Chapter Two

Product and service design

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 Introduction
 Product and service design
is the process of developing a usable product
and services that meets customer's needs by
defining the users' problems and finding
creative solutions for these problems.
is the process of imagining, conceptualizing,
testing, iterating and refining a product so it’s
ready for its end user.
covers the end-to-end creation of goods that
solve a specific problem for the user.
is a blend of research, strategy, industry
knowledge and creative thinking.
the process of defining all of the companies
product and service characteristics

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 Introduction
 Product and service design must support product and
service manufacturability and serviceability (the ease with
which a product can be made)
 Product and service design defines a product’s and service
characteristics of:

 appearance
 materials
 dimensions
 tolerances
 performance standards.

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 Objective of product and service design
 To bring new or revised product and service
to the market as quickly as possible
 To design product and services that have
customer appeal
 To increase the level of customer
satisfaction
 To increase quality and or to reduce cost
 To increase the probability of organizational
success.
◦ Organization that have well designed product or
services are more likely to realize their goals
than those with poorly designed product or
services

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 Factors to be considered in the Design Process

• Factors considered to began

design process for existing firm
Customer Need
Competitive Pressure
The Appearance Of New
Technology
Government Regulation

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 The Design Idea Sources
 In
order for the design process to occur there
must be ideas for new or improved designs
which come from a variety of sources:
 many organization have research and development
department that also generate ideas for new or
improved product and services.
 marketing can tap this source of ideas in a number
of ways such as: the use of focus group, surveys
and the analyses of buying patterns.
 competitors are another important source of ideas
by studying competitors product or service and how
it operates
 Carefully dismantle and inspect the competitors product,
then uncover product improvement incorporated in their
own product using a procedure called reveres engineering.

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 Steps in the Design Process
Step 1 - Idea Development - Someone thinks of a need
and a product/service design to satisfy it: customers,
marketing, engineering, competitors, benchmarking,
reverse engineering
Step 2 - Product Screening - Every business needs a
formal/structured evaluation process: fit with facility
and labor skills, size of market, contribution margin,
break-even analysis, return on sales
Step 3 – Preliminary Design and Testing - Technical
specifications are developed, prototypes built, testing
starts
Step 4 – Final Design - Final design based on test results,
facility, equipment, material, & labor skills defined,
suppliers identified
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 Product Life Cycle and Design
 Product life cycle – series of changing product demand
 Consider product life cycle stages
◦ Introduction
◦ Growth
◦ Maturity
◦ Decline
 Design, Facility & Process investment depends on life cycle

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 Techniques of product design

 The following well known techniques

of product and service design are:
 Robust design
 Modular design
 Environmentally friendly design

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 Robust design
 Robust design is a technique that reduces
variation in a product by reducing the sensitivity
of the design of the product to sources of
variation rather than by controlling their sources.
 A robust design is a design that has minimum
sensitivity to variations in uncontrollable factors.
 A robust design shows the possibility of product
to performance in a broader range against a
narrower range
 The more robust a product is the less likely that
it will fail due to a change in the environment in
which it is used

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 Modular Design
 Modular design is a form of standardization in which
component part are subdivided into modules that are
easy replaced or interchanged.
 Modular design make it possible to have relatively
high product variety and low component variety at the
same time and unnecessary.
 The basic aid is to develop a series of basic product
component or module that can be assembled in to a
large number of different product to operation there
are only a limited number of a basic component and
process.
 Instead of designing each product separately the
component design product around standard
component module.
 Common module can serve more than one product
line.
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 Environmental friendly design
 The goal of environmental friendly design is to reduce the
environmental impact of product throughout it’s life.
 Working with environmental team with employees from
different functional areas to addressed a wider range of
environmental issues.
 They should view the impact of product design view the
product interims of its impact on the entire economy
 The team should consider the life cycle of the product from
row material to installation to use to disposal
 Companies can show their sensitivity to environmental
friendly design in several ways:
 Make product recyclable
 Use recycled product
 Use less harm full ingredients
 Use lighter component
 Use less energy
 Use less material

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 Process Design
 Process design is the choice and
sequencing of units for desired physical
and/or chemical transformation of
materials.
 Process design can be the design of new
facilities or it can be the modification or
expansion of existing facilities.
 Process design starts at a conceptual level
and ultimately ends in the form of
fabrication and construction plans.

