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Product and Service Design

Product and Service Design


Product design refers to designing a product in such a way that it can
fulfill those needs of consumers for which it is consumed.

Buyers Point of View: Organization’s Point of View:


o Cost (price actually) o Is there Demand for it?
o Quality of Product (not production) o Can we do it? Manufacturability/Serviceability
o What Level of Quality is Appropriate?
o Cost of Production?

Consumer Satisfaction
Reasons For
Product and Service Design
Organizations have to keep changing the design of a product in
order;
o To be Competitive
o Overall Increase Market Share
o To make business grow
o Alternative to Downsizing
o Product Redesign
o To achieve cost reduction
o To fulfill regulations
Trends in
Product and Service Design
Following are the recent trends in new product or services
design.
o Increased emphasis on customer experience
o Increased emphasis on reducing time needed to introduce new product
o Reducing time needed to produce a new product.
o Increased emphasis on organizational capabilities.
o Environmental Concerns (PEST or SCANNING TOPICS)
o User Friendly
Objectives of
Product and Service Design
o Expectations of Customers
o Cost within Budget
o Capabilities of Organization
Other Considerations in
Product and Service Design
o Strategies for Product/Service Life Cycle
o Degree of Standardization
o Mass Customization
o Robust Design
o Degree of Newness
o Human Factor
o Cultural Differences
Other Considerations in
Product and Service Design
o Strategies for Product/Service Life Cycle
Other Considerations in
Product and Service Design
o Strategies for Product/Service Life Cycle
o Degree of Standardization o Customization
 Made in Large Quantities  Unit Production
 Quickly Available  Each product takes time
 Interchangeable Parts  Unique Parts for each product
 Economies of Scale  No Cost Reduction per Unit
 Easy to train Employees  Higher level of skill required
Other Considerations in
Product and Service Design
o Strategies for Product/Service Life Cycle
o Degree of Standardization
o Mass Customization
Other Considerations in
Product and Service Design
o Strategies for Product/Service Life Cycle
o Degree of Standardization
o Mass Customization design approach that subdivides a system into smaller
 Modular Design parts called modules, that can be independently created
 Delayed Differentiation and then used in different systems

The process of producing, but not quite completing, a


product or service until customer preferences are known
Other Considerations in
Product and Service Design
o Strategies for Product/Service Life Cycle
o Degree of Standardization
o Mass Customization
o Robust Design
Taguchi methods
Other Considerations in
Product and Service Design
o Strategies for Product/Service Life Cycle
o Degree of Standardization
o Mass Customization
o Robust Design
o Degree of Newness
Other Considerations in
Product and Service Design
o Strategies for Product/Service Life Cycle
o Degree of Standardization
o Mass Customization
o Robust Design
o Degree of Newness
Type of Design Newness for Newness for the
Change Organization Market

Modification Low Low


Expansion Low Low
Clone High Low
New High High
Other Considerations in
Product and Service Design
o Strategies for Product/Service Life Cycle
o Degree of Standardization
o Mass Customization
o Robust Design
o Degree of Newness
o Human Factor
o Product Liability
o Consumer Safety
Other Considerations in
Product and Service Design
o Strategies for Product/Service Life Cycle
o Degree of Standardization
o Mass Customization
o Robust Design
o Degree of Newness
o Human Factor
o Cultural Differences
Other Considerations in
Product and Service Design
o Strategies for Product/Service Life Cycle
o Degree of Standardization
o Mass Customization
o Robust Design
o Degree of Newness
o Human Factor
o Cultural Differences
What is Designed?
in Products or Services
• A Concept: Understanding HOW a product will
fulfill customer need.
• A Package: Actual tangible product, or mixture of
services that are offered to customers for use.
• The Process: defines the way in which the
component products and services will be created
and delivered by the organization.
Phases in
Product Design & Development
1. Idea Generation Customer based.
Staff Based
2. Feasibility analysis Competitor Based
Research & Development Based
3. Product specifications
4. Process specifications
5. Prototype development
6. Design review
7. Market test
8. Product introduction
9. Follow-up evaluation
Phases in
Product Design & Development
1. Idea Generation
2. Feasibility analysis
3.Related
Product specifications
to “Objectives of Design”
4. ProcessExpectations
specifications- - - - - Market Feasibility
Cost - - - - - - - - - - - Economic Feasibility
5. Prototype development
Capabilities - - - - - - Technical Feasibility
6. Design review
7. Market test
8. Product introduction
9. Follow-up evaluation
Phases in
Product Design & Development
1. Idea Generation
2. Feasibility analysis
3. Product specifications - Size, Capacity, Speed, Material etc etc
4. Process specifications - How it will be Produced:
5. Prototype development - Degree of Standardization
Try & Experience ACTUAL PRODUCT
Customization
6. Design review - AUGMENTEDRobustness
PRODUCT design before test market
7. Market test QUALITY FUNCTION
ModularIS etc
MOSTetc IMPORTANT HERE

8. Product introduction
9. Follow-up evaluation
QUALITY FUNCTION DEPLOYMENT
It is also known as:
o House of quality’ (because of its shape)
o Voice of the Customer (because of its purpose).

The technique tries to capture what the customer


needs and how it might be achieved.
House of Quality
DESIGN FOR SERVICING
Three Stages of Designing a Service

1. Service Strategy: Determining the focus and nature


of the service, and the Target Market.

2. Customer Requirements: Customer Requirements


and expectations are determined at next stage.
Service designers use both of above to design service delivery system,

3. Service Delivery System: The facilities, processes and


skills needed to provide a service.
DESIGN FOR SERVICING
Three Stages of Designing a Service

1. Service Strategy: Determining the focus and nature


of the service, and the Target Market.

2. Customer Requirements: Customer Requirements


and expectations are determined at next stage.
Service designers use both of above to design service delivery system,

3. Service Delivery System: The facilities, processes and


skills needed to provide a service.
DESIGN FOR SERVICING
Two Important issue to Decide upon Service Design

1. Degree of Variability in Service Requirement

2. Degree of Customer Contact


DESIGN FOR SERVICING
Two Important issue to Decide upon Service Design
High Customized
Clothing

Degree of Variability/Flexibility
Purchase

Moderate Departmental
Store
Purchase

Low Telephone
Purchase

None ATM Machine


Service

None Low Moderate High

Degree of Contact with Customers


DESIGN FOR SERVICING
Two Important issue to Decide upon Service Design
High Customized
Clothing

Degree of Variability/Flexibility
Purchase

Moderate Departmental
Store
Purchase

Low Telephone
Purchase

None ATM Machine


Service

None Low Moderate High

Degree of Contact with Customers