Management

Design of Goods and

Services

Product and Service Design

1
Management

Design of Goods and

Services

Product and Service Design

1
 Strategic Product and
Service Design

The essence of an organisation is

the goods and services it offers

Every aspect of the organisation is

structured around them

Product and service design or

redesign should be closely tied to
an organisations strategy
6
Humour in Product Design
As the customer wanted it As Marketing
interpreted it

As Operations made it As Engineering

designed it

7
Product Design Strategies

Sell what the Sell only what

market wants we can make
Design a product Design products
according according
to market needs and to the limits of our
then, processes and then, find
try to adapt our a market
processes

Find the right balance : a simultaneous evolution of

products and processes, taking into account the needs
of the market AND our distinctive competencies.
Reasons for product and service
design
Economic
Social and demographic
Political and legal
Competitive Advantage
Cost or Availability
Technological
Product Life cycle

9
 Key Questions
1. Is there a demand for it?
Market size
Demand profile
2. 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

10
 Key Questions
3. What level of quality is appropriate?
Customer expectations
Competitor quality
Fit with current offering
4. Does it make sense from an
economic standpoint?
Liability issues, ethical considerations,
sustainability issues, costs and profits

11
 Sustainability
Sustainability
Using resources in ways that do not harm
ecological systems that support human
existence
Key aspects of designing for sustainability
Cradle-to-grave assessment (Life-Cycle
assessment)
End-of-life programs
The 3-Rs
Reduction of costs and materials used
Re-using parts of returned products
Recycling

12
 Product Development System

Ideas

Ability

Customer Requirements

Functional Specifications

Scope of Product Specifications Scope for

product design and
Design Review
development engineering
team Test Market teams

Introduction

Evaluation
13
Quality Function Deployment
Determines what will satisfy the
customer
Translates those desires into specific
product characteristics
Product design process using cross-
functional teams
Marketing, engineering, manufacturing
House of quality tool used

18
House of Quality Tool
Identify customer expectations
Identify how the good/service will satisfy these
wants
Relate customer wants to product hows
Identify relationship between firms hows
Develop importance ratings
Evaluate competing products
Determine the desirable technical attributes,
your performance, and the competitors
performance against these attributes

19
QFD, House of Quality
Interrelationships
Customer
importance How to satisfy
ratings customer wants

Competitive
assessment
What the Relationship
customer matrix
wants

Target values Weighted

rating
Technical
evaluation
House of Quality Low cost Sports
Watch

21
 Manufacturability and
Value Engineering
Systemic and organized approach to provide
necessary function to reduce cost.
Help improve product design, production, maintainability &
use
Benefits:
reduced complexity of products
additional standardization of products
improved functional aspects of product
improved job design and job safety
improved maintainability of the product
Best cost-avoidance technique
Focus on achieving functional specs in the most optimal
manner

22
Issues for Product Development
Robust design
Modular design
Computer-aided design Design For
Manufacture and Assembly (DFMA);
3D object modelling
Computer-aided manufacturing
Virtual Reality Technology
Value analysis

23
 Time-based Competition
Product life cycles are becoming
shorter.
Faster developers of new products gain
on slower developers and obtain a
competitive advantage
Can become a standard to be followed
May not be optimum design or efficient
process but high price can justify that
Need not necessarily start from scratch
35
 Product Development
Continuum
External Development Strategies
Alliances
Joint Ventures
Purchase Technology or Expertise by Acquiring the
Developer
Internal Development Strategies
Migrations of Existing Products
Enhancement to Existing Products
New Internally Developed Products
Internal ----------------Cost of Product Development-------------------------Shared
Lengthy ---------------Speed of Product Development-----Rapid and/or Existing
High --------------------- Risk of Product Development ------------------------Shared

36
 Service Design

Service
Something that is done to, or for, a customer
Service delivery system
The facilities, processes, and skills needed to
provide a service
Product bundle
The combination of goods and services
provided to a customer
Service package
The physical resources needed to perform the
service, accompanying goods, and the explicit
(core features) and implicit (ancillary features)
services included
37
Service Design Service
blueprint

38
 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 variation in service requirement

Degree of customer contact and involvement

39
Well Designed Service
characteristics

Consistent
User friendly
Robust
Easy to sustain
Cost effective
Value perceived by customer
Mostly with single theme
Reliable

40