GOODS AND SERVICES DESIGN
GROUP II

DESIGNING GOODS AND
SERVICES
Rodilyn Francisco

Strategic Mission and
Vision
Strategic and Market Analysis
and understanding Competitive
Priorities
An Integrated Framework for
Goods and Service Design

Strategic Mission and
Vision
Strategic and Market
Analysis and understanding
Competitive Priorities
Customer Benefit Package
Design and Configuration

Strategic Mission and
Vision
Strategic and Market Analysis
and understanding Competitive
Priorities
Customer Benefit Package
Design and Configuration
Detailed Goods, Service and
Process Design

Strategic Mission and
Vision
Strategic and Market
Analysis and
understanding
Competitive Priorities
Customer Benefit
Package Design and
Configuration
Detailed Goods, Service
and Process Design
Manufactured Good
Design and
Development

Strategic Mission and Vision
Strategic and Market Analysis
and understanding Competitive
Priorities
Customer Benefit Package Design
and Configuration
Detailed Goods, Service and
Process Design
Manufactured Good Design and
Development
Manufactured Good Design and
Development
Process and Selection and Design

Strategic Mission and Vision
Strategic and Market Analysis
and understanding Competitive
Priorities
Customer Benefit Package Design
and Configuration
Detailed Goods, Service and
Process Design
Manufactured Good Design and
Development
Manufactured Good Design and
Development
Process and Selection and Design
Service and Service Delivery
System Design

Strategic Mission and Vision
Strategic and Market Analysis
and understanding Competitive
Priorities
Customer Benefit Package Design
and Configuration
Detailed Goods, Service and
Process Design
Manufactured Good Design and
Development
Manufactured Good Design and
Development
Process and Selection and Design
Service and Service Delivery
System Design
Service Encounter Design

Strategic Mission and Vision
Strategic and Market Analysis
and understanding Competitive
Priorities
Customer Benefit Package Design
and Configuration
Detailed Goods, Service and
Process Design
Manufactured Good Design and
Development
Manufactured Good Design and
Development
Process and Selection and Design
Service and Service Delivery
System Design
Service Encounter Design
Market
Introduction/Deployment

Strategic Mission and Vision
Strategic and Market Analysis
and understanding Competitive
Priorities
Customer Benefit Package Design
and Configuration
Detailed Goods, Service and
Process Design
Manufactured Good Design and
Development
Manufactured Good Design and
Development
Process and Selection and Design
Service and Service Delivery
System Design
Service Encounter Design
Market Introduction/Deployment
Market Evaluation

ROBUST DESIGN AND THE
TAGUCHI LOSS FUNCTION
JONAS BANGCO

ROBUST DESIGN AND THE
TAGUCHI LOSS FUNCTION
The performance of a good or
service is affected by
variations that occur during
production or service delivery,
environmental factors, and
the ways in which people use
it.

Goods that are insensitive
to external sources of
variation are called robust

Genichi Taguchi
• A Japanese engineer who made numerous
contributions to the field quality management,
explained the economic value of reducing variation in
manufacturing. Taguchi maintaned that the
traditional practice of meeting design specification is
inherently flawed.

Traditional Goal Post View of Conforming to
Specifications
Tolerance
0.480 0.520
LossLoss
No Loss
0,500

Taguchi measured quality as the
variations from the target value of
design specification and then
translated that variation into an
economic “loss function” that
expresses the cost of variation in
monetary terms. The economic loss
applies to both goods and services.

Taguchi assumed that losses can be
approximated by a quadratic
function so that larger deviations
from target cause increasingly
larger losses.

The loss function is represented by:
L(x) = k(x-T)2

Nominal Is Best Taguchi Loss Function
L(X)
Quality Characteristic Value
K(x-T)2
XT

Reliability and Quality
Function Deployment
Raven Pascual

Reliability
• Is the probability that manufactured good, piece of equipment, or
system performs its intended function for a stated period of time
under specified operating conditions.
Note : A system could be a service process where each stage (work
activity or station) is analagous to a companent part in a
manufactured good.

This definition has four important elements :
• Probability
• Time
• Performance
• Operating conditions

Probability
• A probability of .97 indicates that, on average, 97 out of 100 times the
item will perform it function for a given period of time under
specified operating conditions.

Time
• A device having a reliabilty of .97 for 1,000 hours of operation is
inferior to one that has the same reliability for 5,000 hours of
opertion, if the objective of the device is long life.

