Opera&ons

 and  Supply  Chain  Management  

Product  and  Service  Design  

Dr.  Manish  Shukla    

Durham  University  Business  School  
manish.shukla@durham.ac.uk  

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 Learning  Objec&ves  Opera&ons  and  Supply  Chain  Management  

•  Understand  the  importance  of  good  service  

and  product  design  
 
•  Discuss  the  stages  in  service  and  product  
design  
 
•  Iden&fy  the  benefits  of  interac&ve  design  

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 Why  is  design  so  Opera&ons  
important?   Management  
and  Supply  Chain  

UK  Design  Council  Survey…  

•  Design  helps  businesses  connect  strongly  with  their  
customers.  
 
•  90  per  cent  of  businesses  growing  rapidly  say  design  is  
significant  

•  Design  reduces  costs  by  making  processes  more  efficient.    

•  It  reduces  the  &me  to  market  for  new  products  and  

services.  
   
•  Companies  who  were  ‘effec&ve  users  of  design’  had  
financial  performances  200  per  cent  beRer  than  average.  
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 Opera&ons  and  Supply  Chain  Management  
What  is  designed  in  a  product  or  service?  

A  concept   the  understanding  of  the  nature,  use  and  value  of  
the  service  or  product.  

the  group  of  ‘component’  products  and  services  

A  package   that  provide  those  benefits  defined  in  the  
concept.  

the  way  in  which  the  component  products  and  

A  process   services  will  be  created  and  delivered.  

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 The  product  and  service   design  
Opera&ons   aCc&vity  
and  Supply   hain  Management  

as  a  process  

Transformed  resources  
•  technical  informa&on  
The  product/service  design  
•  market  informa&on   process  whose  performance  
is  measured  by    the  
•  Quality   Product/  Service  
•  Concept  
Inputs   •  Speed   Outputs   •  Package  
•  Dependability   •  Process  
Transforming  resources   •  Flexibility  and  
•  test  and  design  equipment  
•  design  and  technical  staff   •  Cost  
•  lead  user  (customer)  feedback  
•  supplier  advice  
•  collaborators   of  how  designs  are  created.  

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 The  Stages  of  Design-­‐   FSrom  
Opera&ons  and   upply  Chain  Management  

Concept  to  Specifica&on  

Evalua&on  and   Prototyping  

Concept   Concept   Preliminary  
improvement   and  final  
genera&on   screening   design  
design  
 Concept  Genera&on   Opera&ons  and  Supply  Chain  Management  

•  Ideas  from  customers  formally  through  marke&ng  

ac&vi&es  

•  Listening  to  customers  –  on  a  day-­‐to-­‐day  basis  

   
•  Ideas  from  compe&tor  ac&vity  –  for  example,  reverse  
engineering  

•  Ideas  from  staff  –  especially  those  who  meet  

customers  every  day  

•  Ideas  from  research  and  development  

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 Concept  Screening   Opera&ons  and  Supply  Chain  Management  

Feasibility  –  How   What  investment  both  

difficult  is  it?   managerial  and  
financial  will  be  
needed?  

The  criteria   What  return     Overall

for   Acceptability  –   in  terms  of  benefits  to   evaluation
screening   How  worthwhile  is   the  opera&on  will  it   of the
concepts   give?  
it?   concept
Vulnerability  –  
What  risks  
What  could  go    do  we  run  if  things  go  
wrong?   wrong?  

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 The  Design  Funnel     Opera&ons  and  Supply  Chain  Management  

Large  number  of  design  

op&ons  
CONCEPT  
Choice  and  
evalua&on  
‘Screens’  
Uncertainty  
regarding  the  final  
design  

TIME  
Certainty  
regarding  the  
One  design   final  design  

FINAL DESIGN
SPECIFICATON
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 Preliminary  Design   Opera&ons  and  Supply  Chain  Management  

LEVEL  0   Remote  mouse  

Upper   Lower   Control   Packing  

LEVEL  1   unit  
casing   casing  

Moulding   Logo   Mould-­‐ BaRery   BuRon   Spring   Outer   Leaflet  

LEVEL  2   base  
ing   housing  

LEVEL  3   Lead   Plug   Speaker   Cover  

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 Reducing  Design  Complexity  
Opera&ons  and  Supply  Chain  Management  

•  Standardiza&on  

•  Commonality  

•  Modulariza&on  

•  Mass  customiza&on  

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 Design  Evalua&ons  and  Improvement  
Opera&ons  and  Supply  Chain  Management  

•  Quality  Func&on  Deployment  

•  Value  Engineering  

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 Prototyping  and  Final  Design  
Opera&ons  and  Supply  Chain  Management  

•  Pilot  Basis  

•  Computer  Simula&ons  

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 Delay  in  the  &me  to  market     Opera&ons  and  Supply  Chain  Management  

Cash   Sales  revenue  

Cash  flow  

Delayed  sales  revenue  

Delayed  cash  flow  

Development  costs   Time  

Development  costs  of  
delayed  project  

Delay  in   Delay  in  

Time  to   financial  
Market   breakeven  

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 Design  Ac&vity  Stages:   Sequen&al  
Opera&ons   and  Supply  Chain  V s  
Management  

Simultaneous  
First  stage  in  the   (a)  Sequen&al  
design  acCvity   arrangement  of    stages  
Second  stage  in  the  
design  acCvity  

First  stage  in  the   Third  stage  in  the  

design  acCvity   design  acCvity  

Second  stage  in  the   etc.  

design  acCvity  

Third  stage  in  the  design  

acCvity   CommunicaCon  between  stages  

(b)  Simultaneous  
arrangement  of  stages   etc.  
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 Summary   Opera&ons  and  Supply  Chain  Management  

•  Good  design  results  in  good  business  as  it  

translates  customers  needs  into  products/  
services  

•  All  products  and  services  have  three  aspects:  

Concept,  Package,  and  Process  

•  There  are  five  key  stages  in  product  

development  
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 Opera&ons  and  Supply  Chain  Management  

Ques&ons?  

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 Opera&ons  and  Supply  Chain  Management  
References  
OperaCons  Management  7th  edi&on  by  Nigel  
Slack,  Alistair  Brandon-­‐Jones  and  Robert  
Johnston  
 
 
 

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 Addi&onal  References  Opera&ons  and  Supply  Chain  Management  

•  Six  Myths  of  Product  Development,  Harvard  

Business  Review,  2012  

•  Upper  management  control  of  new  product  

development  projects  and  project  performance,  
The  Journal  of  Product  Innova&on  Management,  
2002,  Pages  233–245  

•  The  New  product  development  map,  Harvard  

Business  Review,  1989  
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