4 key types of services which make these 4 airports good and 4 airports bad ?!

As discussed in class today propose 4 key service difference that make the following airports land on either “Andy’s favorite” or “Andy’s most despised” airport list.  

  Andy’s Favorites:Singapore Changi (SIN)Atlanta Hartsfield (ATL)Amsterdam Schipol (AMS)Tokyo Narita (NRT)Andy’s Despised:Paris deGaulle (CDG)London Heathrow (LHR)New York JFK (JFK)San Francisco International (SFO)Good luck.  If you have been to some of these airports it will help; if not, try and find some of your classmates that have.  Remember that this is a Service Oriented assignment so think of key factors of Service Industries Andy Suszko

Product and
Service Design
McGraw-Hill/Irwin
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

You should be able to:
Explain the strategic importance of product and service design
Identify some key reasons for design or redesign
Recognize the key questions of product and service design
List some of the main sources of design ideas
Discuss the importance of legal, ethical, and sustainability considerations in product and service design
Explain the purpose and goal of life cycle assessment
Explain the phrase “the 3 Rs”
Briefly describe the phases in product design and development
Name several key issues in manufacturing design
Recognize several key issues in service design
Name the phases in service design
List the characteristics of well-designed service systems
Assess some of the challenges of service design
4-*

The essence of an organization is the goods and services it offers
Every aspect of the organization is structured around them

Product and service design – or redesign – should be closely tied to an organization’s strategy
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Service
Product

Translate customer wants and needs into product and service requirements
Refine existing products and services
Develop new products and services
Formulate quality goals
Formulate cost targets
Construct and test prototypes
Document specifications
Translate product and service specifications into process specifications
Involve Inter-functional Collaboration
4-*
Value =
Benefits – Dis-satisfiers
Price

The driving forces for product and service design or redesign are market opportunities or threats:
Economic
Social and Demographic
Political, Liability, or Legal
Competitive
Cost or Availability
Technological
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Is there a demand for it?
Market size
Demand profile

Can we do it?
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

What level of quality is appropriate?
Customer expectations
Competitor quality
Fit with current offering

Does it make sense from an economic standpoint?
Liability issues, ethical considerations, sustainability issues, costs and profits
4-*

Ideas can come from anywhere in the supply chain:
Customers
Suppliers
Distributors
Employees
Maintenance and repair personnel
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By studying how a competitor operates and its products and services, many useful ideas can be generated
Reverse engineering
Dismantling and inspecting a competitor’s product to discover product improvements
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Research and Development (R&D)
Organized efforts to increase scientific knowledge or product innovation
Basic research
Has the objective of advancing the state of knowledge about a subject without any near-term expectation of commercial applications
Applied research
Has the objective of achieving commercial applications
Development
Converts the results of applied research into useful commercial applications.
4-*

Legal Considerations
Product liability
The responsibility a manufacturer has for any injuries or damages caused by as faulty product
Some of the concomitant costs
Litigation
Legal and insurance costs
Settlement costs
Costly product recalls
Reputation effects
Uniform Commercial Code
Under the UCC, products carry an implication of merchantability and fitness
4-*

Designers are often under pressure to
Speed up the design process
Cut costs
These pressures force trade-off decisions
What if a product has bugs?
Release the product and risk damage to your reputation
Work out the bugs and forego revenue
4-*

Sustainability
Using resources in ways that do not harm ecological systems that support human existence
Key aspects of designing for sustainability
Cradle-to-grave assessment (Life-Cycle assessment)
End-of-life programs
The 3-Rs (Reduce, Reuse, Recycle)
Reduction of costs and materials used
Re-using parts of returned products
Recycling
4-*

Cradle-to-Grave Assessment
aka Life-Cycle Assessment (LCA)
The assessment of the environmental impact of a product or service throughout its useful life
Focuses on such factors as
Global warming
Smog formation
Oxygen depletion
Solid waste generation
LCA procedures are part of the ISO 14000 environmental management procedures
4-*

EOL programs deal with products (business and consumer) that have reached the end of their useful lives
The goal of such programs is to reduce the dumping or incineration of products (e.g., electronics) which may pose hazards to the environment
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Value analysis
Examination of the function of parts and materials in an effort to reduce the cost and/or improve the performance of a product
Common questions used in value analysis
Is the item necessary; does it have value; could it be eliminated?
Are there alternative sources for the item?
Could another material, part, or service be used instead?
Can two or more parts be combined?
Can specifications be less stringent to save time or money?
Do suppliers/providers have suggestions for improvements?
Can packaging be improved or made less costly?
4-*

Remanufacturing
Refurbishing used products by replacing worn-out or defective components
Can be performed by the original manufacturer or another company
Reasons to remanufacture:
Remanufactured products can be sold for about 50% of the cost of a new product
The process requires mostly unskilled and semi-skilled workers
In the global market, European lawmakers are increasingly requiring manufacturers to take back used products
Design for disassembly (DFD)
Designing a product to that used products can be easily taken apart
4-*

Recycling
Recovering materials for future use
Applies to manufactured parts
Also applies to materials used during production
Why recycle?
Cost savings
Environmental concerns
Environmental regulations
Companies doing business in the EU must show that a specified proportion of their products are recyclable
Design for recycling (DFR)
Product design that takes into account the ability to disassemble a used product to recover the recyclable parts
4-*

Strategies for product or service life stages
Standardization
Product or service reliability
Product or service robustness
Degree of newness

4-*

4-*
Crucial Question: How does someone like Coca-Cola address this?

