Anda di halaman 1dari 30

UNIT : 1

2 Marks

  • 1. Abbreviate PESTEL

PESTLE Analysis used to consider Political, Economic, Social, Technological, Legal and Environmental issues.

  • 2. Define strategic planning

Strategic planning is an organization's process of defining its high level plan to achieve one or more goals under conditions of uncertainty, or direction, and making decisions on allocating its resources to pursue this strategy.

  • 3. What is product definition?

Product definition is a method of understanding the need for the product, it comprises of customer, company and quality function deployment (QFD).

  • 4. Write any two economic factors affecting product development

    • a. Extremely dynamic market

    • b. Income levels

  • 5. Write any two types of product development

    • a. Enhancement product improvement

    • b. New product platform

  • 6. Abbreviate DMADV Define, Measure, Analyze, Design & Verify

  • 7. Abbreviate DMAIC Define, Measure, Analyze, Improve & Control

  • 8. Define PLM

  • Product lifecycle management (PLM) is the process of managing the entire lifecycle of a product from its conception, through design and manufacture, to service and disposal.

    • 9. Define verification and validation

    Verification and Validation are independent procedures that are used together for checking that a product, service, or system meets requirements and specifications and that it fulfills its intended purpose.

    10.

    Write any two political factors affecting product development

    • a. Company policies

    • b. Employment laws

    • 11. Write any two social factors affecting product development

      • a. Behavioral trend

      • b. Health trend

  • 12. Write any two technical factors affecting product development

    • a. Technology

    • b. Applications

  • 13. Write any two legal factors affecting product development

    • a. Regulations

    • b. Intellectual property trends

  • 14. List out the product development methodologies.

    • a. DMADV-Define, Measure, Analyze, Design & Verify

    • b. DMAIC-Define, Measure, Analyze, Improve & Control

  • 15. Which product methodology to be used at starting of new product development?

  • DMADV-Define, Measure, Analyze, Design & Verify, this methodology is used because of its gate and verification at every stage of product development.

    • 16. Which technique is commonly used for risk management?

      • a. FMEA-Failure mode effective analysis

    • 17. What is NPD?

    New product development (NPD) is a process to bring a product, which is completely new to the market. The NPD process involves market research and market analysis followed by generation of idea/s, etc.

    • 18. Draw product life cycle curve

    10. Write any two political factors affecting product development a. Company policies b. Employment laws 11.

    19.

    Define VOC

    Voice of the customer (VOC) is a term used to describe the in-depth process of capturing a customer's expectations, preferences and aversions. Voice of the Customer is a market research technique that produces a detailed set of customer wants and needs.

    • 20. Write any two components of PLM

      • a. Change management

      • b. Process management

    ______________________________________________________________________________

    6 marks and 10 Marks (Write as per the requirement of the question)

    • 1. Explain PESTLE briefly with an example.

    Political factors:

    The stability and structure of a country’s government gives a basis for interpreting future changes in the

    region’s political environment. Policy at the local or federal level can differ dramatically. These

    refer to government policy such as the degree of intervention in the economy. The analyses of the

    factors give rise to the following questions What goods and services does a government want to provide? To what extent does it believe in subsidizing firms? What are its priorities in terms of business support?

    Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system. Some of these Political factors include

    • Bureaucracy • Corruption • Environmental Law • Freedom of the Press • Government Type • Government Stability • labour Law • Political Change

    Economic factors:

    Economic indicators such as GDP, GNP, interest rate, consumer sentiment and others provide the way to the business people to understand the risks and opportunities available within the region.

    These include interest rates, taxation changes, economic growth, inflation and exchange rates. For example:

    Raise of price in terms of foreign money makes exporting more difficult Higher wage demands from employees and cost raise due to inflation Demand for a firm's products is boosted by higher national income growth. Some of the economic factors include Business cycles GNP trends (Gross National product) GDP(Gross domestic Product) Interest rates Inflation Unemployment Disposable income Globalization Government private sector relationships

    Social factors:

    In an organization, the top management people have strict definitions or policies between professional positions and responsibilities within a company. People with lower hierarchy are considered as democratic. Individualism indicates their members to make decisions independently and valuing their independence. Masculinity and femininity compare the culture’s emphasis on the quantity versus the quality of life. Long term orientation reveals the culture’s focus on the distant future rather than the short term orientation view of stressing the importance of the immediate present and past.

    Changes in social trends can impact on the demand for a firm's products and the availability and willingness of individuals to work. Attitudes towards health, career and environmental issues should be considered. For example, In the UK, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staffs are living longer. Ads have started to recruit older employees to tap into this growing labour pool for some firms. The ageing population also has impact on demand: For example, Demand for sheltered accommodation and medicines have increased whereas demand for toys is falling. Some of the social factors include

    • Population demographics • Income distribution • Social mobility • Lifestyle changes • Attitudes to work and leisure

    • Consumerism • Levels of education and training

    Technological factors:

    The level of technological advancement in a region can positively or negatively affect the opportunities available for a business. Consumers react to new technologies in different ways. The product diffusion curve, that segments technology consumers by their risk tolerance levels, is one tool that can be used to determine the likelihood of a product being adopted by the mainstream population. It segments the groups into five groups: innovators, early adopters, early majority, late majority, and laggards. New technologies create new products and new processes like MP3 players, computer games, online gambling and high definition TVs are all created by

    technological advances. Online shopping, bar coding and computer aided design are all improvements of better technology. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organizations providing the products. Some of the technological factors include

    • New discoveries • ICT developments • Speed of technology transfer • Rates of obsolescence • Research and Development • Patents and licenses

    Environmental factors:

    Environmental analysis involves aggregating and analysing weather patterns and climate cycles. Environments vary drastically in different areas of the globe depending on the ecosystem of the region. A rainy season in a region can affect the transportation systems which are active. Sometimes roadways and train lines are restricted in order to minimize damages to vehicles from mudslides, falling rocks or flooding. In developing countries, these cyclic weather patterns are more common where transportation infrastructure has to be modernized. Environmental factors include the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance. This external factor is becoming a significant issue for firms to consider because of major climate changes occurring due to global warming and with greater environmental awareness. The growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries (for example, more taxes being placed on air travel and the success of hybrid cars) and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities. Some of the Environmental factors include Environmental impact Environmental legislation Energy consumption

    Waste disposal Contamination Ecological Consequences Infrastructure Cyclic Weather

    Legal factors:

    In order to ensure that all laws and regulations are followed in an organization, it is better to

    consult an legal representative when doing business. Legal environments change between the district, city, state/province and national levels. Complexities within certain industries can have a strong influence on the ease of doing business, complicating administrative, financial, and regulatory processes, among others. These are related to the legal environment in which firms operate. In recent years in the UK there have been many significant legal changes that have affected firms' behaviour. For example,

    • The introduction of age discrimination and disability discrimination legislation, • An increase in the minimum wage and greater requirements for firms to recycle.

    Some of the laws or legal factors followed in an organization are as follows

    • Antitrust Law • Consumer Law • Discrimination Law • Employment Law • Health and Safety Laws • Industry/Domain specific laws and certifications • Intellectual Property Rights (IPR)

    Different categories of law include:

    Consumer laws; these are designed to protect customers against unfair practices such as misleading descriptions of the product Competition laws; these are aimed at protecting small firms against bullying by larger firms and ensuring customers are not exploited by firms with monopoly power Employment laws; these cover areas such as redundancy, dismissal, working hours and minimum wages. They aim to protect employees against the abuse of power by managers Health and safety legislation; these laws are aimed at ensuring the workplace is as safe as is reasonably practical. They cover issues such as training, reporting accidents and the appropriate provision of safety equipment

    Patent Litigation between Apple and Samsung:

    Apple Inc. v. Samsung Electronics Co., Ltd. was the first of a series of ongoing lawsuits between Apple Inc. and Samsung Electronics regarding the design of smartphones and tablet computers; between them, the companies made more than half of smartphones sold worldwide as of July 2012. In the spring of 2011, Apple began litigating against Samsung in patent infringement suits, while Apple and Motorola Mobility were already engaged in a patent war on several fronts. Apple's multinational litigation over technology patents became known as part of the mobile device "smartphone patent wars": extensive litigation in fierce competition in the global market for consumer mobile communications. By August 2011, Apple and Samsung were litigating 19 ongoing cases in nine countries; by October, the legal disputes expanded to ten countries.By July 2012, the two companies were still embroiled in more than 50 lawsuits around the globe, with billions of dollars in damages claimed between them. While Apple won a ruling in its favor in the U.S., Samsung won rulings in South Korea, Japan, and the UK. On June 4, 2013, Samsung won a limited ban from the U.S. International Trade Commission on sales of certain Apple products after the commission found Apple had violated a Samsung patent, but this was vetoed by U.S. Trade Representative Michael Froman.

    ______________________________________________________________________________

    • 2. Brief QFD and explain different phases involved

    Quality Function Deployment (QFD):

    To design a product well, a design teams needs to know what it is they are designing, and what

    the end-users will expect from it. Quality Function Deployment is a systematic approach to design based on a close awareness of customer desires, coupled with the integration of corporate functional groups. It consists in translating customer desires (for example, the ease of writing for a pen) into design characteristics (pen ink viscosity, pressure on ball-point) for each stage of the product development (Rosenthal, 1992). Ultimately the goal of QFD is to translate often subjective quality criteria into objective ones that can be quantified and measured and which can then be used to design and manufacture the product. It is a complimentary method for determining how and where priorities are to be assigned in product development. The intent is to employ objective procedures in increasing detail throughout the development of the product(Reilly, 1999). Quality Function Deployment was developed by Yoji Akao in Japan in 1966. By 1972 the power of the approach had been well demonstrated at the Mitsubishi Heavy Industries Kobe Shipyard (Sullivan, 1986) and in 1978 the first book on the subject was published in Japanese and then later translated into English in 1994

    • To prioritize spoken and unspoken customer wants and needs. • To translate these needs into technical characteristics and specifications.

    • To build and deliver a quality product or service by focusing everybody toward customer

    satisfaction.

    Since its introduction, Quality Function Deployment has helped to transform the way many companies:

    • Plan new products • Design product requirements • Determine process characteristics • Control the manufacturing process • Document already existing product specifications

    QFD uses some principles from Concurrent Engineering in that cross-functional teams are involved in all phases of product development. Each of the four phases in a QFD process uses a matrix to translate customer requirements from initial planning stages through production control (Becker Associates Inc, 2000). Each phase, or matrix, represents a more specific aspect of the product's requirements. Relationships between elements are evaluated for each phase. Only the most important aspects from each phase are deployed into the next matrix. The four phases of QFD are as follows

    Phase 1, Product Planning:

    Phase 1 is to build the House of Quality. Led by the marketing department, Phase 1, or product planning, is also called The House of Quality. Many organizations only get through this phase of a QFD process. Phase 1 documents customer requirements, warranty data, competitive opportunities, product measurements, competing product measures, and the technical ability of the organization to meet each customer requirement. Getting good data from the customer

    in Phase 1 is critical to the success of the entire QFD process.

    Phase 2, Product Design:

    This phase 2 is led by the engineering department. Product design requires creativity and innovative team ideas. Product concepts are created during this phase and part specifications are documented. Parts that are determined to be most important to meeting customer needs are then deployed into process planning, or Phase 3.

