Product Design and

Process Selection
Presentation
Product Design
• the process of
deciding on the
unique
characteristics and
features of the
company’s product
• Must support product
manufacturability

• Specifies which materials

are to be used, defines
the appearance of the
product and sets
standards for
performance.
DESIGN OF SERVICES VS. GOODS

SERVICE DESIGN:

• is unique in that both the service and the entire service concept are
being designed.

• Service elements: promptness, friendliness, ambiance, image, and “feel-

good”
What does product design do?

1. Translate customer wants and needs into product and service requirements.

2. Refine existing products and services. .

3. Develop new products and/or services. .

4. Formulate quality goals. .

5. Formulate cost targets. .

6. Construct and test prototype. .

7. Document specification. .

8. Translate product and services specification into process specification. .

 KEY QUESTIONS

1. Is there demand for it?

2. Can we do it?

3. What level of quality is inappropriate?

4. Does it make sense from an economic standpoint?

REASONS FOR PRODUCT DESIGN OR REDESIGN

Market Opportunities and Threats

• ECONOMICS

• SOCIAL AND DEMOGRAPHIC .

• P O L I T I C A L, L I A B I L I T Y, O R L E G A L .

• COMPETITIVE .

• COST OR AVAILABILITY .

• TECHNOLOGICAL .
 PROCESS

1. IDEA GENERATION .

2. PRODUCT SCREENING

3. PRELIMINARY DESIGN

4. FINAL DESIGN .
 PROCESS

REASERCH AND 1. IDEA GENERATION . CUSTOMERS

DEVELOPMENT
1. BENCHMARKING
COMPETITORS 2. REVERSE
2. PRODUCT SCREENING ENGINEERING
SUPPLIERS

3. PRELIMINARY DESIGN
EMPLOYEES

4. FINAL DESIGN .
 PROCESS
1. IDEA GENERATION .

REASERCH AND CUSTOMERS

DEVELOPMENT
1. BENCHMARKING
COMPETITORS 2. REVERSE
2. PRODUCT SCREENING ENGINEERING
SUPPLIERS

3. PRELIMINARY DESIGN
EMPLOYEES

4. FINAL DESIGN .
 PROCESS

ISSUES

What are the production

1. IDEA GENERATION . OPERATIONS
needs?
Break-Even Analysis:
A Tool for Product How much effort will be
MARKETING 2. PRODUCT SCREENING
Screening needed?
computes the quantity
of goods a company 3. PRELIMINARY DESIGN What are the financial
FINANCE
needs to sell just to potential?
cover its costs.

4. FINAL DESIGN .
 PROCESS
2. PRODUCT SCREENING

ISSUES

1. IDEA GENERATION . OPERATIONS

Break-Even Analysis:
A Tool for Product
Screening
MARKETING

computes the quantity

of goods a company 3. PRELIMINARY DESIGN
FINANCE
needs to sell just to
cover its costs.

4. FINAL DESIGN .
 LEGAL AND ETHICAL CONSIDERATION

K
HUMAN FACTOR
E
Y
CULTURAL FACTOR
I
S GLOBAL PRODUCT AND SERVICE DESIGN
S
U
ENVIRONMENTAL FACTORS: SUSTAINABILITY
E
S
OTHER DESIGN COMSIDERATIONS
 FACTORS IMPACTING PRODUCT DESIGN

Design for Product Concurrent

Remanufacturing
Manufacture Life Cycle Design simplification
Engineering

a series of a series of stages

an approach that concept of using
guidelines that we brings many people components of
of changing together in the early
should follow product demand old products
phase of product
to produce a Design standardization in the production
design in order to
product easily and simultaneously design of new
profitably. the product and the ones.
process.
 Process Selection
refers to deciding on the way production of goods or
services will be organized.

KEY ASPECTS

• Capital Intensity • Process Flexibility

Primary Questions How much variety in products or
services will the system need to
handle?

What degree of equipment

flexibility will be needed?

