Planning and control Nature and purpose of the design

Design Improvement Product/service design Planning and control Nature and purpose of the design activity Products, services and the processes which produce them all have to be designed Decisions taken during the design of a product or service will have an impact on the decisions taken during the design of the process which produces those products or services, and vice versa

Design of products / services and design of processes are interrelated and should be treated together Designing the product or service Designing the process Products and services should be designed in such a way that they can be created effectively Product / service design has an impact on the process design and vice versa Processes should be designed so they can create all products and services which the operation is likely to introduce Design of the Product Design of the Process In manufacturing operations overlapping the activities of product and process design is beneficial

In most service operations the overlap between service and process design is implicit in the nature of service Process mapping symbols derived from ‘Scientific Management’ Operation (an activity that directly adds value) Inspection (a check of some sort) Transport (a movement of something) Delay (a wait, e. g. for materials) Process mapping symbols derived from Systems Analysis Beginning or end of the process Activity Input or output from the process Direction of flow Storage (deliberate storage, as opposed to a delay) Decision (exercising discretion) Manufacturing process types Process tasks Diverse/ complex

Process flow High Intermittent Project Jobbing Variety Batch Mass Continuous Low Volume High Repeated/ divided Continuous Low Specially made, every one ‘customized’ Defined start and finish: time, quality and cost objectives Many different skills have to be coordinated A project process with a small part of the process map that would describe the whole process Jobbing processes Very small quantities: ‘one-offs’, or only a few required Specially made: high variety, low repetition, ‘strangers’, every one ‘customized’ Skill requirements are usually very broad Skilled Jobber, or team, completes whole roduct Batch processes Higher volumes and lower variety than for Jobbing Standard products, repeating demand.

But can make specials Specialized, narrower skills Set-ups (changeovers) at each stage of production Mass (line) processes Higher volumes than batch Standard, repeat products (‘runners’) Low and/or narrow skills No set-ups, or almost instantaneous ones A mass process – a packing process Continuous processes Extremely high volumes and low variety: often single product Standard, repeat products (‘runners’) Highly capital-intensive and automated Few hangeovers required Difficult and expensive to start and stop the process A service shop – This health club offers some variety within a standard set of facilities and processes A mass service – This call centre can handle a very high volume of customer enquiries because it standardizes its process Source: Royal Bank of Scotland Group Deviating from the ‘natural’ diagonal on the product-process matrix has consequences for cost and flexibility Manufacturing operations process types Service operations process types None More process flexibility than is needed so high cost Project Jobbing Batch Mass Continuous

None Less process flexibility than is needed so high cost Professional service Service shop Mass service The ‘natural’ line of fit of process to volume/variety characteristics Flow (layout), technology and Job design are all influenced by process positioning Flow Unorganized Technology Little / general Jobs Varied / high discretion Volume Custom furniture maker Machine tool maker Automobile factory Predictable Specialist Routine / low discretion Petrochemical refinery Investment banking Customer service branch Bank call centre Credit card processing Customized sandwich – old process Raw materials Assembly Stored sandwiches Move to outlets sell Take payment Standard sandwich process Customer request The operation of making and selling customized sandwiches Prepare Sandwich materials and customers Assemble as required Take payment Customers ‘assembled’ to sandwiches Bread and base filling Assemble whole sandwich Use standard ‘base?

No Yes Outline process of making and selling customized sandwiches Detailed process of assembling customized sandwiches Customized sandwich – new process Assemble whole sandwich Assembly of ‘sandwich bases’ Use standard ‘base? Take ayment Fillings Bread and base filling Stored ‘bases’ Yes Customer request Assemble from standard ‘base’ No Little’s law (a really quite useful law) Throughput (TH) = Work in process (WIP) x Cycle time (CT) Cycle time = 2 minutes WIP = 10 Throughput time = ? Throughput time = 10 x 2 minutes = 20 minutes time (CT) 500 exam scripts need to be marked in 5 days (working 7 hours a day). It takes 1 hour to mark a script. How many markers are needed?

What is designed in a product or service? The understanding of the nature, use and value of the service or product A concept A package The group of ‘component’ products and services that provide those benefits defined in the concept The way in which the component products and services will be created and delivered A process The product and service design activity is a process in itself Transformed resources, . g. Technical information Market information Time information The product / service design process whose performance is measured by its Quality Speed Dependability Flexibility Cost Fully specified products and Outputs services Inputs Transforming resources, e. g.

Test and design equipment Design and technical staff The stages of product / service design Concept generation Concept screening Preliminary design Evaluation and improvement Prototyping and final design Ideas from customers formally through marketing activities Listening to customers – n 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 Broad categories of evaluation criteria for assessing concepts Feasibility – how difficult is it? What INVESTMENT, both managerial and financial, will be needed? What RETURN, in terms of benefits to the operation, will it give? Overall evaluation of the concept Criteria for screening concepts Acceptability – how worthwhile is it? Vulnerability – what could go wrong? What RISKS do we run if things go wrong?

Design involves progressively reducing the number of possibilities until the final design is reached CONCEPT Choice and evaluation ‘screens’ Large number of design options Uncertainty regarding the final design TIME One design FINAL DESIGN SPECIFICATON Certainty regarding the final design Design evaluation and improvement.