Process management: product

selection and design

Dr. Manvi Khandelwal

What is process management
Process management is a systematic approach to ensure that effective and efficient
business processes are in place. It is a methodology used to align business processes with
strategic goals.
Business Process Management (BPM) is a method for analyzing, designing, controlling
and ultimately improving business processes. Ideally, all of a company's business
processes are included in the analysis.
Process management is a long-term strategy that constantly monitors business processes
so they maintain optimal efficiency. Implemented properly, it significantly helps boost
business growth.
Goals

Aligning processes with the company's vision and values

Standardizing processes to facilitate training and quality assurance efforts

Automating repetitive or simple tasks

Sourcing new technologies

Performing risk analyses to mitigate process risks

Tracking process metrics to measure efficiency

BPM Life cycle
Step 1: Design
Business analysts review current business rules, interview the various stakeholders, and discuss
desired outcomes with management. The goal of the process design stage is to gain an
understanding of the business rules and ensure if the results are in alignment with the
organizational goals.
Step 2: Model
Modeling refers to identifying, defining, and making a representation of new processes to support
the current business rules for various stakeholders.
Step 3: Execute
Execute the business process by testing it live with a small group of users first and then open it up
to all users. In the case of automated workflows, artificially throttle the process to minimize errors.
Step 4: Monitor
Establish Key Performance Indicators (KPIs) and track metrics against them using
reports or dashboards. It’s essential to focus on the macro or micro indicators – an entire
process vs. process segments.
Step 5: Optimize
With an effective reporting system in place, an organization can effectively steer
operations toward optimization or process improvement. Business Process Optimization
(BPO) is the redesign of the business processes to streamline and improve process
efficiency and strengthen the alignment of individual business processes with a
comprehensive strategy.
Why there is need of Business process Management
Benefits of implementing Process Management
Improved Business Agility
Reduced Costs and Higher Revenues
Better Visibility
Compliance, Safety, and Security
Streamlined Processes
Increased Productivity
Minimized Risks
Create, map, analyze, and improve business processes
Run everyday operations more efficiently
Example

Onboarding New Employees | Human Resource Department

Managing Logistics | Shipping Company
Loan Processing | Banking Firms
Compliance Management| Insurance Companies
Customer Service | Retail Business
Product Selection

The product selection is an ongoing process in any organization.

Product selection is an strategic decision for any organization.

Such decisions are long-term decision.

Technology, capacity, location, competition, profitability, producibility.

In line with objective of the company.

Must utilize company’s strength and must not be vulnerable to company’s weakness.
Product selection depends on
Importance of Product Selection
Product Selection Stages
THE PRODUCT SELECTION PROCESS

Product selection is an ongoing process in any organization. In fact, as the environment changes, as new
technology is developed and as new tastes are formed, the product should benefit from these developments;
otherwise what is perceived to have added value today may not be perceived as such tomorrow. For example, jute
has been in use as a packing medium for a long time. However, with changes in technology and consumer taste,
the same product is no more perceived to have added value, and therefore, its demand has reduced.

MARKET RESEARCH: Survey, ask distributor, customer, gap finding.

APPLIED RESEARCH: Universities, labs, pharma industry.

IDEA GENERATION: Pooling various idea, brainstorming, conscious and formalized attempts.

At the research stage, the priority should be the generation of new ideas. In fact, it is better not to start the
screening process till a reasonable opportunity has been provided to generate all new ideas. This is because
different thought processes are required for the generation of new ideas and for a rational analysis of the same.
Consideration of one new idea may generate a better idea whereas an evaluative analysis introduced early in the
process may hamper the creative process of idea generation.
Screening

The new product or service idea is assessed to establish its market viability as well as to find out if it is in the larger
corporate interest of the organization to add this new product or service to the current outputs of the organization.

Match with organizational policy, goal, vision, market viability etc. each organization has some corporate strengths
and weakness. New product or services ideas should capitalized on the strengths and should attempt to reduce the
weaknesses.

ECONOMIC ANALYSIS: Product cost, profitability, cash flow, sales volume, expected, capacity requirement, capital
requirement etc.

The economic value of the returns must exceed the economic value of the costs incurred to produce the output.
For commercial organizations, the measurement of the returns and costs is relatively straightforward, and
economic analysis in a way becomes synonymous with profitability analysis

Non-Profit Organizations

For non-profit organizations, there may not be a cash inflow at all, or else the cash inflows may occur at externally
fixed prices. For such organizations, the economic analysis generally means a cost-benefit analysis, which is similar
to the cash flow analysis mentioned earlier but now the net present value of all benefits less that of all costs is used
as an indicator of economic viability.
DESIGN: Providing dimensional specifications, capacity, speed, color etc. for
manufacturing and converting the design into physical products.

TESTING: Marketing Strategy, marketing testing obtaining feedback, improving

design/products.
Product Design
Product design is the process of creating a new product / improving the existing product to be sold
by a business to it’s customers.

It is the translation of entrepreneurs requirements or needs of the customer’s into a specific product.

At the design stage, detailed specifications are provided so that manufacturing can produce what
has been designed. This means not only providing dimensional specifications but even specifications
regarding capacity, horse power, speed, colour etc. are laid down and the task of manufacturing is to
convert the design into physical entities.

