PRODUCT DESIGN

&
PROCESS
SELECTION
 Product Design And Process Selection
1. Product design
2. Steps in product design
3. Factors to consider in product design
4. Process selection
5. Relationship between product design & process
6. Nature of service as a product
7. Designing service
8. Emerging issues in product design
Customer Satisfaction begins with product and service design.
Moreover, decisions are made in this area impact operations and
the organization’s overall success.

Process selection and capacity planning impact the ability of the

product system to deform and to satisfy customers. Flexibility,
Production time, and Cost are key considerations in process
design.

Process selection and layout are closely related. Layout decisions

are influenced by decisions made in product and service design.
Background
Designing new product and getting them to the market is the
challenging job faced by most of the manufacturers in this
competitive market.
Customers demands are changing rapidly so it is the main
responsibility of manufacturers to add the customers’
specifications in the product and deliver it to them in lowest cost.
The product development activity links customers needs and
expectations to the activities required to manufacturer the
product.
How manufactured products are designed and how the process
to produce them is selected are the main concern of this topic.
Definitions
Product design is concerned with form and functions of a product.
It refers to the arrangement of elements or parts that collectively
form a product.
Although the potential opportunities to be realized in developing
new products are exciting. Making them happen is a demanding
challenge.
Product design specifies which materials are to be used,
determines and tolerances, defines the appearance of the product
and sets standards for performance.
An organization can gain a competitive edge through designs that
brings new ideas to the market quickly, do a better job of satisfying
customer needs, or are easier to manufacture, use and repair the
existing products.
• In any business venture, product design is the first step
immediately after accepting the concept of a product.

• It has direct bearing on plant layout, and in process material flow.

In the process of product design, one has to critically analyze
different design features with relevance to places of use, substitute
materials, and carefully plan equipment alternatives for
manufacturing the product.

• Therefore, the purpose of product design is to determine and

specify products that will be profitable to manufacturers and
distributors and will give customers satisfaction.
Product design can explain by following diagram
 Product design includes Form Design and Functional Design.
• Form design means the shape and appearance of the product.

• Functional design means the working of the product. That is, how the product works. It is very important
because the product will sell only if it works as expected.

• Form design is less important because it adds nothing to the product's performance. However, it cannot be
ignored because a product will not sell if it doesn't look good and is not appealing to buyers.

• Product design includes Package designing too. An eye-catching attractive package appeals customers to
try a product; this increases sales.

• Finally, it also includes both; product-research and product-development.

• Product research is done to discover new products.

• Product development is done to improve the existing product.

Steps in Product Design
 Steps in Product Design
Certain steps are common in the development of most product
design. They are the following:
Step 1: Idea Development
All product design begin with an idea. Someone thinks of a need and a product design
that would satisfy it.
Step 2: Product Screening
Once an idea is developed, it needs to be evaluated. Often a business comes up with
numerous product ideas. At this stage we need to screen the ideas and decide which
ones have the greatest chance of succeeding.
Step 3: Preliminary Design and Testing
This is the stage where preliminary design of the product is made and market testing and
prototype analysis are performed.
Step 4: Final Design
This is the last stage, where the final design of the product is made.
 Step 1: Idea Development
All product designs begin with an idea. The idea might come from a
product manager who spends time with customers and has a sense
of what customers want, from an engineer with a flare for
inventions, or from anyone else in the company.
Main source of idea:
Customers and Competitors
Way of using idea:
Reverse Engineering
 Step 2: Product Screening
After a product idea has been developed it needs to be evaluated to
determine its likelihood of success. This is called product screening.
The company’s product screening team evaluates the product
design according to the needs of the major business functions. In
their evaluation, executives from each functional area may explore
issues such as the following:

 Operations
 Marketing
 Finance
There is no magic formula for deciding whether or not to
pursue a particular product idea.
Management analyzes operations, marketing, and
financial factors, and then makes the final decision.
We have decision-making tools to help us evaluate new
product ideas.
A popular one is break-even analysis, which we will look
at next ……………………
 Break-Even Analysis:
A tool for Product Screening
Break-even analysis is a technique that can be
useful when evaluating a new product. This
technique computes the quantity of goods a
company need to sell just to cover its costs, or
break even, called the “break-even” point.
 Calculation of Break-Even Point
We know that
Total cost = Fixed cost + Variable cost

