Chapter 4 - Product And Service Design

When planning on producing a new product and/or service, the key factor is the product and service design. Successful designs come down to these basic principles: translate customers' wants and needs, refine existing products and services, develop new products and services, formulate quality goals, formulate cost targets, construct and test prototypes, document specifications, and translate products and service specification into process specifications. The process of design has certain steps that include motivation, ideas for improvement, organizational capabilities, and forecasting. In the product process innovations, research and development play a significant role. Because of the influence a product and service design can have on an organization, the design process is encouraged to be tied in with the organization's strategy and take into account some key considerations.

Technological changes, the competitive market, and economic and demographic changes are some market opportunities and threats that all organizations must be aware of when planning a product and service design. Computer-aided design (CAD) and Computer-aided manufacturing (CAM) are important tools in the design process because they can anticipate what the design will look like, as well as allow for better manufacturing. Businesses also must take in account environmental and legal concerns when designing a new product. Most importantly, the manufacturing process must ensure the product's safety.

Product and Service Design

Companies choose various ways to design their products and the type of services they provide. Which include: standardization, mass customization, delayed differentiation, modular design, and robust design. Deciding which method to use is very important along with deciding the company's target market. Deciding the right method, establishes good productivity and efficient way fo operations.

Service design is an activity of organizing and planning people, communication and material components in order to improve service quality. It is the interaction between the service provider and customers and the customers' experience. A service is anything that is done to or for a client and is created and delivered simultaneously. The two most important issues in service design are the degree of variation in requirements and the degree of customer contact in which determines how standardized the service can be. The greater the degree of customer contact, the greater the opportunity for selling. In addition, concepts and ideas generated are captured in sketches or in service prototypes. The strong visual element, combined with the opportunity to test and rapidly change services and interfaces, delivers real value in today's competitive markets.

Product Design combines ergonomics with product and business knowledge to generate ideas and concepts and convert them into physical and usable objects or services. The discipline covers the entire range of activities from concept, manufacturing, testing to product launch. Product Designers conceptualize and evaluate ideas and themes they find profitable. The designers make these ideas tangible through products using a systematic approach.

Difference between service design and product design: Service design is an intangible aspect while product design is tangible. Services are generally created and delivered at the same time and can not be held in inventory like actual products. Also, services (especially quality one) are highly visible to customers.

Product and Service Life Cycle

During their useful life, many services and products go through four stages. Since the demand can vary for each of these 4 stages, different strategies should be applied to achieve optimum product/service performance during each stage.

The Four stages are:

1. Introduction: During the first stage, the product is introduced into the market. Proper research and forecasting should be done to ensure the product/service is adequate for a specific market and for a specific time. It is crucial to have a proper amount of supply that can meet the expected demand for the product/service.
2. Growth: The second stage involves the increase in demand for the product/service. Reputation for the product grows and an accurate forecast of demand is needed to determine the length of time the product/service will remain in the market. Enhancements and improvements are common in this stage.
3. Maturity: This third stage deals with the product reaching a steady demand. Few or no improvements or product changes are needed at this stage. Forecasting should provide an estimate of how long it will be before the market dies down, causing the product to die out.
4. Decline: The last stage involves choosing to discontinue the product/service, replacing the product with a new product, or finding new uses for the product.

Standardization may be great for a company creating products like mops because there are not many things you can do to make them unique and keep the price down. Standardization products have interchangeable parts, which increases productivity and lowers the costs of production. Standardization has many important benefits and certain disadvantages. Some advantages are the design costs for standardization products are low. The scheduling of work inventory handling, purchasing, and accounting activities are routine, making the quality more consistent. The disadvantages with standardization are that they decrease variety offered to consumers leading to less of an appeal. Also, the high cost of design change makes it relentless to improve.

Mass customization
is a strategy that some companies can use to incorporate customization while practicing standardization. This strategy keeps costs low while adding variety to a product. The two tactics that make mass customization possible is delayed differentiation and modular design. Some companies may consider delayed differentiation if the company chooses to not finish a product due to unknown customer preferences. However, another tactic of modular design is a form of standardization in which components' parts are grouped into modules to allow easy replacement or interchangeability. Producing a computer is an example of modular design.

