UNIT III DESIGNING OPERATIONS

Product Design - Criteria, Approaches. Product development process - stage-gate approach -

tools for efficient development. Process - design, strategy, types, analysis. Facility Layout –
Principles, Types, Planning tools and techniques.

 Product Design
 Criteria
 Approaches
 Product development process
 Stage-gate approach
 Tools for efficient development
 Process - design
 Strategy
 Types
 Analysis
 Facility Layout
 Principles
 Types
 Planning tools and techniques.

3.1 Product Design

The definition of product design describes the process of imagining, creating, and iterating
products that solve users' problems or address specific needs in each market. The key to
successful product design is understanding the end-user customer, the person for whom the
product is being created.

3.1.1 Definition of product design

The definition of product design describes the process of imagining, creating, and iterating
products that solve users’ problems or address specific needs in each market.

The key to successful product design is understanding the end-user customer, the person for
whom the product is being created.
Product designers attempt to solve real problems for real people by using empathy and
knowledge of their prospective customers’ habits, behaviors, frustrations, needs, and wants.

Ideally, product design’s execution is so flawless that no one notices; users can intuitively use
the product as needed because product design understood their needs and anticipated their
usage.

Good product design practices thread themselves throughout the entire product lifecycle.
Product design is essential in creating the initial user experience and product offering, from
pre-ideation user research to concept development to prototyping and usability testing.

But it doesn’t end there, as product design plays an ongoing role in refining the customer
experience and ensuring supplemental functionality and capabilities get added in a seamless,
discoverable, and non-disruptive manner. Brand consistency and evolution remain an
essential product design responsibility until the end of a product’s lifespan.

And it’s much more than just what users see on their screens. System design and process
design are critical behind-the-scenes components that eventually drive users to see and
interact with the interface design.

3.1.2 History of Product Design

Product design is an outgrowth of a very similar discipline called industrial design.

According to the Industrial Designers Society of America:

“Industrial design is the professional practice of designing products used by millions of

people worldwide every day. Industrial designers not only focus on the appearance of a
product but also on how it functions, is manufactured and ultimately the value and experience
it provides for users.”

Before the mass-production era of manufacturing, craftspeople-built products primarily by

hand. This meant there were fewer products available for sale and that they cost more. Then,
the industrialization of manufacturing allowed businesses to mass-produce products
inexpensively.
To help sell their products to the millions of people who could now afford them,
manufacturers enlisted the help of industrial designers to create products that were not only
functional but also aesthetically pleasing.

Over time, a subset of industrial design has evolved into its own category: This is because
industrial design today connotes physical products such as furniture and household
appliances.

In contrast, product design can refer to any product—even digital, virtual products such as
software apps.

3.1.3 Types of Product Design

a. UX designer

User-experience and interaction designers focus on refining a product based on how their
research into user behavior suggests people will get the most satisfaction from using the
product. UX designers aim to increase users’ happiness.

b. Graphic designer

The most artistic job within product design is creating the graphics, icons, logos, and other
visual elements of the product experience. Their purview is as broad as selecting a color
scheme to as narrow as tweaking individual pixels.

c. Motion/animation designer

If the product experience involves elements “moving”—be it slick transitions or a user-

controlled avatar—these specialists work on this extremely complicated part of the design.
They don’t create the art, but they bring it to life.

d. User research

In a large enough product design organization, they are solely focused on understanding
customers. Interviewing, running usability studies, presenting prototypes and mock-ups for
feedback, and building out demographics and personas that fall under their purview.
e. Data analyst

These designers focus on user research and other data to identify ways to improve a product’s
layout, feature set, and visual aesthetic. In other words, their primary role is a scientific one,
but they are also designers.

f. Prototyper

Prototypers are the product team members who bring the team’s ideas to a tangible state to
help the company quickly validate with users the product’s features and other characteristics.

In a company that makes physical products, prototypers will hand-craft mockups. For digital
companies, the prototyping team will develop wireframes or other virtual mock-ups.

g. Product designer

Of course, in many cases, a company will hire a person to handle several of the roles above
and others under a product designer job. Other companies will handle some of the bigger
picture, strategic elements of developing new product ideas. There, other professionals in the
organization take responsibility for things like—user research, UX design, information
architecture, etc.

3.1.4 Product Design Process

The details of the product design process will vary from company to company, but these
professionals tend to follow a similar philosophy or framework when it comes to design
thinking. As Cam Sackett explains, the design-thinking process involves several steps:

1. Empathize with people

2. Define the problem
3. Ideate a solution
4. Build a prototype
5. Test the solution

Sackett also points out that the design process doesn’t necessarily move in a linear path,
although arranged linearly. Sometimes the results learned in each step lead the team back to
repeat or refine an earlier step.
The product design process never truly stops, even once a product reaches maturity. That’s
because technology and how users interact with it keep evolving.

Take the ever-increasing importance of mobile devices. For years, mobile apps and phone-
friendly websites had limited capabilities, while the bulk of the user experience required a
full computer.

But product designers have had to keep pace with shifting usage patterns, bringing more and
more functionality to smaller screens to meet the real-world usage preferences of customers.
And with each new technological innovation, product design must determine its potential
impact on the user experience and adjust accordingly.

3.1.5 Essential requirements of a good product design

The essential requirements of a good product design are listed as follows: Product must
optimally perform its main function (task).

It must be easy to repair at a low repair cost.

It must be very reliable to use.

It must follow principles of aesthetics.

It must be a durable one.

It can be easily produced in large numbers at minimum production cost.

It must be simple to produce and use (handle).

It must also be compact.

Now let's discuss each essential requirement of a good product design.

1. Function

The product must be designed in such a way that it optimally performs the main task or
function for which it is purchased by a buyer. In other words, the product must satisfy the
needs and wants of the consumer.

For e.g. The main function of an Air Conditioner (AC) is to provide quick cooling of a room.
So, AC must be designed in such a way that it can cool a room as fast as technologically
possible. If it doesn't meet basic expectations, the consumers won't buy it.

2. Repairability

The product must be designed in such a way that it can be easily repaired whenever necessary
during a malfunction. The product repairs must be done quickly that too at a low repair cost.
Consumers usually don't buy those costly products, which are either very expensive to
repair / maintain or those who take a longer time and more money for repairing.

3. Reliability

Reliability means dependability on a product. Consumers prefer to purchase and use often
those products which perform their main function or task optimally for a longer period
without any annoying malfunctions, breakdowns or failures. In short, a product must perform
quite well and give trouble-free service for a decent amount of time. It must not need constant
repairs and/or frequent maintenances. It is so since repairs often turn costly and are very time
consuming. Reliability is crucial for consumer durables and office equipment. A reliable
product gains consumers' trust, loyalty and this creates its goodwill in the competitive market.
Therefore, reliability is an important factor to be kept in mind while designing a product.

4. Aesthetics
Aesthetics must be kept in mind while designing a product. It refers to, how the product
looks, feels, sounds, tastes or smells. That is, the product must look, feel, sound, taste or
smell very good. It must be attractive, compact, and convenient to use. Its packaging must
also be made graphically appealing and colorful. If this aspect is not considered, product will
fail in the market. This factor is very important, especially in case a product is designed for
and targeted to the young generation that is emerging with a modern mindset and current
trends.

5. Durability

Durability refers to the life of a product. A durable product performs flawlessly for a longer
period. It is a sign of a good-quality product. Consumers want their products to have a longer
life. They do not want to replace their products repeatedly. This factor is very crucial for
durable and costly products like televisions, refrigerators, cars, so on. Therefore, durability is
another important requirement that must be kept in mind while designing a product.

6. Producibility

The product must be designed in such a way that it can be produced in large quantities with
ease at a minimum production cost. The production department must be able to produce the
product easily, quickly, in ample quantities and at a low production cost. The production
process must not be very complex, and it must not require costly machines to produce the
product.

7. Simplicity

The design of the product must be very simple. The simpler a design, the easier, it is to
produce and use (handle). Simple products are also economical and reliable. The product
must have the least number of operations without affecting its functionality.

