Product, Process and

Service Design
Product and Process Design
Product Design: the process of imagining,
creating, and iterating products that solve users'
problems or address specific needs in a given
market

Process Design – the development of the

process necessary to produce the designed
product.
Why design a Product?
Product/service quality

Production/delivery cost

Customer satisfaction
Aspects of Product Design
Design for function

Design for making

Design for selling

Modules of Product design
Sources of Product Innovation

Developing New Products/Services

Getting Them to Market Faster

Improving Current Products/Services

Designing for Ease of Production

Designing for Quality

Designing and Developing New Services

Consideration of Product Design
Process Planning and design

Value analysis

Standardization and simplification

Make or buy decision

Ergonomic consideration

Concurrent engineering
Product Screening Tool – Break-
Even Analysis
Steps of New Product Development
Designing Product, Service and
Process
Types of Processes: Product
Types of Processes: Services
Types of Processes
Difference Between Continuous,
Intermittent and Jumbled flow system
characteristics Continuous Intermittent Jumbled
Product High volume , very Mid volume, mid Very high variety ,
Characteristics low variety variety low volume

Examples of Process industry, Batch production Project organisation

production systems Mass production in
discrete
manufacturing

Issues Flow balancing, Layout design, Scheduling, cost

capacity utilization changeover estimation
management production control

Product demand Very stable Stable infrequent

Capital Huge Capital Relatively less Less in comparison
of both systems
Process Selection Decisions
•Market conditions

•Capital Requirement

•Labour

•Management Skill

•Raw Material

•Technology
 Determinants of Process Characteristics
• Volume:
▫ Volume is the average quantity of the products produced in a manufacturing system
▫ Firms like BHEL, L&T have production volume of one and firm in FMCG Sector have high
volume of production

• Variety :
▫ Variety refers to the number of alternative products and variants of each product that are
produced in the manufacturing system
▫ Increase in variety, complexity of planning and schedulling

• Flow:
▫ Flow is understanding how the components and material in an operations system get
transformed from raw material to finished goods
Steps in Process Planning
 Designing Service
Unlike the manufacturing system, in service organization
customer are the part of the system

Based on the degree of customer contact, there are three

types of design of service processes:
◦ Low degree of customer contact: Quasi – manufacturing

◦ Medium degree of customer contact: Mixed service

◦ High degree of customer contact: Pure service

 Designing Service
Service Characteristics
 Pure Service
 Quasi-Manufacturing
 Mixed services

Service Package
 The physical goods
 The sensual benefits
 The psychological benefits

Differing designs
 Substitute technology for people
 Get customer involved
 High customer attention
The design of the service process also depends on the complexity and divergence of
the service offering
Process Description Low complexity/ Divergence High complexity/ divergence

Table reservation No reservation Specific table selection options

Seating, offering menus Self seating, menu on the board Describe in details all the food
items

Order taking process Customer calls out his Order taker interact with the
requirements customers

Main menu Only South Indian South Indian, Chinese etc

Cash payment Payment on the counter while Multiple choices of payment

leaving
Designing Process
Example: Process Flow Chart at a
Pizza Outlet
Example: Process Flow
chart of Customer Flow at a
Pizza Outlet
Technology Issues in Process Design
Advancement in manufacturing technology have provided some relief by
simplifying process flow.

Out of the several developments, Flexible Manufacturing Systems have been

most prominent.
Flexible Manufacturing Systems
FMS consists of numerous programmable machine tools known as Numerical

Control (NC) machines, connected by an automated material handling system

and controlled by a common computer network

This advancement of technology provides various flexibilities in manufacturing
system

◦ Machine Flexibility

◦ Process Flexibility or mix flexibility

◦ Product Flexibility

◦ Routing Flexibility

◦ Volume Flexibility
Process Performance Matrices
 Questions 1
Look at the following data for a fulfilment center
Resource Pool Number of Unit Load Hours Capacity Effective
People (minutes per Available of each Capacity
order) per day unit

Scanning 2 2 10 300
Sorting 5 5 6 72
Packaging 10 15 4 16
Question 1 Contd.

a) What is the effective capacity of the process?

b) If the process gets 120 orders then what is capacity utilization of each resource pool?

c) Identify the bottleneck in the system

d) If the fulfilment center required to supply 300 units per day, identify the minimum number of packaging

resource they should hire to meet the demand. What will be effective capacity in the above situation?

e) If the demand goes down to 250 but the center decides not the layoff people. Identify the utilization

given the resource pool is same as the one in part d above.