Product
Developm
ent
• A comprehensive overview of product development
concepts and processes.
Introduction
This presentation provides a comprehensive
overview of product development, addressing
key concepts, the product life cycle, quality
function deployment (QFD), manufacturing and
service process technologies, and capacity
planning. It is designed to inform stakeholders
about the critical factors that influence
successful product development.
01
Product
Development
Overview
Definition of Product
Development
Concept of Product Development:
• Begins with a new product or service idea.
• Involves designing the product/service and the
conversion process to produce it.
• Aims to fulfill new customer wants/desires and
adjust to demand changes.
Objective: greater production efficiency and more
profit.
Sources of New Ideas: Customers, management,
marketing, R&D, production, engineering, and
competitors.
Emphasis: It's not just about the idea, but the entire
journey to bring it to life and make it profitable.
The Product Life Cycle (PLC) - An Overview
Definition: The various stages of a product from its
start to its end, or its demand pattern and stages.
Analogy: Products are like living things – conceived,
born, grown, mature, die.
Key Idea: Products don't last forever. Their life
varies, and the duration of each stage cannot be
predetermined.
02
Stages of the
Product Life Cycle
Stage I: Introduction
Characteristics:
• Sales begin, profit goes from negative to positive.
• Low demand due to lack of customer awareness.
• Heavy investment in advertisement needed to familiarize customers.
• Low sales volume, risk of product failure if not managed well.
• Very high cost, low sales, often leading to loss.
• High production and marketing costs but low production scale, resulting in
higher product price.
• Low competition (except for imitating products).
• Maximum advertisement needed to promote demand.
Operational Focus: Making the product known, establishing initial
production.
Stage II: Rapid Growth
Characteristics:
• Drastic jump in sales and profit due to product acceptability.
• Limited or no competition initially.
• Consumers start consuming, sales increase rapidly, generating profit.
• Organization can earn loyal consumers, increasing product utility.
• Production and distribution channels increase to meet higher demand.
• Entry of competitors leads to price decrease, but profit doesn't
decrease due to massive sales.
• Sales increase at an increasing rate.
Operational Focus: Keeping up with demand; efficiency is less of a
concern.
Stage III: Maturity
Characteristics:
• Sales level off, profit begins to decline.
• New competition leads to cost-cutting and
decreased unit profit margins.
• Stable market, but the whole market is
covered.
• R&D is crucial to sustain the product.
• Sales increase at a decreasing rate, profit
starts to decline.
• Only products from large organizations
often reach this stage (e.g., Wai Wai,
Coca-Cola).
Operational Focus: Stress efficiency;
Stage IV: Decline
Characteristics:
• Existing product becomes obsolete; demand disappears or a
better/less expensive product emerges.
• Total sales start to decrease.
• Minimum profit, possibly even losses.
• Product may be discontinued.
• Only loyal consumers continue to purchase (e.g., RARA Noodles,
Yak Cigarette).
Operational Focus: Phasing out old products, introducing new ones.
Strategic decisions on when to exit the market.
03
Product
Development
Process - The
Journey
The Journey
Core Idea: A specialized activity originating from customer needs/desires.
Steps:
1. Identification: Evaluate customer needs, demonstrate product fulfills them.
2. Feasibility Study (Advance Product Planning): Market research, alternative
concepts, operational requirements, economic analysis, sales projection.
3. Advanced Design: Technical viability, identifying design tradeoffs.
4. Detailed Engineering Design: Defining product details (subsystems, materials,
sizes, shapes).
5. Production Process Design & Development: Planning for materials,
production, warehousing, distribution, control systems, HR.
6. Product Evaluation & Improvement: Continuous reevaluation using field data,
breakthroughs, research.
7. Product Use & Support: Educating users, warranty/repair service, feedback
systems for quality improvement.
8. Emphasis: This is an iterative and interconnected process, not always linear.
Quality Function
Deployment (QFD) - Voice
of the Customer
Quality Definition: Meeting customer needs and
providing superior value.