    Phase 3, Process Planning:

    Process planning comes next and is led by manufacturing engineering. During process planning,

    manufacturing processes are flowcharted and process parameters (or target values) are documented.

    Phase 4, Process Control:

    And finally, in production planning, performance indicators are created to monitor the

    production process, maintenance schedules, and skills training for operators. Also, in this phase decisions are made as to which process poses the most risk and controls are put in place to prevent failures. The quality assurance department in concert with manufacturing leads Phase

    4.

    ______________________________________________________________________________

    3.

    Write about product definition and process involved in defining the product

    A product can be described as an object which the producer or supplier offers to potential customer in exchange of something (conventionally money which is exchangeable as store of value). The product may be goods or service and this can be the next breakthrough computer chip, or a new holiday package built together by a travel agent.In earlier days the exchange system was known as barter system. But in any case in order to exchange to occur there must be adequate demand for the product. With the existence of demand, the producers get an opportunity to supply the required object/ product to the market and potential markets can be developed where buyers and suppliers can do business and build a mutually satisfying relationship.But while launching any new product to the market, main point to be noted is that the product will be a new one and hence it is often risky. In case of large scale business, it is practically impossible that the producer and the buyer can come into direct physical contact. In order to facilitate the exchange of the goods, elaborated channels of distribution are required. (Here, supply chain comes into picture). The above statements are not applicable to all kinds of business e.g. in the case of service providers where the seller needs to make direct exchange with the buyer. One should carefully note that the value of the product does not depend on the extent of contact between the buyer and producer. The value possessed by the product will always depend on the extent of willingness of consumers to exchange. This is the reason that it is said that supply always depends on demand. During the second half of the 20th century, the marketing strategy had changed. The marketing technique reflected the potential for excess supply in the industrialized economies where technological advancements had created scope for productivity gains. Now, the capability of excess supply will reduce the value of product because the unconsumed supply will become worthless. Hence, producers are not certain about the demand for their product.

    3. Write about product definition and process involved in defining the product A product can be

    this gives a relation between buyers, producers and the intermediate processes and techniques. Product definition comprises of customer, company and quality function deployment (QFD). This also includes the definition process which in turn may include QFD. The quality function deployment is concern

    with the customers and thus links up customers with the companies. The company in turn determines the definition process for the product.

    Defining product by nature of demand

    All products begin from core benefit and products can be represented as concentric circles.

    Core benefit: It represents the basic theme of any product. In other words it represents the main service or benefits which are derived from the consumer’s use. Generic product: It is the basic version of a product i.e. these products do not have various features which classify the product. These features enable consumers to receive desired benefits. Expected product: These products contain properties or characteristics which are usually expected and accepted by buyers. Augmented product: These products contain some additional benefits and services than the expected ones. Competitor producers compile each other on the basis of these additional benefits only. Potential products: These products have undergone all possible augmentations with course of time and increase in demands. The potential product is the product which just does not meet all the consumers’ needs but also delight the consumers. Classification of product

    For producers it is very important to understand demand of their products. And to understand the demand, it is essential to classify the products. Products can basically classified into following three categories – • Consumer products:

    Consumer product refers to any article, or component parts which are produced or distributed for sale to a consumer to be used in or around residence, school, in recreation, or for the personal use, consumption or enjoyment of a consumer. But consumer product does not include any article which is not customarily produced or distributed for sale to a customer for

    its use or consumption, or enjoyment. Hence, a customer product can be any tangible commodity that is produced and subsequently consumed by the consumer, to satisfy their needs and these are ultimately consumed rather than used in the production of another good. Examples of such products are weight loss pills, digital cameras, iPods, laptops, smart cell phones, GPS navigation devices, beauty products, video games, DVD players, and cable television. Industrial products:

    Industrial product refers to any item that is used in manufacturing or industry. These are the goods produced in a factory with the help of machinery and technology. These are usually high cost products. These are used for production of consumer products example various equipment and industrial set ups. Examples of the products in this section vary according to the type of product being used to manufacture. Some common examples included in this section of products are carts or dollies, tapes or adhesives, ladders, lifts, storage lockers, cabinets, scaffolding, personal protection equipment, office supplies, and light fixtures, or tools. • Specialty products:

    Specialty goods represent the third category of product classification which, are unique in nature. These products are the unusual and luxurious items available in the market; i.e. these products are the products for which buyers are habitual and may make special efforts for purchase of these products. The specialty products are purchased with a predetermined

    pattern in mind; i.e. a customer will go for purchasing a product of only a specific brand. As an example, a customer will prefer to visit a particular store just because the product of his/ her liking is available in that very store. Here the price is almost never a determining factor in choosing between the products. Sellers of specialty goods also need not be conveniently located, because buyers will seek them out, even if it involves considerable effort. Some products may be considered shopping goods by some buyers, and specialty products by other buyers. Example of specialty products are house, holiday package etc.

    Methods of defining product are

    Voice of the customer

    Voice of the customer (VOC) is a term used to describe the in-depth process of capturing a customer's expectations, preferences and aversions. Specifically, the Voice of the Customer is a

    market research technique that produces a detailed set of customer wants and needs, organized into a hierarchical structure, and then prioritized in terms of relative importance and satisfaction with current alternatives. Voice of the Customer studies typically consist of both qualitative and quantitative research steps. They are generally conducted at the start of any new product, process, or service design initiative in order to better understand the customer's

    wants and needs, and as the key input for new product definition and there are many possible ways to gather the information – • focus groups, • individual interviews, • contextual inquiry,

    • ethnographic techniques, etc.

