Product Design and Development

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Product Specifications

and Quality Strategy


PRODUCT DIMENSIONS

Potential
Product
All possibilities Increased
of improvement Additional differentiators
Product
Installation Exceeded
After Packing expectations
Sales Service
Real Product
Quality

Benefit

Style
Materialize benefits
or
Minimum expectations
Basic Services
Delivery
and
Credit Brand Central Product
Basic needs
Warranty and infrastructure
Axis of Positioning
Enthusiasm, identification and values
THE SERVICE

Finally is the process of provision a service.

To provide a service we must consider the factors that


influence in the service experience.

Inanimate
context
Organization
and invisible
systems
Staff Contact
or service providers

Invisible Part Visible part to the consumer


PRODUCT STRATEGIES

COMPETITIVE PRODUCT STRATEGY


MUST INDICATE WHICH IS THE KEY FUNCTIONAL BENEFIT OR
CENTRAL BENEFIT WHERE THE PRODUCT MUST DENOTE
SUPERIORITY VERSUS THE PERFORMANCE OF ITS
COMPETITORS.

THIS KEY BENEFIT MUST BE THE SAME AS STATED IN THE


CONCEPT AND IN THE POSITIONING STRATEGY.

IT ALSO HAVE TO INDICATE IN WHAT OTHER CHARACTERISTICS


IT HAVE TO BE IN COMPETITIVE PARITY IN ORDER TO LEAD THE
PRODUCT QUALITY PARAMETERS THAT PRODUCTION
MUST DELIVER.
PRODUCT STRATEGY
(Example – Oily hair shampoo)

MAINTEIN, FORMULATION AND CURRENT


QUALITY. MUST WIN IN THE KEY BENEFIT:
"DEGREASE“ WITHOUT NEGATIVE VALUE
IN ANY VALUE ATTRIBUTES: ODOR, BRIGHT AND
SILKY. KEEP MODERNISED PRODUCT PACKAGE
AND LABEL CONNOTING “NATURAL"
PRODUCT DESIGN PROCESS TO CREATE VALUE

BRAND
PRODUCT/SERVICE CUSTOMER

PERSONAL
CHARACTERISTICS AND PROFESSIONAL SATISFACTION
SITUATION

REAL
HYPOTHETICAL NEEDS AND/OR
ADVANTAGES MOTIVATORS ADVANTAGE
BENEFITS
CONVERT CHARACTERISTICS INTO BENEFITS

CHARACTERISTICS HYPOTHETICAL BENEFIT – REAL


ADVANTAGES ADVANTAGE
DESCRIBE THE APPLICATION OF THE CUSTOMER VALUE
PRODUCT CHARACTERISTIC USEFULNESS OR
THEY ARE THE WHY DOES IT SERVE? MEANING
ATTRIBUTES FUNCIONALIDAD WHY IS HELPFUL?

What is it? Why does it serve? Why is helpful?


How is it? What benefit does it
provide?
SELLING PRODUCT BENEFITS
Example: A marker

CHARACTERISTICS HYPOTHETICAL ADVANTAGES BENEFIT – REAL ADVANTAGE

Paints 10 km Long duration Performance, durable and


economic
Cap cover Cap covers hermetically It doesn't stain the clothes

Ink Blue, Black, Red Colors that stand out, visibility Facilitates written
and Green communication (sharpness)
Round point User clearly informed Facilitates view from any angle

Cylindrical Allows fine and broad outlines Comfortable use

10 cm size Easy grip Comfortable to carry and save


Do not occupy space

Polyethylene Unbreakable and resistant Long lasting and economical

Weight 50 grams Easy to load Comfortable to carry

Sealed No spills Safety use. Avoid stains


Save laundry expenses
THE SERVICE COMPLEXITY

SERVICES ARE IDENTIFIABLE AND INTANGIBLE ACTIVITIES


THAT ARE THE MAIN PURPOSE OF A TRANSACTION WHOSE
OBJECTIVE IS TO SATISFY NEEDS IN AN EFFICIENT WAY.

