Bañez, Teresita R.

BSBA-III

Services Marketing

Reflection Paper: Restaurant services

The food and beverage industry is a great way for people to enjoy
themselves and their families. The different types of establishments are fast
food restaurants. This are this industries we have for food and beverage. They
have servers, cooks, head chefs and restaurant managers. The reason why we
make the presentation was to learn how service industry works, how serve a
customer in a professional manner and set tables in ways that the customer is
happy. I felt like this presentation gave us a chance to know what it means to
be in restaurant job. My job on the presentation is a server to the customer on
what he/she ordered. I think our first customer enjoys the stay on the
restaurant whom played by Avery and Karla. They are serve well with the food
and obviously found the place relaxing. The tables were properly organized, the
food was perfect for them and the service was extraordinary. If I was the
customer I would think that the food was perfect and the service was precise
and good. On the second customer, I think they did not enjoy the stay. Though
the ambiance is good, serving of the food makes their mood not as good as it
was serve late. What the manager did was present himself and apologized for
serving the food late. The manager gave a discount and gave a dessert to the
customers too. The client accept it and it was all cleared. I think this
presentation gave us insights to act in professional way, doing the right job and
cooperating with the customers.
 
PRODUCT DESIGN AND PROCESS SELECTION
PRODUCT DESIGN
INTRODUCTION

Designing the new products and launching them in the market is

the biggest challenge facing organizations irrespective of the size, or
complexity of the product. The needs and expectations of the customers are on
the rise. Product design deals with conversion of ideas into reality.
Every business organization has to design, develop and introduce new
products as a survival and growth strategy. The purpose of any
organization is to provide products or services to its
customers. An organization can gain a competitive edge through
designs that bring new ideas to the market quickly, can satisfy
customer n e e d s   i n   a   b e t t e r   w a y   o r   a r e   e a s i e r   t o   m a n u f a c t u r i
ng, use and repair the existing products.
Organizations are required to design the new products for the
following reasons;

•To be in business on a continuous basis, believing a fact that business is a

long lasting institution.

•To satisfy unfulfilled needs of the customers.

•Company’s existing product line becomes saturated and the sales are on the
decline.

•To enter into new prospective business through related or

unrelated diversification.

•Fierce competition in the existing product line.

•Profit is on the decline.

PRODUCT STRATEGIES

There are three fundamental strategies that guide the new product
introduction. They are;

Market Pull

According to this strategy, company “should make what it can sell”.

The market determines new products with little regard to existing
technology and operations and processes. Customer’s needs are the only basis
for new product design and introduction. The organizations through extensive
marketing research and customer feedback should determine the  needs
for types of products and then design and manufacture them.

Technology Push

This approach suggests that company “Should sell the products what is can
make”. Accordingly new products should be derived from production
technology, with little regard for the markets. It is the marketing
department’s job to create the market for the product and sell the products
that are made. Company with strong manufacturing base and R & D capability
can adopt this strategy.
 

Inter Functional Approach

In this approach, new product introduction is inter functional in
nature and requires co-operation among marketing, engineering and
other functions. The new product is an outcome of coordinated effort
between the functions. But this is difficult to achieve because of
interdepartmental rifts and revelry. The team approach consisting of
task force is used to integrate the diverse organizational elements.

PRODUCT POLICY OF AN ORGANISATION

Product policy is the top management (Strategic) decision. Every organization

has their own product strategies or policies, which form the basis of
competing in the market. They become the unique selling proposition
(USP) of the company. As per the requirements of the company, it may choose
product policies. The same company can opt for different policies for the
different products. The various product policies are;

Lowest Price

The Company will be the price leader and the company is going to offer
the product at the cheapest price than its competitors.

Highest Quality

Some organizations offer highest quality products irrespective of the cost.

They are catering to the needs of special class of customers who value quality
as the only criteria to purchase the product.
Compromise between Cost & Quality

Some Organizations in order to capture the larger sections of the

customers, offer products with the optimum blend of quality and cost.
The products are reasonably of good quality in proportion to its price.
These organizations try to give good value to the customers for his money.