    Quality function deployment

    Ultimately the goal of QFD is to translate often subjective quality criteria into objective ones that can be quantified and measured and which can then be used to design and manufacture the product. It is a complimentary method for determining how and where priorities are to be assigned in product development. The intent is to employ objective procedures in increasing detail throughout the development of the product

    ______________________________________________________________________________

    • 4. Explain product development methodologies

    Every client and project is different and has specific constraints that should be analyzed to determine an appropriate methodology or combination of methodologies to utilize. The best approach is to find the methodology that fits the clients' environment and will guarantee project success. A too rigid of a process (or not enough) will not provide the desired product on time or within budget. The two main principle approaches behind product development methodologies are: DMADV and DMAIC approaches. DMADV approach involves the following steps:

    • Define: Define the project goals and customer (internal & external) deliverables. • Measure: Measure and determine the customer needs and satisfaction. • Analyze: Analyze the process options prior to customer needs. • Design: Design (in detail) the process to meet customer needs. • Verify: Verify the design performance and ability to meet customer. DMAIC approach involves the following steps:

    • Define: Define the project goals and customer (internal & external) deliverables. • Measure: Measure the process to determine current performance. • Analyze: Analyze and determine the root causes of the defects. • Improve: Improve the process by eliminating defects. • Control: Control future process performance.

    Whenever an incremental change to the current process is good enough we use the DMAIC approach, but when the current process needs to be replaced we use the DMADV approach. The above two approaches have led to the development of so many methodologies. Most of the methods are modifications of the Waterfall methodology. 1) Waterfall methodology: The Waterfall methodology is a sequential development process, where progress flows steadily toward the conclusion (like a waterfall) through the phases of a project. This involves fully documenting a project in advance, including the user interface, user stories, and all the property variations and outcomes. This methodology is resistant to change. Any change is expensive because most of the time and effort has been spent early on in the design and analysis phases. This is a major drawback of this methodology. So the practical outcome may be quite different than the prediction.

    2) Agile methodology: This is an iterative approach to product development that is performed in a collaborative environment by self-organizing teams. The methodology produces high- quality software in a cost-effective and timely manner to meet stakeholders’ changing needs. In

    this method every product release begins with a list called a “back log” which consists of a list

    of prioritized requirements i.e. a list of work to be done in order of importance. By this methodology the team will always adjust the scope of work to ensure that the most importance work are completed first. The backlog is a dynamic set of requirements that can

    change weekly (depending on the length of your iterations). So instead of delivering the entire back log at the end of product release we can divide the work into smaller amount of delivered requirements, which are taken from the backlog in their order of importance. These smaller amounts are known as iterations (or sprints). Iterations have short time frames that last from

    one to four weeks, depending on the team’s experience. A key element of an iteration is that,

    unlike in back log, the priorities regarding which requirements should be built do not change within the iteration (for example, during the two-week period); this list should only change from one iteration to another. This methodology accepts that project change is inevitable. The use of small iterations allows changes to be absorbed quickly without inflicting significant project risk. The backlog order can adjust as business priorities evolve; with the next iteration, the team can adapt to those priorities. In the context of a product release, the items that are the most technically difficult (i.e., that hold the larger risk) tend to be done in early iterations to ensure that the risk can be minimized. This approach to mitigating risk is a key differentiator from the Waterfall methodology. Instead

    of adjusting during the development process, the Waterfall methodology involves planning and researching each task in advance. ______________________________________________________________________________

    • 5. Write in detail Product Lifecycle Management

    Product life cycle The product life-cycle is a series of different stages a product goes through, beginning from its introduction into the market and ending at its discontinuation and unavailability. These stages are commonly represented through the sales and profit history of the product itself, although there can be many other variables that affect the lifespan of a product line. Between the initial growth and concluding maturity stages, the profit curve usually reaches its peak. During the maturity phase of the life-cycle, sales volumes for an established product tend to remain steady, or at least do not suffer from major declines, but the rate of profit drops. In most cases, the trajectory and behavior of the product life-cycle is determined by a set of factors over which manufacturers and marketers have little control, forcing them to react to changing circumstances in order to keep their product development strategy viable. These external factors include shifting consumer requirements, industry-wide technological advances, and an evolving state of competition with a company’s market rivals. The fluctuating patterns of a life- cycle indicate that a different marketing and product development approach may be needed for each stage of the cycle. Understanding life-cycle concepts can aid in long-term planning for a new product, as well as raising awareness of the competitive landscape and estimating the impact that changing conditions can have on profitability.

    1) The Life-Cycle Curve

    Industrial products usually follow an S-shaped life-cycle curve when sales and profits are plotted over time. However, certain products, such as high-tech goods and commodities, may follow a different life-cycle pattern. High-tech products often require longer development times and higher costs, making their growth stages long and their decline stages short, while commodities, such as steel, tend to have relatively static demand with sales that do not appreciably decline from an absence of competition. Sales would drop, though, from an increase in competing products. Under most life-cycle conditions, profits typically peak before sales do, with profits reaching their peak level during the early growth stages and sales reaching their peak in the maturity stages. Competition tends to be lower at the beginning of the life-

    cycle, but as competing companies start to offer lower prices, newer services, or more appealing promotions in the maturity phase, the initial product must be made more attractive. This often results in comparable price drops or increased spending on advertising and promotions, as well as greater investment in distribution and modifications to the existing product. The initiatives

    improve sales, but drive up
    improve
    sales,
    but
    drive
    up

    costs

    • The introductory stage • The growth stage • The Maturity stage • The decline stage The Introductory Stage

    and

    lower

    profit

    The Introduction stage is probably most important stage in product life cycle. In fact, most probably product fail in the introduction stages. This is the only stage where product is going to introduce with market and with consumer or user of products. If consumers don’t know about it then consumers don’t go to buy it. There are two different strategies you can use to introduce your product to consumers. You can use either a penetration strategy or a skimming strategy. If a penetration strategy is used then prices are set very high initially and then gradually lowered over time. This is a good strategy to use if there are few competitors for your product. Profits are high with this strategy but there is also a great deal of risk. If people don't want to pay high prices you may lose out. The second pricing strategy is a skimming strategy. In this case you set your prices very low at the beginning and then gradually increase them. This is a good strategy to use if there are a lot of competitors who control a large portion of the market. Profits are not a concern under this strategy. The most important thing is to get you product known and worry about making money at a later time. A company that introduces a product requiring a high degree of learning and expects a relatively low rate of acceptance can focus on market development strategies to help build consumer appeal. Conversely, products with a low learning curve and a quick route toward acceptance may need a marketing strategy designed to offset rival products, as competition at these levels tends to be higher.

