(Edibles for Diabetic patients)

Operations Management Decisions and

Product Design

Zero Sugar Juices and Diet Ice-creams

(Edibles for Diabetic patients)

Deliverable 2

Overview:
In the deliverable 2, we will describe the product design procedure of the Zero Sugar Juices and
Diet Ice Cream after evaluating the main operation management concepts at different levels and
the different procedures of the operations management that are used in the manufacturing of the
Zero Sugar Juices and Diet Ice Cream. Operations management is elaborated as the process and
procedures involved in attaining the high efficiency and effectiveness in the business. For new
products like Zero Sugar Juices and Diet Ice Cream, it is based on different decisions, tactics and
the processes for designing and manufacturing a product. Product design is a term that is
associated with the procedure of a deep specification of the components of the goods, its
potential capability, and product designing and potential performance in the market. In this
deliverable 2 we will discuss the various processes involved in the product designing of the Zero
Sugar Juices and Diet Ice Cream along with their alignment with the operational concepts and
different levels of the operational management that are involved in the product design
development.

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Product Design Development of Zero Sugar Juices and Diet Ice
Cream:

There are total eight processes are involved in the product design development of the Zero Sugar
Juices and Diet Ice Cream at different levels of the operations management and they are divided
and categorize under different levels as follow:

Strategic level processes:

 Research.
 Product Concept.

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 Product Design.

Tactical level processes:

 Design Development.
 Design Documentation.
 Testing phase.
 Prototype Development.

Operational Level Processes:

 Manufacturing: Decisions regarding machines and workers.

Strategic level Processes:

At strategic level, the top management of the company is directly involved in the product design
development. Strategic level decisions are associated with the long term decisional phases that
will be difficult to change and that are why the top management personally handle it. In the
product design of the Zero Sugar Juices and the Diet Ice Creams there are three major processes
of the product design development are involved that are described as follow:

 Research: This is the initial step of the product design development of the Zero Sugar
Juices and the Diet Ice Creams that is started with the research in which an expert team
evaluate the current trends of the market and the demand for our products. Our
management inspect that the diet products are the top priority of the health conscious
people and there is a very high demand for such products. People often demand the diet
products that are free of chemical and preserve the natural taste of the foods but also free
of sugar so we will provide this opportunity to the diet conscious people of the Kuwait.
 Product concept: This is the second phase of the product design at strategic level and in
the top management take decision regarding the product’s flavors and taste and it will
also decide the target clients of the Zero Sugar Juices and the Diet Ice Creams and also
take decisions regarding the useful aspects of the diet products of the company such as
the health caring products and sugar free products.

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 Product Design Development: After the detailed analysis of the research information,
the management of the company analyzes the cost structure, authenticity and the
functions of the Zero Sugar Juices and the Diet Ice Creams. The company decided the
low cost for attaining leadership in the market. The function of the products decided as
products that will take care of the diet issues of the people of Kuwait and provide zero
sugar and low calorie juices and ice creams for the people. The goods are highly
authentic as they are free from all types of the chemicals and natural artificial sweeteners
are added that are evaluated by the expert doctors and diet control experts. The cost of the
products will be low and the company is aiming at attaining cost leadership in the market.

Tactical Level Processes:

Tactical level is associated with the intermediate kind of the decisions and it is mostly linked
with the cost of the components, labor involved in production and other costs of the Zero Sugar
Juices and the Diet ice creams.

Design Development: In this phase of the tactical level after the decisions about the cost and
material components of the Zero Sugar Juices and the Diet ice creams, the development of the
diet products will start as all the information regarding the diet products that are company is
going to start is favorable. It includes the information regarding the material and the labor
involved in the production of the Zero Sugar Juices and the Diet ice creams. It will also include
the data of the material and factors that has to be printed on the packages of the Zero Sugar
Juices and the Diet ice creams like the production and expiry date, material of the diet products,
useful features etc.

This table will elaborate the total number of workers and workers for ice cream and the juices.

Types Numbers
Number of workers total 450
Workers for Zero Sugar Juices 200
Workers for Diet Ice Creams 150
Receptionists and Clients dealing workers 50
Management Required (50), Finance manager, marketing manager,
operations manager, cooking experts.

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The cost components of the Zero Sugar Juices and the Diet ice creams will be elaborated in this
table and the per unit cost of each component will be described in this table that is the second
most crucial decision of the product design at tactical level.

Material Type Cost per unit (Ice cream) Cost per unit(Juices)
Fruits for flavor 8 KD 10 KD

Artificial sweetener 5 KD 5 KD
Milk 7 KD 2.5 KD
Powder milk 3 KD 2.5 KD
Pasteurized milk 3 KD 2 KD
Cream 4 KD 3 KD
Vanilla essence 1.5 KD 1.5 KD
Nuts 1 KD 0.5 KD
Chocolate chips 1 KD -
Other types of cost 1.5 KD 2 KD
Total cost 35 KD 30 KD

The information on the cost and the labor types are the main decisions of the products design at
the tactical level and it is the main responsibility of the human resource management and the
operations managers and product design of the Zero Sugar Juices and Diet Ice Cream will be
finalized.

Design Documentation: In this step the final design of the diet products of the Zero Sugar
Juices and Diet Ice Cream will be documented as all the information like the cost, material and
other types of the feasibility information. The design of Zero Sugar Juices and Diet Ice Cream
will be documented in this step that will be supported by the legal documentation.

Product Testing: Product testing phase is the third main step of the tactical level in which two
famous techniques are used for the testing of the product design of the Zero Sugar Juices and
Diet Ice Cream. It includes:

CAD and CAM: CAD stands for the computer aided design and CAM stands for the computer
aided manufacturing. CAD will be utilized to get the 3D design of the Zero Sugar Juices and
Diet Ice Cream that will make us to see how our product will look before we get the first
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prototype of the diet products. CAM will make us to see that our diet products are free from the
weaknesses and the stresses and is best with the high potential of the earnings and the revenues.

Prototype Testing: After the technological testing of the Zero Sugar Juices and Diet Ice Cream,
we focus on conducting prototype of our diet products so that to evaluate the performance of the
diet products. The prototype testing will answer the following questions as it favorable for the
diet patients? Is it cost effective? Is it will gain maximum share for the market? These questions
will be favorable for evaluating the real performance of the Zero Sugar Juices and Diet Ice
Cream.

Operational Level Processes:

After the strategic and the tactical level processes then the operational level processes of the
product design of the Zero Sugar Juices and Diet Ice Cream will be initiated. This step is mainly
associated with the decision regarding the use of the machines and the workers at the work. We
will decide that manufacturing work will be done by the machines while the serving will be done
by the workers. Product manufacturing, sequence of manufacturing steps and planning and
control procedures will be finalized in this step. In this step the company take decision on the full
manufacturing and the production of the Zero Sugar Juices and Diet Ice Cream after the detailed
analysis and testing of the product design and all the elements show the favorable and positive
attitude that favor the production of the Zero Sugar Juices and Diet Ice Cream.

Production: After the successful prototype testing, production phase will be started. Some
elements such as the cost, material type, batch number etc are considered. Production of the Zero
Sugar Juices and Diet Ice Cream will make possible the analysis of the real diet products and this
is the final step of the product design of the Zero Sugar Juices and Diet Ice Cream.

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