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OPEN ELECTIVE: PRODUCT DEVELOPMENT AND DESIGN
6. Product Design: Product design is the process of creating the form, function, and
overall user experience of a product. It involves considering factors like aesthetics,
usability, ergonomics, materials, and manufacturing processes.
To put these concepts together, imagine you are developing a new smartphone:
• Product Development: Involves the entire process from conceiving the idea of a new
smartphone to actually launching it in the market. This encompasses designing the
phone's features, specifications, and functionalities.
• Product Design: Specifically refers to the visual appearance, user interface, and
physical ergonomics of the smartphone. It includes decisions about the shape, size,
colors, buttons, screen layout, and overall user experience.
• Brand: The brand of the smartphone company encompasses its reputation, values, and
the emotions it evokes in consumers. A strong brand can influence people's decisions
to buy the smartphone, based on their perceptions of quality, innovation, and reliability.
• Design Development: This phase involves refining the initial design concepts of the
smartphone, incorporating feedback from usability testing and engineering
considerations. It ensures that the product design is both visually appealing and
functionally efficient.
UNIT I: INTRODUCTION TO PRODUCT DEVELOPMENT
UNIT II: PRODUCT SPECIFICATIONS
UNIT III: PRODUCT CONCEPTS
UNIT IV: PRODUCT ARCHITECTURE
UNIT V: PROTOTYPING
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OPEN ELECTIVE: PRODUCT DEVELOPMENT AND DESIGN
forces and to technological developments, as well as how quickly the firm receives the
economic returns from the team’s efforts.
• Development cost: How much did the firm have to spend to develop the product?
Development cost is usually a significant fraction of the investment required to achieve
the profits.
• Development capability: Are the team and the firm better able to develop future
products as a result of their experience with a product development project?
Development capability is an asset the firm can use to develop products more
effectively and economically in the future.
WHO DESIGNS AND DEVELOPS PRODUCTS?
Product development is an interdisciplinary activity requiring contributions from
nearly all the functions of a firm; however, three functions are almost always central to a
product development project:
→ Marketing: The marketing function mediates the interactions between the firm and its
customers. Marketing often facilitates the identification of product opportunities, the
definition of market segments, and the identification of customer needs. Marketing
also typically arranges for communication between the firm and its customers, sets tar-
get prices, and oversees the launch and promotion of the product.
→ Design: The design function plays the lead role in defining the physical form of the
product to best meet customer needs. In this context, the design function includes
engineering design (mechanical, electrical, software, etc.) and industrial design
(aesthetics, ergonomics, user interfaces).
→ Manufacturing: The manufacturing function is primarily responsible for designing,
operating, and/or coordinating the production system in order to produce the product.
Broadly defined, the manufacturing function also often includes purchasing,
distribution, and installation. This collection of activities is sometimes called the supply
chain.
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(v) Economics: Developing, producing, and marketing a new product requires a large
investment. To earn a reasonable return on this investment, the resulting product must
be both appealing to customers and relatively inexpensive to produce
(vi) Creation: The product development process begins with an idea and ends with the
production of a physical artifact. When viewed both in its entirety and at the level of
individual activities, the product development process is intensely creative.
(vii) Satisfaction of societal and individual needs: All products are aimed at satisfying
needs of some kind. Individuals interested in developing new products can almost
always find institutional settings in which they can develop products satisfying what
they consider to be important needs
(viii) Team diversity: Successful development requires many different skills and talents. As
a result, development teams involve people with a wide range of different training,
experience, perspectives, and personalities.
(ix) Team spirit: Product development teams are often highly motivated, cooperative
groups.
2) Concept development:
After selection of an idea, the company has to transform it into a concept. The marketer
then creates alternative product concepts from the new concern. The company then
compares the creates alternative product concepts from the new concept. The company then
compares the different alternatives. They observe whether these alternatives will meet the
customers needs.
