PRODUCT DESIGN AND DEVELOPMENT

PRODUCT DESIGN

From the production manager’s point of view, the key output of the product design
activity is the product specification. These specifications provide the basis for a host of
decisions he must make, including the purchase of materials, selection of equipment,
assignment of workers, and often even the size and layout of the production facility. Product
specifications, while commonly thought of a blueprint or engineering drawings, may take a
variety of other forms ranging from highly precise quantitative statements to rather fluid
guidelines.

At the onset, it should be understood that this is an idealized case, synthesized from a number
of approaches to product design. It should also be mentioned that product design and
development rarely follow a discrete sequence. Typically, there are frequently looped activities
are often performed concurrently. Further, the extent to which this phase is formalized and
specified varies from industry to industry. Generally, firms which require a good deal of
research and tooling or heavily dependent on innovation to complete in the marketplace, adhere
to a more formalized program than those that do not.

NEED FOR DESIGN

In the discussion of product selection noted that the product definition derived from the
selection process varies in completeness and is often intervened with the product design
decision. For a steel producer, for example, the decision to add a new alloy would constitute
both the product decision and the product design. On the other hand, it is probably more typical
for the product selection phase to yield just the ‘bare bones’ of the final product. This decision
would not require a detailed investigation of design factors ate the selection phase since these
companies presumably have mastered the general skill required to produce these products.

PRELIMINARY DESIGN

Whether or not it is a separate phase in the sequence of design activities, preliminary

design is usually devoted to developing several alternative design that meet the conceptual
features of the selected product. If the refrigerator manufacturer decides that he will produce
freezers, questions of style, storage capacity, size of motor etc. will likely be encountered here.
During preliminary design it also is common to specify the key product attributes of reliability,
maintainability, and service life.
Customer

Marketing

Product design

Sales Product

Process design

Purchasing

Operations

Suppliers
Time
 FINAL DESIGN

FIGURE
Products : 1.2 PRODUCT
innovations DEVELOPMENT STAGES
Process innovations

Need
undulated
Technology
stimulated
Output rate
stimulated Cost
stimulated

Uncoordinated processes Integrated

Performance maximization process
Cost
maximization

FIGURE: 1.3 PRODUCT – PROCESS RELATIONSHIP

During the final design phase, prototype are developed and ‘bugs’ are worked out of the design
so that the product is sound from an engineering standpoint. Thus ultimate output of the final
design includes the complete specification of the product, its component, and, in the case of
manufactured item, the assembly drawings, which provide the basis for its full scale
production. Again, the degree of design specificity varies according to the type of product being
considered. To produce an automobile required precise quantitative statements regarding the
tensile strengths of steel for the chassis, tolerances for the engine components, the composition
and thickness of brake lining, and so on. In contrast, the final design of treatment given a
hospital patient would be unspecified since the exact nature of medial care must of necessity
by determined during the “production’ stage.

At this point too, the effectiveness of alternative designs must be balanced with cost
consideration, and –inevitably-compromises must be made.
This especially true in selecting the configuration and material for manufactured items. The
complexity of this tradeoff can be seen when we consider that even such a relatively
unsophisticated product as a home freezer has roughly 500 components, each of which could
conceivable be subjected to an alternative cost analysis. Typical consideration that must enter
the analysis are component compatibility and simplification.

