Design Of Goods And Services 1n5w48

DESIGN OF GOODS AND SERVICES INTRODUCTION - The design of goods and services play an important role in the degree to which organizations are able to achieve its goals. - It is a major factor in customer satisfaction, product and service quality, and production cost. - A key factor is manufacturability which refers to the ease with which the design features can be achieved by production. - Design affects costs – the cost of materials specified by design and labor and equipment costs. REASONS FOR PRODUCT AND SERVICE DESIGN - To be competitive by offering new product or service - To make the business grow and increase profit - To develop new products or services as an alternative to downsizing - Developing new products or services can add jobs and retain people instead of letting them go - Sometimes, product and service design is actually redesign - The desire to achieve cost reduction n labor or materials TRENDS IN PRODUCT AND SERVICE DESIGN - Increased emphasis on customer satisfaction and increased pressure to be competitive - Increased emphasis on reducing the time needed to introduce a new product or service - Increased emphasis on reducing the time needed to produce a product or provide a service. - Greater attention to the capabilities of the organization to produce or deliver the item - Greater attention to environmental concern, including waste minimization, recycling parts, disposal or worn-out products and packaging - Increased emphasis on deg products and service that is “-friendly” OBJECTIVES OF THE PRODUCT AND SERVICE DESIGN - To satisfy the customer while making a reasonable profit - Operations people must be involved early in the design process to ensure that the design will be compatible with the organization’s capabilities. o To design a product or service that will meet or exceed customer’s expectations within cost or budget, that takes into the capabilities or operations. THE DESIGN PROCESS - Motivation for design - Ideas for new or improved designs - Production capabilities - Forecast or future demand REGULATIONS AND LEGAL CONSIDERATIONS - PRODUCT LIABILITY  a manufacturer is liable for any injuries or damages caused by a faulty product because of poor workmanship or design - UNIFORM COMMERCIAL CODE  Products carry an implication of merchantability and fitness; that is, a product must be useable for its intended purpose SAMSUNG GALAXY NOTE 7 - An engineering failure, it shows how important creating a good product is. - Just one mistake could potentially bring down a multinational conglomerate such as Samsung, costing them stock value and pole position in a very competitive space

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Clearly, a painful lesson to be learned: You can lose everything, but never lose your reputation.

RESEARCH AND DEVELOPMENT - It refers to the organized efforts that are directed toward increasing scientific knowledge or product or processes innovation - It may involve: o Basic Research o Applied Research o Development - Benefits of R&D 1. It can lead to patents, licensing and royalties 2. First to bring new products to the market 3. Higher prices because of temporary monopoly GLOBALIZATIN AND MCDONALDS - It is known and believed that McDonald’s is the symbol of globalization - It is a global phenomenon - While many McDonald’s restaurants around the world serve the signature burger and their own spins on the Big Mac, many global outposts offer completely different items. Many are specific to each country’s cuisines. - With so many restaurants, McDonald’s demand for resources will increase. As one character of a modern world is the demand for good and efficient service, McDonalds has contributed in giving greater access to global marketplace of goods by its strong economic influence as they encourage many enterprises to offer them different services in order to keep up with the demands of people. PRODUCT LIFE CYCLE - May be any length from a few hours to decades - The operations function must be able to introduce new products successfully 1. INTRODUCTION o Fine tuning may warrant unusual expenses for  Research  Product Development  Process modification and enhancement  Supplier development 2. GROWTH o Product design begins to stabilize o Effective forecasting of capacity becomes necessary o Adding or enhancing capacity may be necessary 3. MATURITY o Competitors now established o High volume, innovative production may be needed o Improved cost control, reduction in options, paring down of product line 4. SATURATION o Market becomes saturated which leads to a decline in demand 5. DECLINE o Firms adopt defensive research posture whereby they attempt to prolong the useful life of a product or service by redeg it or changing the packaging o Unless product makes a special contribution to the organization, must plan to terminate offering. FOUR ASPECTS OF PRODUCT DESIGN 1. ROBUST DESIGN - Product is designed so that small variations in production or assembly do not adversely affect the product - Typically results in lower cost and higher quality - The design functions over a broad range of conditions

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Taguchi’s Approach o Approach created by Japanese Engineer Genichi Taguchi o It is easier to design a product that is insensitive to environmental factors than to control the environmental factors o The central feature is the parameter design

2. MODULAR DESIGN - Products designed in easily segmented components - Adds flexibility to both production and marketing - Improved ability to satisfy customer requirements - Components are subdivided into modules that are easily replaced or interchanged Advantages: - Failures are often easier to diagnose and remedy because there are fewer pieces to investigate. - Easy repair and replacement - Involves simplification: fewer parts are involved, so purchasing and inventory control become more routine, fabrication and assembly operations become more standardized and training costs are often less Disadvantages: - Decrease in variety: the number of possible configurations of module is much less than the number of possible configurations based on individual components. - Inability to disassemble a model in order to replace a faulty part: the entire module must be scrapped – usually a more costly procedure. 3. COMPUTER-AIDED DESIGN (CAD) - Using computers to design products and prepare engineering documentation - Shorter development cycles, improved accuracy, lower cost - Information and designs can be deployed worldwide Benefits: - Increase in productivity of designer because it eliminates laborious preparation of mechanical drawings of products and easy to revise repeatedly to correct errors or incorporate revisions. - The creation of a database for manufacturing that can supply needed information on product geometry and dimensions, tolerance, and material specifications. 4. CONCURRENT ENGINEERING - Bringing engineering design and manufacturing personnel together early in the design phase to achieve smoother transition from product design to production and to decrease product development time. Advantages: - Manufacturing personnel are able to identify production capabilities and capacities - Early opportunities for design procurement of critical tooling, some of which might have long lead time - Early consideration of the technical feasibility of a particular design or a portion of a design to avoid serious problems during production. - More effective resource allocation - The emphasis can be of problem resolution instead of conflict resolution

