NEW PRODUCT/SERVICE DESIGN AND PROUCT DEVELOPMENT

What is a PRODUCT??? A product is a service or an item which is offered for sale. PRODUCTS= Tangible Products + Intangible Products Goods Contracts Services

Provided by physical processing Provided by availability BASIS GOODS SERVICES CONTRACTS Value Provided by physical processing Provided by availability Provided by assurance of availability Tangibility Tangible; can be inspected for quality Intangible; cannot be inspected before consumption Intangible; absence of customer presence for a long time Process design Not in front of customer In the presence of customer As per demand requirement

Designed for average demand Designed for maximum demand BASIS GOODS SERVICES CONTRACT Capacity Designed for average demand Designed for maximum demand These are elastic to adjust Trans- portation Goods are transportable Service provider is transportable Depends upon time& availability Inventory Stored for later consumption Services are created Not in the presence of customer Location That minimises cost Located near to customer Centralisation and economies of scale

PHASES OF PRODUCT LIFE CYCLE INTRODUCTION PHASE Product is new to market and consumers Consumers have to be motivated to use and accept Sales are low Cost on launch is high GROWTH PHASE Modifications are done according to feedback Strong growth in sales and profit Overall amount of profits start increasing

MATURITY STAGE DECLINE STAGE Product is well established and has constant demand In this phase product delivers service satisfaction Any product modification might give a competitive edge DECLINE STAGE

WHEN SHOULD NEW PRODUCT DESIGN STARTS IN PRODUCT LIFE CYCLE??? Start of MATURITY STAGE Start of DECLINE

PRODUCT DESIGN According to B.S.Goel Design is the conversion of the knowledge and requirement into a form, convenient and suitable for use or manufacture. FORM DESIGN pattern and display of product FUNCTIONAL DESIGN operation of the product i.e. how it will be made

PRODUCT DESIGN INCLUDES... Package designing Product research Product development

Aspects of product design Designing of production Designing for function Designing for material Designing for selling

Objectives of product design Profits are generated Produce better quality products To make product efficient To make products as per needs of costumers To achieve customer satisfaction

IMPORTANCE OF GOOD PRODUCT DESIGN Customers look for better appearance Designing of the product act as a communication Designing forms a basis to revision Act as a key to success Good product design makes it easy to use at reasonable cost Improves marketability of product

SERVICE DESIGN Interaction between service provider & customer and material components in service in order to improve service quality. Anything which is created and delivered simultaneously for the client Two important issues: Degree of variation Degree of contact with customer

Features of service design Intangible Product High degree of customer contact The service package Substitute technology for people Getting the customer involved High level of customer attention

FACTORS DETERMINING PRODUCT DESIGN Needs and requirement of customer Convenience for use of operator Balance between functionality and satisfaction Materials and equipment’s requirements Production costs Quality of product Packaging of the product

Essentials Of Product Design Appearence Simplicity Reliability Reparability Availability Redesigning Capability Safety Functions

Approaches to Product Design Designing for Customisation Designing for Manufacturing & Assembly(DFMA) Designing for Supply chain management Designing for Mass Customisation Designing for Disposal Designing for Quality Designing for Automation Flexible Manufacturing System

Product Development Creation Innovation Improvement Enhancing Utility

Product Development “ Product development is a process of creation innovation ,utility enhancement , continous improvement in the features of existing product or development fo new product.” e.g. Modification Of Desktop Copmputers into Laptops.

Stages of New Product Development Idea Generation Market research Suggestion from Consumers & Suppliers Idea Screening Is it Necessary to intoduce new product Capacity of plant & machinery to produce new product Ability Of the market channel to sell the product

Concept Testing Testing of rough design Consumers Likes And Dislikes Business analysis Economic feasblity of product Contribution towards Profit and cost Prodcut Development Set the target price Collect feedback time consuming & expensive Stage

Testmarketing; Intoduce the product on very small scale At small market make changes Intoduce the product on large scale On faliure reject the prodcut Commercilaisation/Product launch; Launch the product Advertisement Distribute the prodcut Monitor the product

Tools For Product Development Simplification ; “ Simplification refers to the elimination of superflous varities ,sizes, dimensions.’’ Advantges; Eliminate wastage of material Increase efficency Provide quick Delivery Lowers Production Cost

Standardisation “Standardisation is a process of setting standard and uniform Characterstics for particular product and services.” Advantages Ensures campatability Eliminate wastage Encurage to produce quality product

Disadvantages; Worker may feel bored Rigidity Obstacles to progess Not suitable for small Business Difficult to introduce new model

Specialisation “Specialisation is a strategy which is used to target a specific market and work for the companies that are specialize in high quality product and have ability to satisfy the specific needs of different segment.”

Advantages; Improvement in the quality Wokers are specialised Increase in the output Disadvantages; Labour cost increase Labour become bored Rigid and Inflexible

Diversification “Diversification is a market strategy which is related to entering into new market and creatin new prodcut for the new market.”

Advantages; sale increase Eliminate the wastage Volume of the business increase Disadvantages; Process become quite expensive Time consuming Rquirement of skilled person

Other Requirement in Product Design Legal Requirement; Follow code of coduct Compensate for damages Ethical Requirement; Reduce the Product cost Predict requirement of the coustomers

Enviromental Requirement Enviroment Freindly Product Prevent use of harmful substances Minimise the enviroment and health impact of the product Enviroment friendly packaging

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