Objective of service design

• 1: Productivity
• 2: Cost
• 3: Quality
• 4: Reliability
• 5: Timing
 Characteristics of product design
1): function or performance: the function and performance is what the
customer expects the product to do to solve his problem or offer certain
benefits leading to satisfaction.
2): Appearance :this include the style ,color ,look ,feel etc . Which
appeals to the human sense and also adds value to the product.
3): Reliability : this refers to the length of time a product can used
before it fails.
4): maintainability: refers to the restoration of product once it has failed.
High degree of maintainability is desired so that the product will can be
restored (repaired) to be used within a short time after it breaks down.
5): Availability: this refer to the continuity of service to the customer. A
product is available for use when it is an operational state. Availability is
the combination of reliability and maintainability.
 Characteristics of product design
6): produciblity : this refer to the ease of manufacture with minimum
cost (economic production).
7): standardization: this refer to the design activity that reduce variety
among a group of products or parts.
8): specification; a specification is a detailed description of a material , part
or product including physical measures such as dimension , volums,weight,
surface, finish etc.
9): safety: the product must be safe to the user and should not cause any
accident while using or should not cause any health hazard to the user.
 Importance of the product
design
• Product design is crucial for success in the global competition
• It directly affects product quality, production costs and customer satisfaction
• An appropriate design provides competitive advantage to the manufacturer
• It helps in bringing new ideas in the market
• It is a result Of business Strategy
• New products provide growth opportunities and competitive advantage for
firms
• It has Close relationship with marketing, finance & other functions
• It can be integrated with decisions regarding process, quality, capacity, and
inventory
 Steps of New Product Development
• New product development (NPD) is the complete
process of bringing a new product to market.
Developing a new product involves a number of
stages which typically center around the following
key areas:
Idea generation
• Every product has to start with an idea. In some cases, this
might be fairly simple, basing the new product on
something similar that already exists. In other cases, it
may be something revolutionary and unique, which may
mean the idea generation part of the process is much
more involved.
• In fact, many of the leading manufacturers will have
whole departments that focus solely on the task of coming
up with ‘the next big thing’.
Research/Idea screening:

Most companies have a "Idea Committee." This committee

studies all the ideas very carefully. They select the good ideas
and reject the bad ideas.

An organization may have plenty of ideas for a new product,

but once it has selected the best of them, the next step is to
start researching the market.

This enables them to see if there’s likely to be a demand for

this type of product, and also what specific features need to
be developed in order to best meet the needs of this potential
market.
Development & Prototype Design

• In this stage the production and operation department advance with

the design and develop the engineering
• Several engineering activities are carried out to analyse experiment
and collect data for product development.
• Prototypes may be modified through various design and
manufacturing stages in order to come up with a finished product that
consumers will want to buy.
Testing
• Before most products are launched the manufacturer spends a large
amount of money on production and promotion, most companies will
test their new product with a small group of actual consumers. This
helps to make sure that they have a viable product that will be
profitable, and that there are no changes that need to be made before
it’s launched.
• Analysis: Looking at the feedback from consumer testing enables
the manufacturer to make any necessary changes to the product,
and also decide how they are going to launch it in the market. With
information from real consumers, they will be able to make a
number of strategic decisions that will be crucial to the product’s
success, including what price to sell at and how the product will be
marketed.

• Introduction: Finally, when a product has made it all the way

through the new product development stage, the only thing left to
do is introduce it to the market. Once this is done, good product
life cycle management will ensure the manufacturer makes the
most of all their effort and investment.
 Product design techniques
• Standardization
• Simplification
• Specialization
• Diversification
 The factors affecting product design are
• Requirements of targeted customers.
• Availability and access to necessary production facilities.
• Type and quality of raw-materials used to produce a product.
• Cost to price ratio.
• Policy of quality standards.
• Availability of plant and machineries.
• Impact of upcoming product on existing products of the
company.
• Reputation or goodwill of the company.
 Process Selection
• It is a strategic decision for organizations , It determines
– the quality and quantity of employees
– The amount of capital required for the production
• These decisions are generally capital intensive and cannot
be changed easily. Hence process selection is a long term
decision.
• Therefore the attempt should be made to select a process
which has acceptable levels of flexibility and cost
Process can be classified in two main categories
– Type of customer order
– Production Flow
There are two types of customer orders
Made to Stock (MTS): The MTS process has a standard product line specified by the
producer, not by customer
• The products are carried in inventory to fulfill customer demand
• When the customer orders a product, it is delivered if product is available in
the inventory,
• If it is not available, a back order is generated
Made to order (MTO): In MTO, the cycle of production and order fulfillment begins
with the customer order
• After receiving the order, the design must be completed
• The performance measures of an MTO are: time taken to complete the order
(Lead Time) and percentage of orders completed on time
Intermittent Production System
Production is performed on a start-and-stop basis, such as for the
manufacture of made-to-order products.
Done to produce small volume and high diversity products.
 CONTINUOUS PRODUCTION
• Continuous means something that operates constantly without
any irregularities or frequent halts.

• In the continuous production system, goods are produced

constantly as per demand forecast. Goods are produced on a large
scale for stocking and selling. They are not produced on
customer's orders. Here, the inputs and outputs are standardized
along with the production process and sequence.

