Customer Satisfaction begins with product andservice design. Moreover, decisions are made inthis area impact operations and theorganization’s overall success.Process selection and capacity planning impactthe ability of the product system to deform andto satisfy customers. Flexibility, Productiontime, and cost are key considerations in processdesign.Process selection and layout are closely related.Layout decisions are influenced by decisionsmade in product and service design.
Work design focuses on the human element inproduction systems. Increasingly, managers arerealizing that workers are a valuable asset andcan contribute greatly to the organization’ssuccess. Strategic planning is beginning toincorporate employee participation to helpimprove production systems.Design decisions have strategic significance forbusiness organizations. Many of these decisionsare not made by the operations manager.Nonetheless, because of the important linksbetween operations and each strategic area,
it is essential to the success of the organizationsto involve all of the functional area of theorganization in design decisions.
The various activities and responsibilities ofproduct and service design include the following(functional interactions are shown in parenthesis) 1. Translate customer wants and needs, intoproduct and service requirements.(marketing, operation) 2. Refine existing product and services.(marketing) 3. Develop new product and/orservices.(marketing. Operations) 4. formulate quality goods.(marketing, operation)
5. Formulate cost targets. (accounting, finance, operations) 6. Construct and test prototypes.(operations, marketing, engineering) 7. Document specifications.
REASONS FOR PRODUCT ANDSERVICE DESIGN OR REDESIGN
Product and service design has typically hadstrategic implications for the success andprosperity of an organization. Furthermore, it hasan impact on future activities.Consequently, decisions in this area are some ofthe most fundamental that managers must make.Organizations become involved in product andservice design or redesign for a variety ofreasons. The main forces that initiate design orredesign are market opportunities and threats.
The factors that give rise to market opportunitiesand threats can be one or more changes in:ECONOMIC (low demand; excessive warranty claim; the need to reduce cost)SOCIAL AND DEMOGRAPHIC (aging baby bloomers; population shifts)POLITICAL, LIABILITY OR LEGAL (government changes; safety issues; new regulations)
COMPETITIVE (new or changed products or services; new advertising/promotion)COST OR AVAILABILITY (of raw materials; components; labour)TECHNOLOGICAL (in product component processes)While each of these factors may seem obvious,in technological part a need to create an faster,smaller microprocessor that spawns a newgeneration of personal digital assistants or cellphones. Advances may require altering existingproducts.
The main focus of product and service design iscustomer satisfaction. Hence, it is essential fordesigners to understand what the customer wantsand design with that in mind. Marketing is theprimary source of this information.It is important to note that although profit isgenerally the overall measure of designeffectiveness, because the time interval betweenthe design phase and profit realization is oftenconsiderable.
These typically include development time andcost, and the resulting product or service quality.Quality, is high on the list of priorities in productand service design, having high quality wasenough for a product or service to stand out; nowit is the norm, and product and service that fallbelow this norm are the ones that stand out.For many electronic product, “high tech”appearance is a design factor.
Designers must be careful to take into account awide array of legal and ethical considerations.Moreover, if there is a potential to harm theenvironment, then those issues becomeimportant. Most organizations have numerousgovernment agencies that regulate them. Amongthe more familiar federal agencies are the Bureauof Food and Drug, the Occupational Health andSafety Administrations, the DENR and variouslocal agencies and NGOs.
Organizations generally want designers to adhereto guidelines such as the following:Produce designs that are consistent with the goals of organizations.Give customers the value they expect.Make health and safety a primary concern.Consider potential to harm the environment.
1. Life cycles- is the stages through which a product or its category bypass.2. Standardization- the extent to which there is absence of variety in a product, services or process. 2.1. mass customization- a strategy ofproducing standardized goods or services, butincorporating some degree of customization inthe final product or services. 2.2. delayed differentiation- the process ofproducing but not quite completing.
2.3. modular design- modules representgroupings of component parts intosubassemblies.3. Reliability- is a measure of the ability of aproduct, a part, a service, or an entire system toperform its intended function under a prescribedset of conditions.
