Product And Service Design And Development John Wu PhD Profe

Product And Servicedesign And Developmentjohn Wu Phdprofessor Of Su

Product and Service Design and Development John Wu, Ph.D. Professor of Supply Chain and Transportation CSU San Bernardino [email protected] 1 Deign is easy, right? Ask customers what they want then design a product or service that meets their needs. Look at the pictures here. Do you see similar situations happening around you? If Steve Job had asked customers (you and me) what they wanted, would any one of us tell him that we needed an iPod, iPad, or iPhone?

2 Product and Service Development Process Follow similar processes like the one here, companies design products and services to achieve their organizational missions. However, it’s a long road from ideas to successful product launches with less than 5% of the ideas actually see the light of the day to make it to new product. Then market reality kicks in…

3 Even fewer new products launched will see commercial success in the end of the first year. The five year success rate is even lower.

4 Drug Discovery and Approval New drug discovery is notorious for its time consuming process and huge amount of costs involved. An average drug now takes 15 years and $800 millions to get FDA approval. What are the implications of this tedious and expensive process? How can we improve it?

5 Video Games Development Video games industry follows a similar development process.

6 Video Games Development And the cost to develop a new video games is now approaching that of a Hollywood movie! Grand Theft Auto 5 cost $265 million to develop. What’s the reward? It sold over $1 billion dollars in the first 72 hours! In comparison, Angry Bird cost less than $200K to develop and has seen more than 1 billion download in the first five years it was introduced.

7 Video Games Development 8 Product Design Things that make sense… 9 Is it too obvious that we should design things that make sense? How many things that do NOT make any sense are around us? Product Design Things that make sense… A mechanism was designed to prevent the minivan’s sliding door from hitting the fuel door. Does it make sense and do you have better designs? 10 Does this make sense?

What are the pros and cons of this design? If you were the manager in charge of this project, would you go along or would you make changes? If so, what and how? Why is this a good or bad design? Read up these concepts, too: Design for manufacturability (DFM) is the process of designing a product for efficient production at the highest level of quality. Product simplification is the process of trying to simplify designs to reduce complexity and costs and thus improve productivity, quality, flexibility, and customer satisfaction. Eco Design A wash basin on top of the toilet reservoir for people to wash hands then water is stored for the next flush. 11 Product Design 12 How do you like this Japanese bidet/washlet with seat warmer, self cleaning nozzle with multiple positions for male and female users (front and rear too), dryer, and music playing capabilities (to disguise the noise that one may make in the process). Do you think you can sell this in North America? What is your approach to sell this baby and how big do you think the market is?

Another Real Product 13 Does it make sense, a product that allows women to pee like a guy? Where and when would you use it? Can you sell this? How? Women Friendly Designs?

14 The world is littered with these pseudo women-friendly design. Half of the car buyers now are women yet many designers still don’t get it. Credit goes to the first car with driver side vanity mirror but what else has been changed to meet the needs of female drivers? What about other industries? Can you spot real women-friendly and fake women-friendly designs (like the pink examples here)?

Senior Friendly Designs: Oxo Smart Design. Products and services that matter. http ://smartdesignworldwide.com/about / 15 OXO began with a few simple questions - Why do ordinary kitchen tools hurt your hands? Why can't there be wonderfully comfortable tools that would be easy to use? The founder, Sam Farber, noticed that his wife Betsey was having difficulty gripping ordinary kitchen tools due to a slight case of arthritis in her hands, he saw an opportunity to create more comfortable cooking tools that would benefit all users. The rest, as they say it, is history. Oxo sells over 100 million dollars inkitchen products every year! Service Design: It All Started with a Stupid Question…

16 Think about this stupid idea of putting people on the conveyor belt… why not? Service Design Basic idea: People and luggage arrive together at airport People and luggage are separated People and luggage are transported People and luggage are reunited 17 It’s a small observation. Then someone at the airline asked a question why do WE handle the bags, rather than asking passengers to carry them on board? Airlines started to change bag fees at $20 or $25 a piece. Do you know how much they make out of these small fees? More than $3 Billion dollars in 2013! Wish I had thought of it…

