Product Design
Product Design
BSA 3-1
PRODUCT DESIGN
Product design is the process of a requirement to satisfy customers through shaping or configuration of
the resources that comprise a product. Organizations that have well-designed products or services are
more likely to realize their goals than those with poorly designed products or services. Hence,
organizations have a strategic interest in product and service design. Product or service design should be
closely tied to an organization’s strategy. Good design takes innovative ideas and makes them practical.
Good design also communicates the purpose of the service or product to its market, and brings financial
1. Translate customer wants and needs into product and service requirements. (marketing, operations)
7. Document specifications.
8. Translate product and service specifications into process specifications. (engineering, operations)
Product and service design typically had strategic implications for the success and prosperity of an
organization. Consequently, decisions in this area are some of the most fundamental that managers
must make. The main forces that initiate design or redesign are market opportunities and threats. The
factors that give rise to market opportunities and threats can be one or more changes:
• Economic (e.g., low demand, excessive warranty claims, the need to reduce costs).
• Political, liability, or legal (e.g., government changes, safety issues, new regulations).
Good design takes innovative ideas and makes them practical. Good design also communicates the
purpose of the service or product to its market, and brings financial rewards to the business. Service and
product design, therefore, can be seen as starting and ending with the customer. So the design activity
has one overriding objective: to provide products, services and processes which will satisfy the
operation’s customers. Product designers try to achieve aesthetically pleasing designs which meet or
exceed customers’ expectations. They also try to design a product which performs well and is reliable
during its lifetime. Further, they should design the product so that it can be manufactured easily and
quickly.
Concept – articulates the nature, use and value of the service or product. Developing the concept is a
crucial stage in the design of services and products because customers are buying more than just
physical and evident components; they are buying into a particular concept.
Package – multiple ‘component’ services and products that provide those benefits defined in the
concept. Some parts of the package are ‘core’ in that they are fundamental to achieving the concept and
could not be removed without destroying the nature of the service or product. Other parts are
Process – defines the way in which the component services and products will be created and delivered.
Idea Generation
Ideas for new or redesigned products or services can come from a variety of sources, including
customers, the supply chain, competitors, employees, and research. One of the strongest motivators for
new and improved products or services is competitors’ products and services. By studying a
competitor’s products or services and how the competitor operates (pricing policies, return policies,
improvements.
Research and Development (R&D) - Organized efforts to increase scientific knowledge or product
innovation.
Basic research has the objective of advancing the state of knowledge about a subject,
applications.
Designers must be careful to take into account a wide array of legal and ethical considerations.
Moreover, if there is a potential to harm the environment, then those issues also become important.
Most organizations are subject to numerous government agencies that regulate them.
Product liability is the responsibility of a manufacturer for any injuries or damages caused by a faulty
product because of poor workmanship or design. Many business firms have faced lawsuits related to
their products, including Firestone Tire & Rubber, Ford Motor Company, General Motors, tobacco
companies, and toy manufacturers. Manufacturers also are faced with the implied warranties created by
state laws under the Uniform Commercial Code, which says that products carry an implication of
merchantability and fitness; that is, a product must be usable for its intended purposes.
Ethical issues often arise in the design of products and services; it is important for managers to be aware
of these issues and for designers to adhere to ethical standards. Designers are often under pressure to
speed up the design process and to cut costs. These pressures often require them to make trade-off
• Produce designs that are consistent with the goals of the organization. For instance, if the company
has a goal of high quality, don’t cut corners to save cost, even in areas where it won’t be apparent to the
customer.
• Make health and safety a primary concern. At risk are employees who will produce goods or deliver
services, workers who will transport the products, customers who will use the products or receive the
services, and the general public, which might be endangered by the products or services.
Human Factors
Human factor issues often arise in the design of consumer products. Safety and liability are two critical
issues in many instances, and they must be carefully considered. For example, the crashworthiness of
vehicles is of much interest to consumers, insurance companies, automobile producers, and the
government. Another issue for designers to take into account is adding new features to their products
or services. Companies in certain businesses may seek a competitive edge by adding new features.