    The Growth Stage

    When an industrial product enters a period of higher sales and profit growth, the marketing plan often shifts to focus on improvements to the design and any added features or benefits that can expand its market share. Increasing the efficiency of distribution methods can help

    improve product availability by reaching more customers, and some degree of price reductions, particularly for large-scale operations, can be introduced to make the product more appealing

    for purchase. Maintaining the higher price set at the introductory stage increases the risk of competitors entering the market due to the wider profitability margin. Similarly, without stronger distribution efforts the product may have limited availability, which encourages rival companies to encroach on market share.

    The Maturity Stage

    The maturity stage of a life-cycle is characterized by an increase in the number of market

    competitors and a corresponding decline in profit growth as a percentage of sales. To compensate for the level of saturation that occurs during this phase, the product development strategy revolves around entering new markets, often through exports. It may also be helpful to increase efforts to satisfy existing customers in order to preserve the customer base. Reducing spending on marketing and production can help maintain profit margins.

    The Decline Stage

    In the decline stage, the competition for product pricing tends to escalate, while profits and sales generally decrease. When working with industrial products, marketers sometime opt to discontinue a product when it has reached this level or introduce a replacement product that renders the previous version obsolete. Marketing and production budgets are typically scaled back to save on costs, and resources may be shifted to newer products under development. Product decline usually proceeds more quickly among industries that rely on rapidly changing technologies, with newer advances periodically driving existing goods out of the market. ______________________________________________________________________________

    • 6. Explain product development planning and management

    Product development planning and Management

    Planning and management are indispensible part of product development. Planning involves thinking about and organizing the activities required to achieve a desired goal. It involves the creation and maintenance of a plan. It combines forecasting of developments with the preparation of schemes of how to react to them. A basic tool for product planning is to follow a set of systematic steps. These steps are intended to estimate four basic aspects: the “what”- tasks, the “when”-schedule, the “where”-equipment and facilities, and the “how”-people, material, facility, and equipment costs. Product development management is the discipline of planning, organizing, motivating, and controlling resources to achieve specific goals. Product

    Development Planning and Management (PDPM)(figure 1.26) is an organizational lifecycle function within a company dealing with the planning, forecasting, or marketing of a product or products at all stages of the product lifecycle. It consists of product development and product marketing, which are different (yet complementary) efforts. The main objectives of PDPM are maximizing sales revenues, market share and profit margins.

    Product development can be considered as a project. A project is a temporary effort designed to produce a unique product, service or result with a defined beginning and end usually time- constrained, and often

    constrained by funding or deliverables, undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value. The temporary nature of projects stands in contrast with “business as usual” or operations, which are repetitive, permanent, or semi-permanent functional activities to produce products or services. In practice, the management of these two systems is often quite different, and as such requires the development of distinct technical skills and management strategies. PDPM often serves an interdisciplinary role, bridging gaps within the company between teams of different expertise, most notably between engineering- oriented teams and commercially oriented teams. The various elements or tools of product development planning and management are budgeting, scheduling, collaboration, risk management, change management and product cost management. The primary challenge of project management (product development in this case) is to achieve all of the project goals and objectives while honoring the preconceived constraints or limitations. The primary constraints are scope, time, quality and budget. The secondary challenge is to optimize the distribution of necessary inputs and integrate them to meet pre-defined objectives. The third challenge is to adapt with the continuous change of need in the market. All these elements have critical roles in the integrated product development process.

    1) Budgeting

    A budget is a proposal of activities to be done in the future. It is a managerial tool for planning,

    programming and controlling business activities. A budget is a written plan or programmers of proposed future activities (including estimates of sales, expenditure and production etc.) expressed in quantitative terms. According to Dickey, “a budget is written plan covering projected activities of a firm for a defined period”. There are following characteristics of budgets:

    Budget outlines the project activities The expressions are made in quantitative terms, and in most of the budgets in financial terms, i.e. rupee value, and It relates to a fixed periodically say, a day, a month, a year etc.

    Types of budget:

    Fixed budget Flexible budget Capital expenditure budget Operating budget

    2) Collaboration

    Collaboration is the act of working with each other to do a task. It is a recursive or repetitive process where two or more people or organizations work together to realize shared goals. It is an important tool in project management as it helps to reduce the cost of the product and helps the product to survive in the market.

    Internal Collaboration

    This collaboration is of paramount importance for successful new development project. This collaboration is generally between CFT, Manufacturing, Supply Chain, Quality, Sales and Marketing within the organization. An example of internal collaboration is a cross-functional team. As already described before, in an organization cross-functional team is formed who have different functional expertise but working towards a common goal. The main benefits of internal collaboration are:

    Using cross-functional teams have proved to reduce the cycle time in new product development. Cross-functional teams eliminate the "throw it over-the-wall" mentality that passes a product off from department to department.