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Tools and Strategies in the Processes Design
 Process design tools include
◦ Process flow analysis
◦ Process flowchart
 Design considerations include
◦ Make-to-stock strategy
◦ Assemble-to-order strategy
◦ Make-to-order strategy

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Process Design Tools

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Flowchart for Different Process Design

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Linking Product Design & Process Selection
 Product design and process selection are
directly linked
 Type of product selected defines type of
operation required
 Type of operation available defines
broader organizational aspects such as
◦ Equipment required
◦ Facility arrangement
◦ Organizational structure

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 Service Design
 Service design is the activity of planning and arranging
people, infrastructure, communication and material
components of a service in order to improve its quality,
and the interaction between the service provider and its
users.
 Service design involves
◦ The physical resources needed
◦ The goods that are purchased or consumed by the customer
◦ Explicit services and Implicit services
 Service
◦ Something that is done to or for a customer
 Service delivery system
◦ The facilities, processes, and skills needed to provide a service
 Product bundle
◦ The combination of goods and services provided to a customer
 Service package
◦ The physical resources needed to perform the service
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 Phases in Service Design
1. Conceptualize
2. Identify service package components
3. Determine performance specifications
4. Translate performance specifications into
design specifications
5. Translate design specifications into
delivery specifications

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 Service Blueprinting
 Service blueprinting is method used in service
design to describe and analyze a proposed
service
 Service blueprints visualize organizational
processes in order to optimize how a business
delivers a user experience.
 A service blueprint is a diagram that visualizes
the relationships between different service
components— people, props (physical or
digital evidence), and processes — that are
directly tied to touch points in a specific
customer journey

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Key Elements of a Service Blueprint
 Service blueprints take different visual forms, some
more graphic than others.
 Regardless of visual form and scope, every service
blueprint comprises some key elements:
◦ Customer actions: Steps, choices, activities, and
interactions that customer performs while interacting with a
service to reach a particular goal.
◦ Frontstage actions: Actions that occur directly in view of
the customer. Such as human-to-human or human-to-
computer actions.
◦ Backstage actions: Steps and activities that occur behind the
scenes to support onstage happenings. These actions could be
performed by a backstage employee (e.g., a cook in the
kitchen)
◦ Processes: Internal steps, and interactions that support the
employees in delivering the service.

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 Key element lines
 In a service blueprint, key elements are organized
into clusters with lines that separate them.
 There are three primary lines:
◦ The line of interaction depicts the direct interactions
between the customer and the organization.
◦ The line of visibility separates all service activities
that are visible to the customer from those that are not
visible.
 Everything frontstage (visible) appears above this line, while
everything backstage (not visible) appears below this line.
◦ The line of internal interaction separates contact
employees from those who do not directly support
interactions with customers/users.

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Characteristics of Well Designed Service Systems

1. Consistent with the organization mission

2. User friendly
3. Robust
4. Easy to sustain
5. Cost effective
6. Value to customers
7. Effective linkages between back operations
8. Single unifying theme
9. Ensure reliability and high quality

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Quality Function Deployment
 Quality Function Deployment (QFD) is a
structured approach to defining customer
needs or requirements and translating them
into specific plans to produce products to
meet those needs.
 The “voice of the customer” is the term to
describe these stated and unstated customer
needs or requirements.

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 Quality Function Deployment
1. Identify customer wants
2. Identify how the good/service will satisfy
customer wants
3. Relate customer wants to product hows
4. Identify relationships between the firm’s hows
5. Develop customer importance ratings
6. Evaluate competing products
7. Compare performance to desirable technical
attributes

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QFD House of Quality
Interrelationships
Customer
importance
How to satisfy
ratings
customer wants

assessment
Competitive
What the Relationship
customer matrix
wants

Target values Weighted

rating
Technical
evaluation

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 House of Quality Example

Your team has been charged with designing a

new camera
The first action is to construct a House of Quality

Abiot Tsegaye(BA, MBA, PhD) 5 - 28

 House of Quality Example Interrelationships

How to Satisfy
Customer Wants

Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants

Technical
Attributes and
Evaluation

What the
customer wants
Customer
importance
rating
(5 = highest)
Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
High resolution 1

Abiot Tsegaye(BA, MBA, PhD) 5 - 29

 House of Quality Example
Interrelationships

How to Satisfy
Customer Wants

Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants

Technical
Attributes and
Evaluation
Low electricity requirements

Aluminum components

Auto focus

Auto exposure How to Satisfy

Customer Wants
High number of pixels

Ergonomic design

Abiot Tsegaye(BA, MBA, PhD) 5 - 30

 House of Quality Example
Interrelationships

How to Satisfy
Customer Wants

Competitors
Analysis of
What the
Relationship
High relationship Customer
Wants
Matrix

Medium relationship Technical

Attributes and

Low relationship Evaluation

Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
High resolution 1

Relationship matrix
Abiot Tsegaye(BA, MBA, PhD) 5 - 31
 House of Quality Example
Interrelationships

How to Satisfy
Customer Wants

Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants

Technical
Attributes and
Evaluation
Relationships between
the things we can do Low electricity requirements

