2. Product Generation a.k.a. Product Management Ken Homa

3. Product Generation New Product Development Product / Process Linkage Product Line Management Branding Strategy

4. Product Life Cycle Typical pattern, highly varied …by product, geography Cash flow critical …Mature ‘lend’, growth ‘borrow’ Manage the PLC …Differentiated tactics …Revitalization

5. “Owning a customers’ lifetime profitability requires a full line that keeps competitors out. The incremental costs of line extensions are low & computers handle the complexity.” Product Line Mangement The Issue

6. “Owning a customers’ lifetime profitability requires a full line that keeps competitors out. The incremental costs of line extensions are low & computers handle the complexity.” “Pareto lives. Stay focused and simplify. Pick your winning products and customers, bet big on them, and be willing to walk away from some business.” Product Line Mangement The Issue

7. A broad product line is required to fully cover all (or most) customer / market requirements...and to erect barriers from competition...and to erect barriers from competition. Product Line Management The Issue

8. A broad product line is required to fully cover all (or most) customer / market requirements...and to erect barriers from competition. But, complexity & costs increase exponentially as product lines get long Product Line Management The Issue

9. Product Line Proliferation Size, color, pack Special & derivative models Accessories Ancillary products Multiple generations Combinations & permutations...

10. Power Tools The evolution of a product line... DRILLS SAWS OTHER

11. Power Tools DRILLS SAWS OTHER PROFESSIONAL CONSUMER

12. Power Tools DRILLS SAWS OTHER PROFESSIONAL CONSUMER GOOD BETTER BEST

13. Power Tools DRILLS SAWS OTHER CORDLESS (DC) CORDED (AC) GOOD BETTER BEST PROFESSIONAL CONSUMER

14. Power Tools FEATURES SIZES COLORS PACKS Variable speed 1/4”, 3/8”. 1/2” drills Pro black DeWalt yellow Redistribution, Kits

15. Power Tools Strategic Models Supplementary Brands Complementary Products Accessories Global / Regional Models Flagships, fighters, derivatives Sub-brands, private label Cordless tools, chargers Drill bits, saw blades 110/240 V Generational Recycling...

16. Product Line Management Breadth & Depth of Line Key : product line / item profitability …Imprecise, but enlightening

17. Product Line Management Breadth & Depth of Line Key : product line / item profitability Each and every item has associated costs : some visible, some hidden …Cannibalization …Inventory …Administration …Repair parts

18. Product Line Management Breadth & Depth of Line Key : product line / item profitability Each and every item has associated costs : some visible, some hidden Paretoisalive, well... andapplicable Pareto is alive, well... and applicable … Rule of 80 / 20

19. Product line management Keys to Success Strive for shortest line Strive for shortest line Treat incremental items as major decisions

20. Product line management Keys to Success Strive for shortest line Watch for “line creep” Especially when new generations launched

21. Product line management Keys to Success Strive for shortest line Watch for “line creep” Prune aggressively Tie pay to line profitability

22. Product line management Keys to Success Strive for shortest line Watch for “line creep” Prune aggressively Link product & process design Mass customization

23. Design Elements Technical Efficacy Innovation Functionality Ergonomics Aesthetics Manufacturability

24. Design Elements Technical Efficacy Innovation Functionality Ergonomics Aesthetics Manufacturability

25. Product / Process Linkage Mass Customization Common components Standardized parts Modularplatforms Modular platforms “Virtual inventory”Postponement End of line customization More RIP... less FG... faster cycles