QFD Purpose: Structured approach to define
customer needs and translate them into specific
product plans.
"Voice of the Customer": Stated and unstated
customer needs/requirements.
How it's Captured: Direct discussion, surveys,
focus groups, specifications, observation, warranty
data.
"House of Quality": A product planning matrix used
to translate "what's" (customer needs) into "how's"
(technical characteristics).
Quality Function
Deployment (QFD) - Voice
of the Customer
Value of QFD: Communication and decision-making tool.
Involves cross-functional teams (Marketing, Design, QA,
Manufacturing, etc.).
Benefits: Helps understand requirements, internal
capabilities/constraints, maintains focus on true needs,
reduces misinterpretations. Effective communication and
quality planning tool
QFD Methodology Flow (The Four Phases)
QFD Methodology Flow (The Four
Phases)
Phases:
Product Planning (House of Quality): Identify/prioritize customer
needs, define technical characteristics, establish relationships,
competitive analysis, set target values .
Product Design: Translate product requirements/technical
characteristics into critical subsystem/assembly/part characteristics.
Process Design: Evaluate manufacturing process approaches, identify
important processes and tooling, emphasize Engineering-Manufacturing
communication .
Process/Quality Control: Detailed planning for process control, quality
control, set-up, equipment maintenance, testing.
Overall Impact: More time spent upfront leads to less time downstream,
consensus decisions, better coordination, reduced time and cost.
QFD Example
Phase 1: Product Planning
"What's" (Customer Needs): These are the customer requirements, often gathered from
surveys and focus groups in Nepal.
• Authentic Nepali flavor Crispy texture Not too oily
• Good value for money Attractive packaging
"How's" (Technical Characteristics): These are the measurable, designable features the
company can control to meet the "what's."
• Specific spice blend ratio (e.g., % cumin, % turmeric, % chili)
• Potato slice thickness (e.g., 1.5mm)
• Frying temperature and time (e.g., 170°C for 3 minutes)
• Oil content (e.g., <25% by weight)
• Price per packet (e.g., NPR 30 for 50g)
• Packaging material and printing quality
QFD Example
Competitive Analysis: Comparing Crispy Bites' new chip with existing chips on
the market (e.g., Wai Wai Bhujiya, Lays Nepal flavors) for each "what."
1. Authentic Nepali flavor: Crispy Bites aims to be better than competitors.
2. Crispy texture: Aims to be equal to the best in class.
3. Not too oily: Aims to be better than typical local chips.
Target Values: Specific, measurable goals for each "how."
• Spice blend ratio: Achieve a taste test score of 8/10 for "Authenticity."
• Potato slice thickness: Maintain 1.5mm +/- 0.1mm.
• Oil content: Target 22% maximum.
• Price per packet: NPR 30 for 50g.
This entire matrix helps the team at Crispy Bites define and prioritize what they
need to achieve for their new chip.
QFD Example
Phase 2: Product Design
Now, the "how's" from the House of Quality are translated into the specific parts and sub-assemblies of the chip.
Translate technical characteristics into part characteristics:
From "Spice blend ratio" and "Oil content":
Critical Part/Subsystem: Flavoring powder composition (e.g., specific type of dehydrated herbs from local
farms, finely ground Nepali spices), type of frying oil (e.g., refined palm oil, sunflower oil for desired oil content).
Target Values: Flavoring powder particle size (e.g., <100 microns for even coating); oil viscosity (e.g., specific
grade for optimal frying).
From "Potato slice thickness" and "Frying temperature/time":
Critical Part/Subsystem: Potato variety (e.g., high-solids potato suitable for chipping), frying vessel design (e.g.,
continuous fryer for consistent heat).
Target Values: Potato sugar content (e.g., <0.25% to prevent burning); fryer belt speed (e.g., 2 meters/minute).
