PRODUCT AND

SERVICE DESIGN
 Translate customer wants and needs
1 into product and service requirements

Product or
Service Design Refine existing products and services
2
Activities

3 Develop new products and services

 Formulate quality goals
4

Formulate cost targets

5

Construct and test prototypes

6
 Low demand, excessive warranty claims,
Economic need to reduce costs

Social and Aging populations, population shifts

demographic
Reasons for
Product or technological Product components, processes

Service Design
Raw materials, components, labor,
Cost/ availability
water, energy

New or changed products and

Competitive services
Technological
Changes
Design Considerations
- Legal Issues

 Product Liability - A manufacturer

is liable for any injuries or damages
caused by a faulty product.
  Designers are often under pressure to:

Speed up the design process

Cut costs
Design Considerations
- Ethics These pressures force trade-off decisions:
What if a product has bugs?

Release the product and risk damage to

your reputation

Work out the bugs and forego revenue

Design Considerations –
Environmental issues
DESIGNERS SHALL DESIGN PRODUCTS THAT:

 are safe to use

do not pollute the earth or harm the

environment in any way

do not destroy wildlife habitats

do not waste finite resources.

 Designers Adhere to Guidelines

Produce designs that are consistent with

the goals of the company
3

Give customers the value they

expect
2

Make health and safety a primary

concern and Consider potential harm 1
to the environment
Design Considerations –
Human Factors

Safety and Liability

Adding new features

Good? Bad?
Design Considerations –
Cultural Factors
Customers come from all over the
world.

Different designs for different

countries or regions.

Language

Localization
 Sustainability
Using resources in ways that do not harm ecological
systems that support human existence
 Life-Cycle
Assessment (LCA) The assessment of the environmental impact of a
product or service throughout its useful life. Focuses
on such factors as:
 Global warming
 Smog formation
 Oxygen depletion
 Solid waste generation
Reduce: Value Examination of the function of parts and materials in
Analysis an effort to reduce the cost and/or improve the
performance of a product.
 Are there alternative sources for the item?
 Could a cheaper material, part, or service be used
instead?
 Can specifications be less stringent to save time
or money?
 Can packaging be improved or made less costly?
 Re-Use: Refurbishing used products by replacing worn-out or

Remanufacturing defective components. Can be performed by the

original manufacturer or another company.
 Remanufactured products can be sold for about
50% of the cost of a new product
 The process requires mostly unskilled and semi-
skilled workers
 Fewer products in landfills
Recycle Recovering materials for future use.
Why recycle?
 Cost savings
 Environmental concerns
 Environmental regulations
 Other Design Considerations Product/Service
Life-Stages

Discontinue?
high cost,
Replace? Find
low
new uses
demand,
possibly
quality
issues,
getting first
into the
market lower cost, low cost, high productivity, few
increased design changes are needed ,
demand, new competitors, sales are
slowly decreasing
 Advantages & Disadvantages of
Standardization
Advantages
1. Fewer parts to deal with in inventory and in manufacturing
2. Reduced training costs and time
3. More routine purchasing, handling, and inspection procedures

Disadvantages
1. Decreased variety results in less consumer appeal
2. Lack of adaptation
 Designing for Mass Customization
• Mass customization
– A strategy of producing basically standardized goods or
services, but incorporating some degree of customization
in the final product or service
– Facilitating Techniques
• Delayed differentiation
• Modular design
 Delayed Differentiation
• Delayed Differentiation
– The process of producing, but not quite completing, a
product or service until customer preferences are known
– It is a postponement tactic
• Produce a piece of furniture, but do not stain it; the customer chooses the
stain
 Modular Design
• Modular Design
– A form of standardization in which component parts are grouped into modules
that are easily replaced or interchanged
• Advantages
– easier diagnosis and remedy of failures
– easier repair and replacement
– training costs are relatively low
• Disadvantages
– Limited number of possible product configurations
 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
• System design
 Robust Design
• Robust design
– A design that results in products or services that can
function over a broad range of conditions
• The more robust a product or service, the less likely it will fail
due to a change in the environment in which it is used or in
which it is performed
– Pertains to product as well as process design
 Phases in Products Design & Development
1. Feasibility analysis
– Demand, development and production cost, potential profit, technical analysis, capacity req., skills
needed, fit with mission.
2. Product specifications
– What’s needed to meet customer wants
3. Process specifications
– Weigh alternative processes in terms of cost, resources, profit, quality
4. Prototype development
– Few units are made to find problems with the product or process
5. Design review
– Changes are made or project is abandoned
6. Market test
– Determine customer acceptance. If unsuccessful return to Design-review.
7. Product introduction
– promotion
8. Follow-up evaluation
– Based on feedback changes may be made.
 Idea Generation
Supply-Chain Based
• Ideas can come from anywhere in the supply chain:
– Customers
• Surveys, focus groups, complaints, suggestions
– Suppliers
– Distributors
– Employees
 Idea Generation
Competitor-Based
• Studying how a competitor operates and its
products and services

• Reverse engineering
– Dismantling and inspecting a competitor’s product to
discover product improvements
 Idea Generation
Research Based
• Research and Development (R&D)
– Organized efforts to increase scientific knowledge or
product innovation