and demand. Pricing. Promotions. Discounts. Other tactics to shift demand from peak periods into slow periods. In-House or Outsource? Once capacity requirements are determined, the organization must decide whether to produce a good or service itself or outsource from another organization. Factors to consider: Available capacity. Quality considerations. Cost. Expertise. The nature of demand. Risks. Developing Capacity Alternatives ; Things that can be done to enhance development of capacity management: - Design flexibility into systems. - Take the stage of life cycle into account. - Take a “big-picture” approach to capacity changes. - Prepare to deal with capacity “chunks”. - Attempt to smooth capacity requirements. - Identify the optimal operating level. - Choose a strategy if expansion is involved. Bottleneck Operation An operation in a sequence of operations whose capacity is lower than that of the other operations in the sequence. Constraint: Something that limits the performance of a process or system in achieving its goals. Categories: - Market: Insufficient demand. - Resource: Too little of one or more resources. - Material: Two little or more materials. - Financial: Insufficient funds. - Knowledge or competency: Needed knowledge or skills missing or incomplete. - Policy: Laws or regulations interfere. evaluating Alternatives ; Alternatives should be evaluated from varying perspectives. Economic: - Is it economically feasible? - How much will it cost?  - How soon can we have it? - What will operating and maintenance costs be? - What will its useful life be? - Will it be compatible with present personnel and present operations? - Non-economic. - Public opinion..Cost-volume analysis: Focuses on the relationship between cost, revenue, and volume of output. - The purpose is to estimate an organization’s income under different operating conditions. Capacity StrategyCapacity planning impacts all areas of the organization. It determines the conditions under which operations will have to function. Flexibility allows an organization to be agile. - it reduces the organization’s dependence on forecast accuracy and reliability. - Many organizations utilize capacity cushions to achieve flexibility. Bottleneck management is one way by which organizations can enhance their effective capacities. Capacity expansion strategies are important organizational considerations. - Expand-early strategy. - Wait-and-see strategy. Capacity contraction is sometimes necessary.- Capacity disposal strategies become important under these conditions