8. Compact

The product must be small; it must occupy less space, and must have lower weight. In other
words, it must be very compact. The company must try to make its products as small as
possible. Today, everything is turning smaller. Big sized cell phones are now out of fashion.
In the 1950s, computers were as huge as spacious rooms. Most products can be made
compact. Still, this cannot be done for all products. In case of televisions, it is just the
opposite.

Today people want bigger televisions. Similarly, there is a limit on small size. We cannot
have a phone which is so tiny that it requires a microscope to see its keypad.

3.1.6 Lean Product Design

Bringing innovative products to market as quickly as possible is the bedrock of Lean, Agile,
and other popular approaches to software development. But Lean Product Design goes one
step further, introducing rapid iterations to the pre-coding product development phase.

The process identifies the product’s key value proposition and differentiators, speedily
introducing a working-yet-limited product to spark the feedback loop immediately and begin
generating sales or queue up interesting prospects to establish and quantify product-market
fit.
Lean Product Design only works in organizations that embrace continuous learning and
accept that they already know everything.

Moving forward with unknowns and unanswered questions doesn’t always sit well in larger
enterprise settings. In these settings, they build, measure, and learn in the face of well-plotted
master plans. The plans stretch out years into the future.

Chunking out larger solutions into smaller, discrete products or features may calm some of
that trepidation.

It gives stakeholders a chance to see progress and watch how the continuous feedback loop
and rapid iterations result in solutions that truly meet the market needs in short order.

It may feel risky at first, but Lean Product Design is a far safer bet than building a huge
product over months or years with zero external input until it ships or moves into a beta
program.

3.1.7 Tools do Product Design

Because it covers a broad range of disciplines, the role requires several different types of
tools.
Among these are:

 Journey mapping apps

 Wireframing apps
 Graphic design apps
 Prototyping tools
 Research and data analytics tools (e.g., spreadsheets, sophisticated A/B testing apps)
 CAD (computer-aided design) software
 Project management apps (e.g., Trello)
 Product roadmap apps (e.g., Product Plan)

3.1.8 Approaches to Product Design

Innovation in product designing is the only method that will help to achieve success. There
should be something unique about designs. Just a product design process has various stages;
this includes three steps.

a. Analysis

There is one similarity between writers and designers. A writer finds it difficult to start a
paragraph.

Similarly, a designer has a tough time preparing the skeleton of his design. So how to
overcome this situation effortlessly. The answer to this is research. Every product design
process starts with research.

There are two essentials to comply with for successful research.

 1. Start by accepting the situation at hand. Find out the resources to meet the needs and
make the best out of them.

2. Once ready with all tools, now the research begins. Start by finding out the problem
which design will solve.

b. Conceptualize

So, the problem has been identified. Take notes of all the issues figured out in the first step.
Now how do solve them? UI UX design is the solution to the problem. Conceptualize the
problems into potential ideas. This can be done by breaking down each problem and
visualizing the needs associated with it. The user can be reflected in these problems. The
objectives of product design are mainly to suffice the needs of the customer. A product that
cannot serve the purpose is a failed product. That is why it is crucial to create a product that
satisfies customer.

c. Creating a Framework

Solutions to problems figured out in the previous step. The immediate step is to transform
those ideas into a blueprint of the product. This is the stage where create a prototype.

Modern Approaches to Product Design

As the times are changing, the requirements of users are also changing. This has created
many new approaches to product designing.
i. Virtual Reality and Product Designing

A new field where product designers are in demand is virtual reality. The approach to
designing anything for a VR platform is that nothing should be designed without a prototype.
Virtual reality is all about giving the user a different and innovative experience.

A blueprint of the product for VR can look beautiful; however, the experience would be
completely different. If the product cannot generate the desired experience, it fails to serve its
purpose. Therefore, so much emphasis is laid on the prototype for virtual reality products.

ii. Machine Learning and Product Designing

There is data everywhere, and a vast amount of it is generated daily. In such circumstances,
machine learning has come into the picture. Machine learning in the coming years will make
the job of product designers relatively easy. It has the power to collect the relevant data,
analyse it and look for patterns. A model of product can be created in the same way.

All the analysing part will be done by artificial intelligence. Designers need to visualize the
data and design the product. This is going to solve the problems of both designers and users.
Big brands are already adopting this for providing the best service to their customers.

If design is sustainable and user-friendly, the approach of designing doesn’t matter. The key
to a great product lies in customer satisfaction. It would be best if also tried to follow the
trends in the market. The design created should be dynamic and adaptable to different
situations.
Lastly, all the creativity of the designer is also equally important.

Other common approaches to product design

i. Designing for the customer

• Industrial design
• Voice of the customer
• Quality function deployment (QFD)

ii. Designing for Manufacture and Assembly (DFMA)

 “Over-the-wall approach”
 Concurrent engineering
 Design for Manufacturing (DFM)
 Design for Assembly (DFA)
iii. Designing for ease of production (or for producibility or
manufacturability)

 Specification
 Standardisation
 Simplification
 iv. Designing for Quality

 Designing for robustness (or robust design)

 Designing for production Modular design
 Designing for automation
 Designing for reliability
 Designing for Ergonomics
 Designing for environmental protection
 Designing for recycling
 Designing of disassembly (DFD)
 Designing for mass customisation
 Delayed differentiation and modular designs are two tactics used to make mass
customisation possible.

3.2 Product development process-Stages

Not only does the product development process help simplify a launch, but it also
encourages cross-team collaboration with teamwork and communication at the forefront of
the process.
Let’s dive into the product life cycle and define the six product phases.

1. Idea generation (Ideation)

The initial stage of the product development process begins by generating new product ideas.
This is the product innovation stage, where brainstorm product concepts based on customer
needs, concept testing, and market research.
It’s a good idea to consider the following factors when initiating a new product concept:
 Target market
 Existing products
  Functionality
 SWOT analysis
 SCAMPER method [SCAMPER, which involves substituting, combining, adapting,
modifying, putting to another use, eliminating, or rearranging]
2. Product definition
It’s time to define the product. This is also referred to as scoping or concept development and
focuses on refining the product strategy.
During this stage, it’s important to define specifics including:
 Business analysis:
A business analysis consists of mapping out distribution strategy, ecommerce strategy, and a
more in-depth competitor analysis. The purpose of this step is to begin building a clearly
defined product roadmap.
 Value proposition:
The value proposition is what problem the product is solving. Consider how it differs from
other products in the market. This value can be useful for market research and for developing
your marketing strategy.
 Success metrics:
It’s essential to clarify success metrics early so you can evaluate and measure success once
the product is launched. Are there key metrics you want to look out for? These could be
basic KPIs like average order value, or something more specific like custom set goals
relevant to organization.
 Marketing strategy:
Once identified value proposition and success metrics, begin brainstorming a marketing
strategy that fits needs. Consider which channels to promote product on—such as social
media or a blog post.
While this strategy may need to be revised depending on the finished product, it’s a good idea
to think about this when defining product to begin planning ahead of time.
Once these ideas have been defined, it’s time to begin building minimum viable product
(MVP) with initial prototyping.
3. Prototyping
During the prototyping stage, team will intensively research and document the product by
creating a more detailed business plan and constructing the product.
These early-stage prototypes might be as simple as a drawing, or a more complex computer
render of the initial design. These prototypes help to identify areas of risk before create the
product.
During the prototyping phase, it will work on specifics like:
 Feasibility analysis:
The next step in the process is to evaluate product strategy based on feasibility. Determine if
the workload and estimated timeline are possible to achieve. If not, adjust dates accordingly
and request help from additional stakeholders.
 Market risk research:
It’s important to analyze any potential risks associated with the production of product before
it’s physically created. This will prevent the product launch from being derailed later. It will
also ensure communicate risks to the team by documenting them in a risk register.
 Development strategy:
Next, begin working through development plan. In other words, know-how be assigning tasks
and the timeline of these tasks. One way plan tasks and estimate timeline is by using
the critical path method.
 MVP: [Minimum Viable Product ]
The outcome of the prototyping stage is a minimum viable product. Think of MVP as a
product that has the features necessary to go to launch with and nothing above what’s
necessary for it to function.
For example, an MVP bike would include a frame, wheels, and a seat, but wouldn’t contain a
basket or bell. Creating an MVP can help team execute the product launch quicker than
building all the desired features, which can drag launch timelines out. Desired features can be
added down the road when bandwidth is available.
Now it’s time to begin designing the product for market launch.
4. Initial design
During the initial design phase, project stakeholders work together to produce a mock-up of
the product based on the MVP prototype. The design should be created with the target
audience in mind and complement the key functions of your product.
A successful product design may take several iterations to get just right and may involve
communicating with distributors in order to source necessary materials.
To produce the initial design:
 Source materials:
Sourcing materials plays an important role in designing the initial mock-up. This may entail
working with various vendors and ordering materials. Since materials can come from various
places, document material use in a shared space to reference later if needed.
 Connect with stakeholders:
It’s important to keep tight communication during the design phase to verify initial design is
on the right track. Share weekly or daily progress reports to share updates and get approvals
as needed.
 Receive initial feedback:
When the design is complete, ask senior management and project stakeholders for initial
feedback. The product design as needed until the final design is ready to be developed and
implemented.
Once the design is approved and ready to be handed off, move onto the validation phase for
final testing before launching the product.
5. Validation and testing
To go live with a new product, first need to validate and test it. This ensures that every part of
the product—from development to marketing—is working effectively before it’s released to
the public.
To ensure the quality of product, complete the following:
 Concept development and testing:
This could involve software development or the physical production of the initial prototype.
Test functionality by enlisting the help of team members and beta testers to quality assure the
development.
 Front-end testing:
During this stage, test the front-end functionality for risks with development code or
consumer-facing errors. This includes checking the ecommerce functionality and ensuring
it’s stable for launch.
 Test marketing:
Before begin producing final product, test marketing plan for functionality and errors. This is
also a time to ensure that all campaigns are set up correctly and ready to launch.
Once initial testing is complete, ready to begin producing the final product concept and
launch it to customer base.
6. Commercialization
Now it’s time to commercialize concept, which involves launching product and implementing
it on website.
By now, finalized the design and quality tested development and marketing strategy.
 Product development
 Ecommerce implementation

