Product planning and selection
Introduction
Product development refers to the process of creating new products or modifying the existing ones. The needs and requirements of consumers keep on changing over the period of time. Therefore, to meet these needs successfully, new products need to be introduced in the market. The objective to achieve customer satisfaction or improve the feasibility in production, calls for modification in the existing products.
Product design and analysis
Product design is the first step immediately after accepting the concept of a product. It has direct bearing on plant layout and in process material flow. It is concerned with critical analysis of different design features with relevance to place of use, substitute materials and careful planning equipment alternative for manufacturing the products. It is a repetitive task and it is strategic in nature. Product design has significant impact on profitability competitiveness.
Needs for product design and development
1. Introduction of new products
As mentioned new products are developed to meet the changing needs of the consumers. To understand the need to develop and introduce new products to the market, you need to keep in mind the micro level objectives of an organization as:
o Addressing the changes required by the consumers, thereby providing them with complete satisfaction.
o Growth in the market share or keep the existing market share in place for the existing products by adding more variety and new design to the product range.
o Attracting the consumers that are sensitive to changing fashions, thereby providing better marketability to the product range.
o Filling in the missing products in the product range to provide consumers with all the possible options with in the same brand, thereby keeping the brand loyalty intact with the consumers.
o Breaking the monotony in the designs and features of the product such as the appearance or functions of a product.
We can say that the introduction of new products in the market is mostly for the reason to increase sales and provide an organization with better marketability of products.
2. Modify the existing products
We have just discussed the reason to introduce new products in the market, along with this design and development also perform an important role in modifying the existing products. These modification are made for reason such as:
o Improving the life cycle of the product in the market.
o Providing economics, since the expenses pertaining to developing new products are generally much higher than for modification.
o Keeping the advantage of already established product in the market by improving time to time.
o Utilizing the production resources effectively.
o Increasing market share with economical pricing, by passing on the advantage of reduced cost of production.
To summarize, we can further sat that introducing new product adds to the profitability for an organization with an increase in sales. Modification of the existing products provides sustainability in the market also cost reduction to maintain the profitability.
Steps in new product development
1. New product strategy development: - new product strategy provides corporate strategic guidelines for the new product development process through assessment of internal experience and external opportunities.
2. Idea generation: - it involves the use of various idea sources and idea generation technique required to identify new ways to satisfy needs and monitor the evolving technologies.
3. Screening and evaluation: - New product screening is the development and systematic use of criteria to evaluate the potential of new product ideas. It is also known as cost benefit analysis.
4. Business analysis: - is an in-depth study of the estimated economic feasibility of new product ideas. It is also known as SWOT analysis.
5. Development: - it involves developing the product (or service) itself (with attention to attributes preferred by customers) and further development of manufacturing, packaging and distribution cost estimates.
6. Testing: - testing stage thoroughly evaluates potential market acceptance through the use of market research.
7. Commercialization: -it is the actual introduction of the product into the market place, with all the related decisions and resources commitments.
Characteristics of good product design
1. Functionality: - while designing a product, the most important consideration lies with the function that the product is expected to perform. Products are designed with the objective of meeting a customer need.
2. Reliability: - in this context can be termed as the dependability on the performance of a product for a designated period of time, without deterioration in the quality of performance of the product.
3. Productivity: - the possibility of producing the product under consideration in the required quantity, at a feasible cost.
4. Maintainability: - products are designed to perform reliably for the designated period of time, but still some amount of maintenance is required.
5. Cost effective: - the cost of a production for a product is influenced at the designing stage and plays an important role in economical manufacturing of that product.
Product development techniques
To develop a good product, a company needs to follow a particular development technique. Various product techniques are that can be used to develop a product, which meets the market requirement:
1. Standardization: - in which company establishes a standards, such as product dimensions, equipments used, and quality for its product to maintain consistency.
2. Simplification: - it involves decrease in the number and variety of product of a company. It is mainly concerned with the reduction of diversity among products, assemblies, parts, materials and design features.
3. Specialization: - it involves concentration of efforts upon a limited field of endeavour. The activities are divided and subdivided and allocated to the employees concerned. This technique enables the employees to gain specialized knowledge of that activity.
4. Diversification: - it involves introducing new products and new models of the old products. This technique also involves introducing new markets, new technologies and new product line in accompany.
