While a disappointment for all concerned, the achievements of the season did not go unnoticed with Ospreys showing marked improvements from the season before.
The Welsh side won three more games across the league campaign, rising from fifth in the table to third, just one point off eventual finalists Glasgow Warriors and Munster.
And with thoughts already turning to next season, Tandy believes it is the finer details which will give them the edge.
"We've got to build on this season. People will probably say we've slightly over achieved with the youth we've got," Tandy told Ospreys official website.
"A lot of people were talking about our average age of 24 in the semi-final and Alun Wyn (Jones) is the oldest guy at 29.
"There's not a lot of wealth and experience around it so it's been great to have people experiencing the semi-finals. It's only going to stand us in good stead.
"Teams will see us as more of a threat whereas probably they didn't see us a threat last year.
"We want to get our detail a little bit better. If we are in control of our performances then hopefully the victories will look after themselves.
"We want to win European games we want to win, we want to keep in the top fours and European qualifications.
"To do that we can't be worrying about the outcome, we've got to be worrying about our detail and training preseason and how we want to get better, how we recover, how we eat and how we look after each other and making sure we drive our standards onwards and upwards."
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