UNIT 1 Notes PPC - Product development PDF

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UNIT – I 6 hours Introduction: Objectives and benefits of planning and control-Functions of production controlTypes of production- job- batch and continuous-Product development and design-Marketing aspect Functional aspects- Operational aspect-Durability and dependability aspect aesthetic aspect.

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Product development and design-Marketing aspect - Functional aspects- Operational aspect-Durability and dependability aspect aesthetic aspect What is Product Development? Organizations have to come up with new ideas and new designs for their products. This is to maintain its position in the market. Product development is the complete cycle of all such steps. This starts from the conceptualization to the product deployment. The main goal of the product development process is to develop products according to customer requirements. This will, in turn, increase the market share of the company. But every product might not satisfy all customer demands. So, companies carry out a thorough analysis of their customer base. This helps them to identify their target market and develop products accordingly. Stages of Product Development The different stages of product development are: 1) Idea Generation & Screening 2) Concept development 3) Business analysis 4) Product development 5) Test marketing 6) Commercialization 1) Idea Generation & Screening This stage involves the search for new ideas about a new product. In most organizations, there is an ideation team that develops the ideas. The employees may choose only a handful of ideas. The R & D team may also develop these ideas. External sources like their distributors and suppliers can also contribute. In most cases, these have to meet client demands. Here, analysis and filtering of ideas take place. Officials keep the best ones and discard the rest. The companies aim to look for ideas that can be profitable products. 2) Concept development After selection of an idea, the company has to transform it into a concept. The marketer then creates alternative product concepts from the new concept. The company then compares the different alternatives. They observe whether these alternatives will meet the customers needs. 3) Business analysis Here the officials analyse the sales, profit and costs associated with the product. By this, they are able to understand whether the product is commercially feasible. Moreover, it has to meet the users demands. For this, they conduct market surveys. Sales history of similar products is also analyzed. Additionally, it is important to identify possible risks. This helps to reduce problems and developmental errors in the future. 4) Product development If the product idea passes through all the previous stages, it is converted into a tangible product. This helps to check how well it might work in the market. Thus, the R&D team might launch a prototype model of the product concept. Additionally, the marketing team develops a strategy for distributing the product. The finance team will calculate the finances associated with it. The advertising team will develop a strategy for promoting the product. 5) Test marketing For obtaining customer feedback, the company launches a prototype. Through this, the officials are able to test different strategies. These include marketing, positioning, advertising, targeting, packaging, and financing. The customer feedback is taken into account. According to this data, the developers make the required changes and enhancements. 6) Commercialization 2

After test marketing, the company officials get a basic understanding of how the product might work in real life. So, before the commercialization of the product, all the major decisions are taken. This will include the identification of the target markets. The launch strategies are also prepared. After that, all the departments collaborate and work on the product.

Role of a product developer  They analyze sales data, customer feedback, and product reviews. They also assess their competitors products  Consulting the manufacturing, design, finance and engineering team to develop product specifications  Supervising the final design and evaluating the prototype  The developer submits proposals to the project head for reviewing. This enhances the development process  The product developer prepares the final cost estimates for the product What is Product Design? Product design consists of all the designing activities. These enable the designer to create the look and feel of the product. These include deciding the architecture of the product and choosing the required materials. It is also important to understand the best design that will suit the customer. The aim is to develop a design that will appeal to target customers. Product design is applied in the following fields:  developing medical equipment  tableware  furniture  electronics  kitchen appliances  jewellery Stages of Product Design The various stages of product design are: 1) Ideation In this process, designers generate ideas for the design. This can originate from internal and external sources. Internal sources include employees, market analysis, research and development and reverse engineering. In reverse engineering, the competitors products are examined. This helps in generating new ideas. External sources include feedback from customers, the current market trends, and benchmarking. Benchmarking helps in analysing an organisations product. A comparison with the best product in the current market helps in this process. 2) Feasibility study Here, the officials will carry out the following feasibility studies:  Market  Economic  Technical  Strategic  Risk analysis of the product The performance specifications are then determined for the particular product concept. If they pass the feasibility study, they might get approved for development. 3) Preliminary design