    External Collaboration

    External collaboration involves two or more organizations working together to develop a product. The main benefits of external collaboration are:

    External sources may provide valuable contributions to new product development (NPD) as they provide access to external knowledge that complements the firm’s internal knowledge base. • Product Development Organizations have tie-ups with the Certification agencies, regulatory bodies, Industry forums and specialized service provider players.Collaboration is the act of working with each other to do a task. It is a recursive or repetitive process where two or more people or organizations work together to realize shared goals. It is an important tool in project management as it helps to reduce the cost of the product and helps the product to survive in the market.

    3) Risk Management

    Risk is the potential for realizing some unwanted and negative consequence of an event. According to International Organization for Standardization (ISO 31000), risk has been defined as the effect of uncertainty on objectives, whether positive or negative. Risk is part of our individual existence and that of society as a whole.

    Risk management can be defined as the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.

    3) Scheduling Scheduling can be defined as a plan for performing work or achieving an objective,

    3) Scheduling

    Scheduling can be defined as a plan for performing work or achieving an objective, specifying the order and allotted time for each part. It is an important tool for production processes,

    where it can have a major impact on the productivity of a process.

    4) Change management

    Change Management is an approach for handling the transitioning of individuals, a team and organizations to a desired future state. At a time of gain, change can be a time of exciting opportunity for some and a time of loss, disruption or threat for others. How such responses to

    change are managed can be the difference between surviving and thriving in a work or business environment. Change is an inherent characteristic of an organisation and like it or not, all organizations whether in the public or private sector must change to remain relevant. Change can originate from external sources through technological advances, social, political or economic pressures, or it can come from inside the organisation as a management response to a range of issues such as changing client needs, costs or a human resource or a performance issue. It can affect one small area or the entire organisation. Nevertheless, all change whether from internal or external sources, large or small, involves adopting new mindsets, processes, policies, practices and behaviour.

    6) Product cost management

    Product cost management (PCM) is a set of tools or methods used by companies who develop and manufacture products to ensure that a product meets its targeted profit. There is not a specific definition for product cost management or a specifically defined scope of PCM. Sometimes PCM is considered a synonym to target costing while at other times it is equated to design to cost. But target costing is considered as a pricing process, while PCM focuses on maximizing the profit or minimizing the cost of the product, irrespective of the cost at which the product is sold to the customer

    ______________________________________________________________________________

    • 7. Explain the different factors affecting product development

    The following issues have impact in designing and producing of products by an organization Social Technical

    Political

    Economical

    Environmental

    1.Social Trends:

    Social factors and cross-cultural communication plays a vital role in international and global

    markets. It includes the following features Demographic Behavioural Psychographic Geographic

    Demographic features:

    A demographic environment is a set of demographic factors such as gender or ethnicity. Companies use demographic environments to identify target markets for specific products or services. This practice has both advantages and disadvantages. Marketers have to take both sides of the demographic environment coin into account when deciding what strategy to apply. Demographics are the quantifiable statistics of a given population. Demographics is also used to identify the study of quantifiable subsets within a given population which characterize that population at a specific point in time. These types of data are used widely in public opinion polling and marketing. Commonly examined demographics include gender age ethnicity knowledge of languages disabilities mobility home ownership employment

    Psychographic features

    Psychographics comes into play to better analyse and classify target buyers by psychological attitudes such as aspirations, interests, attitudes, opinions, lifestyle, behavior, etc. Demographics provide information on who typically buys or will buy a particular product or service based on tangible characteristics. Psychographics provides more insight into who is most likely motivated to buy. Combining the demographic and psychographic views provides much improved targeting and effectiveness for marketing and sales. From a marketing perspective, demographics define

    what buyers commonly need whereas psychographics define what buyers want. Psychographics identifies aspirational behaviors that are much more powerful drivers than physical demographics.

    2.

    Technological Trends

    Technology:

    Technology is the making, modification, usage, and knowledge of tools, machines, techniques, crafts, systems, and methods of organization, in order to solve a problem, improve a pre-existing solution to a problem, achieve a goal, handle an applied input/output relation or perform a specific function. It can also refer to the collection of such tools, including machinery, modifications, arrangements and procedures. Technologies significantly affect human as well as other animal species' ability to control and adapt to their natural environments. The term can either be applied generally or to specific areas: examples include construction technology, medical technology, and information technology.

    • 3. Political/Policy trends

    It is always advisable to keep a track of potential policy changes in any government because where the Political situation is relatively stable; there may be changes in policy at the highest level which has serious implications. This may result in change in government priorities which results in new initiatives. These can include changes in

    Employment laws Consumer Protection laws Environmental regulations Taxation regulations Health and Safety Requirements Trade restrictions or reforms IP Trends:

    Intellectual property (IP) is a legal concept which refers to creations of the mind for which exclusive rights are recognized. Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs.

    • 4. Economic Trends

    Extremely Dynamic markets have been Boon for Start-ups; Bane for Innovation; Companies are Measured by Quarterly Profits; Global Markets are inter connected; The Future of organization is decided by the stock market. Official economic indicators, most of which are available such as GDP (Gross Domestic Product) GNP (Gross National Product) The economic environment consists of factors that affect consumer purchasing power and spending.

    Designers need to consider buying power as well as the people they are designing for. Total

    buying power depends on current income, prices, savings and credit. When the economy is more confident, people will accept a design that is less of a need and more of a want. There

    was a surge in the 1990s for the demand of ‘cut price’ items and hence a massive growth in

    stores such as Go-Lo, the Reject Shop etc. Another economic issue is the cost of manufacturing. In Australia, manufacturing costs are often increased by the cost of wages. Many Australian companies produce their products offshore, usually in Southeast Asia, to take advantage of low wages that make products much cheaper.

