Designing Products and ServicesBy: Rochelle G. Abanilla

Product - is anything that can be offered to market for attention, acquisition, use or consumption that might satisfy a wand or need.

Service - any activity or benefits that one party can offer to another that is essentially intangible and does not result in the ownership of anything.

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

Reasons for Product or Service Design

Be competitive

Increase business growth & profits

Avoid downsizing with development of new products

Improve product quality

Achieve cost reductions in labor or materials

InternalEmployeesMarketing departmentR&D department

ExternalCustomers SuppliersCompetitors

Sources of Ideas for Products and Services

Reverse engineering – dismantling and inspecting of a competitor’s product to discover product improvements

Example: Taurus model of Ford Motor Company

LegalFDA, OSHA, IRS = BFAD, DOH, DENR

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

EthicalReleasing products with defects

EnvironmentalDon’t design something that can harm the environment.

OTHER ISSUES IN PRODUCTS AND SERVICE DESIGN

Product or Service Life Cycle

Standardization

Reliability

Robust design

Life Cycles of Products or Services

Time

Incubation

Growth

Maturity

Saturation

Decline

Dem

and

Standardization

refers to the extent to which there is absence of variety in a product, service, or process.

Advantages of Standardization

Fewer parts to deal with in inventory & manufacturing

Reduced training costs and time

More routine purchasing, handling, and inspection procedures

Advantages of Standardization (Cont’d)

Orders fillable from inventory

Opportunities for long production runs and automation

Need for fewer parts justifies increased expenditures on perfecting designs and improving quality control procedures.

Disadvantages of Standardization

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.

Mass customization – a strategy of producing standardized goods or services, but incorporating some degree of customizationDelayed differentiation – a postponement tactic Modular design – a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged

Designing For Mass Customization

Examples of Modular Design for LCD Display Enclosures

Reliability

Reliability - the ability of a product, part, or system to perform its intended function under a prescribed set of conditions

Failure - Situation in which a product, part, or system does not perform as intended

Normal operating conditions - The set of conditions under which an item’s reliability is specified

Improving Reliability

• Component design

• Production/assembly techniques

• Testing

• Redundancy/backup

• Preventive maintenance procedures

• User education

• System design

Design that results in products or services that can function over a broad range of conditions

Robust Design

Taguchi Approach Robust Design

Genichi Taguchi’s (Japanese engineer) design a robust product which is insensitive to environmental factors either in manufacturing or in use.

Central feature is Parameter Design.

Designing for Manufacturing

Concurrent Engineering

The bringing together of engineering design and manufacturing personnel early in the design phase.

Advantages of Concurrent Engineering

Manufacturing personnel are able to identify production capabilities and capacities.

Early opportunities for design or procurement of critical tooling, some of which might have long lead times.

Early consideration of the technical feasibility of a particular design or a portion design.

Emphasis can be on problem resolution instead of conflict resolution.

Disadvantages of Concurrent Engineering

Longstanding existing boundaries between design and manufacturing can be difficult to overcome.

There must be extra communication and flexibility if the process is to work, and these can be difficult to achieve

“Over the Wall” Approach

DesignMfg

New Product

Computer-Aided Design

Computer-Aided Design (CAD) is product design using computer graphics.

increases productivity of designers, 3 to 10 times

creates a database for manufacturing information on product specifications

provides possibility of engineering and cost analysis on proposed designs

design for manufacturing and assembly (DFMA) software – one extension of CAD which focuses on the effect of design on assembly.

3-D object modeling – second CAD extension particularly used for small prototype development.

Computer-Aided Manufacturing (CAM)

refers to the use of specialized computer programs to direct and control manufacturing equipment.

Benefits of CAD and CAM

Product quality

Shorter design time

Production cost reduction

Database availability

New range of capabilities

Production Requirements

Manufacturability is the ease of fabrication and/or assembly which is important for cost, productivity and quality.Forecast of future demand can be useful, supplying information on the timing and volume of demand, and information on demands for new products and services.

Design for manufacturing (DFM) – used to indicate the designing of products that are compatible with an organization’s capabilities

Design for assembly (DFA) – design focuses on reducing the number of parts in a product and on assembly methods and sequence.

refers to recovering materials for future use

Recycling reasons:Cost savings

Environment concerns

Environment regulations

Recycling

Examples : Light bulb hanging vases

design for recycling (DFR) – refers to product design that takes into account the ability to disassemble a used product to recover the recyclable parts

REMANUFACTURING

design for disassembly (DFD) which includes using fewer parts and less material, using snap–fits where possible instead of screws or nuts and bolts.

DESIGNING FOR SERVICES

Two issues in service design

Degree of variation in service requirements

Degree of customer contact and customer involvement in the delivery system.

Service Variability & Customer Influence Service Design

Variabilityin

ServiceRequire-

ments

Degree of Contact with Customer

High

Moderate

Low

None

None Low Moderate High

TelephonePurchase

Dept. StorePurchase

CustomizedClothing

InternetPurchase

Tangible – intangibleServices created and delivered at the same timeServices cannot be inventoriedServices highly visible to customersServices have low barrier to entryLocation important to service

Differences Between Product and Service Design

Service Design Guidelines

Have single, unifying theme, such as convenience and speed.Make sure the system has the capacity to handle any expected variability in service requirements.Include design features and checks to ensure that service will be reliable and will provide consistently high quality.Design the system to be user-friendly.

Quality Function DeploymentVoice of the customer

House of quality

Quality Function Deployment

QFD: An approach that integrates the “voice of the customer” into the product and service development process.

The House of Quality

Correlation matrix

Designrequirements

Customerrequire-ments

Competitiveassessment

Relationshipmatrix

Specificationsor

target values

Steps in building house of quality

Identity customer wants. Identify how the good/service will satisfy customer wants.Relate customer wants to product hows.Identify relationship between the firm’s hows.Develop importance rating.Evaluate competing products.Determine the desirable technical attributes, your performance, and the competitor’s performance against these attributes.

Customer Requirements

Importance to Cust.Easy to close

Stays open on a hill

Easy to open

Doesn’t leak in rain

No road noise

Importance weighting

Engineering Characteristics

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10 6 6 9 2 3

7

5

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X

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Correlation:Strong positivePositiveNegativeStrong negative

X*Competitive evaluation

X = UsA = Comp. AB = Comp. B(5 is best)

1 2 3 4 5

X AB

X AB

XAB

A X B

X A B

Relationships:Strong = 9Medium = 3Small = 1Target values

Red

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Red

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Technical evaluation(5 is best)

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House of Quality Example

Kano Model

Customer Needs

Cu

sto

mer

Sat

isfa

ctio

n

Excitement

Expected

Must Have

Kano Model

Customer Needs

Cu

sto

mer

Sat

isfa

ctio

n

Excitement

Expected

Must Have

The Kano Model

Shorten time-to-marketPackage products and servicesIncrease emphasis on component commonalityUse multiple-use platformsConsider tactics for mass customizationLook for continual improvement

Operations Strategy