MGT 345 OPERATION MANAGEMENT UITM

1. CHAPTER 2
Product Design
(MGT345)

2. CHAPTER OUTLINE:
2.1 Introduction to product design
2.2 Product Development Stages
2.3 Product Life Cycles (PLC)
2.4 The importance of research and development
in product design
2.5 Objectives of Research & Development

3. 2.1 INTRODUCTION TO PRODUCT DESIGN
 Product design involves designing a product that specifies
what materials to be used, the dimensions, appearance
and standard performance that can be produced and
marketed profitably.
 A product is designed to perform a particular function or
set of functions effectively and reliably, to be economically
manufacturable, to be profitably salable, to suit the
purposes and the attitudes of the consumer, and to be
durable, safe, and economical to operate.

4.  For instance, the design must take into consideration the
particular manufacturing facilities, available raw materials,
know how, and economic resources of the manufacturer.
 Most product have limited and even predictable life cycle.
Companies must constantly be looking for new products to
design, develop and take to market. Great products are the
key to success.
 It becomes necessary for competitive companies to be
involved in research and development (R&D) to be ahead
of competitor.

5. 2.2 PRODUCT DEVELOPMENT STAGES
 An effective product strategy links product decisions with
cash flows, market dynamics, product life cycle and the
organization capabilities.
(1) Idea Generation (2) Feasibility Study
(3) Preliminary Design &
Testing
(4) Final Design & Process
PRODUCT
DEVELOPMENT
STAGES

6. 1) IDEA GENERATION
 Start with understanding the customer and actively identifying customer
needs.
i. Internal sources:
a) Employees- including those who make products or deliver
services to customer
a) Salespeople
b) Purchasing agent
c) Marketing
d) Research- Through R&D Department
ii. External sources:
a) Customers- from the surveys, complaints, product failure & warranty
claims.
b) Competitors- can study product/service of their competitor
c) Suppliers – form feedback, suggestions

7. 2) FEASIBILITY STUDY
 Market Analysis- assesses whether there’s enough
demand for the proposed product to invest in developing it
further
 Economic Analysis- if the demand potential exist, then
there’s an economic analysis that looks at estimates of
production and development costs and compares them to
estimated sales volume
 Technical / Strategic Analysis- ‘Does the new product
require new technology?’ Is it compatible with the core
business of the firm.

8. 3) PRELIMINARY DESIGN & TESTING
 Involves building , testing the prototype , revising
design until viable design determine.
 Changes are made on it physical appearance-
color, size, shape and style
 At this stage design engineer concern with how
product will be made

9. 4) FINAL DESIGN AND PROCESS
 Consists of detailed drawings and specifications
for new product or service.
 The process plans are workable instructions for
manufacture including necessary equipment and
tooling , job description and procedures for
workers and computer programs.

10. 2.3 PRODUCT LIFE CYCLE (PLC)
Products are born. They live and
they die. Every product has their
own life cycle. The span of the life
cycles varies according to the
product and industry.

11. PRODUCTS IN VARIOUS STAGES OF LIFE CYCLE
Growth Decline
Time
Sales
Introduction
Maturity

12. 1) INTRODUCTION PHASE
- Product is still new and may not work well.
Process modification and enhancement is needed.
- Producers may still need to find the best
production techniques that would minimize the
production cost and to perfect the product itself.
- At this stage the sales volume is at low level and
growing at slow pace.

13. 2) GROWTH PHASE
- Product design begins stabilize. Sales may grow
rapidly.
- Effective forecasting of requirements is necessary.
- Production capacity may have to be increased to
accommodate the increased sales.

14. 3) MATURITY PHASE
- Sales continue to grow but at declining rate because
of many competing products in the markets.
- Competitors now established
- Innovative production at this stage may be
necessary.
- The company may have to add new
features/redesign the existing products to stay
competitive.
- The product also must be resonably priced to ensure
the profitability and market share.

15. 4) DECLINE PHASE
- To survive, companies must creates new product
to replace the dying products.
- Decline phase does not happen to all products.

16. 2.4 THE IMPORTANCE OF RESEARCH AND
DEVELOPMENT IN PRODUCT DESIGN
a) Customer demand for better products and services
b) R&D helps to improve the standard of living
c) R&D helps to improve market share and profitability
d) To respond effectively in the global market
e) R&D can improve technical capability in product design

17. 2.5 OBJECTIVES OF RESEARCH & DEVELOPMENT
a) To create new products and service
b) To find new uses of existing products
c) To develop new processes that will help reduce
capital and manufacturing costs.
c) To redesign/modify the existing products
d) To improve the quality of the product, increase
productivity and efficiency of the production line
e) To take advantages of government incentives and
for better utilization of resources
f) To improve the packaging of existing products

18. TYPES OF RESEARCH
a) Basic or Pure Research
It is conducted for the advancement of scientific
knowledge that has no specific commercial uses. It is
more on knowledge-oriented research with a goal of
developing new ideas or concepts but with no specific
product or application in mind. The result will be in the
form of information.
b) Applied research
It is conducted for the advancement of scientific
knowledge that has commercial uses. It is more on
problem oriented research that is dedicated to
discovering new concepts, ideas and materials with
specific commercial applications.

19. c) Design and Engineering Research
Involves engineering work that is systematic study of
every element of cost in a part, material/product to
ensure it fulfills its function at the lowest total cost. It
involves converting the result of applied research into
useful commercial applications.

20. FACTORS TO CONSIDER IN DESIGNING NEW PRODUCT
a) Material and processing consideration- selecting the right material.
b) Marketability of the product- concerning the marketability of the
product.
c) Durability of the product- how long the product should last through
usage.
d) Resources- includes facilities, equipment and skill of its human
resource.
e) Designs specifications and tolerance- refer to ideal characteristics of
the product. Tolerance refer to the degree of deviations that are
allowed.
f) Human and engineering factor- the products are easy to use,
ergonomically designed and product safety.