Production Design & Development

What is difference between product & service?

What is difference between product & service?

● A very easy way to understand the difference between a

product/good and service is—“If you drop it on your foot, and it
does not hurt, then mostly it may be a service. In case it hurts
you, it may be mostly a product/good.”

● A product/good is any tangible offering that might satisfy the

needs or aspirations of the consumer. The anatomy of a product
can be studied along three dimensions as>>
 What is a product?

1. Core benefits: These are the basic functions and attributes

meant to be provided by a good/ product.
2. Tangible specifications: They define shape, size, appearance,
etc., of a product.
3. Augmented features: These are the additional benefits or
utilities associated with a product like after-sale service,
perceived benefits of a brand, etc.
What is a product?
What is product design?
 What is product design?

● Product design refers to the complete specifications of a product to

be manufactured, and contains the following details:
●● functions/attributes
●● weight, size, appearance
●● engineering/technical specifications
●● constituents/components/parts of the final product
What is importance of product design?
 What is importance of product design?
● Product design is normally the first step immediately after accepting the
concept of the product.
● It has a direct impact over the selection of processing equipment and
methods, plant layout and in-process material flows.
● Major part (from 40 percent to 80 percent) of the cost of a manufactured
product is determined by its product design.
● Change in product design has significant implications.
● Thus, product design affects profitability and competitiveness of an
organization.
● It is a strategic decision in nature.
 What is importance of product design?
● Caselet: 3M
What are reasons for changes in product design?
 What are reasons for changes in product design?
● Change in customer requirements
● Adding more functions/attributes
● Increasing stability
● Enhancing ease in manufacturing
● Tapping new markets or market segments
● Increasing a product’s life cycle
● Enhancing convenience to use (ergonomic considerations)
● Technological advancements and progress
● Standardization and simplification efforts in an organization.
Simplification aims at reducing the product complexity, and
standardization seeks manufacturing of standardized products and
dropping whatever is unnecessary or superfluous
 What are reasons for changes in product design?
● Improving quality
● Improving product reliability
● Maintaining technological leadership
● Reducing processing and manufacturing costs
● Gaining a competitive edge
● Sustaining competitiveness.
Design of Services

Customers Service Concept Service Package

• Desired service • Physical Items
experience ; Targeted • Psychological
customer Benefits

Performance Specifications Design specifications

• Customer requirements
• Customer expectations • Activities ; Facility needed
• Provider skills needed
• Cost and time estimates
Delivery Specifications
Service
• Schedule ; Deliverables; Location
Factors Determining the Product Design

Customers’ Production Raw Materials

Cost
Requirements Facilities to be used

Plant & Reputation of

Quality Policy
Machinery Company
Factors Influencing Product Development
● Cost
● Materials
● Customer’s requirements
● Industrial Production
● Company Identity
● Aesthetics
● Functions
● Environment
What are steps in product design/ re-design?
Steps in Design Process

Idea Feasibility Preliminary Production

Generation Study Design Design
What are steps in product design/ re-design?

Some general steps for product/service innovation are as follows:

● Idea generation
● Feasibility study
● Making product design/ re-design
● Engineering & prototype development
● Manufacturing
● Test marketing
● Improvements in the product based on feedback from test marketing,
and observations
● Sales and commercialization
Approaches to Product Development Process
● Traditional / Sequential / Stepwise/Linear Approaches or Frameworks
● Modern Approaches or Frameworks to Product Development Process :
Simultaneous/ Concurrent Engineering
Traditional / Sequential / Stepwise/Linear Approaches or
Frameworks to Product Development Process
>> Under Traditional Approach
● In the beginning, the characteristics of a product are in a state of flux,
customers’ needs are vague, or are not fully known that leads to radical
changes in the product design.
● During the initial phase, the process shows only small improvements as
there is a narrow focus on solving day-to-day operational problems
only.
● Later on, as the product design is standardized, there are only
incremental or small changes in the product design. At later stages,
there is more focus on process improvements and redesign.
Traditional Approaches to Product Development Process
Modern Approaches or Frameworks to Product Development
Process : Simultaneous/ Concurrent Engineering
● The above traditional approach is not suitable in situations
where the rate of technological change is fast, or when due to
high competitive pressures a firm wants to launch new products
in a short time, or when it has adopted an Entrepreneurial Fast
Track Experimentation Innovation mode.
● In such situations, not much time is available for development
and commercialization of a new product or processes.
Modern Approaches or Frameworks to Product Development
Process : Simultaneous/ Concurrent Engineering
● The modern era is a period of fast changes including fast
technological changes.
● The time available for development and commercialization of
products or processes is limited.
● In the simultaneous engineering or concurrent engineering
approach, the product design proceeds at the same time as
process design with continuous interaction between the two
developments, i.e., both product and process are developed and
improved at the same time.
● The continuous interaction between the product design and the
process design is shown in the Figure
Modern Approaches or Frameworks to Product Development
Process : Simultaneous/ Concurrent Engineering
Advantages of Simultaneous/ Concurrent Engineering

● Concurrent engineering provides benefits such as reduced

product development time, reduced design re-work, reduced
product development cost and improved communications.
● Companies using concurrent engineering techniques show
significant increase in overall quality; 30 to 40 per cent reduction
in project time and costs; and 60 to 80 per cent reduction in
design changes after release.
Dis Advantages/ Limitations of Simultaneous/ Concurrent Engineering

● Multi-dimensional focus—coordination and integration problems.

● High degree of creative chaos results in poor order in the
organization.
● Unwillingness on the part of top management to institutionalize
concurrent engineering.
● Maintenance of traditional functional reward systems.
● Maintenance of traditional reporting lines.
● Constitution of large teams—but members may not have been
trained in teamwork
● Unrealistic schedules with pressure to speed up development.
● More focus on computerization/mechanization rather than on
process improvement.
 Approaches for Design of Product
Old “over-the-wall” sequential
products design process
● Each function did its work
and passed it to the next
function

Improved Concurrent
Engineering process
● All functions form a design
team that develops
specifications, involves
customers early, solves
potential problems, reduces
costs, & shortens time to
market
Differences between Traditional & Modern Approaches