The process of design has certain steps that include motivation, ideas for improvement, organizational

capabilities, and forecasting.

Computer-aided design (CAD) and Computer-aided manufacturing (CAM) are important tools in the
design process because they can anticipate what the design will look like, as well as allow for better
manufacturing

Product dSSesign as a verb is to create a new product to be sold by a business to its customers

Product design as a noun: the set of properties of an artifact, consisting of the discrete properties of the
form (i.e., the aesthetics of the tangible good and/or service) and the function (i.e., its capabilities)
together with the holistic properties of the integrated form and function

Product design process: the set of strategic and tactical activities, from idea generation to
commercialization, used to create a product design

Product design is sometimes confused with (and certainly overlaps with) industrial design, and has
recently become a broad term inclusive of service, software, and physical product design. Industrial
design is concerned with bringing artistic form and usability, usually associated with craft design and
ergonomics, together in order to mass-produce goods. Other aspects of product design include
engineering design, particularly when matters of functionality or utility (e.g. problem-solving) are at
issue, though such boundaries are not always clear

The product design process has experienced huge leaps in evolution over the last few years with the rise
and adoption of 3D printing

The design process follows a guideline involving three main sections: 1. Analysis 2. Concept 3. Synthesis

Analyze: In this stage, everyone in the team begins research. They gather general and specific materials
which will help to figure out how their problem might be solved. This can range from statistics,
questionnaires, and articles, among many other sources

Concept • Define: This is where the key issue of the matter is defined. The conditions of the problem
become objectives, and restraints on the situation become the parameters within which the new design
must be constructed.

Synthesis • Ideate: The designers here brainstorm different ideas, solutions for their design problem.
The ideal brainstorming session does not involve any bias or judgment, but instead builds on original
ideas. • Select: By now, the designers have narrowed down their ideas to a select few, which can be
guaranteed successes and from there they can outline their plan to make the product. • Implement: This
is where the prototypes are built, the plan outlined in the previous step is realized and the product
starts to become an actual object. • Evaluate: In the last stage, the product is tested, and from there,
improvements are made. Although this is the last stage, it does not mean that the process is over. The
finished prototype may not work as well as hoped so new ideas need to be brainstormed.

Design expression comes from the combined effect of all elements in a product.

The manufacturer is concerned with production cost; in the end, the manufacturer wants an
economically produced product.
Service design is the activity of planning and organizing people, infrastructure, communication and
material components of a service in order to improve its quality and the interaction between the service
provider and its customers.

History of Service Design In early contributions to service design (Shostack 1982; Shostack 1984), the
activity of designing service was considered to be part of the domain of marketing and management
disciplines

In 2004, the Service Design Network was launched by Köln International School of Design, Carnegie
Mellon University, Linköpings Universitet, Politecnico di Milano and Domus Academy in order to create
an international network for service design academics and professionals

Several authors (Eiglier 1979; Normann 2000; Morelli 2002) emphasize that services come to existence
at the same moment they are being provided and used.

Service design is an emerging discipline and an existing body of knowledge, which can dramatically
improve the productivity and quality of services.

The Service Designer can: o visualize, express and choreograph what other people can’t see, and
envisage solutions that do not yet exist o transform observed and interpreted needs and behaviors into
service possibilities o express and evaluate the quality of design in the language of experiences

PRODUCTIONS AND OPERATIONS MANAGEMENT is a human-centered approach that focuses on

Several authors (Eiglier 1979; Normann 2000; Morelli 2002) emphasize that services come to existence
at the same moment they are being provided and used

Product and Service Life Cycle During their useful life, many services and products go through four
stages

The Four stages are: 1. Introduction: During the first stage, the product is introduced into the market.
Proper research and forecasting should be done to ensure the product/service is adequate for a specific
market and for a specific time. It is crucial to have a proper amount of supply that can meet the
expected demand for the product/service. 2. Growth: The second stage involves the increase in demand
for the product/service. Reputation for the product grows and an accurate forecast of demand is
needed to determine the length of time the product/service will remain in the market. Enhancements
and improvements are common in this stage. 3. Maturity: This third stage deals with the product
reaching a steady demand. Few or no improvements or product changes are needed at this stage.
Forecasting should provide an estimate of how long it will be before the market dies down, causing the
product to die out. 4. Decline: The last stage involves choosing to discontinue the product/service,
replacing the product with a new product, or finding new uses for the product.