Using symbols, we have the following equation:

Total cost = FC + (VC) Q

Where, FC = fixed cost

VC = variable cost per unit
Q = number of unit sold
 Total revenue = SP (Q)
Where; SP = Selling price per unit

Now according to assumption of BE analysis

Total cost = Total revenue

FC + VC (Q) = SP (Q)
by solving above equation, we found ……..
Following figure shows a graphical representation of these costs as
well as the break-even quantity
Numerical problem:
 Fred Boulder, owner of Sports Feet Manufacturing, is considering
whether to produce a new line of footwear. Fred has considered both
the processing needs for the new product as well as the market
potential. He has also estimated that the variable cost for each
product manufactured and sold is Rs.9 and the fixed cost per year is
Rs.52,000.

(a) If Fred offers the footwear at a selling price of Rs.25, how many pairs
must he sell to break even?

(b) If Fred sells 4000 pairs at the Rs.25 price, what will be his
contribution to profit?
 Step 3: Preliminary Design and Testing
Once a product idea has passed the screening stage, it is
time to begin preliminary design and testing. At this stage,
design engineers translate general performance
specifications into technical specifications. Prototype are
built and tested.
Note: Changes are made based on test results
and the process of revising, rebuilding a
prototype, and testing continues.
 Step 4: Final Design
Following extensive design testing the product moves to the
final design stage. This is where final product specifications are
drawn up.
The final specifications are then translated into specific
processing instructions to manufacture the product, which
include selecting equipment, outgoing jobs that need to be
performed, identifying specific materials needed and suppliers
that will be used, and all the other aspects of organizing the
process of product production.
 Factors to consider in
product design
Here are some factors that need to be considered during the
product design stage:
Design for Manufacture (DFM)
Product Life Cycle (PLC)
Concurrent Engineering (CE)
Remanufacturing
 Design for Manufacture (DFM)
When we think of product design, we generally first of how to
please the customer. However, we also need to consider how easy
or difficult it is to manufacture the product.
Design for manufacture (DFM) is a series of guidelines that we
should follow to produce a product easily and profitably. DFM
guideline include the following:
1. Minimize parts
2. Design parts for different products
3. Use modular design
4. Simplify operations
 Product Life Cycle (PLC)

Another factor in product design is the stage of the life cycle of the
product. Most products go through a series of stages of changing
product demand called product life cycle. There are typically four
stages of the product life cycle:
Introduction
Growth
Maturity
Decline
 Product Life Cycles
Cost of development and production
Sales, cost, and cash flow

Sales revenue
Net revenue (profit)

Cash flow

Negative cash
flow Loss

Introduction Growth Maturity Decline

 PRODUCT LIFE CYCLE

Awareness
Market
Becomes
Saturated
Demand Defensive
Curiosity Levels Off Research
 Concurrent Engineering (CE)

Concurrent engineering is an approach that brings many people

together in the early phase of product design in order to
simultaneously design the product and the process.

Traditionally designers developed a new product without any input

from manufacturing and then turn the design to the manufacturing
team for them to developed the product.

• OVER-THE-WALL Created tremendous challenges for manufacturing,

generating numerous conflicts and greatly increasing the time
needed to successfully produce a new product. It contributed to the
“us vs. them” mentality.
Traditional Design vs Concurrent Engineering
 Remanufacturing

