TOPIC : PRODUCT AND SERVICE DESIGN UNIT -3 TOPIC : PRODUCT AND SERVICE DESIGN

PRODUCT DESIGN Product : one of the 4Ps of marketing It is bundle of benefits or any offering that fulfills customer demand. Design of the product to a great extent determines the success and failure of the product. Product design encompasses; Appearance Set of standards for performance Materials to be used Dimensions and tolerance etc.

Characteristics of an effective design process Design meets customer expectation Simple and least costly way of meeting customer needs. Low lead time for new product and service design Minimizes revision necessary to make design workable or better.

Types of product design Modified Product : any alteration, changes in the features of the product Innovative product : totally new product : These two are possible in two ways Pure Research Applied research (implementation) Outside experts, marketing personnel, consultants, Research institutions, Universities Manpower, machinery & equipment, Schedule, Management and information etc

Sources of New Product Design Internal Sources External sources Sales personnel Customers Marketing personnel Competitive products R & D Foreign products Top Management executives Consultants Production Department Ad agencies Purchase Department Research consultancies Customer Service division Distribution channels Employee suggestion systems

scopes/ aims of product design Form design : how should the form/ shape look like? It is concerned with appearance and aesthetic consideration, size, volume, weight. Process design : concerned with overall sequence of operation, choosing the best process (job shop, batch, continuous,) to support the product design Function design: : identifying and imbedding the core functions in product.

Reasons for product design For business Profit Customer satisfaction Achieve desired product quality Reduce development time and cost For diversification (related and unrelated both) To compete

Concept service design Service is intangible and perishable benefit that satisfies customer’s need. Service is created and instantly consumed ( think critically where this statement may not hold valid)

Characteristics of service Intangible Service out is variable Higher customer contact Higher customer involvement Perishable Inseparability of ownership Easily emulated Its experienced not consumed No inventory requirement

Characteristics of service design Consistent with organizational mission User friendly Robust if variability ( variability should not affect the quality of service) Cost effective Sustainable Value Reliability

Challenges of service design Maintaining robustness in variability. Verbal description of service requirement is difficult High customer contact Service design must consider service encounter; a transactional interaction between the service provider and client.

Guidelines for service design Define service package in detail Customer orientation Image of service package must appeal the customers Top management support Define tangible and intangible benefits Appropriate HR to deliver the service get prepared for contingencies Information Management

Product Development Process Need identification Feasibility study/ product planning Advance design Detailed engineering design Production process design and development Product evaluation and improvement Product use and support

Difference between product and service design Explain the difference between product and service

Emerging issues in product and service design Managing multiple customers : Understanding the product and service concept Managing the outcomes and experience Managing in real – time – product can be reworked but some services can not be redone- wrong surgery Knowing, implementing and influencing strategy Continuous improvement Encouraging innovation Managing short and long term issues

Types of process Manufacturing process Service process Project process : bridge, buildings, hydro power projects Job shop : saloon, bike workshops, printing, tailoring Batch process : bread, biscuit, Assembly line process : specialized equipment skilled manpower etc. automobile industry Continuous process : standardized products high volume, - bottling Service process Customer contact Labour vs. capital intensive

Types of labour vs. capital intensive service process technology Low Customer contact High Quasi- manufacturing technology - Postal service, cheque processing, automatic warehousing Custom shop service technology Long distance telephone Medical treatment Charter travel service Capital Intensive Mass service process technology Teaching Live entertainment Cafeteria Professional service technology Legal consulting Medical diagnosis Tutoring Auditing Labour Intensive Rigid Process Tech Flexible process