FACTORS TO BE CONSIDERED

1. Materials

 Should be cheap

 Should be able to withstand design requirements

 Minimum wastage during production

 Easily workable and machinable

2. Manufacturing Facility

Product design should be commensurate with resources available like equipments,

Labour and layout

3. Ergonomics

 Should be easy to operate

 Look up position for overhead

 Should cause minimum fatigue to the workers and provide comfort to them

4. Maintenance

 Ease of maintenance and service

5. Standardization

6. Tolerance

7. Valve engineering

8. Inter-changeability

9. Simplification

Origin of the product idea and selection from among alternatives: The product decision
involves two major activities prior to final product design. The first is gathering ideas for
alternatives product, and the second is selecting from among the alternatives the product or
products that are to be produced. We will consider these activities in order.
 Before we consider where the product idea comes from, it is useful to defined just we
mean by the term product. For our purposes, a product is the output from a productive system
offered for sale (in the case of a business) or otherwise made available) in the case of a
governmental or philanthropic organization), to some consumer. It should be noted that his is
a production definition as opposed to a marketing definition. A marketing definition required
that the concept of a product include reference to such intangible as satisfaction and symbolism
in order to convey the fact that, for promotional purpose, a product that meet certain
psychological demands for the consumer. Production, on the other hand, need only meet
prescribed product specification; it is not required to determine how the product is perceived
in the marketplace.

Product ideas may originate from any number of sources, some of which are not
obvious. Marketing textbooks and journals frequently cite unusual examples of sources of new-
product ideas to emphasize that business must be keenly attuned to all possible sources to
ensure that the “golden idea” is not missed or passed over without adequate consideration. A
meat packing company once got the idea of developing an onion soup from a suggestion of one
of its executive’s wives. An appliance manufacturer developed a foot warmer on the basis of a
customer inquiry. A maker of pottery designed a new vase after seeing a similar one at a
museum exhibit. A producer of plastic products designed a film slide viewer after reading a list
of needed invention published by a bank. While such examples constitute the exceptional rather
than the more common sources of ideas for new products, they indicate that ideas are to be
found almost anywhere and that aggressive firms cannot afford to discount an idea simply
because it originates from an unusual source.

Nevertheless, one authoritative report of source for new product ideas indicates that the
great majority of ideas are generated within the firm rather than by external sources.

Choosing among alternative products. The idea-gathering process, of properly carried

out, will often lead to more ideas that can be translated into producible product. Thus a
screening procedure designed to eliminate those ideas which clearly are infeasible must be
instituted. The screening procedure seeks to determine if the product is generally compatible
with the company’s objectives and resources. Regarding objectives, a product may be dropped
if it is deficient in profit potential or in prospective growth or stability of sales, or if its is
deleterious to the company image. In terms of resource, a product may be dropped if its exceeds
the company’s capital availability or is incompatible with the company’s managerial and
technical skills or physical facilities.

Of the several techniques available to aid in the screening process, perhaps the most
commonly used are rating check sheets. In one such sheet, a number of important
considerations are enumerated – for example, sales volume, patent protection, competition –
and the product is categorized from “very good” in “very poor” for each of these considerations.
The product selected will show a rating pattern that meets the company’s standard, from
favorable to unfavorable ratings. More refined rating devices apply numerical weights to the
important consideration and quantify the ‘goodness’ categories.
 “Compatibility” refers to the fitting together and proper articulation of parts during
operation. Problems of compatibility arise not only with parts that must, mesh, such as freezer
door latches, but also with parts that must respond similarly to conditions of stress. Drawbridge
components must of course fit together, but they must also have similar tensile strength so as
to accommodate high winds and similar expansion coefficients as to adjust equally to variations
in heat and cold. “Simplification” refers to the exclusion of those features that raise production
costs. Problems of simplification arise mainly in manufacturing, where such seemingly
innocuous requirements as rounded edges or nonstandard hole sizes may create productions
bottlenecks and subsequent repair problems when the items is in use. Where the product is a
service, simplification arise in regard to such things as form design ) Employment agencies) or
customer routings (baggage pickup at an airline terminal).

In addition to the above activities, which are more or less universal, some organizations
engage in rather formalized product testing programs and redesign activities during the final
design stage. Product testing may take the form of test marketing in the case of consumer
products or test firing of a weapons system in the case of military. In both instances a good
deal of planning would necessarily precede the tests. Product redesign generally takes place
after the prototype has been tested, and may be major or minor in scope. If the design in major,
the product may be recycled through the preliminary design phase, if the change is minor, the
product will probably be carried through to production. It should be noted, however, that there
are ‘minor changes and minor changes. In some instances, an apparently slight modification to
some component may greatly alter the integrity of the entire product.

