Product and Service Design - Research Paper Example

? Product and Service Design Table of Contents of the chapter…………………………………………………………………...…3 2. of the and publisher……………………………………………………....3 3. Objectives and Targeted audience……………………………….……………………..3 4. Introduction…………………………………………………………………………….4 5. Background of the Chapter under review……………………………………………….4 6. Issues or Ideas presented in the chapter………………………………..……………….6 7. Evaluation/Analysis of the Chapter……………………………………………………..13 8. Conclusion………………………………………………………………………………13 9. General comments on the format, organization and presentation………………………14 10. Rate the chapter…………………………………………………………………………14 Product and Service Design Title of the Chapter The Chapter under review is Product and service Design. Name of the Author and Publisher The book was written by Dr. William Stevenson who is a professor at the Rochester Institute of Technology in the College of business. The book was published by McGraw-Hill Education. Objectives and Targeted Audience There are several objectives of this chapter. To give details on the strategic significance of product and service design To make out some of the important reasons for design or redesign Identify important questions about product and service design Recognize the major sources of design ideas Explain the importance of ethical, legal and sustainability concerns in product and service design (Stevenson, 2011) Discuss the objective and goal of life cycle evaluation Explain the concept of ‘3Rs’ To give a brief description of the stages in design and development Name a number of key issues in manufacturing and design Identify a few concerns in service design Name steps in service design State the characteristics of well-designed service systems. Evaluate some setbacks facing service design. The targeted audiences are business and management students, players in the manufacturing and service industries and the public. Introduction In the modern world, product and service designs have increasingly become important, as customers have become more skeptical about product variety. Additionally, customers are opting for products and services that are produced using the latest technology. The effects of greater product variety and shorter product lifecycles have a ripple effect on the number of new products and services being offered in the market (Stevenson, 2011). Firms are acknowledging the model behind manufacturing can be translated beyond cost control to design products and services that are easily maintained and serviced. Improving the manufacturing process is an important goal in product and service design (WSP, 2013). A powerful tool can be used to lower manufacturing costs as well as improve the quality of the product or service. Background of the Chapter under Review The value of a business organization is the products and services it offers, all aspects of the organization and the structure of supply chain around the products and services. It is clear that organizations with properly designed products and services are in a better place in realization of their goals than those with defectively designed products and services. Products or service design should be closely linked with an organization’s strategy. This is owing to the fact that it is a major aspect in quality assurance, cost, customer satisfaction and competitive advantage. As a result, various departments including finance, IT, HR, finance, operations and accounting should be involved (Stevenson, 2011). It can be noted that a major cause of operations failed can be attributed to faulty design. Designs that are not clearly spelt out wrongly implemented or have the incorrect instructions for usage or assembly can lead product or service malfunctions resulting to lawsuits, injuries or deaths, destroyed reputations and product recalls (Stevenson, 2011). Introduction of new products or services in the market or significant changes in the products or service designs can affect changes in the organization as well as in the supply chain. It can be observed that some changes may have a slight impact on processes while others may have a considerable effect. In some instances, new processes may be added while in others current processes may be done away with. There may be need to find new suppliers and distributors and include them into the system. Conversely, other maybe eliminated as they are deemed unfit for the new changes (Stevenson, 2011). In addition to, it is important to take into consideration expected changes on demand over and above distribution, marketing and financial implications. Owing to the potential for extensive changes taking an inclusive systems approach and all through the design and redesign process, it is important to minimize the chances of missing some impacts and costs as well as establish the time it will take. Similarly, contribution from operations, engineering, marketing, finance, supply chains and accounting is mandatory (Stevenson, 2011). This chapter sheds more light on the design process that is applicable to product and service. Issues or Ideas Presented in the Chapter The Idea of Design as a Business Strategy As businesses in the modern world strive to cut down costs in order to attain a competitive advantage over their rivals, design is becoming an increasingly important concept in business strategy (Polaine et al., 2013). Owing to the fact that fact that product and service design touch on every aspect of an organization from IT to supply chains, accounting and marketing, design decisions have in-depth implications on the business and its performance in the market place. Product and service improvement is becoming an important aspect of pursuing sustainability and competitive edge (Design Council, n.d.). For instance, Apple is considered one of the most competitive companies in the modern times and their application of cutting edge designs has resulted to the production of the best products that have the customers’ needs and requirements at heart. The designs from Apple are characterized by simplicity in packaging to the updated product portfolio (Stevenson, 2011). It has been observed that every step taken in the manufacturing process is aimed at providing resourceful and stylish solutions that suit the customers’ needs. Reasons behind Product and Service Design or Redesign Product and service design have been argued to have strategic implications for the success of an entity. In addition to, it has implications on future operations in the company. As a result, such decisions are considered the most important for the managerial function. Firms that are involved in product or service design do so for various reasons (Stevenson, 2011). However, it can be noted that the main forces design or redesign are threats and opportunities present in the market. This can