pr0duct design.pptx
TRANSCRIPT
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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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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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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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Issues for Product Development Robust design
Modular design
Computer-aided designValue analysis
Environmentally friendly design
Time-Based competition
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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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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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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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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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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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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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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