ch-3 (product planning nband design)

8/12/2019 Ch-3 (Product Planning nband Design)

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PRODUCTPLANNING

DESIGN


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PRODUCT

A product means anything that can offered to a

consumer or market that satisfy the needs or want of

end users.

Product may be tangible( physical product likecomputer) and non tangible ( non physical like

Insurance).

Product can be consumer oriented or business oriented.Designing new products and getting them to market is

the challenge facing manufacturers.


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FEATURES OF PRODUCT PLANNING

Systematic decision making

Each Product consists of a bundle of attributes

Product is capable of exchange

Company have to consider market,

competition , product performance at time of

product planning.Main objective to satisfy customer wants


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Product

Planning

Product Strategy- Product Plans

TargetMarkets

Product

Pricing

Corporate Strategy- Mission, vision

Growth Plans

Financial Review- Companys Perf.

Sales channel Perf

Market Review- SWOT Analysis

Customer Needs


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ROLE OF OPERATIONS MANAGEMENT AT THE

TIME OF PRODUCT PLANNING

Understand market and competitors

situation, evaluate business opportunity

and potential risk Identify new product need

Define and manage the product mix on

the basis of companysstrategic plans

Manage the product pricing and monitor

the profit level and discount factor


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BENEFITS/ADVANTAGES OF PRODUCT

PLANNING

Rapid response to Market Fluctuations.

Reduction in Material Waste and TechnicalDebt.

Manage Risk and increase predictability andquality.

Full visibility into organizational resources sothat the company can make better businessdecisions.

Prioritize resources and investments to driveinnovations.


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PRODUCT DESIGN

Concerned with the form (Shapes and

appearances) function(Working) of a product.

Refers to the arrangement of elements or parts

that collectively form a product.

Design in its broadest sense includes, thewhole development of the product through all the

preliminary stages until actual manufacturing

begins. C.S. Deverall


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SOME WELL KNOWN COMPANIES HAVING COMPETITIVE

ADVANTAGE THROUGH THEIR PRODUCTS

Organizations provide goods and services for the society.

Great products are key to the success. They provide

competi tive advantage.

Honda:engine technologyMicrosoft: PC software

Intel: Microprocessors

Michelin:Tires

Dell Computer:Customized hardware and software and

Dell does this very fast.


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SOME WELL KNOWN COMPANIES HAVING

COMPETITIVE ADVANTAGE THROUGH THEIR

PRODUCTS

Toyotas competitive advantage is rapid response to changingcustomer demand. Their shorter design time (less than 2 years

which is below the industry standard) gives them a competitive

advantage.Regal Marine: introduces six new boats a year.

Hospitalsspecialize to gain competitive advantage ,

- maternity hospitals, (narlMaternity Hospital)

- children hospitals,

- EKOL (Throat, nose and ear hospital in ili,zmir)


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REASONS FOR PRODUCT DESIGN

Offer new products to remain competitive inthe market.

Make business grow and increase profits.

To improve product quality.

To achieve cost reduction in labor and

materials.


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OBJECTIVES OF PRODUCT DESIGN

Profit generation

To Achieve product quality

To reduce cost of the product

To ensure manufacturability


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FACTORS INFLUENCING PRODUCT

DESIGN

Customers Requirements.

Convenience of operators or users.

Trade off between function and form. Material Requirements

Work Methods and equipment.

Cost/Price ratio.

Effect on existing product.

Packaging


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CHARACTERISTICS OF GOOD DESIGN

Functions or performance

Appearance or Aesthetics

Redesigning Capability

Maintainability

Availability

Standardization

Warranties & Specification

Reliability

Safety


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ISSUES CONCERNING WITH PRODUCT DESIGN

A)Robust Design

B)Modular Design

C)Computer aided Design(CAD)D)Computer Aided Manufacturing (CAM)

E) Value analysis


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ROBUST DESIGN

Results in design which performs optimally

under the variable or uncertain operatingconditions.

Product is designed so that small variations

in production or assembly do not adverselyaffect the product

Typically results in lower cost and higher

quality Making the product or process insensitive to

variation.


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ROBUST CTD..

This variation (sometimes called noise) can come from a varietyof factors : internal variation, external variation, and unit to

unit variation. Internal variation is due to deteriorationsuch asthe wear of a machine, and aging of materials. External variationis from factor relating to environmental conditions such astemperature, humidity and dust. Unit to Unit variation isvariations between parts due to variations in material, processes

and equipment.

