PRODUCT AND SERVICES DESIGN

PRODUCT AND SERVICES DESIGN

BCM542 CONSTRUCTION SYSTEM ANALYSIS

(LECTURE 3 PART 1)

Major factors in design strategy

Cost

Quality

Time-to-market

Customer satisfaction

Competitive advantage

Product and Service Design

Product and service design or redesign should be

closely tied to an organizations strategy

Reasons for Product or Service Design or redesign

Economic (e.g low demand, excessive warranty claims, need to reduce costs)

Social and demographic ( e.g aging baby boomers, population shift)

Political, liability, or legal (e.g. government changes, safety issues, new regulations)

Competitive (e.g. new or changed products or services, new advertising/promotions)

Cost or availability (e.g. raw materials, components, labour)

Technological (e.g. in product components, processes)

Objectives of Product and Service Design

Main focus

Customer satisfaction

Secondary focus

Function of product/service

Cost/profit

Quality

Appearance

Ease of production/assembly

Ease of maintenance/service

Taking into account the capabilities of the organization in designing goods and services

Failure to take this into consideration can result in reduced productivity, reduced quality and increased productivity

Design, operation and marketing must work closely together.

In addition, legal, environmental and ethical considerations can influence the design function

Designing For Operations

Legal

FDA, OSHA, KKM

Product liability

Uniform commercial code

Ethical

Releasing products with defects

Environmental

EPA (Environment Protection Agency)

Legal, Ethical, and Environmental Issues

Regulations & Legal Considerations

Product Liability - A manufacturer is liable for any injuries or damages caused by a faulty product.

Uniform Commercial Code - Products carry an implication of merchantability and fitness: Product must be usable for its intended purposes

Designers Adhere to Guidelines

Produce designs that are consistent with the goals of the company

Give customers the value they expect

Make health and safety a primary concern

Consider potential harm to the environment

Other Issues in Product and Service Design

Product/service life cycles

How much standardization (extent to which there is absence of variety in a product, service or process)

Designing for mass customization ( Producing basically standardized goods but incorporating some degree of customization)

E.g Tactics mass customization Delayed differentiation and modular design

Product/service reliability

Range of operating conditions

Delayed differentiation Producing, but not quite completing, a product or service until customer preferences are known. E.g produce furniture basic with additional features selection of finishes glossy, stain proof, matte etc.

Modular design A form of standardization in which component parts are grouped into modules that are easily replaced or interchanged. Example in construction modular unit of prefabrication to suit customer requirement.

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Life Cycles of Products or Services

Time

Introduction

Growth

Maturity

Saturation

Decline

Demand

Figure 4.1

Phases in Product Development Process

Idea generation

Feasibility analysis

Product specifications

Process specifications

Prototype development

Design review

Market test

Product introduction

Follow-up evaluation

Idea Generation

Ideas

Competitor based ; reverse engineering

Supply chain based

Research based ; basic research, applied research or development

Reverse engineering : dismantling and inspecting competitors product to cover product improvement.

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Tangible intangible

Services created and delivered at the same time

Services cannot be inventoried

Services highly visible to customers

Services have low barrier to entry

Location important to service

Differences Between Product and Service Design

Phases in Service Design

Conceptualize

Identify service package components

Determine performance specifications

Translate performance specifications into design specifications

Translate design specifications into delivery specifications

Characteristics of Well Designed Service Systems

Consistent with the organization mission

User friendly

Robust

Easy to sustain

Cost effective

Value to customers

Effective linkages between back operations (no contact with customers = speed and efficiency) and front-of-the house operations(direct contact with customer front desk = customer service)

Single unifying theme (i.e convenience or speed)

Ensure reliability and high quality

Challenges of Service Design

Variable requirements

Difficult to describe

High customer contact

Service customer encounter

Discussion

Think of a new revised construction related products or service that you would like to see on the market. Discuss the implications of producing that product or service relative to legal, ethical, environment, profitability, competitive, design and production issues.