• Eg: The production system of a food industry is purely based on

the demand forecast. Here, a large-scale production of food
takes place. It is a continuous production.
 The characteristics of a continuous production system are as
follows:

• The flow of production is continuous. It is not intermittent.

• The products are standardized.
• The products are produced on predetermined quality standards.
• The products are produced in anticipation of demand.
• Standardized routing sheets and schedules are prepared.

The types of continuous production system include:

• Mass production flows, and
• Process production flows.
 Product life cycle

• Everything in the world have its own life cycle.

• The stages of the life cycle of the product is a factor in product
design.
• The Product Life Cycle is concerned with the pattern of demand
of product from its introduction on market to the point where
the product has very less or no demand.
• The Product Life Cycle (PLC) is used to map the lifespan of a
product. There are generally four stages in the life of a product.
These four stages are the Introduction stage, the Growth stage,
the Maturity stage and the Decline stage.
 The four stages of PLC
1: Introduction stage: This is the stage in which
the product is initially promoted. It is a trial
stage of the product so the success of new
product depends on how the introduction stage
react?
In this stage the product development and
design are of considerable importance.
Examples:
3G Mobiles
2: The Growth stage is
• Were your product starts to grow. In this stage a very
large amount of money is spent on advertising.
• Sales revenue is large in amount, profit is increasing.
• The firms focus on increasing market share by
focusing on different marketing strategies.
• Due to the increasing in the sales POM has crucial
role in producing quality product in desired time
and quantity.
• It is a very important stage of product life cycle in
terms of making profit form the market.
• Examples:
• Internet Radios
 Cont
3: Maturity stage
• During this stage sales grow at a very fast rate and then gradually begin
to stabilize.
• When the sales revenue is increasing, the competitors also
introduce similar products.
• Thus the competition is increasing .
• The firm is under pressure to cut prices due to
increasing competition.
• Profit is decreasing due to price cut.
• It needs additional expenditure in product
modification.
• Every force focus on retain the existing customers.
• Examples:
• Cell Phone, Automobiles
4. Decline:
This is the stage in which sales of your product begin to
fall. Either everyone that wants has bought your product
or new, more innovative products have been created that
replace yours.
• Sales revenue almost reached to zero level, competition
is at peak.
• Product modification and searching for new market is
worthless.
• Reduction of the various costs is only way to exist in the
market.
• The company wants to invest in new products in the
place of the existing product
Examples:
• B&W Television
 Facility Layout
• After choosing the facility's location, the next stage in operations
planning is to design the best physical layout for the facility. The
available space needs to be assessed with workstations,
equipment, storage, and other amenities need to be arranged.

• Plant Facility layout refers to the arrangement of physical facilities

such as machines, equipment, tools, furniture etc. in such a manner
so as to have quickest flow of material at the lowest cost and with
the least amount of handling in processing the product from the
receipt of raw material to the delivery of the final product.
Objectives of Plant Layout
• Proper and efficient utilization of available floor space
• Transporting work from one point to another without any delay
• Proper utilization of production capacity.
• Reduce material handling costs
• Utilize labour efficiently Reduce accidents
• Provide for volume and product flexibility
• Provide ease of supervision and control
• Provide for employee safety and health
• Allow easy maintenance of machines and plant
• Improve productivity
 TYPES OF LAYOUT:

There are mainly four types of plant layout:

• (a) Product or line layout
• (b) Process or functional layout
• (c) Fixed position or location layout
• (d) Combined, cellular or group layout
PRODUCT OR LINE LAYOUT:
• In this type of layout the machines and equipment's
are arranged in one line depending upon the sequence
of operations required for the product. It is also called
as line layout. The material moves to another machine
sequentially without any backtracking or deviation i.e
the output of one machine becomes input of the next
machine. It requires a very little material handling.
• It is used for mass production of standardized
products.
 2: PROCESS LAYOUT:
• In this type of layout the machines of a similar type
are arranged together at one place. This type of layout
is used for batch production. It is preferred when the
product is not standardized and the quantity produced
is very small.
Disadvantages of Process layout:
• Material handling costs are high due to
backtracking. More skilled labour is required
resulting in higher cost.
 3: COMBINED LAYOUT:
• A combination of process & product layout is known as combined
layout.
• Manufacturing concerns where several products are produced in
repeated numbers with no likelihood of continuous production,
combined layout is followed

4: FIXED POSITION OR LOCATION LAYOUT:

• Fixed position layout involves the movement of manpower and
machines to the product which remains stationary. The movement of
men and machines is advisable as the cost of moving them would be
lesser. This type of layout is preferred where the size of the job is bulky
and heavy. Example of such type of layout is locomotives, ships, boilers,
generators, wagon building, aircraft manufacturing, etc.
Advantages of Fixed position layout:
• The investment on layout is very small.
• The layout is flexible as change in job design and operation sequence
can be easily incorporated.
Disadvantages of Fixed position layout:
• ·As the production period being very long so the capital
investment is very high.
• Very large space is required for storage of material and equipment
near the product.
• As several operations are often carried out simultaneously so there is
possibility of confusion and conflicts among different workgroups.