WorksheetsProduct and Service Design
Total questions: 66
Worksheet time: 33mins
The essence of a business organization is the products and services it offers, and every aspect of the organization and its supply chain are structured around these products and services.
True
False
The primary focus of product or service design should be on customer satisfaction.
True
False
The secondary considerations of product and service designs are cost or profit, quality, ability to produce a product or provide a service, ethics and safety, and sustainability.
True
False
Reasons for Product and Service Design or Redesign:
· It involves low demand, excessive warranty claims (a claim for the repair or replacement of products manufactured by the business (Law Insider, n.d.)), and the need to reduce costs.
Economic Factors
Socio-demographic Factors
Political, Liability or Legal
Competitivity
Reasons for Product and Service Design or Redesign:
· It includes variables such as age, sex, education, migration background and ethnicity, marital status, household, employment, and income.
Economic Factors
Socio-demographic Factors
Political, Liability or Legal
Competitivity
Reasons for Product and Service Design or Redesign:
· It includes government changes, safety issues, and new regulations incorporated in the production department.
Economic Factors
Socio-demographic Factors
Political, Liability or Legal
Competitivity
Reasons for Product and Service Design or Redesign:
· It involves the new or changed products or services of the production and also includes new advertising and promotions in marketing.
Economic Factors
Socio-demographic Factors
Political, Liability or Legal
Competitivity
Reasons for Product and Service Design or Redesign:
· It contains information about the prices of raw materials, labor, water, energy, and other components needed in the production and how easily the operations department can avail these.
Cost or Availability
Socio-demographic Factors
Political, Liability or Legal
Competitivity
Reasons for Product and Service Design or Redesign:
· It involves the systems and processes used as components of the company’s products and services, such as the use of smaller microprocessors in smartphones or the production of inverter air conditioner units.
Cost or Availability
Technological Factors
Political, Liability or Legal
Competitivity
· It describes the process of imagining, creating, and iterating products that solve users’ problems or address specific needs in a given market
Cost or Availability
Technological Factors
Product Design
Competitivity
Phases in Product Design and Development:
It entails market analysis (demand), economic analysis (development cost and production cost, profit potential), and technical analysis (capacity requirements and availability, and the skills needed). This phase requires collaboration among marketing, finance, accounting, engineering, and operations.
Feasibility Analysis
Production Specification
Process Specifications
Prototype Development
Phases in Product Design and Development:
It involves detailed descriptions of what is needed to meet (or exceed) customer wants and requires collaboration among legal, marketing, and operations.
Feasibility Analysis
Production Specification
Process Specifications
Prototype Development
Phases in Product Design and Development:
Once product specifications are set, attention turns to specifications for the processes needed to produce the product. Alternatives must be weighed in terms of cost, availability of resources, profit potential, and quality. These involve collaboration between accounting and operations.
Feasibility Analysis
Production Specification
Process Specifications
Prototype Development
Phases in Product Design and Development:
With product and processes specifications complete, a few units are made to see if there are any problems with the product or process specifications.
Feasibility Analysis
Production Specification
Process Specifications
Prototype Development
Phases in Product Design and Development:
At this stage, any necessary changes are made, or the project is abandoned. Marketing, finance, engineering, design, and operations collaborate to determine whether to proceed or abandon.
Design Review
Market Test
Product Introduction
Follow-up Evaluation
Phases in Product Design and Development:
It is used to determine the extent of consumer acceptance. If unsuccessful, the product returns to the design review phase. The marketing group handles this.
Design Review
Market Test
Product Introduction
Follow-up Evaluation
Phases in Product Design and Development:
The new product is promoted. The marketing group handles this.
Design Review
Market Test
Product Introduction
Follow-up Evaluation
Phases in Product Design and Development:
Based on user feedback, changes may be made or forecasts refined. The marketing group handles this.
Design Review
Market Test
Product Introduction
Follow-up Evaluation
Design Techniques for Production:
It means bringing people from the design and manufacturing departments together early in the design phase to simultaneously develop the product and the processes for creating the product.
