BBX10403 PRODUCT DESIGN IN WELDING| SEM 2 20202021

CHAPTER 1:
INTRODUCTION TO PRODUCT Ts. Mohd Fairuz Bin Marian
DEVELOPMENT
HIGHLIGHTS
1. Customer identification and Problem Statement
2. Introduction of Product Development
3. Example of Product Development (Piping, Structure, Boiler, Vessel)
4. Customer Requirements Analysis

© FAIRUZM@UTHM.EDU.MY | 2018 2
NPD – NEW PRODUCT
DEVELOPMENT
New Product Development:
The development of original products, product improvements,
product modifications, and new brands through the firm’s own
product R&D efforts.
A product that can be offered to a market to satisfy needs and
demands.
New products are responsible for employment, economic growth,
technological progress, and high standards of living

© FAIRUZM@UTHM.EDU.MY | 2018 3
NPD DEFINITION

© FAIRUZM@UTHM.EDU.MY | 2018 4
THE IMPORTANCE OF NPD
Importance of New Product Development strategy
Why do we need a thorough NPD strategy? Consider these 4 statistical facts about
how products fair according to data from Mckinsey Global Institute:
1. Only 4 in 7 product ideas enter the product development stage
2. Only 3 products get launched from 14 product ideas
3. Only 1 in 7 product ideas will yield a successful product
4. Launched products have a failure rate of 25% to 45%

© FAIRUZM@UTHM.EDU.MY | 2018 5
© FAIRUZM@UTHM.EDU.MY | 2018 6
NPD PROCESS

© FAIRUZM@UTHM.EDU.MY | 2018 7
Brainstorm ideas for a product, focusing on solving your customers’ problems.
Create buyer personas, perform research, and dig deep into their issues.
You can use as many sources of information as you need, not just your customers.
Speak to your suppliers, distributors, competitors, and employee contributions.
There are 2 sources of product idea generation:
 Internal :- Comes from own R&D department. Sales staff also contributed to new product
ideas.
 External :- Comes from customers, distributors (suggestions, complaints and feedback) last
but not least from competitors.

© FAIRUZM@UTHM.EDU.MY | 2018 8
The ideas which are generated in step no. 1 is screened in this step. Ideas that are
inconsistent with the company objectives and resources are dropped.
 Expanding each idea into a full product concept.
 To decide whether the product idea can be converted into a business proposition.
 Assessing each idea for its potential value to the company.

Various factors are considered in the process of screening new product ideas like the
technical know-how required, the possibility of marketing, sales potential, and
availability of raw material.
Therefore, the main purpose of his step is to scrap unsuitable ideas as quickly as
possible and look out for the idea which can be developed.

© FAIRUZM@UTHM.EDU.MY | 2018 9
SCREENING TOOLS

© FAIRUZM@UTHM.EDU.MY | 2018 10
CONT…
1. DECISION MATRIX :- A structured concept selection of screening and scoring, end up
with feasibility score and ranked.
2. COST-BENEFIT ANALYSIS: It is a widely used and relatively simple tool for deciding.
The quality of the decision depends on the depth of analysis of benefits and costs connected
with the idea.
3. DECISION TREES: It is a decision support tool that uses a graph or model of decisions
and their possible consequences, including chance event outcomes, resource costs, and
utility. It is often appropriate for complex problems solving.
4. KANO MODEL ANALYSIS: It is the analysis of customers’ preferences. Can be used in
identifying customer needs, determining functional requirements, concept development and
analysing competitive products. It is not useful for general idea selection.

© FAIRUZM@UTHM.EDU.MY | 2018 11
Concept Development: The difference between screening a new idea and
developing it into a concept is vital. Only after creating alternative concepts for
the idea enable to evaluate its attractiveness to customers. Idea concepts should be
as precise as possible to provide meaning and be properly tested. Creating vague
or general concepts won’t allow to test the validity of particular idea correctly.
Concept Testing: Once concepts have been developed, test them by presenting it
to a select group of consumers. Does the concept have a strong enough appeal?
Don’t be afraid to throw out any concepts which fail to grasp consumers’ attention
and provide value.