3.2.1 Stage Gate Process

The Stage Gate Process, also known as the Phase Gate Process, is a technique used by
project managers to assess the viability of developing a new product and improving a process
or business change.

It is a phased approach by which is divided by different gates or decision points to analyze

the business case, resources, risks, and forecast to determine the best course of action.

It is important to know What is a Phase Gate Process, as the different stages of each gate
include decision makers, such as managers, board members or a steering committee.

3.2.2 Steps Involved in the Stage Gate Process

The name Stage-Gate or Phase-Gate explains the way the technique works. It is a
combination of different steps, where the ideas must go through various hoops for
assessment, known as gates.

Let’s take a closer look at the entire process the Stage Gate Process provides and how it
benefits project managers and decision makers to find the best possible option to proceed
forward.

1. Stage Gate Process: The Traditional Phase Gate Process

The traditional Stage-Gate Process or Phase Gate Process has five basic steps after the
discovery, or the ideation process is completed. These include scoping, building a business
case, development, testing, and validation, followed by launch.
a. Idea Generation — Discovery (Ideation)

The discovery or ideation process involves finding an idea to pursue. This step is also known
as the Idea Generation phase. This can include various stages based on the methods a
company might employ in search of new ideas and improved processes to implement. There
might be inter-departmental brainstorming, market research, feedback from customers,
suppliers, product teams, etc.

b. Scoping

Scoping is the first phase of the Stage-Gate Process, where the viability of the product is
analyzed based on various factors. These might include demand for the product in the market,
threats from competitors, market and economic conditions, the strengths and weaknesses of
the product, etc. This might just be the right time for companies to resort to tools such as
a SWOT or PESTEL analysis.

c. Build Business Case and Plan

Once the product passes through the first step, it’s time to build a business case, project plan,
and feasibility review. This is the last phase for concept development, as the following stages
include development, testing, and launch.

This phase is further divided into four steps since this is a complex phase that requires
carefully considering all aspects of the initiative to avoid any pitfalls later. These four phases
include product definition and analysis, followed by the development of the business case and
project plan, and finally, the feasibility review.

d. Development

The development phase of the Stage-Gate Process uses the plans from the preceding steps to
execute the plan that has already been fleshed out. Since it has been determined till this phase
that the product is viable, has been defined and analysed, the business case and plan have
been completed and deemed feasible for development.

The development stage might include some initial design and development, tests, and
eventually a prototype. The marketing plans are also set to proceed and must align with the
goals already defined for the initiative. The project timeline is reviewed during development
to ensure the project is on track. Before the next phase, a prototype will already be prepared,
which is now ready for extensive testing.

e. Testing and Validation

This phase of the Stage-Gate Process validates the product. The product itself is evaluated
and the processes involved, customer acceptance, and financial aspects tied to the project.
The testing phase requires near, field, and market testing.

To emphasize the importance of this phase, we can take the example of Microsoft, which
laid off its almost entire testing team for Windows, as was revealed by former employee Jerry
Berg. The change in the testing process resulted in significant bugs in Windows 10 that have
haunted Microsoft since the product’s launch. This can be a significant failure for the testing
and validation process.

f. Launch

After passing through all the principal gates, the product is launched. The product developer
must have a marketing strategy to garner customer interest and attract demand for the
product.
The launch also requires several other careful considerations, including the volume to be
produced in anticipation of the demand of the product, modes of delivery, resolution of
customer complaints, etc.

It’s standard for software development companies to anticipate bugs and roll out fixes after
receiving customer feedback and complaints regarding software issues.

Many operating system developers often prioritize support for enterprise users compared to
common users. In contrast, hotfixes are often quickly rolled out, particularly after significant
bugs are identified for a product launch.

A few years ago, this might not have been as critical as it is now, in the wake of various
hardware and software variables to consider when launching a product as big as an operating
system.

All major OS developers such as Apple and Microsoft have been criticized in recent years for
their inability to cope with bugs faced by users shortly after a product launch, from the
harrowing ordeals Windows 10 customers had to face to the dysfunctional Apple maps.

2. Gates: Assessment of the Quality of an Idea

A closer look at gates during a Stage Gate Process includes various points, elements, and
possible results. The assessment of the quality of an idea includes assessing different points.

a. Quality of execution

The quality of execution in a Phase Gate Process checks the quality of the execution of the
previous step.

b. Business Rationale

The business rationale is the assessment of the viability of the project. To determine whether
the project can be fruitful to achieve desired goals. This critical point of consideration is far
more complex than it sounds. If a project isn’t deemed rational due to its lack of promise or
excessive resource consumption, it might just find itself before a grinder.

c. Action Plan
The action plan must be assessed to determine if the resources required for the product can be
provided and if the project’s implementation can be soundly managed. Are expectations too
unrealistic or need to be addressed? Is there a need for budget cuts or an increase in available
resources? The action plan’s viability is just as important as the development of the product.

3. Structure of Gates

The structure of the gates in a Phase gate Process is simple, inputs, criteria, and outputs.

a. Inputs

Inputs consist of the deliverables and documentation that need to be provided by the project
manager and his team.

b. Criteria

These are the criteria to judge the metrics and quality of inputs and evaluate and validate key
variables.

c. Outputs

Outputs provide the result for each gate. Whether a product is to be developed, killed off, or
held for the time being are the type of outputs that can occur. The possible outputs can
include go, kill, hold, recycle, and conditional go.

4. Possible Results Leading from a Gate

A project under evaluation can have multiple results. When products are going through
various gates, they can result in five of the below-mentioned outcomes.

1. Go: The project is viable enough to be pursued.

2. Kill: The project is shut down as it’s not feasible to pursue it.

3. Hold: The project is halted for the time being due to some reason and might be continued
further.

4. Recycle: The project can be developed further after a few adjustments.

5. Conditional go: The project is allowed to proceed provided it meets certain conditions,
such as the result of a recycled product.

3.2.3 Advantages and Disadvantages of Stage Gate Product Development

Advantages

There are several advantages for project managers to use the Stage-Gate Process to find the
most promising products and let go of those that don’t appear to be worth investing resources
in.

i. Identification of Problems

The Stage-Gate Process can help identify problems using a structured approach. Each gate
can help understand whether product development is on the right track.