PRODUCT LIFE CYCLE

Every product has its life as human beings to have. The life span of a product is decided
by many factors, viz., the product itself, the substitutes competitor’s strategy, company’s own
position in the market.

This concept is widely used in marketing to describe the sales performance of a product
over time. The basic idea is that product go through five stages, viz.,

 Introduction

 Growth

 Maturity

 Saturation

 Decline
 Sales volume

Start-up Rigid growth Maturation Commodity

Stages of decline

FIGURE : 1.4 PRODUCT LIFE CYCLE

CONSIDERATIONS DURING PLC

Introduction: The product is put on the market and awareness and acceptance are
minimal

Growth: The product begins to make rapid sales gains because of the cumulative effects
of introductory promotion, distribution, and word-of-mouth influence.

Maturity: Sales growth continues but at a declining rate, because of the diminishing
number of potential customers who remain unaware of the product or who have taken no action.

Saturation: Sales reach and remain on a plateau (market by the level of replacement
demand)

Decline: sales begin to diminish absolutely, as the product is gradually edged out by
better products or substitutes.

During the introduction stage, sales volume is yet to pick up due to the factor that the
product is yet to be fully positioned by the company. In this stage the supply outstrips the
demand.
 The growth stage sees an increasing sales volume, which outstrips the supply. The
company derives the maximum benefit from this stage. Efforts are made to stretch this phase,
as this is highly beneficial to the very existence of the organization itself.

The difference between output and sales represents inventory, which is built up became
output exceeds demand. During steady state operations at the product maturity stage. Supply
and demand for the product have reached equilibrium, so that a replacement is available for
each item sold. When the product begins to decline in sales, some excess inventory is again
built up, but then is eliminated as the system cuts back production. During the final stage
residual demand for the product at last exceeds production. During the final stage, residual
demand for the product at last exceeds production. Theoretically, the amount of this demand is
equal to the amount of the previous inventory build-up, since management would plan to stop
production at that point in time when existing inventory stocks would satisfy all remaining
demand. If we assume that the system is shut down at this stage, the resources are sold off, and
the work force sent home – we would label this an example of permanent termination.

STANDARDIZATION

In reality, numerous variety of components are used in various equipments. Some

product will be sold by different companies (like two wheelers, washing machines, cycles,
mixies, refrigerators, electric motors, etc.). if we closely examine the components used in each
of the above products supplied by different vendors, we find exact similarity in terms of shape
and size among the components like bearings, nuts, bolts, springs, screws, axle, etc.

Bearings, tyres, etc, which are manufactured by third parties can be used in any two
brands of products manufactured by two different companies. under this situation, one should
establish a common standard so that the parts / components can be interchangeably used in
both products.

Standardization is the base of all mass production systems. Standards convey the sense
that only certain specific sizes are made and sold. One can provide numerous components/parts
in numerous sizes/shapes. But maintaining a proper stock of all the items will be a problem for
the retailers. Moreover, it is not possible to take advantage of mass production, because some
parts need to be manufactured in small batches. So, standardization solves all these problems
because standardization is the process of establishing standards or units of measure by which
quality, quantity, value, performance, etc. may be compared and measured.

STANDARDIZATION PROCEDURE

The steps involved in standardization are as follows:

 With the help of market research, sales statistics, etc determine what is to be sold in
future.

 Define a range of products

  From range of products, select the minimum variety of components matching the range
for manufacturing. Introduce new materials, components, etc., if necessary.

An approach to standardization necessitates the classification of materials and

component parts.

CLASSIFICATION

Classification will be of great value in material and component standardization.

Classification aims at systematically grouping together items, based on their common features
and subdividing them by their special features. A system of classification and codification is
necessary for the design of new products within the defined range. Such systems should readily.