Companies will also have to consider what their competitors are doing in order to be successful. There are 3 ways of idea generation: supply based, competitor based, and research based. Which ever a company chooses, they must consider who is competing against them and what else is going on in the marketplace. Product design is key to the success of the company.

Customer Satisfaction and Sustainability

Product and service design are very important factors to customer satisfaction. Organizations need to continually satisfy their customers to be successful in the marketplace. They are able to do this by improving current products or by designing new ones. The design consists of the following: research, design, production, life cycle, safety in use, reliability, maintainability, regulatory and legal issues. Organizations also need to look at "sustainability" when designing their product/service.

The four aspects of Sustainability are:
(1) Life Cycle Assessment
(2) Value Analysis
(3) Remanufacturing
(4) Recycling.

Life cycle assessment focuses on the environmental impact the specific product will have over the course of its life. Value analysis looks at the parts within a product and seeks to minimize the cost. Remanufacturing has become more important over the past few years and involves replacing worn-out and defective products. This is common practice in high price machinery industries. Recycling involves recovering older materials for future use. This not only saves money, but satisfies environmental concerns.
The Kano Model includes three aspects: Basic quality, performance quality, and excitement quality. Basic quality is the requirements placed on a product that do not lead to customer satisfaction when present, but can lead to dissatisfaction if absent. Performance quality is the middle ground and can either lead to satisfaction or dissatisfaction depending on their usefulness. Excitement quality is the notion that an unexpected feature can cause customer excitement.

Reliability is a measure of the ability of a product, a part, or service, or an entire system to perform its intended function under a prescribed set of conditions. Reliability can have an impact on repeat sales and reflect positively on a product’s image. However, if the product is faulty, it can create legal problems. The term "failure" is used to describe a situation in which an item does not perform as intended. Reliabilities are always specified with respect to certain conditions, called normal operating conditions. These conditions can include load, temperature, and humidity ranges in addition to operating procedures and maintenance schedules. To improve reliability, manufacturers should improve the reliability of individual components or use back up components. A few other suggestions include improving testing, improving user education, and improving system design. The optimal level of reliability is the point where the incremental benefit received equals the incremental cost.

Legal and Ethical Consideration
Many organizations are regulated by governmental agencies and these regulations are responsible for preventing harmful substances from being used in product design. Harm caused by the product is the responsibility of the manufacturers. Manufacturers are liable for any injury or damages caused by their product due to its design or workmanship, also known as product liability. When the product is defective and potentially causes harm, manufacturers have several options to remedy the situation. They may have to recall their products or fix the problem in the manufacturing stage. It is also possible that they may face lawsuits if their products cause injury to consumers. Managers must ask themselves if there is demand for their organization’s product or service. If the company develops its products or services according to the customers’ demands, their product will be successful.


2.) What is the purpose of a value analysis?
A. To cut down on production time
B. To reduce cost and/or improve product performance
C. To analyze the potential profitability of the product
D. To ensure customer satisfaction and profits
E. None of the above

Correct Answer - B) to reduce cost and/or improve product performance. (Page 138)

3.) What are the four phases of the Product Life Cycle?
A. Introduction, Growth, Maturity, Decline
B. Research, Design, Introduction, Maturity, Decline
C. Design, Introduction, Maturity, Decline
D. Growth, Maturity, Decline, Re-Design
E. Introduction, Maturity, Decline, Re-Design

Correct Answer - A) Introduction, Growth, Maturity, Decline (Page 143)

4.) Which of the following is an advantage of standardization?
A. Design may be frozen with too many imperfections remaining.
B. High cost of design changes increases resistance to improvements.
C. More routine purchasing, handling and inspection of procedures.
D. Decreased variety results in less consumer appeal.
E. All of the above are disadvantages of standardization.

Correct Answer - C) More routine purchasing, handling and inspection of procedures. (Page 145)

5.) Which of the following is NOT a phase in the service design process?
A. Conceptualize (idea generation, Asses customer needs and demand).
B. Identify service package and components needed.
C. Determine performance specifications.
D. Only a & b are phases in the service design process.
E. All of the following are phases in the service design process.

