3 Prod Decision Analysis and NPD

8/3/2019 3 Prod Decision Analysis and NPD

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Product Decision, Analysis

and New Product

Development

Presented by: Shreedevi Manivannan


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Product Design

It is concerned with the form and function of a

product. Form design involves the

determination of what a product should look

like i.e., the shape and appearance of theproduct, what will it be made of (product

structure) and how will it be made (process

design). Functional Design deals with what

functions the product will perform and how itperforms these.


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What Does Product Design Do?

Translates customer needs into

product/service requirement.

Refining existing products (marketing)

Developing new products (NPD)

Formulating quality goals (QA, production)

Formulating cost targets (accounting)

Constructing and testing prototypes(marketing, production)

Documenting specification (Product Design)


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Objectives of Product Design

Overall objective is profit generation in the

long run

To achieve desired product quality

To minimize development time & cost

To reduce the cost of the product

To ensure producibility or manufacturability

(Design for manufacture & Assembly)


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Factors Influencing Product Design

Customer Requirements/Convenience of Operators

Trade-off between Function & Form

Types of materials used

Work methods & equipments

Cost/Price Ratio

Product Quality

Process Capability

Effect on existing products

Packaging


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Characteristics of Good Product

Design

Function or performance

Appearance or aesthetics

Reliability

Maintainability

Availability

Producibility

Simplification

Standardisation


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Approaches to Product Design

Designing for Customers (Quality Function Deployment)Voice of the customers

Designing for Manufacture & Assembly (DFMA) Over-the-wall approach has now changed to Concurrent

Engineering. Designfor Manufacture : Design compatible with organizationscapability.Design for Assembly : Focus on reducing the number of parts ofthe product OR on assembly methods and sequence to be

employed.

Designing for ease of production: Specification(Detailed description of the product); Standardization (Reducesvariety among a group of product); Simplification (elimination of

complex features through product design)


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Concurrent Engineering

Old over-the-wall sequential productsdesign process

Each function did its work and

passed it to the next function

Improved Concurrent Engineeringprocess

All functions form a design team

that develops specifications,

involves customers early, solves

potential problems, reduces

costs, & shortens time to market


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Approaches to Product Design

Designing for Quality : This includes a Robust

Design, Designing for Production, Designing

for Automation & Design for Reliability

Designing for Ergonomics (Human FactorEngineering)

Designing for Environmental Protection

(Green Designs & Universal Designs)

Design for Disassembly & Recycling


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Definition

New Product Development

Development of original products, product

improvements, product modifications, and new

brands through the firms own R & D efforts.


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Why Go Into New Products

Development?

A. Product Life Cycles

B. Corporate Reasons for New Product

Development

C. Marketplace Reasons for New Product

Development

D. Technological Reasons for New Product

Development E. Governmental Influences on New Product

Development


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New Products Development Process

Guidelines and Objectives Concept Generation Business Analysis The Concept Refinement System Qualitative

Refinement Quantification and the Blueprints Business Analysis Check Developing and Testing of Products

Developing and Testing of Advertising and Packaging Business Analysis Check Market Test Business Plan Preparations and Full Scale Marketing


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Concept Generation

As part of your new product development program,you will need to acquire a large number of new

product concepts called concept portfolio

A large number is very important. You shouldavoid dealing with one good idea.

Always work, in the early stage, with a largenumber of ideas and handle them in convenient

groups. Aim at satisfying known consumer needs,

appropriate technology to be selected later.


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Business Analysis

The whole objective of new product development is

to develop a business.

This system allows us to sort our concepts by

viewing them as potential business propositions. It will allow us to estimate future efforts before we

spend any market research dollars.

We must always keep in mind that our ultimategoal is to develop business, not product.


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The Concept Refinement System

Qualitative Refinement

The refinement process begins with focus group

interviews involving members of the target market.

In the most simple case, three focus groups should

suffice for up to six concepts. Each group consists of about 10-12 participants,

and is moderated by a trained, professional

moderator.


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Objectives of the Concept Refinement

System

It allows us to identify the new concepts that have some

general consumer interest.

In any focus group, a large number of concepts will neither

immensely interest nor be rejected by the consumer.

The most important thing to be learned from the focus

groups is the consumers understanding of the product

concepts.

Finally, you will have isolated a few new product concepts

that appear to be interesting to the consumer, and the list of

attributes for these concepts.


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Quantification Process

Once the concepts have been polished by qualitative

research, we need to ascertain the nature and magnitude of

the business proposition we are facing.

Objectives of providing us with following data:

An estimate of each concepts sales potential

Demographic (target) refinement (including psychographics)

The Positioning Blueprint (for use in creating advertising,

packaging, and naming the product)

The Product Blueprint (for use by R&D)


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Developing and Testing of Products

At this stage, you are able to submit the ProductBlueprint to the R&D/Manufacturing Group.

This blueprint will not only tell them what is that

you are aiming to market, but also allow them tojudge the desirability of various trade-offs in thedevelopment process, because it will show therelative weights of various product attributes thatare part of the product.

During the development process a great deal oftesting with the actual consumer should be done.


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Quantification and the Blueprints

The sales volume figure is important because it will

be a key factor in your equation of just how

desirable a business this new product concept really

is. The blueprints are the most important output of this

system.

Positioning Blueprint is the base for all consumer

communications.

Product Blueprint is the communication with the

R&D/Manufacturing Group.


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Positioning Blueprint


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Product Blueprint


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Business Analysis Check

To re-evaluate each concept utilizing the data fromthe previous steps

To use the same business analysis system applied

in the Business Analysis step. To provide two additional and very important

pieces of data A rough sales potential projection for each concept

To see much more clearly how the final productshould appear, what must be built into it, and whatyou want to say about it.


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Business Analysis Check

This is probably the last step you can make before

spending money in the marketplace.

To utilize the latest trial and repeat-frequency data

from product and advertising testing to prepare atight financial plan.

Using the business analysis system, you should

make a last check of other variables to make sure

that no large changes have occurred.


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Market Test

There are two choices. First, a traditional test market-whichcould be a geographical location (or a certain group of yourconsumer). Or, you can use a mathematical model thatsimulates conditions in your industry.

The method you choose should yield the following: Very tight financial data.

If you use an actual market, it should give you a greatdeal of data in the following areas:

1.Advertising weight and its relationship to consumerawareness and trial.

2.Marketing strategy and programs and further, tradestrategy and programs


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Technology at Every Step

Technological advancement is taking place by

leaps and bounds.

Right from Idea Generation stage to Market

Testing stage, technology paves the way forbetter R & D, reducing Turn-around-Time

(TAT) and increasing efficiency for each

process.


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Thank You

Documents

3 Prod Decision Analysis and NPD