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AGENDA – Unit 4
Unit 4: Life Cycle of a Product
Dr. N. Rajesh Mathivanan
Professor, Mechanical Engg. Dept.
PES University, Bangalore.
• Product life cycle Management
• Automating information flow -work
flows
• Creation of work flow templates
• Work flow Integration
• Product value
• Design for safety and reliability
• Design for environment consideration
• Economic factors influencing design:
Economic analysis, profit and
competitiveness,
• Break-even analysis
• Economics of new product design

Product Life Cycle Product Life Cycle

• Product life cycles describe the changes in
consumer demand over time. No product can
be in demand forever. Trends, technology and
lifestyles change, which affects consumer
demand.

Product Life Cycles Product Life Cycles

maturity
• Introduction Stage
• When a product is first introduced a product
decline launch occurs. It may occur regionally,
growth provincially, or nationally, depending on
Stages
decision predicted demand.
point • Launching a new product is very expensive, so
introduction
initially the price is high. Costs involved include:
Time machinery, set-up, training, promotion, storage,
The traditional product life cycle consists of five stages. packaging, market research.

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Product Life Cycles

• Introduction Stage • Introduction Stage

• Who buys at this stage? • Main purpose of marketing is to inform the
• Curious people, those consumer about new products and to
who always want new establish the value equation as early as
possible.
things first:
– Communicate the benefits that this
- Early adopters product/service will offer you
- Trendsetters.

Case Study Case Study

• Products currently in introduction • Products currently in introduction

Growth Stage Growth Stage

• After adopters find and use a product, others will
follow. The product is visible, consumers see/hear
others use it. Reputation spreads through word of
mouth and advertising.
growth
Stages • Manufacturers advertise heavily—will the product
profit or fail?
introduction • The product may even be scrapped at this stage. If it
Time is and it has lost money, it is called a bust.

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Growth Stage
• The faster a product reaches the growth stage, • As competitors enter the market, companies
the sooner it starts making a profit. strive to maintain their market share: the
• The first company to enter a market will pay company’s sales as a percentage of the total
the most for development and advertising, for the market.
but it will have a major advantage: no
competition.

Products under growth stage . . . Growth Stage

• Factors preventing companies from realizing
profit are called barriers to entry.
– These may include:
• small market size
• cost of R&D
• ad expenses
• equipment costs...

Growth Stage Product Life Cycles

• Eventually only the most competitive products
remain on the market. Competitors stimulate
market growth through advertising and wide
distribution.
• Growth Stage
• A company may produce a low-priced version
of a product to establish a minimum price for
a specific line, called a low-end product.
Usually not sold under a well-known brand
name.

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Growth Stage Product Life Cycles

• Maturity Stage
• The period during which
sales start to level off

maturity

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Product Life Cycles Product Life Cycles

• Maturity Stage
• Marketers keep the brand name in front of
consumers. Often the success and longevity of
the product is highlighted.
• Maturity Stage
• Because major costs have been recuperated
and the cost of sales and distribution is low,
products usually make large profits during this
stage.

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Product Life Cycles Maturity Stage (LONG TIME)

• Maturity Stage
• Often times companies will take this profit to
develop new products and product launches.

• EXAMPLE: Disney took profits from its

amusement parks to launch a cruise ship line.
This also expands their brand name into a new
market.
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Maturity Stage (Shorter Time) Product Life Cycles

• Decline Stage
• Occurs when a company cannot find new
consumers for their product. Profits decrease;
marketers try to find the reason for the
decline.

decline

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Product Life Cycles Decline Stage

• Decline Stage
• If it is a temporary decline
– it may be reversed by a small price
– change in the design
– new ad campaign
– Change in the packaging

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Product Life Cycles Product Life Cycles

• Decision Point Stage • Decision Point Stage
• The final stage of the product life cycle. • A product may be reformulated, repackaged,
Marketers must make important decisions and reintroduced.
regarding a product’s future. • Most often maintenance of a product involves
new promotion and new pricing.

decision
point
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Product Life Cycles

• Decision Point Stage
• If it looks like there is little hope for significant Nontraditional Product Life
profit–due to market saturation, decreased
demand, or otherwise–a suggestion may be
Cycles
made to abandon the product.