    5. Environmental Trends The natural environment has become a major issue since the 1960s. Air and water pollution, massive waste disposal problems, concern about the depletion of the ozone layer, extinction of species and the greenhouse effect are issues that are constantly being discussed by politicians, environmental groups and individuals. There are four environmental trends that have long- term implications on designing and producing:

    shortage of raw materials both renewable and non-renewable resources increasing energy costs increasing levels of pollution in the environment caused by the build-up of substances that do not decompose or only decompose slowly increasing government intervention in natural resource management ______________________________________________________________________________ ______

    8.

    Explain with flow chart about which methodologies to be used at different stages of product development and maintenance

    Following are the some of the important points of each methodology to be considered before adopting

    Following are the some of the important points of each methodology to be considered before adopting a particular methodology:

    The Waterfall methodology is the basic product development methodology but it is resistant to change and does not assist in risk mitigation. The Agile methodology is an iterative process that considers that change is inevitable and prioritizes the

    work to be carried out. This makes it an economic and time-efficient process. The Over-the-wall has become obsolete because of its limitations. Due to the complexity of the product development work, it was divided among various departments which would specialize only in a particular phase of the development and would be ignorant about the other phase. It was a slow process which also leads to miscommunication between various departments handling the development. The lack of a centralized system to keep each department updated about the other departments led to this

    methodology’s downfall.

    The V-model model’s main advantage over Waterfall methodology lies in the fact that every step of the Waterfall methodology is being tested in this method. But the main disadvantage is that this

    method is resistant to change and is expensive for carrying out simple developments because of its repeated testing

    and despite testing the method may be error prone. This has led to the decline in the use of this process. The Stage-gate methodology, unlike Waterfall methodology, does not plan beforehand but plans and analyses at each stage of product development and is thus more responsive to change, at any stage if there is a new development, the methodology adopts according to the new development. The Spiral model combines more than one development methodology to develop the product, but it is also resistant to change and does not take the risk mitigation into account. System engineering methodology is an inter-disciplinary approach towards product development, though the interdisciplinary approach is a complex one but it helps in bridging the gaps between various sections or departments of the product development, in stark contrast to the Over-the-wall methodology. This has led to a promising potential for this methodology. Software companies prefer to use Agile technology and Stage-Gate methodology over Waterfall technology more considering their positive response to change and attempts to mitigate risks.

    ______________________________________________________________________________

    • 9. Write in details about PLM Components PLM components are

    • I. Data/Document Management and Vaulting Product Structure Management Configuration Management Change Management

    II.

    III.

    IV.

    • V. Process Management Visualizations Web based collaborations Project Management Requirements Management

    VI.

    VII.

    VIII.

    IX.

    • X. Administration Application Integrations

    XI.

    and despite testing the method may be error prone. This has led to the decline in
    Product Structure Views
    Product Structure Views

    To Look at a product structure from different usage perspectives

    Design perspective: As-Designed

    Manufacturing planning perspective: As-Planned

    Final manufactured perspective: As-Built

    Shipping perspective: As-Shipped

    Maintenance perspective: As-Maintained

    Product Structure Views To Look at a product structure from different usage perspectives • Design perspective:
    Product Structure Views To Look at a product structure from different usage perspectives • Design perspective:
    Product Structure Management
    Product Structure Management

    Features

    Create and manage product Bill of Materials (BOM)

    Create and manage Product Configuration

    Product Structure contains attributes, location information

    It also provides “Where-used” information

    Product Structure Views To Look at a product structure from different usage perspectives • Design perspective:
    Product Structure Views To Look at a product structure from different usage perspectives • Design perspective:
    Product Structure (BOM) Views
    Product Structure (BOM) Views

    Engineering

    Designed the structure

    Manufacturing Engineering

    Rearranged the structure for assembly

    As-Designed As-Planned Product Product Manufacturing 1 Substituted parts Component Component Component Assembly Component As-Built Component Component
    As-Designed
    As-Planned
    Product
    Product
    Manufacturing
    1
    Substituted parts
    Component
    Component
    Component
    Assembly
    Component
    As-Built
    Component
    Component
    Product
    Assembly
    Component
    As-Maintained
    As-Shipped
    Component
    Component
    Product
    Product
    4
    Component
    Assembly
    Component
    Assembly
    Component
    Component
    Component
    Component
    Component
    Component
    Service
    Shipping

    Implemented a field Change

    Added shipping materials

    Configuration Management - Product Variants
    Configuration Management - Product Variants
    Product Structure (BOM) Views Engineering Designed the structure Manufacturing Engineering Rearranged the structure for assembly As-Designed

    Flexible Product Structures:

    View product structures based on rules

    View product structures based on logical

    parameters

    Views product structure based on condition

    Product Structure (BOM) Views Engineering Designed the structure Manufacturing Engineering Rearranged the structure for assembly As-Designed
    Product Structure (BOM) Views Engineering Designed the structure Manufacturing Engineering Rearranged the structure for assembly As-Designed
    Configuration Management
    Configuration Management
    Effectivities Engine Engine
    Effectivities
    Engine
    Engine
    Piston Engine option 2 option 1 Block Block Options Block Shaft
    Piston
    Engine
    option 2
    option 1
    Block
    Block
    Options
    Block
    Shaft
    alternate piston Alternates Parts Engine Piston Block Shaft (always)
    alternate piston
    Alternates Parts
    Engine
    Piston
    Block
    Shaft
    (always)
    Piston Engine Shaft Block Substitute Parts substitute piston (specific)
    Piston
    Engine
    Shaft
    Block
    Substitute Parts
    substitute piston
    (specific)
    Process Management
    Process Management

    approvals

    Sequential, automatic or conditional

    control

    Review of data through proper access

    and people

    Data flows through different department

    Ability to Model and Manage Business

    Process

    • Action Triggers, notifications, warnings etc. • History and Audit Trail
    Action Triggers, notifications, warnings etc.
    History and Audit Trail
    Configuration Management Effectivities Engine Engine Piston Engine option 2 option 1 Block Block Options Block Shaft
    Change Process Flow
    Change Process Flow

