LESSON 3 – PRODUCT SERVICE DESIGN

❑ TOPICS ✓ LEARNING OUTCOMES

❑ Legal, Ethical, Environmental and other Issues in Process ✓ Discuss the activities, reasons, objectives and issue in
and Service product and service design
❑ Design Phases in Product Design and Development
✓ Briefly describe the phases in product design and
❑ Designing for Production development

❑ Design for Recycling: The Renault Way ✓ Explain various topics in service design such as phases
of the process, characteristics, challenges and some
❑ Quality Function Deployment guidelines

❑ https://ph.video.search.yahoo.com/search/video;_ylt=
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What does Product and Design do?

✓Translate customer wants and needs into

product and service requirements
✓Refine existing product and services
✓Develop new products and services
✓Formulate new products and services
✓Formulate Cost Targets
✓Formulate Quality Goals
✓Construct and Test prototypes
✓Document Specification
 Why do companies need to design/redesign their products
and/or services?

1. Economic (e.g., low demand, excessive warranty claims,

the need to reduce costs)
2. Social And Demographic (e.g., aging baby boomers,
population shifts)
3. Political, liability, or legal (e.g., government changes, safety
issues, new regulations)
4. Competitive (e.g., new or changed products or services,
new advertising/promotions)
5. Cost or Availability (e.g., of raw materials, components,
labor, water, energy)
6. Technological (e.g., product components, processes)
 Key Questions in Product and Service Design

Is there demand for it?

Can we do it? Manufacturability vs
Serviceability

What level of quality is

appropriate?

Does it make sense from an economic

standpoint?
IDEA GENERATION
❑ Inputs from Customers
❑ Feedback and suggestions from suppliers
❑ Competitive Scanning
❑ Reverse Engineering – dismantling and inspecting a
competitor’s product to discover product improvements ( Ford
Company)
❑ Research and Development Initiatives
❑ Organized efforts to increase scientific knowledge or
product innovation

Basic Research – Applied Research - Development

 Legal, Ethical, Environmental and other Issues in Process and Service

Ethical
Legal Environmental
❑ Government agencies ❑ Financial
(DTI, SEC, BIR, DENR, ❑ Product Design ❑Cradle-to-grave
BOC etc) ❑ Work Safety assessment
❑ Product Safety ❑End-of-life
❑ Safety Features ❑ Quality
❑ Environment Programs
❑ Community ❑The 3 Rs (Reduce,
❑ Product Liability
❑ Worker Rights reuse, recycle)
❑ Hiring and Firing ❑Value Cost

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 Legal, Ethical, Environmental and other Issues in Process and
Service

Legal

❑ Government agencies
(DTI, SEC, BIR, DENR,
BOC etc)

❑ Safety Features

❑ Product Liability

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Human and Cultural Factor

Organization that operate

globally are discovering
global product design.
Environmental Factors: Sustainability (3Rs)

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Degree of Standardization

Standardization – extent to which there is absence of variety in a

product, services, or process.

➢ Standardized products are made in large quantities of identical

items; calculator, computers, and 2 percent milk are example.

➢ Standardized service implies that every customer or item

processed received essentially the same service

Advantages

❖ Immediately available to customers

❖ Interchangeable parts- lower costs, higher productivity
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● Mass Customization ● Reliability

●A strategy of producing basically ● Ability of a product, part, or a system to
standardized goods, but incorporating perform it’s intended function under a
degree of customization. prescribed set of conditions.
Delayed Differentiation ● Failure- situation in which a product, part,
or a system does not perform as
○ Postponement Tactic intended.
● Normal operating conditions- set of
○ Process of producing but not quite conditions under which an item’s
completing a product or service until reliability is specified.
customer preferences are known.
● Improving Reliability
○ Modular Design 1. Improve component design
2. Improve production and assembly
○ A component parts are grouped into techniques
modules that are easily replaced or 3. Improve Testing
interchanged 4. Use backups
5. Improve preventive maintenance
○ Modules represent groupings of procedures
component parts into subassemblies, 6. Improve user education
usually to the point where the 7. Improve system design
individual parts lose their separate
identity
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Design Phases in Product Design and Development

FEASIBILITY ANALYSIS
• Entails market analysis(demand), economic
analysis (dev’t and production cost, profit
potential) and technical analysis (capacity Product Specification
requirements and availability, and the skills
needed) • Involves detail
• Requires collaboration among mktg, finance, description of what is
acctg, eng and operations needed to meet
• Does it fit with the mission? customer wants
Follow-up Evaluation • requires collaboration
•Based on user Feedback, changes between legal, mktg
may be made or forecast refined, and operations.
by Mktg

Process Specification
• After Product Specification,
Product Introduction alternatives must be weighed in terms
• New product is promoted and of cost, availability of resources, profit
handled by mktg potential and quality.
• Requires collaboration between acctg
and operations