Remanufacturing is a concept that has been gaining increasing

importance, as our society becomes more environmentally conscious
and focuses on efforts such as recycling and eliminating waste.
Remanufacturing uses components of old products in the
production of new ones.
Remanufacturing the environmental benefits, there are significant
cost benefits because remanufactured products can be half the price
of their new counterparts.
Remanufacturing has been quite popular in the production of
computers, televisions, and automobiles.
 Process selection
So far we have discussed issues involved in
product design. Though product design is
very important for a company, it cannot be
done separately from the selection of the
process.
 Types of processes
When we look different types of companies, ranging from a small
coffee shop to IBM, it may seen like there are hundreds of different
types of processes. Some are small, and some are huge.
All processes can be grouped into two broad categories;
Intermittent operations
Continuous operations
 Intermittent Operations
Intermittent Operations are used to produce many different
products with varying processing requirements in lower volumes.
Examples are an auto body shop, a tool and dye shop, or a health-
care facility. Because different products have different processing
needs, there is no standard route that all products take through the
facility.
Labour intensive rather than capital intensive
Workers need to be able perform different tasks
Only skilled workers can performed the job
 Continuous Operations
Continuous operations are used to produce one or few
standardized products in high volume. Examples are a typical
assembly line, cafeteria, or automatic car wash. Resource are
organized in a line flow to efficiently accommodate production of
the product. Note that in this environment it is possible to arrange
resource in a line because there is only one type of product. This is
directly the opposite of what we found in intermittent operations.
 Capital intensive rather than labor intensive
 These facilities rely on automation and technology
 The volume of production decided on forecasting of demand
rather than demand of customer
 Relationship between Product Design & Process Selection

Decisions of product design and process selection are directly

linked and can not be made independently of one other.
 The type of product a company produces defines the type of
operation needed.
 The type of operation needed, in turn, defines many other aspects
of the organization.
This includes how a company competes in the marketplace
(competitive priorities), the type or equipment and its arrangement
in the facility, the type of organizational structure, and future types of
product that can be produced by the facility.
 Differences in key organizational decisions for different types
of operations
Decisions Intermittent Continuous Operations
Operations
Product design Early stage of product life cycle Later stage of product life cycle

Competitive Delivery, flexibility, and quality Cost and quality

priorities

Facility layout Resources grouped by function Resources arranged in a line

Vertical Low High

integration
 Manufacturing Technology Decisions
Advancements in technology have had the greatest impact on process design
decisions. Technological advances have enabled companies to produce products
faster, with better quality, at a cheaper rate. Many processes that were not
imaginable only a few years ago have been made possible through the use of
technology.
Here we look at some of the greatest impacts technology has had on process
design:
Automation
Automated Material Handling
Computer-Aided Design
Modular Design
Computer-Aided Manufacturing
 Automation
An important decision in designing processes is deciding whether
firm should automate, to what degree, and the type of automation
that should be used.
Automation is machinery that is able to perform work without
human operators.
Automation can be a single machine or an entire factory.
 Although there are tremendous advantages to automation, there
are also disadvantages. Companies need to consider these carefully
before making the final decision.
 COMPUTER-AIDED DESIGN (CAD)
• The use of computer graphics for product design.
• Modify or create products by means of light pen, keyboard, joystick,
mouse and any similar devices.
• Design in entered in computer and plotted on screen.
• Can be rotated into many perspectives, divided to one side, view in the
inside and closer examinations.
• Increase productivity of designers.
• Creates database of information of supply. EXAMPLES:
• Engineering and cost analysis ImiCAD, 3DCAD,
AutoCad, IntelliCAD,
• Identify best selections among alternative Strata Foto 3D CX2 and
Sketch Up 8.0
designs.
 MODULAR DESIGN
• A form of standardization in which component
parts are subdivided into modules that are easily
replaced or interchanged.

Failures are easier to Simplifications in

diagnose and manufacturing and
assembly, purchasing & Less training cost.
remedy because
inventory becomes
there are fewer parts routine.
to investigate.
Ease of Repairs and
Replacements
 Computer-Aided Manufacturing (CAM)
Computer-Aided Manufacturing (CAM) refers to
the use of specialized computer programs to direct and
control manufacturing equipment. When computer-aided
design(CAD) information is translated in to instructions for
computer-aided manufacturing (CAM), the result of these
two technologies is CAD/CAM.
 Robotics
 In manufacturing robot is usually nothing more than a mechanical
arm with a power supply and a computer control mechanism that
controls the movements of the arm.
 The arm can be used for many tasks, such as painting, welding,
assembly, loading and unloading of machines.
 Robots are excellent for physically dangerous jobs such as working
with radioactive or toxic materials
 Also robots can work 24 hours a day to produce a highly consistent
products.
 Nature of service as a product

