Unit II

Product and
Service Design
 Phases in Product Development
Process
1. Idea generation- Supply chain, competitor
(reverse engineering), research
2. Feasibility analysis-cost, productivity, quality
3. Product specifications
4. Process specifications
5. Prototype development
6. Design review
7. Market test
8. Product introduction
9. Follow-up evaluation
 Product design

• Design for manufacturing (DFM)

• Design for assembly (DFA)
• Design for recycling (DFR)
• Design for Disassembly (DFD)
• Remanufacturing
• Concurrent Engg.
• Robust design
• Computer-Aided Design (CAD)
 Reasons for Product or Service Design
• Economic
• Social and demographic
• Political, liability, or legal
• Competitive
• Cost or availability
• Technological
• Appearance
• Ease of production/assembly
• Ease of maintenance/service
 Other Issues in Product and Service Design
• Product/service life cycles
Saturation
• Standardization Maturity

Demand
Decline
• Mass customization Growth

-Delayed differentiation Introduction

• Product/service reliability Time

• Robust design-function over a broad range of

conditions. Insensitive to environmental factors
either in manufacturing or in use.
• Degree of newness
• Cultural differences
 Phases in Service Design

1.Conceptualize
2.Identify service package components
3.Determine performance specifications
4.Translate performance specifications into
design specifications
5.Translate design specifications into delivery
specifications- Service blueprinting
6.Establish procedures to handle exceptions
7.Establish systems to monitor service
 Major Steps in Service Blueprinting

1. Establish boundaries
2. Identify sequence of customer interactions
• Prepare a flowchart
3. Develop time estimates
4. Identify potential failure points
 Characteristics of Well Designed
Service Systems
1. Consistent with the organization mission
2. User friendly
3. Robust
4. Easy to sustain
5. Cost effective
6. Value to customers
7. Effective linkages between back operations
8. Single unifying theme
9. Ensure reliability and high quality
 Challenges of Service Design

1. Variable requirements
2. Difficult to describe
3. High customer contact
4. Service – customer encounter
Process design
 Process design

Process design
Operations
Supply network design strategy

Layout Operations
and flow management
Design Improvement

Process Job
technology design Planning and
control
Product/service
design
Differences between Intermittent and
Continuous Operations

Decision Intermittent Continuous

Product Variety Large Small
Degree of Standardization Low High
Path through Facility Varied pattern Line Flow
Critical Resource Labor Equipment
Importance of Work Skills High Low
Type of Equipment General Purpose Specialized
Degree of Automation Low High
Throughput Time Longer Shorter
Work-in-Process Inventory More Less
 Project processes

One-off, complex, large-scale ‘products’ with

high work content

Specially made, every one ‘customized’

Defined start and finish: time, quality and cost

objectives

Many different skills have to be coordinated

e.g. construction, shipbuilding etc.
 Jobbing processes

Very small quantities: ‘one-offs’, or only a few

required

Specially made: high variety, low repetition,

‘strangers’, every one ‘customized’

Skill requirements are usually very broad

Skilled jobber, or team, completes whole

product
e.g. Machine tool
 Batch processes

Higher volumes and lower variety than for

jobbing

Standard products, repeating demand. But can

make specials

Specialized, narrower skills

Set-ups (changeovers) at each stage of

production
e.g. bakery items
 Mass (line) processes

Higher volumes than batch

Standard, repeat products (‘runners’)

Low and/or narrow skills

No set-ups, or almost instantaneous ones

e.g. Automobile
 Continuous processes

Extremely high volumes and low variety:

often single product

Standard, repeat products (‘runners’)

Highly capital-intensive and automated

Few changeovers required

Difficult and expensive to start and stop the

process
e.g. Paint, Chemicals
 Process types
Process Process
tasks flow

High
Diverse/
Intermittent
complex

Variety
Low

Repeated/ Continuous
divided
Low Volume High
Continuum of Process Types
 Flow (layout), technology and job design are all influenced
by process positioning

Volume
Flow Technology Jobs
Variety

Unorganized Little / Varied / high None

Custom
general discretion
furniture
maker
Machine
tool maker

Automobile
factory
Petro-
chemical
Routine / low
Predictable Specialist None refinery
discretion

Manufacturing
 Flow (layout), technology and job design are all influenced
by process positioning
Volume
Flow Technology Jobs
Variety

Unorganized Little / Varied / high None

general discretion Investment
banking
Customer
service
branch

Bank call
centre

Credit card
Routine / low processing
Predictable Specialist None
discretion

Services
Deviating from the ‘natural’ diagonal on the product–process matrix
has consequences for cost and flexibility

Manufacturing Volume Service operations

operations process process types
types Variety

Project None
Professional
More process service
flexibility
Jobbing than is needed
so high cost

Less process Service

Batch flexibility than shop
is needed so
high cost
Mass
Mass
service
Continuous None

The ‘natural’ line of fit of process to

volume/variety characteristics
• Professional service –
Consultants planning how best to help their
client
• Service shop – This health club offers some
variety
within a standard set of facilities and processes
• Mass service – This call centre can handle
a very high volume of customer enquiries
because it standardizes its process
 Process Selection
• Process selection is based :
– Type of process; range from intermittent to continuous
– Degree of vertical integration
– Flexibility of resources
– Mix between capital & human resources
– Degree of customer contact
– Lead time
Product Strategies and Process Choice
Process Selection Facility Layout
 Process Analysis
• (a) assembly charts- materials, subassemblies,
operations, inspections etc.
• (b) Process charts-
-Operation process charts
-Flow process charts
-Man-machine chart

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