The process provides a roadmap for identifying and mitigating issues from the feasibility of a
product to its development, testing, validation, and launch. Sometimes, the problem might be
the product itself, which needs to be killed off, which the process accounts for.

ii. Assessment of Progress

Even when a product is approved and deemed viable, development to launch is a complex
process that requires constant assessment and possible course correction. The Stage-Gate
Process provides a mechanism to do just that.

iii. Identification of Poor Projects

The tight scrutiny of a project under the Stage-Gate Process can help identify projects that
aren’t promising and to ensure they don’t make it to the development or launch phase.

iv. Helps Reduce Complexity

While the various facets of the Stage gate Process require complex calculations, the structure
itself reduces complexity to some extent. This can help gather the scattered pieces associated
with ideation and streamline them using a structured model to assess the project’s feasibility.

Disadvantages
Project managers need to weigh both the advantages and disadvantages of an approach before
employing it. Some models are suitable for certain organizations, whereas others might not
be willing or benefit from them.

i. Might Limit Innovation and Creativity

Software development is one of the most common product examples where the Phase Gate
Process might be employed. However, developing a product-like software can be complex
and require a lot of creativity.

While small and medium-size companies might not have enough funds to cater to the needs
of ideas deemed resource-intensive, companies as big as Apple have thrived on investing in
new and innovative ideas that brought us the iPod, iPad, and the revolutionary iPhone.

The Stage-Gate Process can limit innovation and creativity at times, in favor of saving
resources or miscalculated consumer expectations.

ii. Overly Structured Process

The Stage-Gate Process might appear overly structured for companies running on a small
budget. The process can be time-consuming, lead to resources diverted from essential tasks,
and be challenging to implement.

iii. Oversimplification of Projects

Not all products or projects might be suitable to be placed in neat little boxes, as the Stage-
Gate Process does. The variables for some products can be far too complex to follow an
approach like this, which might appear as an oversimplification of the process.

iv. Some Projects Might be Incorrectly Labelled as Poor

Would the Stage-Gate process have resulted in Amazon’s retail store as a viable product?
Investors were often concerned about Bezos’s approach, as Amazon consistently lost money
as a public company for many years before it became the retail giant it is today.

3.2.4 Stage gate approach

The stage-gate approach is a technique used in product development to manage the
movement from one phase to the next. Each phase, or "stage", of the project, is separated by a
figurative "gate" that prevents from progressing onto the next milestone without sufficient
pause for thought.

3.2.5 Tool for efficient development

A product is a thing created by the effort of a person or company that is offered for sale. This
definition of a product also encompasses concepts, designs, drawings, patents, and any
information required for its development.

The term “product development” refers to the process of generating this information and
making it available to consumers so they can purchase our creations. The result comes in a
product, which is physical or non-physical.

Five main tools are used during this development process: sketches, technical drawings,
prototypes, mock-ups, and models. Each one has specific purposes within the sequence that
leads to success. Doing an effective job with each of them allows for a product to be what the
customer wants while maintaining good profitability margins.

i. Sketches

Sketches are generally done by hand on paper or whiteboards. They make initial concepts
visible and presentable. this is before moving towards executing more expensive elaborative
steps.

All existing ideas are presented here at any stage during development. Sketches allow
exploring creative process, and hence, new ideas for improvements can arise.

Once you make a sketch, present it to the client and ask for feedback. From their point of
view, presentable sketches are helpful. Clients don’t understand code. Designers and
developers might require additional details to work with.

Therefore, presenting your sketched concept lets them absorb the information better than just
explaining its functionality.
Sketches are also great to test if an idea will work in real life. With tools like Sketch Mirror,
those sketches as an interactive prototype on any device or as a demo video.

This helps to continuously validate ideas before fleshing them out into high-fidelity mock-
ups. Mock-ups require more effort from both designer and developer.

ii. Technical drawings

These are used after sketches are developed and optimized. This tool is used to communicate
ideas and requirements with other members of the product development team and external
suppliers.

Technical drawings must contain all necessary information about a concept before moving
towards production.

This is an important step because production without the necessary information means higher
development costs, sub-optimal quality of the final product, and higher material costs.

The main purpose of technical drawings is to represent all essential elements in the
development process.

Technical drawings contain plan views, sectional views, exploded views, orthographic
projections, or any combination of these views to convey depth and dimensional relationships
required by a design solution.

c. Prototypes

The purpose of prototypes is to ensure that the product works as intended by simulating its
most important features.

In essence, they allow for changes before the final design is produced. Prototypes are often
created based on technical drawings since they already contain most of the required
information. This step is also very useful for marketing purposes since a physical product
enhances the customer experience.
In addition, the earlier prototypes are created in the design process, the more likely it is that
additional features or changes are implemented. When creating a prototype create many
different versions of the product and test them extensively to see which one works best. Take
an existing product and adapt it to fit your needs.

d. Create Different Versions

Creating variants of the same product is usually better for projects at an earlier stage in the
development process. It is unnecessary to start from scratch a good idea about what works
and what doesn’t.

Also, since so many variables are involved when making a new product, it’s very difficult to
predict how everything will work out without trying it out first-hand.

To create prototype, use whatever materials are available or affordable. Using simple
construction materials lets design is feasible before investing too much time into something
that might not work as intended.

Don’t forget that prototypes are representations of what want to develop further. They are not
perfect. There are always some changes. So, if invest a lot of time and money trying to get all
of the details right from the start, might not have enough resources available to make changes
when necessary.

The whole point of creating a prototype is to test it out. It’s easier and more cost-efficient to
find out what works well with product before everything has been created.

Once design is complete, spend additional time on anything that didn’t work as expected.
While creating physical prototypes may seem like an expensive process, it can save
significant amounts of time and money in the long run if done correctly.

e. Mock-ups

Mock-ups are used as an extension of prototypes for marketing purposes. Their purpose is to
provide our customers with a feel for the final product or visualize aspects that cannot easily
be reproduced using a prototype.
Mock-ups are usually done on computer-aided design (CAD) software programs. Due to
safety concerns or practical reasons, they are very useful when presented in large events
where people can’t touch or hold them.

Once again, these tools make it possible for new ideas and concepts to arise before
production starts.

f. Models

These are like prototypes, but they allow more freedom regarding changes since they must
meet the market’s reality and are more expensive. They are used for marketing purposes or
presentations at conventions, congresses, or any other type of gathering where this type of
tool is necessary. Each one has its purpose within the sequence that leads to success.

g. Takeaway

Product development is an important step in bringing a new product to the market. By

understanding the different available tools, the most informed decision about which tool will
work best for product.

The tools here are essential for product development success. Therefore, it is important to
understand the different product development tools and how they are used to create a
successful product.

3.3 Process design

Process design is at the heart of operations management (OM). It is the process of creating
and improving systems that convert inputs into outputs.

Process design involves understanding how work is done within an organisation and then
designing and implementing ways to improve it.

There are several types of process designs, but all share some standard features. Process
designs must consider the resources required to complete the process, the desired output of
the process, and any constraints on the process. In addition, process designs must be flexible
enough to accommodate changes in inputs or outputs.
The objective of process design is to create a system that is efficient and effective. Efficiency
means that the process uses as few resources as possible to produce the desired output.
Effectiveness means that the process produces the desired output.

3.3.1 Significance in Operations Management

Operations management is a process of designing, executing, and monitoring the systems that
create and deliver goods and services. Simply put, it is the management of resources and
processes necessary to produce goods and services. It is fundamental to operations
management because it involves creating and improving production processes.

It is essential for several reasons.

First, an effective process design can improve production efficiency and help reduce costs.

Second, a well-designed process can enhance the quality of the final product or service.

Finally, an efficient approach can help to reduce lead times and increase customer
satisfaction.

3.3.2 Process Design Planning

Process design planning is the process of creating a plan for the production process. The
process designer must consider many factors when creating the plan, such as the product
type, the materials needed, the equipment available, and the workforce.

