PRODUCT DESIGN

MGT 345
OBJECTIVE OF THIS TOPIC:

► Introduction to Product Design

► Product Development Stages
► Product Life Cycle (PLC)
► The Importance of Research and Development (R&D) in
Product Design
► Objectives of Research and Development (R&D)
INTRO TO PRODUCT DESIGN

► Product strategy may focus on developing a

competitive advantage via differentiation, low
cost, rapid response or a combination of these.

► An effective product strategy links product

decision with investment, market share and
product life cycle and defines the breadth of the
product line.
PRODUCT DEVELOPMENT
STAGES
Get ideas from many sources

Checking the firm ability to carry out ideas

Identify customer requirements to win orders

Identify functional specification: How the product will work?

Identify product specifications: How the product will be made?

Reviewing the design: Are these product specification the best way to meet customer
requirement?

Testing the market : Does product meet customer expectations?

PRODUCT LIFE CYCLE (PCL)

► Just as operations managers must be

prepared to develop new products, they
must also be prepared to develop
strategies for new and existing product.
► A firm, therefore should identifies
products or families of products and their
position in the life cycle in determining
the strategy for each product. Figure 2.2
below illustrates the diagram of PLC.
 Stages in the Product Life
Cycle

Innovation
Growth

Introduction Growth
rate

Maturity

Decline

2-6
 PRODUCT LIFE CYCLE (PCL)

Introductory Phase
►Need unusual expenditure for :
- Research
- Product Development
- Process Modification and Enhancement
- Supplier Development
► Growth Phase
► Product design has begun to stabilize and effective
forecasting of capacity requirements is necessary.
► Adding capacity or enhancing existing capacity to
accommodate the increase in product demand may be
necessary.
► Maturity Phase
► By the time a product is mature, competitors are
established.
► Innovative production at this stage may be necessary
► Add new features/ redesign
► Reasonable priced.
► Decline Phase
► Management may need to be ruthless with those
products whose life cycle is at the end.
► End the old product
► Replace with new product
 IMPORTANCE OF RESEARCH AND
DEVELOPMENT
► R&D Helps To Improve The Standard of Living to The Nation
► R&D Helps to Improve Market Share and Profitability
► Increase Technical Capability in Product Design
► To Respond Effectively in The Global Market
► Customer Demand for Better Products and Services
OBJECTIVES OF RESEARCH
AND DEVELOPMENT
► To create or design new product or service
► To find new uses to existing products
► To redesign the existing products
► To develop new processes that will help reduce capital
and manufacturing costs
► To improve the packaging of existing product.
TYPES OF RESEARCH

► Three types of research:

► Basic of Pure Research
► Applied Research
► Design and Engineering (D&E) Research
 Basic of Pure Research

► It represents the original investigation for the

advancement of scientific knowledge and that does not
have specific commercial objectives
► It is the kind of research that is concerned with the
search for fundamental knowledge. It involves exploring
into new discoveries and the result will be in the form
of information. Large companies and universities usually
carry out pure research.
Applied Research

► It represents research projects that represents

investigation directed towards the discovery of new
scientific knowledge. It is directed toward solving
specific problems as well as developing certain product
and processes. It involves research for knowledge with
intention to produce product against predetermined
specification
Design And Engineering
Research
► It involves engineering work that is systematic study of
every element of cost in a part, material or product to
ensure that it fulfills its function at the lowest total
cost. It refers to the actual development of the product.
D&E refer to the activities geared to creating and
developing the physical form of the product.
► Development and design research is a combination of
pure and applied researh.