The document discusses techniques for designing and developing tourism services and products. It covers researching demand, designing specifications that meet explicit and implicit customer benefits, using quality functional deployment to link customer needs to operational requirements, reducing costs through value analysis, reducing variety while maintaining innovation, and getting ideas from internal and external sources. Standardization, mass customization, and modular design are presented as techniques to improve design.

1. Alex Hill and
Terry Hill
Chapter 3
BBT2435| TOUR OPERATION MANAGEMENT
Prepared by KAMELIA CHAICHI

2. Lecture outline
• INTRODUCTION
• DESIGNING and DEVELOPING services and products
• TECHNIQUES for improving design
• Critical REFLECTIONS
• SUMMARY

4. Designing and developing services and
products
Is there DEMAND for the
proposed services and
products?
Can they be
DESIGNED and DELIVERED?

5. The research and development process
LONG-TERM
PROGRAMMES
TACTICAL
PROGRAMMES
> KEY IDEA
Research and development combines
LONG-TERM and TACTICAL programs

6. SERVICE AND PRODUCT CASE 3.1
DESIGN AT ASAHI
BREWERIES
This case provides an example
of the role of design as an order
winner; it also illustrates the
process Asahi undertook in
developing its Super Dry beer
specification, in terms of taste,
strength and color.
1.What are its market
ORDER-WINNERS and
QUALIFIERS?

7. CASE 3.1
Question Answer
ORDER-WINNERS
QUALIFIERS
• Product RANGE
*
• Product DESIGN
• Product RANGE *
• QUALITY conformance
• Delivery RELIABILITY
• PRICE

8. The design and development process

9. The design and development process
Idea Generation
• Company’s own R&D department
• Customer complaints
• Salespersons in the field
• Factory workers or suggestions
• Marketing research
• Suppliers
• New technological developments
• Competitors

10. n. original model which serves as an example for later stages or forms
The design and development process
Feasibility Study
• Market analysis
• Economic analysis
•Technical/strategic analyses
• Performance specifications
prototype. original model which
serves as an example for later
stages or forms

11. The design and development process
Rapid Prototyping
• testing and revising a preliminary
design model
• Build a prototype
• Test prototype
• Revise design
• Retest

12. During the design and development
process, organizations need to use both
EXTERNAL and INTERNAL sources to
generate ideas
INTERNAL SOURCES
• EMPLOYEES
• SERVICE or PRODUCT
research and
development
• MARKET research
• SALES force
• Reverse ENGINEERING
EXTERNAL SOURCES
• CUSTOMERS
• SUPPLIERS
• LEGISLATIVE requirements
• ENVIRONMENTAL concerns
• TECHNOLOGICAL advances
* Reverse engineering: Dismantling competitor’s product to improve
your own product, disassembly of a device or program in order to
discover how it operates

13. CASE 3.3
DESIGN AND
DEVELOPMENT AT
GLAXOSMITHKLINE
1.How did it CHANGE its
approach?
2.What were the
ADVANTAGES of these
changes?

14. CASE 3.2
Question Answer
Changes
• Introduced AUTOMATED
PROCESSES to develop and test
new products
Advantages • Increased new product
DEVELOPMENT
• Faster TESTING of new products

15. Reviewing the service and product mix
Assessing where services/products are in their LIFE
CYCLE helps when FORECASTING sales revenue

16. Developing a specification
FACTORS TO CONSIDER
• The NATURE of services and products
• Developing SPECIFICATION to reflect the
service/product mix
• The EXPLICIT BENEFITS of the offering
• The IMPLICIT BENEFITS of the offering
• The supporting structural FACILITIES
The service/product SPECIFICATION offered is
made up of explicit and implicit BENEFITS plus
supporting structural FACILITIES

17. Developing a specification
The EXPLICIT BENEFITS : The primary services
delivered to customers, such as the food and
the level of service in a restaurant.
•The IMPLICIT BENEFITS of the offering: The
secondary services delivered to customers,
such as the atmosphere within a restaurant
and customer attention throughout.

18. Designing and developing services and
products
Developing a specification
Big Night
(1996)
Restaurant

19. Designing and developing services and
products
Developing a specification
Film clip Restaurant
Film
Title
Director
(year)
Big Night
Campbell Scott and Stanley Tucci (1996)
Clip Start
Finish
00:03:19
00:08:13
What clip shows The two brothers, who run the restaurant, setting
it up for the evening and then serving a customer
Key learning
objective
How to develop a service/product specification
The possible mismatch between customer
expectations and the actual service/product
expectation

20. Developing a specification
Service/product
specification Restaurant
EXPLICIT benefits
IMPLICIT benefits
Supporting
structural
FACILITIES
ISSUES
• DINING experience
• FOOD
• DRINK
• ATMOSPHERE
• Front office - RESTAURANT
• Back office - KITCHEN
• Customer EXPECTATION vs ACTUAL
specification

21. Techniques for improving
design
• STANDARDISATION
• Mass CUSTOMISATION
• Quality functional deployment (QFD) and
the house of quality
• VALUE analysis
• Simultaneous ENGINEERING
• VARIETY reduction

22. Quality functional deployment (QFD)
1. Establish CUSTOMERS’ NEEDS and wants
• Establish customers’ VIEW OF COMPETITORS
• Identify TECHNICAL REQUIREMENTS
• Identify LINKS between technical requirements and
their effect on different customers’ need and wants
• Complete TECHNICAL COMPARISONS
• Evaluate the TRADE-OFFS for different design features
> KEY IDEA
Quality functional deployment links CUSTOMER NEEDS to
OPERATIONS REQUIREMENTS

23. Quality functional deployment (QFD)

24. Value analysis
> KEY IDEA
Value analysis is a systematic approach to REDUCING COSTS
without reducing the service or product specification

25. Variety reduction
Analysis of current SERVICES and
PRODUCTS provided
Should the RANGE be reduced?

26. Variety reduction
POTENTIAL ADVANTAGES
> KEY IDEA
New service and products are the LIFEBLOOD of a
business

27. Production Design
Simplification
reducing number of parts, assemblies, or options in a
Product
•Standardization
using commonly available and interchangeable parts
Fast-food chains illustrate the use of standardization in
both the products offered and the service delivery system
used. For example, at McDonald
• Modular Design
combining standardized building blocks, or modules, to
create unique finished products
Commercial airlines use a modular approach to serve
their customers throughout the range of seat types
(first, business and economy). Handling customers
involves a similar set of stages but the modules involved
(from ticket purchase to collection of luggage) vary in
their provision depending on the class of seat involved
• Design for Manufacture (DFM)
Designing a product so that it can be produced easily and
economically
any new design for any manufactures

28. Critical
reflections
• Innovation starts with understanding the CUSTOMER
• Encouraging CREATIVITY is only part of the solution
• Need to clearly link INNOVATION with corporate
SUCCESS
• Innovation concerns NOT ONLY R&D, but all aspects of
a business
• Need to CONTINUALLY look to improve and develop
services and products
• Innovation involves EVERYONE and covers
EVERYTHING

29. Summar
y
• New service and product
INTRODUCTION
- Lifeblood of a business
• INNOVATION concerns
- Breakthrough and incremental
developments
• Most companies will sell TOMORROW
what they sold TODAY
- Need to rethink what they do today
• IDEAS should come from
- Internal and external sources

31. CASE FOR TUTORIAL
DYSON