Introduction
Product development refers to the process of creating new products or modifying the existing ones. The needs and requirements of consumers keep on changing over the period of time. Therefore, to meet these needs successfully, new products need to be introduced in the market. The objective to achieve customer satisfaction or improve the feasibility in production, calls for modification in the existing products.
Product design and analysis
Product design is the first step immediately after accepting the concept of a product. It has direct bearing on plant layout and in process material flow. It is concerned with critical analysis of different design features with relevance to place of use, substitute materials and careful planning equipment alternative for manufacturing the products. It is a repetitive task and it is strategic in nature. Product design has significant impact on profitability competitiveness.
Needs for product design and development
1. Introduction of new products
As mentioned new products are developed to meet the changing needs of the consumers. To understand the need to develop and introduce new products to the market, you need to keep in mind the micro level objectives of an organization as:
o Addressing the changes required by the consumers, thereby providing them with complete satisfaction.
o Growth in the market share or keep the existing market share in place for the existing products by adding more variety and new design to the product range.
o Attracting the consumers that are sensitive to changing fashions, thereby providing better marketability to the product range.
o Filling in the missing products in the product range to provide consumers with all the possible options with in the same brand, thereby keeping the brand loyalty intact with the consumers.
o Breaking the monotony in the designs and features of the product such as the appearance or functions of a product.
We can say that the introduction of new products in the market is mostly for the reason to increase sales and provide an organization with better marketability of products.
2. Modify the existing products
We have just discussed the reason to introduce new products in the market, along with this design and development also perform an important role in modifying the existing products. These modification are made for reason such as:
o Improving the life cycle of the product in the market.
o Providing economics, since the expenses pertaining to developing new products are generally much higher than for modification.
o Keeping the advantage of already established product in the market by improving time to time.
o Utilizing the production resources effectively.
o Increasing market share with economical pricing, by passing on the advantage of reduced cost of production.
To summarize, we can further sat that introducing new product adds to the profitability for an organization with an increase in sales. Modification of the existing products provides sustainability in the market also cost reduction to maintain the profitability.
Steps in new product development
1. New product strategy development: - new product strategy provides corporate strategic guidelines for the new product development process through assessment of internal experience and external opportunities.
2. Idea generation: - it involves the use of various idea sources and idea generation technique required to identify new ways to satisfy needs and monitor the evolving technologies.
3. Screening and evaluation: - New product screening is the development and systematic use of criteria to evaluate the potential of new product ideas. It is also known as cost benefit analysis.
4. Business analysis: - is an in-depth study of the estimated economic feasibility of new product ideas. It is also known as SWOT analysis.
5. Development: - it involves developing the product (or service) itself (with attention to attributes preferred by customers) and further development of manufacturing, packaging and distribution cost estimates.
6. Testing: - testing stage thoroughly evaluates potential market acceptance through the use of market research.
7. Commercialization: -it is the actual introduction of the product into the market place, with all the related decisions and resources commitments.
Characteristics of good product design
1. Functionality: - while designing a product, the most important consideration lies with the function that the product is expected to perform. Products are designed with the objective of meeting a customer need.
2. Reliability: - in this context can be termed as the dependability on the performance of a product for a designated period of time, without deterioration in the quality of performance of the product.
3. Productivity: - the possibility of producing the product under consideration in the required quantity, at a feasible cost.
4. Maintainability: - products are designed to perform reliably for the designated period of time, but still some amount of maintenance is required.
5. Cost effective: - the cost of a production for a product is influenced at the designing stage and plays an important role in economical manufacturing of that product.
Product development techniques
To develop a good product, a company needs to follow a particular development technique. Various product techniques are that can be used to develop a product, which meets the market requirement:
1. Standardization: - in which company establishes a standards, such as product dimensions, equipments used, and quality for its product to maintain consistency.
2. Simplification: - it involves decrease in the number and variety of product of a company. It is mainly concerned with the reduction of diversity among products, assemblies, parts, materials and design features.
3. Specialization: - it involves concentration of efforts upon a limited field of endeavour. The activities are divided and subdivided and allocated to the employees concerned. This technique enables the employees to gain specialized knowledge of that activity.
4. Diversification: - it involves introducing new products and new models of the old products. This technique also involves introducing new markets, new technologies and new product line in accompany.
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