CHARACTERISTICS:
• INTANGIBLE
• INSEPARABLE OF THE SELLER
• HETEROGENEOUS
• VERY PERISHABLE
• FLOATING DEMAND

SUPPORTING SERVICES FACILITATE THE SALE OF GOODS


OR OTHER SERVICES
Servuction - PRODUCTION OF SERVICES

The process of creating a service (Eiglier and Landgeard).

• Arises because the term Production is associated with


Tangible Goods.

• It is a customer-company system

• The interaction of all physical and human elements that


occur is the production of a service.

• The service is the integrator element of the system


Manufacturing system of a Tangible Good
Manufacturing system of a Service

• People Implies:
Servuction integrates • Product • Participation
• Technology • Impact
• Activities • Evaluation
Production of the Service and Relationship with the Elements

Customer A
Physical
System Support
Customer B

Organization

Service A

Internal
Contact
Staff
Service B

Methodological analysis of the relationships :

• Primary and Internal Relations of A: 5 + 3

• Primary and Internal Relations of B: 5 + 3

• Concomitant relation of A and B: 4 ----------------


IN THE SERVICES IT IS NECESSARY…

1. Consolidate in the staff a strong orientation to the


customers (not just to "inside" of the company).

2. Integrate to the personnel with the objectives of the


customers (not just the company).

3. Achieve things by way of persuasion, not through the


imposition.

In consequence: it is necessary to "sell" to the personnel a


culture of managing orientated to the customer
satisfaction
THE 5 SERVICE QUALITY GAPS
(SERVQUAL)

1. DOES NOT KNOW THE CUSTOMEES EXPECTATIONS AND NEEDS.


2. PRODUCT ESPECIFICATIONS OF DESIGN DOES NOT SATISFIED
CUSTOMERS EXPECTATIONS AND NEEDS.
3. SERVICE DELIVERY LEVEL DO NOT COMPLY THE ACCORDING
ESPECIFICATIONS.
4. SERVICE DELIVERY DIFFERS TO WHAT HAVE BEEN PROMISE OR
COMMUNICATE.
5. SERVICE EXPERIENCE DO NOT SATISSFIES THE EXPECTATIVES OF THE
CUSTOMERS.
5 GAPS OF SERVICE QUALITY
MODEL(SERVQUAL)
COMMUNICATION NEEDS
EXPERIENCES
Word of mouth
Expected Service

5
Difference between lived and expected
experience (I hope that they heal me and only
gave me a pill).

Perceived Service
Difference between delivered and communicated
experience (I was told it would be faster)

1 Service Delivery 4 Customer


Communication
Top management knows that they need more

3
hospitals opened, more doctors. What happens?
doctors have another job, unmotivated.

Service Design
Lack the
2 ability

Management Perceptions
Top management doesn't know what their market wants.
Never tried to understand what the market wants.
WHY “SELL” A SERVICE CULTURE?

To achieve that the PERSONNEL adopt voluntarily


and spontaneously the beliefs, attitudes and
values ​that will enable to maximize customer
satisfaction..

This also call: Internal Marketing


DELIVERY OF SERVICES ORIENTATED TO THE CUSTOMER

SERVICE CULTURE

“When the good service is appreciated and where providing good


service to customers is considered a form of natural life and one of
the most important standards for all.“

The service culture must be developed with human


resources and internal marketing practices.
WHY IS A SERVICE CULTURE
NECESSARY?

1. Customer satisfaction depends on personnel to keep


an open mind attitude, determined, voluntary and
spontaneous.

2. No one can do something really well if he/she isn't


fully convinced that what he/she does, agrees with
his/her own code of values.

3. No one can give what he/she does not have. If he/she


is not fully convinced, no one will be able to "give" to
customers: responsiveness, reliability, safety,
professionalism, etc..
EXPERIENTIAL MARKETING

A World of Magic
and Fun
SERVICES BEST PRACTICES

1. Generate surprise on each customer, in children and adults.


2. Make every customer feel special, making him perceive
privileges.
3. Details. The details must guard obsessively to create a Harmonic
Experience.
4. Evolve and adapt to the people and mentalities.
5. Listen and respond to customers and consumers in a obsessively,
calculated and planned way.
6. Create expectations in front of new movements in the market,
launches, events.
7. Remove barriers that we can separate or alienate customers,
young and old, showing warmth and closeness.
Quality Function Deployment
Houses of Quality Matrix
WHAT IS QUALITY?