 Identify and locate identical items

 Facilitate the use of standard items in new designs

 Identify substitutes in case of stock out.

 Help to develop group technology which will be of more use in designing layout and
facilities.

 Aid to improve parts location in the store.

ADVANTAGE OF STANDARDIZATION

The advantages gained from standardization procedure are as listed below:

 Fewer specifications, drawings and part lists have to he prepared and issued

 Better quality products

 Lower unit costs

 Increased margin of profit

 Easy availability of spares

 Minimum inventory cost.

 Quantity discounts are possible because of purchase or raw materials in large volume.

APPLICATION OF STANDARDIZATION

Standardization can be applied to a major extent in the following fields:

 Finished products, e.g. cars and televisions

 Sub-assemblies and components, e.g. automobile gearboxes and auto-electric bulbs

  Materials, e.g. both direct materials (plan carbon and alloy steels, welding electrode,
core wire, etc.) and indirect materials such as oils and greases.

 Production equipments, e.g. that of machine tools, press, welding equipments, etc.

RELIABILITY AND MAINTAINABILITY

“Maintainability” refers to the ability of the user to keep the product or system in
operating condition with a reasonable amount of effort. This ability to maintain operation may
entail the availability of some required service from the manufacturer or authorized repair
facility, provision of a stock of replacement parts available to the user, and written maintenance
and repair procedures. Good product design for maintainability usually implies ease of product
disassembly and case of access to within the product to facilitate routine service or replacement.
Switches, valves, motors with brushes, oil fills, etc. should be located for ready across, with
removable covers placed at convenient locations. The alternative to providing maintaining is
to “overdesign”. This approach reduces the need for repair but raises production costs.

Maintainability consideration, to the consumer’s charging, often come after the fact. Although
good product planning dictates that maintainability be considered at the design stage, it is
frequently built into subsequent models of the product in response to consumer complaints.
Clearly, this procedure may also have an adverse effect on production because it may entail
retooling added inspections, and other changes to remedy maintainability faults.
Failure rate

Initial Useful performance line Wear

use out
failures failure

FIGURE: 1.5 PRODUCT FAILURE CURVE

“Reliability” may be defined as the probability, or degree of confidence that a product will
perform a specified number of times under prescribed conditions. When parts are
interdependent, and especially when there is a large number of them, achieving a high degree
of reliability for a product presents and real challenge.

REVERSE ENGINEERING

There is yet another way of designing a product. So far, we have seen the procedure
and details about designing a product form the scratch. The product idea goes through the stages
and get converted into a product, which finally reaches the customer.

In the reverse engineering process, it is done exactly in the reverse way. The product is
available with the product designer. The job of the designer is to go through the details of the
existing product and the system specification for that product. The job also includes the
preparation of detailed assembly, sub-assembly, component drawings. This apart, the designer
has to develop the material requirement, material specification, quantity of material required
to produce the item.

After identifying the details, detailed design drawings and subsequently the engineering
drawings are developed. Using these, the normal production techniques are adopted to product
the product.

Technology in design (CAD, CAE, CAM)

Computer-Aided Design
It refers to the use of computer technology for the process of design and design-documentation.
CAD software provides the user with input-tools for the purpose of streamlining design
processes; drafting, documentation, and manufacturing processes. CAD is used in the design
of tools and machinery and in the drafting and design of all types of buildings, from small
residential types (houses) to the largest commercial and industrial structures (hospitals and
factories). It is also used throughout the engineering process from conceptual design and layout
of products, through strength and dynamic analysis of assemblies to definition of
manufacturing methods of components. It can also be used to design objects.
CAD has become an especially important due to its benefits such as lower product development
costs and a greatly shortened design cycle

Computer-aided manufacturing (CAM)

