PRODUCT

A product means anything that can offered to a

consumer or market that satisfy the needs or want of
end users.
Product may be tangible( physical product like
computer) and non tangible ( non physical like
Insurance).
Product can be consumer oriented or business oriented.
Designing new products and getting them to market is
the challenge facing manufacturers.
PRODUCT PLANNING
Planning means deciding the future course of
action.
Product Planning is both a fundamental and a
strategic business function that generates profit by
identifying customer wants and needs and
translating them into product and service
specifications.
Is a process which is used by a company to
identify and develop a new product .
FEATURES OF PRODUCT PLANNING
Systematic decision making
Each Product consists of a bundle of attributes
Product is capable of exchange
Company have to consider market,
competition , product performance at time of
product planning.
Main objective to satisfy customer wants

Product
Planning
Product Strategy- Product Plans
Target
Markets
Product
Pricing
Corporate Strategy- Mission, vision
Growth Plans
Financial Review- Companys Perf.
Sales channel Perf

Market Review- SWOT Analysis
Customer Needs
ROLE OF OPERATIONS MANAGEMENT AT THE
TIME OF PRODUCT PLANNING
Understand market and competitors
situation, evaluate business opportunity
and potential risk
Identify new product need
Define and manage the product mix on
the basis of companys strategic plans
Manage the product pricing and monitor
the profit level and discount factor
BENEFITS/ADVANTAGES OF PRODUCT
PLANNING
Rapid response to Market Fluctuations.
Reduction in Material Waste and Technical
Debt.
Manage Risk and increase predictability and
quality.
Full visibility into organizational resources so
that the company can make better business
decisions.
Prioritize resources and investments to drive
innovations.
PRODUCT DESIGN
Concerned with the form (Shapes and
appearances) function (Working) of a product.
Refers to the arrangement of elements or parts
that collectively form a product.
Design in its broadest sense includes, the
whole development of the product through all the
preliminary stages until actual manufacturing
begins. C.S. Deverall
SOME WELL KNOWN COMPANIES HAVING COMPETITIVE
ADVANTAGE THROUGH THEIR PRODUCTS
Organizations provide goods and services for the society.
Great products are key to the success. They provide
competitive advantage.
Honda: engine technology
Microsoft: PC software
Intel: Microprocessors
Michelin: Tires
Dell Computer: Customized hardware and software and
Dell does this very fast.

SOME WELL KNOWN COMPANIES HAVING
COMPETITIVE ADVANTAGE THROUGH THEIR
PRODUCTS
Toyotas competitive advantage is rapid response to changing
customer demand. Their shorter design time (less than 2 years
which is below the industry standard) gives them a competitive
advantage.
Regal Marine: introduces six new boats a year.
Hospitals specialize to gain competitive advantage ,
- maternity hospitals, (narl Maternity Hospital)
- children hospitals,
- EKOL (Throat, nose and ear hospital in ili, zmir)

REASONS FOR PRODUCT DESIGN
Offer new products to remain competitive in
the market.
Make business grow and increase profits.
To improve product quality.
To achieve cost reduction in labor and
materials.
OBJECTIVES OF PRODUCT DESIGN
Profit generation
To Achieve product quality
To reduce cost of the product
To ensure manufacturability
FACTORS INFLUENCING PRODUCT
DESIGN
Customers Requirements.
Convenience of operators or users.
Trade off between function and form.
Material Requirements
Work Methods and equipment.
Cost/Price ratio.
Effect on existing product.
Packaging
CHARACTERISTICS OF GOOD DESIGN
Functions or performance
Appearance or Aesthetics
Redesigning Capability
Maintainability
Availability
Standardization
Warranties & Specification
Reliability
Safety
ISSUES CONCERNING WITH PRODUCT DESIGN
A)Robust Design
B) Modular Design
C) Computer aided Design(CAD)
D)Computer Aided Manufacturing (CAM)
E) Value analysis
ROBUST DESIGN
Results in design which performs optimally
under the variable or uncertain operating
conditions.
Product is designed so that small variations
in production or assembly do not adversely
affect the product
Typically results in lower cost and higher
quality
Making the product or process insensitive to
variation.

ROBUST CTD..
This variation (sometimes called noise) can come from a variety
of factors : internal variation, external variation, and unit to
unit variation. Internal variation is due to deterioration such as
the wear of a machine, and aging of materials. External variation
is from factor relating to environmental conditions such as
temperature, humidity and dust. Unit to Unit variation is
variations between parts due to variations in material, processes
and equipment.