Standardization
Extent to which there is an absence of variety in a product, service, or process
Products are made in large quantities of identical items
Every customer or item processed receives essentially the same service
4-*

Advantages
Fewer parts to deal with in inventory and in manufacturing
Reduced training costs and time
More routine purchasing, handling, and inspection procedures
Orders fillable from inventory
Opportunities for long production runs and automation
Need for fewer parts justifies expenditures on perfecting designs and improving quality control procedures
Disadvantages
Designs may be frozen with too many imperfections remaining.
High cost of design changes increases resistance to improvements
Decreased variety results in less consumer appeal

4-*
If something is completely standardized, it is a commodity!!!!

Mass customization
A strategy of producing basically standardized goods or services, but incorporating some degree of customization in the final product or service
Facilitating Techniques
Delayed differentiation
Modular design
4-*
The Best: is “Late Product Differentiation”

Delayed Differentiation
The process of producing, but not quite completing, a product or service until customer preferences are known
It is a postponement tactic
Produce a piece of furniture, but do not stain it; the customer chooses the stain
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Key Advantages?

Modular Design
A form of standardization in which component parts are grouped into modules that are easily replaced or interchanged
Advantages
easier diagnosis and remedy of failures
easier repair and replacement
simplification of manufacturing and assembly
training costs are relatively low
Disadvantages
Limited number of possible product configurations
Limited ability to repair a faulty module; the entire module must often be scrapped
4-*

Reliability
The ability of a product, part, or system to perform its intended function under a prescribed set of conditions
Failure
Situation in which a product, part, or system does not perform as intended
Reliabilities are always specified with respect to certain conditions
Normal operating conditions
The set of conditions under which an item’s reliability is specified
4-*

Robust design
A design that results in products or services that can function over a broad range of conditions
The more robust a product or service, the less likely it will fail due to a change in the environment in which it is used or in which it is performed
Pertains to product as well as process design
Consider the following automobiles:
Ferrari Enzo
Toyota Avalon
Which is design is more robust?
4-*
But …. which is “cooler”

Quality Function Deployment (QFD)
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
Listening to and understanding the customer is the central feature of QFD
4-*
Whole Brain Theory

*
QFD is Here

Basic quality
Refers to customer requirements that have only limited effect on customer satisfaction if present, but lead to dissatisfaction if absent
Performance quality
Refers to customer requirements that generate satisfaction or dissatisfaction in proportion to their level of functionality and appeal
Excitement quality
Refers to a feature or attribute that was unexpected by the customer and causes excitement
4-*

Feasibility analysis
Product specifications
Process specifications
Prototype development
Design review
Market test
Product introduction
Follow-up evaluation
4-*

Concurrent engineering
Computer-assisted design
Production requirements
Component commonality
4-*

Concurrent engineering
Bringing engineering design and manufacturing personnel together early in the design phase
Also may involve manufacturing, marketing and purchasing personnel in loosely integrated cross-functional teams
Views of suppliers and customers may also be sought
The purpose is to achieve product designs that reflect customer wants as well as manufacturing capabilities
4-*

Designers must take into account production capabilities
Equipment
Skills
Types of materials
Schedules
Technologies
Special abilities
4-*

Design for manufacturing (DFM)
The designing of products that are compatible with an organization’s abilities
Design for assembly (DFA)
Design that focuses on reducing the number of parts in a product and on assembly methods and sequence
Instructor Slides
4-*
Instructor Slides

A more general term
Manufacturability
Ease of fabrication and/or assembly
It has important implications for
Cost
Productivity
Quality
Instructor Slides
4-*
Instructor Slides

When products have a high degree of similarity in features and components, a part can be used in multiple products
Benefits:
Savings in design time
Standard training for assembly and installation
Opportunities to buy in bulk from suppliers
Commonality of parts for repair
Fewer inventory items must be handled
Instructor Slides
4-*
Instructor Slides

Service
Something that is done to, or for, a customer
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, accompanying goods, and the explicit (core features) and implicit (ancillary features) services included
Instructor Slides
4-*
Instructor Slides

Begins with a choice of service strategy, which determines the nature and focus of the service, and the target market
Key issues in service design
Degree of variation in service requirements
Degree of customer contact and involvement
Instructor Slides
4-*
Instructor Slides

Products are generally tangible, services intangible
Services are created and delivered at the same time
Services cannot be inventoried
Services are highly visible to consumers
Some services have low barriers to entry and exit
Location is often important to service design, with convenience as a major factor
Service systems range from those with little or no customer contact to those that have a very high degree of customer contact
Demand variability alternately creates waiting lines or idle service resources
Instructor Slides
4-*
Instructor Slides

4-*

Effective product and service design can help the organization achieve competitive advantage:
Packaging products and ancillary services to increase sales
Using multiple-use platforms
Implementing tactics that will achieve the benefits of high volume while satisfying customer needs for variety
Continually monitoring products and services for small improvement opportunities
Reducing the time it takes to get a new or redesigned product or service to the market
4-*
We called it the
“Stealth Strategy”