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. ‘
LEGAL AND ETHICAL CONSIDERATIONS
Designers must be careful to take into account
a wide array of legal and ethical
considerations.
They are mandatory
PRODUCT LIABILITY
The responsibility of a manufacturer for any
injuries or damages caused by a faulty
product.
UNIFORM COMMERCIAL CODE
A product must be suitable for its intended
purpose
Carry an implication of merchantability and
fitness
IMPORTANCE
Increasing customer awareness of product
safety cam adversely affect product image and
subsequent demand for a product
It is extremely important to design products
that are reasonably free of hazards
When hazard exist, it is necessary to install
Often arise in the design of consumer products
Safety and liability are two critical issues and
they must be carefully considered
Another issue in designers is adding new
feature to their products or services.
It can sometimes be “too much of a good
thing” and be a source of customer
dissatisfaction
Creeping featurism is particularly evident in
electronic products such as a handheld device
that continue to offer new features, and more
complexity, even while they are shrinking in
size
May result in low consumer ratings in terms of
“ease of use”
CULTURAL FACTORS
Must take into account any cultural
differences of different countries or regions
related to the product
Can result in different designs for different
countries or regions
GLOBAL PRODUCT AND SERVICE DESIGN
Can provide design outcomes that increase