Service Design topic from Operations Management
- 1. McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. 4 4 Product and Service Design
- 2. 4-2 Product and Service Design Product and Service Design Chapter 4 - Lesson 3 Chapter 4 - Lesson 3 Lecture/Discussion Examples of product and service design. Issues/considerations during prod. design. Relationship of prod. design to operations. Management tools exercises: QFD – House of Quality Service Blueprinting
- 3. 4-3 Product and Service Design Product and Service Design Examples Examples Product Design Plumbing MP3-player Pool Pump Hot Tub / Spa Service Design: Gas stations Retail checkout / cashiers
- 4. 4-4 Major factors in design strategy Cost Quality Time-to-market Customer satisfaction Competitive advantage Product and Service Design Product and Service Design Product and service design – or redesign – should be closely tied to an organization’s strategy
- 5. 4-5 1. Translate customer wants and needs into product and service requirements 2. Refine existing products and services 3. Develop new products and services 4. Formulate quality goals 5. Formulate cost targets 6. Construct and test prototypes 7. Document specifications Product or Service Design Activities Product or Service Design Activities
- 6. 4-6 Reasons for Product or Service Reasons for Product or Service Design Design Economic Social and demographic Political, liability, or legal Competitive Cost or availability Technological
- 7. 4-7 Objectives of Product and Objectives of Product and Service Design Service Design Main focus Customer satisfaction Understand what the customer wants Secondary focus Function of product/service Cost/profit Quality Appearance Ease of production/assembly Ease of maintenance/service
- 8. 4-8 Other Issues in Product and Other Issues in Product and Service Design Service Design Product/service life cycles How much standardization Mass customization Product/service reliability Robust design Degree of newness Cultural differences
- 9. 4-9 Life Cycles of Products or Services Life Cycles of Products or Services Time Introduction Growth Maturity Saturation Decline Demand Figure 4.1
- 10. 4-10 Standardization Standardization Standardization Extent to which there is an absence of variety in a product, service or process
- 11. 4-11 Advantages of Standardization Advantages of Standardization Fewer parts to deal with in inventory & manufacturing Design costs are generally lower Reduced training costs and time More routine purchasing, handling, and inspection procedures Quality is more consistent
- 12. 4-12 Advantages of Standardization Advantages of Standardization (Cont’d) (Cont’d) Orders fillable from inventory Opportunities for long production runs and automation Need for fewer parts justifies increased expenditures on perfecting designs and improving quality control procedures. See “paring parts to pump profits” article
- 13. 4-13 Disadvantages of Standardization Disadvantages of Standardization 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.
- 14. 4-14 • Mass customization: A strategy of producing standardized goods or services, but incorporating some degree degree of customization Delayed differentiation Modular design See SIM Examples Mass Customization Mass Customization
- 15. 4-15 • Delayed differentiation is a postponement tactic Producing but not quite completing a product or service until customer preferences or specifications are known Delayed Differentiation Delayed Differentiation
- 16. 4-16 Modular Design Modular Design Modular design is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged. It allows: easier diagnosis and remedy of failures easier repair and replacement simplification of manufacturing and assembly
- 17. 4-17 Reliability Reliability Reliability: The ability of a product, part, or system to perform its intended function under a prescribed set of conditions Failure: Situation in which a product, part, or system does not perform as intended Normal operating conditions: The set of conditions under which an item’s reliability is specified
- 18. 4-18 Improving Reliability Improving Reliability • Component design • Production/assembly techniques • Testing • Redundancy/backup • Preventive maintenance procedures • User education • System design
- 19. 4-19 Robust Design: Design that results in products or services that can function over a broad range of conditions Robust Design Robust Design
- 20. 4-20 Cultural Differences Cultural Differences Multinational companies must take into account cultural differences related to the product design. Notable failures: Chevy Nova in Mexico
- 21. 4-21 Design for manufacturing (DFM) Design for assembly (DFA) Design for recycling (DFR) Remanufacturing Design for disassembly (DFD) Robust design Product design Product design
- 22. 4-22 Manufacturability Manufacturability Manufacturability is the ease of fabrication and/or assembly which is important for: Cost Productivity Quality
- 23. 4-23 Designing for Manufacturing Designing for Manufacturing Beyond the overall objective to achieve customer satisfaction while making a reasonable profit is: Design for Manufacturing(DFM) The designers’ consideration of the organization’s manufacturing capabilities when designing a product. The more general term design for operations encompasses services as well as manufacturing See examples
- 24. 4-24 Concurrent Engineering Concurrent Engineering Concurrent engineering is the bringing together of engineering design and manufacturing personnel early in the design phase.
