Nigel Slack Chapter 5 The Design of Products and Services

5.
Chapter 5
The design of products

and services
Pearson Education Ltd. MindStudio
Slack, Chambers and Johnston, Operations Management, 6th Edition,

5.1
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Process design
5.2
Operations
strategy
Process design Operations

Supply network design Design management Improvement
Layout
Planning and
and flow
control
Process People, jobs

technology and
organization
Product/service
design

5.2
Key operations questions
5.3
In Chapter 5 – The design of products and services –

Slack et al. identify the following key questions:
•Why is good product and service design important?

•What are the stages in product and service
design?
•Why should product and service design and
process design be considered interactively?

5.3
Nature and purpose of the design activity
5.4
Products, services and the processes which produce

them all have to be designed.
Decisions taken during the design of a product or

service will have an impact on the decisions taken
during the design of the process which produces those
products or services and vice versa.

5.4
Example – The troubled history of the Airbus A380
5.5
•What were the causes of the delays in the ‘time

to market’ of the Airbus A380?
•What were the effects of the delays in the ‘time to
market’?

5.5
5.6 The design of products/services and processes are interrelated
and should be treated together
•Products and services should be designed in

such a way that they can be created effectively.
•Product/service design has an impact on the
process design and vice versa.
•Processes should be designed so they can
create all products and services which the
operation is likely to introduce.

5.6
The overlap of activities is greater in service design
5.7
•In manufacturing operations, overlapping the

activities of product and process design is
beneficial.
•In most service operations the overlap
between service and process design is
implicit in the
nature of service.

5.7
Why is design so important?
5.8
UK Design Council Survey
Design helps businesses connect strongly with their customers.

90% of businesses growing rapidly say design is significant to
them, only 26% of static companies say the same.
Design reduces costs by making processes more efficient. It can
also reduce the time to market for new products and services.
Almost 70 % of companies seeing design as integral have
developed new products and services in the last three years,
compared to only a third of businesses overall.
Companies who were ‘effective users of design’ had financial

performances 200% better than average.

5.8
What is designed in a product or service?
5.9
A concept the understanding of the nature, use and

value of the service or product;
the group of ‘component’ products and

A package services that provide those benefits defined
in the concept;
the way in which the component products

A process and services will be created and delivered.

5.9
Example – Spangler, Hoover and Dyson
5.10
•What was Spangler’s mistake?
•What do you think makes ‘good

design’ in markets such as domestic
appliances?
•Why do you think two major

vacuum cleaner manufacturers
rejected Dyson’s ideas?
•How did design make Dyson a

success?

5.10
5.11 The product and service design activity is a process
in itself
Transformed resources,
e.g.
•Technical The product/service design
information process whose performance
• Market information is measured by its Fully
• Time information
• Quality specified
Inputs
• Outputs products
Speed
• and
Dependability
• services
Transforming resources, Flexibility and
e.g. • Cost
•Test and design
equipment
• Design and
technical staff
5.11
The stages of product / service design
5.12
Evaluation and Prototyping

Concept Concept Preliminary
improvement and final
generation screening design
design

5.12
Concept generation
5.13
Ideas from customers formally through Marketing

activities
Listening to customers – on a day-to-day basis
Ideas from competitor activity – For example, reverse

engineering
Ideas from staff – Especially those who meet

customers every day
Ideas from research and development.

5.13
Example – The Blow-Dry Bar
5.14
•From a market perspective, why was the blow-dry

bar successful?
•From an operations perspective, why is the blow- dry
bar successful?
5.14
Concept screening
5.15
Broad categories of evaluation criteria for assessing concepts
Feasibility – What investment

How difficult is both managerial and
financial, will be
it? needed?
The What return Overall

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

5.15
5.16 Design involves progressively reducing the number of
possibilities until the final design is reached
Large number of
design options
CONCEPT
Choice and
evaluation
‘Screens’
Uncertainty
regarding the
final design
TIME
Certainty
regarding the
One design final design
FINAL DESIGN
SPECIFICATON

5.16
Example – Square watermelons
5.17
•What market-related questions would you ask before

producing square watermelons commercially?
•What finance-related questions would you ask before

•What operations-related questions would you ask before


5.17
Preliminary design
5.18
The component structure for remote mouse
LEVEL 0 Remote mouse
Upper Lower Control Packing

LEVEL 1 unit
casing casing
Moulding Logo Mould- Battery Button Spring Outer Leaflet

LEVEL 2 base
ing housing
LEVEL 3 Lead Plug Speaker Cover

5.18
Design evaluation and improvement
5.19
There are various ways of evaluating preliminary

designs.
These include:
– quality function deployment;

– value engineering;
– Taguchi methods.