CAM may also refer to the use of a computer to assist in all operations of a manufacturing
plant, including planning, management, transportation and storage. Its primary purpose is to
create a faster production process and components and tooling with more precise dimensions
and material consistency, which in some cases, uses only the required amount of raw material
(thus minimizing waste), while simultaneously reducing energy consumption

Computer-aided engineering (CAE)

Computer-aided Engineering (CAE) is the use of computer programs to help engineers with
tasks like simulations, design, manufacturing, planning, analysis, diagnosis, and repairs. It
includes computer-aided design (CAD), computer-aided analysis (CAA), computer-integrated
manufacturing (CIM), computer-aided manufacturing (CAM), material requirements planning
(MRP), and computer-aided planning (CAP).

Distinctive features of service systems

The key distinction between service and manufacturing systems is that services are
intangible outputs that are consumed in the process of their production. Services cannot be
stored and only follow to-order approach. The technology and process for supplying the service
can differ significant from one industry in the service sector to another. Further, within the
same industry- for example, the restaurant industry- there can be vast differences in both the
supply technology and the desired outputs.

The inputs to a service productive system are the consumers themselves. The productive
process that transforms the inputs into outputs consists of labour, technology, information, and
the like. The output of such a system is the altered state of the consumer, for example, a cured
patient, a transported traveler, or an informed client. The operations manager can control the
design and mix of the productive process to meet customer requirements.

The point of contact for a customer with product, in a conventional manufacturing, is limited
to the retail end. In the production of tangible goods, such as automobiles, soap, or beer,
customer contacts product after actual manufacturing has been completed. In the design,
planning and control of the associated manufacturing process, the preferences of consumers
are important, but the customer’s actual presence is not. However in current concepts like co-
creation, companies are trying to increase the contact of customer in early stages of production
and design.

Significant manufacturing efficiencies and productivity growth has been witnessed in the past 100
years. For example, the number of TVs produced per worker has increased a hundred fold since
the advent of the TV industry. This has undoubtedly decreased the cost of TVs, making them
affordable to virtually anyone with moderate means. In the same time span, however,
productivity in education may not have even doubled, despite the significant advances in
information transmission technology. Therefore, without public subsidy, quality education
would be affordable only to those with extensive means. The key distinction is not that the
TV maker now works faster than the teacher but rather that the direct customer contact required
in education limits regular growth in the productivity without compromising the quality of the
service delivered. Gradual increases in the cost of education are not the result of administrative
inefficiencies but are intrinsic to the nature of the services provided. An operations manager or
policymaker who views progress in terms of cost reduction would likely be frustrated in the
field of educations. Instead, the emphasis should be on the quality and accessibility of education
and on education’s contribution to productivity growth in other sectors through well trained
engineers, managers, or physicists.

However, not all services require such a high degree of customer contact. At the other
extreme is the telephone industry, which requires little direct customer contact except for
operator assisted telephone calls and directory assistance. In this industry, the cost of the service
has steadily decreased while quality improvements have been consistently achieved over time.
The productivity growths documented in the telephone industry are large in comparison to
those attained by virtually any manufacturing institution. Since considerable insights into the
workings of various industries within the service sector of our economy can be provided by
using direct customer contact asa variable, we will use it as a primary feature of classifying
service systems

A Classification of Service Systems

The service sector does not consist of a homogeneous group of services. The industries
within the service sector are too heterogeneous for a common frame of analysis. We will use
here a classification scheme proposed by Baumol (1984) with some modifications. The
services can be classified into four categories:

1. Stagnant personal services

2. Substitutable personal services

3. Progressive services

4. Explosive services

Stagnant Personal Services

These services frequently require direct contact between the customer and the service
provider. Some examples are haircutting, live artistic performance, psychiatric counseling, and
teaching. Since the quality of such a service is highly correlated with labor time, it is difficult
to realize significant productivity gains for these services without an appreciable reduction in
quality. It seems evident, for instance, that the amount of time required for a haircut cannot be
decreased substantially without some drastic implications. These services offer low innovations
potential and are difficult to standardize.
 The challenge in managing stagnant personal services is to improve their effectiveness
through better management. A substantial gain in productivity in the supporting activities
necessary for providing the service can often be realized. For example, copying facilities,
overhead projectors, and computers have all contributed to improving the productivity of
teachers. Even live artistic performance have benefited from jet travel, which has reduced
the total number of artist hours performance

considerably even though actual rehearsal and performance time remains constant over time.

