BCM542 CONSTRUCTION SYSTEM ANALYSIS

(LECTURE 3 PART 1)

PRODUCT AND SERVICES DESIGN

Product and Service Design

Major factors in design strategy

Cost
Quality
Time-to-market
Customer satisfaction
Competitive advantage

Product and service design or redesign should be

closely tied to an organizations strategy

REASONS FOR PRODUCT OR SERVICE DESIGN

OR REDESIGN

Economic (e.g low demand, excessive warranty

claims, need to reduce costs)

Social and demographic ( e.g aging baby

boomers, population shift)

Political, liability, or legal (e.g. government

changes, safety issues, new regulations)

Competitive (e.g. new or changed products or

services, new advertising/promotions)

Cost or availability (e.g. raw materials,

components, labour)

Technological (e.g. in product components,

processes)

OBJECTIVES OF PRODUCT AND SERVICE DESIGN

Main focus

Customer satisfaction

Secondary focus

Function of product/service
Cost/profit
Quality
Appearance
Ease of production/assembly
Ease of maintenance/service

DESIGNING FOR OPERATIONS

Taking into account the capabilities of

the organization in designing goods and
services
Failure to take this into consideration can
result in reduced productivity, reduced
quality and increased productivity
Design, operation and marketing must
work closely together.
In addition, legal, environmental and
ethical considerations can influence the
design function

LEGAL, ETHICAL, AND ENVIRONMENTAL

ISSUES

Legal

Ethical

FDA, OSHA, KKM

Product liability
Uniform commercial code
Releasing products with defects

Environmental

EPA (Environment Protection Agency)

REGULATIONS & LEGAL

CONSIDERATIONS

Product Liability - A manufacturer is

liable for any injuries or damages
caused by a faulty product.

Uniform Commercial Code Products carry an implication of

merchantability and fitness:
Product must be usable for its
intended purposes

DESIGNERS ADHERE TO GUIDELINES

Produce designs that are consistent

with the goals of the company
Give customers the value they
expect
Make health and safety a primary
concern
Consider potential harm to the
environment

OTHER ISSUES IN PRODUCT AND SERVICE

DESIGN

Product/service life cycles

How much standardization

Designing for mass customization

(extent to
which there is absence of variety in a product,
service or process)
( Producing basically standardized goods but
incorporating some degree of customization)

E.g Tactics mass customization Delayed

differentiation and modular design

Product/service reliability
Range of operating conditions

LIFE CYCLES OF PRODUCTS OR SERVICES

Figure 4.1

Saturation

Deman
d

Maturity
Decline
Growth

Introduction

Tim
e

PHASES IN PRODUCT DEVELOPMENT PROCESS

1.
2.
3.
4.
5.
6.
7.
8.
9.

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

IDEA GENERATION
Supply chain
based
Ideas

Competitor based
; reverse
engineering
Research based ;
basic research,
applied research or
development

Differences Between Product

and Service Design

Tangible intangible
Services created and delivered at
the same time
Services cannot be inventoried
Services highly visible to customers
Services have low barrier to entry
Location important to service

PHASES IN SERVICE DESIGN

1. Conceptualize
2. Identify

service package
components
3. Determine performance
specifications
4. Translate performance
specifications into design
specifications
5. Translate design specifications into
delivery specifications

CHARACTERISTICS OF WELL DESIGNED

SERVICE SYSTEMS
1.
2.
3.
4.
5.
6.
7.

8.
9.

Consistent with the organization mission

User friendly
Robust
Easy to sustain
Cost effective
Value to customers
Effective linkages between back operations (no
contact with customers = speed and efficiency)
and front-of-the house operations(direct contact
with customer front desk = customer service)
Single unifying theme (i.e convenience or speed)
Ensure reliability and high quality

CHALLENGES OF SERVICE DESIGN

Variable requirements
Difficult to describe
High customer contact
Service customer encounter

DISCUSSION

Think of a new revised construction

related products or service that you
would like to see on the market.
Discuss the implications of producing
that product or service relative to legal,
ethical, environment, profitability,
competitive, design and production
issues.