• It is an activity or a series of activities of more or less

intangible nature that normally, but not necessarily, -take
place in interaction between the customer and service
employees and/or physical resources or goods and/or
systems of the service provides, which are provided as a
solution to customer problems. (KOTLER)
• It is an act or performance that one party can offer to
another that is essentially intangible and does not result in
the ownership of anything. Its production may/may not be
tied to a physical product.
 • Performances rather than
NATURE AND
CHARACTERISTICS object
• Created and consumed
 Intangibility
simultaneously
 Inseparability • Quality and essence of
service vary from producer,
 Heterogeneity customer to customer, and
 Perishability
from day to day. The result
human interaction.
• Cannot be stored
 INTANGIBILITY
PHYSICAL INTANGIBILITY:
- Cannot be touched.
MENTAL INTANGIBILITY:
- Cannot be stored, thus, cannot be
patented legally, hence can be easily copied by
competitors
- Difficult assessing quality
 INSEPARABILITY
Inseparability of production and consumption
- Customer has to be present during service production
- Customers frequently interact with service providers, influence
them
- Service Producers play an important role as part of the product
itself, as well as essential ingredient in the service experience for
consumer
- Centralized mass production is difficult
- Customers experience depend upon the interactions
- Operations need to be decentralized so that services can be
delivered directly to consumers at convenient locations
- Involvement of customers in the production process is important
 PERISHABILITY
• Cannot be stored and then sold at a later date as
they perish.
• Thus,
- Have a short live value
- Cannot be Inventoried
- Time pressure for sale of service is
extremely high
- Capacity of services is infinite
 VARIABILITY/HETEROGENEITY
• Difficult of achieving uniform outputs (Labor intensive services)
• Performance vary among service workers
• There is
- Difficulty in achieving standardization
- Difficulty in setting quality control
- Determination of quality is possible only after performance
of service
- Difficulty in communicating to the clients what they would
get
 Designing Service

Most of the issues discussed in this chapter are

as applicable to manufacturing as they are to
service organizations. However, there are issues
unique to services that pose special challenges
for service design.
 Contd…

Most of us think we know what is needed to run a good

service organization.
After all, we encounter services almost every day, at banks,
fast-food restaurants, doctor’s offices, barber shops, grocery
stores, and even the university.
We have all experienced poor service quality and would
gladly offer advice as to how we think it could be run better.
However, there are some very important features of services
you may have not thought about. Let’s see what they are.
 How Are Services Different from Manufacturing?

1. Intangible Product :
Service organizations produce an intangible product, which cannot
be touched or seen.
It cannot be stored in inventory for later use or traded in for
another model.
The service produced is experienced by the customer.

The design of the service needs to specify exactly what the

customer is supposed to experience.
 Contd….
The experience of the customer is directly related to customer
expectations. For services to be successful the customer experience
needs to meet or even exceed these expectations. However,
customer expectations can greatly vary depending on the type of
customer and customer demographic.
This includes customer age, gender, background, and knowledge.
The expectation is made through product marketing to a particular
market segment. It is highly important in designing the service to
identify the target market the service is geared to and create the
correct expectation.
2. High Degree of Customer Contact:
Service organizations have a high degree of customer
contact.
The customer is often present while the service is being
delivered, such as at a theater, restaurant, or bank.
Also, the contact between the customer and service
provider is often the service itself, such as what you
experience at a doctor’s office.
 For a service to be successful this contact needs to be a
positive experience for the customer, and this depends
greatly on the service provider.
 The Service Package
The really successful service organizations do not
happen spontaneously. They are carefully thought out
and planned, down to every employee action. To design
a successful service we must first start with a service
concept or idea, which needs to be very
comprehensive. We have learned that when purchasing
a service, customers actually buy a service package or
bundle of goods.
 Contd….

The service package is a grouping of features that are

purchased together as part of the service. There are three
elements of the service package:
(1) The physical goods,
(2) The sensual benefits, and
(3) The psychological benefits.
 Contd…..

