1. NEW PRODUCT/SERVICE DESIGN AND PROUCT DEVELOPMENT

2. 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

3. 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

4. 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

6. 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

7. 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

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

9. 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

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

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

12. 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

13. 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

14. 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

16. 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

17. 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

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

19. 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

20. Product Development
Creation
Innovation
Improvement
Enhancing Utility

21. 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.

22. 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

23. 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

24. 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

25. 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

26. 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

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

28. 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.”

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

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

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

32. 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

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

34. THANK YOU