18 The food and restaurant industries face similar challenges of airport luggage handling. How do you bring food and people together when they are hungry? Service Design When people are hungry…people and food are separated Goal: bring people and food together 19 In-house: go to market, buy raw food, cook at home, eat Outsourcing: go to a restaurant, eat 20 See how many business models are based on these ideas? Service Design 21 Service Design 22 Service Design 23 This is how Domino’s service is designed. Can you tell which generic strategy it uses? In what way does its supply chain differ from others? Service Design 24 And, yes, it’s global! OM Goods and Service Design 6 COLLIER/EVANS Describe the steps involved in designing goods and services Explain the concept and application of quality function deployment Describe how the Taguchi loss function, reliability, design for manufacturability, and design for sustainability are used for designing manufactured goods LEARNING OUTCOMES ‹#› OM5 | CH Explain the five elements of service delivery system design Describe the four elements of service encounter design Explain how goods and service design concepts are integrated at LensCrafters ‹#› OM5 | CH6 LEARNING OUTCOMES (continued) Introduction Every design project is a series of trade-offs between: Technology and functionality Ambition and affordability Desires of the people creating the object and needs of the people using it ‹#› OM5 | CH Steps Involved in Designing Goods and Services Strategic mission and vision Strategic and market analysis, and understanding competitive priorities Customer benefit package design and configuration ‹#› OM5 | CH Steps Involved in Designing Goods and Services Detailed goods, service, and process design For manufactured goods Manufactured design and development Process selection and design For services Service and service delivery design Service encounter design Market introduction/deployment Marketplace evaluation ‹#⺠OM5 | CH Customer-Focused Design Customer requirements - Wants and needs are reflected through the design of good or service Voice of the customer: Customer requirements, as expressed in the customer’s own terms Quality function deployment(QFD): Approach to guide the design, creation, and marketing of goods and services by: Integrating the voice of the customer into all decisions ›#› OM5 | CH Building the House of Quality Determine customer requirements through the voice of the customer (VOC) Define technical requirements of the product Determine interrelationships between the technical requirements ›#› OM5 | CH Building the House of Quality Relationship matrix defines what technical requirements satisfy VOC needs Customer priorities and competitive evaluation help select which VOC requirements the product should focus on ›#› OM5 | CH.2 The House of Quality ›#› OM5| CH6 Exhibit 10 Tolerance Design Determining the acceptable tolerance For manufactured goods, design blueprints specify a target dimension (nominal), along with a range of permissible variation (tolerance) ›#› OM5| CH.3 Traditional Goal Post View of Conforming to Specifications ›#› OM5| CH6 Exhibit 12 Taguchi Loss Function Genichi Taguchi, a Japanese engineer, maintained traditional practice of setting design specifications is flawed Argument – The smaller the variation about the nominal specification, the better the quality In turn, products are more consistent, fail less frequently, and will be less costly in the long run â€#› OM5 | CH Taguchi Loss Function L(x) = k(x – T )2 Where L(x) - Monetary value of the loss associated with deviating from the target, T x - Actual value of the dimension k - Constant that translates the deviation into dollars â€#› OM5 | CH.4 Nominal-Is-Best Taguchi Loss Function â€#› OM5| CH6 Exhibit 15 Design for Reliability Reliability: Probability that goods and services performs its intended function for stated period of time under specified operating conditions Probability - Value between 0 and 1 â€#› OM5 | CH Design for Reliability Reliability: Probability that goods and services performs its intended function for stated period of time under specified operating conditions Probability - Value between 0 and 1 â€#› OM5 | CH Design for Reliability Series system - If one component fails, the entire system fails Reliability of a series system - Product of the individual probabilities of each process in a system Rs = (p1)(p2)(p3). . . (pn) â€#› OM5 | CH