CHAPTER 4

4.1. Introduction

“Product or service design should be on customer satisfaction.”

Various activities and responsibilities of product or service design:

1. Translate customer wants and needs into product and service requirements (marketing,
operations)
2. Refine existing products and services (marketing)
3. Develop new products and/or services (marketing, operations)
4. Formulate quality goals (marketing, operations)
5. Formulate cost targets (accounting, finance, operations)
6. Construct and test prototypes (operations, marketing, engineering)
7. Document specifications
8. Translate product and service specifications into process specifications (engineering,
operations)

“Product and service design (PSD) have major involvement with marketing and operations”

Objectives of PSD
A. Primary consideration: Customer satisfaction.
B. Secondary considerations: Cost or profit, quality, ability to produce a product or provide a
service, ethics/safety, and sustainability.

Key Questions
1. Is there demand for it?
2. Can we do it?
1. Product POV: “ Manufacturability” The capability of an organization to produce an item
at an acceptable profit.
2. Service POV: “Serviceability” - The capability of an organization to provide a service at
an acceptable cost or profit.
3. What level of quality is appropriate?
4. Does it make sense from economic standpoint?

Reasons for PSD or Redesign

• Main Purpose: Strategic implications (long-term benefits)

4.2. Idea Generation

Reverse engineering - Dismantling and inspecting a competitor’s product to discover product

improvements.

Example: FINE SHYT Company notice that their product is not performing well. While checking the
market, he notice that JOAQ Company, their competitor, is performing well in the market. So, FINE
SHYT Company will use “reverse engineering” to study on how their competitor operates on their
product and searching a way to improve it.

“Reverse engineering is often use this in Automative companies to develop new models.”

“Reverse engineering is illegal under “Digital Millennium Copyright Act” (Idk if this apply in the
Philippines)”
Research and development (R&D) - Organized efforts to increase scientific knowledge or product
innovation.

R&D efforts involve:

1. Basic research - has the objective of advancing the state of knowledge about a subject,
without any near-term expectation of commercial applications.
2. Applied research - has the objective of achieving commercial applications.
3. Development - converts the results of applied research into useful commercial applications.

Three distinctions (My own understanding)

1. Basic research - for advance knowledge only of the country, no expectation to use in
commercial
2. Applied research - plans to use to achieve commercial (research that can be used to
commercial
3. Development - using the results of applied research into commercial production

“R&D costs are high”

4.3. Legal and ethical considerations

Product liability - is the responsibility of a manufacturer for any injuries or damages caused by a
faulty product because of poor workmanship or design.

Example is the Samsung S7, kung saan sumabog yung mga phone causing people to panic to use
the phone.

Uniform Commercial Code - A product must be suitable for its intended purpose. Product must
carry “merchantability and fitness”

Organization designs product that adheres to the guidelines:

1. Produce designs that are consistent with the goals of the organization.
2. Give customers the value they expect.
3. Make health and safety a primary concern.

4.4. Human factors

“Human factor issues often arise in the design of consumer products”:

1. Safety
2. Liability
3. New features
1. Creeping featurism - particularly evident in electronic products such as handheld
devices that continue to offer new features, and more complexity, even while they are
shrinking in size.
Example of this is APPLE PRODUCTS.

4.5. Cultural Factors

“Products offer by the company is aligned to the cultural belief of the people living in the community”
4.6. Global product and service design

“Discovering advantages in global product design, which uses the combined efforts of a team of
designers who work in different countries and even on different continents.”

Example of this is virtual teams like virtual assistant and or any virtual related work

“Provide design outcomes that increase the marketability and utility of a product.”

“Care must be taken (due to diversity), to avoid miscommunication

4.7. Environmental factors

Product and service design is a focal point in the quest for sustainability.

1. Cradle-to-grave assessment (aka Life Cycle Analysis) - The assessment of the

environmental impact of a product or service throughout its useful life. Focused on PS that
have least environmental impact but high economic.
2. End-of-life (EOL) programs - deal with products that have reached the end of their useful
lives. (Talks about the reducing of decomposing of product and equipment)

3. Three Rs

Reduce: Value Analysis

Value analysis - examination of the function of parts and materials in an effort to reduce cost
and/or improve product performance.

Example: using a cheaper materials but these materials are high quality.

Reuse: Remanufacturing
Remanufacturing - refurbishing used products by replacing worn-out or defective
components.

Example: using old jars for storage purposes (for palapa and other commodities)

Design for disassembly (DFD) - design so that used products can be easily taken apart.

Recycle
Recycling - means recovering materials for future use.

Example: using old gadgets and convert into medals. Happened during the 2020 Tokyo
Olympics

Design for recycling (DFR) - design that facilitates the recovery of materials and components
in used products for reuse.

4.8. Other design consideration

“Strategic for Product or Service life stages”

Introduction - may be treated as a curiosity item. Example holiday buying periods can be highly
desirable.

Growth - design improvements and increasing demand yield higher reliability and lower costs,
leading the growth in demand.

