NEW Chap. 4. Product and Service Design MGNT.pptx - PASIG CATHOLIC COLLEGE Production Operation Management Chap 4 Product and Service Design Professor

NEW Chap. 4. Product and Service Design MGNT.pptx - PASIG...

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PASIG CATHOLIC COLLEGE Production Operation Management Chap. 4: Product and Service Design Professor: Dr. Ronaldo A. Poblete
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For companies from high tech to no tech, product and service design plays an important role in their profitability and their very survival. It is a major factor in cost, quality, time-to-market, customer satisfaction, and competitive advantage The essence of any organization is the products or services it offers, and it also links to the success of the organization. Among the topics covered are the need for product and service design; sources of ideas for design and redesign; legal, environmental, and ethical issues; and elements for both manufacturing and service. Introduction
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The various activities and responsibilities of product and service design include the following: 1. Translate customer wants and needs into product and service requirements (marketing, operations) 2. Refine existing products and services (marketing) 3. Develop new products and/or services (marketing, operations) 4. Formulate quality goals (marketing, operations) 5. Formulate cost targets (accounting, finance, operations) 6. Construct and test prototypes (operations, marketing, engineering) 7. Document specifications What Does Product and Service Design Do?
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Organizations become involved in product and service design or redesign for a variety of reasons. The main forces that initiate design and redesign are market opportunities and threats. Economic – low demand, excessive warranty claims, the need to reduce costs Political, liability, or legal government changes, safety issues, new regulations Competitive – new or changed products or services, new advertising/promotions Technological in product components, processes Reasons for Product and Service Design or Redesign
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Value Analysis refers to an examination of the function of parts and materials in an effort to reduce cost and/or improve the performance of a product. Typical questions that would be asked as part of the analysis include: (i) Could a cheaper part or material be used? (ii) Is the function necessary? (iii) Can the function of two or more parts or components be performed by a single part for a lower cost? (iv) Can a part be simplified? (v) Could product specifications be relaxed, and would this result in a lower price? (vi) Could standard parts be substituted for non- Value Analysis
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The main focus of Product and Service Design is customer satisfaction , that’s why it is essential for designers to understand what the customer wants and design with that in mind. It is important to note that although profi t is generally the overall measure of design effectiveness, because the time interval between the design phase and profit realization is often considerable, more immediate measures come into play. Quality of course, is typically high on the list of Objectives of Product and Service Design
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Designers must be careful to take into account a wide array of legal and ethical considerations. Moreover, if there is a potential to harm the environment, then those issues also become important.
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