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Product and Service Design

Report on Strategic Operations Management. Reference: Operations Management by Stevenson
by

Jemaica Sanota

on 10 January 2013

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Transcript of Product and Service Design

Group 1 Product and Service Design What does Product and Service design Do? Service Design -in certain cases, product design and service design go hand in hand.

-In some cases what a customer receives is a pure service. 1. Translate customer wants and needs into product and service requirements. (marketing)

2. Refine existing products and services. (marketing)

3. Develop new products and/or services. (marketing, operations)

4. Formulate quality goals. (quality assurance, operations)

5. Formulate cost target. (accounting)

6. Construct and test prototypes. (marketing, operations)

7. Document specifications. Activities and responsibilities of product and design: Objective of Product and Service Design – to satisfy the customer while making a reasonable profit. Design for operations Taking into account the capabilities of the organization in designing goods and services. Manufacturability The ease of fabrication and/or assembly. Sources of Ideas for New or Redesigned Products and Services 1. Employees
2. Customers
3. Competitors
4. Suppliers Research and Development Organized efforts to increase specific 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 and applied research into useful commercial applications. Legal, Ethical, and Environmental Guidelines: Produce designs that are consistent with the goals of the organization.
Give customers the value they expect.
Make health and safety a primary concern.
Design must not harm the environment. -a manufacturer is liable for any injuries for any injuries or damages caused by a faulty product Product Liability Uniform Commercial Code – Products carry an application of merchantability and fitness Other Issues in Product and Service Design Take into account product or service life cycles.
How much standardization to incorporate.
Product or service reliability.
The range of operating conditions under which a product or service must function. Life Cycle Incubation
Not familiar
Expectation of price drops
Growth
Reliable
Affordable
Increased awareness
Maturity
Few design changes
Saturation
Decline Standardization Extent to which there is absence of variety in a product, service or process. Standardized products mean interchangeable parts. Advantages Fewer parts to deal with in inventory and in manufacturing.
Reduced training cost and time.
More routine purchasing, handling, and inspection procedures.
Orders fillable from inventory.
Opportunities for long production runs and automation.
Need for fewer parts justifies increased expenditures on perfecting designs and improving. Disadvantages 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. Designing for Mass Customization Producing basically standardized goods, but incorporating some degree of customization 1. Delayed differentiation – Producing, but not quite completing, a product or service until customer preferences are known.

2. Modular design – A form of standardization in which component parts are grouped into modules that are easily replaced or interchangeable. Reliability The ability of a product, part, or system to perform its intended function under a prescribed set of conditions. Normal Operating Conditions. The set of conditions under which an item’s reliability is specified Improving Reliability Improve component design
Improve production and/or assembly techniques
Improve testing
Use backups
Improve preventive maintenance procedures
Improve user education
Improve system design Robust Design Design that results in products or services that can function over a broad range of conditions Designing for Manufacturing Bringing engineering design and manufacturing together early in the design phase. 1.Concurrent Engineering 2.Computer Aided Design (CAD) Product design using computer graphics. 3.Production Requirements Design needs to clearly understand the capabilities design for manufacturing (DFM)
Designers take into account the organization’s capabilities when designing a product
design for assembly (DFA)
Design focuses on reducing the number of parts in a product and on assembly methods and sequence 4.Recycling Recovering materials for future use.

Companies recycle to:
1.Cost savings
2.Environment concerns
3.Environment regulations design for recycling (DFR)
Design facilitates the recovery of materials and components in used products for reuse. 5.Remanufacturing Refurbishing used products by replacing worn-out or defective components design for disassembly (DFD)
Design so that used products can be easily taken apart. 6.Component Commonality Products or services that have a high degree of similarity of features and components. Differences between Service Design and Product Design 1.Products are generally tangible; services are generally 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 2 Key Issues in Service Design 1.Degree of variation in service requirements
2.Degree of customer contact and customer involvement Design Guidelines 1.Have a single unifying theme, such as convenience or speed
2.Make sure the system has the capability to handle any expected variability in service requirements.
3.Include design features and checks to ensure that service will be reliable and will provide high quality
4.Design the system to user-friendly Service Blueprint - a method used in service design to describe and analyze a proposed service Quality Function Deployment - an approach that integrates the “voice of the customer” into the product development process
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