Safety

Some Organizations give maximum importance to safety. Safety is the criteria

on which they compete in the market, ex - All home appliances, electrical
gadgets etc. Thus Organizations have to choose the policies suitable for them.
This policy is going to influence the design to the large extent.
 

PRODUCT LIFE CYCLE

The product once introduced into the  market will undergo

definite phases. The various phases of  lifecycle of a product are
represented below:

A-INTRODUCTION
B-GROWTH
C-MATURITYD
D-DECLINING
Characteristics of Phases in product life cycle (PLC)

The demand for a product generally tends to follow a predictable

pattern called product life cycle ( P L C ) . P r o d u c t s g o t h r o u g h a
series of stages beginning with start-up or introduction of
p r o d u c t followed by rapid growth, maturity or saturation and finally
the decline of demand. The time spans of stages of these products vary
considerably across industries. These time spans vary from few weeks or
months (for novelty and fashion goods) to years.

Introduction Stage
This stage marks the introduction of the product into the market. It may be an
entirely new production the market or old product to the new market.
The demand is low as customers do not know much about the product.
So, the Organizations have to invest heavily in advertisement to make
the product familiar to the customer. The volume of sales will be low
and if proper care is not taken, the chances of product failures are high.
Growth:
Once the product is through the introduction stage, the sales starts
increasing because of the acceptability of the product by the
customer. The sales growth rate is high because of limited or no
competition.
Maturity (Saturation):
The sales growth reaches a point above, which it will not grow. This is
due to the market share taken by the competitor’s products. Thus the sales
will be maintained for some period.

Decline:
The competitors will enter the market with better product featu
r e s ,   a d v a n c e d   t e c h n o l o g y   a n d reduced prices. This is a threat to the very
existence of product and sales start declining. If proper care l i k e a d d i t i o n o f
special features, design changes is not incorporated there
c o m e s t i m e w h e n t h e products are to be taken back from
the market.

 
PROCESS OF PRODUCT DESIGN

The steps involved in design process are as follows:

1. Idea Generation

The design process begins with understanding the customers

a n d t h e i r n e e d s . I d e a s f o r n e w products can come from a variety of
sources both within and outside the firm. Internal sources include employees,
research and development, market research sales force and reverse
engineering. The external sources include customers, legislation,
environment, technology and strategic position of the organization. Competitors
are also the source of ideas for new products or services.

2. Screening Ideas

The purpose of screening ideas is to eliminate those ideas that

d o n o t a p p e a r t o h a v e h i g h potential and so avoid the costs incurred at
subsequent stages.

3. Feasibility study
Initial screening of the ideas is designed to stop the idea
s ,   w h i c h   a r e   u n s u i t a b l e   f o r   f u r t h e r   considerations. Feasibility
study consists of a market analysis, an economic analysis, and
technical analysis.

4. Preliminary Design

Design engineers take general performance specifications and t
r a n s l a t e   t h e m   i n   t o   t e c h n i c a l specifications. The process of preliminary
design involves building a prototype, testing the prototype, revising the design,
retesting and so on until a viable design is determined. Design incorporates
both form and function. Form design refers to the physical appearance of
a product, its shape, size, color, styling etc. Aesthetics aspects such as
image, market appeal, special identification, finish etc. will also form a part of
the form design. Production design is concerned with how the product
will be made. Design, which are difficult to make result in poor quality
products. During the design stage itself the manufacturing aspects should be
considered. The production design or design for production include
simplification, standardization and modularity. Design simplification
attempts to reduce the number of parts, subassemblies ado ptions into a
product. Standardization refers to use of commonly available and
interchangeable parts and subassemblies. Modular design consists of
combining standardized building blocks or modules in a variety of ways to
create a unique finished product. Modular design is common in electronics and
automobile industry.

