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1. THE PURPOSE OF
PRODUCTS AND SERVICES
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THE PURPOSE OF
PRODUCTS AND SERVICES
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Product and service design and standardization are
an integral part of the production and operations management
process.
The major outcome of the company's activities is
represented by means of Products and Services provided to satisfy the needs of consumers in the
marketplace.
Naturally, such needs vary at all times, creating a continuous demand for new
products and services. These products and services differ in their design, quality, price,
and life span, but their main and common purpose is to perform effectively in accordance
with the requirements of users. Thus, it is essential to constantly search for and select
new products and services to meet the ever-changing market needs at competitive prices.
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2. WORLD CLASS MANUFACTURING AND OPERATIONAL GUIDELINES FOR PRODUCT AND SERVICE DESIGN
The prevailing World Class
Manufacturing And Operational Guidelines
provide specific direction in relation to the product or service design, as
outlined below.
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WORLD CLASS MANUFACTURING
AND OPERATIONAL
GUIDELINES FOR PRODUCT AND SERVICE DESIGN
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No.
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Details
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1
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To design new products and services that
are user-friendly and competitively priced.
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2
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To minimize the time required to introduce
new products and services in the marketplace.
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3
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To ensure that products and services are
produced in the most cost-effective manner.
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4
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To ensure that the quality and reliability
of products or services remains high to secure customers' satisfaction
in the long run.
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5
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To ensure that the organization has all
the necessary facilities to meet the demand of high quality
of products and services at competitive costs.
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6
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To ensure that new products or services
require less materials, components and packaging.
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7
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To ensure that the organization does not
cause environmental problems, while producing new products or
services.
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8
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To ensure that new products or services
add to the company's "bottom-line" and provide
further opportunity for growth and development.
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Note:
Some issues discussed below will relate solely to
products or services, while other issues will relate to
products and services.
3. PRODUCT AND SERVICE
SELECTION
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PRODUCT AND SERVICE SELECTION
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The process of Product And Service Selection represents a combined effort of
the marketing and production executives and contributes toward the future survival,
growth, and success of the company.
The source of the product
and service selection usually originates from opportunities which may arise as a result of a
careful examination of market conditions, existing product and service range,
and special
skills and resources of the organization. The process of product and service selection necessitates investigation of various organizational issues, and deals,
with the financial, manufacturing, and marketing aspects. Some of the important manufacturing considerations, for example, are
outlined below.
A new product or service can be presented to the production or operations
manager in the form of an idea, sketch, drawing, completely documented project,
or a prototype scaled model which will be subsequently converted into a standard
item. It is essential, therefore, for the production or operations manager to appreciate
various aspects and procedures related to the process of selection and design of new
products and services.
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PRODUCT AND SERVICE
SELECTION CONSIDERATIONS
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No.
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Details
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1
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Is additional equipment required?
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2
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How adequate are the labor resources?
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3
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Will the present workload be affected?
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4
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Is the raw material for products available?
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5
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How reliable are existing suppliers?
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4. PRODUCT AND SERVICE
DESIGN
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PRODUCT AND SERVICE DESIGN
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Once a new product or service has been selected and its nature has been described, the
design of the product or service may begin.
Product And Service Design
represents the activity of converting various requirements into a form
suitable for the manufacturing or operational process and further use.
Product and service design is based on a combination of creative and practical activities and may comprise
seven steps, as illustrated below.
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THE PRODUCT
AND SERVICE DESIGN PROCESS
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Step 1: Product And Service Conception.
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Step 2: Feasibility Study.
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Step 3: Preliminary Design.
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Step 4: Prototype Construction (For Products)
And Simulation (For Services).
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Step 5: Prototype Test.
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Step 6: Final Product And Service Design.
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Step 7: Pre-Production Test (For Products)
And Pre-Operation Test (For Services).
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5. STEP 1: PRODUCT AND SERVICE
CONCEPTION
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PRODUCT AND SERVICE CONCEPTION
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Product And Service Conception represents the first step in the
product
or service design, where the initial draft specifications are formulated and recorded. This is the most important step of the design activity and it provides the basis for
subsequent actions.
