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

2. 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.

3. 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.

4. 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

5. 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

6. 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.

7. 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

8. 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)

9. 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

10. 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

11. 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.

12. 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

13. 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

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

15. 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

16. 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

17. 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