TOPIC: INTRODUCTION TO PRODUCT AND SERVICE DEVELOPMENT
PRODUCT AND SERVICE DESIGN
- A series of steps that includes the conceptualization, design, development, and marketing
of newly created or rebranded goods or services.
- A process of deciding on the unique characteristics and features of the company’s
product.
WHAT DOES PRODUCT AND SERVICE DESIGN DO?
Translate customer wants and needs into product and service requirements
Refine existing products and services
Develop new products and/or services
Formulate quality goals
Formulate cost targets
Constructs and test prototypes
REASON FOR PRODUCT OR SERVICE DESIGN OR REDESIGN
Economic
Social and Demographic
Political
Competitive
Cost or Availability
Technological
ISSUES IN PRODUCT AND SERVICE DEVELOPMENT
Legal
Ethical
Environmental
Cultural Differences
OTHER ISSUES: LIFE CYCLE
PRODUCT OR SERVICE LIFE CYCLE – The process a product goes through from
when it is first introduced into the market until it declines or is removed from the market.
The life cycle has four stages - introduction, growth, maturity and decline.
CONCEPTS:
STANDARDIZATION – extent to which a product, service, or process lacks variety.
ADVANTAGES:
Fewer parts to deal with in inventory and in manufacturing.
Reduced training costs and time.
More routine purchasing, handling, and inspection procedures.
Orders fillable from inventory.
Opportunities for long production runs and automation.
Need for fewer parts justifies expenditures on perfecting designs and improving
quality control procedures.
Page 1 of 4
DISADVANTAGES:
Designs may be frozen with too many imperfections remaining.
High cost of design changes increases resistance to improvements.
Decreased variety results in less consumer appeal
MASS CUSTOMIZATION – A strategy of producing basically standardized goods, but
incorporating some degree of customization.
CONCEPTS:
DELAYED DIFFERENTIATION – The process of producing, but not quite
completing, a product or service until customer preferences are known.
MODULAR DESIGN – A form of standardization in which component parts are
grouped into modules that are easily replaced or interchanged.
ADVANTAGES OF MODULAR DESIGN:
Easier diagnosis and remedy of failures.
Easier repair and replacement.
Simplification of manufacturing and assembly.
Training costs are relatively low.
DISADVANTAGES OF MODULAR DESIGN:
Limited number of possible product configurations.
Limited ability to repair a faulty module; the entire module must often be
scrapped.
GLOBAL PRODUCT DESIGN – Use combined efforts of a team of designers working in
different countries.
PROVIDE A RANGE OF COMPARATIVE ADVANTAGES OVER TRADITIONAL
TEAM SUCH AS:
Engaging the best human resources around the world
Operating on a 24 – hour basis
Global customer needs assessment
Global design can increase marketability
PHASES IN PRODUCT DEVELOPMENT PROCESS
Idea generation
Feasibility analysis
Product specifications
Process specifications
Prototype development
Design review
Market test
Product introduction
Follow-up evaluation
Page 2 of 4
PRODUCT DESIGN AND DESIGN FOR PRODUCTION
Product Life Cycles – Introduction, Growth, Maturity, Decline
Design Considerations – Standardization, Reliability, Robust Design
Concurrent Engineering
Computer-Aided Design
Production Requirements
Manufacturability – is the ease of fabrication and/or assembly which is important
for cost, productivity, and quality.
Component Commonality – When products have a high degree of similarity in
features and components, a part can be used in
multiple products
SERVICE DESIGN
– Service design improves the experiences of both the and employee by designing,
aligning, and optimizing an organization’s operations to better support customer
journeys.
– Service design is the activity of planning and organizing a business’s resources (people,
props, and processes) in order to directly improve the employee’s experience, and
indirectly, the customer’s experience.
– Service design begins with the choice of a service strategy, which determines the nature
and focus of the service, and the target market.
MAIN COMPONENTS OF SERVICE DESIGN
People – Anyone who creates or uses the service, as well as individuals who may be
indirectly affected by the service.
Props – Physical or digital artifacts (including products) that are needed to perform the
service successfully.
Processes – Any workflows, procedures, or rituals performed by either the employee or the
user throughout a service.
SERVICE BLUEPRINT
– Service blueprint is a diagram that visualizes the relationships between different service
components — people, props (physical or digital evidence), and processes. It helps to
understand how service is performed from both front- and back-end.
– Service blueprints allow the organizations to see the big picture of how a service is
implemented by the company and used by the customers.
KEY ELEMENTS OF A SERVICE BLUEPRINT
Physical Evidence – What customers (and even employees) come in contact with.
Customer Actions – Steps, choices, activities, and interactions that customer performs
during the service experience.
Onstage Actions – What customers see and who they interact with.
Backstage Actions – All other employee actions, preparations, or responsibilities
customers don’t see but made the service possible.
Support Processes – Internal steps, and interactions that support the employees in
delivering the service.
LINES OF VISIBILITY
Page 3 of 4
– Service blueprints also include lines to separate each category, clarifying how
components in a service process interact with each other.
– This allows employees and managers to better understand their role and, most
importantly, the possible sources of customer dissatisfaction within a service
experience.
LINE OF INTERACTION
– where customers meet employees and transactions occur.
LINE OF INTERNAL INTERACTION
– separates backstage interactions from different support processes required to perform an
operation. For example, passing the order from the waiter to the kitchen is a backstage interaction
while processing the order inside the CMS system is a support process.
CHARACTERISTICS OF WELL-DESIGNED SERVICE SYSTEMS
Being consistent with the organization mission.
Being user-friendly.
Being easy to sustain.
Being cost-effective.
Having value that is obvious to customers.
Having effective linkages between back-of- the-house operations and front-of-the-
house operations
Having a single, unifying theme, such as convenience or speed.
Having design features and checks that will ensure service that is reliable and of high
quality.
SOURCES:
https://searchcio.techtarget.com/definition/product-development-or-new-product-development-
NPD
https://www.slideshare.net/anabar2/product-and-service-design-62696806
https://www.renewableresourcescoalition.org/top-environmental-problems/
http://www.businessdictionary.com/article/538/common-legal-issues-faced-by-businesses/
https://www.businessmanagementideas.com/marketing/product-life-cycle/product-life-cycle-
stages-examples-strategies-definition-5-stages-examples-notes-and-diagram/17961
https://www.businessmanagementideas.com/marketing/product-life-cycle/product-life-cycle-
stages-examples-strategies-definition-5-stages-examples-notes-and-diagram/17961
William J. Stevenson Rochester. “Operations Management”. lnstitute of Technology. 2012.
Page 4 of 4
