Product and Service Design Overview + forecasting

Product and service design

involves or affects nearly every functional area of an organization. However, marketing and operations have major involvement.

Economic
Social and demographic
Political, liability, or legal
Competitive
Cost or availability
Technological

Reasons for Product or Service Design

Product Design

Translates customer needs into product specifications.

Service Design

Creates systems to deliver services effectively.

Sources of Design Ideas

Reverse engineering and Research and Development

Reverse Engineering

dismantling and inspecting a competitor's product to discover product improvements

Research and Development

Organized efforts to increase scientific knowledge or product innovation.

Product Liability

the responsibility of a manufacturer for any injuries or damages caused by a faulty product.

Human Factors

issues often arise in the design of consumer products.

Cultural Factors

companies that operate globally also must take into account any cultural differences of different countries or regions related to the product.

Introduction, growth, maturity, saturation, decline

life cycle stages

Standardization

Refers to the extent to which there is absence of variety in a product, service or process

Standardized products

are made in large quantities of identical items (i.e. calculators, computers, milk)

Standardized service

implies that every customer or item processed received essentially the same service.

Mass Customization

A strategy of producing standardized goods or services, but incorporating some degree of customization in the final product or service.

Delayed Differentiation

Postponing product completion 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.

Reliability

Ability to perform intended function under conditions.

Failure

Product not performing as intended.

Normal Operating Conditions

Specified conditions for product reliability.

Robust Design

A design that results in products or services that can function over a broad range of conditions

Concurrent Engineering

is the bringing together of engineering design and manufacturing personnel early in the design phase.

• Simultaneous development

Computer-Aided Design (CAD)

Design using computer graphics to enhance productivity.

Design for Manufacturing

It is a product design that are compatible with an organization's capabilities

Design for Assembly

It is a product design that focuses on reducing the number of parts in a product and on assembly methods and sequence.

Design for Recycling

It is a design that facilitates the recovery of materials and components in used products for reuse

service

Something that is done to or for a customer

Service Delivery System

Facilities and processes for effective service provision.

Product Bundle

Combination of goods and services for customers.

Service Package

physical resources needed to perform a service.

Service Blueprinting

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

Forecast

A basic input in the decision processes of operations management because they provide information on future demand.

Expected Level of Demand

can be a function of trend or seasonal variation

Degree of Accuracy

is the ability of the forecasters to correctly model demand, random variation and unforeseen events.

timely
accurate
reliable
meaningful
written
easy to use
cost-effective

elements of forecasting

Qualitative

consist mainly of subjective inputs which often defy precise numerical description

Quantitative

involves the projection of numerical data or the development of associative models that attempt to utilize causal ( explanatory) variables to make a forecast

Naïve Forecast

A forecast for any period that equals the previous period's actual value.

Moving Average

Technique that averages a number of recent actual values, updated as new values become available

Weighted Moving Average

More recent values in a series are given more weight in computing a forecast.

Exponential Smoothing

A weighted averaging method based on previous forecast plus a percentage of the forecast error.