4. Pilot Runs and Testing

In the preliminary design stage, prototypes are built and tested after several
iterations, pilot run
of t h e   m a n u f a c t u r i n g   p r o c e s s   i s   c o n d u c t e d .   A d j u s t m e n t s   a r e   m a
d e - a s   n e e d e d   b e f o r e   f i n a l i z i n g   t h e design. Apart from continuously
testing the product for performance, market testing is also carried outto check
the acceptability of the product in the defined market and customer group.
This helps to knowing advance, whether customer will accept and buy this
product on launching in the market. Thus, test marketing is a powerful tool.

5. Final Design and Process Plans

The final design consists of detailed drawings and specification
s for
the new product. Theaccompanying process plans are workable 
i n s t r u c t i o n s   f o r   m a n u f a c t u r e   i n c l u d i n g   n e c e s s a r y equipments
and tooling, component sources job descriptions, work instructions
and Programs for computer-assisted machines.
7. New Product Launch

Launching the new product or service involves co-coordinating the

supply chain and rolling out marketing plans. Marketing and production
will work in a co-coordinated way during this phase.

Design for Manufacturing and Assembly (DFMA)

It is a process of designing a product so that it can be manufactured with ease

and economically. Itis also called design for production. Designing for
production is a concept by which a designer thinks about how the product
will be made as the product is being designed so that potential
production problems caused by design and can be resolved early in the design
process. This concept believes in simplifying design and standardizing parts
and processes used. The basic principles of DFMA are:

•Minimize the number of parts.

•Use common components and parts.
•Use standard components and tools.
•Simplify assembly.
•Use modularity to obtain variety.
•Make product specifications and tolerances reasonable.
•Design products to be robust.

Design Review

Before finalizing a design, formal procedures for analyzing poss
i b l e   f a i l u r e s   a n d   r i g o r o u s l y assessing the value of every part and
components should be followed. The techniques such as Failure Mode Effect
and Criticality Analysis (FMECA), Value Engineering (VE) and Fault Tree
Analysis (FTA).F M E C A
is a systematic approach to analyzing the causes and effects of 
p r o d u c t   f a i l u r e s .   I t anticipates failures and prevents them from occurring.
Value analysis is a design methodology developed by Lawrence Miles
in the late 1940s that focuses on the function of the product, rather
than on its structure or form and tries to maximize the economic value
of a product or component relative to its cost. Fault Tree Analysis (FTA)
emphasizes the interrelationship among failures. It lists failures and
their causes in a tree format.

Design for Environment

Design for Environment (DOE) involves designing products fro
m   r e c y c l e d   m a t e r i a l s ,   u s i n g materials or components, which can be
recycled. It promotes the concept of green products clean energy and
environment friendly products.

 
Quality Function Deployment (QFD)

Making design decisions concurrently rather than sequentially

requires superior co-ordination amongst all the participants involved
in designing, producing, procuring and marketing. QFD is powerful
tool that translates voice of the customer into design requirements
and specifications of product. It is uses interfunctional teams from
design, marketing and manufacturing.QFD process begins with studying and
listening to customers to determine the characteristics of superior product.
Through marketing research, the consumer’s product needs and
preferences are defined and broken down into categories called
“Customer Requirements” and they are weighed based on their relative
importance to die customer. Customer requirements information forms
the basis for a matrix called house of quality. By building house of quality
matrix, the cross functional QFDteams can use customer feedback to
make a engineering, marketing and design decisions. The matrix helps
to translate customer requirements in to concrete operating or engineering
goals.

QFD is a communication and planning tool that promotes better/

understanding of customer demands, promotes better understanding of design
interactions, involves manufacturing in the design process and provides
documentation of design process.

