What is Product development?

Product development aims to provide the goods wanted by the market, at the time and in the quantities desired by it, at the prices it is willing to pay, yet leaving a sufficient margin (or a net profit) for the manufacturer Product development is the process of commercializing a product in the market starting from the concept stage.
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An ongoing process
Why Product development?

For corporate profitability

To stay alive and grow in competitive business, PLC decline & demise A process to match the needs of the market High product mortality
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Types of Product development

1. Addition of a product

2. Modification/improvement of an existing
product

1. Addition of new product Fill the gap in product range mens wear, ladies wear + kids wear To maintain some products always at maturity level to boost the revenue for the company - PLC To utilize the resources and skills available in the company MMS + BMS + MBA To explore new market or create new markets tooth paste + tooth powder
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To meet customers specific demand

packaging boxes for a new product, special

cans for Ponds Magic

2. Improvement/modification of existing products Short term objectives and long term objectives Short term objectives To stimulate the sales Colgate herbal, active, sensitive! Cell phones with cameras To satisfy urgent needs of the customers - pencils with erasers, CFL lamps, need to meet customers urgent need to save electric power
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To utilize installed capacity fan manufacturers making radiator blowers

Long term objectives To monopolize the market supersonic jets? NANO, small car? To establish long term business relation ship with customer (supporting the new product development by the customer) OEMs, ABC & TATAs

 To reduce cost of manufacturing cans using

thinner, double rolled steel sheets, plastic cans for

talcum powder
To produce in large quantities electrical

equipment running on US and European standards

voltage

Methodology of Product Development

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Product development

Product design

Process design
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Product design

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1. Need Identification Sources for new product ideas Market research Research and development Pure research

Applied research
Brain storming
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2. Advance product planning/feasibility study Market viability

Corporate Policy
SWOT Analysis of the company to ascertain

where the new product idea lies

Familiarity with similar product, process, market, distribution
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A conceptual design emerges Physical dimensions Appearance Target cost joint decision by technical and commercial executive

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3. Advance design
Taking the product idea ahead

Technical feasibility
trade off in the product design

Need for further experimentation

Need for prototype testing

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4. Detailed engineering design

Design converts concept into Reality

Production converts design into product.

Product satisfies customers needs and brings

money back into business.

A good product design is built on following corner stones
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PRODUCT DESIGN

VARIETY

CUSTOMER NEEDS

PRODUCTION NEEDS

STANDARDIZATION

MODULAR DESIGN EXAMPLES: WRIST WATCHES SLOTTED ANGLES RACKS

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 What do customers want?

What do producers want?

Tools for product design

Variety Reduction

Standardization
Modularization

Computer assisted design

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Role of Operations function in design of the

Product production friendly design

User friendly, maker friendly & service friendly

design

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Key elements in product design

Function: designed product must perform the

function expected by the customer

Cost: competitive price in the market

Quality: What is quality? Mutually agreed

quality parameters which adequately meet

customers need and price

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 Reliability: Failure free function for agreed Period[aviation electronics, Medical electronics, Space crafts etc.] Appearance: industrial products as against consumer products Environmental impact: S H E Objectives of company are to be built into the product through Design
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Product safety: safe to make, safe for use & environment Producibility: ease and speed of production, efforts, costs Maintainability: ease and speed of maintenance Timing: relevant to services and also to hardware [24 hr. banking]

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 Accessibility: relevant to Services. Where is the service available? ICICI bankbank comes to your door step!, ATMs, if placed in a remote area?

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5. Prototype development Testing the prototype to ascertain its ability to fulfill customers expectations 6. Product development Based on the performance of the prototype final product development is done 7. Launch A small batch is produced without focus on the process to gauge the product acceptability in the market
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8. When the product launch is successful, process design begins

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Production process design and development

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Process selection and design

How shall we produce?

1.Understand how the product is made

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2. Explode the major assembly into sub assemblies and sub assemblies into parts.
EN31 Steel wire Coil EN31 Steel bars EN31 Steel sheets

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EN31 Steel wire Coil

Cold forging

Heat treatment

Grinding

ROLLERS

Super finishing

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EN31 Steel bars

Turning

Heat treatment

Grinding

OUTER RACES

Super finishing

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EN31 Steel bars

Turning

Heat treatment

Grinding

INNER RACES

Super finishing

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EN31 Steel sheets

Punch -ing

CAGES

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INNER RACES

OUTER RACES

ROLLERS

ASSEMBLY

CAGES

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3. Write the process flow diagram for assembly

and

manufacturing operations

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4. Fix the output characteristics of the product

5. Ascertain the position of the product in The

PLC
6. Choose operations system

Different operations like assembly, parts

production can have different processes

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Job shop production

V A R I E T Y

Batch Production P>D

Project Form of Production

Mass Production P<D

VOLUME

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7. Identify critical core operations

8. Strategize Manufacturing, consider strategic

factors and cost factors, make or buy decisions

9. Fix trade off between capital & labor

10. Choose Technology, Equipment like S P Ms or

G P Ms, Tooling like ceramic or HSS, Skills

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3. Product evaluation and improvement

Feedback from customers, workers and

service providers
P D C A for initial control

3. Product use and support

Value added services

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