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Nontraditional Product Life Cycles Nontraditional Product Life Cycles

• Fads • Fads
• A product which is extremely popular for a
very brief period of time, and loses popularity
just as quickly.

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Nontraditional Product Life Cycles Nontraditional Product Life Cycles

• Fads • Trends
• Fads are unpredictable, and high-risk.
Companies try to get out of the market just as
the fad peaks. If they wait too long, they get
stuck with excess inventory.

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Nontraditional Product Life Cycles Nontraditional Product Life Cycles

• Trends • Niche Markets

• A trend has a more lasting effect on the
market than a fad. A trend is usually a
movement towards a style of product.

Organic foods, Juice, Social Networking,

cell phones, Online Shopping

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Nontraditional Product Life Cycles Nontraditional Product Life Cycles

• Niche Markets • Seasonal Markets

• A small section of the market dominated by a
small group of products.
• Short growth, level maturity.

Sweetener packets,

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Nontraditional Product Life Cycles ACTIVITY

• Seasonal Markets
• Consumer demand changes and is effected by
the weather. Marketers anticipate periods of
high and low demand, and work to create off-
season opportunities.
Ice cream parlours, resorts,
• Complete the “Product Life-Cycle with regard
tp Cricket players
– Find an 5 player who are currently in each stage of
the product life cycle
• Introduction – Just being introduced to the public –
almost “underground”
• Growth – is starting to make it big
• Maturity – popularity has been steady
• Decline – getting less and less popular by the year
• Decision Point – either needs to redefine their career
using AutoTune or should star on Celebrity Re-hab

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Product Life-cycle Management Product Life-cycle Management

• Product lifecycle management (PLM) is the
process of managing the entire lifecycle of a
product from inception, through engineering
design and manufacture, to service and
disposal of manufactured products.
• PLM integrates people, data, processes and
business systems and provides a product
information backbone for companies and their
extended enterprise.

Benefits of Product Lifecycle Management

• Reduced time to market

• Increase full price sales
• Improved product quality and reliability
• Reduced prototyping costs
• More accurate and timely request for quote
generation
• Ability to quickly identify potential sales
opportunities and revenue contributions

Benefits of Product Lifecycle Management Benefits of Product Lifecycle Management

• Savings through the re-use of original data • Seasonal fluctuation management

• A framework for product optimization • Improved forecasting to reduce material costs
• Reduced waste • Maximize supply chain collaboration
• Savings through the complete integration of
engineering workflows
• Ability to provide contract manufacturers with
access to a centralized product record

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Areas of PLM a

• Systems Engineering (SE)

• Product and portfolio Management (PPM)
• Product Design (CAx)
• Manufacturing Process Management (MPM)
• Product data management (PDM)

Safety and Reliability Fault analysis

• System with safety requirements.
• Functional requirements to define what
the system developer must achieve.
• The ability of a system to satisfy both its
functional and its safety requirements is
limited by the presence of faults within
the system.
• Term ‘fault’ means any kind of defect
within the system.
• Faults may be
– random: such as hardware component failures
– systematic: such as software or other design faults.
• Random faults may be investigated statistically and given
appropriate data it may be possible to make predictions
concerning the probability of a component failing within a
given period of time.
• Systematic faults are not random and are thus not susceptible
to statistical analysis. It is therefore much more difficult to
predict their effect on the reliability of a system.

Fault analysis Design for Safety

• To design a structure to perform its intended function with • Manufacturer is also committed to an implied
desired confidence, all the uncertainties involved must be guarantee of safety to the user.
considered in the design process.
• There are many conditional safety standards for
• The traditional way of dealing with uncertainties is to use
conservative values of the uncertain quantities and/ or safety products:
factors in the framework of deterministic design. 1. As safe as they can possibly be
2. Safe, according to industry-wide standards
3. Safe, if used in the manner and situations specified in the
instructions
4. Safe for a child who may behave impulsively.
• Engineers and designers are concerned about the
legal aspects of safety.