The goal of process design planning is to create a process that is efficient and effective in
producing the desired product.
3.3.4 Steps in process design

The following steps are involved in process design:

a. Determining The Requirement:

The first step is to assess the requirement of process design. The process designer must
clearly understand the product that needs to be produced, the materials required, the
equipment available, and the workforce.

b. Creating The Plan:

Once the requirements are determined, the process designer can create a plan for the
production process. The plan must be completed in a way that is efficient and effective in
producing the desired product.

c. Building Team:

The process designer must build a team of experts who can help with the implementation of
the process design. The team should be able to provide input and feedback on the process
design.

d. Implementing The Plan:

Once the process design is complete, the process designer must implement the plan. This
includes setting up the production process, testing the process, and making any necessary
adjustments.

e. Monitoring The Process:

The process designer must monitor the process to ensure that it is running smoothly and
effectively. The process designer should make changes to the process as needed to improve
its efficiency and effectiveness.

f. Audit:
Audit is a crucial process in process design. The process designer must audit the process to
ensure that it meets the requirements and is running effectively. The audit should be
conducted regularly to ensure that the process is running smoothly.

3.3.5 Objectives of Process Design

The process design objectives are to develop a process that will produce a product or service
that meets the customer’s requirements. The process must produce the product or service at
the required rate and quality and at an affordable cost. In addition, the process must be safe,
reliable, and easy to operate and maintain.

1. Prioritise Better Outcomes

It is essential to normalise the process and design around the customer. This means that
instead of designing the process and then testing to see if the customer is satisfied, the
process should be designed with the customer in mind from the outset. It will help ensure that
the operation can meet their needs and expectations.

One way of doing this is to map out the process from start to finish, considering all the
different steps involved. This will identify areas where the process could be improved and
will also allow to see where there may be potential bottlenecks.

2. Improve efficiency
Another essential objective of process design is to improve the efficiency of the process. This
can be done by reducing the amount of time that is required to complete each task or by
reducing the number of resources that are needed.

The process should be designed in such a way that it is easy to operate and maintain. This
will minimise the time required to train new staff and will also help to reduce the number of
errors that are made.

Finally, the process should be designed to be as flexible as possible. This will allow it to be
easily adapted to meet the changing needs of the customer.

3. Dodge The Disorder

One of the main objectives of process design is to avoid disorder which can be achieved by
ensuring that the process is well organised and clearly defined.

It is also essential to ensure the process is simple and easy to understand. This will help to
prevent errors from being made and will also make it easier to train new staff.

In addition, the process should be designed to be as robust as possible. This will help to
ensure that it can withstand the rigours of production and will also help to prevent it from
breaking down.

4. Ensure Accountability

Another essential objective of process design is to ensure accountability. This means that
each step in the process should be clearly defined and that there should be a transparent chain
of responsibility.

This will help to ensure that each stage in the process is carried out correctly and will also
help to prevent mistakes from being made.

In addition, this will help to ensure that each stage in the process is adequately monitored to
ensure problems are dealt with early.

5. Simplify Collaboration
Collaboration is when people work together to accomplish some common goals. The process
of process design should be such that it facilitates cooperation and collaboration among the
different stakeholders.

This will help to ensure that the process can meet the needs of all the different parties
involved and will also help to prevent misunderstandings from occurring. In addition, this
will help ensure that the process can run smoothly and that any problems that arise are
quickly dealt with.

3.3.6 Challenges Involved in process design

 Uncertainty:

Many process designs are put together without a clear understanding of the product, process,
or customer.

 In complexity:

The process design may be too complex for the resources available.

 Inexperience:

The process designer may not have enough experience in process design.

 Lack of tools:
The process designer may not have access to the right tools or resources.

 Time constraints:

The process design may be constrained by time, budget, or other resources.

Despite these challenges, process design is a critical part of operations management. A well-
designed process can improve efficiency, quality, and customer satisfaction. A poorly
designed process can lead to waste, defects, and customer dissatisfaction.

3.3.7 Essentials of process design

An organisation’s process design is essential to its operations management’s success. For

this, it is imperative to consider the following:

 It should be able to accommodate the current and future needs of the

organisation:

This means that the process must be designed to be flexible enough to handle changing
demand, technology, etc.

 It should be flexible and scalable:

The process should be designed so that it can be easily scaled according to the organisation’s
needs.

 It should be cost-effective:

The process must be designed considering the costs involved in its implementation and
operation. There should be a balance between the process’s costs and benefits.

 It should be efficient and effective:

It is essential to design an efficient and effective process. An efficient process uses the
minimum resources to produce the desired result. An effective process produces the desired
output.

 It should be safe and reliable:

The process must be designed keeping in mind the safety of the employees and the reliability
of the process. The process should be such that it minimises the chances of errors and
accidents.

 It should be easy to use and understand:

Easy comprehension is the most critical aspect of any process design. The process must be
designed in such a way that it is easy to understand and use. Without any ambiguity in the
process, the employees should quickly follow the process.

Thus, these are some of the things to consider while designing a process. It is essential to
consider factors to ensure the success of the process and the organisation.

3.3.8 Consequences of Poor Process Design

Several consequences can result from poor process design.

 It can lead to inefficiency, waste, and errors.

 It can also lead to disgruntled employees and customers.

 In the worst case, it can even lead to safety issues.

There are ways to avoid these consequences. By taking the time to design process correctly,
ensure that it runs smoothly and efficiently.

It will save money and time in the long run and will keep employees and customers happy.

3.3.9 Process Strategy

Process strategy is the documentation and establishment of the processes that an organization
puts in place to achieve its goals.

Several processes could run on autopilot, removing the need for in-the-moment decisions,
escalation to management, and in some cases human involvement altogether.

Process Strategy can be seen throughout every department in a successful organization,

whether it be sales, production, operations management, customer service, or retention.
3.3.10 Concept of Process Strategy

A process involves the use of an organization’s resources to provide something of value. No

service can be provided, and no product can be made without a process, and no process can
exist without at least one service or product. One recurring question in managing processes
supply chain processes Business processes that have external customers or suppliers is
deciding how to provide services or make products. Many different choices are available in
selecting human resources, equipment, outsourced services, materials, workflows, and
methods that transform inputs into outputs.

Another choice is which processes are to be done in-house, and which processes are to be
outsourced—that is, done outside the firm and purchased as materials and services.
Supplement A, “Decision Making Models,” also introduces make-or-buy break-even.
Process decisions directly affect the process itself and indirectly the services and the products
that it provides. Whether dealing with processes for offices, service providers, or
manufacturers, operations managers must consider four common process decisions. These
four decisions are best understood at the process or sub-process level, rather than at the firm
level.

 Process structure determines the process type relative to the kinds of resources
needed, how resources are partitioned between them, and their key
characteristics. A layout, which is the physical arrangement of operations
created from the various processes, puts these decisions into tangible form.
 Customer involvement reflects the ways in which customers become part of
the process and the extent of their participation.
 Resource flexibility is the ease with which employees and equipment can
handle a wide variety of products, output levels, duties, and functions.
 Capital intensity is the mix of equipment and human skills in a process. The
greater the relative cost of equipment, the greater is the capital intensity.
Examples of Process Strategy

Sales

Consider what sales team does when it receives a lead. Do reps contact the potential customer
immediately? Is it by phone? Is it by email? Once made a connection, do they ask questions
to understand the potential customer’s needs? While each salesperson may handle
conversations a bit differently, a uniform process can improve their performance.

Typical sales process usually includes five to seven steps — those are usually prospecting,
preparation, approach, presentation, handling objections, closing, and follow-up.

A documented process will make life considerably easier and more efficient for sales org.

Restaurant Industry

Let’s look at a production scenario that probably all found ourselves in — a fast-casual
restaurant like Chipotle or Blaze Pizza.

Customer Service

When it comes to customer service, a strong process strategy makes for happy customers.
When the process is done right, a customer calls in with an issue, is quickly directed to the
right department, and sees their issue resolved in a timely fashion.

A poor process strategy in customer service can lead to an angry ex-customer who was
transferred from one department to another and forced to repeat their problem for each new
associate until they finally gave up and decided to take their business elsewhere.
A process-focused company will take the time to find the cracks in their organization and
determine what can be done to make every activity they engage in smoother and more
efficient. These are the companies that will beat out their competition and create customer
and employee loyalty.

