Module 3
The essence of an organization is the goods (products) and services it offers. Hence, every aspect of the
organization is structured around the design of these products and services
Product and service design should be closely tied to an organization’s strategy
Properly Designed product and service is very important: if poorly designed, it could lead to faulty
design, incorrectly implemented that could lead to service failures, injuries, lawsuits, product recalls, etc.
Ex: food products
What does product and service design do?
-translate customer wants and needs into product and service requirements (marketing, operations)
through survey and feedbacks
-refine existing products and services (marketing) Ex: enhanced sound for laptops, updating of office
apps, updating online payment solutions
-develop new products and services (marketing and operations) Ex: earphone with Bluetooth,
augmented reality headset prototype to remain relevant in the market
-formulate quality goals (marketing, operations)
-formulate cost targets (accounting, marketing, operations)
-product and service design entails quality goals and cost targets
-construct and test prototypes (marketing, operations, engineering) *sample or model as a basis for
standard
-document specifications *stating precise requirement; its purpose is to control how an item is to be
manufactured or rendered and thereby control the material features and properties, performance, and
reliability of the process output
-translate product and service specifications into process specifications (engineering and operations) *a
detailed set of instructions outlining a business procedure
-involve inter-functional collaboration
Outsourcing=from other companies
Fit with current offering=current market
Reasons to Design or Re-Design (product or service)
Re-design=existing na
Design=new
=the driving forces for product and service design or redesign are market opportunities or threats:=
1. Economic
-low demand
-the need to reduce costs
*integrating cost analysis into early product design because the design of the product determines the
final cost
2. Social and demographic
Ex: aging baby boomers, population shifts; fitting the demand within the market
3. political, liability, or legal
Ex: safety issues, new regulations, government changes
-DESIGN PRODUCTS THAT ARE FREE OF HAZARDDS
-ECOFRIENDLY PRODUCT
4. Competitive
-new products and services, new advertising/promotion
-use of cash registers vs adopting a system in supermarkets
-web page for advertising or promotion vs use of flyers or brochures
-use of printed questionnaire in Research and Design vs use of google forms or other online platforms
5. Cost or availability
-raw materials, labor, energy, etc
-during covid, wine manufacturers shifted to alcohol manufacturing
6. Technological aspect
-ex: product componnts, processes
-with the advancement of technology, it can directly and indirectly affect product and service design. It is
undeniable that new technology should be adopted in the design or re-design of products and servies to
remain efficient and competitive in the market
Can a complaint from a customer become a basis for generating new ideas to redesign? YES
Idea Generatiion (main sources of designd)
[Link]-Chain Based
Ideas can come from anywhere in the supply chain:
-customers, suppliers, distributors, employees, and maintenance and repair personnel
2. Competitor Bases
-reverse engineering; dismantling and inspecting a competitor’s product to discover product
improvements
3. Research Based
-Research and Development (R&D)
-Legal Considerations-
-product liability: responsibility of a manufacturer has for any injuries or damages caused by a faulty
design. Potential harm to the environment or to humanity
Ex: automobile pollution, safety issues (airbags, seatbelts, energy-absorbing bumpers etc)
-There are costs if you are not producing output without quality
-Ethical Considerations-
*doing what is right
-designers must adhere to guidelines such as (legal and ethical considerations):
-produce designs that are consistent with the goals of the organization
-give customers the value they expect
-make health and safety a primary concern
Other factors to be considered in the design of products and services:
-Human Factors: safety and liability are 2 critical issues
*Including adding new features that can contribute to “ease of use”
-Cultural Factors: designers must account for any cultural differences related to product which means
different design for different countries or regions
Ex: food preference of the culture
-Sustainability-
-using resources in ways that do not harm ecological systems that support human existence
Key Aspects of Designing for Sustainability
1. Cradle to Grave Assessment
-aka Life Cycle Analysis
-not only considering the design, but also the disposal of the product when they are already old
or ended their useful life
-assessment of environmental impact of a product or service throughout its useful life
-focuses on such factors such as:
Goal of LCA:
-choose products and services that have least environmental impact while still taking into
account economic considerations
2. The 3-Rs
Reduction of Costs and materials used
-value analysis: examination of function of parts in an effort to reduce cost
Re-using parts
-Remanufacturing
-refurbishing used products
Recycling
-recovering materials for future use
-applies to manufactured parts as well as materials used in production
Why recycle?
-cost savings, environmental concerns, environmental regulations
-Product or Service Life Stages-
1. Introduction Phase: product or service is introduced and maybe treated as curiosity item
Ex: samples and getting feedback
[Link] Phase: over time, design improvements and increasing demand yield higher reliability and
lower cost leading the growth of demand
[Link] Phase: where demand levels off, few, if any, design changes are needed. Generally, costs are
low, and productivity is high. New uses for products and services can extend their life.
4. Decline Phase: decisions be made on whether to stop a product or service and replace it with new one
or abandon the market or to attempt to find new users or find new uses for the existing product or
service
Different phases or stages call for different strategies. Forecast of demand and cash inflow are the key
inputs for strategy
-some products do not exhibits life cycles, most new products do.