PRODUCT DESIGN AND

DEVELOPMENT

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 PRODUCT DESIGN AND DEVELOPMENT
 Concerns with most economically feasible method to
apply the principles identified through research.
 Development involves design, redesign and fabrication of
new or modified product and then testing it to find its
usefulness

Product research & development Product development is

concerns with
•Functional efficiency
•Quality
•Unexpected use
•Investigation of material and
possible substitute
•Utilization of waste product
•Standardization and customer
satisfaction
essential to
•Meet changing customer needs
•Manufacture improved and low
cost product
•Maintain sales position and
profit margin
Involvement of Marketing,
R&D, Design, Mfg, Accounts 2
and Personnel dept.
DEVELOPMENT METHODS
 Imitation: making product similar to one already in
market
 Adaptation: developing an improved product for an
already existing product in market
Electronic and atomic clocks instead of mechanical clock
 Invention: making something entirely new,
synthetic fiber, nylon etc.

Product development may involve

-Small refinement
-A major redesign
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It takes considerable expenditure
 PRINCIPLES OF PRODUCT DEVELOPMENTS
 Standardization:
Producing maximum variety of products with minimum
variety of material, parts, tools and processes
Leads to economical product: economy of scale
Adv: Fewer specifications, drawings to be prepared
Better utilization of resources, less training required
Lesser design mistakes
 Simplification:
Reducing variety of the products manufactured
Adv. fewer parts, (fewer types of components in inventory), lower production costs
 Specialization: Concentrating efforts on a particular field of
action
Adv. Workers achieve high level of skills
Smaller time to complete the job
Limits:Not flexible (labour and equipment) 4
Monotony
PROCEDURE
 Get new idea -from customers, internal resources, competitors, distributers and
suppliers
 Separate good and feasible ideas
 Evaluate ideas technically – Method of mfg, labour, equipment required, cost
of product, performance characteristics
 Evaluate idea from market perspective: acceptability of customers, rate of
return,
 Take the final decision – go ahead or forget
 Get into production – product is designed, equipment ordered, workers selected
and trained
 Introduce product into the market Prepare while product is under
manufacturing

- Size, location and characteristics of the market

- Advertisement policies
- Appealing packing
- Channel of distribution
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- Price, discounts and guarantee
- Service after sales
EFFECT OF DESIGN ON COST
 A complicate product will associate with high cost
 Cost may be reduce by considering following
 Material:
-Cheap and easily available: Steel, plastic
-Alternate cheap material: Cycle mudguard, car bumpers,
PVC pipes,
-Minimum material to be used: FEM analysis and optimization
-Metal components may be replaced with non-metallic components
Depending on functional requirements
 Design should be made out of standard parts
(interchangeability) It cuts down cost.

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EFFECT OF DESIGN ON COST CONTD..
 Minimum components: Lesser time and resources to
assemble the product
 Avoid tight tolerances: Less rejections, low cost
machinery
 High surface finish: More cost as extra processes and
equipment required
 If some parts can’t be made in-house: subcontract them:
Saving on m/c & labour
 If possible redesign product to use existing facilities:
Higher utilization of m/s
 Min. no. of operations involved: Lesser down time

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 REQUIREMENTS OF GOOD PRODUCT DESIGN
 Customer satisfaction
 Adequate profit
•Make within available resources
•Manuf. Processes to be decided
based on quantities required
•Use of standard components
•Minimum no. of parts
•Min. no. of operations,
•Easy to pack and distribute
•Functions correctly
•Required degree of accuracy
•Standard of reliability
•Ease of operation
•Ease of service/repair
•Good space utilization
•Ability to withstand rough
handling
•Pleasant appearance
•Reasonable price
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CONCEPT DEVELOPMENT AND TESTING
1. Develop Product Ideas into
Alternative
Product Concepts

2. Concept Testing - Test the

Product Concepts with Groups
of Target Customers

3. Choose the Best One

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MARKETING STRATEGY DEVELOPMENT
Part One - Overall:
Target Market
Planned Product Positioning
Sales & Profit Goals
Market Share

Part Two - Short-Term:

Product’s Planned Price
Distribution
Marketing Budget

Part Three - Long-Term:

Sales & Profit Goals
Marketing Mix Strategy :
4Ps(product, price, place, promotion) 10
BUSINESS ANALYSIS AND PRODUCT DEVELOPMENT
Business Analysis
Review of Product Sales, Costs,
and Profits Projections to See if
They Meet Company Objectives

If No, Eliminate
Product Concept

If Yes, Move to
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Product Development