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Mistake Proofing • Safe design refers to the integration of hazard

identification and risk assessment methods early in
• A defect-free or fail-safe design is one that will not lead to accidents, in
the design process to eliminate or minimise the risks
the case of functional failures. of injury throughout the life of a product being
• Since a functional repair is much cheaper than a damage from an designed.
accident, fail-safe designs are recognized as superior and necessary in
many products.

Foam plastic coatings

Steps to Consider for Safe Design Hazard Analysis Techniques

• Determine scope of the product’s use • Gross-hazards analysis
• Identify the environment product will be used in
– Done early in design process
• Describe the user population
• Determine all possible hazards – Considers overall performance rather than individual
• Determine the probability of certain hazards components
• Determine the seriousness of possible injury/loss • Classification of hazards
• Postulate alternative design features to eliminate hazards (incl. – Identifies types of hazards from above
warnings, instructions)
• Determine whether alternative design introduces new hazards – Displays them according to severity
• Investigate similar products or environments
• Determine cost of alternative design
• Determine whether warnings or instructions will be followed by the
user (i.e., test them)

Failure mode and mechanism analysis Hazard Analysis Techniques

Modes Mechanisms • Fault tree analysis
– Plastic collapse – Force/displacement – Outlines possible sequences of events leading to an
– Excessive deformation – Time (history of incident
– Fatigue initiation or occurrence)
– Instability (elastic or – Dimensions
• Energy release analysis
inelastic) –Temperature – Determines energy release in catastrophic event
– Brittle Failure – Environment (chemical
–Creep or physical)
– Corrosion – Material State

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Hazard Analysis Techniques
• Catastrophic analysis
– Identifies modes of failure that would create a catastrophic
event
• Systems analysis
– Reveals interfaces and interrelationships between systems
• Maintenance hazards analysis
– Evaluates performance of maintenance procedures and
whether such actions create new hazards
• Human factors analysis
– Defines skills needed to operate and maintain systems
– Evaluates role human capability and error
Fault Tree Analysis
Fault Tree Analysis - Limitations
• Requires thorough understanding of system and its
operation in normal and abnormal states.
• No formalized way to ensure consideration of human
factors
– Quantification is difficult
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Fault Tree Analysis
• A logic event diagram showing symbolic
representation of the necessary and sufficient
subsystem failures needed to result in an undesired
event
• Most important step: clearly defining the top
undesired event
Fault Tree Analysis - Advantages
• Formalized, systematic deductive analysis approach
• Forces thought about possible product hazards
• Results in clear graphic record of the process
• Readily identifies logical causes of accidents
• Can be evaluated qualitatively or quantitatively
• Useful in evaluation of design or procedural alternatives
• Identifies areas for detailed evaluation by other techniques
Design for Reliability
• Product Reliability is the probability that a product will
continue to work normally over a specified interval of time,
under specified conditions.
– Reliability of 0.99 (or 99%) over the next 100 hours.
• A more reliable product spends less of its time being
maintained.
• Reliability is extremely design-sensitive. Very slight changes to
the design of a component can cause profound changes in
reliability
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Options of Product reliability Options of Product reliability

• Pen could be:
1. Disposable.
• It will be reliable until the ink is exhausted, at which point it is
discarded. Neither the ink nor parts of the pen body are
replaceable, so the pen body needs to last no longer than the ink.
The product has a short service life.
2. Refillable.
• It will be designed for routine replacement of ink (usually as an ink
cartridge), but pen body parts will not be replaceable. The body
must be reliable enough to outlast the specified number of ink
replacement cycles. The product has a moderate service life.
3. Repairable (fully maintainable).
• The pen is refillable and all body parts are replaceable. The product
has an extendable service life (until the spare parts are no longer
available).
• Pen could be:
1. Disposable.
• It will be reliable until the ink is exhausted, at which point it is
discarded. Neither the ink nor parts of the pen body are
replaceable, so the pen body needs to last no longer than the ink.
The product has a short service life.
2. Refillable.
• It will be designed for routine replacement of ink (usually as an ink
cartridge), but pen body parts will not be replaceable. The body
must be reliable enough to outlast the specified number of ink
replacement cycles. The product has a moderate service life.
3. Repairable (fully maintainable).
• The pen is refillable and all body parts are replaceable. The product
has an extendable service life (until the spare parts are no longer
available).