3.3.10 Benefits of Process Strategy

When it comes to operations management, an organization’s focus must be on the most

efficient way to produce products and deliver services. Its concern is with every step of
development from conceptualization to delivery.

The benefits include:

 Improved Efficiency
Having a solid process strategy will help employees complete their jobs in less time and with
better results. Having processes laid out makes everything from product creation to service
delivery run like clockwork.
 Decreased Cost
When your processes are not yet dialled in, time and materials are often wasted. Once got a
steady process strategy for all employees to follow, the cost to produce a product or provide a
service actually decreases leaving more of a profit margin.
 Increased Output
A process strategy provides the opportunity for increase production to create more of
whatever it is make, spending less time on each step of service provided. As less time is
needed to create a deliverable, more deliverables can be created.
 Consistent Quality
Without a process strategy, quality is up to the whim of an individual employee and can vary
greatly from one person to the next. But customers are expecting to see the same quality
every time — no matter who is creating or providing for them. Creating a "no-brainer"
process strategy takes the guesswork and individual differences out of production.

Regardless industry or offering, process strategy is a way to increase profits while making
employees and customers happier. It might be tedious and labour-intensive to devise and
document processes, but the time spent is well worth it in the long run.
Keep in mind that process strategy is ongoing. Consistently re-evaluate process and
determine if changes need to be made. No process is set in stone, and necessary tweaks will
become evident the more put these processes into place. But this is a sign of success
organization is getting better every step of the way.

3.3.11 Types of process strategies:

a. Project process

The project process suits large, single, and unique products with low demand, non-routine
work, and a high investment of resources or budget constraints.

Examples include new product development and film production.

b. Job-shop process

Job-shop is used for custom items with intermittent and distinctive needs for each product
since it requires unique products and is produced in low volume or sporadically.

For example, the manufacturing of custom-designed goods or operations in an office of a

medical practitioner.

c. Batch process

The batch process is best for a moderate variety of products in groups or batches.

Examples include credit card bills and paint manufacturing.

d. Repetitive process

Repetitive is between the product and process focus and suitable for limited variety, but a
high volume of standardized products is needed. It can use modules (or components)
previously manufactured or prepared. The goal is to produce at low unit cost, high efficiency,
and high volume.

Examples include automobile assembly lines, production of computers, television sets, car
washes, and fast-food restaurants.

e. Continuous flow process

The continuous flow is product-focused and suitable for homogeneous products. Products are
high-volume, low variety. It is also highly automated, often operates 24 hours a day, and the
entire plant is devoted to a single, highly standardized product.
Examples are beer, oil, chemicals, steel, paper rolls, electricity, and sugar.

f. Mass customization process

It is ideally suited for goods requiring customization as well as high speed, volume, cost, or
quality of repetitive or continuous flow process setup.

For example, computer companies produce customized computers at mass production prices.

3.3.12 Process analysis

Process analysis is the exercise of analyzing processes to identify opportunities to improve

the way they operate. Using process analysis, companies can evaluate their business
processes and pinpoint what is and isn’t working within their operations.

Definition:

Process Analysis can be understood as the rational breakdown of the production process into
different phases, that turns input into output. It refers to the full-fledged analysis of the
business process, which incorporates a series of logically linked routine activities, that uses
the resources of the organization, to transform an object, with the aim of achieving and
maintaining the process excellence.

3.3.13 Benefits of process analysis

Through process analysis, companies can reengineer processes with digital technology, tools,
and personnel, to simplify how they work with lower cost of ownership.

Process analysis can also be used to identify issues across the organization, as well as to
uncover opportunities for improving operational efficiency, customer service, and customer
experience, including where intelligent process automation (IPA) can be applied.

3.3.14 Objectives of Process analysis

1. Identify the factors that make it difficult to understand the process.

2. Ascertain completeness of the process.

3. Remove bottlenecks

4. Find redundancies

5. Ascertain the allocation of resources

6. Check out process time

Understanding, Quality and Efficiency are the three basic criterion, through which one can
analyse the process and determine the areas that require change.

3.3.15 Steps Involved in Process Analysis

 Step 1 Interview major participants of the process:

Discuss the participants about what they do, why they do and how they do it. Identify the
information and inputs required by the workers to perform the task assigned to them.
Research about the source of input and outputs of each task.
  Step 2 Carry out group discussion:

Group interview and brainstorming session are conducted, with the aim of generating ideas,
validating and refining the information collected, at the first step.

 Step 3 Identify bottlenecks and redundancies:

Find out the bottlenecks in each task that causes delay and various measures to remove it.
Further, identify the unnecessary activities, whose elimination can ease the process.

 Step 4 Create Sketch:

Make a sketch right from the scratch of the entire process, depending upon the business
process requirements, which came into light after interviews and discussions.

 Step 5 Compare:

At the end, compare the latest process flow with the previous one, and mark the areas that
require changes, as per the research conducted.

Process Analysis is a methodical approach to enhance the understanding and redesigning of

the workflow of the organization. It acts as a tool to maintain and improve the business
processes and help in attaining the incremental to transformational benefits, such as cost
reduction, optimum utilisation of resources, effective human resource allocation and process
efficiency.

3.3.16 Process planning

Process planning is a preparatory step before manufacturing, which determines the sequence
of operations or processes needed to produce a part or an assembly. This step is more
important in job shops, where one-of-a-kind products are made, or the same product is made
infrequently.

Process planning is how manufacturers determine the sequence of operations that they’ll take
to produce a part or make an assembly leading to the finished goods. When working in a job
shop that produces one-of-a-kind products or where the same product is mass-produced,
process planning is incredibly important.
But all manufacturers benefit from process planning. That’s because process planning is
basically the bridge between product design and product manufacturing.

The purpose of process planning is to develop the most efficient sequence of operations. This
includes having the right equipment and tools and meeting product requirements and
specifications.

All of this is done with the goal of reducing costs and increasing productivity.

Manufacturers have two ways to achieve these goals; one is manual process planning and the
other is using software to aid in process planning.

3.3.17 Benefits of Process Planning

Any kind of planning is always important in manufacturing or, frankly, any industry. But
that’s just a general benefit, there are more specific reasons why manufacturers want to use
process planning.

For one, it helps manufacturers evaluate other ways of operating when it comes to the
production of their goods. In other words, better strategize their manufacturing operations to
deliver on their goals.

Process planning also gives manufacturers the flexibility to quickly shift production if they
find a better way of doing things, such as increasing production efficiencies.

It also helps deliver consistent quality over multiple production lines or plants. That means
reducing the time to market, which improves customer satisfaction and retention.

3.3.18 Types of Process Planning

There are three main types of process planning: manual process planning, computer-aided
process planning and generative process planning.

1. Manual Process Planning

Also known as man-variant process planning, this is the most used type of process planning.
A process planner will select the combination of processes needed to produce the finished
part. These are engineering drawings that define the part requirements and the availability
and capabilities of machines and processes.

The selection leads to criteria, such as production costs or time, machine utilization and
routine will also impact the plan. Usually, the criteria are based on a family of parts rather
than the processes and machines needed to produce a single part.

2. Computer-Aided Process Planning

This is a more efficient type of process planning, less tedious and less likely to make
mistakes. Automating process planning systems removes the human element in the steps
between preparing engineering drawings and finishing the process plan for all manufacturing
operations. There still must be human oversight to ensure compatibility with the available
processes.

Whether to turn, mill or stamp is determined by the product requirements, quantities ordered
and capabilities of the processes. This still reduces process planning time, and the skills
required of a process planner and makes for more consistent and accurate plans that increase
productivity and reduce costs.

3. Generative Process Planning

Generative process planning takes in-process information and uses it to automatically create a
process plan for a new component. This information is pulled from manufacturing databases
and doesn’t involve much human oversight. After reviewing the design, the operation
sequence is automatically produced.