Correct Answer - E) All of the following are phases in the service design process. (Page 163)

6.) Which is an important factor that gives rise to market opportunities and threats for product and service design?
A. Economic
B. Social and demographic
C. Political and Competitive
D. A & B
E. All of the above

(Answer E) Page 132

7.) Which of the following is NOT a key question about product and service design from an organization's standpoint?
A. Is there demand for it?
B. Can we do it?
C. What level of management is appropriate?
D. What level of quality is appropriate?
E. None of the above

(Answer C) Page 135

8.) The assessment of the environmental impact of a product or service throughout it's useful life is known as?
A. Product liability
B. Uniform commercial code
C. Life cycle assessment
D. Value analysis
E. Recycling

(Answer C) Page 137

9.) Which of the following is NOT a phase in the product and service life cycle?
A. Introduction
B. Growth
C. Conclusion
D. Research
E. Re-Design

(Answer C) Page 143

10.) Which term refers to a design that results in products or services that can function over a broad range of conditions?
A. Robust Design
B. Global Product Design
C. Reverse Engineering
D. Concurrent Engineering
E. Research and Development

(Answer A) Page 148

11.) How many stages are there in the product or service useful life cycle?
A. 2
B. 3
C. 4
D. 5
E. Depends on the type of product/service

(Answer C) Page 143

13.) Which of these are sources used to generate new ideas?
A. Supply chain,Competitor, Research
B. Distributors, Suppliers, Employees
C. Supply Chain
D. Maintenance Personnel, Surveys, Customers
E. All of the above

Answer: E Page 151

14.) The Kano Model is a theory of product and service that employs "Excitement, Performance, and what other type of quality"?
A. Long-Term
B. Basic
C. Design
D. Versatile
E. Unique

Answer: B Page 159

15.) Which of these is NOT a potential way of improving reliability?
A. Improve component design
B. Improve testing
C. Improve production and/or assembly techniques
D. Use backups
E. These are all potential ways of improving reliability

Answer: E Page 147

16.) Which approach integrates the "voice of the customer" into both product and service development?
A. Quality for development
B. Quality function design
C. Quality function deployment
D. Quantity function deployment
E. None of the above

Answer: C Page 156

17.) What concept refers to refurbishing used products by replacing worn-out or defective components?
A. Reduce
B. Re-manufacturing
C. Value Analysis
D. Recycle
E. None of the above

Answer: B Page 138

18.) Which of the following is a reason why companies choose to recycle?
A. Environmental concerns
B. Cost savings
C. Environmental Regulations
D. None of the above
E. All of the above

Answer: E. Page 141

19.) Which of these is NOT involved in research and development?
A. Functional research
B. Basic research
C. Applied research
D. Development
E. None of the above

Answer: A. Page 152

20.) What is the term 'DFM' referred to as?
A. Designing for marketability
B. Diverse financial management
C. Design for materials
D. Design for manufacturing
E. None of the above

Answer: D. Page 156

21.) Which of the following is NOT included in the overall service package:
A. Explicit services
B. Implicit services
C. Accompanying goods/services purchased or consumed
D. Physical resources needed
E. All of the Above

Answer: E_Page 153

22.) Which of the following are NOT related to phases in Product Design and Development
A. Process Specifications
B. Prototype
C. Feasibility Analysis
D. Modular Design
E. Design Review

Answer : D_Page 139

23.) Which is a benefit of research and development:
A. Patents
B. Licensing
C. Royalties
D. both a & b
E. All of the above

Answer : E_Page 152

24.) To achieve a smoother transition from product design to production, companies are using simultaneous development and ?
A. Computer Aided Design (CAD)
B. Design for Disassembly (DFD)
C. Component Commonality
D. Concurrent Engineering
E. Design for Assembly (DFA)

Answer : D_Page 154

25.) Idea Generation comes from which source/s?
A. Competitor Based
B. Customer Based
C. Supply Chain Based
D. Research Based
E. A, C, & D

Answer : E_Page 139

26.) Which of the following are NOT benefits of Component Commonality Products or Services?
A. High degree of similarity
B. High degree of components
C. Reduce Inventory Dealers
D. Savings in Design time
E. Ensure Customer Quality

