Chapter 4 Product and Service Design

1. Chapter 4Product and Service Design Spice Giant McCormick Demand for traditional spices going down

2. Product and Service Design Organization’s strategy

3. Translate customer wants and needs into product and service requirements Refine existing products and services Develop new products and services Formulate quality goals Formulate cost targets Construct and test prototypes Document specifications Product or Service Design Activities

4. Objectives of P/S Design • Designing For Operations • Capabilities? • Productivity, quality, costs!

5. Product Liability - A manufacturer is liable for any injuries or damages caused by a faulty product. Uniform Commercial Code - Products carry an implication of merchantability and fitness. Legal, Ethical, and Environmental Issues

6. Other Issues in P/S Design

7. Saturation Maturity Decline Demand Growth Introduction Time Figure 4.1 Life Cycles of Products or Services

8. Standardization- an absence of variety

9. Mass customization A strategy of producing standardized goods or services, but incorporating some degree of customization • Delayed differentiation • Modular design

10. Reliability • The ability of a product, part, or system to perform its intended function under a prescribed set of conditions

11. Improving Reliability • Component design • Production/assembly techniques • Testing • Redundancy/backup • Preventive maintenance procedures • User education • System design

12. Robust Design • Design that results in products or services that can function over a broad range of conditions

13. Degree of Design Change Table 4.3

14. Multinational companies must take into account cultural differences related to the product design. Notable failures: International House of Pancakes- IHOP in Bangladesh Ikea beds in U.S. Cultural Differences

15. Uses combined efforts of a team of designers working in different countries Provides a range of comparative advantages over traditional teams such as: Engaging the best human resources around the world Possibly operating on a 24-hr basis Global customer needs assessment Global design can increase marketability Global Product Design- Virtual teams RMG

16. Phases in Product Development Process

18. Research & Development (R&D) • Organized efforts to increase scientific knowledge or product innovation & may involve: • Basic Research advances knowledge about a subject without near-term expectations of commercial applications. • Applied Research achieves commercial applications. • Development converts results of applied research into commercial applications.

19. Manufacturability is the ease of fabrication and/or assembly which is important for: Cost Productivity Quality Manufacturability

21. Design for manufacturing (DFM) Design for assembly (DFA) Design for recycling (DFR) Remanufacturing Design for disassembly (DFD) Product design consideration

23. Multiple products or product families that have a high degree of similarity can share components Automakers using internal parts Engines and transmissions Water pumps Etc. Other benefits Reduced training for assemble and installation Reduced repair time and costs Component Commonality

25. Correlation matrix Design requirements Customer require- ments Relationship matrix Competitive assessment Specifications or target values The House of Quality • Quality Function Deployment • Voice of the customer • House of quality QFD: An approach that integrates the “voice of the customer” into the product and service development process.

26. Correlation: Strong positive X Positive X X Negative X X X Strong negative * Engineering Characteristics Competitive evaluation Energy needed to close door Check force on level ground Energy needed to open door Accoust. Trans. Window Door seal resistance Water resistance X = Us A = Comp. A Importance to Cust. B = Comp. B Customer Requirements (5 is best) 1 2 3 4 5 AB X Easy to close 7 X AB Stays open on a hill 5 Easy to open 3 XAB A X B Doesn’t leak in rain 3 27 63 63 45 27 6 No road noise 2 X A B Importance weighting Relationships: Strong = 9 Medium = 3 Reduce energy level to 7.5 ft/lb Reduce energy to 7.5 ft/lb. Target values Reduce force to 9 lb. Maintain current level Maintain current level Maintain current level Small = 1 5 BA BA B B BXA X Technical evaluation (5 is best) B 4 X A X A 3 A X 2 X 1 Figure 4.4

27. The Kano Model of Customer Satisfaction • Classifies product attributes based on how they are perceived by customers and their effect on customer satisfaction. • Useful for guiding design decisions • When good is good enough, and when more is better.

