Operations Management Lesson 3 Product Design and Process Development

What you will learn in this unit: Product Design New Product Development NPD Consideration Process Selection Types of Processes Measuring Process Performance

Product Design Product design is the process of defining the characteristics of the product; at times identify the core features and the outlook of the end product.

The purpose of design is to satisfy customers satisfy needs meet expectations are aesthetically pleasing perform well are reliable are easy to manufacture and deliver Product designers will seek to create things that:- Process designers also seeks to satisfy customers

Products and services should be designed in such a way that they can be created effectively Processes should be designed in such a way that they can create all products and services which the operation is likely to introduce Decisions taken during the design of the product or service will have an impact on the decisions taken during the design of the process which produces the product or service or vice versa Designing the Product or Service Designing the Process which Produces the Product or Service The design of products/services and processes are interrelated and should be treated together

Choice and evaluation "Screens" Uncertainty Regarding the Final Design Certainty Regarding the Final Design TIME Large Number of Design options Design involves progressively reducing the number of possibilities until the final design is reached CONCEPT FINAL DESIGN SPECIFICATON One Design

Idea Screening Product Screening Prototype Testing Market Testing Commercialization Conceptualization New Product Development Processes Reid, D. R. & Sanders, N.R. 2005

Broad categories of evaluation criteria for assessing design options FEASIBILITY How difficult is it? ACCEPTABILITY How worthwhile is it? VULNERABILITY What could go wrong? THE CRITERIA FOR ASSESSING PROPOSED DESIGN OPTIONS What INVESTMENT both managerial and financial will be needed? What RETURN in terms of financial and performance improvement will it give? What RISKS do we run if things go wrong?

The product lifecycle (PLC) Products need managing throughout their working lives. This requires deciding: What products should be created. How to capitalise on a product’s strengths and iron out any weaknesses. When an older product is past its prime and needs modification or withdrawal from the market.

The product lifecycle (PLC)

Process Design Process: Is any part of an organization that takes inputs and transforms them into outputs. What is Process Design? Process design is the selection of inputs, operations, work flows and methods for producing goods and services. HOW should we make our products or provide our services?

How to select Process? Process Selection Volume – Expected output Variety – Level of standardization Intermittent Operations Repetitive Operations Objective: Meet or exceed customer requirements. Achieve competitive advantage.

Variety Process types in manufacturing High Low VolumeLowHigh Project Jobbing Batch Mass Continuous

The Design of processes – Process types Each process type implies a different way of organizing operations activities with different volume and variety characteristics. Project processes Project processes are those which deal with discrete, usually highly customized products. Low volume and high variety. Examples of project processes include shipbuilding, most construction companies, movie production companies, drilling oil wells etc.,

Project Processes examples Construction Company movie production companies

Jobbing processes Jobbing processes also deals with very high variety and low volumes. Whereas in project processes each product has resources devoted more or less exclusively to it, in jobbing processes each product has to share the operation’s resources with many others. Examples for Jobbing processes include many precision engineers such as specialist toolmakers, furniture restorers, printers who produce tickets for the local social event.