Answer : E_Page 141

28.) Factors that give rise to market opportunities and threats are:
A. Competitive
B. Political, liability, or legal
C. Social and demographic
D. Economic
E. All of the above

Answer: E_Page 132

Which of the following is not an example of of political, liability, or legal change?
A.) Government changes
B.) Excessive warranty claims
C.) Safety Issues
D.) New regulations
Answer: B_page 132

30.) What is the purpose of Value Analysis?
A. Find the value of every functional area in an organization
B. To determine the benefit of supplying a product or service
C. To decide if supplying a service or product will gain market share
D. To examine the design process and determine its value to the organization
E. To examine the function of parts and materials in an effort to reduce cost and/or improve product performance

Answer: E_Page 138

31.) What is a key question of manufacturability and serviceability?
A. Is there demand for it?
B. Can we do it?
C. What level of quality is appropriate?
D. Does it make sense from an economic standpoint?
E. All of the above

Answer: B_Page 135

32.) Which of the following is NOT a way to improve reliability?
A. The use of backup components
B. Preventive maintenance procedures
C. Production or assembly techniques
D. Delayed differentiation
E. User education

Answer: D Page 147

33.) Which is the optimal level of reliability?
A. Point where the incremental benefit received equals the incremental cost of obtaining it.
B. Point where the incremental benefit received is higher than the incremental cost of obtaining it.
C. Point where the incremental benefit received is lower than the incremental cost of obtaining it.
D. Point where the incremental benefit received is half than the incremental cost of obtaining it.
E. Point where the incremental benefit received is double than the incremental cost of obtaining it.

Answer: A Page 148

34.) Which code addresses the issue of responsibility of a manufacturer for any injuries or damages caused by a faulty product because of poor workmanship or design?
A. Uniform Commercial Code
B. Design for disassembly
C. Product liability
D. Robust design
E. Concurrent engineering

Answer: C Page 136

35.) The three R’s stand for which of the following?
A. Render, Rebuilt, Rearrange
B. Reduce, Renew, Recycle
C. Reduce, Reuse, Rebuild
D. Recycle, Remanufacture, Rebuild
E. Reuse, Recycle, Reduce

Answer: E Page 138

36.) Which of the following is NOT a characteristic of a service?
A. Services are generally intangible.
B. Services cannot be inventoried
C. Some services have high barriers to entry and exit
D. In many instances services are created and delivered at the same time
E. Services are highly visible to consumers

Answer: C Page 161

37.) Who is generally responsible for product liability for any injuries or damages caused by a faulty product?
A. The Retail Store
B. The Consumer
C. The Manufacturer
D. The Government
E. None of the above

Answer: C Page 136

38.) What of the following products has a robust design?
A. High heels
B. Leather sandal
C. Rubber Boots
D. Gym shoes
E. Slippers

Answer: C Page 148

39.) Who regulates organizations concerning legal and ethical matters?
A. Competitors
B. Designers
C. Government agencies
D. Lawsuits
E. Consumers

Answer: C Page 136

40.) Which of these statements is False in regards to service designs:
A. Are generally intangible
B. Are not visible to consumers
C. Cannot be inventories
D. Have low barriers to entry and exit
E. All are correct

Answer: B Page 161

41.) A method for describing and analyzing a service process is:
A. Service layout
B. Service blueprint
C. Service design
D. Product design
E. Product process

Answer B Page 162

42.) Service refers to a/an:
A. Act pg 153
B. Design
C. Target market
D. Resource
E. Organization

43.) Service packages include(s):
A. Physical resource
B. Accompanying good
C. Explicit services
D. Implicit services
Answer: Page 153

44.) Which of the following statements is false:
A. Services are highly visible to consumers
B. Some services have low barriers to entry and exit
C. Service can be inventoried pg 154
D. Services are generally intangible
E. Usually Services are created and delivered at the same time
Answer: C pg. 154

46.) Guidelines for a successful service design include all except:
A. Define service package in detail
B. Maximizing profits should be your main concern Page 156
C. Focus on operation from the customer perspective
D. Make sure managers will support the design once it is implemented
E. Define the quality of the intangibles and tangibles.
Answer: B pg.156