Product design includes:

Form design:- means the shape & appearance of the product.

Functional design:- means the working of the product.

Importance

● Product design help the company to enhance the quality & the ability of the
product.
● Help to provide better appearance ,more variety & value for money.
● Refining existing product.
● Developing new product.
● Help in translating customer’s need into product requirement.
● Helps in making easy to use product.
Factors affecting Product Design

● Customers requirement.
● Raw materials to be used.
● Cost of the product.
● Durability.
● Functionality.
● Shapes & size.
● Culture
Steps in Product Design

● Assessing the product.

● Research.
● Ideas.
● Prototypes.
● Final design.
● Testing.
● Manufacturing.
APPROACHES TO PRODUCT DESIGN

1. Traditional business approach

Under this approach, co. identify problems then drive the profitable solutions.

Straightforward approach.

But, it doesn’t leads to success.

It focuses on ‘hoe’ & ‘what’ rather than ‘why’.

It doesn’t consider the needs of the end user.

2) Design thinking approach
It incorporates user experience into design process, beyond look & feel part of product design.

It is a “human centered approach”.

Prototyping phase makes it more successful through testing before launching .

Prototyping helps to know that the product is something that customer needs, understand, will use & its
appealing to mass production.

3) Lean UX approach
This approach puts prototyping process both front & centre.

It’s an approach to start a business venture that takes an idea, translate it into a product/service, measures
customer’s response & then iterate.

Lean focuses on human experience behind design.

Objective is get feedback quickly for making quick decision.

Drawback -It ignores other factors related to development.

4) Design sprint approach

It is a subset of design thinking approach.

It focuses on small part of problem , rather than building a complete new product.

5) Designing for the customer

• Voice of the customer

(Describes the stated and unstated customer needs or requirements).

•Quality function deployment (QFD)

Quality Function Deployment (QFD) is a structured approach to defining customer needs or

requirements and translating them into specific plans to produce products to meet those
need.
6) Designing for Manufacture and Assembly (DFMA)

DFMA is a design approach that focuses on ease of manufacture and efficiency of assembly.

By simplifying the design of a product it is possible to manufacture and assemble it more efficiently, in the
minimum time and at a lower cost.

DFMA combines two methodologies –

o Design for Manufacture (DFM):

DFM involves designing for the ease of manufacture of a product’s constituent parts.

It is concerned with selecting the most cost-effective materials and processes to be used in production, and
minimising the complexity of the manufacturing operations.

o Design for Assembly (DFA):

DFA involves design for a product’s ease of assembly.

It is concerned with reducing the product assembly cost and minimising the number of assembly operations.
7) Designing for ease of production (or for producibility or manufacturability) Specification: PDS

A product design specification (PDS) is a document that contains all the requirements, constraints
and specifications that a new product must adhere to.

It should be a clear list with detailed information outlining every aspect of the design brief and fulfil
SMART criteria (specific, measurable, achievable, realistic and testable).

Standardisation: It is the important step towards interchangeable manufacture, increased output

and higher economy.

The technique of standardization comprises :

o Determining optimal manufacturing processes

o Identifying the best possible engineering material and

o Apply techniques for the manufacture of a product and adhering to them very strictly so long as the
better standards for all these are not identified.
Simplification: It is a process of determining limited number of types and sizes
of a components or products or parts in order to achieve better quality control,
minimize waste, simplify production and, thus, reduce cost of production.

By eliminating unnecessary varieties, sizes and designs, simplification leads to

manufacture identical components or products for interchangeability and
maintenance purposes of assembly of parts.
Designing for Quality:
Robust design and Modular design

Robust Design: Product is designed so that small variations in production, assembly or use do not adversely
affect the product.

Typically results in lower cost and higher quality.

Modular Design: Products designed in easily segmented components.

Design for reliability (DFR): It is a process that ensures a product, or system, performs a specified function
within a given environment over the expected lifetime.

Design for Ergonomics: Ergonomics in product design is defined as the science of fitting a workplace to the
user's requirements to increase productivity and reduce discomfort.

Design for disassembly (DFD): It is a set of design principles that help you design products that can be easily
repaired, upgraded or recycled.

Design for mass customisation (DFMC): Delayed differentiation and modular designs are two tactics used to
makes mass customisation possible.
Other issues in product design

(a) Computer aided design (CAD)

Use of computer graphics for designing the product helps to generate a number of
alternative designs and identify the best alternative which meets the designer’s criteria.

(b) Value engineering/Value analysis

Concerned with the improvement of design and specifications at various stages of

product planning and development.
Legal , Ethical and Environmental issues in Product Design

Legal:

o Product Liability – A manufacturer is liable for any injuries or damages caused by a faulty product.

o Uniform Commercial Code- Products carry an implication of merchantability and fitness

Ethical:

o Releasing Products free of detects

Environment:

EPA (Environment Protection Act)

o Product Pollution

Designer should anticipate environmental trends and design products that are clean enough for future environmental standards.

o Process Pollution

Product designer must avoid the process that causing pollution from solvents, combustible products, wastes etc. or he may change
the processes at the early stages.

o Ease of recycling product :Can it be rec