Structure of a Serial System â€#› OM5| CH6 Exhibit 18 Structure of a Parallel System - Functions are independent and the entire system will fail only if all components fail Rp = 1 – (1 – p1)(1 – p2)(1 – p3). . . (1 – pn) â€#› OM5 | CH Structure of a Parallel System â€#› OM5| CH6 Exhibit 20 Design for Manufacturability (DFM) Process of designing a product for efficient production at the highest level of quality Product simplification: Process of trying to simplify designs to reduce complexity and costs Improves: Productivity Quality Flexibility Customer satisfaction â€#› OM5 | CH Design for Sustainability Design for environment (DfE): Explicit consideration of environmental concerns during the design of goods, services, and processes Designing for recycling Disassembly â€#› OM5 | CH Service Delivery System Design Includes Facility location and layout Servicescape Process and job design Technology and information support systems â€#› OM5 | CH Facility Location and Layout Location affects a customer’s travel time Important competitive priority in a service business Layout affects process flow, costs, and customer perception and satisfaction â€#› OM5 | CH Servicescape Physical evidence that customer can use to form an impression Provides the behavioral setting where service encounters take place Standardization - Enhances efficiency, especially for multiple site organizations â€#› OM5 | CH Dimensions and Types of Servicescape Dimensions Ambient conditions Spatial layout and functionality Signs, symbols, and artifacts Types Lean servicescape environment: Provide service using simple designs Elaborate servicescape environment: Provide service using more complicated designs and service systems â€#› OM5 | CH Service Process Design Activity of developing an efficient sequence of activities to: Satisfy internal and external customer requirements Develop procedures to ensure that: Things are done right the first time Interactions between customers and service providers are simple and quick Human error is avoided â€#› OM5 | CH Technology and Information Support Systems Hard and soft technology is an important factor in designing services Ensure: Speed Accuracy Customization Flexibility â€#› OM5 | CH Service Encounter Design Focuses on the interaction, directly or indirectly, between the service provider and the customer Principal elements Customer contact behavior and skills Service provider selection, development, and empowerment Recognition and reward Service recovery and guarantees â€#⺠OM5 | CH Customer Contact Behavior Physical or virtual presence of the customer in the service delivery system during a service experience Measured by the percentage of time the customer must be in the system relative to the total time it takes to provide the service High-contact systems Low-contact systems â€#⺠OM5 | CH Customer Contact Requirements Measurable performance levels that define the quality of customer contact with representatives of an organization Technical requirements as response time Service management skills such as cross-selling other services Behavioral requirements â€#⺠OM5 | CH Service Provider Selection, Development, and Empowerment Recruit and train employees to exceed customer expectations Empowerment: Giving people authority to make decisions based on: Intuition Control over the work Taking risks and learning from mistakes Promoting change â€#⺠OM5 | CH Recognition and Reward Key motivational factors Recognition Advancement Achievement Nature of the work Good compensation system can help to attract, retain, and motivate employees â€#⺠OM5 | CH Service Guarantees Promise to reward and compensate a customer if a service upset occurs during the service experience Service upset: Problem that a customer has faced with the service delivery system Service failure Error Defect Mistake Crisis â€#⺠OM5 | CH Service Recovery Process of correcting a service upset and satisfying the customer Steps Begin immediately after a service upset Document the process and train employees Listen to the customer and respond sympathetically Resolve the problem quickly, provide an apology, offer compensation â€#» OM5 | CH An Integrative Case Study of LensCrafters Steps 1 and 2 - Strategic mission, market analysis and competitive priorities Step 3 - Customer benefit package design and configuration Steps 4a and b - Manufactured good design and process selection Step 4c - Service-delivery system design â€