be attributed to various changes in the market. First, economic pressures such as the need to reduce costs, low demand and increased warrant cost may pose a threat to the entity calling for the need to establish a design or redesign. Secondly, a social and demographic change such as population shifts impact on product and service design (Stevenson, 2011). Thirdly, political and legal changes such as new regulations and safety issues may affect an entity’s decision concerning design or redesign. Fourthly, technology changes in the manufacturing process can be a reason behind the design or redesign. Fifthly, competitive forces in the market influence product or service redesign (Stevenson, 2011). Finally, the cost or availability of the inputs used in the production process influence product and service design or redesign. Idea Generation This is an important concept in product and service design. Ideas to create or redesign new products and services can come from various sources such as customers’ feedback, employees, supply chain, competitors and from market research. Customers’ feedback can be from market surveys, complaints, suggestions for improvement and focus groups. On the other hand, input from suppliers can come from suggestions, complaints and interviews. Competitors are known to be the strongest motivators behind product and service design or redesign. Reverse engineering is a concept that has been applied by companies such as the Ford Motor Company in creating the new Taurus model (Stevenson, 2011). Research and development (R&D) entails basic research that aims at increasing knowledge in the field with no commercial application, applied research is for commercial application while development refers to the use of applied research for commercial purposes. It is imperative to note the R&D is an expensive venture and well-established companies including IBM, Toshiba and Hewlett and Packard spend over $3 billion annually. Conversely, its benefits are immense as they may result to patents and royalties (Stevenson, 2011). An example of a successful R&D success story is the Vasic on Roll with pickle slices (Stevenson, 2011). Legal and Ethical Considerations Product and service design should take into consideration the ethical and legal mechanisms are in place. Furthermore, if there is a possible threat to the environment, such issues steps should take centre stage. Organizations are subject to regulations that have been put in place by government agencies. Examples of such agencies include Food and Drug Administration (FDA), the Environmental Protection Agency (EPA) and Occupational Health and Administration (OSHA) and other state and local level agencies. Bans have been on several components such as asbestos, phosphates and red dye (Stevenson, 2011). The government controls construction materials to ensure safety of individuals. Product liability is a strong motivation for design improvement since manufacturer’s have to take responsibility for any injuries or damages resulting from poor design or workmanship. Several businesses have faced lawsuits resulting from their products such as toy companies, tobacco companies, Ford Motor Company and Firestone (Stevenson, 2011). Additionally, manufacturers have been faced by lawsuits under the Uniform commercial codes that call for merchantability and fitness of products. This has led to potential suits leading to increased insurance and legal costs and highly publicized recalls that are highly expensive (Stevenson, 2011). It is therefore important to design products and services that are free from hazards. Finally, entities should stick to the ethical standards that during product and service design. It is important for manufacturers to produce products and services that are in line with the customers’ expectations and with the goals of the company and health and safety standards. Human Factors Two critical issues in this area include safety and liability. In addition to, designers must take into account usability of the product before adding special features to it (Stevenson, 2011). Cultural Factors It imperative for product designers to take into account the cultural differences among the buyers as they operate internationally (Stevenson, 2011). Global Product and Service Design This has become a common practice in the modern world as there are numerous benefits being realized by companies operating in the global market. It takes the collaboration of a team of designers from various parts of the world. This provides a platform for the global assessment of opportunities, threats and resources (Stevenson, 2011). Diversity created by these teams adds more value to the deign process. Conversely, if not properly managed it can lead to conflicts (Stevenson, 2011). Environmental Factors: Sustainability Sustainability is said to be at the forefront of product and service design. Essential aspects in this sector include end of life programs, cost- reduction and cradle to grave assessment. Cradle to grave assessment entails evaluation of the environmental impact of a service or product throughout its lifecycle (Stevenson, 2011). On the other hand, End- Of- Life –Programs involves the efficient disposal of products and equipment after they have reached the end of their constructive lifecycle. The Three Rs: Reduce, Reuse and Recycle These are the three concepts adopted by designers in efforts to improve performance of the product or service. Recycling is a significant program that is applied by designers and it has several benefits including cost reduction and adherence to environmental regulations and concerns. Reuses enable refurbishment of defective products for resale (Stevenson, 2011). Finally, reduction entails value analysis of resources to improve performance of the products. The Kano mode is composed of three aspects that are excitement, performance quality and basic quality (Stevenson, 2011). Excitement is the idea that an unexpected feature can lead to customer excitement. Performance quality is the middle ground since it can cause satisfaction or dissatisfaction among consumers depending on the utility of the product. Finally, basic quality is the requirements given to a product that do result to customer satisfaction. Degree of Standardization To begin with, standardization refers to the scope to which a product or service lacks variety (Tran, 2013). This is applicable for a company producing products including mops because there is no much that can be done to create uniqueness of the products while keep the prices at a minimum. Standardization products are said to have identical parts and this lowers the cost of production while increasing productivity (Stevenson, 2011). The arrangement of activities during the manufacturing process is a routine and this creates consistency in production. Designing