pr0duct design.pptx

7/30/2019 pr0duct design.pptx

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DESIGN OF GOODS & SERVICES


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What is a product? Need-satisfying offering of an organization

Example

P&G does not sell laundry detergent P&G sells the benefit of clean clothes

Customers buy satisfaction, not parts

May be a good or a service

Product decision(selection, definition & design ofproducts)


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Goods & Services SelectionProduct strategy options:

Differentiation Low Cost

Rapid response


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Introduction

Growth

Maturity Decline

Product Life Cycle


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1. IntroductionExpenditures are required for

research

product development process modification and enhancement

supplier development

Best period to increase market share

Product design & development is criticalHigh production cost


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2. Growth Product design begins to stabilize

Practical to change price/quality image

Effective forecasting of capacity becomes necessaryAdding or enhancing capacity may be necessary

Enhance distribution


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3. Maturity Competitors now established

High volume, innovative production may be needed

Improved cost control, reduction in options, paringdown of product line

Poor time to change image, price or quality

Defend market position

Optimum capacity


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4. Decline Cost critical

Reduce capacity and cost minimization

Unless product makes a special contribution, mustplan to terminate offering


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Lists products in descending order of their individualdollar contribution to the firm.

helps to identify appropriate priorities. Helps management to evaluate alternative strategies.

Product-by-Value Analysis


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Brainstorming

Economic change

Sociological and demographic change

Technological change

Political or legal change

Generation of New Product

Opportunities


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Product Development Stages Idea generationAssessment of firms ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market

Introduction to Market Evaluation

Scopeofproductdevelopment

team

Scope of design formanufacturabilityand valueengineering teams


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Quality Function Deployment Process for determining customer requirements and

translating them into attributes that each functionalarea can understand and implement.

House of quality

Part/tool of QFD process that utilizes a planning

matrix to relate customer wants to how the firm isgoing to meet those.


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5-13

Building house of quality Identify customerwants

Identifyhowthe good/service will satisfy customerwants

Relate customerwantsto product hows Identify relationships between the firms hows

Develop importance ratings

Evaluate competing products

Determine desirable technical attributes &performance


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5-14

Organizing for Product

DevelopmentHistorically distinct departments

Duties and responsibilities are defined

Difficult to foster forward thinkingAssigning manager

Today team approach

Representatives from all disciplines or functions

Concurrent engineering cross functional team


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5-15

Issues for Product Development Robust design

Modular design

Computer-aided designValue analysis

Environmentally friendly design

Time-Based competition


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5-16

Robust Design Design can be produced to requirements even with

unfavorable conditions

Product is designed so that small variations inproduction or assembly do not adversely affect theproduct


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5-17

Modular Design Parts/components are divided into modules that can

be easily interchanged or replaced.

Products designed in easily segmented components.Adds flexibility to both production and marketing.


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5-18

Designing products ata computer terminal or

work station Design engineer

develops roughsketch of product

Uses computer todraw product

Often used with CAM

1995 Corel Corp.

Computer Aided Design (CAD)


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5-19

Shorter design time

Save time and money

Database availability New capabilities

Example: Focus more on new product ideas

Improved product quality

Reduced production costs

Speed and ease of design development and analysis

Benefits of CAD/CAM


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5-20

Virtual RealityVirtual form of communication in which images

substitute for reality and allow to respondinteractively.

Computer technology used to develop an interactive,3-D model of a product.

Especially helpful in design of layouts (factory, store,

home, office)


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5-21

Value Analysis Review of successful products

Focuses on design improvement during production

Seeks improvements leading either to a better productor a product which can be more economicallyproduced.


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5-22

Environmentally Friendly Designs Goals or Benefits Safe and environmentally sound products

Minimum raw material and energy waste

Product differentiation Cost-effective compliance with environmental

regulations

Recognition as good corporate citizen


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Green Manufacturing Make products recyclable

Use recycled materials

Use less harmful ingredients Use lighter components

Use less energy

Use less material


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Time-based Competition Product life cycles are becoming shorter.

Competition is based on time; rapidly develop andlaunch the products into market

Faster developers of new products gain on slowerdevelopers and obtain a competitive advantage


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Acquisition

Joint Ventures

Alliances

pr0duct design.pptx

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