Product and service design
Introduction
Product and service design is the key factor in satisfying customer. To be a successful in product and service design, organizations must be continually aware of what customers want, what the competition is doing, what government regulations are, and what new technologies are available.
Definitions
Product – Tangible things that can satisfy the customer needs and wants.
Product Design- Structuring the component part or activities so that as a unit they can provide a specific value. It is usually begins with the development of a set of detailed specifications.
Service- Service refers to an act or something that is done to or for the customer, which is intangible.
Service design- Service design means to greater the degree of customer contact by choosing of a service strategy, determining the nature and focus of the service.
Product and service design concerned with the functional and aesthetic requirement necessary to meet the demand of the market place and at the same time achieve an acceptable rate of return.
Differences between Product and service design
1. Products are generally tangible. Consequently, service design often focuses more on intangible factors (e.g., peace of mind, ambiance)than does product design.
2. In many instances services are created and delivered at the same time(e.g., a haircut, a carwash).In such instances there is less latitude in finding and correcting errors before the customer has a chance to discover them. Consequently, training, process design, and customer relations are particularly important.
3. Services cannot be inventoried This poses restrictions on flexibility and makes capacity issues very important.
4. Services are highly visible to consumers and must be designed with that in mind; this adds an extra dimension to process design, one that usually is not present in product design.
5. Some services have low barriers to entry and exit. This places additional pressures on service design to be innovative and cost-effective.
6. Location is often important to service design, with convenience as a major factor. Hence, design of services and choice of location are often closely linked.
7. Service systems range from those with little or no customer contact to those that have a very high degree of customer contact. Here are some examples of those different types:
Insulated technical core (e.g., software development).
Production line (e.g., automatic car wash).
Personalized service(e.g. haircut, medical service).
Consumer participation(e.g.,diet program, dance lesions).
Self service(e.g.,supermarket)
Characteristics of Product and service design
There are a number of characteristics of well-designed service systems. They can serve as guidelines in developing a service system. They include
1. Being consistent with the organization mission.
2. Being user friendly.
3. Being robust if variability
4. Being easy to sustain.
5. Being cost-effective.
6. Having value that is obvious to customers.
7. Having effective linkages between back-of-the-house operations (i.e., no contact with the customer) and front-of-the-house operations (i.e. direct contact with customers).Front operations should focus on customer service, while back operations should focus on speed and efficiency.
8. Having a single, unifying theme, such as convenience or speed.
9. Having design features and cheeks that will ensure service that is reliable and high quality.
Factors that affect the Product design
There are some factors that influence in Product Design;
a. Customer satisfaction
b. New Product Introduced time
c. Production time.
d. Capabilities of the organization/ Organizational Capabilities.
e. Environmental issues- Waste minimization, recycling parts etc.
f. User friendly product and services.
g. Materials and packages of production.
Sources of New Product Ideas
There are two types of sources of product design;
1. Internal
· Employees- Expertise, scientist or other expert employees can develop new ideas.
· Research and Development Department – R&D department develop new ideas by collecting the data and information about product and market and comparing to the customer demand and expectation with the information and data they collected.
2. External
· Customer- Regular demand and expectation can be a source of new ideas.
· Competitor- Competitors move and developed product and services are the sources of new ideas.
· Supplier- Supplier of raw materials or the other supporting product can also participate in idea creation that are new for the market.
Stages of Product Development Process
Product design and development generally proceeds in a series of phases and these are: -
1. Idea generation
2. Feasibility analysis
3. Product specifications
4. Process specification
5. Prototype development
6. Design review
7. Market test.
8. Product introduction
9. Follow-up evaluation
1. Idea generation: Product Development begins with idea generation. Ideas can come from a variety of sources. This topic will be discussed in detail following this section.
2. Feasibility analysis: Feasibility analysis entails market analysis (demand), economic analysis (development cost and production cost, profit potentials) and technical analysis (capacity requirement 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.
3. Product specification: This involves detailed descriptions of what is needed to meet(or exceeds)customer wants, and requires collaboration between legal, marketing ,and operations
4. Process specification: Once product specifications have been set, attention turns to specifications for the process that will be needed to produce the product. Alternatives must be weight in terms of cost, availability of resources, profit potential, and quality. Involves collaboration between accounting and operations.
5. 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
6. Design review: Many necessary changes, or abandon. Involves collaboration among marketing, finance, and engineering, design, and operations.
7. Market test: A market test is used to determine the extent of consumer acceptance. If unsuccessful, return to the design review phase.(marketing)
8. Product introduction: Promote the product.(Marketing)
9. Follow-up evolution: Determine if changes are needed, and refine forecasts.(marketing)
Introduction
Product and service design is the key factor in satisfying customer. To be a successful in product and service design, organizations must be continually aware of what customers want, what the competition is doing, what government regulations are, and what new technologies are available.