Preliminary Specifications should be drawn up in detail by the designer, or design
engineer in conjunction with information provided by marketing and sales
employees. The
prime purpose of the preliminary specifications is to provide basic information related to
the exact requirements of the newly developed product or service. In essence this process
entails a translation of sales requirements into a set of technical terms developed by the
designer.
As a result of the product and
service conception process certain specified information
becomes available, as outlined below.
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PRODUCT AND SERVICE
RELATED INFORMATION
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No.
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Details
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1
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Product or service performance and technical
requirements.
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2
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Product appearance requirements.
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3
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Service performance requirements.
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4
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Product or service selling price considerations.
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5
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Date by which the product or service is
required.
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6
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Quantity in which the product is required.
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7
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Frequency in which the service is required.
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8
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Product manufacturing cost considerations.
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9
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Service operational cost considerations.
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6. STEP 2: PRODUCT AND SERVICE FEASIBILITY
STUDY
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PRODUCT AND SERVICE FEASIBILITY
STUDY
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Product Or Service
Feasibility Study represents the second step
in the product or service design. At this stage the new product
or service viability should be investigated and first Draft
Specifications
evaluated.
As a result of the product and service feasibility
study the draft specifications will have to satisfy
specific requirements, as outlined below.
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PRODUCT
AND SERVICE DESIGN REQUIREMENTS
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No.
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Details
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1
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Marketing requirements.
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2
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Legal requirements.
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3
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Manufacturing requirements for products.
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4
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Operational requirements for services.
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5
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Financial requirements.
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6
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Distribution requirements.
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MANUFACTURABILITY
OF PRODUCTS AND VIABILITY OF SERVICES
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One of the important elements of the product or service
feasibility study entails a detailed evaluation of specific manufacturing
or operational requirements.
This relates to manufacturability
of the newly designed product, or viability
of newly designed service. Their analysis will indicate the ease
of product manufacturing, fabrication, assembly, or ease of providing
the service, cost, productivity, and quality.
(3)
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7.
STEP 3: PRODUCT PRELIMINARY DESIGN
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PRODUCT PRELIMINARY DESIGN
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Product Preliminary Design represents the third step in the product
design. The design of new products is carried out by designers
or engineers in the design or engineering department within the
company.
An increasing number of product are
being designed by means of computers. The
availability of Computer-Aided Design (CAD) facilities enables the designers
to create new and sophisticated products in a fraction of time in comparison
with the old design methods.
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ELEMENTS OF THE PRODUCT
PRELIMINARY DESIGN
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No.
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Details
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1
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This process may be initiated by a work
order specifying the preliminary design parameters of the
new product.
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2
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During the process of product preliminary
design, all necessary drawings should be prepared and finalized
in accordance with the basic specifications and other design
requirements.
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3
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All design and manufacturing costs of
the new product should be identified and calculated.
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4
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As a result of the product preliminary
design, the basic specification data will have to be tested
to conclude the product's acceptance or rejection. This specification
data will have to be used in the process of preparing working
drawings to enable the construction of the first prototype.
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ADVANTAGES OF
THE COMPUTER-AIDED DESIGN
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No.
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Details
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1
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Computer generated drawings and blueprints
can be stored electronically, thereby providing important
advantages during the product design processes.
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2
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CAD systems provide additional savings
in the process of product modification and blueprint storing
procedures.
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3
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CAD systems enable the designers to store
relevant product information, such as product dimensions,
tolerances, material specifications, in a database and provide
the needed information whenever required in various formats.
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4
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CAD systems provide additional important
design capabilities, such as engineering calculations, optimal
weight or size determination, cost optimization, component
reduction, product standardization, stress and thermal analysis,
etc.
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WHAT IS
CAD-CAM? |
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In the recent years CAD became an important part of a successful manufacturing formula,
namely: CAD-CAM (CAM means Computer-Aided Manufacturing).
In fact,
it
is virtually impossible to remain competitive in the current manufacturing environment
without the CAD-CAM technology. This technology is a major part of the world
class manufacturing and it enables companies to design and manufacture high quality products at
low costs.
