PowerPoint Presentation
Copyright 2016 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part. OMGoods and Service
Design6COLLIER/EVANS
51Describe the steps involved in designing goods and
servicesExplain the concept and application of quality function
deploymentDescribe how the Taguchi loss function, reliability,
design for manufacturability, and design for sustainability are
used for designing manufactured goodsLEARNING OUTCOMES#Copyright
2016 Cengage Learning. All Rights Reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible website,
in whole or in part. OM5 | CH62Explain the five elements of service
delivery system designDescribe the four elements of service
encounter designExplain how goods and service design concepts are
integrated at LensCrafters#Copyright 2016 Cengage Learning. All
Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part. OM5 |
CH6LEARNING OUTCOMES (continued) IntroductionEvery design project
is a series of trade-offs between:Technology and
functionalityAmbition and affordabilityDesires of the people
creating the object and needs of the people using it
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH64Steps Involved
in Designing Goods and Services Strategic mission and
visionStrategic and market analysis, and understanding competitive
prioritiesCustomer benefit package design and
configuration#Copyright 2016 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH65Steps Involved
in Designing Goods and Services Detailed goods, service, and
process designFor manufactured goodsManufactured design and
developmentProcess selection and designFor servicesService and
service delivery designService encounter designMarket
introduction/deploymentMarketplace evaluation
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH66Customer-Focused
DesignCustomer requirements - Wants and needs are reflected through
the design of good or serviceVoice of the customer: Customer
requirements, as expressed in the customers own termsQuality
function deployment(QFD): Approach to guide the design, creation,
and marketing of goods and services by:Integrating the voice of the
customer into all decisions#Copyright 2016 Cengage Learning. All
Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part. OM5 |
CH67Building the House of QualityDetermine customer requirements
through the voice of the customer (VOC)Define technical
requirements of the productDetermine interrelationships between the
technical requirements#Copyright 2016 Cengage Learning. All Rights
Reserved. May not be scanned, copied or duplicated, or posted to a
publicly accessible website, in whole or in part. OM5 |
CH68Building the House of QualityRelationship matrix defines what
technical requirements satisfy VOC needsCustomer priorities and
competitive evaluation help select which VOC requirements the
product should focus on
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH696.2 The House of
Quality
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5| CH6Exhibit10Tolerance
DesignDetermining the acceptable toleranceFor manufactured goods,
design blueprints specify a target dimension (nominal), along with
a range of permissible variation (tolerance)#Copyright 2016 Cengage
Learning. All Rights Reserved. May not be scanned, copied or
duplicated, or posted to a publicly accessible website, in whole or
in part. OM5 | CH6116.3 Traditional Goal Post View of Conforming to
Specifications
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5| CH6Exhibit12Taguchi
Loss FunctionGenichi Taguchi, a Japanese engineer, maintained
traditional practice of setting design specifications is
flawedArgument The smaller the variation about the nominal
specification, the better the qualityIn turn, products are more
consistent, fail less frequently, and will be less costly in the
long run
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH613Taguchi Loss
FunctionL(x) = k(x T )2WhereL(x) - Monetary value of the loss
associated with deviating from the target, Tx - Actual value of the
dimensionk - Constant that translates the deviation into
dollars#Copyright 2016 Cengage Learning. All Rights Reserved. May
not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH6146.4
Nominal-Is-Best Taguchi Loss Function
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5| CH6Exhibit15Design
for ReliabilityReliability: Probability that goods and services
performs its intended function for stated period of time under
specified operating conditionsProbability - Value between 0 and
1#Copyright 2016 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part. OM5 | CH616Design for
ReliabilitySeries system - If one component fails, the entire
system failsReliability of a series system - Product of the
individual probabilities of each process in a systemRs =
(p1)(p2)(p3). . . (pn)#Copyright 2016 Cengage Learning. All Rights
Reserved. May not be scanned, copied or duplicated, or posted to a
publicly accessible website, in whole or in part. OM5 | CH66.7
Structure of a Serial System
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5| CH6Exhibit18Design
for ReliabilityParallel systems - Functions are independent and the
entire system will fail only if all components failRp = 1 (1 p1)(1
p2)(1 p3). . . (1 pn)
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH66.8 Structure of
a Parallel System
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5| CH6Exhibit20Design
for Manufacturability (DFM)Process of designing a product for
efficient production at the highest level of quality Product
simplification: Process of trying to simplify designs to reduce
complexity and costsImproves:ProductivityQualityFlexibilityCustomer
satisfaction
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH621Design for
Sustainability Design for environment (DfE): Explicit consideration
of environmental concerns during the design of goods, services, and
processesDesigning for recycling Disassembly
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH622Service
Delivery System DesignIncludes Facility location and
layoutServicescapeProcess and job designTechnology and information
support systems#Copyright 2016 Cengage Learning. All Rights
Reserved. May not be scanned, copied or duplicated, or posted to a
publicly accessible website, in whole or in part. OM5 |
CH623Facility Location and LayoutLocation affects a customers
travel time Important competitive priority in a service
businessLayout affects process flow, costs, and customer perception
and satisfaction#Copyright 2016 Cengage Learning. All Rights
Reserved. May not be scanned, copied or duplicated, or posted to a
publicly accessible website, in whole or in part. OM5 |
CH624ServicescapePhysical evidence that customer can use to form an
impressionProvides the behavioral setting where service encounters
take placeStandardization - Enhances efficiency, especially for
multiple site organizations
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH625Dimensions and
Types of ServicescapeDimensionsAmbient conditionsSpatial layout and
functionalitySigns, symbols, and artifactsTypes Lean servicescape
environment: Provide service using simple designsElaborate
