Good and Service designChapter 6

Why good and service design is important? Poor good and service design would

cause rejection from customers Not meeting customer expectation and

demand It is an important strategic decision

because choice of design and process of producing goods and services are depended on the operational capability of the company

Product and process design in manufacturing Concept development involves

proposing and evaluating potential customer benefit package (CPB) ideas for feasibility.

-understanding of customer needs and target markets and the value that customers place on attributes

Product and process design in manufacturing• Prototype testing is the process by

which a model (real or simulated) is constructed to test the goods’ physical properties or use under actual operating conditions, as well as consumer reactions to the prototype.

• Goods that are insensitive to external sources of variation are called robust.

Product and process design in manufacturing• Quality engineering refers to a

process of designing quality into a manufactured good based on a prediction of potential quality problems prior to production.

• Value engineering refers to cost avoidance or cost prevention before the good or service is created.

Product and process design in manufacturing• Value analysis refers to cost reduction of the

manufactured good or service process.

• Design reviews ensure that all important design objectives are taken into account during the design process.

FMEA: Failure-Mode-and-Effects-Analysis

A technique in which each component of a product is listed along with the way it may fail, the cause of failure, the effect or consequence of failure, and how it can be corrected by improving the design.

Product and process design in manufacturing DFM: Design for Manufacturability

A technique for evaluating product designs to ensure they can be built efficiently using available technology.

Product and process simplification is the process of trying to simplify designs and reduce complexity an costs and thus improve productivity, quality, flexibility, and customer satisfaction.

Product and process design in manufacturing• Modular design entails designing

goods using modules that can be configured in many different ways, resulting in higher product variety and ease of assembly.

• A focus on improving the environment by better good or service design is often called green manufacturing or green practices

Product and process design in manufacturing• Reliability: the probability (a value between

0 and 1) that a manufactured good, piece of equipment, or system performs its intended function for a stated period of time under specified operating conditions.

• Two types of failures:• Functional: failure that occurs in a product’s life

due to manufacturing or material defects.• Reliability: failure that occurs after some period of

use.

Service design and process Service delivery system design includes the following:

Facility location and layout -Location creates customer’s convenience. The Internet is making physical locations less important for some information-intensive services

The servicescape- All of the physical evidence a customer might use to form an impression. The servicescape provides the behavioral setting where service encounters take place.

eg Ambient conditions – manifest by sight, sound, Spatial layout and functionality – how furniture, equipment, and office spaces are arranged, Signs, symbols, and artifacts – explicit signals that communicate image of the firm; diplomas hanging on the wall in a medical clinic Process and job design - The activity of developing an efficient

sequence of activities to satisfy internal and external customer requirements

Technology and information support systems- Technology ensures speed, accuracy, customization, and flexibility

Organizational structure - Organize by process or by function

Service design and process Service Delivery System Design

• A poor choice on any one of these service delivery system design components, such as technology or job design, can degrade service system efficiency and effectiveness.

• Integrating all of these elements is necessary to design a service that provides value to customers and can create a competitive advantage.

Service design and process Service encounter design focuses on

the interaction, directly or indirectly, between the service provider and the customer. Recognition and reward, and Service recovery and guarantees

Service design and process

Service encounter design- Focus directly on the interaction directly or indirectly, between service provider and customer Customer contact refers to the physical or virtual

presence of the customer in the service delivery system during a service experience.

High customer contact areas of the organization are sometimes described as the "front room or front office" and low customer contact areas as "back room or back office."

Examples of high-contact systems are estate planning and hotel check-in.

Examples of low contact systems are construction services and package sorting and distribution

Service design and processService-Provider Selection, Development,and Empowerment

• Hire the right people, train then well, empower them, recognition and reward.

• A script dialogue is a prescribed response to a given service situation.

Empowerment simply means giving people authority to make decisions based on what they feel is right, to have control over their work, to take risks and learn from mistakes, to promote change.

Give them recognition and reward

Service design and process• A service upset is any problem a

customer has – real or perceived – with the service delivery system and includes terms such as service failure, error, defect, mistake, or crisis.

• Service recovery is the process of correcting a service upset and satisfying the customer.

Service design and process• Video or audiotapes demonstrating good

and bad service incidents and how the service-providers should handle them are often used to train service-providers.

• Script dialogues are used to train service-providers and represent the official company response to each type of service upset, error or mistake

Service design and process Design Speed

Design speed is the time it takes from the conception of an idea for a good, service, or CBP until it is available to customers.

Concurrent engineering is a process in which all major functions are involved with product development from conception through sales.

Service design and process Quality function deployment (QFD)

is both a philosophy and a set of planning and communication tools that focus on customer requirements in coordinating the design, manufacturing, and marketing of goods or services.

Class activityIdentify ONE service business and explain its design and process that have successfully attracted you to go there

Case study Southwest Airline