5.19
Prototyping and final design
5.20
Prototypes are needed, so products and services can be

tested.
Prototypes come in various forms:
– card models;
– clay models;
– computer simulations.
CAD has considerably simplified the production of

prototypes.

5.20
5.21 A delay in the ‘Time to Market’ disproportionally delays the
financial break-even point
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 break-even

5.21
5.22 Sequential and simultaneous arrangement of the stages in the
design activity
First stage in the Sequential arrangement

design activity of stages
Second stage in the
design activity
First stage in the Third stage in the

design activity design activity
Second stage in the etc.

design activity
Third stage in the

design activity Communication between
stages
Simultaneous arrangement
of stages etc.

5.22
Where should the management attention be?
5.23
KNOWLEDGE CONCEPT BASIC INITIAL PILOT MANUFACTURING

LAUNCH
AQUISITION INVESTIGATION DESIGN TESTS PRODUCTION RAMP-UP
Ability to
influence the
final design
Management
activity profile
TIME
5.23
5.24
Sorting out problems early saves greater disruption later
Slow time to market

Low
and changes in design
over design decisions
Degree of agreement
Fast time to
market
High
Early stages of the Later stages of the
total design activity total design activity

5.24
Organization structures for the design activity
5.25
F.M. F.M. F.M. F.M.
P.M.
F.M. F.M. F.M. F.M.
P.M. F.M. F.M. F.M. F.M.
P.M. P.M.
P.M.
P.M.
PURE FUNCTIONAL
ORGANIZATION
INCREASING PROJECT
ORIENTATION F.M. F.M. F.M. F.M.
PURE PROJECT P.M.
ORGANIZATION P.M.
P.M.
P.M.
F.M. F.M. F.M. F.M.
P.M.
P.M.
P.M. F.M. = Functional manager
P.M.
P.M.
P.M. = Project manager

5.25

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5.

The design of products

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Process design Operations

Process People, jobs

Slack, Chambers and Johnston, Operations Management, 6th Edition,

In Chapter 5 – The design of products and services –

•Why is good product and service design important?

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Products, services and the processes which produce

Decisions taken during the design of a product or

Slack, Chambers and Johnston, Operations Management, 6th Edition,

•What were the causes of the delays in the ‘time

Slack, Chambers and Johnston, Operations Management, 6th Edition,

•Products and services should be designed in

Slack, Chambers and Johnston, Operations Management, 6th Edition,

•In manufacturing operations, overlapping the

Slack, Chambers and Johnston, Operations Management, 6th Edition,

UK Design Council Survey

Design helps businesses connect strongly with their customers.

Companies who were ‘effective users of design’ had financial

Slack, Chambers and Johnston, Operations Management, 6th Edition,

A concept the understanding of the nature, use and

the group of ‘component’ products and

the way in which the component products

Slack, Chambers and Johnston, Operations Management, 6th Edition,

•What was Spangler’s mistake?

•What do you think makes ‘good

•Why do you think two major

•How did design make Dyson a

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Evaluation and Prototyping

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Ideas from customers formally through Marketing

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

Ideas from competitor activity – For example, reverse

Ideas from staff – Especially those who meet

Slack, Chambers and Johnston, Operations Management, 6th Edition,

•From a market perspective, why was the blow-dry

Broad categories of evaluation criteria for assessing concepts

Feasibility – What investment

The What return Overall

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Slack, Chambers and Johnston, Operations Management, 6th Edition,

•What market-related questions would you ask before

•What finance-related questions would you ask before

•What operations-related questions would you ask before

Slack, Chambers and Johnston, Operations Management, 6th Edition,

The component structure for remote mouse

LEVEL 0 Remote mouse

Upper Lower Control Packing

Moulding Logo Mould- Battery Button Spring Outer Leaflet

LEVEL 3 Lead Plug Speaker Cover

Slack, Chambers and Johnston, Operations Management, 6th Edition,

There are various ways of evaluating preliminary

– quality function deployment;

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Prototypes are needed, so products and services can be

CAD has considerably simplified the production of

Slack, Chambers and Johnston, Operations Management, 6th Edition,

Cash Sales revenue

Delayed sales revenue

Delayed cash flow