28. The Kano Model A competitive product meets basic attributes, maximizes performances attributes, and includes as many “excitement” attributes as possible at a cost the market can bear. high customer satisfaction no dissatisfaction * Cup Holders customer satisfaction * fuel economy Must haves- no product differentiation

29. Service Design

30. Service design involves The physical resources needed The goods that are purchased or consumed by the customer Explicit services Implicit services Service Design

31. Differences Between Product and Service Design • Tangible – intangible • Services created and delivered at the same time • Services cannot be inventoried • Services highly visible to customers • Services have low barrier to entry • Location important to service • Range of service systems • Demand variability Ch- 1

32. Service systems range from those with little or no customer contact to very high degree of customer contact such as: Insulated technical core (software development) Production line (automatic car wash) Personalized service (hair cut, medical service) Consumer participation (diet program) Self service (supermarket) Service Systems

33. Demand variability creates waiting lines and idle service resources Service design perspectives: Cost and efficiency perspective Customer perspective Customer participation makes quality and demand variability hard to manage Attempts to achieve high efficiency may depersonalize service and change customer’s perception of quality Service Demand Variability

34. Phases in Service Design

35. Overnight Hotel Stay Bill Desk Lobby Hotel Exterior Parking Hotel Exterior Parking Cart for Bags Desk Registration Papers Lobby Key Elevators Hallways Room Cart for Bags Room Amenities Bath Menu Delivery Tray Food Appearance Food PHYSICAL EVIDENCE Arrive at Hotel Give Bags to Bellperson Call Room Service Check out and Leave CUSTOMER Receive Bags Sleep Shower Go to Room Receive Food Eat Check in Greet and Take Bags Deliver Bags Deliver Food Process Registration Process Check Out (On Stage) CONTACT PERSON Take Food Order (Back Stage) Take Bags to Room Registration System Registration System Prepare Food SUPPORT PROCESS

36. Service blueprinting A method used in service design to describe and analyze a proposed service A useful tool for conceptualizing a service delivery system Service Blueprinting Step 6 Add evidence of service at each customer action step. Step 4 Map contact employee actions, onstage and back-stage. Step 3 Map the process from the customer’s point of view. Step 1 Identify the process to be blue-printed. Step 2 Identify the customer or customer segment. Step 5 Link customer and contact person activities to needed support functions.

37. Evidence Client Steps On Stage Journey Energy Provider Steps Energy Provider Steps • How will my energy meter help me use energy more efficiently? • Receiving a home metering device to measure personal energy consumption • Basic customer steps and backstage activities are mapped out Back Stage Processes Backend Applications

38. Evidence New Energy meter arrives Energy consumption visualized Reduced usage Conduct normal appliance usage Gee – how would consumption differ if I selected “light” load for my dishwasher? On Stage Journey Read meter Run appliance again Client Steps Follow meter instructions Read meter Energy Provider Steps Install Meter, give client instruction package Energy Provider Steps Back Stage Processes Push feedback of use to meter in home Push feedback of use to meter in home Backend Applications Add readout to data base for future analytics

39. Characteristics of a good Service Systems • Consistent with the organization mission • User friendly • Robust • Easy to sustain • Cost effective • Value to customers • Effective linkages between back operations • Single unifying theme • Ensure reliability and high quality

40. Guidelines for Successful Service Design

41. Increase emphasis on component commonality Package products and services Use multiple-use platforms Consider tactics for mass customization Look for continual improvement Shorten time to market Operations Strategy

43. Explain the strategic importance of product and service design. List some key reasons for design or redesign. Identify the main objectives of product and service design. Discuss the importance of standardization. Discuss the importance of legal, ethical, and environmental issues in product and service design. Learning Objectives

44. Briefly describe the phases in product design and development. Describe some of the main sources of design ideas. Name several key issues in manufacturing design. Name several key issues in service design. Name the phases in service design. List the characteristics of well-designed service systems. Name some of the challenges of service design. Learning Objectives