Concurrent Engineering
Computer-Aided Design
Production Requirements
Component Commonality
Design Techniques for Production:
This technique uses computer graphics for product design. The designer can modify an existing design or create a new one on a monitor using a light pen, a keyboard, a joystick, or a similar device. Once the design is entered into the computer, the designer can maneuver it on the screen.
Concurrent Engineering
Computer-Aided Design
Production Requirements
Component Commonality
Design Techniques for Production:
The design needs to understand the capabilities of production clearly. When opportunities and capabilities do not match, management must consider the potential for expanding or changing capabilities to take advantage of those opportunities.
Concurrent Engineering
Computer-Aided Design
Production Requirements
Component Commonality
Design Techniques for Production:
This refers to a situation in which one component is common to more than one item. Companies often have multiple products or services with a high degree of similarity of features and components. For example, car manufacturers employ component commonality by using internal components such as water pumps and engines. Meanwhile, as an example for services, commonality and substitutability of parts are typical in appliance repair.
Concurrent Engineering
Computer-Aided Design
Production Requirements
Component Commonality
It refers to an “act” done to or for a customer. It is provided by a service delivery system, which includes the facilities, processes, and skills needed to provide the service.
Service
Product Bundle
Customer-oriented
Service Package
Many services are not pure services but part of a _______ that combines goods and services provided to a customer. For example, when a customer buys an air conditioner unit from Abenson, s/he can also avail of their installation service.
Service
Product Bundle
Customer-oriented
Service Package
The ability to create and deliver reliable ________ is often a key competitive differentiator. Successful companies combine ________ with their products.
Service
Product Bundle
Customer-oriented
Service Package
It is a bundle of explicit and implicit benefits performed with a supporting facility and using facilitated goods. For instance, when you eat at a fast-food restaurant (supporting facility), you may purchase a hamburger (facilitating good) cooked (service) by someone else.
Service
Product Bundle
Customer-oriented
Service Package
These are purchased or consumed by the customer or provided with the service.
Accompanying Goods
Explicit Services
Implicit Services
Service Package
These are benefits readily observable by the senses or the essential features of a service, such as the quality of food in a restaurant and on-time departure of flights.
Accompanying Goods
Explicit Services
Implicit Services
Service Package
These are the “extra” features of a service, such as privacy features of a loan office and the security of a well-lighted parking lot.
Accompanying Goods
Explicit Services
Implicit Services
Service Package
This can be a strong incentive for design improvements; it is the responsibility of a manufacturer for any injuries or damages caused by a faulty product because of poor workmanship or design.
Product Liability
Safety and Liability
Adding product/service features
Cultural factors
These are two (2) critical issues in many instances. Producers must ensure that products are not harmful to consume; in any case, producers must be liable for any form of negligence.
Product Liability
Safety and Liability
Adding product/service features
Cultural factors
Most companies believe that adding new features to the product or service gives them a competitive edge. This idea has its obvious benefits; however, anything too much is not good and might become a source of customer dissatisfaction. For instance, handheld devices that continue to offer new features and more complexity while shrinking in size may result in low consumer ratings regarding “ease of use.”
Product Liability
Safety and Liability
Adding product/service features
Cultural factors
These factors encompass the set of beliefs, moral values, traditions, language, and laws (or rules of behavior) held in common by a nation, a community, or other defined group of people, which must be taken into consideration the effects of cultural differences on product design (IGI Global, 2021). This can result in different designs for different countries or regions. For example, McDonald’s has regionalized its menu items to conform to local culinary preferences, laws, and religious traditions; wherein, the Philippines has spaghetti and cheesy butter French fries in their menu; while South Korea has shrimp and pork burger, and affogato (vanilla gelato with a shot of hot espresso).
Product Liability
Safety and Liability
Adding product/service features
Cultural factors
This is also known as life cycle analysis; it assesses the environmental impact of a product or service throughout its useful life, focusing on factors such as global warming, smog (smoke and fog) formation, oxygen depletion, and solid waste generation.
