NEW PRODUCT/SERVICE DESIGN AND PROUCT DEVELOPMENT

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

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

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

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

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

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