4. Robust design- also called the TaguchiMethod, greatly improves engineeringproductivity. By consciously considering thenoise factors (environmental variation during theproduct’s usage, manufacturing variation, andcomponent deterioration) and the cost of failurein the field the Robust Design method helpsensure customer satisfaction.
5. The Degree of Newness- products or servicedesign change can range from the modificationof an existing product or service to an entirelynew product or service.o Modification of an existing product or service.o Expansion of an existing product line or service offering.o A clone of a competitor’s product or service.o New product or service.
5. Cultural differences- products design incompanies that operate globally also must takeinto account any cultural differences of differentcountries or regions related to the product,6. Global Product design- are development couldbe a more sustainable solution; as a part ofGlobalization.
1. Idea Generator- product development begins with ideas.2. Feasibility analysis- entail market analysis(demand), economic analysis(development cost and production cost, profit potential), and technical analysis(capacity requirements and availability, and the skills needed), cn answer the question “Does it fit with the mission?”
3. Product specifications- involves detaileddescriptions of what is needed to meet( orexceed) customer wants, and requirescollaboration between legal, marketing andoperations.4. Process specifications- alternatives must beweighed in terms of cost, availability ofresources, profit potential, and quality.5. Prototype development- units are made to seeif there are any problems with the product orprocess specifications.
6. Design review- making any necessarychanges, or abandoning.7. Market test- used to determine the extent ofconsumer acceptance.8. Production introduction- promoting theproduct.9. Follow-up evaluation- determining if changesare needed, and refining forecasts.
Service. refers to an act, something that is donefor the customers.Service delivery system. The facilities,processes; and skills needed to provide a service.Product bundle. The combination of goods andservices provided to a customer.Service package. The physical resources neededto perform the service, the accompanying goods,and the explicit and implicit services needed.
OVERVIEW OF SERVICE DESIGNService design begins with the choice of aservice strategy, which determines and focuson the service , and the target market.
DIFFERENCES BETWEEN SERVICE DESIGN AND PRODUCT DESIGN Service operations managers must contend with issues that may be insignificant or non-existent for managers in a production setting. These includes the following:
1. Products are generally tangible; services are generally intangible.2. Oftentimes services can be created and at the same time delivered. (haircut; carwash)3. Services cannot be inventoried.4. Services are highly visible to the customers and must be designed with that in mind. (spa)5. Some services have low barriers to entry and exit.
6. Location is often important to service designwith convenience as a major factor.7. Service system range from those with little orno customer contact to those that have a veryhigh degree of customer contact.8. Demand variability alternately creates waitinglines, or idle service resources.
1. Service blue printing- a method used in aservice design to describe and analyse aproposed service.2. Characteristics of well-designed servicesystem being consistent with the organization mission.Being user friendly.Being robust of variability is a factor.Being easy to sustainBeing cost- effective.
3. Challenges of service design- service designpresents some special challenges that are lesslikely to be encountered in product design, inpart, because service design also involves designof the delivery system.
1. Define the service package in detail.2. Focus on the operation from the customer perspective.3. Consider the image that the service package will present.4. Recognize the designer familiarity with the system.5. Make sure that managers are involved and will support the design once it is implemented.
6. Define quality for both tangible andintangibles.7. Make sure that recruitment, training andreward policies are consistent with serviceexpectations.8. Established procedures to handle bothpredictable and unpredictable events.9. Establish systems to monitor, maintain andimprove service
OPERATION STRATEGYProduct and service design is a futile area forachieving competitive satisfaction. Potential sources of such benefits include the following:
1. Increasing emphasis on component commonality.2. Packaging products and ancillary service to increase sales.3. Using multiple-use platforms.4. Implementing tactics that will achieve the benefits of high volume while satisfying customer needs.5. Continually monitoring products and service for small improvements.6. Shorten the time it takes to get new or redesign goods and services to the markets.
“No matter how different onemay be to another, the fact that weall work out for the good of other,can be the start of our similarity.”
REFERENCE:OPERATIONS MANAGEMENT 9TH EDITION ; pp. 123-157BY WILLIAM J. STEVENSON
PRESENTED BY: FALCIS, MARY GRACEL. JOAQUIN, EUGENIAJOSEPHINE J. MEDINA, JERONE