Maturity - design changes are needed.

Decline - decisions must be made about whether to discontinue a product or service and replace it
with new ones

“Product Life Cycle Management”

Product life cycle management (PLM) - a systematic approach to managing the series of changes
a product goes through, from its conception (start) to its end-of-life.

Includes all:
1. production processes,
2. business processes,
3. people, and
4. anything else related to the product.

Three stages of PLM:

§ Beginning of life - which involves design and development;
§ Middle of life - which involves working with suppliers, managing product information and
warranties; and
§ End of life - which involves strategies for product discontinuance, disposal, or recycling.

“Degree of standardization”

Standardization - refers to the extent to which there is absence of variety in a product, service, or
process. (Like process costing?)
Advantages and Disadvantages of Standardization

“Design for Mass Customization”

Mass customization - A strategy of producing basically standardized goods, but incorporating some
degree of customization.

Example is Nike by You (Meta AI) (Not sure sa example na ito)

Delayed differentiation - the process of producing, but not quite completing, a product or service
until customer preferences are known.

(The product is complete, but not totally complete, in order to make the product complete, the
customer preferences must be applied)

Example: furniture makers can produce dining room sets, but not apply stain, allowing
customers a choice of stains. Once the choice is made, the stain can be applied in a relatively
short time.

Modular design - a form of standardization in which component parts are grouped into modules that
are easily replaced or interchanged.

Example: One familiar example of modular design is computers, which have modular parts that
can be replaced if they become defective.

Reliability - the ability of a product, part, or system to perform its intended function under a
prescribed set of conditions.

Example: is airplanes because they operate at specific condition such as: turbulence, high
altitudes, and high temperatures.
Another example: smoke alarm used for detecting fire smoke.

Failure - is used to describe a situation in which an item does not perform as intended.

Normal operating conditions - the set of conditions under which an item’s reliability is specified.

Robust design - design that results in products or services that can function over a broad range of
conditions. (Opposite of reliability)

Example: Toyota Hilux Pickup used for any kind of road. (Meta AI, agree)
Taguchi Approach - developed by Genichi Taguchi. His premise, it is often easier to design a
product that is insensitive to environmental factors, either in manufacturing or in use, than to control
the environmental factors.”

“Degree of Newness.

Design change can range from the modification of an existing product or service to an entirely new
product or service:
1. Modification
2. Expansion of existing line
3. Clone of competitor’s PS
4. New PS

Low level of newness = easy to transition to producing of new product. Low level of profit potential

High level of newness = difficult to transition. Rapid gain of profit potential

“Quality Function Deployment”

Quality function deployment (QFD) An approach that integrates the “voice of the customer” into
both product and service development.

Example of this is Instant Pot, where the owner considered his customer comments to
improve his product.

“Kano Model”

Kano Model - developed Dr. Noriaki Kano, offered a perspective on customer perceptions of quality
different from the traditional view that “more is better.”
• proposed different categories of quality and posited that understanding them would better
position designers to assess and address quality needs.

Three categories of Kano model:

1. Basic quality - refers to customer requirements that have only a limited effect on customer
satisfaction if present, but lead to dissatisfaction if not present.
2. Performance quality - that generate satisfaction or dissatisfaction in proportion to their level
of functionality and appeal. (The decision maker of the customer satisfaction)
3. Excitement quality - refers to a feature or attribute that was unexpected by the customer and
causes excitement (the “wow” factor),

“Over time, features that excited become performance features, and performance features soon
become basic quality features,”

(So dapat everytime maglalabas ng new product dapat may new function.)

Example of Kano model is when company releases new type or enhance type of product. Such
as K-Pop Lightstick. Or like iPhone products
4.9. Phases in Product Design and Development

1. Feasibility analysis
2. Product specifications. detailed descriptions of what is needed to meet (or exceed) customer
wants.
3. Process specification.
4. Prototype development
5. Design review
6. Market test
7. Product introduction
8. Follow-up evaluation

4.10. Designing for production

Concurrent engineering (other name; Simultaneous development) - bringing engineering design

and manufacturing personnel together early in the design phase.

Computer-aided design (CAD) - product design using computer graphics.

Design for manufacturing (DFM) - The designing of products that are compatible with an
organization’s capabilities.

Design for assembly (DFA) - Design that focuses on reducing the number of parts in
a product and on assembly methods and sequence.

Manufacturability - The capability of an organization to produce an item at an acceptable profit.

*Manufacturability - is sometimes used when referring to the ease with which products can be
fabricated and/or assembled.

Component commonality - Companies often have multiple products or services to offer customers.
Often, these products or services have a high degree of similarity of features and components.

4.11. 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.

Example is when you are in hospital, they are using goods during your hospital stay or surgery
and using their intellectual skill to their patient (service).

Service package - the physical resources needed to perform the service, the accompanying goods,
and the explicit and implicit services included.

Example: using car repair tools to repair the customer’s car.

Service blueprint - a method used in service design to describe and analyze a proposed service.