Product design is necessary for the appearance in the market. For product design selection of process is mandatory to reduce the cost of the product. Both these terms are interdependent to each other. In the following section, you will know the relationship between product design and process selection.
Major 4 Relationship between Product Design and Process Selection
The processes of product design and process selection are dependent on each other. The type of operations to be used directly depends on the type of products to be manufactured. Further, the type of operations to be carried out is a deciding factor for several other features of the organization. These features are the organizational structure, layout, and the type of machinery to be installed.
1) Product Design Decisions
Intermittent and continuous operations are important for producing goods at different stages of their product life cycle. Intermittent operation is more suitable for goods that are in the early stages of their life cycle. The reason is that such operations may be easily altered to meet the requirements of the buyers. It shows the relationship between product design and process selection. Products at the early life stage face unpredictable demand and may also require constant revisions. The volumes required are also low, making intermittent production the suitable course of action.
As the product matures, the product features and demand volume change. This requires change in the process as well. As the demand volume increases and becomes more predictable, the product features also become standardized. In such cases, the continuous operations method is preferred. Such operations require extensive capital outlay as there is a need for automation for producing standard goods. Therefore, this operation method is only justifiable if there is enough demand volume for the product. Once the product reaches that volume mass, the continuous operations method becomes the preferred option. Therefore, it is recommended for the products at the later stage of its life cycle.
2) Competitive Priorities
The competitive priorities determine how the company plans to compete in the market. The type of production process installed is one of the key factors to determine competitive priorities. Intermittent processes are less competitive on a cost basis than continuous processes. Continuous processes produce mass quantities of standardized products, making them cost-efficient as the total costs are spread over a large volume of products. It shows the relationship between product design and process selection.
Products made using continuous processes are more cost-effective than the products produced using intermittent operation. However, there are certain benefits associated with intermittent processes, as such processes offer better flexibility and delivery schedules.
3) Facility Layout
This involves determining the arrangement of various resources required for carrying out the production process. If the resources are not laid out properly, then there may be avoidable loss of material and efficiency. Therefore, it is important to have a proper layout.
4) Vertical Integration
The volume of vertical integration increases with the increase in the number of operations performed by an organization comprising the entire process. This is a form of strategic decision and is generally supported by plans ahead with regard to the growth of the company. It shows the relationship between product design and process selection. Vertical integration is important for organizations that produce high quantities, and the goods or services are generally standardized. Such types of conditions allow for task specializations.
Since vertical integration is generally expensive, it is appropriate when there is a high volume of goods to be produced. For example, a company produces food products made from wheat. It needs wheat in large quantities and thus justifies the adoption of vertical integration to have better control over the supply, quality, and price of the inputs.
In short, vertical integration is recommended for continuous operations. However, it is not a preferred option for intermittent operations. It shows the relationship between product design and process selection.
Product design and process selection are dependent to each other in different manner. You can know the relationship between product design and process selection by different means. These are product design decisions, competitive priorities, facility layout, vertical integration.
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