3) Business analysis:
Here the officials analyse the sales, profit and costs associated with the product. By this,
they are able to understand whether the product is commercially feasible. Moreover, it has to meet
the users demands. For this, they conduct market surveys. Sales history of similar products is also
analyzed.
Additionally, it is important to identify possible risks. This helps to reduce
problems and developmental errors in the future.
4) Product development:
If the product idea passes through all the previous stages, it is converted into a.
tangible product. This helps to check how well it might work in the market. Thus, the R&D
team might launch a prototype model of the product concept.
Additionally, the marketing team develops a strategy for distributing the product. The
finance team will calculate the finances associated with it. The advertising team will
develop a strategy for promoting the product.
5) Test marketing:
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6) Commercialization:
After test marketing, the company officials get a basic understanding of how the
product might work in real life. So, before the commercialization of the product, all the
major. After test marketing, the company officials get a basic understanding of how the
product might work in real life. So, before the commercialization of the product, all the
major decisions are taken. This will include the identification of the target markets. The launch
strategies are also prepared. After that, all the departments collaborate and work on the
product.
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After test marketing, the company officials get a basic understanding of how the product
might work in real life. So, before the commercialization of the product, all the
major decisions are taken. This will include the identification of the target markets. The launch
strategies are also prepared. After that, all the departments collaborate and work on
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2. Feasibility study:
Here, the officials will carry out the following feasibility studies:
• Market
• Economic
• Technical
• Strategic
• Risk analysis of the product
The performance specifications are then determined for the particular product concept. If they
pass the feasibility study, they might get approved for development.
3. Preliminary design:
Preliminary design is the stage in which general project location and design concepts
are determined. It includes all that is necessary to conduct a NEPA alternatives analysis
and review process properly, but good preliminary design goes beyond that.
• Architecture design
• Detailed product design: mechanical, electrical, electronic or software design.
• Design calculations: simulation studies
• Product integration
• Prototyping and testing
• Product verification and validation
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1. Concept development:
• In the concept development phase, the needs of the target market are
identified, alternative product concepts are generated and evaluated, and one or
more concepts are selected for further development and testing.
• A concept is a description of the form, function, and features of a product and
is usually accompanied by a set of specifications, an analysis of competitive
products, and an economic justification of the project.
2. System-level design:
• The system-level design phase includes the definition of the product
architecture, decomposition of the product into subsystems and components,
preliminary design of key components, and allocation of detail design
responsibility to both internal and external resources.
• Initial plans for the production system and final assembly are usually defined
during this phase as well.
• The output of this phase usually includes a geometric layout of the product, a
functional specification of each of the product’s subsystems, and a preliminary
process flow diagram for the final assembly process.
3. Detail design:
• The detail design phase includes the complete specification of the geometry,
materials, and tolerances of all of the unique parts in the product and the
identification of all of the standard parts to be purchased from suppliers.
• A process plan is established and tooling is designed for each part to be
fabricated within the production system.
• The output of this phase is the control documentation for the product—the
drawings or computer files describing the geometry of each part and its
production tooling, the specifications of the purchased parts, and the process
plans for the fabrication and assembly of the product.
• Three critical issues that are best considered throughout the product
development process, but are finalized in the detail design phase, are materials
selection, production cost, and robust performance.
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• Later (beta) prototypes are usually built with parts supplied by the intended
production processes but may not be assembled using the intended final
assembly process.
• Beta prototypes are extensively evaluated internally and are also typically tested
by customers in their own use environment.
• The goal for the beta prototypes is usually to answer questions about
performance and reliability to identify necessary engineering changes for the
final product.
5. Production ramp-up:
• In the production ramp-up phase, the product is made using the intended production
system.
• The purpose of the ramp-up is to train the workforce and to work out any remaining
problems in the production processes.
• Products produced during production ramp-up are sometimes supplied to preferred
customers and are carefully evaluated to identify any remaining flaws.