Paper For Above instruction

Product and service design and development is a multifaceted process that requires a strategic approach to create offerings that align with organizational goals, meet customer needs, and are feasible for production and delivery. As detailed in John Wu’s framework, the journey from initial idea to successful product or service launch involves numerous stages, including idea generation, development, testing, and market introduction. The success rate of new products remains challenging, with less than 5% of ideas reaching commercial viability, highlighting the importance of effective design and development processes (Ulrich & Eppinger, 2015).

One of the fundamental concepts in product and service design is the recognition that simply asking customers what they want may not yield innovative or groundbreaking solutions. Historically, visionaries like Steve Jobs demonstrated that disruptive innovations often stem from understanding latent needs or creating solutions consumers did not explicitly ask for (Rosenblatt, 2013). This insight emphasizes the importance of designing products that make sense and add value, rather than solely responding to expressed desires. For instance, minimalistic yet functional designs, such as mechanisms to prevent sliding door mishaps in minivans, illustrate how thoughtful engineering can enhance usability and safety.

Design considerations must incorporate principles like design for manufacturability (DFM), which prioritizes creating products that can be produced efficiently at high quality (Kodali et al., 2014). Simplifying designs to reduce complexity not only lowers costs but also improves reliability and flexibility, exemplified by eco-friendly designs like water-saving wash basins integrated into toilet reservoirs (Hui & Kim, 2020). Similarly, the Japanese bidet/washlet showcases how advanced features like self-cleaning nozzles, seat warming, and user-specific adjustments can be tailored for different markets, though cultural preferences influence market acceptance, particularly in North America (Kim & Lee, 2019).

In considering product adaptations, the concept of women-friendly designs remains prominent. Many industries have made superficial modifications, such as pink coloring or minor ergonomic adjustments, without truly addressing diverse needs. Genuine women-friendly products, like vehicles with better visibility and accessibility, exemplify a deeper understanding of gender-specific requirements (Schmitt & Zeman, 2015). In automotive design, features like the driver's side vanity mirror broke conventional standards, but further innovations, including ergonomic controls and safety systems, are necessary for authentic inclusivity.

Senior-friendly product design also exemplifies user-centered innovation. OXO’s kitchen tools, developed through empathy for users with arthritis, demonstrate how reimagining everyday items can significantly enhance comfort and usability for all users (Farber & Clark, 2018). Their success underscores the importance of understanding customer needs through voice of the customer (VOC) methodologies and deploying tools like Quality Function Deployment (QFD) to prioritize features aligned with user requirements.

Service design further extends these principles to intangible offerings, emphasizing the importance of designing seamless service delivery systems that meet customer expectations while optimizing operational efficiency. The airline industry, for example, restructured luggage handling processes by removing the need for passengers to carry bags to the aircraft, significantly increasing revenue through baggage fees (Barrett, 2015). Similarly, restaurant and food service companies innovate by integrating diverse business models—ranging from home cooking, take-out, to dine-in experiences—catering to various customer preferences (Lovelock & Wirtz, 2016).

The example of Domino’s pizza illustrates how strategic service design, leveraging efficient supply chains and process innovations, fosters competitive advantage. Their use of real-time tracking, online ordering systems, and optimized delivery networks exemplify how customer-centric approach and technological support enhance service quality (Kuo et al., 2018). In addition, global service operations demonstrate the importance of standardization and location strategy in delivering consistent customer experiences across markets.

Applying tools such as the House of Quality from Quality Function Deployment, companies systematically translate customer requirements into technical specifications, ensuring that design decisions align with user needs. Taguchi’s loss function further emphasizes minimizing variation in product dimensions to reduce long-term costs and improve performance (Taguchi & Wu, 2004). Reliability engineering techniques, whether series or parallel systems, quantify the likelihood of product performance over time and inform design choices for robustness (Saunders & Jiang, 2014).

Designing for sustainability has become a critical component, encouraging environmentally conscious practices like designing for disassembly and recycling, evident in eco-friendly product development initiatives (Blanchard & Abarca, 2017). Such approaches not only satisfy regulatory requirements but also appeal to eco-conscious consumers, bolstering brand reputation.

In service delivery system design, facilities location and layout directly influence customer experience and operational efficiency. The concepts of servicescape—physical evidence that shapes customer perceptions—are crucial, especially in high-contact settings like healthcare or hospitality (Bitner, 1992). A well-designed servicescape aligns with branding and enhances customer satisfaction.

Service encounter design—focusing on interactions—requires attention to customer contact behavior, along with staff training, empowerment, and recognition programs. Effective service guarantees and recovery protocols are vital for maintaining trust after service failures, which are inevitable but manageable through immediate