Examples of robust design include umbrella fabric that will notdeteriorate when exposed to varying environments (externalvariation), food products that have long shelf lives (internalvariation), and replacement parts that will fit properly (unit to unit

variation).


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MODULAR DESIGN

Creation of products from some combination of

basic, pre existing subsystems.

Products designed in easily segmentedcomponents

Adds flexibility to both production and

marketing Improved ability to satisfy customer

requirements


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MODULAR CTD..

Examplesof modular systems are cars,

computers, process systems, and high rise

buildings

When you need some customization and additional

features, you will need to pay a little bit more

Computers use modularity to overcome changing

customer demands and to make the manufacturing

process more adaptive to change


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COMPUTER-AIDED DESIGN (CAD)

Use of computer systems to assist in the creation, modification, analysis,

or optimization of a design.

CAD software is used to increase the productivity of the designer, improve thequality of design, improve communications through documentation, and to create

a database for manufacturing

Computer-aided design is used in many fields. Its use in designing

electronic systems is known as Electronic Design Automation or EDA.

In mechanical design it is known as Mechanical Design Automation

(MDA) or computer-aided drafting(CAD), which includes the process

of creating a technical drawing with the use of computer software.


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Using computers to design

products and prepare

engineering documentation

Shorter development cycles,

improved accuracy, lower

cost

Supports masscustomization

3-D Object Modeling

Small prototype

development

COMPUTER AIDED DESIGN (CAD)


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COMPUTER AIDED MANUFACTURING

Computer-aided manufacturing (CAM) is an applicationtechnology that uses computer software and machinery to facilitate

and automate manufacturing processes. CAM is the successor of

computer-aided engineering (CAE) and is often used in tandem

with computer-aided design (CAD).

CAM may present inadequacies in the following areas:

Manufacturing process and usage complexity

Product Lifecycle Management (PLM) and modern enterprise

integration

Machine process automation


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1. Better Product quality

2. Shorter design time3. Less Production cost

4. Database availability

BENEFITS OF CAD/CAM


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VIRTUAL REALITY TECHNOLOGY

Computer technology used to develop an

interactive, 3-D model of a product from the

basic CAD data

Allows people to seethe finished design before

a physical model is built

Very effective in large-scale designs such as

plant layout


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ETHICS AND ENVIRONMENTALLY FRIENDLY

DESIGNS

It is possible to enhance productivity, drive downcosts, and preserve resources.

Effective at any stage of the product life cycle

Design Production

Destruction


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GUIDELINES FOR ENVIRONMENTALLY FRIENDLY

DESIGNS

1. Make products recyclable

2. Use recycled materials

3. Use less harmful ingredients(Using soy-based inks)

4. Use lighter components

Mercedes is using banana plant fiber for car exteriors

Biodegradable and lightweight

5. Use less energy

6. Use less material


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OM STRATEGIES NEED TO BE SENSITIVE TO LIMITED

ENVIROMENTAL RESOURCES

Design: Nikes new Air Jordan Shoes

- very little chemical-based glue

- recycled outsoleProduction: Ban Roll-On

- repackaging in smaller cartons

Destruction: BMW

- recycles most of a car including plastic

components


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OPERATIONS AND THE LIFECYCLE


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OPERATIONS AND THE

LIFE CYCLE

Any business organization will have their product life cycles.

The operation management of the organization should always

keep watching

The new trends of people's taste or requirements, the availablelatest technology and competitor's new proposals

So that necessary actions can be taken in advance to decrease the

growth stage and increase the span of the maturity stage.

The type of operational decisions and selection procedures all

depends on the product of any organization plans to develop or

introduce into the market.


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FEATURES OF PLC

Each product may have a different life cycle.

PLC determined revenue earned by the firm

Contributes to strategic marketing planningPLC may help the firm to identify when a product

needs support, redesign, withdrawal etc.

Help in new product development planning


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STAGES OF LIFE CYCLE

2

Growth Decline

Time

Sales

IntroductionMaturity


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Introduction Stage Low Sales, High Cost per customer,Negative Profit

Growth Stage Rapidly Rising Sales, Average CostPer customer, Rising Profits, Buildawareness and interest in mass

market

Maturity Stage Peak sales, Low cost per customer,

High Profits, Diversify brand andmodels, Price to match best

competitors

Saturation Stage Low profits, Average cost percustomer, Repackaging and

formatting

Decline and Withdrawal Stage Declining sales, Low cost percustomer, Declining Profits, Phase out

weak items, Reduce to level needed to

retain hard core loyal customers

ch-3 (product planning nband design)

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