Cultural Factors
Product designers in companies that operate globally also must take into account any cultural
combined efforts of a team of designers who work in different countries and even on different
continents. Global product design can provide design outcomes that increase the marketability and
utility of a product. The diversity of an international team may yield different points of view and ideas
and information to enrich the design process. Advances in information technology have played a key
role in the viability of global product design teams by enabling team members to maintain continual
contact with each other and to instantaneously share designs and progress, and to transmit engineering
Cradle-to-Grave Assessment
It is the assessment of the environmental impact of a product or service throughout its useful life,
focusing on such factors as global warming (the amount of carbon dioxide released into the
atmosphere), smog formation, oxygen depletion, and solid waste generation. For products, cradle-to-
grave analysis takes into account impacts in every phase of a product’s life cycle, from raw material
extraction from the earth, or the growing and harvesting of plant materials, through fabrication of parts
and assembly operations, or other processes used to create products, as well as the use or consumption
of the product, and final disposal at the end of a product’s useful life. The goal of cradle-to-grave
assessment is to choose products and services that have the least environmental impact while still
This deal with products that have reached the end of their useful lives. The products include both
consumer products and business equipment. The purpose of these programs is to reduce the dumping
of products, particularly electronic equipment, in landfills or third-world countries, as has been the
common practice, or incineration, which converts materials into hazardous air and water emissions and
It refers to an examination of the function of parts and materials in an effort to reduce the cost and/or
improve the performance of a product. Typical questions that would be asked as part of the analysis
-Reuse: Remanufacturing
This refers to refurbishing used products by replacing worn-out or defective components, and reselling
the products. This can be done by the original manufacturer, or another company. Designing products
so that they can be more easily taken apart has given rise to yet another design consideration: Design
-Recycle
It means recovering materials for future use. This applies not only to manufactured parts but also to
materials used during production, such as lubricants and solvents. Companies recycle for a variety of
reasons, including Cost savings, Environment concerns and Environmental regulations. The pressure to
recycle has given rise to the term design for recycling (DFR), referring to product design that takes into
account the ability to disassemble a used product to recover the recyclable parts.
It is the succession of strategies by business management as a product goes through its life-cycle. The
conditions in which a product is sold changes over time and must be managed as it moves through its
succession of stages. Wide variations exist in the amount of time a particular product or service takes to
pass through a given phase of its life cycle: some pass through various stages in a relatively short period;
others take considerably longer. Often it is a matter of the basic need for the item and the rate of
technological change.
Strategically, companies must carefully weigh the trade-offs in getting all the bugs out versus getting a
leap on the competition, as well as getting to the market at an advantageous time. It is important to
have a reasonable forecast of initial demand so an adequate supply of product or an adequate service
capacity is in place.
Growth - Over time, design improvements and increasing demand yield higher reliability and lower
costs, leading the growth in demand. In the growth phase, it is important to obtain accurate projections
of the demand growth rate and how long that will persist, and then to ensure that capacity increases
Maturity - In the next phase, the product or service reaches maturity, and demand levels off. Few, if
any, design changes are needed. Generally, costs are low and productivity is high. An accurate forecast
of how long this phase will last before the market becomes saturated and the decline phase begins is
important.
Decline - In the decline phase, decisions must be made on whether to discontinue a product or service
and replace it with new ones or abandon the market, or to attempt to find new uses or new users for
the existing product or service. For example, duct tape and baking soda are two products that have been
employed well beyond their original uses of taping heating and cooling ducts and cooking. The
advantages of keeping existing products or services can be tremendous. The same workers can produce
the product or provide the service using much of the same equipment, the same supply chain, and
perhaps the same distribution channels. Consequently, costs tend to be very low, and additional
Degree of Standardization
products are immediately available to customers. Standardized products mean interchangeable parts,
which greatly lower the cost of production while increasing productivity and making replacement or
repair relatively easy compared with that of customized parts. Design costs are generally lower. Another
benefit of standardization is reduced time and cost to train employees and reduced time to design jobs.
