INTRODUCTION

TO
PRODUCT DESIGN

PRESENTED BY-
1st BATCH
B.TECH 3rd year
 OUTLINE
 PRODUCT DESIGN
 STRATEGIES OF NEW PRODUCT
INTRODUCTION
 NEW PRODUCT DEVELOPMENT PROCESS
 CROSS FUNCTIONAL PRODUCT DESIGN
 VALUE ANALYSIS
 AIM OF PRODUCT DESIGN
* If a product is to achieve customer satisfaction,it
must have the combined characteristics of good
design,competitive pricing and the ability to fill
market need.
 PRODUCT DESIGN

Product design – it is the process of deciding on the unique

characteristics and features of the company’s product.
Product design defines a product’s characteristics such as its
appearance,the materials it is made of,its dimensions and
tolerances,and its performance standards.
Product design supports -its manufacturability(the ease with
which a product can be made)
Product design brings together marketing analysts,sales
,
forecasters,engineers,finance experts and other members of a
company to think and plan strategically.
 PRODUCT DESIGN
Stages of product design:
* Functional design (form, shape, size, materials,
etc.)
* Process design (processing technology and
tooling)
* Production design (production line & plant
layout)
 PROCESS SELECTION
 Process selection-it is necessary to realize the
product design.
* product design and process selection affect
product quality,product cost,and customer
satisfaction.
 Linking Product Design & Process
Selection
* Product design and process selection are directly linked
* Type of product selected defines type of operation
required
* Type of operation available defines broader
organizational aspects such as
* Equipment required
* Facility arrangement
* Organizational structure
 Product Design and Process Selection
Across the Organization
* Strategic and financial aspects of product design
and process selection mandates operations
work closely across the organization
* Marketing is impacted by product that is
produced
* Finance is integral to the product design and
process selection issues due to frequent large
financial outlays
 Nature of Product Demand
* Demand
* fluctuates over time and
* is affected by product price, so pricing decisions and the choice
of processes must be synchronized.
* Therefore,
* Production processes must have adequate capacity to produce
the volume of the products that customers need.
* Provisions must be made for expanding or contracting capacity
to keep pace with demand patterns.
 Production Flexibility
Product flexibility -- ability of the production
system to quickly change from producing one
product to another.
Volume flexibility -- ability to quickly increase or
reduce the volume of product produced.
 Product Quality
* Old viewpoint
* High-quality products must be made in small
quantities by expert craftsmen
* New viewpoint
* High-quality products can be mass-produced
using automated machinery
* Automated machinery can produce products of
incredible uniformity
* The choice of design of production processes
is affected by the need for superior quality.
 Designing for Ease of Production
* Ease of production (Manufacturability)
* Specifications - Precise information about the
characteristics of the product
* Tolerances - Minimum & maximum limits on a
dimension that allows the item to function as
designed
* Standardization - Reduce variety among a group
of products or parts
* Simplification - Reduce or eliminate the
complexity of a part or product
 Designing for Quality
* Crucial element of product design is its impact
on quality
* Quality is determined by the customer’s
perception of the degree of excellence of the
product’s characteristics
 Impact of Product Design

* Product quality
* Production cost
* Customer satisfaction
 BASIC STRATEGIES
* Three basic strategies include:
* Make-to-stock; in anticipation of demand
* Assemble-to-order; built from standard
components on order
* Make-to-order; produce to customer
specification at time of order
PRODUCT STRATEGY OPTIONS
STRATEGIES OF NEW PRODUCT
INTRODUCTION
* Market Pull (“We Make What We Can Sell”)
food industry

* Technology Push (“We Sell What We Can Make”)

electronics
STRATEGIES OF NEW PRODUCT
INTRODUCTION
* the activities a company engages in and the
decisions a company makes must support its
business strategy.
* a company’s product design must match the
needs and preferences of the customer group
targeted by the companies business
strategy.otherwise,the company will lose its
customer base and erode its market position.
 NEW PRODUCT DEVELOPMENT
PROCESS
 IDEA DEVELOPMENT
 PRODUCT SCREENING
 PRELIMINARY DESIGN AND TESTING
 FINAL DESIGN
 IDEA DEVELOPMENT
 From product manager who spends time with
customers and has a sense of what customer
wants.
 From engineers
 From customers
 From competitors
* a way of using competitors ideas is to buy a
competitors new product and study its design
features.this process is called reverse
engineering.
 PRODUCT SCREENING
 Operations
 Marketing
 Finance
* a decision making tool to help us evaluate new
product ideas.popular one is break even
analysis.
* this technique computes the quantity of goods
a company needs to sell just to cover its costs
or break even called the break even point.
 Product Life Cycle also affects
decisions
* Product life cycle – series
of changing product
demand
* Consider product
life cycle stages
* Introduction
* Growth
* Maturity
* Decline
* Facility & process
investment depends on life
cycle
 Break Even Analysis
* Break-even analysis considers two functions of Q
* Total cost – sum of fixed and variable cost
Total cost = F + (VC)*Q