• The transition from production ramp-up to ongoing production is usually gradual.
• At some point in this transition, the product is launched and becomes available for
widespread distribution.
• A postlaunch project review may occur shortly after the launch.
• This review includes an assessment of the project from both commercial and technical
perspectives and is intended to identify ways to improve the development process for
future projects.
PRODUCT DEVELOPMENT ORGANIZATIONS
In addition to crafting an effective development process, successful firms must
organize their product development staff to implement the process in an effective manner. In
this section, we describe several types of organizations used for product development and
offer guidelines for choosing among these options.
Any particular individual may be linked in several different ways to other individuals. For
example, an engineer may be linked by a reporting relationship to another engineer in a
different building, while being linked by physical layout to a marketing person sitting in the
next office. The strongest organizational links are typically those involving performance
evaluation, budgets, and other resource allocations.
❖ Physical location
❖ Clear communication
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Product: Smartphone
Components:
1. Processor: $50
2. Display: $30
3. Battery: $15
4. Camera: $20
5. Memory (RAM/ROM): $10
6. Other Components and Assembly: $25
Variable Costs (Costs that change with production quantity):
1. Labor: $5 per unit
2. Packaging: $2 per unit
Fixed Costs (Costs that remain constant regardless of production quantity):
1. Research & Development: $10 million (amortized over expected units)
2. Facility Rent and Utilities: $100,000 per month
3. Machinery Maintenance: $20,000 per month
Marketing & Distribution Costs:
1. Marketing Campaigns: $5 million
2. Distribution and Shipping: $3 per unit
Sales Price: $300 per unit
Now, let's calculate the total cost and profit for producing and selling smartphones:
1. Total Variable Cost per Unit = Labor + Packaging = $5 + $2 = $7
2. Total Fixed Cost per Unit = (R&D / Expected Units) + (Rent & Utilities / Expected
Units) + (Machinery Maintenance / Expected Units) = ($10,000,000 / 1,000,000) +
($100,000 / 12 / 1,000,000) + ($20,000 / 12 / 1,000,000) ≈ $0.01 + $0.008 + $0.002 ≈
$0.02
3. Total Marketing & Distribution Cost per Unit = Marketing Campaigns +
Distribution & Shipping = $5,000,000 + $3 = $5,000,003
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4. Total Cost per Unit = Variable Cost + Fixed Cost + Marketing & Distribution Cost =
$7 + $0.02 + $5,000,003 = $5,000,010.02
Now, let's calculate the profit per unit:
Profit per Unit = Sales Price - Total Cost per Unit = $300 - $5,000,010.02 ≈ -$4,999,710.02
COST MODEL
A Cost Model is refers to a structured framework used to estimate and analyse the
various costs associated with creating and bringing a new product to market. It involves
assessing both direct and indirect costs incurred throughout the entire product lifecycle, from
initial concept and design to manufacturing, distribution, and beyond. Cost models play a
crucial role in helping organizations make informed decisions about resource allocation,
pricing, and profitability.
• Direct Cost: These are costs that can be directly attributed to the production of a
specific product, such as raw materials, labor, and components.
• Indirect Costs (Overhead): These are costs that are not directly tied to a single product
but contribute to the overall manufacturing process. Examples include facility rent,
utilities, administrative salaries, and quality control.
• Variable Costs: Costs that change in relation to the quantity of products produced,
such as direct materials and labor costs.
• Fixed Costs: Costs that remain constant regardless of the quantity produced, including
expenses like rent, equipment depreciation, and administrative salaries.
• Cost drivers: Factors that influence the level of costs incurred, such as design complexity,
production volume, material selection, and manufacturing methods.
• Lifecycle Costs: Costs that extend beyond the initial manufacturing stage and include expenses
related to maintenance, support, and end-of-life disposal.