Definitions
Product – Tangible things that can satisfy the customer needs and wants.
Product Design- Structuring the component part or activities so that as a unit they can provide a specific value. It is usually begins with the development of a set of detailed specifications.
Service- Service refers to an act or something that is done to or for the customer, which is intangible.
Service design- Service design means to greater the degree of customer contact by choosing of a service strategy, determining the nature and focus of the service.
Product and service design concerned with the functional and aesthetic requirement necessary to meet the demand of the market place and at the same time achieve an acceptable rate of return.
Differences between Product and service design
1. Products are generally tangible. Consequently, service design often focuses more on intangible factors (e.g., peace of mind, ambiance)than does product design.
2. In many instances services are created and delivered at the same time(e.g., a haircut, a carwash).In such instances there is less latitude in finding and correcting errors before the customer has a chance to discover them. Consequently, training, process design, and customer relations are particularly important.
3. Services cannot be inventoried This poses restrictions on flexibility and makes capacity issues very important.
4. Services are highly visible to consumers and must be designed with that in mind; this adds an extra dimension to process design, one that usually is not present in product design.
5. Some services have low barriers to entry and exit. This places additional pressures on service design to be innovative and cost-effective.
6. Location is often important to service design, with convenience as a major factor. Hence, design of services and choice of location are often closely linked.
7. Service systems range from those with little or no customer contact to those that have a very high degree of customer contact. Here are some examples of those different types:
Insulated technical core (e.g., software development).
Production line (e.g., automatic car wash).
Personalized service(e.g. haircut, medical service).
Consumer participation(e.g.,diet program, dance lesions).
Self service(e.g.,supermarket)
Characteristics of Product and service design
There are a number of characteristics of well-designed service systems. They can serve as guidelines in developing a service system. They include
1. Being consistent with the organization mission.
2. Being user friendly.
3. Being robust if variability
4. Being easy to sustain.
5. Being cost-effective.
6. Having value that is obvious to customers.
7. Having effective linkages between back-of-the-house operations (i.e., no contact with the customer) and front-of-the-house operations (i.e. direct contact with customers).Front operations should focus on customer service, while back operations should focus on speed and efficiency.
8. Having a single, unifying theme, such as convenience or speed.
9. Having design features and cheeks that will ensure service that is reliable and high quality.
Factors that affect the Product design
There are some factors that influence in Product Design;
a. Customer satisfaction
b. New Product Introduced time
c. Production time.
d. Capabilities of the organization/ Organizational Capabilities.
e. Environmental issues- Waste minimization, recycling parts etc.
f. User friendly product and services.
g. Materials and packages of production.
Sources of New Product Ideas
There are two types of sources of product design;
1. Internal
· Employees- Expertise, scientist or other expert employees can develop new ideas.
· Research and Development Department – R&D department develop new ideas by collecting the data and information about product and market and comparing to the customer demand and expectation with the information and data they collected.
2. External
· Customer- Regular demand and expectation can be a source of new ideas.
· Competitor- Competitors move and developed product and services are the sources of new ideas.
· Supplier- Supplier of raw materials or the other supporting product can also participate in idea creation that are new for the market.
Stages of Product Development Process
Product design and development generally proceeds in a series of phases and these are: -
1. Idea generation
2. Feasibility analysis
3. Product specifications
4. Process specification
5. Prototype development
6. Design review
7. Market test.
8. Product introduction
9. Follow-up evaluation
1. Idea generation: Product Development begins with idea generation. Ideas can come from a variety of sources. This topic will be discussed in detail following this section.
2. Feasibility analysis: Feasibility analysis entails market analysis (demand), economic analysis (development cost and production cost, profit potentials) and technical analysis (capacity requirement 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.
3. Product specification: This involves detailed descriptions of what is needed to meet(or exceeds)customer wants, and requires collaboration between legal, marketing ,and operations
4. Process specification: Once product specifications have been set, attention turns to specifications for the process that will be needed to produce the product. Alternatives must be weight in terms of cost, availability of resources, profit potential, and quality. Involves collaboration between accounting and operations.
5. 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
6. Design review: Many necessary changes, or abandon. Involves collaboration among marketing, finance, and engineering, design, and operations.
7. Market test: A market test is used to determine the extent of consumer acceptance. If unsuccessful, return to the design review phase.(marketing)
8. Product introduction: Promote the product.(Marketing)
9. Follow-up evolution: Determine if changes are needed, and refine forecasts.(marketing)
* * *
No comments:
Post a Comment