© FAIRUZM@UTHM.EDU.MY | 2018 12
CONT…
Imagine a car manufacturer that has developed an all-electric car. The idea has passed the idea
screening and must now be developed into a concept. The marketer’s task is to develop this
new product into alternative product concepts. Then, the company can find out how attractive
each concept is to customers and choose the best one. Possible product concepts for this
electric car could be:
Concept 1: an affordably priced mid-size car designed as a second family car to be used
around town for visiting friends and doing shopping.
Concept 2: a mid-priced sporty compact car appealing to young singles and couples.
Concept 3: a high-end midsize utility vehicle appealing to those who like the space SUVs
provide but also want an economical car.
These concepts need to be quite precise in order to be meaningful. In the next sub-stage, each
concept is tested.
© FAIRUZM@UTHM.EDU.MY | 2018 13
https://www.kickstarter.com/projects/2107726947/hidden-radio-and-bluetooth-speaker/comments
© FAIRUZM@UTHM.EDU.MY | 2018 14
After completing the concept development and testing stage, it’s time to design a
marketing strategy and analyze product’s attractiveness from a business perspective.
Marketing Strategy: Layout how the product can penetrate to the market and reach the
target audience. Define your value proposition, outline your planned selling price, and
include marketing budget for the business analysis.
Business Analysis: Performing an in-depth business analysis will help to decide whether
the new product idea is worth the financial investment and resources you’ll need to
dedicate to it. During this analysis, outline needed are total sales forecast, estimated costs,
profit projections, and define an overall objective. Sometimes the business goal may be to
penetrate the market, not necessarily achieve a positive ROI.
The bottom line to answer here is: will the new product be financially attractive or meet
the business goal?
© FAIRUZM@UTHM.EDU.MY | 2018 15
VALUE PROPOSITION

© FAIRUZM@UTHM.EDU.MY | 2018 16
It is time for the product to kick-start the product development cycle, the outcome
being a finished, marketable product.
The company will first find out whether it is technically feasible to produce the
product or not. Based upon the functionality of the product and prototype design,
few units will be manufactured and feedback is also collected from the potential
users. 
The firm will take all the necessary steps to produce and distribute the new product
like brand name, packaging, labelling, patenting, and promotion. 
Designers, engineers, and developers will need to work together to create the
finished product, which can take anywhere from days to years, depending on the
product and the resources available.
© FAIRUZM@UTHM.EDU.MY | 2018 17
PLC (PRODUCT LIFE CYCLE)
Product life cycle: The course of a product’s sales and profits in its lifetime. It
involves five distinct stages:
1. Introduction
2. Growth
3. Maturity
4. Decline

© FAIRUZM@UTHM.EDU.MY | 2018 18
PLC DETAILS MATURITY

GROWTH DECLINE

INTRODUCTION

© FAIRUZM@UTHM.EDU.MY | 2018 19
Once the product development is completed, the product is then dressed up with a
brand identity and released in a selected market segment as a pilot for testing.
Alpha testing is when your product is delivered to test engineers who evaluate its
performance in-case of any issues which need to be addressed.
Beta testing is when real groups of consumers receive your product to give their
feedback. To get the most out of beta testing, be open to every single comment, and
try not to get emotionally attached.

There it comes New Product Introduction (NPI). NPI takes over where NPD leaves
off.

© FAIRUZM@UTHM.EDU.MY | 2018 20
CONT…
This step involves the company to test both the final product and its entire marketing
and branding strategy, including
1. Positioning strategy
2. Pricing strategy
3. Communication strategy
4. Promotion strategy
5. Distribution strategy

© FAIRUZM@UTHM.EDU.MY | 2018 21
Commercialisation means introducing a new product into the market. At this point, the highest costs
are incurred; the company may need to build or rent a manufacturing facility. Large amounts may be
spent on advertising, sales promotion and other marketing efforts in the first year.
Some factors should be considered before the product is commercialized:
1. Introduction timing. For instance, if the economy is down, pandemic etc it might be wise to
wait until the following year to launch the product.
2. Introduction place. Should it be launched in a single location, a region, the national market, or
the international market.
3. Deciding the scale of production.
4. Advertising and sales promotion activities.
5. Setting up of distribution network.

© FAIRUZM@UTHM.EDU.MY | 2018 22
POSITIONING STRATEGY
Describe your business
creatively

© FAIRUZM@UTHM.EDU.MY | 2018 23
BRANDING STRATEGY

© FAIRUZM@UTHM.EDU.MY | 2018 24
PROMOTION STRATEGY

© FAIRUZM@UTHM.EDU.MY | 2018 25
COMMUNICATION STRATEGY

© FAIRUZM@UTHM.EDU.MY | 2018 26
DISCUSSION QUESTION
Why do products fail?
See if you can identify the
fatal flaw in the brands
below and at right.

© FAIRUZM@UTHM.EDU.MY | 2018 27
NEW-PRODUCT FAILURES
Why do new products fail ?
Overestimation of market size.
Product design problems.
Incorrectly positioned, priced, or
advertised.
Target customer mismatched
Excessive development costs.
Competitive reaction.

© FAIRUZM@UTHM.EDU.MY | 2018 28
© FAIRUZM@UTHM.EDU.MY | 2018 29
ASSIGNMENT
1. Explain how companies and/or product find and develop new-product
ideas.
2. List and define the steps in the new-product development process and
the major considerations in managing this process (both the success and
the failed one).
3. Discuss two additional product and/or services issues (in related
segmentation ; eg: phone apps and propose and discuss a solutions.

© FAIRUZM@UTHM.EDU.MY | 2018 30
CUSTOMER REQUIREMENTS
ANALYSIS

The engineering design process

showing problem definition as the
start of the conceptual design
process.

