Chapter 4|PRODUCT DESIGN

LEARNING OBJECTIVES

LEARNING
1. Understand how OBJECTIVES
companies select
goods and services.
2.
1. Identify
Define thesome
term of the reasons
production why
and operations
LEARNING OBJECTIVES
organizations
management and redesign their product.
give examples.
2. Describe
3. Identify the
thethree major functional
contributions of areas of
organizations
8. Define and interrelate
Research and Development operations
the term production andthem
(R & D)
3. management
Understand the and importance
give of Operations
examples.
to product and service design.
Management
9. Identify the three major functional areas of
4. Discuss
Describe some
4. organizations
the and methods
operations in them
designing
function
interrelate and the
products.
nature of the
10. Understand thejob the operations
importance manager
of Operations
5. Understand
5. Management how to
Classify production integrate ethics
systems.
and environmental concerns
11. Describe the operationsbetween
6. Determine differences in the
function and
manufacturing
nature
designing
of the and
products. service operations
job the operations manager and
12. between
6. Classify
Determine goods
production and services.
how tosystems.
design services.
7. Determine
13. Identify some of the current
differences betweenissues in
operations management.
manufacturing and service operations and
between goods and services.
14. Identify some of the current issues in
operations management.
Goods and Services Selection

It is said that an effective product strategy links decisions on what products

to offer with investment, market share, product life cycle and defines the breadth of
product line. In selecting products (also refer to offerings of service organizations)
the company has for its product decision objective to develop and implement a
product strategy that meets the demands of the marketplace with a competitive
advantage.

The product design plays a central role in system design. It begins by

determining the specifications for all materials, components and parts. The
functional ability and performance characteristics of the products must be specified
as well as other parameters needed to achieve the desired performance. Product
and service design development requires continual improvement efforts to ensure
that the products meet the needs of the market and can be produced efficiently.

Product Development

Ideas for new products can arise from both internal and external sources to
the firm. It may come from customers, employees and from the media. More often
new product ideas are developed through research. These research-generated ideas
will be studied and those that are technologically feasible, marketable and
compatible with organizational strategy will be chosen. These will undergo several
stages as shown in Figure 4.1. It is important that a review, feedback and
evaluation process be made for the product to succeed. There are cases when
products undergo redesign after-market testing in light of consumer reactions to
quality and price,

Factors to Consider in product design

Product selection, definition and design take place on a continuing basis in

the company. There are several factors to consider in product design. The changes
in production opportunities, the products themselves, product volume and product
mix may arise due to understanding the customer, economic change, sociological
and demographic change, technological change, political/legal change, market
practice, professional standards, suppliers or distributors.

1. Customers – customers may indicate their dissatisfaction with a particular

design whether through direct complaints to the organization or some
regulatory body or indirectly through decreased purchases of the item. Thus,
organizations often become involved in redesign to improve sales or to
respond to complaints.

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 <<<FIGURE 4.1
Product Development Cycle
Product Concepts are developed from
a variety of sources, both internal and
external to the firm. Concepts that
survive the product idea stage
progress through various stages, with
nearly constant review, feedback and
evaluation in a highly participative
environment to minimize failure.

2. Competitors – in competitive situations, organizations often strive to increase

profits and market share which then forces competitors to reevaluate their
own designs in a never-ending battle.

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 3. Government regulations – laws and regulations may require changes in
product and service design.
4. Product liability – can be strong incentive for design improvement. Product
liability means that a manufacturer is liable for any injuries or damages
caused by a faulty product because of either poor workmanship or poor
design.
5. Professional standards – performance standards should adhere with the
requirements of the profession.
6. Supplies and distributors – increase in the cost or shortage of raw materials
should also be considered.

Product Life Cycle

1. Introductory Phase – because products in the introductory phase are still

being adjusted to market preferences they may require unusual expenditures
for (1) research (2) product development (3) process modification and
enhancement and (4) supplier development.
2. Growth Phase – in the growth phase, product design has begun to stabilize
and effective forecasting of capacity requirements is necessary. Adding
capacity or enhancing existing capacity to accommodate the increase in
product demand may be necessary.
3. Maturity Phase – with product maturity comes competitors, so high-volume
innovative production may be appropriate. Improved cost control, reduction
in options and paring down of the product line may be effective or necessary
for profitability and marketability.
4. Product Decline – management may need to decide unfavorably with
products whose life cycle is at an end. Dying products are typically poor
products in which there is no need to invest additional resources and
managerial talent. Unless dying products make some unique contribution to
the firm’s reputation or its product line or can be sold with an unusually high
contribution, their production should be terminated.