Cradle-to-Grave Assessment
End-of-Life Programs
Reduce: Value Analysis
Reuse: Remanufacturing
Recycle
These deal with products that have reached the end of their useful lives. The products include both consumer products and business equipment. The purpose of these programs is to reduce the dumping of products, particularly electronic equipment, in landfills or third-world countries, as it has been the common practice—burning wastes which converts materials into hazardous air and water emissions and generates toxic ash.
Cradle-to-Grave Assessment
End-of-Life Programs
Reduce: Value Analysis
Reuse: Remanufacturing
Recycle
It refers to examining the function of parts and materials to reduce the cost and/or improve the performance of a product.
Cradle-to-Grave Assessment
End-of-Life Programs
Reduce: Value Analysis
Reuse: Remanufacturing
Recycle
It refers to refurbishing used products by replacing worn-out or defective components and reselling products.
Cradle-to-Grave Assessment
End-of-Life Programs
Reduce: Value Analysis
Reuse: Remanufacturing
Recycle
It means recovering materials for future use. This applies not only to manufactured parts but also to materials used during production. Companies use this for a variety of reasons, such as cost-saving and environmental concerns and regulations.
Cradle-to-Grave Assessment
End-of-Life Programs
Reduce: Value Analysis
Reuse: Remanufacturing
Recycle
A product begins with an idea. Within the confines of modern business, it isn’t likely to go further until it undergoes research and development (R&D) and is feasible and potentially profitable. At that point, the product is produced, marketed, and rolled out.
Product or Service Life Stages
Standardization
Mass Customization
Reliability
This refers to the extent to which variety is absent in a product, service, or process.
Product or Service Life Stages
Standardization
Mass Customization
Reliability
This is a strategy of producing standardized goods but incorporating some degree of customization.
Customers prefer more variety in the products they purchase or services they avail of even though they like the low cost. Producers become conflicted about whether to resolve these issues without losingthebenefitsofstandardizationandincurringahostofproblemsthatareoftenlinkedtovariety which are possible through mass customization.
Product or Service Life Stages
Standardization
Mass Customization
Reliability
It measures the ability of a product, a part, a service, or an entire system to perform its intended function under a prescribed set of conditions. Its potential buyers emphasize reliability in comparing alternatives and by the seller as a determinant of price. It impacts repeat sales which reflect on the product’s image, and if it’s too low, legal implications might be needed. Reliability is also considered for sustainability: The higher the reliability of a product, the fewer the resources that will be needed to maintain it, and the less frequently it will involve the three Rs
Product or Service Life Stages
Standardization
Mass Customization
Reliability
These designs result in products or services that can function over a broad range of conditions. The more robust a product or service, the less likely it will fall due to a change in the environment. For example, fine leather boots are not made for mud, while heavy rubber boots are designed for it; therefore, the rubber boots have a design that is more robust than that of fine leather boots.
Robust Design
Degree of Newness
Mass Customization
Quality Function Deployment
The degree of change affects the: (1) newness to the organization where a low level can mean a fairly quick and easy transition to producing the new product; while a higher level indicates slower, more difficult, and more costly transition; and (2) the newness of the market where a low level would mean little difficulty with market acceptance, but possibly low profit potential.
Robust Design
Degree of Newness
Mass Customization
Quality Function Deployment
This is a structure approach for integrating the “voice of the customer” into both the product and service development process.
Robust Design
Degree of Newness
Mass Customization
Quality Function Deployment
In Product Life Cycle:
This phase generally includes a substantial investment in advertising and a marketing campaign focused on making consumers aware of the product and its benefits.
Introduction
Growth
Maturity
Decline
In Product Life Cycle:
If the product is successful, it then moves to the growth stage. This is characterized by growing demand, an increase in production, and expansion in its availability.
Introduction
Growth
Maturity
Decline
In Product Life Cycle:
This is the most profitable stage, while the costs of producing and marketing decline.
