WHAT DOES PRODUCT AND SERVICE DESIGN DO?
– Primary focus should be on customer
satisfaction
1. Translate customer wants and needs into product
and service requirements (marketing, operations)
2. Refine existing products and services (marketing)
3. Develop new products and/or services (marketing,
operations)
4. Formulate quality goals (marketing, operations)
5. Formulate cost targets (accounting, finance,
operations)
6. Construct and test prototypes (operation,
marketing, engineering)
7. Document specification
8. Translate product and service specifications into
process specifications (engineering, operations)
OBJECTIVES OF PRODUCT AND SERVICE DESIGN
– Customer satisfaction (Primary consideration)
– Cost or profit, quality, ability to produce a
product or provide a service, ethics/safety,
and sustainability (Secondary considerations)
KEY QUESTIONS
1. Is there a demand for it? What is the potential size
of the market, and what is the expected demand
profile.
2. Can we do it? Do we have the necessary
knowledge, skills, equipment, capacity, and supply
chain capability?
3. What level of quality is appropriate? What do
customers expect?
4. Does it make sense from an economic
standpoint? What are the potential liability issues,
ethical considerations, sustainability issues, costs
and profit
REASONS FOR PRODUCT AND SERVICE DESIGN OR
REDESIGN
1. ECONOMIC (low demand, excessive warranty
claims, the need to reduce costs)
2. SOCIAL AND DEMOGRAPHIC (aging baby
boomers, population shifts)
3. POLITICAL, LIABILITY, OR LEGAL (government
changes, safety issues, new regulations)
4. COMPETITIVE (new or change products or
services, new advertising/promotions)
5. COST OR AVIALBILTY (raw materials, components,
labor, water, energy)
6. TECHNOLOGICAL (in product components,
process)
TECHNOLOGY
– Can also indirectly affect product and service
design
– Advance in processing technology may require
altering an existing design to make it
compatible with the new processing
technology
– Illustrated by digital recording technology that
allows television viewers to skip commercials
when they view a recorded program.
REVERSE ENGINEERING
– Dismantling and inspecting a competitor’s
product to discover product improvements
– Some forms of reverse engineering are illegal
under the Digital Millennium Copyright Act.
RESEARCH AND DEVELOPMENT (R&D)
– Organized efforts to increase scientific
knowledge or product innovation
R&D MAY INVOLVE:
1. Basic research
– Objective of advancing the state of knowledge
about a subject, without any near-term
expectations of commercial application
– Does not lead to near-term commercial
application, is generally underwritten by the
government and large corporations
2. Applied research
– Has the objective of achieving commercial
applications.
– Because of the potential for commercial
application, appeals to a wide spectrum of
business organization, same with
development.
3. Development
– Converts the results of applied research into
useful commercial applications
The benefits of successful R&D can be tremendous.
The cost of R&D can be high.
Some companies are now shifting from a focus primarily
on products to a more balanced approach that explore
both product and process R&D. ‘