Issues for Product Design

Effective system and organization structure is a must for product

development. Product development teams are deployed and manufacturability and
value engineering activities are done. There are six issues for product design that
needs review. These are (1) robust design, (2) modular design, (3) computer-aided
design (CAD), (4) computer-aided manufacturing, (5) virtual reality technology and
(6) value analysis.

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Robust Design

A Robust design refers to a design so that small variations in production or

assembly do not adversely affect the product. It can be produced to requirements
even with unfavorable conditions in the production process.

Modular Design

Products designed in easily segmented components are called modular

designs. These are designs in which parts or components of a product are
subdivided into modules that are easily interchanged or replaced. Product redesign
and production is facilitated under this type of design. Further modularity allows
customers to mix and match designs according to their preferences.

Advantages of Modular Design

1. Failures are often easier to diagnose and remedy.

2. Ease of repair and replacement
3. The faulty module is conveniently removed.
4. Purchasing and inventory become more routine.
5. Fabrication and assembly operations become more standardized.
6. Savings in training cost

Disadvantages of Modular Design

1. Decrease in variety
2. The number of possible configurations of modules is much less than the
number of possible configurations based on individual components.
3. Inability to disassemble a module in order to replace a faulty part.

Computer-Aided Design (CAD)

Computer-aided design (CAD) is the use of computers to interactively develop

and document a product. The computer can rotate images, construct various views,
zoom in on various parts and check for possible interference between parts. CAD
softwares allow three-dimensional images, present numerous design options and
facilitate changes in the design. There are even softwares that allow designers to
look at the effect of design on manufacturing of a product such as the Design for
manufacture and assembly (DFMA). Another is the 3-D object modeling an
extension of CAD which builds small prototypes. Some CAD systems have moved to
e-commerce, where they link designs to purchasing, outsourcing, manufacturing and
long-term maintenance.

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Computer-Aided Manufacturing (CAM)

Computer-aided manufacturing (CAM) refers to the use of specialized

computer programs to direct and control manufacturing equipment. When CAD
information is translated instructions for CAM, the two technologies result to
CAD/CAM.

Benefits of CAD/CAM

1. Product Quality: CAD provides an opportunity for the designer to

investigate more alternatives, potential problems and danger.
2. Shorter Design Time: Since time is money, the shorter the design
phase the lower the cost. This also allows a faster response to
market.
3. Production Cost Reduction: lower inventory cost, more efficient use of
personnel through improved scheduling and faster implementation of
design changes lower cost. Group technology as a part of CAD/CAM
further reduces cost by grouping families of parts for manufacturer.
4. Database Availability: consolidating current accurate product data so
everyone is operating from the same information results in dramatic
cost reductions.
5. New Range of Capabilities: for instance, the ability to rotate and
depict objects in three-dimensional form, to check clearances, relate
parts and attachments, to improve use of numerically controlled
machine-tools to provide new capability for manufacturing, CAD/CAM
removes substantial detail work, allowing designers to concentrate on
the conceptual and imaginative aspects of their tasks. This is a major
benefit of CAD/CAM.

Virtual Reality Technology

Virtual reality is a visual form of communication in which images substitute

for reality and typically allow the user to respond interactively. It allows faster and
less expensive design changes.

Value Analysis

Value engineering focuses on preproduction design improvements while value

analysis allows a review of successful products that takes place during the
production process. It seeks to make design changes to come up with better
product, a more economical product or a product with less environmental impact

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Designing Services

Researchers identified three basic components of services: (1) physical

facilities, processes and procedures; (2) employee’s behavior; and (3) employee’s
professional judgment. Thus, an effective balance of these components is necessary
to design a service. Services should be internally consistent and focused to meet
the needs of customers.

In most cases, customers are involved in designing and delivering services.

Heizer and Render identified four techniques or approaches to reduce costs and
enhance the service offering. These are (1) delaying customization (2) modularizing
(3) automating and (4) designing for the “moment of truth.” The moment of truth is
the moment that exemplifies, enhances or detracts from the customer’s
expectations.

Ethical and Environmentally-friendly designs

The goals for ethical, environmentally friendly designs are (1) developing safe
and environmentally sound products, (2) minimizing waste of resources, (3)
reducing environmental liabilities, (4) increasing cost-effectiveness of complying with
environmental regulations and (5) being recognized as a good corporate citizen.
Below are six guidelines for ethical and environmentally friendly designs:

1. Make products recyclable

2. Use recycled materials
3. Use less harmful ingredients
4. Use lighter components
5. Use less energy
6. Use less material

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Discussion and Review Questions

1. What are some of the factors that cause organizations to redesign their
products and services?
2. What is CAD/CAM? Describe some of the ways it can be used by a
product designer.
3. Why should product life cycle be a consideration in product design?
4. How do organizations now come up with designs for their products and
services?
5. How do you design services?
6. What are the guidelines for ethical and environmentally friendly designs?

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