530 Chap 3 Product Desgin

8/2/2019 530 Chap 3 Product Desgin

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Chapter 3: New Product Design

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Lesson Objectives:

Define new product design and service design and explain its

importance in an organization.

Discuss the factors influencing the need for new product

design.

Elaborate the four phases of a product life cycle, and its

development stages in new product development.

Differentiate the strategies for new product design and new

service design.


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Look around you:

What is the latest model for PROTON,

PERODUA and TOYOTA?

What are the differences between:

a.MYVI and MYVI Se?

b.COLGATE and COLGATE ProRelief?

c.FAB and FAB SERBA BARU?

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Importance of Product Design

Factors on Needs for Product DesignObjectives of Product Design

Categories of New Products

Categories of New Service Creations

Product Development Stages


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Importance of Product Design

Need to carry out product design strategies on

continuous basis due to:

- market changes and market opportunities.

To develop new ideas and new products;

new processes for business survival;

sustain competitive edge and advantage and

retain market share.


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Factors influencing new product design

Economic changes- supply & demand needs

- purchasing power

Sociological changes- quality of life

- standard of living- preferences

Demographic changes

- rural & urban

- coastal & inland

Technological changes- fast processing speed- memory size- physical size

Political changes

- change of national policies- agricultural based

- development based

Legal changes

- JAKIM Halal logo

- SIRIM certification- Ministries regulations

New Product

Design

Market changes-market practices

- suppliers & distributors- market competition

Product life cycle changes


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Factors that needs for new product design

Economic changes supply and demand for new products change in customers needs and wants; economical cars, compact products purchasing power of market

Sociological changes modern lifestyle, standard of living, organic/fast foods/frozen foods needs are necessities in daily lives, commercial, businesses

Demographic changes rural and urban needs coastal and inland needs male and female needs

Technological changes modern technology : automation, robotics, innovations, business ICT faster speed, shorter time, increase memory, ICT advantage

Political changes political influences, HADHARI, military strategies, development policies

Legal changes Government rulings, local Town Council requirements, trade regulations changes

Other changes (market practice, product/ market standards, supplies anddistributors, competition in market)

Product life cycle changes


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Product Life Cycle

sales, volume

introduction growth mature decline

stage stage stage stage

time

I II III IV

aggressive competition sales stagnant sales droppromotion split market awareness new product design

advertise sales growth market research


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Objectives of Product Design

to create new products/services

to find new ways and uses of existing products

to improve or develop new processes to reducemanufacturing costs and capital

How? do a market research do R and D on products through products expo, conferences, trade fairs, competitions generate ideas from the organization, suppliers and

distributors


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Categories of New Products

Incremental or Derivative Products/Services hybrids or enhancement of existing products or services minimal changes in design or processes, need few resources to develop new

features Examples: new packaging, new looks, visual appearances

Next Generation or Platform Products represent a new system or solutions for customers for continued product revenue growth Examples: Pentium 2 - 4; INTEL DUO; Mitsu Evo 7 Evo 9; CAMPRO Gen-2.

Breakthrough or Radical Products /Services Substantial design and product change Create new product categories as existing products will be obsolete soon Examples: Pentium 4; LRT;


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Categories of New Service Creations

Window Dressings not significant different from other services

Examples: ordinary food stall, ordinary bank, ordinary retail outlet

Breadth of Offerings

significant design change in content and services Examples: Executive Coach with facilities, hotels with luxurious buffet sets and

dcor, banking services with package offers: loans, repayment schemes, credit

facilities, Islamic trust funds schemes

Examples: TV stations and programs

Revolutionary services new in content and delivery services

Examples: E- commerce, E business; one stop solution, AIR ASIA package

Examples: Reality TV shows


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Services Design Approach

Customer contact depends on high degree of low degree contact

the nature of services rendered

The Moment of Truth

Extent of contact time and duration customer is involved in the service

Creation of service work processes involved in providing the services

Simple documentation for services

Types of services Service businesses : facilities based services, on site services

Customer support services : provide product information and services

Internal services : services for internal organizational units


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NewProduct Development Stages

Ideas generation from R& D, staff, customers; brainstorming

sessions, QFD technique

Determine market requirements: needs and wants, expectations,

aspirations

Concepts development on product/services Design for Manufacturability (DFM) and Value Engineering

Establish product specifications

Establish functional specifications

Documentations: assembly diagrams, process charts, engineering

drawings

Design reviews: pre-pro, pilot run, IMP

Test market: samples, prototypes

Introduction of product into the market


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DFM and Value Engineering

To reduce complexity of the product

To standardize components: common parts

To cost down material costs

Improve functional aspects of the product

To improve production/ assembly processes

To improve safety processes, job design factors and

environmentally friendly

To improve maintenance and serviceability of theproduct


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Case: ITALDESIGN to Widen PROTON Sedan Market

Page: 56

Read and Reflect:

How PROTON strategize on their product design?

How PERODUA strategize on their product design?

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Importance of New Product Design

Factors Influencing New Product Design

Product Life Cycle

Strategies of NPD or NSD

Lesson Outcomes

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530 Chap 3 Product Desgin

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