Examples of robust design include umbrella fabric that will not
deteriorate when exposed to varying environments (external
variation), food products that have long shelf lives (internal
variation), and replacement parts that will fit properly (unit to unit
variation).

MODULAR DESIGN
Creation of products from some combination of
basic, pre existing subsystems.
Products designed in easily segmented
components
Adds flexibility to both production and
marketing
Improved ability to satisfy customer
requirements
MODULAR CTD..
Examples of modular systems are cars,
computers, process systems, and high rise
buildings
When you need some customization and additional
features, you will need to pay a little bit more
Computers use modularity to overcome changing
customer demands and to make the manufacturing
process more adaptive to change
COMPUTER-AIDED DESIGN (CAD)
Use of computer systems to assist in the creation, modification, analysis,
or optimization of a design.


CAD software is used to increase the productivity of the designer, improve the
quality of design, improve communications through documentation, and to create
a database for manufacturing
Computer-aided design is used in many fields. Its use in designing
electronic systems is known as Electronic Design Automation or EDA.
In mechanical design it is known as Mechanical Design Automation
(MDA) or computer-aided drafting (CAD), which includes the process
of creating a technical drawing with the use of computer software.

Using computers to design
products and prepare
engineering documentation
Shorter development cycles,
improved accuracy, lower
cost
Supports mass
customization
3-D Object Modeling
Small prototype
development

COMPUTER AIDED DESIGN (CAD)
COMPUTER AIDED MANUFACTURING
Computer-aided manufacturing (CAM) is an application
technology that uses computer software and machinery to facilitate
and automate manufacturing processes. CAM is the successor of
computer-aided engineering (CAE) and is often used in tandem
with computer-aided design (CAD).

CAM may present inadequacies in the following areas:
Manufacturing process and usage complexity
Product Lifecycle Management (PLM) and modern enterprise
integration
Machine process automation

1. Better Product quality
2. Shorter design time
3. Less Production cost
4. Database availability
BENEFITS OF CAD/CAM
VIRTUAL REALITY TECHNOLOGY
Computer technology used to develop an
interactive, 3-D model of a product from the
basic CAD data
Allows people to see the finished design before
a physical model is built
Very effective in large-scale designs such as
plant layout
ETHICS AND ENVIRONMENTALLY FRIENDLY
DESIGNS
It is possible to enhance productivity, drive down
costs, and preserve resources.
Effective at any stage of the product life cycle
Design
Production
Destruction
GUIDELINES FOR ENVIRONMENTALLY FRIENDLY
DESIGNS
1. Make products recyclable
2. Use recycled materials
3. Use less harmful ingredients
(Using soy-based inks)
4. Use lighter components
Mercedes is using banana plant fiber for car exteriors
Biodegradable and lightweight
5. Use less energy
6. Use less material
OM STRATEGIES NEED TO BE SENSITIVE TO LIMITED
ENVIROMENTAL RESOURCES
Design: Nikes new Air Jordan Shoes
- very little chemical-based glue
- recycled outsole
Production: Ban Roll-On
- repackaging in smaller cartons
Destruction: BMW
- recycles most of a car including plastic
components
OPERATIONS AND THE LIFE
CYCLE
OPERATIONS AND THE
LIFE CYCLE
Any business organization will have their product life cycles.
The operation management of the organization should always
keep watching
The new trends of people's taste or requirements, the available
latest technology and competitor's new proposals
So that necessary actions can be taken in advance to decrease the
growth stage and increase the span of the maturity stage.
The type of operational decisions and selection procedures all
depends on the product of any organization plans to develop or
introduce into the market.



FEATURES OF PLC
Each product may have a different life cycle.
PLC determined revenue earned by the firm
Contributes to strategic marketing planning
PLC may help the firm to identify when a product
needs support, redesign, withdrawal etc.
Help in new product development planning

STAGES OF LIFE CYCLE
2

Growth
Decline
Time
Sales


Introduction
Maturity
Introduction Stage
Low Sales, High Cost per customer,
Negative Profit
Growth Stage
Rapidly Rising Sales, Average Cost
Per customer, Rising Profits, Build
awareness and interest in mass
market
Maturity Stage
Peak sales, Low cost per customer,
High Profits, Diversify brand and
models, Price to match best
competitors
Saturation Stage
Low profits, Average cost per
customer, Repackaging and
formatting
Decline and Withdrawal Stage
Declining sales, Low cost per
customer, Declining Profits, Phase out
weak items, Reduce to level needed to
retain hard core loyal customers