SERVICE DESIGN o Service typically includes direct interaction with the customer o Increased opportunity for customization o Reduced productivity o Cost and quality are still determined at the design stage o Delay customization o Modularization o Reduce customer interaction, often through automation o Service is an act. Something that is done to or for a customer. o Service typically includes direct interaction with the customer o Many services are bundled with products. o Services design involves: o The physical resources needed o The goods that are purchased or consumed by the customer o Explicit services o Implicit services o Service delivery system o The facilities, processes, and skills needed to provide a service o Product bundle o The combination of goods and services provided to a customer o Service package o The physical resources needed to perform the service SERVICE DELIVERY SYSTEM I. SERVICE CULTURE. It is built on elements of leadership principles, norms, work habits and vision, mission and values. Culture is the set of overriding principles according to which management controls, maintains and develops the social process that manifests itself as delivery of service and gives value to customers. Once a superior service delivery system and a realistic service concept have been established, there is no other component as fundamental to the long-term success of a service organization as its culture. II.

SERVICE QUALITY. It includes strategies, processes and performance management systems. The strategy and process design is fundamental to the design of the overall service management model. Helping the client fulfil their mission and ing them in the pursuit of their organizational purpose, must be the foundation of any service provider partnership.

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EMPLOYEE ENGAGEMENT. It includes employee attitude activities, purpose driven leadership and HR processes. Even the best designed processes and systems will only be effective if carried out by people with higher engagement. Engagement is the between the design and the execution of the service excellence model.

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CUSTOMER EXPERIENCE. It includes elements of customer intelligence, management and continuous improvements. Perception is king and constantly evaluating how both customer and end- perceive service delivery is important for continuous collaboration. Successful service delivery works on the basis that the customer as a part of the creation and delivery of the service and then designs processes built on that philosophy – this is called co-creation.

TWO KEY ISSUES IN SERVICE DESIGN - Degree of variation in service requirement - Degree of customer and customer involvement in the delivery system

CUSTOMER PARTCIPATION IN THE DESIGN OF SERVICES CUSTOMER Customer participation in design such as pre-arranged funeral services or cosmetic surgery.

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CUSTOMER in delivery such as stress test for cardiac exam or delivery of a baby Customer participation

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Customer participation in design and delivery such as counselling, college education, financial management o

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The lower the degree of customer and service requirement variability, the more standardized the service can be. Service design with no and little or no processing variability is very much like product design. Conversely, high variability and high customer generally means the service must be highly customized.

PHASES OF 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 SERVICE BLUEPRINT It is a method on service design to describe and analyze a proposed service. The key element is flow chart of the service. MAJOR STEPS IN SERVICE BLUEPRINT  Establish boundaries for the process and decide on the level of detail that will be needed  Identify the steps involved and describe them. If this is an existing process, get input from those who do it.  Prepare a flowchart of major process steps.  Identify potential failure points. Incorporate features that minimize the chances of failures.  Establish a time frame of service executions and estimate of variability in processing and time requirements.  Analyze profitability. Determine which factors can influence profitability positively and negatively and determine how sensitive is these factors. RELIABILITY

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It is the measure of the ability of a product, part or system to perform its intended function under a prescribed set of conditions. The importance of reliability is by its use by prospective buyers in comparing alternatives and by sellers as one determinant of price. It can also have impact on repeat sales that reflect on the image of the product, and if too low, create legal implications.

THREE IMPORTANT ASPECTS OF RELIABILITY 1. Reliability as a Probability 2. Definition of Failure 3. Prescribed Operating Conditions RELIABILITY AS A PROBABILITY  Item reliability of 90%  Means that the probability that it will function as intended is 90%, but it will have a probability of 10% that it will fail.  Hence, it is expected that, on average that one for every 10 items will fail. Similarly, on the average, once in every ten trials will fail FAILURE It is used to describe a situation in which a product, part or system does not perform as intended. It is also includes instances that the item’s performance is substandard of its functions in a way that it is not intended. PRESCRIBED OPERATING CONDITION  Normal operating condition is the set of conditions under which an item’s reliability is specified.  It includes load, temperature, and humidity ranges, operating procedures, and maintenance schedules.  The failure of s to hold these conditions often results in premature failure of parts or complete system. QUANTIFYING RELIABILITY Engineers and designers have a number of techniques at their disposal for assessing the reliability of parts, products, or system. PROBABILITY is used in two ways: 1. The probability that the product system will function on any given trial. 2. The probability that the product or system will function for a given length of time.