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Here the design engineers transform the performance specifications into technical specifications. The procedure involves developing a prototype and testing it. Based on its performance, the designer revises the design and retests it. 4) Testing The prototype is tested many times before finalisation. It is also tested in actual market surroundings. This is required for gaining feedback from the target customer group. 5) Product launch After finalization of all decisions, the product is finally launched for the target customers. The entire management, marketing and production team will work together during this phase. Roles of a product designer  Making product sketches by hand or by using software  Meeting clients and other employees to discuss the design  To work with product developers, engineers, and marketing staff  A designer also has to work with the finance team  Modifying the design based on the feedback received during the development stages  They also analyse designs of other companies and help in generating new ideas Product Development: The product to be brought in the market by an organization/company may be original product tor which there is no competition or the enterprise might attempt to compete with other companies in serving the society with existing type of products. The competition may be for products similar in design or manufacture or for products which are entirely different in design and manufacture but both serve the same purpose. Product development and design are closely connected with production planning system. In product development two aspects i.e., (i) to modify the existing product for customer’s satisfaction (ii) to project a new product in the market in view of market survey reports, need consideration. Any new enterprise or industry which wants to compete with the other existing industrial houses by bringing out the pro duct of same design with similar production technique must produce that product of superior quality with low price. In case the new enterprise fails in bringing the product with the above characteristics the consumer may not like to purchase product, so for remaining ahead of the other contestants the concerned enterprise has to gain good standing in the market. Thus development is the fabrication of new or modified product and then testing it to find its usefulness. The research and development wings are thus concerned with all aspects of the product design and applications including quality, reliability, efficiency, alternative materials, wastage control etc. Product is developed keeping in view essential requirements like: (i) Keeping the costs as low as possible to earn profits. (ii) To capture market by better sales. (iii) Changing requirements of consumers regarding product characteristics. To achieve these objectives the latest inventions/developments in the concerned field and in the products available in the market must be considered.

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Some interrelations in Product development and design

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Factors to be Considered in Product Development and Design: 1. Product Characteristics 2. Standardisation 3. Product Simplification and Diversification: 4. Specialisation:

1. Product Characteristics: Many factors are to be analysed in connection with the product development and design. Product characteristics is one of those factors. The following four aspects are considered under product characteristics: 1. Functional Aspect 2. Operational Aspect 3. Durability and Dependability Aspects 4. Aesthetic Aspects. 1. Functional Aspect: When the marketing possibilities of a product have been explored, the functional scope of the product has to be carefully analysed and properly defined. The definition of the objective of a product does speak about the complete functional scope of the product. A mixer, grinder, for example, has a clearly defined objective to grind and mix or shake the various items. Basically the mixer consists of a motor and a speed control unit but it has to be designed so as to serve with all attachments. Now the customer has to decide and define the functional aspect of the food mixer unit compatible with his requirements, taste and paying capacity. Similarly in other products, the functional scope of the product/unit may be in the form of detachable accessories attachments and the usage can be left to the customer decision. So the functional aspect is concerned with the ease and efficiency of the product performance. 2. Operational Aspect: After knowing the functional aspect of a product, it is relevant to consider the operational aspect. It is not important only that the product should function properly but is should also be easy to understand and simple to operate. Sometimes the product has to be suitable for various operational conditions and very often it is subjected to varying degrees of expertise of workers or operators. With this trend for increased versatility of products, the products should be designed in such a way that by using basic attachments it should be possible to build a suitable combination for specific purposes. Thus the versatility of products/machines should also be analysed in the light of above discussion. Especially if some operations are to be carried out with the aid of different accessories or attachments, the designer should always bear in mind the time required for an operator to perform the changeover operation. The tendency should be short get ready and short put away period. 3. Durability and Dependability: The economic analysis of the cost of product is essential in view of the fact that durability and dependability are closely related with the selection of materials and workmanship. Since quality is the degree of perfection so it is not easy to define this characteristic, but durability and dependability are the factors that often determine quality of a product and thus have to be carefully considered by the designer. Durability may be defined as length of active life or continuance of the product under given working conditions. Durability may not always be connected with selection of 6

good materials. An additional criterion regarding quality is dependability, which may be defined as the capability of a product to function to satisfaction when called upon to do its job. Another aspect of durability is that of maintainability which may be defined as the ease with which a product/equipment can be maintained. This is of particular importance in case the machine is supposed to work continuously and also when any repair and maintenance involves a loss of running time. 4. Aesthetic Aspect: Aesthetic aspect is concerned with the appearance and look of the product. Where the dependability, durability, functional scope and operational aspects of the product have already been defined aesthetic aspect is mainly concerned with final shape of the product. Depending upon the man’s aesthetic taste gradual changes in appearance or the product are taking place. In some cases, however, moulding of final shape of the product may have financial implications for instance the product may require the addition of some special materials and processes in addition to those basically required from the operational and functional point of view. In such cases careful cost analysis of the aesthetic aspects will be required. In case of consumer products aesthetics may be the governing factor in design e.g., appearance of automobiles and other household utilities/equipment or fashion goods. When styling is a dominant factor in product design it is utilised for creating demand and sometimes monopolise the market. The following aspects should be considered by the designer to bring out aesthetic characteristics: (i) Does the new product design have optimum aesthetic values? (ii) Has the design got sufficient sales appeal? (iii) Can the sales appeal be further improved without affecting the economy of the manufacturing system? (iv) Have the specific preferences of different markets and consumer taste been satisfied? (v) When will the next style change be necessary? Thus aesthetics have been fully recognised as an integral part of design and no designer can ignore the implications of this aspect in order to monopolize the market and build the future of the organisation. 2. Standardisation: The establishment of the standards for the product and the coordination of the various industrial factors to comply with these standards and their maintenance for a certain period during which these standards are effective is called “industrial standardisation.” Or By standardisation we mean the voluntary fixation of standard dimensions, equipment, quality and practice, with a view of having a large production of only limited number of varieties. Or Standardisation is the process of defining and applying the conditions required to ensure that a given range of needs can normally be met with a minimum variety in a reproducible and economic way on the basis of current technical know-how. Purpose of Standardisation: (i) As is evident from the definition of standardisation, it is must for the development of industry. It is very true that no industry can flourish and survive if it does not adopt standardisation. 7