Reliability & The Bathtub Curve Premature failures can be largely eliminated by identifying and
designing out the component failure modes as illustrated below:

Infant mortality

Safety Critical Design Safety Critical Design

• Product reliability and safety are related. If a product 1) Over-specification: For product applications in the
is performing a safety-critical role, then failure of a building and construction industry, it is standard
key component can have dire consequences. practice to include a ‘x5’ safety factor in all material
• There are several approaches to minimizing the risk strength calculations.
of catastrophic failure: – For example: a suspension bracket for a 10kg light fitting
1. Over-specification will be designed to carry at least 50kg.
2. Redundancy (parallel)
3. Redundancy (standby)
4. Fail-safe design

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Safety Critical Design
2. Redundancy (parallel): Multiple identical components are
used simultaneously, any one of which would be capable of
supporting normal product function.
– For example, a passenger lift has 4 cables carrying the lift cabin, all
sharing the load. Any one cable would be capable of carrying the full
passenger lift load. A failure of up to 3 cables will not endanger the lift
occupants.
Safety Critical Design
4. Fail-safe design: Assumes an inherent risk of failure for
which the cost of any of the above three strategies would be
prohibitively high. The product or system is designed to drop
into a safe condition in the event of partial or total failure.
– i. Toys can be designed to fracture at pre-determined weak points so
as to leave no sharp projections that would injure a child.
– ii. Railway train brakes are released by vacuum, and applied by
admitting air. If a brake pipe bursts, the admitted air automatically
applies the train brakes.
• Automating information flow-work flows
• Creation of work flow templates
• Work flow Integration
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Safety Critical Design
3. Redundancy (standby): A back-up system is held in
reserve and comes into operation only when the
main system fails.
– For example stand-by generators in hospitals, and reserve
parachutes.
Pareto analysis (the 80/20 rule)
• In the context of product reliability, it is said that 20% of
product faults are responsible for 80% of the failure costs.
Information
• Design is essentially a process of gathering and organizing
information.
• The latent information, available at the effort and cost of
gathering it at each point in the cycle, is of great importance
because it is utilized for the redesign of products, or for the
design of new products.
• The task of maintaining the store of information in a useful
fashion is a formidable task.
• The gathering, organizing, updating, storing and retrieving of
such data is very large and is very important.
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Workflow Diagram Example

Value addition Product Value

• Product may be raw materials, energy, amortizable production • The product value
facilities, and human effort. depend on
• Some amount of these economic factors is required to produce one
unit of product. Associated with this amount is a value, generally – its production costs,
measurable in rupees and usually called the cost of production. – its overall market value
• The difference between output and input values, called gross profit, and
provides an economic driving force which motivates the enterprise. – the value of the product
• Another measure of value is the ratio between the value of output as perceived by a targeted
and the cost of input. group of consumers.
• Similarly, there is an augmentation of value through the process of
distribution, accompanied by an augmentation in value, arising
from a more favourable time and location for marketing.

Product value is an assessment of the worth of a good

or service.

a Types of Product values

• Every product's value consists of the following
elements:
– Practical utility
– Perceived value
– Social value
– Identity value

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Types of Product values Types of Product values

• Practical utility • Perceived value
– This is the tangible benefit that a product enables, – This is the extra value a customer perceives as a result of
whether that's warmth, cleanliness, or entertainment. good marketing, product design, product quality, or
Many products derive all of their value from this utility. exception product/market fit.

Types of Product values Types of Product values

• Social value
– When I can use a product to my benefit in a social
situation, it can be transformed in value. All gifting-type
products are influenced by this source, as Hallmark has
long understood. But plenty of other product categories
depend on social factors: status purchases, beauty
products, fashion products, marketing of diamonds.
• Identity value
– This is the strongest source of value of all, and it's a little
tricky to differentiate from the preceding two sources. This
is the benefit you get from incorporating a product into
your self-conception.

Design for environmental consideration Dunlop Recycled Wellington Boots

Dunlop Wellington boots are made from
polyurethane, PVC, and rubber.

Dunlop developed a line of recycled boots.