Performance
• The reliabilty of a system is the probability that the system will
perform satisfactorily over a specified period of time

Operation Conditions
• Many manufactured goods consist of several components that are
rearranged in series but are assumed to be interdependent of one
another.

Structure of a Serial System
Component
1
Component
n
Component
2
. . .

• If we know the reliabilty, pj, for each component, j, we can compute
the total reliability of an n-component series system, Rs.
• If the individual reliabilities are denoted by P1, P2, . . ., Pn Land the
system reliability is denoted by Rs, then

Equation 6.2
Rs = (p1) (p2) (p3) ... (pn)

Structure of a Parallel System
Component
1
Component
n
Component
2
.
.
.

Equation 6.3
• The system reliabiilty of an n- component parallel system is computed
as:
Rp = 1 – (1-p1) (1-p2) (1-p3) ... (1-pn)

Combinations of series and parallel
components
• Compute the reliability of the parallel components using the equation
Rp = 1 – (1-p1) (1-p2) (1-p3) ... (1-pn) and treat the result as a single
series component
• Use the equation Rs = (p1) (p2) (p3) ... (pn) to compute the reliability
if the resulting series system.

Subassemblies Reliabilites
To find the reliability of the proposed product design , we note that this is a series system and use equation 6.2
A CB
.98 .99.91
Rs = (p1) (p2) (p3) ... (pn)
= (.98) (.91) (.99)
= .883, or 88.3%

Modified Design
Now suppose that the original subassembly B is duplicated, creating a
paralle path
Illustration 6.7
What is the reliability of this configuration?
B
B
A C
.91
.98 .99
.91

The reliability of the parallel system for subassembly B is
Rp = 1 - (1-.91) (1-.91)
= 1 – (.09) (.09)
= 1 - .0081
= .9919

Rs = (p1) (p2) (p3)
= (.98) (.9919) (.99)
= .962, or, 96.2%
The reliabilty of the total product increases from 88.3% tp 96.2% for an
absolute increase of 7.9%

Quality Finction Deployment
• is both a philosophy and a set of planning and communication tools that
focuses on costumer requirements in coordinating the design ,
manufacturing, and marketing of goods or services.
• Costumer requirements, as expressed in the costumers own terms, are
called the voice of the costumer.
• QFD focuses on turning the voice of the costumer into specific technical
requirements that characterize a design and provide the “blueprint” for
manufacturing or service delivery. Technical requirements might include
materials, size and shapeof parts, strength requirements, service
procedures to follow, and even employee behavior during costumer
interactions. The process is initiated with a matrix, which because of its
structure (shown in Exhibit 6.8) is often called the House of Quality.

SERVICE
DELIVERY
DESIGN SYSTEM

FACILITY
LOCATION AND
LAYOUT
SERVICESCAPE
SERVICE
PROCESS AND
JOB DESIGN
TECHNOLOGY AND
INFORMATION
SUPPORT
SYSTEMS
ORGANIZATIONAL
STRUCTURES

FACILITY LOCATION AND
LAYOUT
Location
Layout

SERVICESCAPE
LEAN SERVICESCAPE ENVIRONMENTS
ELABORATE SERVICESCAPE ENVIRONMENTS

SERVICE PROCESS AND JOB DESIGN
Service Process Design

TECHNOLOGY AND INFORMATION
SUPPORT SYSTEM

ORGANIZATIONAL STRUCTURES

CUSTOMER
CONTACT BEHAVIOR
AND SKILLS
SERVICE-PROVIDER
SELECTION,
DEVELOPMENT, AND
EMPOWERMENTS
RECOGNITION AND
REWARDS
SERVICE RECOVERY
AND GUARANTEES
SERVICE
ENCOUNTER
DESIGN

CUSTOMER
CONTACT
HIGH-
CONTACT
SYSTEMS
CUSTOMER
CONTACT
BEHAVIOR AND
SKILLS
LOW-
CONTACT
SYSTEMS
CUSTOMER-CONTACT
REQUIREMENTS
• are measurable
performance levels or
expectations that
define the quality of
customer contact with
representatives of an
organization

SERVICE-PROVIDER SELECTION, DEVELOPMENT,
AND EMPOWERMENTS
EMPOWERMENT

RECOGNITION
AND
AWARD

SERVICE
RECOVERY
AND
GUARANTEES
SERVICE
UPSET
SERVICE
GUARANTEE
SERVICE
RECOVERY