1 THE DESIGN OF PRODUCTS & SERVICES

2 All products and services can be considered as having 3 aspects :  a concept, which is the set of expected benefits that the customer is buying  a p ackage of “components) products and services that provide those benefits defined in the concept  the p rocess, which defines the relationship between the “components” products and services. What is designed in a product or service?

3 Example What do you think is a “good design” for: a product such as a washing machine a restaurant meal What is designed in a product or service?

4 Answer (washing machine) When customers make a purchase, they are not simply buying a product or service; they are buying a set of expected benefits to meet their needs and expectations, i.e. they buy the concept of the product or service. In the washing machine, they purchase a set of expected benefits including: an attractive metal box that will fit in a conventional space and will provide the means of cleaning clothes over a long period of time. They also buy (package) services such as: “warranties”, “after-sales service” and the “service of the person selling the machine”. Here core product is the machine itself, while supporting goods and service are: the attractive box and guarantees. What is designed in a product or service?

5 Answer (restaurant meal) Restaurant: they purchase a set of expected benefits, concept, including: an attractive environment in which to consume a well cooked and presented meal in a relaxing atmosphere. They buy (package): products such as: “food” and “drink”. services such as: “the delivery of the food to the table” and “the attentions of the waiter(ess). Here core product is the meal itself; while “the provision and preparation” are important but not absolutely necessary. In some restaurants you may serve (self-service concept) and even cook the meal yourself. What is designed in a product or service?

6 PRODUCT DESIGN Certainty regarding the final design Uncertainty regarding the final design Time One design The Stages of Product/Service Design / The Design “funnel”

7 PRODUCT DESIGN QUESTION Do you agree with the design funnel concept?

8 Ideas from Competitors: Ideas from customers : Ideas from R & D: Ideas from customers : Concept generation Product: Salesman Service: Contact person Research: to develop new knowledge and ideas in order to solve a particular problem or to grasp an opportunity Development is the attempt to try to utilize and operationalize the ideas that come from research Reverse Engineering Focus groups Listening to customers

9 Reverse Engineering refers to carefully dismantling and inspecting a competitor’s product: to understand how the competitor has made it to look for design features that can be incorporated into your own product Examples Product: Ford used this approach successfully in the Taurus model, assessing 400 features of competitors’ products and copying, adapting or enhancing more than 300 of them including Audi’s accelerator pedal, Toyota’s fuel-gauge accuracy, and BMW’s tire and jack storage Service: Maybe difficult to reverse engineering (especially back-office services) as they are less transparent to competitors. Some use consumer testing, e.g. supermarkets investigate new services such as delivery, telephone ordering. Concept generation

10 Focus group It typically comprises 7-10 participants who are unfamiliar with each other They have been selected because they have certain characteristics in common that relate to the particular topic Participants are invited to “discuss” or “share ideas with others” The concept researcher tries to create an environment that nurtures (τρέφει) different perceptions and points of view without pressurizing participants The group discussion is conducted several times with similar types of participants in order to identify trends and patterns in perceptions. Concept generation

11 The stages of product/service design Concept generation Screening Preliminary design Evaluation & improvement Prototyping & final design The concept The package The process Ideas for a product/service: From various departments in the oranisation The agreed concept turns into: Check if concept can be served better, easier and cheaper The agreed design turns into: Result:

12 concept 1. Form The overall shape of the product or service 2. Function The way in which the product or service operates 4. Benefits The advantage the product or service will bring to customers 3. Purpose The need the product or service is intended to satisfy Idea Transforming an idea into a concept

13 A holiday which is: one week long residential multi-activity adventure in a safe but excitingσε environment for year old boys and girls away from their parents Idea Adventure holiday for young people Concept Idea An inexpensive telephone A telephone which is: in lower quartile price range multi-colored fashionably styled easy to use dual position capable of use with two carriers Transforming an idea into a concept

14 PRODUCT DESIGN: STAGES - SCREENING The purpose is to take the flow of concepts and evaluate them for their: acceptability feasibility, vulnerability.

15 Does the option satisfy the performance criteria which the design is trying to achieve? Will our customers want it? Good ROI? Acceptability: Do we want to do it? Do we have the skills (quantity or resources) to cope with this option? Do we have the organizational capacity (quantity or resources) to cope with this option? Do we have the financial resources to cope with this option? Feasibility: Can we do it? Do we understand the full consequences of adopting the option? Being pessimistic, what could go wrong if we adopt the option? What would be the consequences of everything going wrong? Vulnerability: Do we want to take the risk? PRODUCT DESIGN: STAGES - SCREENING

16 Having an acceptable product/service concept, then through the preliminary design we attempt: to specify the components products and services in the package, and to define the processes to create the package EXAMPLE Create the components structure of the “package” telephone PRODUCT DESIGN: STAGES – PRELIMINARY DESIGN

17 The first task is to specify the components of the package. This means collection of info about such things susch as: The constituent component parts, which make up the product/service The component or prouduct structure, i.e. the order in which the components parts of the package have to put together, and The Bill of Materials (BOM), i.e. the quantities of each component part required to make up the total package. Specify the components of the package PRODUCT DESIGN: STAGES – PRELIMINARY DESIGN

18 EXAMPLE: Components structure of the package telephone CordCircuit board CasingCircuit board CableCasingLevel 2 HandsetBaseLevel 1 TelephoneLevel 0 MouthpieceEarpiecePlugLeadLevel 3 PRODUCT DESIGN: STAGES – PRELIMINARY DESIGN

19 EXAMPLE: Components structure of the package telephone -> BOM Level 0Level 1Level 2Level 3Quantity Telephone Base1 Casing1 Cable1 Lead1 Plug1 Circuit board1 Handset1 Casing1 Circuit board1 Earpiece1 Mouthpiece1 Cord1 PRODUCT DESIGN: STAGES – PRELIMINARY DESIGN

20 Design for easy of Production: Interchangeable parts Standardization Modularization PRODUCT DESIGN: STAGES – PRELIMINARY DESIGN

21 Evolution & Improvement The concept Outcome: To see if concept can be served better, easier & cheaper PRODUCT DESIGN: STAGES Preliminary design Screening Concept generation

22 Techniques 1. Value Engineering 2. Failure Mode and Effect Analysis (FMEA) 3. Quality Function Deployment (QFD) 4. Taguchi methods of Designing Experiments PRODUCT DESIGN: STAGES – EVOLUTION & IMPROVEMENT

23 Prototyping & final design The agreed design is then subjected to: PRODUCT DESIGN: STAGES Evolution & Improvement Preliminary design Screening Concept generation It turns the improved design into a prototype, so that it can be tested. It will be risky to go into full production before testing the product or service

24 PRODUCT DESIGN: STAGES – PROTOTYPYING & FINAL DESIGN It will be risky to go into full production before testing the product or service ANY EXAMPLE? Prototyping & final design Evolution & Improvement

25 It turns the improved design into a prototype, so that it can be tested. It will be risky to go into full production before testing the product or service e.g Olympic games Methods Virtual prototyping - store data that defines a product/service in a digital format on computer systems, which allows this virtual prototype to be tested in much the same way as a physical prototype. Examples: magazine publishing CAD – provides the computer-aided ability to create and modify product drawings. PRODUCT DESIGN: STAGES – PROTOTYPYING & FINAL DESIGN

26 production Production engineering Product design Sequential Design [=traditional] Time to market Production Product design Production engineering Concurrent Engineering [= modern] PRODUCT DESIGN: STAGES

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