STUDY OUTLINE FOR CHAPTER 4
PRODUCT AND SERVICE DESIGN
1. Why is product or service design strategically important? Product and service design has typically had strategic implications for the success and prosperity of an organization. Furthermore, it has an impact on future activities. Consequently decisions in this area are some of the most fundamental that managers must make.
2. List some of the things that product and service design does. 1)Translates customer wants and needs into product and service requirements. 2)Refine existing products and services. 3)Develops new products and/or services 4)Formulates quality goals, and cost targets.
3. Give a few examples for each of these major reasons for design or redesign: Economic
-low demand, excessive warranty claims, the need to reduce costs.

social and demographic
-Aging baby boomers, population shifts.

political, liability, legal
-Government changes, safety issues, new regulations.

Competitive
-New or changes products or services, new advertising/promotions

cost or availability
-Raw materials, components, labor, water, energy

Technological
-Product components, processes

4. What are the key questions of product and service design? 1)Is there demand for it? What is the potential size of the market, and what is the expected demand profile? 2)Can we do it? Do we have the necessary knowledge, skills, equipment, capacity, and supply chain capability? 3)What level of quality is appropriate? What do customers expect? What level of quality do competitors provide for similar items? 4) Does it make sense from an economic standpoint? What are the potentional liability issues, ethical considerations, sustainability issues, costs, and profits?
5. Briefly define or explain these terms: value analysis
-Examination of the function of parts and materials in an effort to reduce cost and/or improve product performance. manufacturability
-The capability of an organization to produce an item at an acceptable profit. serviceability
-The capability of an organization to provide a service at an acceptable cost or profit. Uniform Commercial Code
-Products carry an implication of merchantability and fitness.

6. What is cradle-to-grave analysis, and why is it becoming increasingly important?
The cradle-to-grave assessment , which is also known as life cycle analysis, is the assessment of the environmental impact of a product or service throughout its useful life, focusing on such factors as global warming smog formation, oxygen depletion, and solid waste generation. For products, the cradle-to-grave analysis takes into account impacts in every phase of a product’s life cycle, from raw material extraction from the earth, or the growing and harvesting of plant materials, through fabrication of parts and assembly operations, or other processes used to create products, as well as the use or consumption of the products, and final disposal at the end of the product’s useful life.

7. What are the 3 Rs?
Reduce, Re-use, and Recycle

8. Why is standardization a factor in design?
Because it simply implies that every customer or item processed receives essentially the same service.

9. What are some key advantages and disadvantages of standardization? Advantages
-Standardized products are immediately available to customers.
-Standardized products mean interchangeable parts, which greatly lower the cost of production while increasing productivity and make replacement or repair relatively.
-Design costs are lower as well.
-Increasing quality and reliability of their products.

Disadvantages
-The reduction in variety
-The reduction creates a risk that a competitor will introduce a better product or greater variety and realize a completive advantage.
-The manufacturer may freeze a design prematurely and, once the design is frozen, find compelling reasons to resist modification.

10. What is mass customization, and why is it used?
-Mass customization is a strategy of producing basically standardized goods, but incorporating some degree of customization. This is used to add skills necessary to produce products, causing a decrease in productivity.

11. Define or explain these two approaches to mass customization: delayed differentiation
-the process of producing, but not quite completing, a product or service until customer preferences are known.

modular design
- a form of standardization in which component parts are grouped into modules that are easily replaced or interchanged.

12. Define these terms reliability
-the ability of a product, part, or system to perform its intended function under a prescribed set of conditions.

robust design
-Design that results in products or services that can function over a broad range of conditions.

13. What is the impact of “newness” on a. operations?
-a lower level operation would mean fairly quick and easy transition to producing the new product, where as a high level of newness would likely mean a slower and more difficult, and therefore moer costly, transition.

b. the market?
-a low level of newness would mean little difficulty with market acceptance, but possibly low profit potential. A high level of newness might mean more difficulty with acceptance or it might mean a rapid gain in market share with a high potential for profits.

14. Explain how global product design can be useful, and some cautions.

Elements that fall into each aspect of quality must first be determined. Once basic needs have been met, additional efforts in those areas should not be pursued. For performance features, cost-benefit analysis comes into place and the features should be included as long as the benefit exceeds the cost.

15. What are the main phases in design and development? 1)feasibility analysis 2)product specifications 3)process specifications 4)prototype development 5)design review 6)market test 7)product introduction 8)follow-up evaluation
16. Define reverse engineering

17. What is concurrent engineering, and why is it important?
-brining engineering design and manufacturing personnel together early in the design phase. This is important because it is meant to achieve product designs that reflect customer wants as well as manufacturing capabilities.

18. What do the terms design for manufacturing and design for assembly connote?
-DFM is the designing of products that are compatible with an organizaton’s capabilities. DFA is the design that focuses on reducing the number of parts in a product and on assemble methods and sequence.

19. What is quality function deployment, and why is it important?
QFD is an approach that integrates the “voice of the customer” into both product and service development. The purpose is to ensure that customer requirements are factored into every aspect of the process.

20. What is the Kano model, and how can it be used in design?

Thee Kano model is a theory of product and service design developed by Dr. Noriaki Kano, who offered a perspective on customer perceptions of quality different from the tradition view that more is better.

21. Briefly define each of these terms: service delivery system

-The facilities, processes, and skills needed to provide a service.

product bundle

-the combination of goods and services provided to a customer.

service package

-the physical resources needed to perform the service, the accompanying goods, and the explicit and implicit services included.

service blueprint

-A method used in service design to describe and analyze a proposed service.

22. List some of the characteristics of a well-designed service system: 1)Being consisten with the organization mission 2)being user friendly. 3)being robust if variability is a factor 4)being easy to sustain 5)being cost-effective
23. What are the key challenges of service design? 1)variability 2)balancing of supply and demand 3)services can be difficult to describe precisely 4)dynamic in nature

24. List the Key Points.
1. A range of factors can cause an organization to design or redesign a product or service, including economic, legal, political, social, technological, and competitive pressures. Furthermore, an important cause of operation failures can be traced to faulty design.
2. Every area of a business organization, and its supply chain, is connected to and influenced by, its product and or services, so the potential impact on each area must be taken into account when products or services are redesigned or new products or services are to be designed.
3. Central issues relate to the actual or expected demand for a product or service, the organization’s capabilities the cost to produce or provie, the desired quality level, and the cost and availability of necessary resources.
4. Among considerations that are generally important are legal, ethical, and environmental.
5. Although there are some basic difference between product design and service design, there are many similarities between the two.