HDF SCHOOL OF MANAGEMENT

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Superior Products, Services and Process

By

Mahima Prasad

HDF SCHOOL OF MANAGEMENT

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Plan of Presentation

Objective Basic concept Attractive market segment & competition Maintaining competitive advantage Organisation for Production The Process of new product

development/Improvement

HDF SCHOOL OF MANAGEMENT

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Objectives

To demonstrate how an organization moving towards total quality needs to begin with the market, its customers, and produce goods ad services that consistently satisfy customers , and keep competitors at bay.

To spell out the approaches an organization has to pursue in order to produce goods and services that are truly world-class, and sufficiently in demand to provide for an organization’s competitive advantage.

Basic Concept

• Product

• Service

• Process

HDF SCHOOL OF MANAGEMENT

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Attractive market segment & competition

GOVT Technological& Changes

RegulatoryIntervention

Growth and Volatility of market demand

The extent of

direct

rivalry

among

competing firms

The Bargaining power of customers

The threat of

substitute

products or

services

The threat

of

new

entrants to

the market

The Bargaining power of supplier

Maintaining competitive advantage

• Objective of competitive advantage is to make a profit.

• Profit based on providing value to customers.

• Achievable and sustainable.

How can a business assure value to customers?

A good competitor knows:

• Which products and services it offers.

• Who its customers are.

• Who its competitors are.

Sources of relevant information

a. Feedback on the performance of current products

b. Customer complaints

c. Reports of market research agencies

d. Data obtained by a firm’s own marketing research department

Product Design Process

Step 1 - Idea Development - Someone thinks of a need and a product/service design to satisfy it: customers, marketing, engineering, competitors, benchmarking, reverse engineering

Step 2 - Product Screening - Every business needs a formal/structured evaluation process: fit with facility and labor skills, size of market, contribution margin, break-even analysis, return on sales

Step 3 – Preliminary Design and Testing - Technical specifications are developed, prototypes built, testing starts

Step 4 – Final Design - Final design based on test results, facility, equipment, material, & labor skills defined, suppliers identified

The Process of new product development/Improvement

a. Conception and feasibility phase

b. Detailed design phase

c. Execution phase

a:Prototype testing

b:Test marketing

a. pre-production phase

b. Customer use

The importance of design reviews

It meets all the specified performance criteria

It reflects the “blueprint” for a product or a service

It meets all the statutory requirement that might be associated with the product or it’s operating conditions

It is detailed to provide information on using conditions and maintenance schedules

Tools for effective product development

1:Quality function deployment matrix

2:Value analysis matrix

3:Failure mode and effect analysis(FMEA)

4:Fault tree analysis