PRODUCT DEVELOPMENT PROCESS Presented By: Mohsin Ali Supervisor: Dr. Nazeer Anjum Outline • Introduction of Topic-Product Development Process • Product and Process Cycles • Organization for Design and Product Development • Markets and Marketing • Technological Inovation Product Development Process 1- Planning 2- Concept Development 3- System-level Design 4- Detail Design 5- Testing and Refinement 6- Production Ramp-up Product Development Process • Factors for Success Cost vs Price Profit = Product Price - Product Cost Key Factors for Success of Product in Market • Quality, Performance and Price • Cost to manufacture over its life-cycle • Cost of product development • Time required to bring the product to the market Product Development Process Factors for Success Conti… Product Development Process • Static Vs Dynamic Products Static Products Design Change v Long Time (Automobiles) Dynamic Products Design Change Short Time (Mobiles/Software) • Variants of PDP Market Pull Technology Push Product And Process Cycles Product And Process Cycles • Technology Development and Insertion Cycle Product And Process Cycles • Process Development Cycle • Can be classified in 03 x classes based on number of parts that can handle Uncoordinated development: The process is composed of generalpurpose equipment with a high degree of flexibility, similar to a batch process. Segmental : The manufacturing system is designed to achieve higher levels of efficiency in order to take advantage of increasing product standardization. This results in a high level of automation and process control. Systemic: The product has reached such a high level of standardization that every process step can be described precisely, as on an assembly line. ORGANIZATION FOR DESIGN AND PRODUCT DEVELOPMENT Organization For Design And Product Development An important aspect of how an enterprise should be organized is concerned with the links between individuals. These links have to do with: Reporting relationships: A subordinate is concerned about who his or her supervisor is! Financial arrangements: Another type of link is budgetary. The source of funds to advance the project, and who controls these funds!. Physical arrangement: Studies have shown that communication between individuals is enhanced if their offices are within 50 feet of each other. Organization For Design And Product Development • Organization Types based on Product Development Organization by Functions Organization by Projects Hybrid Organization Organization For Design And Product Development Organization by Functions Organization For Design And Product Development Organization by Projects Organization For Design And Product Development Hybrid Organization Organization For Design And Product Development Concurrent Engineering Teams The conventional way of doing product design has been to carry out all of the steps serially. Thus, product concept, product design, and product testing have been done prior to process planning, manufacturing system design, and production. Starting in the 1980s, as companies met increasing competitive pressure, a new approach to integrated product design evolved, which is called concurrent engineering. The impetus came chiefly from the desire to shorten product development time, but other drivers were the improvement of quality and the reduction of product lifecycle costs. MARKETS AND MARKETING Markets And Marketing • Marketing is concerned with the interaction between the corporation and the customer. • Customers are the people or organizations that purchase products. • Customer Vs Product User • Marketing is concerned with the interaction between the corporation and the customer. Customers are the people or organizations that purchase products specification for a highly weldable grade of steel is the end user Markets And Marketing • Market The market is an economic construct to identify those persons or organizations that have an interest in purchasing or selling a particular product, and to create an arena for their transactions. History Multinational Market Models Ford Vs Toyota/Hunda Markets And Marketing • Market Segmentation Which segments of the total market the product is intended to serve. There are many ways to segment a market. Markets And Marketing • Market Segmentation Conti… Cooper suggests that four broad categories of variables are useful in segmenting a market. State of Being Sociological factors—age, gender, income, occupation For industrial products—company size, industry classification (SIC code), nature of the buying organization Location—urban, suburban, rural; regions of the country or world State of Mind—This category attempts to describe the attitudes, values, and lifestyles of potential customers. Product Usage—looks at how the product is bought or sold Heavy user; light user; nonuser Loyalty: to your brand; to competitor’s brand; indifferent Benefit Segmentation—attempts to identify the benefits people perceive in buying the product. This is particularly important when introducing a new product. When the target market is identified with benefits in mind, it allows the product developers to add features that will provide those benefits. Markets And Marketing Functions of a Marketing Department The marketing department in a company creates and manages the company’s relationship with its customers. It is the company’s window on the world with its customers Tasks preliminary marketing assessment a quick scoping of the potential sales Competition market share at the very early stages of the product development TECHNOLOGICAL INNOVATION Technological Innovation Many of the products that engineers are developing today are the result of new technology. What You thing Is biggest Invention of 19th Century! Generally, the advancement of technology occurs in three stages: Invention: The creative act whereby an idea is conceived, articulated, and recorded. Innovation: The process by which an invention or idea is brought into successful practice and is utilized by the economy. Diffusion: The successive and widespread implementation and adoption of successful innovations. Technological Innovation Business Strategies Related to Innovation and Product Development A common and colorful terminology for describing business strategy dealing with innovation and investment was advanced by the Boston Consulting Group in the 1970s. Most established companies have a portfolio of businesses, usually called business units. According to the BCG scheme, these business units can be placed into one of four categories, depending on their prospects for sales growth and gain in market share. Star businesses: High sales growth potential, high market share potential Wildcat businesses : High sales growth potential, low market share Cash-cow businesses : Low growth potential, high market share Dog businesses: Low growth potential, low market share Technological Innovation • Characteristics of Innovative People There are five behavioral types of people who are needed in a product team devoted to technological innovation. • Idea generator: The creative individual Entrepreneur: The person who “carries the ball” and takes the risks Gatekeepers: People who provide technical communication from outside to inside the product development organization Program manager: The person who manages without inhibiting creativity Sponsor: The person who provides financial and moral support, often senior management or a venture capital company Technological Innovation • Types of Technology Innovation Need-driven innovation, where the development team seeks to fill an identified gap in performance or product cost (technology pull) Radical innovation, which leads to widespread change and a whole new technology, and arises from basic research (technology push)
