What Does Product Service and Design Do?

Chapter 4: Product and Service Design
1. Key question
2. What does product service and design do?
3. Manufacture definition
4. Serviceability define
5. Define Degree of standardization, Benefit and Disadvantage
6. Define Quality function development and Purpose of quality function
development.
7. The Kano model or who develop Kano model,
8. Phases in product design and development
Answer
1. What does product service and design do?
The various activities and responsibilities of product and service design include the
following (functional interactions are shown in parentheses):
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.
8. Translate product and service specifications into process specifications.
(Engineering, operations)
Product and service design involves or affects nearly every functional area of an
organization.
However, marketing and operations have major involvement.
2. Key question
From a buyer’s standpoint, most purchasing decisions entail two fundamental
considerations; One is cost and the other is quality or performance. From the
organization’s standpoint, the key questions are:
1. Is there demand for it? What is the potential size of the market, and what is the
expected demand profile (will demand be long term or short term, will it grow
slowly or quickly)?
2. Can we do it? Do we have the necessary knowledge, skills, equipment,
capacity, and supply chain capability? For products, this is known as
manufacturability; for services, this is known as serviceability. Also, is outsourcing
some or all of the work an option?
3. What level of quality is appropriate? What do customers expect? What level
of quality do competitors provide for similar items? How would it fit with our
current offerings?
4. Does it make sense from an economic standpoint? What are the potential
liability issues, ethical considerations, sustainability issues, costs, and profits? For
nonprofits, is the cost within budget?
3. Manufacture definition
Manufacturability The capability of an organization toproduce an item at an
acceptable profit.
4. Serviceability
The capability of an organization to provide a service at an acceptable cost or
profit.
5. Define Degree of standardization

An important issue that often arises in both product/service design and process
design is the degree of standardization.
Standardization refers to the extent to which there is absence of variety

in a product, service, or process. Standardized products are made in large quantities
of identical
items; calculators, computers, and 2 percent milk are examples. Standardized

service implies that every customer or item processed receives essentially the same
service. An automatic car
wash is a good example; each car, regardless of how clean or dirty it is, receives
the same service. Standardized processes deliver standardized service or produce
standardized goods.
Benefit of degree of standardization
Standardization carries a number of important benefits as well as certain
disadvantages.
Standardized products are immediately available to customers. Standardized
products mean interchangeable parts, which greatly lower the cost of production
while increasing productivity and making replacement or repair relatively easy
compared with that of customized parts.
Design costs are generally lower. For example, automobile producers standardize
key components of automobiles across product lines; components such as brakes,
electrical systems, and other “under-the-skin” parts would be the same for all car
models. By reducing variety, companies save time and money while increasing
quality and reliability of their products. Another benefit of standardization is
reduced time and cost to train employees and reduced time to design jobs.
Similarly, scheduling of work, inventory handling, and purchasing and accounting
activities become much more routine, and quality is more consistent
Disadvantage
Standardization also has disadvantages. A major one relates to the reduction in variety.
This can limit the range of customers to whom a product or service appeals. And that
creates a that a competitor will introduce a better product or greater variety and realize a
competitive advantage. Another disadvantage is that a manufacturer may freeze
(standardize) a design prematurely and, once the design is frozen, find compelling
reasons to resist modification. Obviously, designers must consider important issues
related to standardization when making choices. The major advantages and disadvantages
of standardization are summarized
in Table 4.2 .
6. Quality function development define

Obtaining input from customers is essential to assure that they will want what is
offered for sale. Although obtaining input can be informal through discussions
with customers, there is a formal way to document customer wants. Quality
function deployment (QFD) is a structured approach for integrating the “voice of
the customer” into both the product and service development process.
Purpose
The purpose is to ensure that customer requirements are factored into every aspect
of the process. Listening to and understanding the customer is the central feature of
QFD. Requirements often take the form of a general statement such as, “It should
be easy to adjust the cutting height of the lawn mower.” Once the requirements are
known, they mustbe translated into technical terms related to the product or
service. For example, a statement about changing the height of the lawn mower
may relate to the mechanism used to accomplish that, its position, instructions for
use, tightness of the spring that controls the mechanism, or materials needed. For
manufacturing purposes, these must be related to the materials, dimensions, and
equipment used for processing.
The structure of QFD is based on a set of matrices. The main matrix relates
customer requirements (what) and their corresponding technical requirements
(how). Additional features are usually added to the basic matrix to broaden the
scope of analysis.
Typical additional features include importance weightings and competitive
evaluations. A correlational matrix is usually constructed for technical
requirements; this can reveal conflicting technical requirements. With these
additional features, the set of matrices has the form illustrated in Figure 4.3. It is
often referred to as the house of quality because of its houselike appearance.
The kano model, who develop kano model,