Similarly, scheduling of work, inventory handling, and purchasing and accounting activities become
Lack of standardization can at times lead to serious difficulties and competitive struggles.
Standardization also has disadvantages. A major one relates to the reduction in variety. This can limit
the range of customers to whom a product or service appeals. And that creates a risk that a competitor
will introduce a better product or greater variety and realize a competitive advantage. Another
disadvantage is that a manufacturer may freeze (standardize) a design prematurely and, once the design
A strategy of producing standardized goods or services, but incorporating some degree of customization
in the final product or service. Several tactics make this possible. Companies like standardization
because it enables them to produce high volumes of relatively low-cost products, albeit products with
little variety. Customers, on the other hand, typically prefer more variety, although they like the low
cost.
Advantages
control procedures.
Disadvantages
Tactics
1. Delayed differentiation – It is a postponement tactic: the process of producing, but not quite
specifications are known. There are a number of variations of this. In the case of goods, almost
finished units might be held in inventory until customer orders are received, at which time
customized features are incorporated, according to customer requests. Once the choice is
made, the stain can be applied in a relatively short time, thus eliminating a long wait for
customers, giving the seller a competitive advantage. Similarly, various e-mail or Internet
services can be delivered to customers as standardized packages, which can then be modified
2. Modular design – Modules represent groupings of component parts into subassemblies, usually
to the point where the individual parts lose their separate identity. For mass customization,
modular design enables producers to quickly assemble products with modules to achieve a
customized configuration for an individual customer, avoiding the long customer wait that
often easier to diagnose and remedy because there are fewer pieces to investigate. Similar advantages
are found in ease of repair and replacement; the faulty module is conveniently removed and replaced
The main disadvantages of modular design stem from the decrease in variety: The number of possible
configurations of modules is much less than the number of possible configurations based on individual
module in order to replace a faulty part; the entire module must be scrapped—usually at a higher cost.
Reliability
It is a measure of the ability of a product, a part, a service, or an entire system to perform its intended
function under a prescribed set of conditions. The importance of reliability is underscored by its use by
prospective buyers in comparing alternatives and by sellers as one determinant of price. Reliability also
can have an impact on repeat sales, reflect on the product’s image, and, if it is too low, create legal
implications. Reliability is also a consideration for sustainability; the higher the reliability of a product,
the fewer the resources that will be needed to maintain it, and the less frequently it will involve the
three Rs.
3. Improve testing.
4. Use backups.
Robust Design
Design that results in products or services that can function over a broad range of conditions. The more
robust a product or service, the less likely it will fail due to a change in the environment in which it is
used or in which it is performed. Hence, the more designers can build robustness into the product or
service, the better it should hold up, resulting in a higher level of customer satisfaction. A similar
argument can be made for robust design as it pertains to the production process. Environmental factors
can have a negative effect on the quality of a product or service. The more resistant a design is to those
influences, the less likely is a negative effect. A robust-design approach would develop a product that is
Taguchi’s Approach
It is often easier to design a product that is insensitive to environmental factors, either in manufacturing
or in use, than to control the environmental factors. The central feature of Taguchi’s approach is
parameter design. This involves determining the specification settings for both the product and the
process that will result in robust design in terms of manufacturing variations, product deterioration, and
conditions during use. The Taguchi approach modifies the conventional statistical methods of
experimental design. Relying on experts to identify the variables that would be most likely to affect
important performance, the number of combinations would be dramatically reduced. Identifying the
best combination in the smaller sample might be a near-optimal combination instead of the optimal
combination. The value of this approach is its ability to achieve major advances in product or process
Degree of Newness
The degree of change affects the newness to the organization and the newness to the market. For the
organization, a low level of newness can mean a fairly quick and easy transition to producing the new
product, while a high level of newness would likely mean a slower and more difficult, and therefore
costlier, transition. For the market, a low level of newness would mean little difficulty with market
acceptance, but possibly low profit potential. Even in instances of low profit potential, organizations
might use this strategy to maintain market share. A high level of newness, on the other hand, might
mean more difficulty with acceptance, or it might mean a rapid gain in market share with a high
Feasibility analysis – entails market analysis (demand), economic analysis (development cost and
production cost, profit potential), and technical analysis (capacity requirements and availability, and the
skills needed). Also, it is necessary to answer the question, Does it fit with the mission? It requires
Product specifications – involves detailed descriptions of what is needed to meet (or exceed) customer
Process specifications – once it has been set, attention turns to specifications for the process that will be
needed to produce the product. Alternatives must be weighed in terms of cost, availability of resources,
profit potential, and quality. This involves collaboration between accounting and operations.