Market Test
• Determine the extent of
consumer acceptance. If not,
return to design review phase
PROTOTYPE DEVELOPMENT
• After the two processes, one
units are made to see if there are
Design Review any problems with the product
or process specification
•Changes are made or the project 15
is abandoned.
•Mktg, finance, Eng’g, design and
Operations collaborate to
determine to proceed or not
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Designing for Production

● Concurrent Engineering
● To achieve a smoother transition from product design to
production, and to decrease product development time, many
companies are using simultaneous development, or concurrent
engineering. In its narrowest sense, concurrent engineering
means bringing design and manufacturing engineering people
together early in the design phase to simultaneously develop the
product and the processes for creating the product. More recently,
this concept has been enlarged to include manufacturing
personnel (e.g., materials specialists) and marketing and
purchasing personnel in loosely integrated, cross-functional
teams. In addition, the views of suppliers and customers are
frequently sought. The purpose, of course, is to achieve product
designs that reflect customer wants as well as manufacturing
capabilities.
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Designing for Production

● Among the key advantages of this approach are the following:

● 1. Manufacturing personnel are able to identify production capabilities and capacities.
Very often, they have some latitude in design in terms of selecting suitable materials
and processes. Knowledge of production capabilities can help in the selection process.
In addition, cost and quality considerations can be greatly influenced by design, and
conflicts during production can be greatly reduced.
● 2. Early opportunities for design or procurement of critical tooling, some of which might
have long lead times. This can result in a major shortening of the product development
process, which could be a key competitive advantage.
● 3. Early consideration of the technical feasibility of a particular design or a portion of a
design. Again, this can avoid serious problems during production.
● 4. The emphasis can be on problem resolution instead of conflict resolution.

However, a number of potential difficulties exist in this co-development approach.

Two key ones are the following:
I. Longstanding existing boundaries between design and manufacturing can be difficult
to overcome. Simply bringing a group of people together and thinking that they will be
able to work together effectively is probably naive.
II. 2. There must be extra communication and flexibility if the process is to work, and these
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● Computer-Aided Design (CAD)

● uses computer graphics for product design. The designer can modify an existing design
or create a new one on a CRT by means of a light pen, a keyboard, a joystick, or a similar
device. Once the design is entered into the computer, the designer can maneuver it on
the screen:
● It can be rotated to provide the designer with different perspectives, it can be split apart
to give the designer a view of the inside, and a portion of it can be enlarged for

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Production Requirement
Designers must take into account production
capabilities. Design needs to clearly understand
the capabilities of production (e.g., equipment,
skills, types of materials, schedules,
technologies, special abilities). Forecasts of future demand can be very useful,
supplying information on the timing and volume
This will help in choosing designs that match of demand, and information on demands for
capabilities. When opportunities and new products and services.
capabilities do not match, management must
consider the potential for expanding or
changing capabilities to take advantage of
those opportunities.

Manufacturability is a key concern for

manufactured goods: Ease of fabrication and/or
assembly is important for cost, productivity, and
quality. With services, ease of providing the
service, cost, productivity, and quality are of
great concern
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COMPONENT COMMONALITY

● Companies often have multiple products or services to offer customers. Typically, these
products or services have a high degree of similarity of features and components. This is
particularly true of product families, but it is also true of many services. Companies can
realize significant benefits when a part can be used in multiple products. For example, car
manufacturers employ this tactic by using internal components such as water pumps,
engines, and transmissions on several automobile nameplates.
● In addition to the savings in design time, companies reap benefits through standard
training for assembly and installation, increased opportunities for savings by buying in
bulk from suppliers, and commonality of parts for repair, which reduces the inventory
dealers and auto parts stores must carry.

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● What is a service blueprint?

● A service blueprint is a tool that helps
teams understand how the customer sees
or experiences a business’s service
process. It’s a diagram that visualizes
relationships between people, processes,
and physical and digital touchpoints tied to
a specific customer journey.

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Designing for Services

● . In certain cases, product design and service design go hand in hand. This stems from the
fact that goods and services often exist in combination. For example, getting an oil change
for your car involves a service (draining the old oil and putting in new oil) and a good (the
new oil). Likewise, having new carpeting installed involves a service (the installation) and
a good (the carpet). In some cases, what a customer receives is essentially a pure service,
as in getting a haircut or your lawn mowed.

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Quality Function Deployment (QFD)

● is a structured approach for integrating the "voice of the customer" into the product or
service development process. 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. Requirements often take the form of a general statement
such as, "It should be easy to adjust the cutting height of the lawn mower." Once the
requirements are known, they must be translated into technical terms related to the
product or service.
● For example, a statement about changing the height of the lawn mower may relate to
the mechanism used to accomplish that, its position, instructions for use, tightness of
the spring that controls the mechanism, or materials needed. For manufacturing
purposes, these must be related to the materials, dimensions, and equipment used for
processing

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