    Describe

    Symptoms

    By creating a Change Issue

    Change Process Flow Describe Symptoms By creating a Change Issue Pursue Change By logging a formal

    Pursue

    Change

    By logging a formal Change Request

    3. What causes this problem
    3. What causes
    this problem
    Identify Cause
    Identify
    Cause

    By launching a Change Investigation

    and performing an Analysis Activity

    Propose

    Solution

    By suggesting a Change Proposal

    and performing an Analysis Activity

    • Implement Solution

    By creating a Change Order

    and performing a Change Activity

    Change Management Process 1. This is the 2. We need to solve this problem Problem Change
    Change Management Process
    1. This is the
    2.
    We need to solve this problem
    Problem
    Change Issue
    Change Request

    5.

    OK, Implement the proposal

    Change Process Flow Describe Symptoms By creating a Change Issue Pursue Change By logging a formal
    Change Process Flow Describe Symptoms By creating a Change Issue Pursue Change By logging a formal
    Change Process Flow Describe Symptoms By creating a Change Issue Pursue Change By logging a formal

    Change Proposal

    4. Here are some solution proposals

    Change Process Flow Describe Symptoms By creating a Change Issue Pursue Change By logging a formal

    Change Investigation

    Change Order

    Analysis Activity

    Analysis Activity

    Change Process Flow Describe Symptoms By creating a Change Issue Pursue Change By logging a formal
    Change Process Flow Describe Symptoms By creating a Change Issue Pursue Change By logging a formal

    This is how we determine the cause

    This is how we justify the proposal

    Change Activity

    Change Process Flow Describe Symptoms By creating a Change Issue Pursue Change By logging a formal

    This is how we implement the order

    Product Visualization
    Product Visualization

    View - Ability to View and Visualize the product (may be without a CAD system)

    Evaluate - Ability to perform transformation/Clearance Analysis/ Aesthetic

    Designs / Calculations ………………(may be without a CAD system)

    Collaborate - Light Weight representation of content with viewers

    Product Visualization • View - Ability to View and Visualize the product (may be without a
    Product Visualization • View - Ability to View and Visualize the product (may be without a
    Program Management
    Program Management

    Digital Cockpit metrics and Dashboard

    Risk Management Team Management Reports
    Risk Management
    Team Management
    Reports

    ________________________________________________________________________

    10. Conduct sample PESTLE analysis with any one day to day products like 1.laptop,2. soap, 3. shirt, 4.Biscuits etc.

    PESTLE ANALYSIS BY PEPSICO.

    PepsiCo is the largest selling beverage the world over, of course after its arch rival Coca Cola. It accounts for a 37% share of the global beverage market, and therefore they need to

    understand each and every country’s market in

    situations.

    order to

    stay

    in

    line

    with

    their PESTLE

    Pepsi is a big brand, currently holds the 23 rd place in the Interbrands report of the World’s Leading Brands. Their advertisements feature major celebrities and athletes like David Beckham, Robbie Williams, Britney Spears, and Michael Jackson etc.

    Their market reach is also very diverse, as they’re present in almost every country from the US

    to New Zealand. Their PESTLE analysis is given below:

    Political:

    Pepsi is a non-alcoholic beverage and is therefore regulated by the FDA. So, they’re supposed to maintain a firm standard of the laws set out by the FDA with consistency. Also, many different markets across the world have different set of regulations that are either relaxed or are either stringent. There is competitive pricing by Pepsi’s competitors and that is one factor that Pepsi has to keep in mind at all times. The political scenario also matters greatly as there can be some civil unrest in certain markets or due to inflation the sales of the product can fall. Most importantly, cross border situations are starkly different therefore Pepsi has to stay in line with all those policies and changes so that they can adapt to all those changes accordingly.

    Economic:

    As the recent economic downturn has plagued the economy, companies had to restructure their sales and marketing campaigns greatly. Also, with diminishing profits they had to undergo downsizing internally and re-think upon how to penetrate the market. Economic conditions have the highest influence on a business, regardless of what trade it is in. Though, in Pepsi’s favor, the economic downturn that started in 2008 resulted in increased sales of its beverages mainly as people were being laid off from jobs, they were spending time with friends and family or at home.

    Social:

    Social factors greatly impact Pepsi, as it’s a non-alcoholic beverage it has to remain in line with the strict and stark differences of cultures the world over. Also, Pepsi has to communicate its

    image as a global brand so that the people can associate it with themselves as something that connects the world together. Usually, the social implications are seen in marketing campaigns for example certain countries have religious festivals, so Pepsi has to keep in line with all those festivals in order to understand the psyche of their market and how they can cash upon the opportunity.

    Technological:

    With the advent of the new age in technology, companies have completely integrated themselves with all the recent changes that have taken place. To mention a recent trend that has greatly picked up and something that almost every business is turning toward is Social Media. The social media explosion has allowed for increasingly interactive engagement with the consumers with real time results so Pepsi has to stay ahead of all the developments that take place with keeping in view how the youth of today utilizes technology for their benefit and how can Pepsi reach them in order to keep on increasing brand recall and brand engagement.

    Legal:

    There can be many legal implications upon the beverage industry. I would cite one very famous incident took place in India, where Pepsi was accused of using contaminated water, given a lab test that was done upon the water flowing into the Pepsi factory that was located nearby an industrial estate. A massive recall was issued for the products from shelves and then the product was tested costing the company many billions of dollars upon the tests as India is a very major market.

    Environmental:

    These factors can affect Pepsi, but not immensely alter its trade and profit generation as these factors affect agri-businesses much more directly.