Mass customization is a strategy that some companies can use to incorporate customization while
practicing standardization.
Companies will also have to consider what their competitors are doing in order to be successful. There
are 3 ways of idea generation: supply based, competitor based, and research based. Whichever a
company chooses, they must consider who is competing against them and what else is going on in the
marketplace. Product design is key to the success of the company.

Product and service design are very important factors to customer satisfaction. Organizations need to
continually satisfy their customers to be successful in the marketplace.

The four aspects of Sustainability are: 1. Life Cycle Assessment 2. Value Analysis 3. Remanufacturing 4.
Recycling

The Kano Model includes three aspects: Basic quality, performance quality, and excitement quality.

Basic quality is the requirements placed on a product that do not lead to customer satisfaction when
present, but can lead to dissatisfaction if absent.

Performance quality is the middle ground and can either lead to satisfaction or dissatisfaction depending
on their usefulness.

Excitement quality is the notion that an unexpected feature can cause customer excitement.

Reliability is a measure of the ability of a product, a part, or service, or an entire system to perform its
intended function under a prescribed set of condition

The term "failure" is used to describe a situation in which an item does not perform as intended

reliability is the point where the incremental benefit received equals the incremental cost

Computer-aided design (CAD): the use of computer technology for design and design documentation.
Design: the creation of a plan or convention for the construction of an object, system or measurable
human interaction. Trend: a general direction in which something is developing or changing.

Product Design - Product Design Process - Analysis, Concept, Synthesis - Demand-Pull Innovation,
Invention-Push Innovation - Expressions, Considerations, Trends

Service Design - History - Concept - Characteristics – Methodology

Product and Service Design - Product and Service Life Cycle - Customer Satisfaction and Sustainability -
Reliability - Legal and Ethical Consideration

Finally, the two most useful functions of capacity planning are design capacity and effective capacity.

Design capacity refers to the maximum designed service capacity or output rate and the effective
capacity is the design capacity minus personal and other allowances

Efficiency = Actual Output/ Effective Capacity x 100% Utilization = Actual Output/ Design Capacity x
100%

What is Capacity refers to a system's potential for producing goods or delivering services over a
specified time interval. Capacity planning involves long-term and short term considerations. Long-term
considerations relate to the overall
Excess capacity arises when actual production is less than what is achievable or optimal for a firm

Effective capacity is design capacity minus personal and other allowances.

Capacity planning as a key factor in designing systems

Capacity planning is described as matching the capabilities of an organization with the predicted level of
future demand.

The capacity decision is strategic and long-term in nature

Human Factors: the tasks that are needed in certain jobs, the array of activities involved and the
training, skill, and experience required to perform a job all affect the potential and actual output

Process Factors: Quantity capability is an important determinant of capacity, but so is output quality

Product and Service Factors: The more uniform the output, the more opportunities there are for
standardization of methods and materials.

Facilities: The size and provision for expansion are key in the design of facilities

External Factors: Minimum quality and performance standards can restrict management's options for
increasing and using capacity.

Supply Chain Factors: Questions include: What impact will the changes have on suppliers, warehousing,
transportation, and distributors? If capacity will be increased, will these elements of the supply chain be
able to handle the increase? If capacity is to be decreased, what impact will the loss of business have on
these elements of the supply chain?

