NEW PRODUCT DESIGN

Course Instructor: Dr. Swati Singh Course: MBA- II Amity Business School

Dr. Swati Singh

IMITATION Product is copied from other popular or bestselling products that exist in market PRODUCT IMPROVEMENT Product is developed through improvement in the existing product like quality, features, style, packaging etc. PRODUCT INNOVATION New product, different from previous ones is launched

Dr. Swati Singh

Establishment of product characteristics like product features, quality, production costs and customer satisfaction How the product should be produced Design of the production system for achieving the production

Dr. Swati Singh

OBJECTIVES

Product Development Process Economic Analysis of Development Projects Designing for the Customer Design for Manufacturability Measuring Product Development Performance

Dr. Swati Singh

R&D Technological advances

MARKETING Customer needs Information on competitors & their products Desirability of specific product features

PROCESS ENGINEERING Production feasibility

PRODUCT ENGINEERING Product design Product safety Prototypes

Product Design

OPERATIONS Resource flexibility Product serviceability Process capabilities

LEGAL Legal environment Patents

PURCHASING Availability & cost of materials & subcomponents Supplier with design capabilities

FINANCE Available investment funds Finance feasibility Projected in-house production costs
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NEW PRODUCT DEVELOPMENT PROCESS

Need Identification

Advanced Product Planning

Advance Design

Detailed Engineering Design

Production Process, Design & Development

Product Evaluation & Improvement

Product Use & Support

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1. Need Identification

It gives way to idea generation

2. Advance Product Planning Market analysis regarding new product Clarify operational requirements Finalize conceptual design (e.g. Pen Length, strength, weight, color, price etc.) Requirements for producing, distributing & maintaining the product in market

3. Advanced Design
Detailed investigation for technical feasibility is done
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4. Detailed Engineering Design Design objectives are set in terms of: Functional Maintainability Productivity Safety Reliability

5. Production Process Design & Development Plans are made for material acquisition, production, warehousing, transportation & distribution 6. Product Evaluation & Improvement Real market experiences of the launch of the product are analyzed
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7. Product Use & Support Support for consumers using the product is planned Support may be in the form of: Providing warranty & repair services Education for user about specific application of product Upgrading the product Distributing replacement parts

Dr. Swati Singh

Categories of service Designs are:a) Mix of physical goods & intangible service More physical goods dominance- more engineering required e.g. Fast food chain b) Degree of standardization of service More standardization- lower customer contact- less expensive- quicker delivery e.g. Meals in railways, ATMs c) Degree of customer contact in delivering the service It influences & coordinates the nature & production process of service e.g. Beauty care, consultancy
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STAGES IN PRODUCT LIFE CYCLE & POSITIONING STRATEGIES

Maturity
High Standardized Very High Volume Product Focused Continuous

Decline

Sales in Units

Growth

Standardized Product High Volume Large Batches

Introduction
Shift Standardized Product Process Focused Small Batches

Custom Product Process Focused Very Low Volume

Time
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