Paper -9 Operations Management & Strategic Management (OMSM)

UNIT -3 – PRODUCT DESIGN

 Product Design Objectives
Product design is the process of creating a new
product to be sold by a business to its
customers.
It is the efficient and effective generation and
development of ideas through a process that
leads to new products.
The design process follows a guideline involving
three main sections
1. Analysis
2. Concept
3. Synthesis
Product design and development:-

 The design department does systematic

investigation of a particular data received from
marketing. REASONS FOR PRODUCT DESIGN
Efforts are taken to discover new knowledge or Be competitive
to develop new processes or products.
Increase business growth & profits
A product is the end result that comes from
ideas and processes of design evolution. Avoid downsizing with development of new
products
Product development may come through
inventions- products developed from original Improve product quality, reduce labor and
thoughts and ideas or through innovations. material cost (if it’s a re-design)
Development is the process of translating the To open a new business
basic findings of research into practical
applications.
Product design and development:-

The product is designed for market and the Form design appears packaging is very
market is known better by marketing people. important to sell anything to the customers
The product design deals with form and Form design adds nothing to a product
function. performance.
Form design deals with the product shape
and appearance while functional design deals
with how it works.
The importance of functional design is that
the product has to work otherwise it will not
sell.
Product development methodology:-

Product development is complex and lengthy process.

It demands good engineering talent with the versatile manufacturing of prototype, testing
the pilot lot of product etc.

It involves activities from number of departments like marketing, production, quality
testing, designing, materials, etc.

The success of the product development activity depends much on the good team efforts.
 Stages of product development:-

 Prepare specifications along with marketing

persons. Editing design as per test report.
 Preparation of drawings and bill of materials. Preparing product cost estimation.
Make the part’s drawings manufacturable.
Producing an introductory lot for market entry.
 Make experimental and development work.
Getting market feedback and editing product as per the
 Make prototype of the product as per need.
requirements of checking.
Making tools, jigs and fixtures for the desired products
 Product testing in lab as well as in field. to be manufactured.
 Remaking and testing of the product till the Putting the product in regular production planning
quantity is satisfied. cycle.
Offering the product to market and the customer.
Stages of design and development:-

New Product design and product development 2. EVALUATION OF IDEAS:

involves the following stages: It involves screening the company’s capabilities with
respect to scientific knowledge and engineering skills in
 1. IDEA GENERATION: terms of possible new products and product
improvements.
 The beginning of a successful product is a
creative idea. It should recover the profit possibilities and cost of capital.

 Two types of techniques are used:

Gathering of information about the
unfulfilled needs of the consumer. 1) Check-list technique: desirable product characteristics
are considered on rating scale such as excellent, good, fair,
 To know about the attitudes and the poor and very poor.
qualities that a product should posses. 2) Rating chart: new product ideas are considered
 regarding demand, dependence on marketing
Once the idea emerges, it must be characteristics, relationship to present product lines and
emphasized that the new product fulfils price quality.
some consumer needs.
3. BUSINESS ANALYSIS:
4. ACTUAL DEVELOPMENT OF NEW PRODUCT:
It should consider estimates of sales, costs, profits,
forecasts of market penetration and market potential. The company decides to introduce the proposed
product as the marketing and financial results are
In conducting business analysis, the following questions promising.
must be answered:
Actual development of the new product is a crucial
1) Can the company translate the product idea into stage in the whole process.
economically viable product?
The new product will be ready and all arrangements
2) Does the company posses the infrastructure to produce
new product?
for its introduction are finalized.

3) Does company posses adequate finance to produce and

launch a new product?
4) Does the product fit in with the company’s existing
product mix and product lines?
 6. COMMERCIALISATION OR MARKET
INTRODUCTION:
5. TEST MARKETING:

This is the final stage to launch the new

It is actual small-scale marketing of the new product.
product in the selected market segments. 
Test marketing results are positive and
promising.
 
The company makes huge investment and
The purpose is to study actual response of
starts production of new product.
consumers to the product. 
The new product idea is converted into
actual product and introduced to consumers.

It is a type of risk control technique and 
This is a long journey and is called new
ensures avoidance of costly business errors. product development.
CHARACTERISTICS OF PRODUCT DESIGN:-
1. Guaranteeing performance: While designing a product, the manufacturer must guarantee
performance.
2. Miniaturization: Miniaturization means shrinkage in the size of the product and increase in its
utility.
3. Reliability: Product design is often evaluated through reliability. Products should be so
designed that they provide dependable service to consumers.
4. Simplicity: A product should be simple to operate by an average consumer. Simplicity in
operation gives convenience, quick use and safety to the user.
5. Safety in use: Life and health of consumers should not come in danger while using a product.
Articles like gas stove, toys, medicines and electrical appliances must have hundred percent
safety in use.
6. Aesthetics: Aesthetics relates to something beautiful that is pleasant to the eyes. Aesthetics
sense needs special attention in the case of containers and packaging of products.
7. Manufacturability: Product design must facilitate manufacturing at economical cost. The
dimensions and the tolerance on the drawings should be manufacturable.
9. Reparability: In consumers product, easy repair has to give way to appearance.
10. Clear drawings and specifications: Drawings should be of exact size and shape of the product, its
parts and sub-assemblies.
11. Performance of product: A product may be of utility when it satisfies consumer wants or needs.
12. Standardization: Standardization refers to determining some appropriate size, shape, quality, weight,
manufacturing process and other characteristics to produce a product of desired utility and variety.
13. Simplification: Simplification can be useful for the product to produce and for the work.
14. Specialization: Specialization is based on division of work.
15. Diversification: Diversification relates to producing different types of products by an enterprise.
16. Quality control: Right use of raw materials, skills and production facilities are required.
17. Customer specifications: Care must be taken to fulfill customer specifications.