Operational Factors: Scheduling problems may occur when an organization has differences in equipment
capabilities among different pieces of equipment or differences in job requirements

Policy Factors: Management policy can affect capacity by allowing or not allowing capacity options such
as overtime or second or third shifts

Human Factors: the tasks that are needed in certain jobs, the array of activities involved and the
training, skill, and experience required to perform a job all affect the potential and actual output

Process Factors: Quantity capability is an important determinant of capacity, but so is output quality

Strategy Formulation An organization typically base its strategy on assumption and predictions about
long term demand patterns, technological changes, and the behavior of its competitors

The most important parts of effective capacity are process and human factors

Key Decisions of Capacity Planning • The amount of capacity needed • The timing of changes • The need
to maintain balance throughout the system • The extent of flexibility of facilities and the workforce

Capacity cushion which is an amount capacity in excess of expected demand when there is some
uncertainty about demand

The greater the degree of demand uncertainty, the greater the amount cushion needed.
Steps in the Capacity Planning Process 1. future capacity requirements 2. Evaluate existing capacity and
facilities and identify gaps 3. Identify alternatives for meeting requirements 4. Conduct financial analyses
of each alternative 5. Assess key qualitative issues for each alternative 6. Select the alternative to pursue
that will be best in the long term 7. Implement the selected alternative 8. Monitor results

Long-term vs. Short-term capacity needs Long-term relates to overall level of capacity such as facility
size, trends, and cycles.

Short-term, on the hand, relates to variations from seasonal, random, and irregular fluctuations in
demand

Three Important Factors in planning service capacity: 1. The need to be near customers Convenience for
customers is often an important aspects of services. Generally, a service must be located near customer.
2. The inability to store service Speed of the delivery, or customers waiting time become a major
concern in a service capacity planning. 3. The degree of volatility Demand volatility presents problem for
capacity planners. Demand volatility tend to be higher for services than goods, not only in timing of
demand, but also in amount of time required to the service individual customers.

Outsourcing: Make or Buy Factors to consider, • Available Capacity. If an organization has available the
equipment, necessary skills, and time, if often makes sense to produce an item of perform a service in-
house, the additional cost would be relatively small compared with those required to buy items or
subcontract services. • Expertise. If a firm lacks the expertise to do the job satisfactory buying might be
reasonable alternative. • Quality Considerations. Firm that specialize can usually offer higher quality
than an organization can attain itself. Conversely unique quality requirements or the desire to closely
monitor quality may cause an organization to perform a job itself. • The Nature of Demand. When
demand for an items is high and steady, the organization is often better off doing the work itself. • Cost.
Any cost savings achieved from buying of making must weighed against the preceding factors. Cost
savings might come from the item itself or from transportation cost savings. If there are fixed cost
associated with making an item that cannot be reallocated if the service or product outsourced, that has
to recognized in the analysis. • Risk. Outsourcing may involve certain risks. One is loss of control over
operations. Another is the need to disclosed proprietary information

Developing Capacity Alternatives,• Design Flexibility into system. Provisions for Future Expansion in the
original design.• Take Stage of Life into account. Capacity requirements are often closely linked to the
stage of the life cycle that a product or service is in. • Take a ‘Big Picture’ approach to capacity changes.
When developing capacity alternatives, it is important to consider how parts of the system interrelate. •
Prepare to deal with capacity “chunks.” No machine comes in continuous capacities. • Attempt to
smooth out capacity requirements. Unevenness in capacity requirements also can create certain
problems. • Identify the optimal operating level. o Production units typically have an ideal or optimal
level of operation in terms of unit cost of output. • Economies of Scale. If the output rate is less than the
optimal level, increasing the output rate results in decreasing average unit costs. • Diseconomies of
scale. If the output rate is more than the optimal level, increasing the output rate results in increasing
average unit costs. • Choose a strategy if expansion is involved. o Consider whether incremental
expansion or single step is more appropriate