Of course, the software must be encoded with knowledge of manufacturing. In fact, machine
selection, tool selection, process optimization and more can also be automated by this system.
There are hurdles to clear, however, such as transforming component data and decision rules
into the system.
3.3.19 Manufacturing Process Plan

A manufacturing process plan defines the steps from product design and development to
the manufacturing processes used to create the finished product. It includes operation
sequencing, machine process planning, assembly process planning and assembly line
planning.

3.3.20 Steps in Process Planning

Following these steps helps find the most efficient path from product design to product
manufacturing in order to accomplish objectives. Below are the basic steps you should take.

1. Identify Inputs and Outputs of Manufacturing Process

Inputs are the materials and other resources use to create the finished product. These can be
labor, materials, facilities, equipment and so forth. The outputs are the finished products
that’ll be delivered to customers.

Therefore, it’s crucial to understand what will go in and come out of your manufacturing
process to manage that process, reduce waste and increase productivity.

2. Map Out Workflows

The workflow maps the activities that will achieve a certain result. This is a crucial part of the
process plan as it visualizes processes from start to finish and helps make clear each step in
that path, including resources needed to complete the work. It’s also a quality assurance
measure as workflows are repeatable and consistent in producing products.

3. Create Documentation for Production Operators

These documents include everything from production prints to schematics and circuit layouts
for associated electronics. Other documentation includes status reports, invoices, batch
records to identify job numbers and personnel.
4. Train employees

Plan training and exercises for personnel. This is an important step to make sure everyone
knows what they must do and how they should do it. This step is critical to building
confidence in workforce as well as motivating them to do their jobs well.

3.4 Facility layout

For an organization to have an effective and efficient manufacturing unit, it is important that
special attention is given to facility layout.

Facility layout is an arrangement of different aspects of manufacturing in an appropriate

manner as to achieve desired production results. Facility layout considers available space,
final product, safety of users and facility and convenience of operations.

An effective facility layout ensures that there is a smooth and steady flow of production
material, equipment and manpower at minimum cost.

Facility layout looks at physical allocation of space for economic activity in the plant.
Therefore, main objective of the facility layout planning is to design effective workflow as to
make equipment and workers more productive.

Facility layout is an arrangement of different aspects of manufacturing in an appropriate

manner as to achieve desired production results. Facility layout considers available space,
final product, safety of users and facility and convenience of operations.

3.4.1 Objectives of Facility Layout

A model facility layout should be able to provide an ideal relationship between raw material,
equipment, manpower and final product at minimal cost under safe and comfortable
environment.

An efficient and effective facility layout can cover following objectives:

 To provide optimum space to organize equipment and facilitate movement of

goods and to create safe and comfortable work environment.
 To promote order in production towards a single objective
  To reduce movement of workers, raw material and equipment
 To promote safety of plant as well as its workers
 To facilitate extension or change in the layout to accommodate new product
line or technology upgradation
 To increase production capacity of the organization

An organization can achieve the above-mentioned objective by ensuring the following:

 Better training of the workers and supervisors.

 Creating awareness about of health hazard and safety standards
 Optimum utilization of workforce and equipment
 Encouraging empowerment and reducing administrative and other indirect work

3.4.2 Factors affecting Facility Layout

Facility layout designing and implementation is influenced by various factors. These factors
vary from industry to industry but influence facility layout.

These factors are as follows:

 The design of the facility layout should consider overall objectives set by the
organization.
 Optimum space needs to be allocated for process and technology.
 A proper safety measure as to avoid mishaps.
 Overall management policies and future direction of the organization

3.4.3 Design of Facility Layout

Principles which drive design of the facility layout need to take into the consideration
objective of facility layout, factors influencing facility layout and constraints of facility
layout. These principles are as follows:

 Flexibility:

Facility layout should provide flexibility for expansion or modification.

 Space Utilization:

Optimum space utilization reduces the time in material and people movement and promotes
safety.
  Capital:

Capital investment should be minimal when finalizing different models of facility layout.

3.4.4 Design Layout Techniques

There are three techniques of design layout, and they are as follows:

1. Two- or Three-Dimensional Templates:

This technique utilizes development of a scaled-down model based on approved drawings.

2. Sequence Analysis:

This technique utilizes computer technology in designing the facility layout by sequencing
out all activities and then arranging them in circular or in a straight line.

3. Line Balancing:

This kind of technique is used for assembly line.

3.4.5 Types of Facility Layout

There are five types of facility layout, and they are as follows:

1. Plant Layout
● It refers to arrangement of the various facilities and services of the plant within the area of
the site selected previously.
● Plant layout design starts along with factory building
● All the facilities like equipments, raw materials, machinery, tools, futures, workers, etc. are
placed at appropriate place.
● In deciding the place for equipment, the supervisors and workers are consulted, and their
due consideration are considered before they put into plant location
● However, consultation may not mandatory, but consideration will help organization to have
co-operation with employees while in production as it will create a multiplier effect on
production
● Placing the equipment where it is not convenient for employees while being in production
will impact the production levels

Objectives of Good Plant Layout:

● Minimise hurdles in transportation of equipment or materials of production
● Adequate space for production and services
● Safe working conditions for employees
● Optimum use of available space
● Design should not hinder the process of production
● Design should be flexible enough for future expansion
● Design should focus on to minimise the movements of employees from one equipment to
another equipment otherwise, it will create a loss of production hours

2. Process Layout:
● It is also referred as functional layout
● Process Layout focuses on keeping similar machines or similar operations at one place in
layout
● Here, all similar functional Equipments are placed at one location and are grouped into one
department
● Process Layouts are more suitable for industries, as its production of goods is done based
on series of activities or process a site
Suitability of Process Layout
This type of Layout is most preferable when.
● Several types of products need to be produced
● If volume of production of individual products is low
● When production of products needs continuous handling by mechanical methods
● If need of any intermittent production

Advantages of Process Layout

● Flexibility in production
● As equipments are grouped together supervisory is easy
● Reduction of Costs, as they are grouped together
● Production capabilities are increased
● Minimise movements of employees from one equipment to another equipment
● Helps an organisation to easily evaluate an employee at production levels, as employee
works at constant location site and helps to determine his incentives for his/her production
capabilities
Disadvantages of Process Layout
● More floor space is required to keep all equipment together ● Sometimes, it becomes
difficult to control activities of production
● Generally, these are said to be utilised as WIP units, meaning Work in progress, where an
production material comes as input here, it processes those and then sends that material to
another equipment as input. In such cases, there are chances of Congestion at production site.
● Automatic material Handling becomes difficult
● Process Layout takes more time to finish or complete the product production at its stage
● It needs regular inspection or constant supervisory
● Effective cooperation and coordination is required at production site among employees

3. Product Layout
● Product Layout refers to sequential arrangement of machines and components parts in one
line based on sequence rules of production
● In simple terms, we can say that it is layout where a raw material moves in straight line
from one equipment to another equipment in order to complete it as finished good
● Look at below picture to understand product Layout Raw material → Machine ‘A’ →
Machine ‘B’ → …. → Finished Product
● Product layout is also called as “Line Type Layout” or “Straight Line layout”
Suitability of Product Layout
This layout is most preferable in below cases:
● If production is of continuous nature in mechanical methods ● If product layout needs a
standardise for one or few products
● Applied in large volume of production
● Inspection on series of operations is less

Advantages of Product Layout

● As this type of layout prefers mechanical feeding into devices, it brings down cost of
production
● Takes less time for production
● Considered as highly economical among layouts
● Better Production controls
● Small floor space for single machine
● Reduction in WIP (work in progress) areas
● Does not require a Skilful human resource at site operations
● Better coordination
● Production process is simple in nature
● Workers movement completely low

Disadvantages of Product layout

● Lack of Flexibility in production operations
● Supervisory on operations are bit low
● Less Scope for expansion of this layout
● As the production is done in sequence manner, any break down of one equipment in the
process, the production will be down or stopped until it is repaired or replaced
● Investment in this type is expensive, as production units need to keep a spare or extra
equipment at handy to replace any equipment in case of failure while in production process