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PRODUCT MANUFACTURABILITY
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The issue of the Product Manufacturability is also an
integral part of the product preliminary design. This aspect of
the product design deals with several questions, as outlined below.
The
product manufacturability and other related manufacturing process issues will be discussed later in the
context of Process Design.
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THE PRODUCT
MANUFACTURABILITY QUESTIONS
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No.
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Details
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1
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How will the product be manufactured in
the existing production facility?
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2
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What additional machinery, equipment,
and tooling will be required?
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WHAT IS
MODULAR DESIGN?
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Another important element of an effective design relates to Modular Design of
products. The prime objective of modular design is create a range of products with
components which can be easily replaced or interchanged with components of other similar
products.
Modular design of product enables manufacturers to reduce product design,
manufacturing and assembly costs without compromising on quality. This, in turn, enables
the company to offer products at reduced prices in the marketplace without sacrificing the
profitability. Modular design of products is particularly important in light of the
product standardization requirements which will be discussed later.
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8. STEP 3: SERVICE PRELIMINARY DESIGN
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SERVICE PRELIMINARY DESIGN |
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Some of the issues related to the
Preliminary Design
of services are similar to the corresponding issues related to
product design, while other issues are quite different, as outlined
below.
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SIMILARITY BETWEEN
SERVICE AND PRODUCT PRELIMINARY DESIGN
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No.
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Details
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1
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What are the elements of the new service?
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2
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Who will be involved in providing each
element of the new service?
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3
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What equipment or plant will be required
for the provision of new service?
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4
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What will be the cost of each element
of the new service?
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5
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Which part of the existing service can
be incorporated in the new service?
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6
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What are the timing parameters of the
new service?
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7
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How can the service be provided to customer
in the most cost effective manner?
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8
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How will the new service affect the company's
ability to meet its existing commitments?
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DIFFERENCE BETWEEN
SERVICE AND PRODUCT PRELIMINARY DESIGN
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No.
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Details
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1
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Product is tangible, while service is
intangible. However, in both cases the main focus is on customer's
satisfaction.
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2
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Product is manufactured, while service
is rendered. For this reason customers can discover problems
with a product before receiving it, while problems with a
service can be discovered only after it was rendered.
Subsequently, the service design process must incorporate
effective training procedures for the service providers.
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3
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Product can be stored, while service can
not be stored. This imposes additional restrictions on the
operational capacity design, since there can be no "service
inventory" in the stores.
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4
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Product is delivered in a "package",
while service is rendered during a "process".
This creates an additional dimension which must be taken into
account during the service design process to ensure full customers'
satisfaction.
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5
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Product can be delivered at any location,
while rendering service may require special location which
will be acceptable to the customer. Location selection, therefore,
is very important in the service design process.
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6
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Product does not require contact between
the manufacturer and the customer, while service may require
various levels of contact between the service provider and
the customer. It is essential, therefore, to identify the
degree of contact requirement between the service provider
and the customer, and to take it into account during the process
of service design.
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SERVICE BLUEPRINT
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Service Blueprint represents a useful tool in the service
preliminary design process. Such
blueprint, like a drawing for a new product, will
help to analyze and summarize relevant
details of the proposed new service. The main elements of a good service
blueprint are outlined below.
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ELEMENTS OF A SERVICE
BLUEPRINT
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No.
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Details
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1
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Establish the basic parameters and limitations
of the proposed new service.
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2
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Identify and summarize all steps involved
in the new service.
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3
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Develop a flowchart of all main steps related
to the new service.
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4
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Identify potential strengths and weaknesses
of the proposed flow chart and each step.
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5
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Develop a suitable time frame for executing
each step of the new service. Keep in mind that time and quality
are two very important parameters during the service rendition
process. Thus, if customers can get what they want from your
service at minimum time and maximum quality at the right price
- your new service design will have a chance for success.
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6
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Analyze the key profitability factors related
to the new service design. Identify factors which may cause
a negative response from customers thereby potentially reducing
the profitability of the newly proposed service. Among prime
profitability factors are time, quality, and reliability of
the service. Establish design parameters which will ensure that
negative response by customers will be minimized and positive
response will be maximized to secure a successful and profitable
operation.