© FAIRUZM@UTHM.EDU.MY | 2018 31
QFD DEFINITION
 Yoji Akao’s definition of QFD is:
 “QFD is a method for developing a design quality
aimed at satisfying the consumer and then
translating the consumer’s demands into design
targets and major Quality Assurance (QA) points
to be used throughout the production phase.”
CONT…
This topic emphasizes the customer satisfaction aspect of problem definition, an
approach not always taken in engineering design.
Total Quality Management (TQM) emphasizes customer satisfaction. The TQM tool
of Quality Function Deployment (QFD) will be introduced.
QFD is a process devised to identify the voice of the customer and channel it
through the entire product development process.
The most popular step of QFD, is producing the House of Quality (HOQ). is
presented here in detail. The chapter ends by proposing an outline of the Product
Design Specification (PDS).

© FAIRUZM@UTHM.EDU.MY | 2018 33
HOUSE OF QUALITY

Every product developed aims to fill a specific customer need. Without a clear
understanding of the customer’s pain points, the development process can become
bloated, misguided, or simply doomed from the start. 
Quality function deployment (QFD) is a methodology created in response to this
problem: It’s focused on providing a clear framework for addressing customer needs,
beginning with a matrix called the House of Quality.

© FAIRUZM@UTHM.EDU.MY | 2018 34
PHASES OF QFD
NOTES:
 “Design Attributes” are also called “Functional Requirements”
 “Component Attributes” are also called “Part Characteristics”
 “Process Operations” are also called “Manufacturing Processes” and
 The “Quality Control Plan” refers to “Key Process Variables.
QFD – HOUSE OF QUALITY
 _
+ +
HOUSE OF QUALITY
_ – QFD TEMPLATE
_ _ + +
+ _
+

Technical aspect 10
Technical aspect 5
Technical aspect 6
Technical aspect 4
Technical aspect 3

Technical aspect 7
Technical aspect 8
Technical aspect 9
Requirements
Technical
Targets

Material
Design
Customer Correlations:
Priority + Strong Positive
O ↑ ↓ ↑ ↑ O ↓ ↑ ↓ O
Safety 5 • 1.1 + + Positive
_
Customer Requirements

Strong Negative

Competitive Evaluation
Customer Assessment/
Durability 9 ●● • +
_
User Friendly 4 ● - Negative
Requirement 4 7 ● +
4 10 1 •

- + +• - - - + + + -
Relationships:
●● Strongest= 10
● Strong= 7
•
• Fair= 4

Importance Rating Weak= 1

Σ(Priority X Relationship)

Technical Assessment
STEPS TO BUILD HOUSE
OF QUALITY
1. Identify the Customer Requirements (WHATs)
2. Identify the Technical Requirements (HOWs)
3. Develop a Relationship Matrix Between WHATs & HOWs
4. Develop an Interrelationship (Correlation) Matrix Between HOWs
5. Competitive Assessments
 Customer Competitive Assessments
 Technical Competitive Assessments
6. Develop Prioritized Customer Requirements
 Importance to Customer
 Target Value
 Scale–Up Factor
 Sale Point
 Absolute Weight
7. Develop Prioritized Technical Descriptors
 Degree of Difficulty
 Target Value
 Absolute Weight
 Relative Weight
HOUSE OF QUALITY: EXAMPLE

HANDLEBAR STEMS FOR MOUNTAIN BIKES

© FAIRUZM@UTHM.EDU.MY | 2018 40
STEP OF HOQ
1. Identify the Customer Requirements (WHATs)

Refinement of Customer Requirements

CONT…
2. Identify the Technical Requirements (HOWs)

Refinement of Technical Descriptors

CONT…
3. Develop a Relationship Matrix
Between WHATs & HOWs
 CONT x = Design Trade-offs

…
4. Develop an Interrelationship
(Correlation) Matrix Between HOWs
CONT…
5. a) Competitive Assessments
(Customer Competitive Assessments):
CONT…
5. b) Competitive Assessments
(Technical Competitive Assessments):
 CONT…
6. Develop Prioritized Customer Requirements
 Importance to Customer
 Target Value
 Scale–Up Factor
 Sale Point
 Absolute Weight

Absolute Weight = (Importance to

  Customer X Scale-Up Factor X Sales
Point)
(8x1.3x1.5) = 15.6

© FAIRUZM@UTHM.EDU.MY | 2018 47
CONT….
7. Develop Technical Descriptors
 Degree of Difficulty
 Target Value
 Absolute Weight
 Relative Weight

Absolute Weight = (9 X 8 + 1 X 5 + 9
X
5+9X2+9X7+3X5+3X3=
227)

Relative Weight = (3 X 16 + 9 X 8 + 9
X 5 + 3 X 2 + 0 X 18 + 3 X 5 + 9 X
3=
213)
COMPLETE HOQ

© FAIRUZM@UTHM.EDU.MY | 2018 49
© FAIRUZM@UTHM.EDU.MY | 2018 54