(ii) Standardisation helps in establishing the interchange-ability of products. (iii) With decrease in supervision and allied work the total cost of the product is reduced, and (iv) It brings uniformity in quality and performance of the product. Procedure of Standardisation: (1) Identify the market demand with the help of market research and post-sales data. (2) Define a standard range of products. (3) From the defined range, the designer may develop the minimum variety of components to match the already defined range of products. Areas of Standardisation: (i) Within a defined range, the physical dimensions and tolerances of components. (ii) The rating of infrastructure facilities like machines and equipment may be in terms of units of energy, temperature or current, voltage or speed etc. (iii) Physical, chemical characteristics or specifications of materials. (iv) Methods of testing the properties or performance of machines/equipment. (v) Methods of installation of equipment keeping in view the minimum precautionary measures and convenience of use. Advantages of Standardisation: (1) Standardisation reduces the complexity of the manufacturing system. (2) It lowers down the direct cost of manufacture/production. (3) The indirect cost of manufacturing is also reduced due to less supervision and engineering skill required. (4) Standardisation eases the process of purchase and stock control. (5) The cost of inspection of incoming materials is reduced due to standardisation. (6) Standardisation helps in the process of interchange-ability of products. (7) The production and delivery of standardized goods is easy in comparison with those specially produced. (8) Since perfection is possible only with practice and repetition, products which are standardised will be more satisfactory and reliable than those specially manufactured. (9) Manufacturers can gain confidence of the consumer by introducing and maintaining standards. (10) The repair and maintenance of standardised goods/products is quite easy, simple and less costly. Limitations of Standardisation: (1) Standardisation hinders in the process of product development due to uniformity, monotony and non-flexibility etc. (2) Standardisation reduces the variety of products to be offered to consumer. (3) Changes in consumer taste may affect sales volumes. (4) The workers are unable to apply their brain, skill and efforts for improving the productivity and quality of products. (5) In view of standardisation the products having the same end use may not be conceived or manufactured due to its effect on the brain of manufacturer and consumers. 3. Product Simplification and Diversification: The product simplification is related with standardisation or it is the process of reducing the variety of products. Product simplification may be defined as the elimination of extraneous or marginal lines of products.

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In this case we try to cut down the range of products their sizes and types. So the use of extra basic materials in the manufacturing of the products is eliminated and the complex techniques of manufacturing also simplified. Product diversification is just reverse of product simplification. It deals with more lines of products, more types and sizes etc. This is done to increase the variety. It involves the addition of basic materials, latest techniques of manufacturing thus resulting in complexities, in production system. Factors Concerned with Simplification and Diversification: 1. Nature and Utilisation of Products: 2. Competition with other Manufacturers: 3. Sales Price and Sales Volume: 1. Nature and Utilisation of Products: When the product is of capital goods nature, fewer variety and sizes are required. But in case of consumer goods the types and sizes required should be more or good variety should be there. For purchase of capital or producer goods the criteria may be performance, economic operation and maintenance etc. Thus firms manufacturing capital goods where variety offered is minimum should follow simplification and improving sales appeal. Simplification will be followed in case of monopoly of a product in the market. 2. Competition with other Manufacturers: When there is tough competition in the market, the effort of each firm will be to root out the other enterprises by offering large variety of products at cheaper rates. In such cases each enterprise will try to follow diversification and improving sales appeal. Simplification will be followed in case of monopoly of a product in the market. 3. Sales Price and Sales Volume: The simplification of product may decrease the sales appeal but it will certainly reduce the manufacturing cost which may result in higher sales volume. Diversification will lead to sales appeal but the manufacturing cost may go up. Thus sales volume will increase leading to the same profits. Advantages of Simplification: (1) Simplification reduces inventory stocks, since fewer types and sizes of raw materials are to be purchased so it results in better inventory control. (2) Simplification may lead to manufacturing cost reduction. (3) Less complex manufacturing techniques may be required. ...