It is highly important that the design of the service

specifically identify every aspect of the service package.
When designing the service we should not focus only on
the tangible aspects; it is often the sensual and
psychological benefits that are the deciding factors in the
success of the service. The service package needs to be
designed to precisely meet the expectations of the target
customer group.
 Service Business And Internal Service
Service Business: Management of organization whose basic objective
is to interact with customers to render services.
Facility based: Business where customer must visit the service facility
to get service from organization
Field based: Concerned with providing service in the customer’s
location and environment
Internal service: Refers to services to other departments of the same
organization. Therefore customers of internal service are other
departments. E.g. Accounting, marketing, maintenance, research and
development…
 Designing of service
 Identification of target market
who are the customers? where is its market? What do customers want?
 Service concept
How our service fulfills customer needs? What are service types? How it is different
from others?
 Service strategy
What is service policy? What are the priorities? what are the service packages and focus
of service?
 Service delivery system
What are the actual processes? What are the systems and facilities? Who are employees
and what should be their skills and ability?
 Service Process Technology
Depends on two main factors..
 Customer contact
During designing or customizing of service. E.g. Building a new
building
During creating or consuming of service. E.g. Hair styling

 Labor vs. Capital intensiveness

 Teaching, nursing etc. are labor intensive where training and
development of employees vital for quality service
 24 hour ATM/ vendor machines are capital intensive
 Different Service Process
Technology
1. Quasi- Manufacturing Process Technology
2. Mass service process technology
3. Custom shop service technology
4. Professional service process Technology
 Quasi- Manufacturing Process Technology
Physical goods are more leading here than the services. Here the
focus is more on Production costs, Technology, RM, Product
quality, delivery etc. There is little customer contact here. E.g. Air
craft maintenance & Industrial Heat treatment services.
 Requires low customer contact and capital intensive
technology to render the service.
 Offers rigid and standardized service with reliable
delivery schedule.
 E.g. Post Office, Telebanking
 Mass service process technology
This type of technology is rigid in nature providing uniform
service to customers. It is a labor intensive technology with low
customer contact.
 Labor intensive technology.
 Rigid in nature providing standardized service to the customer.
 This technology requires training and development and
schedules of human resource for providing quality and
effective service
 e.g. Teaching, live Entertainment programs
 Custom shop service technology
This type of technology requires highly professional staffs
and capital intensive technologies for providing service to
customer. They are flexible but may require high capital
investment for it.
 Provides customized service.
 Highly professional staffs and capital intensive technology
for providing service.
 Flexible but require high capital investment
 E.g. Hospitals, Chartered travel services
 Professional service process Technology
This type of technology requires professional staffs that provides
customized service to customer through intensive interaction
between them.
 Professional staffs provide customized service to customer
through intensive interaction.
 Professionals are governed by professional ethics, norms,
organizational rules
 Professional skills are highly flexible relating to customer need.
 E.g. Legal counseling, medical diagnosis.
 Service Process Technology

Low customer contact High customer contact

Quasi manufacturing technology Custom shop technology

intensive
Capital

 Postal service  Charter travel service

 Check processing  Long distance telephone service
 Automated warehousing  Medical treatment
intensive

Mass service technology Professional service

Labor

 Teaching  Legal counseling

 Live entertainment  Medical diagnosis
 Cafeteria  Tutoring

Rigid process technology Flexible process technology

 Emerging Issues in Product Design
Some emerging issues in product design include:
1. Sustainability and environmental impact: There is growing emphasis on designing products with a focus on
sustainability, recyclability, and minimizing environmental harm throughout the product lifecycle.
2. Accessibility and inclusive design: Designing products that are accessible and usable by individuals with diverse abilities,
disabilities, and needs is becoming increasingly important.
3. Personalization and customization: Consumers are demanding more personalized and customizable products that cater
to their individual preferences and needs.
4. Integrating emerging technologies: Incorporating technologies like augmented reality, Internet of Things, and artificial
intelligence into product design to enhance functionality and user experience.
5. Ethical and privacy considerations: Addressing ethical concerns around data privacy, algorithmic bias, and responsible use
of technology in product design.
6. User-centered design: Placing a stronger emphasis on understanding user needs, behaviors, and pain points to inform the
entire design process.
7. Interdisciplinary collaboration: The need for product designers to work closely with experts from fields like engineering,
marketing, and psychology to create well-rounded solutions.
Thank You