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9. STEP 4: PRODUCT PROTOTYPE CONSTRUCTION
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PRODUCT PROTOTYPE CONSTRUCTION
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Product Prototype Construction represents the fourth step in the
product design and
is carried out by production employees in conjunction with the engineering department.
The
main objective at this stage is to translate the information laid down in specifications
and working drawings into a real prototype.
The cost requirement of the final product should be viewed in the context of further
production considerations. These considerations depend substantially on the manufacturing
methods applied during the production process and the necessary quantities of manufactured
goods. Development of a product
prototype
has several advantages, as outlined below
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ADVANTAGES OF A
PRODUCT PROTOTYPE CONSTRUCTION
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No.
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Details
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1
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It is often impossible to take into account
all details during the preliminary design stage. Therefore,
only the completion of a working prototype will provide additional
information related to product design parameters. Such a prototype
should meet as many of the basic design requirements as possible,
and any differences should be taken into account.
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2
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Although cost considerations
should not be ignored, the technical requirements and appearance
play the most important role at this stage of product development.
The prototype should provide a clear indication of the feasibility
of the proposed design in meeting all aspects of the required
product specifications.
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10. STEP 4: SERVICE SIMULATION AND TESTING
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SERVICE SIMULATION AND TESTING
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Since service is an intangible commodity, no prototype can be built to illustrate it.
However, depending upon the nature of the service, it might be useful to develop
Service Simulation And Testing procedure, whereby the service provider will create the
environment and conditions which will be similar to "the real thing".
A typical example of such
service simulation and testing may be illustrated by what
students go through in any medical school, while learning how to extract teeth
(on
dummies), or conduct other essential medical procedures. Obviously, no customer would like to get a service from a medical doctor
and, particularly, a dentist,
knowing that he or she is "the first customer".
Since some types of services may offer experience similar to
"going to the
dentist", is essential, to consider service simulation and testing during the service
design process to ensure the ultimate high quality of service and customer
satisfaction.
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11. STEP 5: PRODUCT PROTOTYPE TEST
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PRODUCT
PROTOTYPE TEST
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Product Prototype Test represents the fifth step in the product
design and it's purpose is to evaluate the performance of the newly developed product.
Some of the issues related to the product
prototype test are outlined below.
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PRODUCT PROTOTYPE
TEST RELATED ISSUES
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No.
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Details
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1
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The prototype should be tested in real
life conditions, and for this purpose some potential users
could be of great assistance. Their comments and feedback
may be valuable throughout the product development process.
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2
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The prototype's performance should be
monitored during such tests, and appropriate results should
be properly evaluated.
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3
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The prototype should be examined by the
production department and the design team to establish possible
manufacturing problems.
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4
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All components, sub-assemblies, and the
final assembly should be examined separately and detailed
manufacturing cost estimates should be prepared.
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PRODUCT
REDESIGN REQUIREMENTS
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As a direct result of a product prototype test certain parts may
have to be redesigned or substituted by other parts in order to
meet relevant manufacturing requirements.
Sometimes
there is a need to redesign a particular product in order to satisfy manufacturing cost
considerations. This could be achieved by substituting with cheaper materials or by
appropriately altering the manufacturing process itself. Finally, the prototype test results should be confirmed and documentation prepared
for
the final product design.
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12. STEP 6: PRODUCT FINAL DESIGN
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PRODUCT FINAL DESIGN
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Product Final Design represents the sixth step in the product design and is carried
out by the design team responsible for the whole project development.
Once all the
preceding stages have been accomplished it is necessary to summarize all relevant
information - material specifications, working drawings, manufacturing data and
tooling
requirements - and to pass them for a final approval by the chief designer.
As a result of
the product final design procedure, all specifications should be summarized and confirmed
and all working drawings approved for the actual manufacturing process.
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13. STEP 6: SERVICE FINAL
DESIGN
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SERVICE FINAL DESIGN
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Service Final Design is also important in the new service design process. At this
stage it is essential to summarize all relevant information related to the service
provider - material specification, location specification, tooling requirements, and any
other details related to the service - and to pass them for final approval by the chief
designer.
As a result of the service
final design procedure, all specifications should be
summarized and confirmed and all working documents approved for the actual operation.