What is the expected volume of

output?
Types of Processes

Intermittent Operations Repetitive Operations

Processes used to Processes used to

produce produce
a variety of products one or a few
with different processing standardized
requirements in lower products in high
volumes. volume.
 The Continuum of
Process Types

PROJECT
BATCH LINE CONTINUOUS

Used for work that is

Used when a moderate Used to Used when a very high
nonroutine, with a
volume of goods or produce a large volume of nondiscrete,
unique set of objectives
services is desired, and volume of highly standardized
to be accomplished in
it can handle a a standardized output is desired.
a limited time frame. product.
moderate variety in
products or services.

INTEMITTENT REPETITIVE
DESIGNING PROCESSES

Process flow analysis Process flowchart

A technique used for A chart showing the

evaluating a process in sequence
terms of steps in producing the
of the sequence of steps product or service.
from
inputs to outputs with the
goal of improving its design.
 Make-to-stock Assemble-to-order Make-to-order
strategy strategy strategy

Produces standard Produces standard Produces products

products components that to
and services for can be customer
immediate combined to specifications after
sale or delivery customer an order has been
specifications. received.
 PROCESS PERFORMANCE METRICS

basic process performance

Measurements of different
process characteristics that tell
how a process is performing.
metric:
Throughput time
Average amount of time it
takes a product to move
through the system.
PROCESS PERFORMANCE METRICS
LINKING PRODUCT DESIGN AND
PROCESS SELECTION
 TECHNOLOGY DECISIONS

Information Enterprise resource

technology (IT) planning (ERP)
Large software
Technology that enables
programs used
storage, processing, and
for planning and
communication of
coordinating
information within and
all resources throughout
between firms.
the entire enterprise.
 WIRELESS TECHNOLOGY

type of wireless technology

Global positioning systems (GPS) that uses satellite transmission to
communicate exact locations.

wireless technology that

Radio frequency identification (RFID) promises to dramatically change
business operations.
 Automation

Using machinery to perform work without

2. PRODUCT SCREENING
human operators.

can read bar codes that tell them which

Automated Material Handling location to go to and which are capable of
moving in many directions.

a type of automation system that

combines the flexibility of intermittent
Flexible Manufacturing Systems (FMS) operations with the efficiency of repetitive
operations.

are excellent for physically dangerous

Robotics jobs such as working with radioactive or
toxic materials.
 e-Manufacturing

a system that
Computer-Aided Design (CAD)
uses computer graphics to design new
Computer products.

the integration of product design, process

Computer-Integrated Manufacturing planning, and manufacturing
using an integrated computer system.
DESIGNING OF SERVICES

How Are Services Different from Manufacturing?

Intangible Product

High Degree of Customer Contact

 How Are Services Classified?

• Restaurants
Pure • Healthcare Facilities
High degree of Contact • Schools
Services • Hospitals

• Offices
• Banks
Medium degree of Contact
Mixed Services • Insurance firms

• Restaurants
Quasi- • Healthcare Facilities
Low Degree of Contact Manufacturing • Schools
• Hospitals
 The Service Package

The Three Elements Of Service Package

• The Physical goods
• The Sensual Benefits
• The Psychological Benefits
 Differing Service Designs

Substitute Technology for People

Get the Customer Involved

High Customer Attention Approach

PRODUCT DESIGN AND PROCESS SELECTION WITHIN OM:
HOW IT ALL FITS TOGETHER

Product design decisions are strategic in nature.

The features and characteristics of a
product need to support the overall strategic
direction of the company. In turn, product
design decisions directly dictate the type of
process selected.
PRODUCT DESIGN AND PROCESS SELECTION ACROSS THE ORGANIZATION

Marketing

Finance

Information system

Human Resource
 Thank You! ☺

Prepared by:
Ang, Angelika B.
Aniar, Joyce
Aperocho, Dorothy Joy
Arce, Khayla Ravene
Prepared to:
Avestruz, Angelo A.
Ms. Yvette Abina-Alisuag