for Mass Customization Some companies to integrate customization while practicing standardization adopt this strategy (Lopez, 2011). This cuts down on costs while adding diversity to the products. Mass customization is enabled by modular design and delayed differentiation. Modular design is a type of standardization in which parts of a product are divided into modules and this enables simple interchangeability and replacement (Stevenson, 2011). Reliability Reliability is a determination of the ability of a product or service to execute its anticipated functions under stipulated conditions. It can have a positive impact on a product’s image resulting to repeats sales. Conversely, if the products faulty, it can lead to legal problems for the company. Companies should seek to improve reliability of specific concepts or make use of back up elements (Stevenson, 2011). The most favorable level of reliability is at the point where the incremental cost equals the benefit received. Robust Design This refers to products and services that are designed to perform a wide range of functions. Products and services with a robust design are more likely to become accustomed to the environment in which they are performed or used (Stevenson, 2011). Degree of Newness Product or service design ranges from alteration of an existing product or service to a new product or service (Stevenson, 2011). Quality Function Deployment It is important to incorporate the customers’ feedback in service and product development. This helps improve the company’s competitiveness and leads to increased sale volumes (Stevenson, 2011). Phases in Product Design and Development The steps involved include “Feasibility analysis, product specification, process Specification, prototype development, design review, market test, production evaluation and follow up evaluation” (Stevenson, 2011). Designing for Production Concurrent engineering This involves integrating the design and manufacturing team in the initial stages of design in order to produce products that show manufacturing capabilities as well as customer needs (Stevenson, 2011). Computer- Aided Design (CAD) This involves replicating computer designs by using computer graphics (Stevenson, 2011). Service Design There are five major steps involved: i)Conceptualize (idea generation, evaluation of customer wants and potential demand) ii) Classify service package elements iii)Identify performance specifications (Stevenson, 2011). iv) Transformation of performance specifications into design arrangements v) Transformation designs into delivery systems Service Blueprinting This is an outline that is used to show and evaluate a proposed design. Characteristics of well- designed service systems Some of the major characteristics of well-designed service systems include cost effectiveness, consistency, sustainability, value for customers and consistency with the company’s mission (Stevenson, 2011). Challenges of service Designs There are two major challenges in service design. Services are dynamic and difficult to determine (Stevenson, 2011). Variability is the second concern in service design. Evaluation/Analysis of the Chapter The article gives an in-depth analysis of the concept of product and service design. The global examples given in the article give the readers a real world perspective. The article has uses graphs and illustrations, which gives a deeper understanding of the ideas in product and service design. Conclusion The above sections discuss some of the most important concepts in products and service design. It can be concluded that product and service design are important in satisfying the customers’ needs. In order to be successful companies must always be abreast with the customers’ wants, what the rivals are doing, new technologies available and government’s regulations. An important objective of the concept is to meet the customers’ expectation by taking into account the cost and capabilities of operations. Design entails motivation, forecasting, organizational capabilities and areas for improvement. Research and development plays an important role in innovations. Reliability is also important since it is a central dimension to the customers. Product and service design is important in determining the success of a company in the contemporary world and therefore; should be at the centre stage of operations management. General Comments on the Format, Organization and Presentation The overall format of the article has been done in a way that is easy to comprehend. The ideas are arranged cohesively and this creates a flow that makes it easier for the reader to form a link between the discussed concepts. The presentation is well organized and attractive to the readers. The examples clearly stand out from the text and this makes it easier for the reader to relate the given examples to the readings. Rate the Chapter This chapter has been impeccably done and if I was to rate it in a scale of 1 to 10, I would rate it at nine. References Design Council. (n. d.). What is service design? Retrieved from www.designcouncil.org.uk/about-design/types-of-design/service-design/what-is-service-design/ Goodwin, K. (2011). Designing for the digital age: How to create human-centered products and services. John Wiley & Sons. Lopez, J. (2011, December 19). Service design vs. product design. Retrieved from http://blog.ssqi.com/2011/12/19/service-design-vs-product-design-difference/ Polaine, A., Lovelie, L., & Reason, B. (2013, March). Service design: From insight to implementation. Retrieved from http://rosenfeldmedia.com/books/service-design/ Stevenson, W. (2011). Operations management. (11 ed.). McGraw-Hill Education. Tran, C. (2013). Design methods for synthesis and ideation. Retrieved from http://www.slideshare.net/ServiceJamLA/service-design-methods-for-synthesis-ideation WSP. (2013). Product & service design. Retrieved from http://www.wspenvironmental.com/expertise/product-and-service-design Appendices Fig. 1: Product or Service Life stages (Stevenson, 2011) The figure above shows the stages through which a product or service go through throughout their lifecycle. Different strategies are applied at various levels. In every stage, cash flow and forecasts are the important elements in strategy. Fig 2: House of Quality (Stevenson, 2011) This QFD (Quality Function Deployment) structure shows a link between customer requirements and their matching technical requirements. This structure also reveals the conflicting technical prerequisites (Stevenson, 2011). Fig 3: Stages in New Product or Service Development The above chart shows of new product or service development from idea generation to monitoring and evaluation. It is imperative for an entity to go through all these steps while introducing the new product in the market. (Goodwin, 2011) Read More