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• Design for Manufacturing (DFM) and Design for Cost (DFC): Strategies where product
designers aim to create products that are optimized for efficient and cost-effective
manufacturing processes.
• Price Estimation: Cost models help inform pricing strategies by providing insights into the
cost structure of the product.
• Scenario Analysis: Cost models enable organizations to evaluate different scenarios and trade-
offs, such as the impact of changing materials, production methods, or production volumes on
the overall cost.
needs to know each team member’s total time contribution as well as the group’s material
expenses and overhead costs.
This analysis should ultimately include everything from the utility and property costs for the
company’s building to purchase of creative rights, cost of domain names and segmented
investment in digital outreach. An effective model should show the total cost for each part of
the service package, from launching the site to maintaining it each month and conducting
marketing efforts.
REVERSE ENGINEERING
Reverse engineering is deconstructing or dismantling a product to learn how it works
and understand more about its design. This can include software, a mechanical part, a piece of
technology or architecture. Companies can also use reverse engineering to learn to reproduce
or improve the item. This means that engineers try to recreate or mimic a product without the
original blueprints, which is why they have to disassemble the finished item. While there are
many ways to reverse engineer a product, a popular method is to take apart a smaller part of a
product for examination, such as the pistons from a car engine.
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that item at a lower cost, offer alternatives that can minimize assembly or substitute a part that
will pay dividends in the long run in terms of time or shipping.
5. Creating a Reliable CAD Model for Future Reference
It is essential to have accurate design data to ensure production efficiency in computer
aided manufacturing and for future reference, especially in the case of legacy projects, where
older technologies might become outdated very quickly and need to be updated regularly. In
these situations, imagine how difficult it would be to work on updating the technology without
the documented design data.
Most reverse engineering procedures include creating a CAD file that can be examined digitally
if future issues arise, making it easy for updating legacy products with new components, power
sources, and other technologies, and in this way, it has massively enhanced engineering
productivity and product expression.
product to help them rebuild it. The team could also document any important findings from
their reverse engineering.
5. Reassemble
If the purpose of the reverse engineering is to recreate the item, the engineers may also
reassemble the product. Rebuilding tests the engineers' knowledge of the product and allows
them to make potential changes as they rebuild it. This could help them create a new, updated
or original version of the item they dismantled. One purpose of reverse engineering is to learn
about the product, and reassembling the item helps the team understand building or recreating
it.
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The scheme above consists of four phases that lead from the problem to the solution:
• Discovery: revealing and understanding the initial problem to be solved
• Definition: identifying the key challenges and pain points and defining the jobs-to-be-
done
• Exploration: finding opportunities for improvement and ideating a suitable solution
• Execution: iterative solution design, validation, and implementation.
Through this process, you will understand what motivates customers to use your product and
what their expectations are for the user experience.
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1. Idea generation
The process of developing a new product begins with the generation of ideas. It is one of the
most crucial phases of product development and entails brainstorming an idea (or ideas) that
would help you overcome an existing customer problem in a novel and creative way. It’s
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critical to have a thorough understanding of the target audience and their pain points, which
you should tackle while brainstorming ideas to help you meet customer needs.
There are two potential sources of fresh ideas:
• Internal source: The company generates new ideas internally. It includes both R&D
and staff contributions. Employees are frequently the biggest source of fresh ideas, as
they are constantly exposed to the product as well as consumer feedback. Organizations
like Toyota have created incentive programs to encourage their employees to come up
with viable ideas in this regard.
• External sources: The company seeks out new ideas from outside sources. It
includes external sources such as distributors and suppliers, as well as competitors.
Customers are the most significant external source since the new product development
process stages must be centered on delivering value to customers.
2. Idea screening
The new product development process’s second step builds on the first. You’ve amassed as
many ideas as possible and made a list of them. It’s now time to cross off any ideas that aren’t
good enough from your list.
However, there are more things to consider while screening a product idea than whether it is
“strong” or “weak.” Ideas must also be compatible with a company’s broader business plan
and direction.