Set of properties and characteristics of a


product or service that confers on it aptitude to
satisfy stated and implied needs.

Compliance with requirements.

Satisfy customer requirements.


There isn't Quality without Customer Orientation

IDENTIFY REQUIREMENTS

ANALYZE
SATISFACTION

COMPLIANCE OF REQUIREMENTS
Three Levels of Quality

Quality requirements for the system


SYSTEM (ISO 9001:2000)

Quality requirements fo the process


PROCESS (Capacity of a process,
HACPP)

Quality requirements for the product


PRODUCT (Specifications)
QUALITY-DEFINITIONS
Certification:
The activity allows for the compliance of a particular company, product, process
or service with the requirements defined in standards or technical specifications.

Homologation:
Certification by the Public Administration that the product prototype meets the
requirements defined in standards or technical specifications.

Normalization:
Development, dissemination and implementation of standards.

Inspection:
The activity for which examines designs, products, facilities, production
processes and services to verify compliance of the requirements that are
applied.

Accreditation:
Formal recognition of the technical competence of an entity to certify, inspect or
audit the quality, or a testing laboratory or industrial calibration.
APPROACH BASED ON PROCESSES.

1. IDENTIFY processes.
2. DETERMINE their sequence and interaction.
3. ESTABLISH criteria to control.
4. PERFORM monitoring, measurement and analysis.

Continuous Improvement
Quality Management System ISO 9001:2000
Continuous Improvement of
the quality management system

5. Management
Responsibility Customers

Customers

6. Resources 8. Measurement Satisfaction


Management Analysis and Improvement

Requirements Inputs 7. Product Outputs


Product
Realization

Source: ISO 9001:2000


What tool should be used to develop a new
product with quality process?

QFD - Quality Function Deployment (Yoji Akao)


House of Quality Matrix

QFD is a kind of conceptual map that provides means to cross-


functional planning and coordination of product improvement
and product development.

This technique systematically transfers customer requirements in


a structured way to different multi-disciplinary teams involved in
product development.
What does the Houses of Quality Matrix?

QFD - Quality Function Deployment – Houses of Quality Matrix

Brings the needs and desires of customers relating to the


characteristics of the product, giving the "inputs" of needed
focus to design or redesign.

Translates characteristics in product and process specifications


and connects to the objectives and/or assurance checkpoints of
engineering and marketing.

It is a key element to convert customer requirements into design


criteria to get responses from the designers-builders-participants.
Houses of Quality Matrix - HOQ

The Houses of Quality will be useful for:

• Determine the desires or expectations of customers.


• Determine the elements or attributes of how a good or service
can satisfy customer needs.
• Relate the customer desires with the "hows" of the product.
• Identify the relationship between the "hows" of the company.
• Determine degrees of importance (using scales) of all elements
to meet the expectations.
• Evaluate products of the competition.
1. Customer Requirements Houses of
2. Customer Competitive Assessment, Quality
how well it is meeting the requirements. Elements
(customer perceptions observed in
market surveys)
6
3. Technical Requirements or responses
to consumer needs (Hows) HOWs (Title) Customer

Customer Importance
Assessment

4. Correlation Matrix
(team's opinions regarding correlations
New Chart
3
between technical and customer
requirements)

5. Technical Evaluation, Values Goals or


WHATs (Title)

design technical parameters, degree of 1 4 2


importance and priority

6. Technique Matrix of the Correlation -


ceiling- (used to identify where technical
requirements support or impede Terget Value

product design) 5
Weighted Importance

Relativ e Importance
Example QFD
Houses of Quality
Matrix
Design of a Frying pan

It is intend to give the


product, characteristics that
the customer or user needs
or would like the product
had.

Also made an assessment


against competition (existing
pans) to see if our product
would be efficient and
satisfactory for our customer.
Example QFD
Houses of Quality
Matrix

Bus Company
Example QFD
Houses of Quality
Matrix

Shoe store
Example QFD
Houses of Quality Matrix
Artillery Cannon
Pueden darse varias Casas de la
Calidad según la complejidad del
producto

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