Managing Operations and Projects

BSS601-6

Session 2 Product and Service Design

Session Aims

Understand the product/service design

process

Examine tools for evaluating designs

Understand the new trend of servitisation

strategies

Suggest a new product or

service

Suggest a new product or service

What are the steps before you can see it on the market?

What are the principles of a good design?

Look at www.baddesigns.com

(http://www.designcouncil.org.uk/)

This is a great source for examples of good design.

http://www.baddesigns.com/http://www.designcouncil.org.uk/

The purpose of design is to

satisfy customers

Product designers will seek to create things that:

- are aesthetically pleasing;

- satisfy needs;

- meet expectations;

- perform well;

- are reliable;

- are easy to manufacture and deliver.

Operations managers tend to focus on the

design of the transformation process

Product/Service Design Process

Product Life Cycle, Sales, Cost, and Profit

Sa

les,

Co

st &

ca

sh

flo

w

Introduction Maturity Decline Growth

Cost of

Development

& Production Sales Revenue

Time Cash flow

Negative cash

flow

Loss

Profit

Importance of Product Design

Delay in

Time to

Market

delays

revenues

Increases

costs of

development.

Stages of Product/Service Design

What is designed in a product

or service?

Concept

Understanding of the nature, use and value of the service or product

Package

Component products and services that provide those benefits defined in the concept

Process

The way in which the component products and services will be created and delivered