Although productivity gains are minimal in stagnant personal services, the operations
manager has several options for strategically placing the service that are consistent with
corporate goals. All haircutting shops, for instance, are not alike. One may emphasize low cost
with little customization, whereas another may emphasize customization and charge a higher
price. Both firms may be successful if managed well, as they cater to different segments of the
market.

Substitutable Personal Services

These services also require direct personal contact, and they have characteristics similar
to stagnant personal services. However, it is possible to substitute for these services with
technological or other alternatives. An example would be the services of a guard that can be
replaced by electronic surveillance systems. In the twenty first century, we have seen ovens,
washers and dryers, and other household appliances substituted for personal servants. Some
types of teaching, such as real estate licensing course work, are now conducted using cassettes,
tapes, and videos, and the demand for the live instructors has decreased correspondingly.

A great leap in productivity in substitutable personal services is provided by

technological innovation. For example, electronic mail may improve the productivity of the
mail delivery system manifold. Television provides access to millions of people of special
events that can be viewed in person by only a few thousand.

It should be noted that while the substitutes for personal services are often less costly,
they are often also inferior. A personal cook cannot be compared with an assortment of
kitchen devices that make cooking easy. Similarly, watching a concert or a sporting event on
TV is not the same as the live performance.

Progressive Services
 These services have two components. One component requires little labor and
considerable cost reductions are possible with it. The second component is highly labor intensive
and is much like stagnant personal services. An example is computation service.

In a simplified aggregate view, computation services can be conceptualized as consisting

of hardware and software. The cost of hardware per computation has declined steadily;
conversely, the cost of software has risen. This is because software is produced by human labor
and offers limited productivity growth.

Another example is television broadcasting, where the two components are the
transmission and the production of a program. Transmission cost have steadily decreased with
advances in the electronics and space industries. However, the production of a television
program, is highly labor intensive and consequently, the associated cost continues to increase.
Research and development can also be thought of as consisting of two dichotomous
components: equipments and human thought.

Progressive services can exhibit phenomenal productivity growth and cost reductions
initially. This is due to the relatively important contribution of the first technology intensive
component. For example, computer hardware contributes significantly to computations
cost; thus, decreases in hardware cost per computation lead to overall cost educations. Since
the costs per unit of output for the second, labor intensive component are increasing, the decline
in total cost cannot be sustained for long periods. In this sense, productivity growth is self-
extinguishing. This happens because, in due course of time, the relative contribution of the second
component exceeds that of the first component. The stagnant nature of the second component
dampens productivity growth.

Progressive services pose a special challenge to operations managers, as the management

of the two components of the service will require careful coordination. The rational
expectations for these services should not be guided by the initial cost decline and productivity
growth but by a longer range view. In the long run, the emphasis should be on improving the
performance of the service system as overall costs will not be likely to go down. This has been
demonstrated in electronic libraries, where the quality of the service has improved but expected
cost savings have not occurred.

Explosive Services
 Explosive services involve virtually no contact between customers and production labor.
Telephone communications is one example of such a service. These services offer high
innovation potential as technological advances decrease cost substantially. In telephone
communications, the technology has progressed from open wires to microwaves, coaxial
cables, satellite transmissions, and digital technology. The productivity growth has been
connections as clear as those for local city calls. In the future, services such as airlines
reservations, banking, and shopping may be conveniently conducted using home computer. These
services better experience and explosive growth in productivity commensurate with associated
technological advances. The benefits tothe consumer will be greater variety of services at
declining costs.