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PRODUCT DESIGN
Compiled by: Asst. Prof. Harmi Sadrani
Introduction
• Product Design is the process by which customer needs and market demands are translated into
tangible goods or intangible services that a firm can profitably produce and deliver. In a competitive
market, superior product design can become a lasting source of competitive advantage.
• From an operations perspective, product design decisions directly influence manufacturing processes,
resource requirements, cost structures, quality standards, and supply chain configuration. A
well-designed product reduces waste, simplifies production, shortens lead times, and improves
customer satisfaction simultaneously.
• Definition of Product Design
• Product design is the process of creating a new product or improving an existing one to be sold by a
business to its customers. It encompasses the complete specification of a product — including its form,
function, materials, dimensions, tolerances, aesthetics, and the processes required for its manufacture.

Compiled by: Asst. Prof. Harmi Sadrani 2

Objectives of Product Design
• Satisfy customer needs and exceed expectations
• Minimize production costs while maintaining quality
• Achieve product reliability and durability over its lifecycle
• Simplify manufacturing, assembly, and maintenance
• Ensure compliance with legal, regulatory, and safety standards
• Support sustainability and environmental objectives
• Enable profitable pricing in the target market segment
Factors Influencing Product Design
Customer Factors Technical Factors Business Factors
Functional requirements Material properties Cost targets
Aesthetic preferences Manufacturing capabilities Profit margins
Ergonomic needs Tolerances & precision Brand positioning
Price sensitivity Process technology Competitive landscape
Environmental concerns Supply chain constraints Time to market

Compiled by: Asst. Prof. Harmi Sadrani 3

Types Of Products
• Products can be classified in multiple ways — by their intended use, the nature of the product, the
consumer type, or their position in the supply chain. Understanding product types helps managers
design appropriate production systems, supply chains, and quality standards.
Classification by Tangibility

Product Type Description & Examples

Tangible Products (Goods) Physical, touchable objects that can be stored and transported. Production
involves raw materials, labor, and machinery. Examples: automobiles,
smartphones, furniture, food.

Intangible Products (Services) Non-physical outputs that are produced and consumed simultaneously.
Cannot be stored or transported. Examples: banking, consulting, education,
healthcare.
Hybrid Products Combinations of goods and services. A restaurant meal involves both tangible
food and the intangible service experience. A photocopier sale bundled with
maintenance service.

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Types Of Products
Classification by Consumer Type
A. Consumer Goods
Products purchased by individuals for personal or household use. Sub-classified as:
• Convenience Goods: Frequently purchased, low-cost items with minimal decision making. Examples:
toothpaste, soft drinks, newspapers.
• Shopping Goods: Products where consumers compare brands, quality, and price before purchasing.
Examples: clothing, electronics, furniture.
• Specialty Goods: Unique or brand-specific products requiring special purchase effort. Examples:
luxury watches, designer bags, high-end cars.
• Unsought Goods: Products consumers don't actively seek but may buy when introduced. Examples:
insurance policies, encyclopedias, funeral services.

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Types Of Products
Classification by Consumer Type (Contd.)
B. Industrial Goods
Products purchased by businesses and organizations for further production or operation:
• Raw Materials: Natural resources used directly in production. Examples: iron ore, cotton, crude oil,
timber.
• Components & Parts: Semi-finished items incorporated into the final product. Examples: integrated
circuits, bearings, tyres for automobiles.
• Capital Goods: Long-lived assets used in production. Examples: machinery, robots, factory buildings,
equipment.
• Supplies & Services: Short-lived items and support services. Examples: lubricants, cleaning services,
office supplies, consulting.

Compiled by: Asst. Prof. Harmi Sadrani 6

Types Of Products
Classification by Consumer Type (Contd.)

Durability Class Description & Examples

Durable Goods Can be used over many years. Require detailed after-sales support, warranties, and quality
standards. Examples: refrigerators, cars, machinery, furniture.
Non-Durable Goods Consumed in one or few uses. Require high-volume, consistent production. Examples: food
products, soap, paper, fuel.
Services Entirely consumed at the moment of delivery. Require different operational frameworks since
they cannot be inventoried.