Prototype development – with product and process specifications complete, one (or a few) units are
made to see if there are any problems with the product or process specifications.
Design review – any necessary changes are made or the project is abandoned. Marketing, finance,
engineering, design, and operations collaborate to determine whether to proceed or abandon. Market
test. A market test is used to determine the extent of consumer acceptance. If unsuccessful, the
product returns to the design review phase. This phase is handled by marketing.
Product introduction – the new product is promoted. This phase is handled by marketing.
Follow-up evaluation – based on user feedback, changes may be made or forecasts refined. This phase
is handled by marketing.
Concurrent Engineering
It is bringing design and manufacturing engineering people together early in the design phase to
simultaneously develop the product and the processes for creating the product. More recently, this
concept has been enlarged to include manufacturing personnel (e.g., materials specialists) and
marketing and purchasing personnel in loosely integrated, cross-functional teams. This is used to
achieve a smoother transition from product design to production, and to decrease product development
Advantages
1. Manufacturing personnel are able to identify production capabilities and capacities. Very often, they
have some latitude in design in terms of selecting suitable materials and processes. Knowledge of
production capabilities can help in the selection process. In addition, cost and quality considerations can
be greatly influenced by design, and conflicts during production can be greatly reduced.
2. Design or procurement of critical tooling, some of which might have long lead times, can occur early
in the process. This can result in a major shortening of the product development process, which could be
3. The technical feasibility of a particular design or a portion of a design can be assessed early on. Again,
Potential Difficulties
1. Long-standing boundaries between design and manufacturing can be difficult to overcome. Simply
bringing a group of people together and thinking that they will be able to work together effectively is
probably naive.
2. There must be extra communication and flexibility if the process is to work, and these can be difficult
to achieve.
Computer-Aided Design (CAD)
It uses computer graphics for product design. The designer can modify an existing design or create a
new one on a monitor by means of a light pen, a keyboard, a joystick, or a similar device. Once the
design is entered into the computer, the designer can maneuver it on the screen: It can be rotated to
provide the designer with different perspectives, it can be split apart to give the designer a view of the
inside, and a portion of it can be enlarged for closer examination. The designer can obtain a printed
version of the completed design and file it electronically, making it accessible to people in the firm who
A major benefit of CAD is the increased productivity of designers. No longer is it necessary to laboriously
prepare mechanical drawings of products or parts and revise them repeatedly to correct errors or
incorporate revisions. A rough estimate is that CAD increases the productivity of designers from 3 to 10
times. A second major benefit of CAD is the creation of a database for manufacturing that can supply
needed information on product geometry and dimensions, tolerances, material specifications, and so
on. It should be noted, however, that CAD needs this database to function and that this entails a
Production Requirements
Design needs to clearly understand the capabilities of production (e.g., equipment, skills, types of
materials, schedules, technologies, special abilities). This helps in choosing designs that match
capabilities. When opportunities and capabilities do not match, management must consider the
organization’s capabilities.
Design for Assembly - focuses on reducing the number of parts in an assembly, as well as on the
Manufacturability - sometimes used when referring to the ease with which products can be fabricated
and/or assembled.
Component Commonality
Companies often have multiple products or services to offer customers. Often, these products have a
high degree of similarity of features and components. This is particularly true of product families.
Companies can realize significant benefits when a part can be used in multiple products. In addition to
the savings in design time, companies reap benefits through standard training for assembly and
installation, increased opportunities for savings by buying in bulk from suppliers, and commonality of
parts for repair, which reduces the inventory dealers and auto parts stores must carry.