The Kano model is a theory of product and service design developed by Dr.
Noriaki Kano, a Japanese professor, who offered a perspective on customer
perceptions of quality different from the traditional view that “more is better.”
Instead, he proposed different categories of quality and posited that understanding
them would better position designers to assess and address quality needs. His
model provides insights into the attributes that are perceived to be important to
customers. The model employs three definitions of quality: basic, performance,
and excitement. Basic quality refers to customer requirements that have only a
limited effect on customer satisfaction if present, but lead to dissatisfaction if not
present. For example, putting a very short cord on an electrical appliance will
likely result in customer dissatisfaction, but beyond a certain length (e.g., 4 feet),
adding more cord will not lead to increased levels of customer satisfaction.
Performance quality refers to customer requirements that generate satisfaction or
dissatisfaction in proportion to their level of functionality and appeal. For example,
increasing the tread life of a tire or the amount of time house paint will last will
add to customer satisfaction. Excitement quality refers to a feature or attribute that
was unexpected by the customer and causes excitement (the “wow” factor), such as
a voucher for dinner for two at the hotel restaurant when checking in. Figure 4.6A
portrays how the three definitions of quality influence customer satisfaction or
dissatisfaction relative to the degree of implementation. Note that features that are
perceived by customers as basic quality result in dissatisfaction if they are missing
or at low levels, but do not result in customer satisfaction if they are present, even
at high levels. Performance factors can result in satisfaction or dissatisfaction,
depending on the degree to which they are present. Excitement factors, because
they are unexpected, do not result in dissatisfaction when they are absent or at low
levels, but have the potential for disproportionate levels of satisfaction if they are
present. The lesson of the Kano model is that design elements that fall into each
aspect of quality must first be determined. Once basic needs have been met,
additional efforts in those areas should not be pursued. For performance features,
cost–benefit analysis comes into play, and these features should be included as
long as the benefit exceeds the cost. Excitement features pose somewhat of a
challenge. Customers are not likely to indicate excitement factors in surveys
because they don’t know that they want them. However, small increases in such
factors produce disproportional increases in customer satisfaction and generally
increase brand loyalty, so it is important for companies to strive to identify and
include these features when economically feasible
Product design and development generally proceeds in a series of phases (see

Table 4.4 ):
Feasibility analysis. Feasibility analysis entails market analysis (demand),
economic analysis (development cost and production cost, profit potential), and
technical analysis (capacity requirements and availability, and the skills needed).
Also, it is necessary to answer the question, does it fit with the mission? It requires
collaboration among marketing, finance, accounting, engineering, and operations.
Product specifications. This involves detailed descriptions of what is needed to
meet (or exceed) customer wants, and requires collaboration between legal,
marketing, and operations.
Process specifications. Once product specifications have been set, attention turns
to specifications for the process that will be needed to produce the product.
Alternatives must be weighed in terms of cost, availability of resources, profit
potential, and quality. This involves collaboration between accounting and
operations.
Prototype development. With product and process specifications complete, one
(or a few) units are made to see if there are any problems with the product or
process specifications.
Design review. At this stage, any necessary changes are made or the project is
abandoned. Marketing, finance, engineering, design, and operations collaborate to
determine whether to proceed or abandon.
Market test. A market test is used to determine the extent of consumer acceptance.
If unsuccessful, the product returns to the design review phase. This phase is
handled by marketing.
Product introduction. The new product is promoted. This phase is handled by
marketing.
Follow-up evaluation. Based on user feedback, changes may be made or forecasts
refined. This phase is handled by marketing

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Chapter 4: Product and Service Design

5. Define Degree of standardization

Standardization refers to the extent to which there is absence of variety

items; calculators, computers, and 2 percent milk are examples. Standardized

6. Quality function development define

The kano model, who develop kano model,

Product design and development generally proceeds in a series of phases (see

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