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    Operations Management MGT 320

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    Qasim Akram
    This chapter discusses product and service design. It describes how design translates customer wants into requirements and refines existing offerings. Key questions in design include customer demand and ability to deliver. Design is driven by market opportunities and threats. Ideas come from suppliers, customers, research and competitors. Legal, ethical and sustainability factors must be considered. Quality function deployment integrates customer needs. Phases of design include specification, prototyping and testing. Service design depends on strategy and customer contact. Well-designed systems are consistent, user-friendly, robust and cost-effective. Effective design supports operations strategy and competitive advantage.

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    Operations Management MGT 320

    Uploaded by

    Qasim Akram
    43 views17 pages
    This chapter discusses product and service design. It describes how design translates customer wants into requirements and refines existing offerings. Key questions in design include customer demand and ability to deliver. Design is driven by market opportunities and threats. Ideas come from suppliers, customers, research and competitors. Legal, ethical and sustainability factors must be considered. Quality function deployment integrates customer needs. Phases of design include specification, prototyping and testing. Service design depends on strategy and customer contact. Well-designed systems are consistent, user-friendly, robust and cost-effective. Effective design supports operations strategy and competitive advantage.

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    MGT 320_CH4

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    This chapter discusses product and service design. It describes how design translates customer wants into requirements and refines existing offerings. Key questions in design include customer demand and ability to deliver. Design is driven by market opportunities and threats. Ideas come from suppliers, customers, research and competitors. Legal, ethical and sustainability factors must be considered. Quality function deployment integrates customer needs. Phases of design include specification, prototyping and testing. Service design depends on strategy and customer contact. Well-designed systems are consistent, user-friendly, robust and cost-effective. Effective design supports operations strategy and competitive advantage.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    43 views17 pages

    Operations Management MGT 320

    Uploaded by

    Qasim Akram
    This chapter discusses product and service design. It describes how design translates customer wants into requirements and refines existing offerings. Key questions in design include customer demand and ability to deliver. Design is driven by market opportunities and threats. Ideas come from suppliers, customers, research and competitors. Legal, ethical and sustainability factors must be considered. Quality function deployment integrates customer needs. Phases of design include specification, prototyping and testing. Service design depends on strategy and customer contact. Well-designed systems are consistent, user-friendly, robust and cost-effective. Effective design supports operations strategy and competitive advantage.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 17

    Operations Management

    MGT 320
    CHAPTER 4
    Product and Service Design

    2
    Learning Objectives

    You should be able to:


    o Describe what product and service design does
    o Name the key questions of product and service design
    o Identify some reasons for design or redesign
    o List some of the main sources of design ideas
    o Discuss the importance of legal, ethical, and sustainability considerations in product
    and service design
    o Explain the purpose and goal of life cycle assessment
    o Explain the phrase “the 3 Rs”
    o Discuss key issues in product and service design
    o Name the phases in service design
    o List the characteristics of well-designed service systems
    o List some guidelines for successful service design

    3
    What Does Product & Service Design Do?
    • 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

    • Translate product and service specifications into process specifications


    • Involve Inter-functional Collaboration

    4
    Key Questions

    1. Is there a demand for it?


    2. Can we do it?

    • What level of quality is appropriate?


    • Does it make sense from an economic standpoint?

    5
    Reasons to Design or Re-Design
    • The driving forces for product and service design or redesign are
    market opportunities or threats:
    • Economic
    • Social and Demographic
    • Political, Liability, or Legal
    • Competitive
    • Cost or Availability
    • Technological
    Idea Generation
    1. Supply-chain based
    • Ideas can come from anywhere in the supply chain: Customers, Suppliers,
    Distributors, Employees, Maintenance and repair personnel
    2. Competitor based
    • By studying how a competitor operates and its products and services, many
    useful ideas can be generated
    • Reverse engineering: Dismantling and inspecting a competitor’s product to
    discover product improvements
    3. Research based
    • Basic research
    • Applied research
    • Development
    Legal, Ethical and Sustainability Considerations

    • Legal Considerations
    • Product liability
    • Uniform Commercial Code
    • Ethical Considerations
    • Designers are often under pressure
    • These pressures force trade-off decisions
    • Sustainability Considerations
    • Cradle-to-grave assessment (Life-Cycle assessment)
    • End-of-life programs
    • The 3-Rs

    8
    Product or service life stages

    9
    Key Issues in Product or Service Design

    • Standardization
    • Mass customization
    • Delayed differentiation
    • Modular design
    • Reliability
    • Robust design
    • Degree of newness

    10
    Key Issues in Product or Service Design

    • Level of Quality-Kano model

    • Concurrent engineering
    • Computer-Aided Design (CAD)

    • Production Requirements
    • Manufacturability
    • Component Commonality

    11
    Quality Function Deployment
    • Quality Function Deployment (QFD)
    • An approach that integrates the “voice of the customer” into both product
    and service development
    • The purpose is to ensure that customer requirements are factored into every
    aspect of the process
    • Listening to and understanding the customer is the central feature of QFD
    Kano Model

    • Basic quality
    • Refers to customer requirements that have only limited effect on customer satisfaction if
    present, but lead to dissatisfaction if absent
    • Performance quality
    • Refers to customer requirements that generate satisfaction or dissatisfaction in proportion to
    their level of functionality and appeal
    • Excitement quality
    • Refers to a feature or attribute that was unexpected by the customer and causes excitement

    13
    Phases in Product Design and Development
    1. Feasibility Analysis
    2. Product Specification
    3. Process Specification
    4. Prototype Development
    5. Design Review
    6. Market Test
    7. Production Introduction
    8. Follow-up Evaluation
    Service Design
    • Begins with a choice of service strategy, which determines the nature
    and focus of the service, and the target market
    • Key issues in service design
    • Degree of variation in service requirements
    • Degree of customer contact and involvement
    • Differences between Product and Service Design
    The Well-Designed Service System

    • Characteristics
    • Being consistent with the organization mission
    • Being user-friendly
    • Being robust if variability is a factor
    • Being easy to sustain
    • Being cost-effective
    • Having value that is obvious to the customer
    • Having effective linkages between back- and front-of-the-house operations
    • Having a single, unifying theme
    • Having design features and checks that will ensure service that is reliable and of high
    quality

    16
    Connection to Operations Strategy…

    • Effective product and service design can help the organization achieve
    competitive advantage:
    • Packaging products and ancillary services to increase sales
    • Using multiple-use platforms
    • Implementing tactics that will achieve the benefits of high volume while satisfying
    customer needs for variety
    • Continually monitoring products and services for small improvement opportunities
    • Reducing the time it takes to get a new or redesigned product or service to the market

    17

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