Dunlop takes back used Wellingtons from

customers. Old boots are re-ground and
re-manufactured into new boots.

Peter Opsvik (for Stokke, 1972) designed the award-winning Tripp Trapp
chair to grow with the child, increasing the effective lifetime of the chair.

www.stokke.com

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Environmental Impacts Design for Environment (DFE)

Design for Environment (DFE) is a method
to minimize or eliminate environmental
impacts of a product over its life cycle.

Global Warming Resource depletion Solid waste Effective DFE practice maintains or
improves product quality and cost while
reducing environmental impacts.

DFE expands the traditional manufacturer ’ s

Water pollution Air pollution Land degradation focus on the production and distribution of its
products to a closed-loop life cycle.

Product Life Cycle Life-Cycle Assessment (LCA)

• Quantifies environmental impact over product life cycle
• Steps in LCA analysis:
Materials Production 1. Prepare proposed design options
2. Identify life cycle, including recycling and disposal
3. Identify all materials and energy sources used
4. Identify outputs and waste streams
Disposal Distribution 5. Quantify impacts of each material, energy, waste
6. Aggregate impact into categories for comparison
• Requires specialized LCA software and training
• Commercial LCA software growing in capability
Use
– SimaPro, GaBi, OpenLCA, Sustainable Minds, …

Two Life Cycles Two Life Cycles

Post-industrial Non-renewable
Recycling Resources Post-industrial
Recycling

Extraction Materials Production

Resources Renewable Materials Production
Post-consumer
Remanufacturing Resources Resources
Recycling
Post-consumer Remanufacturing
Natural Industrial Recycling
“Bio” “Product” Natural Product
Natural Life Cycle Life Cycle
Distribution Natural “Biological” “Industrial”
Decay Recovery Decay
Life Cycle Life Cycle Distribution
Reuse Toxics
Recover
Disposal
Organics y Reuse

Deposit Use Deposit

Inorganics
Use

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Product Development Process DFE and Material Guidelines

Example DFE Guidelines Example Material Guidelines

Concept System-Level Detail Testing and Production • Do not combine materials • Use recycled and recyclable
Planning
Development Design Design Refinement Ramp-Up incompatible in recycling industrial materials
• Label all component materials • Use natural materials which
for recycling can be returned to biological
• Enable easy disassembly into decay cycles
DFE Goals DFE and Material Assess Impacts Improve separate material recycling • Use processes which do not
and Team Guidelines and Refine Designs DFE Process streams release toxic materials
• Use no surface treatments • Capture and reuse all
• Eliminate packaging hazardous materials
DFE can be integrated into the • Reduce weight and size for
standard product development process. shipping

Nike Considered Design Samsung Reclaim Mobile Phone

• New products are designed using
environmentally preferred materials. • Materials Analysis
• The materials analysis tool evolves to Tool
reflect best practices and Nike’s
changing environmental values.
• Nike’s goal is for all new products to be
developed using its Considered Design
standards.
– footwear by 2011 • Biopolymer casing
– clothing by 2015 • Recycled paper packaging,
– equipment by 2020 printed with soy-based ink
• Online instruction manual
• Energy Star rated charger

www.samsung.com

Better Packaging for Puma:

Clever Little Bag
Four Simple DFE Rules
1. Design products and processes with industrial materials
• Designed by Yves Béhar and fuseproject that can be recycled continually with no loss in
• 65% less cardboard than standard box performance, thereby creating new industrial materials.
• No laminated printing, no tissue paper 2. Design products and processes with natural materials that
• Less weight and space in shipping can be fully returned to the earth’s natural cycles, thereby
creating new natural materials.
• New reusable bag replaces the polyethylene
3. Design products and processes that do not produce
retail bag, is made of recycled PET, and is also unnatural, toxic materials that cannot be safely processed
recyclable by either natural or industrial cycles.
• Puma plans to start shipping in 2011 4. Design products and processes with clean, renewable
sources of energy, rather than fossil fuels.
vision.puma.com
www.fuseproject.com

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Assignment
• Think about the environmental impact of the
products and services we use.
• Identify a product or service with reduced
environmental impact.
• Be prepared to describe the product or service
class.

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