47.) The responsibility of a manufacturer for any injuries or damages caused by a faulty product is:
A. Life cycle assessment
B. Value analysis
C. Re-manufacturing
D. Design for dis-assembly
E. Product liability

Answer: E Page 136

48.) The extent to which a product, service, or process lacks variety is:
A. Standardization
B. Reverse engineering
C. Reliability
D. All of the above
E. serviceability

Answer: A Page 144

50.) Manufacturability is:
A. The ease of fabrication and/or assembly
B. Product design using computer graphics
C. Product standardization
D. A characteristic of services
E. Manufacturer's capacity
Answer: A Page 156

51.) All are ways to improve reliability EXCEPT:
A. Use backups
B. Improve vision
C. Improve testing
D. Improve system
E.none of the above

Answer: B Page 147

52.) Which is not a method of a product design?

A. Mass standardization
B. Mass customization
C. Delayed Differentiation
D. Robust Design
E. Modular design

Answer: E Page 146

53.) Which one is not part of idea generation?

A. Supply-chain based
B. Competitor based
C. Research based
D. All are part of idea generation
E. None of the above
Answer: D Page 151

54.) Which of the following is an advantage of standardization?

A. Fewer parts to deal with
B. Reduced training costs
C. Opportunities for automation
D. More routine purchasing
E. All are advantages
Answer: E Page 145

55.) What is meant by the term standardization?

A. Creating a product but not finishing it until customer preferences are realized.
B. Absence of variety in a product, service or process.
C. Variety in a product, service or process.
D. None of the above.
E. All of the above
Answer: B Page 144

57.) Which term refers to a feature or attribute that was unexpected by the customer and causes excitement

A. Performance Quality
B. Excitement quality
C. Basic Quality
D. None of the above
E. Awesome quality
Answer: B Page 159

58.) What is
NOT an advantage of standardization?

A. Fewer parts to deal with in inventory and management
B. More routine purchasing
C. Opportunities for long production runs and automation
D. Decreased variety
E. Reduced training time.
Answer: D Page 145

59.) The Kano Model was developed by

A. Dr. Noriaki Kano
B. Scott Adams
C. Chris Chapman
D. Wayne Cascio
E. Robert L. Englund
Answer: A Page 159

60.) Delayed differentiation is common in which of the following:
A. Pens
B. Men's Suits
C. Screws
D. Cement
E. Books

Answer: B Page 146

61.) What is NOT part of sustainability?
A. Life Cycle Assessment
B. Remanufacturing
C. Recycling
D. Polluting
E. Value Analysis

Answer: C Page 138

62.) Dismantling and inspecting a competitor's product to discover product improvements (Hint: Ford Co. used this tactic) is
A. Research and Development
B. Employee recommendations
C. Concurrent Engineering
D. Computer Aided Design
E. Reverse Engineering

Answer: E Page 152

63.) The Uniform Commercial Code states that products carry an implication of:
A. Merchantability and fitness
B. Merchantability and finess
C. Cost and quality
D. Sustainability and reliability
E. None of the Above

ANSWER: A) Merchantability and fitness Page 136

64.) Organizations want designers to adhere to the following guidelines except:
A. Produce designs that are consistent with goals of the organization
B. Give customers the value they expect
C. Make health a primary concern
D. Make safety a primary concern
E. Reduce costs as much as possible

ANSWER: E Reduce costs as much as possible Page 137

65.) Which of the following is an advantage of Standardization?
A. Reducing training costs and time
B. Orders fillable from inventory
C. Opportunities for long production runs and automation
D. More routine purchasing, handling, and inspection procedures
E. All of the Above

ANSWER: All of the Above Page 145

67.) What are some reasons why companies choose to recycle? Pg 141
A. Cost savings
B. Environment concerns
C. Environmental regulations

D. All of the above
E. None of the above

68.) Which best describes a disadvantage of standardization? Pg 145
A. Fewer parts to deal with in inventory
B. Order fillable from inventory

C. High cost of design changes
D. Long production runs and automation
E. Low cost of design changes decrease in resistance to improvements

70.) Ideas for products can come from which of the following sources?
A. Supply-chain based
B. Competitor based
C. Research based

D. All of the above

E. None of the Above