Aluminum components

High number of pixels

Ergonomic design
Auto exposure
Auto focus

Abiot Tsegaye(BA, MBA, PhD) 5 - 32

 House of Quality Example Interrelationships

How to Satisfy
Customer Wants

Competitor
Analysis
What the
Relationship

of
Customer

s
Matrix
Wants

Technical
Attributes and
Evaluation

Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
High resolution 1

Our importance ratings 22 9 27 27 32 25

Weighted rating

Abiot Tsegaye(BA, MBA, PhD) 5 - 33

 House of Quality Example
Interrelationships

How to Satisfy
Customer Wants

Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants

Company B
Company A
Technical
Attributes and
Evaluation

How well do competing

products meet customer
wants
Lightweight 3 G P
Easy to use 4 G P
Reliable 5 F G
Easy to hold steady 2 G P
High resolution 1 P P

Our importance ratings 22 5

Abiot Tsegaye(BA, MBA, PhD) 5 - 34

 House of Quality Example
Interrelationships

How to Satisfy
Customer Wants

Competitors
Analysis of
What the
Relationship
Customer
Matrix
Wants

Technical
Attributes and
Evaluation

Failure 1 per 10,000

Panel ranking
Target values

2 circuits
(Technical

2’ to ∞
0.5 A
attributes)

75%
Company A 0.7 60% yes 1 ok G
Technical
evaluation Company B 0.6 50% yes 2 ok F

Us 0.5 75% yes 2 ok G

Abiot Tsegaye(BA, MBA, PhD) 5 - 35
 House of Quality Example

Low electricity requirements

Aluminum components

High number of pixels

Ergonomic design
Completed

Auto exposure

Company A

Company B
Auto focus
House of
Quality Lightweight 3 G P
Easy to use 4 G P
Reliable 5 F G
Easy to hold steady 2 G P
High resolution 1 22 9 27 27 32 25 P P

Failure 1 per 10,000

Our importance ratings

Panel ranking
Target values
(Technical

2 circuits
attributes)

2’ to ∞
0.5 A
75%
Company A 0.7 60% yes 1 ok G
Technical
evaluation Company B 0.6 50% yes 2 ok F
Abiot Tsegaye(BA, MBA, PhD) 5 - 36
Us 0.5 75% yes 2 ok G
 House of Quality Sequence

Deploying resources through the organization in

response to customer requirements

Quality
plan
Production
process
Specific

Production
House

process
component

components
s
House 4

Specific
Design
characteristics

characteristics
House 3
Design

2
requirements
Customer

House
1

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 Value analysis and proposition
 Value analysis is a method for improving the
product
by increasing the usefulness of a product without
increasing cost or
by reducing cost without reducing the usefulness
of the product
 In the field of value investigation, value
refers to economic value, which itself can be
sub-divided into four types:
cost value
exchange value
use value
esteem value

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Value analysis and proposition
 A value proposition is a simple
statement that summarizes why a
customer would choose your product or
service.
 A value proposition is a promise of
value to be delivered and acknowledged
and a belief from the customer that
value will be appealed and experienced.
 A value proposition can apply to an
entire organization, or parts thereof, or
customer accounts, or products or
services.

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 Value analysis and proposition
 Customer Profile
◦ Gains – the benefits which the customer expects and needs, what
would delight customers and the things which may increase
likelihood of adopting a value proposition.
◦ Pains – the negative experiences, emotions and risks that the
customer experiences in the process of getting the job done.
◦ Customer jobs – the functional, social and emotional tasks
customers are trying to perform, problems they are trying to
solve and needs they wish to satisfy.
◦ A customer profile should be created for each customer segment,
as each segment has distinct ‘jobs to be done’, pains and gains.
 Value Map
◦ Gain creators – how the product or service creates customer
gains and how it offers added value to the customer.
◦ Pain relievers – a description of exactly how the product or
service alleviates customer pains.
◦ Products and services – the products and services which create
gain and relieve pain, and which underpin the creation of value
for the customer.

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 REFERENCES
 Chase, R.B., Jacobs, F.R. and Aquilano, N.J. (2006) Operations
Management for Competitive Advantage with Global Cases.
McGraw-Hill/Irwin, Boston.
 Gaither & Frazier, Operations Management, Cengage, New Delhi
 Panner Selvem, Production and Operation Management, Prentice
Hall of India.
 Chunnawals, Production & 9*/89Operation Management Himalaya,
Mumbai
 Kanishka Bedi, Production & Operation Management, University
Press.
 Upendra Kachru: Operation Management, Excel Publications.
 Adam, E.E& Ebert; R.J. Production and Operation Management, 6th
Ed., Prentice Hall
 Chary , S.N.Production and Operation Management, New Delhi,
Tata McGraw Hill

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