Introduction
Growth
Maturity
Decline
In Product Life Cycle:
A product takes on increased competition as other companies emulate its success— sometimes with enhancements or lower prices. The product may lose market share and begin its decline.
Introduction
Growth
Maturity
Decline
This type of Mass Customization:
This is the process of producing, but not quite completed, a product or service until customer preferences are known. For example, furniture makers can create dining sets but not apply stain to allow customers to choose their preferred color
Delayed Differentiation
Modular Design
This type of Mass Customization:
This is a form of standardization in which parts are grouped into modules that are easily replaced or interchanged. For instance, Dell has successfully used modular design to become a dominant force in the PC industry by offering consumers the opportunity to configure modules according to their specifications.
Delayed Differentiation
Modular Design
It is based on robust design. It is easier to design a product that is sensitive to environmental factors, either in manufacturing or use, than to control the environmental factors.
Delayed Differentiation
Modular Design
Taguchi’s Approach
Parameter Design
This approach’s central feature involves determining the specification settings for both the product and the process that will result in robust design in terms of manufacturing variations, product deterioration, and conditions during use.
Delayed Differentiation
Modular Design
Taguchi’s Approach
Parameter Design
It is a theory of product and service design developed by a Japanese professor, who offered a perspective on customer perceptions of quality that is different from the traditional view that “more is better.” Instead, he proposed different quality categories and posited that understanding them would better position designers to assess and address quality needs.
Kano Model
Basic Quality
Performance Quality
Excitement Quality
It refers to customer requirements that have only a limited effect on customer satisfaction if present but lead to dissatisfaction if not present. For instance, putting a very short cord on an electrical appliance will likely result in customer dissatisfaction, but beyond a certain length (e.g., 3 feet), adding more cord will not lead to increased levels of customer satisfaction.
Kano Model
Basic Quality
Performance Quality
Excitement Quality
It refers to customer requirements that generate satisfaction or dissatisfaction in proportion to their level of functionality and appeal. For example, increasing the tread life of a tire or the amount of time house paint will last will add to customer satisfaction.
Kano Model
Basic Quality
Performance Quality
Excitement Quality
It refers to a feature or attribute that was unexpected by the customer and causes excitement, such as a voucher for dinner at a hotel when checking in.
Kano Model
Basic Quality
Performance Quality
Excitement Quality
is a creative process that encompasses generating, developing, and communicating new thoughts and concepts, which become the basis of your innovation strategy
Idea Creation or Ideation
Customers
Competitors
Suppliers
Research and Development
Source of Ideas:
These inputs can come from surveys, focus groups, complaints, and unsolicited suggestions for improvement. Input from suppliers, distributors, and employees can be obtained from interviews, direct or indirect suggestions, and complaints.
Idea Creation or Ideation
Customers
Competitors
Suppliers
Research and Development
Source of Ideas:
One of the strongest motivators for new and improved products or services is competitors. An organization can obtain many ideas by studying a competitor’s products or services and how the competitor operates, such as pricing policies, return policies, warranties, location strategies, etc.
Idea Creation or Ideation
Customers
Competitors
Suppliers
Research and Development
Source of Ideas:
They are still another source idea, and with increased emphasis on supply chains and supplier partnerships.
Idea Creation or Ideation
Customers
Competitors
Suppliers
Research and Development
Source of Ideas:
This refers to organized efforts that are directed toward increasing scientific knowledge and product or process innovation.
Idea Creation or Ideation
Customers
Competitors
Suppliers
Research and Development
It is the act of purchasing a competitor’s product and then carefully dismantling and inspecting it, searching for ways to improve their own product.
Reverse Engineering
Basic Research
Applied Research
Developmental Research
This aims to advance the state of knowledge about a subject without any near- term expectation of commercial applications.
Reverse Engineering
Basic Research
Applied Research
Developmental Research
In contrast to basic research, this research aims to achieve commercial applications.
Reverse Engineering
Basic Research
Applied Research
Developmental Research
This research converts the results of applied research into useful commercial applications.
Reverse Engineering
Basic Research
Applied Research
Developmental Research
