Product,

Process &
Service Design
Product Development Process

• An important aspect of OM
• Organization equipped with a good product development process will be:
In a better position to bring new products and services vs competitors
Retain more market share by retaining more customers
Repeat performances in the future

PDP provides a broad set of tools, techniques and concepts that enable an organization to provide
distinctiveness in its offerings by rolling out new products and services faster and at a lower cost.
Expected Outcomes of Sound PDP
Dimensions Potential Benefits

Customer Dimension Unique features and benefits to the customer

Exceed customer expectations/ Innovative Offerings

Sustained Performance Simplifies Product use and maintenance

Addresses sustainability, Reduced cost of usage

Operational Advantage Simplified manufacturing/ delivery process

Minimized revisions

Strategic Advantage Faster new product development

Provides capabilities of mass customization

The Stage-Gate Approach:
Representation of PDP

•Stages: Immediate time points

between two gates

•Gates: Definite milestones in a new

product development project, every
gate results in a continue or abandon
output
Tools for Efficient Product Development

• Market Research
• Competitor Analysis
• Quality Function Deployment
• Value Engineering : identify value vs cost
• DFM: Design for manufacturability
(approach to ensure that manufacturing requirements and preferences are considered
fairly early in the design process)
• Mass Customization
Kano’s Model

• During assessing the voice of

customers , it might be possible
that some of the root wants of
customers get missed out

• X axis: Performance of product

• Y axis: Customer satisfaction
Mass Customization

• Variety Reduction
• Promote Modular design
• Product Platform Concept:
Degree of commonality & Degree of distinctiveness
Process Planning vs Process design
Process Planning :

• Choices we make with respect to the flow of parts in a

manufacturing system

• Decisions like types of machines to use, number of machines of

each type, their relative placement

Designing of manufacturing processes:

• How the manufacturing resources are organized

• So that the flow patterns are optimized and effective control

can be implemented.

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 Determinants of Process Characteristics

• Volume: Average quantity of products produced

• Variety: No. of alternative products and variants of each product
• Flow: Material undergoes a conversion process

Understanding the dynamics of volume, variety and flow is important in analysing process characteristics
Relationship b/w Volume and Variety
Product-Process Matrix
Types of Processes & Operations Systems

• Continuous flow is characterized

by streamlined flow of products in
the system

• Manner in which the resources are

arranged for mass production is
referred to as a flow shop

Jumbled Flow Systems: Project Organizations

Analysing Processes

• Process Flowcharting
A Step in process
Value Added : VA
Non-value Added: NVA
Transportation Necessary but non-value added Activities: NNVA
(movement)

Storage/ Inventory
Analysing Processes

• Throughput Time
• Cycle Time
• Bottleneck