- 25. 4-25 Computer-Aided Design Computer-Aided Design Computer-Aided Design (CAD) is product design using computer graphics. increases productivity of designers, 3 to 10 times creates a database for manufacturing information on product specifications provides possibility of engineering and cost analysis on proposed designs
- 26. 4-26 Recycling: recovering materials for future use Recycling reasons Cost savings Environment concerns Environment regulations Recycling Recycling
- 27. 4-27 Remanufacturing Remanufacturing Remanufacturing: Refurbishing used products by replacing worn-out or defective components. Remanufactured products can be sold for 50% of the cost of a new producer Remanufacturing can use unskilled labor Some governments require manufacturers to take back used products Design for Disassembly (DFD): Designing products so that they can be easily taken apart.
- 28. 4-28 Service Design Service Design Service is an act Service delivery system Facilities Processes Skills Many services are bundled with products
- 29. 4-29 Service Design Service Design Service Something that is done to or for a customer Service delivery system The facilities, processes, and skills needed to provide a service Product bundle The combination of goods and services provided to a customer Service package The physical resources needed to perform the service
- 30. 4-30 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 Range of service systems Demand variability Differences Between Product Differences Between Product and Service Design and Service Design
- 31. 4-31 Service Blueprinting Service Blueprinting Service blueprinting A method used in service design to describe and analyze a proposed service A useful tool for conceptualizing a service delivery system
- 32. 4-32 Service Mapping/Blueprinting Service Mapping/Blueprinting A tool for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customer’s point of view. Service Mappin g Process Points of Contact Evidence
- 33. 4-33 Service Blueprint Components Service Blueprint Components CUSTOMER ACTIONS line of interaction “ONSTAGE” CONTACT EMPLOYEE ACTIONS line of visibility “BACKSTAGE” CONTACT EMPLOYEE ACTIONS line of internal interaction SUPPORT PROCESSES
- 34. 4-34 Service Blueprint Components Service Blueprint Components
- 35. 4-35 Driver Picks Up Pkg. Dispatch Driver Airport Receives & Loads Sort Packages Load on Airplane Fly to Destinatio n Unload & Sort Load On Truck Express Mail Delivery Service Express Mail Delivery Service SUPPORT PROCESS CONTACT PERSON (Back Stage) (On Stage) CUSTOME R PHYSICAL EVIDENCE Customer Calls Customer Gives Package Truck Packaging Forms Hand-held Computer Uniform Receive Package Truck Packaging Forms Hand-held Computer Uniform Deliver Package Customer Service Order Fly to Sort Center
- 36. 4-36 Overnight Hotel Stay Overnight Hotel Stay SUPPORT PROCESS CONTACT PERSON (Back Stage) (On Stage) CUSTOMER Hotel Exterior Parking Cart for Bags Desk Registration Papers Lobby Key Elevators Hallways Room Cart for Bags Room Amenities Bath Menu Delivery Tray Food Appearance Food Bill Desk Lobby Hotel Exterior Parking Arrive at Hotel Give Bags to Bellperson Check in Go to Room Receive Bags Sleep Shower Call Room Service Receive Food Eat Check out and Leave Greet and Take Bags Process Registration Deliver Bags Deliver Food Process Check Out Take Bags to Room Take Food Order Registration System Prepare Food Registration System PHYSICAL EVIDENCE
- 37. 4-37 Step 1 Identify the process to be blue- printed. Step 2 Identify the customer or customer segment. Step 3 Map the process from the customer’s point of view. Step 4 Map contact employee actions, onstage and back-stage. Step 5 Link customer and contact person activities to needed support functions. Step 6 Add evidence of service at each customer action step. Building a Service Blueprint Building a Service Blueprint