Classification by Stage in the Supply Chain

• Raw Materials — at the very beginning of the supply chain
• Work-in-Process (WIP) — partially manufactured products inside the plant
• Finished Goods — completed products awaiting distribution
• MRO Items (Maintenance, Repair & Operations) — consumable goods used to support production

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Product Design Process
The product design process is a structured sequence of activities that transforms a market need or
opportunity into a detailed product definition ready for manufacturing. Best-practice organizations
follow a systematic and iterative approach.
Stages of the Product Design Process
Stage Activity Output
1 Idea Generation List of raw ideas from R&D, customers, competitors
2 Idea Screening Filtered shortlist of feasible concepts
3 Concept Development Detailed product concept with features and benefits
4 Feasibility Study Technical and financial viability report
5 Preliminary Design Rough drawings, BOM, initial specifications
6 Design Review Feedback from engineering, operations, marketing
7 Prototyping Physical or digital prototype for testing
8 Testing & Refinement Validated design with corrected specifications
9 Final Design Complete engineering drawings and production specs
10 Launch & Ramp-up Full-scale production commencement
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Concurrent Engineering (Simultaneous Design)
• Traditional sequential design (waterfall) is slow. Concurrent engineering overlaps design stages, with
cross-functional teams working simultaneously on different aspects. This reduces time to market by
30–70%.
Approaches to Product Design
A. Design for Manufacture and Assembly (DFMA)
DFMA focuses on designing products that are easy and economical to manufacture and assemble. Key
principles include:
• Minimize the number of parts
• Design parts with multi-functional uses
• Design parts for ease of insertion and alignment
• Avoid flexible parts and parts that tangle
• Use standard, widely available components
B. Design for Six Sigma (DFSS)
DFSS applies Six Sigma statistical tools during the design phase to ensure processes are capable of
producing to specification. Uses DMADV framework: Define, Measure, Analyze, Design, Verify.

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Approaches to Product Design (Contd.)
C. Value Engineering (VE) / Value Analysis (VA)
A systematic method for improving the value of a product by examining its functions and finding the
most cost-effective means of achieving those functions without sacrificing quality or performance.
● Value = Function / Cost
● Improve value by increasing function or reducing cost — or both
● Focuses on 'what does the customer need this part to do?'
D. Modular Design
Products are designed using interchangeable sub-assemblies (modules) that can be combined in different
ways to create variety. Used extensively in computers, furniture (IKEA), and automobiles. Benefits
include reduced inventory, faster assembly, and simplified repair.
E. Robust Design (Taguchi Method)
Genichi Taguchi's approach focuses on designing products that perform consistently despite variations in
manufacturing conditions and customer use environments. Uses parameter design and tolerance design to
minimize sensitivity to noise factors.

Compiled by: Asst. Prof. Harmi Sadrani 10

Evaluation Of Design
Dimensions of Design Evaluation (Contd.)
C. Quality & Reliability Assessment
• Will the product perform to specification over its intended useful life?
• FMEA (Failure Mode and Effects Analysis): Systematically identifies potential failure modes and their
consequences.
• Reliability Testing: Accelerated life testing, MTBF (Mean Time Between Failures) analysis.
• Statistical Process Control (SPC): Ensures the production process can consistently deliver products within
specification limits.
• Cpk & Process Capability: Measures the ratio of the specification width to the process variation.
D. Marketability Assessment
• Will customers accept, prefer, and pay for the product?
• Customer needs analysis — QFD (Quality Function Deployment) / House of Quality
• Competitive benchmarking against rival products
• Conjoint analysis to determine which features customers most value
• Test marketing and focus group feedback
• Brand alignment and positioning assessment

Compiled by: Asst. Prof. Harmi Sadrani 11

Evaluation Of Design
Dimensions of Design Evaluation (Contd.)
E. Environmental & Sustainability Assessment
• Material recyclability and use of bio-based materials
• Energy consumption during production and product use phase
• Carbon footprint and lifecycle environmental impact (LCA)
• Compliance with regulations: RoHS, REACH, ISO 14001
• Design for Disassembly — ease of end-of-life product recovery
F. Legal & Regulatory Compliance
• Safety certifications: BIS, CE marking, UL, FDA approval
• Intellectual property checks — freedom to operate (FTO) analysis
• Consumer protection and product liability standards
• Industry-specific regulations: Food Safety Act, Drugs & Cosmetics Act, etc.

Compiled by: Asst. Prof. Harmi Sadrani 12