4. Combined Layout
● This type of layout is a combination of Product layout and Process layout
● Also called as “Group Technology Layout”, or “ Hybrid Layout”
● Most of organizations use this type of layout in their production units
● For example, files, hacksaws, circular metal saws, wood saws etc.
Suitability:
● When production of products are in various shapes and sizes
● The Equipments in layouts are arranged as per requirements of design of product and its
outcome
● Used when several items of products are produced but not in bulk
Advantages and Disadvantages:
● This type of layout inherits the advantages and disadvantages from Product and process
Layouts
● However, its usage in organizations purely based on its products produced for market and
its business
5. Fixed Position Layout
● This type of layout is about transfer of productional resources like- human resources, or
machines towards the production site which is already fixed and stable
● This layout is also called as Static Layout or fixed Location Layout
Example - In hospital, the robotics (Equipments) are fixed in operation theatre, and they are
flexible to move as per doctor's directions while performing an surgery
Suitability:
● Widely applicable to use if industry is of heavy type like in manufacturing of Locomotives,
ships, aircrafts etc
● If manufacturing of few pieces of items
● Used where transfer of bulk volume of material is required
Advantages of Fixed position Layout
● Low investment for layout
● Helps to produce differentiated products ( ex- Aircrafts produced in various models)
● Very Flexible in nature, the workers get easily associated with it
● Production centers work can be designed in independent manner

Disadvantages of Fixed Position layout

● Transfer of machines from one place of another place, if required is a loss of time and
costly
● These types of Layout need very expensive equipments for its operations
● High Skilled Professional are needed to operate the machines in layout
● Optimum utilization can be obtained in this layout, as the equipments are fixed in nature
and its movements will be some constraints

3.4.6 Principles of Layout

 The principle of minimum travel (from suppliers, to the airport, to customers, etc)
 The principle of sequence.
 Effective use of available space.
 The principle of usage.
 The principle of safety.
 Maximum visibility.
 The principle of flexibility.
 The principle of minimum investment.
3.4.7 Types of facility layouts

There are four main types of facility layouts:

 process,
 product,
 fixed position,
 cellular.

1. Process layout:

The focus of the process layout is the production process or it arranges the workflow
according to the process. In this layout, workers or departments performing similar tasks are
grouped together.

Unfinished goods move from one workstation to another.

At each position, there is a group of workers carrying out a specific type of task.

For example, there are workers assembling parts at one workstation and at another inspection
is being carried out.

As in the case of stuffed bears, the fur is cut out at one workstation, and the stuffing and
stitching is carried out at another. At the next workstation, it is dressed and outfitted and then
finally it reaches the shipping station before being delivered to the customer.
Such layouts work best in the case of firms producing small numbers of a wide range of
products using general purpose machines that be swiftly changed to new operations for
different product designs.

Manufacturers of custom machinery for specialized applications would use the process
layout.

2. Product layout:

In the product or assembly line layout people, equipment, or departments are arranged along
an assembly line for production of high volume goods.

Assembly line means a series of workstations at which already made parts are assembled.

Such layouts are used for products requiring a continuous or repetitive production process.

When the manufacturing firm needs to produce large volumes of a product on an ongoing
basis, it arranges workstations or departments in a line and the product moves along the
assembly line.

For example, candy makers have workstations arranged along assembly lines.

Mixing and whipping of ingredients is carried out at one workstation and then sugar is added
at the next. Candy moves on conveyor belts to reach the next workstation for packaging and
then wrapped for shipment at another workstation.

Apart from it, automobile manufacturers also use assembly lines like in the image below
robots are engaged in the assembly of BMW cars at one of its plants in Germany.

BMW has been manufacturing vehicles and engines at its Munich plant since 1922. Around
7800 employees work at the Munich plant on producing vehicles and the entire production
process is performed on site. It includes everything from the press shop to the body shop,
paint shop, seat production facility and assembly line.

3. Cellular layout:

The previous two layouts arrange the workflow by function.

However, this is not always the most efficient and effective method since sometimes
inventory may build up and workers might grow bored of doing repetitive tasks and time may
also be wasted transporting goods from one workstation to another.

Some of these problems are overcome using the cellular layout.

In the cellular layout different functions or departments are not carrying out different tasks.

Instead, there are small teams that handle all aspects of building a product or component.

For example, one team will be working on producing one appliance and another team will be
working on the same appliance and each team will have the workers with necessary skills to
carry out all aspects of production.

In such a scenario, each team works as a self-contained unit.

Sometimes machines and equipment are configured in a U shape and people work inside the
U.

To gain the highest work efficiency, the companies having adopted a cellular layout train
workers to perform several different tasks and they are parts of the teams that are responsible
for monitoring their own quality and quantity.

Some of the key advantages of using a cellular layout is improved completion time, reduced
inventory levels, superior quality and higher employee morale.

Large companies in the aerospace industry like Boeing and Raytheon usually adopt a cellular
layout.

Apart from it, small companies making components for robots also use a cellular layout.
4. Fixed position layout:

While it is easier to move around toys and candies what about the products that cannot be
moved about easily or on conveyor belts? For example, what about planes and ships?

Such production firms adopt a fixed position layout where the product remains in one place
and the worker and equipment are moved around as needed.

Not just the manufacturers of ships and airplanes, but the construction firms also use a fixed
position layout.

In several cases, when the project site has limited space, the product will have to assembled at
different sites and then transported to the project site and assembled.

This type of layout is commonly used in various service industries including pest control and
house cleaning services.

3.5 Planning tools and techniques

The six tools and techniques used for layout planning/plant layout are as follows:

1. Operation process charts

2. Flow process charts

3. Process flow diagram

4. Machine date cards

5. Templates

6. Scale models.

1. Operation Process Chart:

The manufacturing process is divided into separate operations with the help of the operation
process chart. It shows the points at which materials are introduced into the process and the
sequence of various operations and inspections other than material handling.

The operation process chart is meant for new plant which is to be laid out. This chart
represents the basic activities required for producing a product. Since it presents the overall
visualization of the process, basis for studying possibilities for the improvement of operations
by elimination, combination, rearrangement or simplification is available.

2. Flow Process Chart:

This chart is a graphic representation of all the production activities occurring on the shop
floor. It may be considered as an elaboration of the operation process chart which includes
transportation, storage, and delay. The data required for preparing the flow process chart are
collected by tracing the actual flow of work occurring in the distance moved and the time
required for the operation.

The flow process chart provides the complete information for the analysis and improvement
of the unit/plant operations. Based on this analysis, operations may be combined, rearranged,
or eliminated.

Workstation, storage space and inspection may be reallocated to minimize distances moved
and labour time. An improved flow process chart provides a basis for revising an existing
plant layout. The charts are also utilized to check and verify the efficiency of a proposed new
layout.

3. Process Flow Diagrams:

This diagram is used to supplement the flow process chart. It is the diagram of building plan
representing graphically the relative position of productive machinery storage space,
gangways etc. and path followed by men or materials. All routes followed by different items
are shown by joining symbols with straight lines

It is possible to trace out the undesirable characteristics of the layout which are responsible
for increased transportation and delay by studying the process flow diagrams and flow
process chart. It also shows nature of back tracking of present layout which there by helps in
improving the layout.

4. Machine Data Cards:

These cards give complete specification of each machine to be installed showing its capacity,
space and other requirements, foundations methods of operation, maintenance, and handling
devices of machines etc.

5. Templates:
After studying the flow process chart, process flow diagram and machine data cards, a floor
plan is prepared by fixing the area occupied by each item (machine/equipment, benches,
racks, material handling equipment etc.) to be erected in the shops.

Now from the thick sheets of cardboard, plywood, or plastic on the same scale pieces of sheet
are cut (known as templates) to represent various items which are to be housed in the plants
and are placed on the floor plans at suitable locations.

Part -A [Two marks question]

1. What is Product Design?

2. What is Product development process?

3. What is Process design?

4. What is Facility Layout?

5. Give a short note on competitive priorities.

Part -B [13 marks question]

1. Explain the Criteria and Approaches to Product Design.

2. Describe the Stage-gate approach and Tools for efficient development.

3. What is process strategy? What are the types of process strategy? Explain.

4. Explain the Facility Layout Principles and its Types?

5. Discuss the steps involved in process planning.

6. Describe the Planning tools and techniques for Facility Layout.