The usability of these product concepts should be determined by three primary factors: return
on investment, affordability, and market potential. Other considerations include the product’s
capacity to be successfully marketed, its link to competing products, distribution, product
pricing, and production time.
A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis might prove to be
useful when shortlisting new product development concepts.
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Setting profit expectations is the purpose of this step in the new product development process.
Business analysis and marketing strategy are intertwined with developing a strategy for
reaching out to and connecting with a specific demographic and must be regarded as a critical
phase in the new product development process’s seven stages.
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This stage, also known as marketing strategy development, involves a few key elements in the
construction of a good marketing mix. The following are some of these aspects:
• Definition of the target market, as well as the value proposition offered from the
customer’s point of view
• Profit targets over time, particularly during the first year
• Pricing, distribution, and overall budget
• Sales forecasts for the long run
5. Product development
Your product is fit to become a prototype or the first edition of a product at this point in the
new product development process. This way, you’ll have a physical representation of your
concept that you can test in real life rather than just on paper. This prototype, also known as
a minimal viable product (MVP), is a simple version of your product that will help you gain a
sense of how it works and point out areas that have to be improved.
For iterative and incremental development, a minimum viable product (MVP) could be
introduced and deployed in the market with minimal features. Naturally, modifications are
based on the fundamental response from customers, which is obtained through effective
communication and collaboration.
According to Gartner, many firms believe in involving customers in the early stages of product
development. This places them in a stronger position to create a product while adhering to
ergonomic guidelines.
R&D and operational expenses create a significant increase in spending at this stage. One or
more physical copies of the product concept will be developed and tested by the R&D
department.
6. Test marketing
You’re doing market testing when you release prototypes to the target demographics and ask
for their feedback on how well the product works. It involves inquiring about what your target
audience enjoys about your proposed product and what they want to see fixed or incorporated
into it.
Running a test of your product early on can ensure its success before investing too much time
and money. A positive response indicates that there is sufficient demand for the product, which
leads to the start of the manufacturing process.
There are two types of market testing methodologies:
• Alpha testing involves test engineers analyzing a product’s performance. They keep
track of the marketing mix’s effects on the final product. If there are any issues, changes
are planned and implemented before the final thumbs up.
• Beta testing involves customers using the product and giving input to the company. It
has to do with paying close attention to the customer’s voice. If there are any problems,
they are returned to the project team for correction.
7. Commercialization
Commercialization is the ultimate stage of the new product development process, where you
put your products on the market. The business will need to establish or rent a production facility
in this phase, which will incur the biggest expenditures. In the first year, a significant amount
of money might be spent on advertising, product promotion, and other marketing operations.
Here are a few of the most important considerations:
• Calculate the global market for your product and introduce an appropriate quantity
based on that estimate
• Make the relevant advertisements and stick to a marketing strategy that works
• Ensure your marketing strategy includes digital channels
• Prepare your consumers for a new product launch
• Choose a launch date and location for your product
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• Keep a tight eye on your product and pay attention to its performance
Teardown Process
As we have already mentioned the teardown process tightly integrated with the idea of
benchmarking, comparing one’s product with the competitive product in the marketplace or
Comparing performance with the previous version of their own product. Following are the
formal steps in the Product teardown process.
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Examine the decision-making process such as means to acquire parts, contain them, ship,
distribute and market the product. Customer installation instructions and procedures should
be examined for costs, effectiveness and liability.
• Disassembly is the obvious step commonly pictured when thinking of reverse engineering.
• This step has to be coordinated with measurements and experimentation
o Take apart the assembly
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The complete data collected (pictures and dimensions of parts) should be compiled in a good
format for further analyses, including cost and performance. Fill a written form that details
the product. The sequence of assembly photos and exploded view CAD drawing.
Teardown methods
We have 3 methods of teardown process as we mentioned below.
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