Chapter 4: Learning Objectives
You should be able to:
Explain the strategic importance of product and service design
Identify some key reasons for design or redesign
Recognize the key questions of product and service design
List some of the main sources of design ideas
Discuss the importance of legal, ethical, and sustainability considerations in product and service design
Explain the purpose and goal of life cycle assessment
Explain the phrase “the 3 Rs”
Briefly describe the phases in product design and development
Name several key issues in manufacturing design
Recognize several key issues in service design
Name the phases in service design
List the characteristics of well-designed service systems
Assess some of the challenges of service design
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Product andService DesignMcGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.You should be able to:Explain the strategic importance of product and service designIdentify some key reasons for design or redesignRecognize the key questions of product and service designList some of the main sources of design ideasDiscuss the importance of legal, ethical, and sustainability considerations in product and service designExplain the purpose and goal of life cycle assessmentExplain the phrase “the 3 Rs”Briefly describe the phases in product design and developmentName several key issues in manufacturing designRecognize several key issues in service designName the phases in service designList the characteristics of well-designed service systemsAssess some of the challenges of service design4-*Student SlidesThe essence of an organization is the goods and services it offersEvery aspect of the organization is structured around themProduct and service design – or redesign – should be closely tied to an organization’s strategyStudent Slides4-*Is there a demand for it?Market sizeDemand profileCan we do it?Manufacturability - the capability of an organization to produce an item at an acceptable profitServiceability - the capability of an organization to provide a service at an acceptable cost or profitWhat level of quality is appropriate?Customer expectationsCompetitor qualityFit with current offeringDoes it make sense from an economic standpoint?Liability issues, ethical considerations, sustainability issues, costs and profits4-*Student SlidesSupply-chain basedCompetitor basedResearch based4-*Student SlidesLegal considerationsEthical considerationsHuman factorsCultural factorsGlobal product and service designEnvironmental factorsOthers4-*Student SlidesSustainabilityUsing resources in ways that do not harm ecological systems that support human existenceKey aspects of designing for sustainabilityCradle-to-grave assessment (Life-Cycle assessment)End-of-life programsThe 3-RsReduction of costs and materials usedRe-using parts of returned productsRecyclingStudent Slides4-*Value analysisExamination of the function of parts and materials in an effort to reduce the cost and/or improve the performance of a productCommon questions used in value analysisIs the item necessary; does it have value; could it be eliminated?Are there alternative sources for the item?Could another material, part, or service be used instead?Can two or more parts be combined?Can specifications be less stringent to save time or money?Do suppliers/providers have suggestions for improvements?Can packaging be improved or made less costly?4-*Student SlidesRemanufacturingRefurbishing used products by replacing worn-out or defective componentsCan be performed by the original manufacturer or another companyReasons to remanufacture:Remanufactured products can be sold for about 50% of the cost of a new productThe process requires mostly unskilled and semi-skilled workersIn the global market, European lawmakers are increasingly requiring manufacturers to take back used productsDesign for disassembly (DFD)Designing a product to that used products can be easily taken apart4-*Student SlidesRecyclingRecovering materials for future useApplies to manufactured partsAlso applies to materials used during productionWhy recycle?Cost savingsEnvironmental concernsEnvironmental regulationsCompanies doing business in the EU must show that a specified proportion of their products are recyclableDesign for recycling (DFR)Product design that takes into account the ability to disassemble a used product to recover the recylcable parts4-*Student SlidesStrategies for product or service life stagesStandardizationProduct or service reliabilityProduct or service robustnessDegree of newness4-*Student SlidesFeasibility analysisProduct specificationsProcess specificationsPrototype developmentDesign reviewMarket testProduct introductionFollow-up evaluation4-*Student SlidesServiceSomething that is done to, or for, a customerService delivery systemThe facilities, processes, and skills needed to provide a serviceProduct bundleThe combination of goods and services provided to a customerService packageThe physical resources needed to perform the service, accompanying goods, and the explicit (core features) and implicit (ancillary features) services included4-*Student SlidesBegins with a choice of service strategy, which determines the nature and focus of the service, and the target marketKey issues in service designDegree of variation in service requirementsDegree of customer contact and involvementStudent Slides4-*Effective product and service design can help the organization achieve competitive advantage:Packaging products and ancillary services to increase salesUsing multiple-use platformsImplementing tactics that will achieve the benefits of high volume while satisfying customer needs for varietyContinually monitoring products and services for small improvement opportunitiesReducing the time it takes to get a new or redesigned product or service to the marketStudent Slides4-*