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14. STEP 7: PRE-PRODUCTION TESTING OF
PRODUCTS
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PRE-PRODUCTION TESTING OF PRODUCTS
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The Pre-Production Testing Of Products represents the last stage of
the product design and is carried out by employees in the production department and the design team.
The main objective of this stage is to summarize all details of the manufacturing process
and, particularly in the case of large-scale production requirements, to carry
out a pilot
test conducted under real production conditions.
The new product should be tested to customer specification with equipment that will
be
used in the actual manufacturing process. This test should be undertaken prior to
the
start of the main production operation in order to identity any further faults and
problems. During the process of pre-production testing various
elements, outlined below, should undergo final evaluation.
As a result of the pre-production testing procedure all
products,
materials,
equipment, and labor specifications should be summarized and finally approved prior to
commencement of the actual manufacturing process.
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ELEMENTS OF THE PRE-PRODUCTION
TESTING OF PRODUCTS
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No.
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Details
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1
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Product specifications.
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2
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Manufacturing drawings.
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3
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List of components.
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4
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Manufacturing processing data.
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5
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List of tools, dies, and jigs.
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6
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Material specifications.
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7
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Details of equipment.
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8
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Details of special labor skills.
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15. PRE-OPERATIONAL TESTING OF SERVICES
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PRE-OPERATIONAL TESTING OF SERVICES
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Pre-Operational Testing Of Services represents the final stage in the
new service design process. This process is similar to the pre-production
testing of new products with
the only difference that products are tangible while services are not.
In case of
medical doctors and dentists, for example, the testing of their medical
services must be completed while
they are still at school. Once they pass all tests and get their diplomas,
doctors are ready
to provide the real service to real customers.
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16. WHAT IS THE CRITICAL PATH METHOD?
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THE CRITICAL PATH
METHOD
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The process of product and service design must be properly planned and controlled to
ensure acceptable results and thorough execution of the specific project. One of the most
effective methods for product or service design, planning, and control is the
Critical
Path Method (CPM).
The main objective of the Critical
Path Method is to determine a pre-planned
sequence of activities that will provide sufficient guidance throughout the project to
achieve its timely completion. Each progressive stage of product or service design is
compared with the CPM Chart to ensure that all project requirements are met.
A
typical CPM Chart describing various elements of product development and introduction to
the market is illustrated below.
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17.
SMALL BUSINESS EXAMPLE:
THE CRITICAL
PATH METHOD
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18.
PRODUCT AND SERVICE STANDARDIZATION
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PRODUCT AND SERVICE STANDARDIZATION
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Apart from new product and service design procedures
it is necessary to establish effective Product
And Service Standardization and to determine
its influence on various activities of the company.
Product or service variety represents a typical
situation within any manufacturing or service
organization, as described below
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PRODUCT
AND SERVICE VARIETY
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No.
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Details
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1
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A
range of products is made and different materials
are used in conjunction with various manufacturing
methods. The degree of product variety differs
from one company to another, but its control
is considered to be an important managerial
responsibility.
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2
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A
range of services is provided using various
operational methods. The degree of service
variety differs from one service provided
to another, however, its control is an important
managerial responsibility.
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3
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In
case of products, for example, an increased
product range usually requires an additional
number of components and enlarged storage
facilities. This may subsequently increase
the workload in the production department
and cause unnecessary difficulties in inventory
control.
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PRODUCT
VARIETY REDUCTION PROGRAM
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The increased product range may cause problems
in many aspects of the company's activities
and, therefore, it may be necessary to develop
a Product Variety Reduction Program.
This process is known as Product Range
Optimization and comprises three
elements, as illustrated below.
The
reduction and optimization of the product range
provides greater efficiency in design efforts
and increased productivity in the production
department, as outlined below.
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PRODUCT RANGE OPTIMIZATION
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Product Range
Simplification
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Product Range
Standardization
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Product Range
Specialization
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The process of identifying
the product variety and reducing existing
product lines by excluding slow-moving
items.
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The product range classification based on
a reduced number of product lines.
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The product range classification based on
the availability of particular knowledge and
skills.
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