* Revenue – amount of money brought in from sales

Revenue = (SP) * Q

Q = number of units sold

 Break Even Analyasis
Computes the quantity of goods company
needs to sell to cover its costs
QBE = F/ (SP - VC)
QBE – Break even quantity
F – Fixed costs
SP – selling price/unit
VC – Variable cost
 Break Even Analysis:Graphical
Approach
* Compute quantity of goods that
must be sold to break-even
* Compute total revenue at an
assumed selling price
* Compute fixed cost and variable
cost for several quantities
* Plot the total revenue line and
the total cost line
* Intersection is break-even
* Sensitivity analysis can be done
to examine changes in all of the
assumptions made
 Example of Break Even Analysis
A person run a manufacturing business that is
involved in manufacturing and selling a single
product. The annual fixed expenses to run the
business are $15,000 and variable expenses are
$7.50 per unit. The sale price of the product is
$15 per unit. The number of units to be sold to
break even can be easily calculated using
equation method:
Sp × Q = Ve × Q + Fe
15 × Q = 7.5 × Q + 15,000
15 Q = 7.5 Q + 15,000
 PRELIMINARY DESIGN AND
TESTING
* after screening stage, preliminary design and
testing begins.
* prototypes are build and tested.
Ex:-fast-food restaurants are known for this type
of testing where a new menu item be tested.
 FINAL DESIGN-after testing final design of the
product is made.
 Steps in Developing New Products
1. Technical and economic feasibility studies
2. Prototype design
3. Performance testing of prototype
4. Market sensing/evaluation and economic
evaluation of the prototype
5. Design of production model
6. Continuous modification of production model
 Steps in Developing New Products
1. Technical and Economic Feasibility Studies
* Determine the advisability of establishing a
project for developing the product
* If initial feasibility studies are favorable,
engineers prepare an initial prototype design
 Steps in Developing New Products
2. Prototype Design
* This design should exhibit the basic form, fit,
and function of the final product
* It will not necessarily be identical to the
production model
 Steps in Developing New Products
3. Performance Testing of Prototype
* Performance testing and redesign of the
prototype continues until this design-test-
redesign process produces a satisfactorily
performing prototype
 Steps in Developing New Products
4. Market Sensing/Evaluation and Economic
Evaluation of the Prototype
* Accomplished by demonstrations to potential
customers, market test, or market surveys
* If the response to the prototype is favorable,
economic evaluation of the prototype is
performed to estimate production volume,
costs, and profits
* If the economic evaluation is favorable, the
project enters the production design
phase.
 Steps in Developing New Products
5. Design of Production Model
* The initial design of the production model will
not be the final design; the model will evolve
 Steps in Developing New Products
6. Continuous Modification of Production Model
Production designs are continuously modified to:
* Adapt to changing market conditions
* Adapt to changing production technology
* Allow for manufacturing improvements
 Managing New Product
Development Projects
* About 5% of all new-product ideas survive to
production, and only about 10% of these are
successful.
* It is best to cancel unpromising new-
product development projects early!
* Employees often become emotionally caught up
in these projects and are overly optimistic
 Getting New Products to Market
Faster
* Speed creates competitive advantages
* Speed saves money
* Tools to improve speed:
Autonomous design and development teams
Computer-aided design/computer-aided
manufacturing (CAD/CAM)
Simultaneous (concurrent) engineering
 Improving the Design
of Existing Products
* Focus is improving performance, quality, and
cost
* Objective is maintaining or improving market
share of maturing products
* Little changes can be significant
* Small, steady (continuous) improvements can
add up to huge long-term improvements
* Value analysis is practiced, meaning design
features are examined in terms of their
cost(value).
 CROSS FUNCTIONAL PRODUCT
DESIGN
* Traditionally, individual functional areas
(engineering, operations, marketing) operate without
consulting each other. This is the sequential or ‘over
the wall’ approach.
* Often results in misalignment.
* Concurrent approach requires the various
functional areas to cooperate and work together in
the same time frame.
 CONCURRENT ENGINEERING
* also known as simultaneous engineering
* is primarily an expression of the intention to
increase competitiveness by decreasing lead
time,while still improving quality and cost
* is a system in which various engineering
activities in the product production and
development process are integrated and
performed as much as possible in parallel rather
than in sequence
* its implementation means multi-functional teams
cooperate in the early stages(i.e.,design stage)
 CONCURRENT ENGINEERING

Old “over-the-wall”
sequential design process
should not be used
Each function did its work and
passed it to the next function

Replace with a Concurrent

Engineering process
All functions form a design team
that develops specifications,
involves customers early, solves
potential problems, reduces
costs, & shortens time to
market
Why don’t different functional areas
cooperate?
* They don’t speak the same language.
* They have different performance measures.
* They tend to have different personality types,
i.e., they don’t think alike.
* They are in different physical locations.
* They “don’t have time.”
 VALUE ANALYSIS

* Terms in Value Analysis:

* Objective: primary purpose of the product
* Basic Function: Makes the objective possible
* Secondary Function: How to perform the basic function

* Value analysis seeks to improve the secondary

function, e.g., how to open a can or make a tool box.
 Objectives of Value Analysis
* Enhance the design of a good to provide higher quality
at the same price, or the same quality at a lower price.

* Modify the design of production process to lower the

cost of a product while maintaining or improving quality.

* In other words, improve the ratio of usefulness (quality)

to cost.
 VALUE ANALYSIS
* It is defined as a method used for
systematically improving the “value” of goods or
products,especially in terms of their functions.
* VA turned out to be a very important means for
improving the quality and reducing the costs of
products in companies.
 Value analysis problem can be solved by :
* an organized review
* a function oriented approach
* creative thinking
 EFFECT OF VALUE ANALYSIS
* Instead of cutting costs to make an item
cheaper this approach determines the worth of
the basic function and a target cost is set and
the design alternatives meeting all function
needs at a lower overall cost are identified.
* The value analysis process enables the
company to eliminate weaknesses at the time
when production already starts and therefore it
stops paying for activities,which are of no value
for the buyer,but only create costs,which are
transferred to the buyer.