PROCESS SELECTION
Process Selection refers to the strategic decision selecting

The different types of production are:

 1 Job Work
2 Batch Production
3 Mass Production
4 Continuous Production

JOB WORK

FEATURES
1. As the name implies, the production facility is for
taking up job work
2. Jobs are mostly of similar nature – e.g. sheet metal
job shop does only that job
3. The orders are for different type with varying quantities for
different customers
4. Quality and delivery requirements also vary
5. The production shop usually has all facilities needed
for that category of jobs
6. It should have skilled workmen

CONTINUOUS PRODUCTION

FEATURES
1. The production is a continuous process. E.g. cement, refinery,
fertilizers etc.
2. Specialized machinery and equipment are required
3. Investment is high
4. The through put capacity of the line decides the production
capacity of the plant
5. The production process cannot be  normally stopped
6. Once stopped, it is expensive and time consuming to restart the
process
7. Preventive maintenance is very important
8. A breakdown of any one of the equipment may  stop the entire
production
9. Operation skill requirement is less
10. Product quality is built into the production process
11. High investment is required to increase the capacity even marginally

ADVANTAGES
1. Cost of production per unit is low
2. Production and quality control are automatic
3. Manpower requirement is less

DISADVANTAGES
1. Require large investments
2. Production cannot be normally stopped or reduced if market off
take is low
3. Restart will be expensive and time consuming
4. Preventive maintenance is very important
5. Breakdown of one equipment lead to temporary disruption of the
process
6. Production volume cannot be increased

APPLICATION
 
Continuous production is used for products with very long product life
cycle and consistency in demand, e.g. petroleum and petrochemicals,
cement, fertilizer etc. A process is necessary to shape, form, convert and
join materials and components with the help of  machine and labor in
order to convert the raw material into salable products. Process selection
involves:

1MAJOR TECHNOLOGICAL CHOICE

2MINOR TECHNOLOGICAL CHOICE
3SPECIFIC COMPONENT CHOICE
4PROCESS FLOW CHOICE

•MAJOR TECHNOLOGICAL CHOICE

Does technology exist to make the product?

Are there competing technologies among which we should choose?
Should the technology be developed in the country itself or be licensed from
foreign countries?

•MINOR TECHNOLOGICAL CHOICE

Once the major technological changes are made, ther
e   m a y   b e   a   n u m b e r   o f   m i n o r   technological process
alternatives available. The operations manager should be involved in
evaluating alternatives for costs and for consistency with the desired
product and capacity plans.

Should the process be continuous, which is carried out for 24 hours a

day in order to avoid expensive startups and shutdowns as used by steel
and chemical industries.

An assembly line process on the other hand, follows the same series of steps as
production but need not run for 24 hours a day, e.g. automobile and ready-
made garment industries,

Job shop processes produce items in small lots, perh
a p s   c u s t o m   m a d e   f o r   a   g i v e n customer/market
Suppose we make a job shop choice. The alternatives do not
e n d h e r e . F o r e x a m p l e , i n a factory, the fabrication, joining together and
finishing of two pieces of metal may represent only a s m a l l p a r t o f
creating a finished product. There may be numerous ways of
c a s t i n g a n d molding and finishing
 
•SPECIAL COMPONENT CHOICE

What type of equipment and degree of automation should be used?

Should the equipment be specific purpose or general purpose?
To what degree should machines be used to replace huma
n   l a b o r   i n   p e r f o r m i n g   a n d automatically controlling the work?

•PROCESS FLOW CHOICE

How should the product flow through the operating system?

The final process selection step determines how materials and products will
move through the system
Drawings, charts, route sheets and flow process charts are used to analyses
process flow
Analysis may lead to resequencing, combining or eliminating
operations in order to reduce materials handling and storage costs.

FACTORS AFFECTING PROCESS SELECTION

1CURRENT PRODUCTION COMITMENTS
If enough work has already been allocated to more efficient
equipment’s, the current work may have to be passed to less efficient
machine to complete the same in time.

2DELIVERY DATE
An early delivery date may force the use of less efficient machines and rule
out the use of special tools as they will take time for design and fabrication.

3QUANTITY TO BE PRODUCED
Small quantity will not justify the high cost of preparation and
efficient set-ups. Thus, quite possible they may have to be made on less
efficient machines and vice-versa

4QYALITY STANDARDS
Quality standards may limit the choice of making the product on a particular
machine, etc.