. Cost-volume profit analysis makes several assumptions in order to be relevant including that the sales
price, fixed costs and variable cost per unit are constant
Cost-volume profit (CVP) analysis is based upon determining the breakeven point of cost and volume of
goods and can be useful for managers making short-term economic decisions

FC= Fixed Cost

VC= Total variable cost

v= variable cost per unit

TC= Total Cost

TR= Total revenue

R= Revenue per unit

Q= Quantity or Volume of output

QBEP= Break even quantity

P=Profit

• Fixed Costs (FC) – tend to remain constant regardless of output volume

• Variable Costs (VC) – vary directly with volume of output – o VC = Quantity(Q) x variable cost per unit
(v)

• Total Cost – TC = Q x v PRODUCTIONS AND OPERATIONS

• Total Revenue (TR) – TR = revenue per unit (R) x Q

• Profit (P) = TR – TC = R x Q – (FC +v x Q) = Q (R – v) – FC Q=P+FC/R-v; QBEP=FC/R-V

• Total Revenue (TR) – TR = revenue per unit (R) x Q

• Profit (P) = TR – TC = R x Q – (FC +v x Q) = Q (R – v) – FC Q=P+FC/R-v; QBEP=FC/R-V

Assumptions of Cost-Volume Analysis • One product is involved. • Everything produced can be sold. •
The variable cost per unit is the same regardless of the volume. • Fixed costs do not change with volume
changes, or they are step changes. • The revenue per unit is the same regardless of volume. • Revenue
per unit exceeds variable cost per unit.

Cash flow is the difference between cash received from sales and other sources, and cash outflow for
labor, material, overhead, and taxes

Present value is the sum, in current value, of all future cash flow of an investment proposal.

Decision Theory Represents a general approach to decision making which is suitable for a wide range of
operations management decisions, including: capacity planning product and service design product and
service design equipment selection location planning.

Analysis: A detailed examination of the elements or structure of something, typically as a basis for
discussion or interpretation

Assumption: A thing that is accepted as true or as certain to happen, without proof.

A general direction in which something is developing or changing.(Trend)

The design capacity minus personal and other allowances. (Effective Capacity)

The activity of planning and organizing people, infrastructure, communication and material components
of a service in order to improve its quality and the interaction between the service provider and its
customers. (Service Design)

What are the main sections of the design process?( Analysis, Concept, Synthesis)

Which of these are characteristics of service design?. (Tangible and intangible)

It is based upon determining the breakeven point of cost and volume of goods and can be useful for
managers making short-term economic decisions.( Cost-volume profit analysis)

The lesser the degree of demand uncertainty, the greater the amount cushion needed. (False)

What are the key decisions of Capacity Planning?. (The timing of changes/The amount of capacity
needed/The need to maintain balance throughout the system)

Service design is a profit-centered approach that focuses on customer experience and the quality of
services rendered as the key value for success.( False)

This term is used to describe a situation in which an item does not perform as intended.( Failure)

The most important concept of capacity planning is to find a medium between long term supply and
capabilities of an organization and the predicted level of long term demand. (True)

Combines ergonomics with product and business knowledge to generate ideas and concepts and
convert them into physical and usable objects or services. (Product Design)

Cash flow is the difference between cash received from sales and other sources, and cash outflow for
labor, material, overhead, and taxes.(Financial Analysis)

What is the correct formula for Utilization? (Actual Output/ Design Capacity x 100%)

Product Design combines ergonomics with product and business knowledge to generate ideas and
concepts and convert them into physical and usable objects or services. (True)

What are the stages of the Product and Service Life Cycle? (introduction, Growth, Maturity, Decline)

What is the correct formula for Efficiency?( Actual Output/ Effective Capacity x 100%)

All of the following factors are part of determining effective capacity except.(Design)

Assumption is a supposition or a system of ideas intended to explain something, especially one based on
general principles independent of the thing to be explained.(false)

This can occur through research or it can occur when the product designer comes up with a new product
design idea. (Invention-push innovation)