Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
Chapter 4
The design of services and products
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
Design
Deliver
Direct
Develop
Operations Management
Slack et al’s model of operations management
Location, layout
and flow
Process design
Product and service design
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
In Chapter 4 – The design of products and services –Slack et. al. identify the following key questions…….
Why is good product and service design important?
What are the stages in product and service design?
Why should product and service design and process
design be considered interactively?
How should interactive design be managed?
Key operations questions
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
Example – The troubled history of the Airbus A380
What were the causes of the delays in the ‘time to market’ of the Airbus A380?
What were the effects of the delays in the ‘time to market’?
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
Products and services should be designed in
such a way that they can be created effectively
Designing the product or
service
Processes should be designed so they can create all products
and services which the operation is likely to introduce
Designing the process
Product / service design has an impact on the process design and
vice versa
The design of products/services and processes are interrelated and should be treated together
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
Why is design so important?
UK Design Council Survey…..
Design helps businesses connect strongly with their customers
90% of businesses growing rapidly say design is significant to them, only 26% of static companies say the same.
Design reduces costs by making processes more efficient. It can also reduce the time to market for new products and services.
Almost 70 per cent of companies seeing design as integral have developed new products and services in the last three years, compared to only a third of businesses overall.
Companies who were ‘effective users of design’ had financial performances 200% better than average.
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
What is designed in a product or service?
A concept the understanding of the nature, use and value of the service or product;
A packageThe group of ‘component’ products and services that provide those benefits defined in the concept;
A processthe way in which the component products and services will be created and delivered.
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
Example – Spangler, Hoover and Dyson
What was Spangler’s mistake?
What do you think makes ‘good design’ in markets such as domestic appliances?
Why do you think two major vacuum cleaner manufacturers rejected Dyson’s ideas?
How did design make Dyson a success?
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
The product / service design process whose performance is measured by its
Quality Speed Dependability Flexibility and Cost
Outputs
Fully specified products
and services
Inputs
The product and service design activity is a process in itself
Transformed resources, eg.Technical informationMarket informationTime information
Transforming resources,eg.Test and design equipmentDesign and technical staff
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
The stages of product / service design
Concept generation
Concept screening
Preliminary design
Evaluation and
improvement
Prototyping and final design
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
Concept generation……
Ideas from customers formally through Marketing activities
Listening to customers - on a day-to-day basis.
Ideas from competitor activity – For example reverse engineering
Ideas from staff – Especially those who meet customers every day.
Ideas from research and development
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
Example – The Blow Dry Bar
From a market perspective, why was the blow dry bay successful?
From an operations perspective, why is the blow dry bar successful?
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
Broad categories of evaluation criteria for assessing concepts
Feasibility -How difficult is
it?
The criteria for screening concepts
What investmentboth managerial and
financial will be needed?
What return in terms of benefits to the operation will
it give?
What risksdo we run if things
go wrong?
Acceptability -How worthwhile is
it?
Vulnerability -What could go
wrong?
Overall evaluation
of the concept
Concept screening……
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
Uncertainty regarding the final design
Certainty regarding the
final design
TIME
Design involves progressively reducing the number of possibilities until the final design is reached
CONCEPT
FINAL DESIGNSPECIFICATON
Choice and evaluation "Screens"
Large number of design options
One design
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
Example – Square watermelons
What market-related questions would you ask before producing square watermelons commercially?
What finance-related questions would you ask before producing square watermelons commercially?
What operations-related questions would you ask before producing square watermelons commercially?
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
The component structure for remote mouse
LEVEL 0 Remote mouse
LEVEL 1
LEVEL 2
LEVEL 3 Lead Plug CoverSpeaker
LeafletOuterLogoMoulding Battery housing
Mould-ing
Spring base
Button
Preliminary design……
Upper casing
Control unit
Lower casing
Packing
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- quality function deployment;- value engineering;
- Taguchi methods.
Design evaluation and improvement……
There are various ways of evaluating preliminary designs
These include:
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
A delays in the ‘Time to Market’ disproportionally delays the financial breakeven point
Delay in financial
breakeven
Delay in Time to Market
Development costsDevelopment costs of delayed project
Time
Cash Sales Revenue
Delayed Sales Revenue
Cash flow
Delayed Cash Flow
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
Sequential and simultaneous arrangement of the stages in the design activity
Third Stage in the Design Activity
Second Stage in the Design Activity
First Stage in the Design Activity
etc.
First Stage in the Design Activity
Second Stage in the Design Activity
Third Stage in the Design Activity
etc.
Communication between stages
Sequential arrangement of stages
Simultaneous arrangement of stages
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
Management activity profile
Where should the management attention be?KNOWLEDGE AQUISITION
CONCEPT INVESTIGATION
BASIC DESIGN
INITIAL TESTS
PILOT PRODUCTION
MANUFACTURING RAMP-UP
LAUNCH
TIME
Ability to influence the final design
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
Low
High
Slow Time to Market
Fast Time to Market
Sorting out problems early saves greater disruption later D
egre
e of
agr
eem
ent
over
des
ign
deci
sion
an
d ch
ange
s in
des
ign
Early stages of the total design activity
Later stages of the total design activity
Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011
INCREASING PROJECTORIENTATION
P.M.F.M. = Functional manager
= Project manager
Organization structures for the design activity
P.M.
P.M.
P.M.
F.M. F.M. F.M. F.M.
PURE FUNCTIONALORGANISATION
F.M. F.M. F.M. F.M.
P.M.
P.M.
P.M.
F.M. F.M. F.M. F.M.
F.M. F.M. F.M. F.M.
P.M.
P.M.
P.M.
PURE PROJECTORGANISATION
P.M.
P.M.
P.M.
F.M. F.M. F.M. F.M.
P.M.
P.M.
P.M.