servicescape environment: Provide service using more complicated
designs and service systems
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH626Service Process
DesignActivity of developing an efficient sequence of activities
to: Satisfy internal and external customer requirementsDevelop
procedures to ensure that: Things are done right the first
timeInteractions between customers and service providers are simple
and quickHuman error is avoided
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH627Technology and
Information Support SystemsHard and soft technology is an important
factor in designing services Ensure:
SpeedAccuracyCustomizationFlexibility
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH628Service
Encounter DesignFocuses on the interaction, directly or indirectly,
between the service provider and the customerPrincipal
elementsCustomer contact behavior and skillsService provider
selection, development, and empowermentRecognition and
rewardService recovery and guarantees
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH629Customer
Contact BehaviorPhysical or virtual presence of the customer in the
service delivery system during a service experienceMeasured by the
percentage of time the customer must be in the system relative to
the total time it takes to provide the service High-contact
systemsLow-contact systems#Copyright 2016 Cengage Learning. All
Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part. OM5 |
CH630Customer Contact RequirementsMeasurable performance levels
that define the quality of customer contact with representatives of
an organizationTechnical requirements as response time Service
management skills such as cross-selling other servicesBehavioral
requirements#Copyright 2016 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH631Service
Provider Selection, Development, and EmpowermentRecruit and train
employees to exceed customer expectationsEmpowerment: Giving people
authority to make decisions based on:IntuitionControl over the work
Taking risks and learning from mistakesPromoting change
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH632Recognition and
RewardKey motivational
factorsRecognitionAdvancementAchievementNature of the workGood
compensation system can help to attract, retain, and motivate
employees#Copyright 2016 Cengage Learning. All Rights Reserved. May
not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH633Service
Guarantees Promise to reward and compensate a customer if a service
upset occurs during the service experienceService upset: Problem
that a customer has faced with the service delivery systemService
failureErrorDefectMistakeCrisis
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH634Service
RecoveryProcess of correcting a service upset and satisfying the
customerStepsBegin immediately after a service upsetDocument the
process and train employeesListen to the customer and respond
sympatheticallyResolve the problem quickly, provide an apology,
offer compensation
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH635An Integrative
Case Study of LensCraftersSteps 1 and 2 - Strategic mission, market
analysis and competitive prioritiesStep 3 - Customer benefit
package design and configurationSteps 4a and b - Manufactured good
design and process selectionStep 4c - Service-delivery system
design#Copyright 2016 Cengage Learning. All Rights Reserved. May
not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH6An Integrative
Case Study of LensCraftersStep 4d - Service encounter designSteps 5
and 6 - Market introduction/deployment and evaluation#Copyright
2016 Cengage Learning. All Rights Reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible website,
in whole or in part. OM5 | CH6An Integrative Case Study of
LensCraftersMission statement - Focused on being the best
by:Creating customers for life by delivering legendary customer
serviceDeveloping and energizing associates and leaders in the
worlds best work placeCrafting perfect quality in about an
hourDelivering superior overall value to meet each customers
individual needs#Copyright 2016 Cengage Learning. All Rights
Reserved. May not be scanned, copied or duplicated, or posted to a
publicly accessible website, in whole or in part. OM5 | CH6386.11
One Example View of LensCrafters Customer Benefit Package
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5| CH6Exhibit39An
Integrative Case Study of LensCraftersManufactured good design and
process selectionManufacturing process is integrated into the
service facility to provide rapid order response, yet not sacrifice
qualityEquipment used in labs is technologically advanced in the
industryEyewear is manufactured to specifications in a clean,
modern and professionally run facility #Copyright 2016 Cengage
Learning. All Rights Reserved. May not be scanned, copied or
duplicated, or posted to a publicly accessible website, in whole or
in part. OM5 | CH66.12 A Schematic View of a Typical LensCrafters
Store Layout
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5| CH6Exhibit41An
Integrative Case Study of LensCraftersService encounter designEach
job requires both technical and service management skillsAssociates
are well trained, friendly, and knowledgeable about their jobsLab
technicians are certified in all work tasks and processes#Copyright
2016 Cengage Learning. All Rights Reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible website,
in whole or in part. OM5 | CH6An Integrative Case Study of
LensCraftersMarket introduction/deployment and evaluationDevelop
processes to introduce changes into all existing locationsTo
maintain operational consistency and achieve its strategic
objectives
#Copyright 2016 Cengage Learning. All Rights Reserved. May not
be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH6To design and
improve goods and services, most companies use the steps involved
in designing goods and servicesTaguchi loss function: L(x) = k(x T
)2Essential to know the elements of service delivery system design
and elements of service encounter designLensCrafters manufacturing
and service design depends on a variety of operations management
concepts
SUMMARY#Copyright 2016 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH6Customer
contactDesign for environment (DfE)Design for manufacturability
(DFM)Elaborate servicescape environmentEmpowermentHigh-contact
systemsLean servicescape environmentLow-contact systemsProduct
simplificationPrototype testingKEY TERMS#Copyright 2016 Cengage
Learning. All Rights Reserved. May not be scanned, copied or
duplicated, or posted to a publicly accessible website, in whole or
in part. OM5 | CH6Quality function deployment
(QFD)ReliabilityService delivery system designService encounter
designService guaranteeService process designService
recoveryService upsetServicescapeVoice of the customer
KEY TERMS#Copyright 2016 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. OM5 | CH6#Copyright 2016
Cengage Learning. All Rights Reserved. May not be scanned, copied
or duplicated, or posted to a publicly accessible website, in whole
or in part. OM5 | CH6