From "Packaging material and printing quality":
Critical Part/Subsystem: Laminate film structure (e.g., multi-layer film with oxygen barrier), printing ink type
(e.g., food-grade inks).
Target Values: Oxygen transmission rate (e.g., <5 cc/m²/day); print registration accuracy (e.g., +/- 0.5mm).
QFD Example
Phase 3: Process Design
This phase evaluates how the parts and subsystems will be manufactured.
Evaluate manufacturing process approaches:
• For "Potato slicing": Batch slicing vs. continuous high-speed slicer.
• For "Frying": Batch fryers vs. continuous industrial fryers.
• For "Seasoning application": Tumbler application vs. spray drying.
Identify important processes and tooling:
• Emphasis: Engineers and manufacturing specialists at Crispy Bites
would communicate closely to ensure the chosen processes can
consistently produce chips meeting the design specifications, like the
desired oil content and uniform seasoning.
QFD Example
Phase 4: Process/Quality Control
This final phase focuses on maintaining quality during production.
Detailed planning for process control and quality control:
• Control Methods/Parameters for Frying: Regularly checking frying oil temperature with sensors.
Monitoring oil quality (e.g., Total Polar Materials) to ensure "not too oily" target is met.
• Control Methods/Parameters for Seasoning: Using automated weigh scales to ensure correct
seasoning amount per batch or continuous flow. Regularly checking seasoning application
visually and through taste tests.
• Set-up & Equipment Maintenance: Daily cleaning of slicers and fryers. Scheduled maintenance
for packaging machines to prevent breakdowns and ensure consistent bag sealing.
• Testing: Taking samples from the production line every hour for taste testing, oil content
analysis, and crispness measurement (e.g., using a texture analyzer). Visual inspection of every
finished bag for attractive packaging quality.
By following these phases, Crispy Bites can systematically develop their new Nepali-flavored potato
chips, ensuring they meet customer expectations while maintaining quality and efficiency in
production.
04
Manufacturing
Technologies
Overview of Modern
Manufacturing Processes
Modern manufacturing processes encompass
various methods such as additive manufacturing,
CNC machining, and robotics. These processes
enhance production efficiency, reduce waste,
and allow for mass customization. By integrating
advanced technology, manufacturers can
improve product quality and speed to market,
meeting the evolving demands of consumers.
Role of Automation in Manufacturing
Automation plays a critical role in modern manufacturing by
performing repetitive tasks with precision and speed. Automated
systems reduce human error, lower labor costs, and enhance
workplace safety. They facilitate 24/7 production capabilities, enabling
manufacturers to respond quickly to market demand while
maintaining high standards of quality.
Lean Manufacturing Principles
Lean manufacturing principles focus on minimizing waste while
maximizing productivity. This methodology involves continuous
improvement through techniques such as value stream mapping, just-
in-time production, and Kaizen events. By emphasizing efficiency and
eliminating non-value-added activities, organizations can achieve
higher levels of operational excellence and customer satisfaction.
05
Service Process
Technologies
Introduction to
Service Technologies
Service technologies encompass a range of tools
and systems designed to enhance service
delivery. They include customer relationship
management (CRM) software, service
automation tools, and communication platforms.
These technologies aim to improve service
efficiency, enhance customer experiences, and
streamline operations in various service sectors.
Impact on Customer Experience
The integration of technology in service processes significantly
enhances customer experience. By utilizing technologies such as
chatbots and online self-service portals, businesses can provide timely
and personalized service. This leads to increased customer
satisfaction and loyalty as consumers can interact with services
conveniently and efficiently.
Integrating Technology in Service Delivery
Integrating technology into service delivery involves employing
various digital tools to streamline operations. This can include mobile
applications for service requests, AI-driven analytics for personalized
services, and cloud-based platforms for managing customer
interactions. Such integrations optimize service processes and allow
organizations to respond swiftly to changing customer needs.
06
Capacity
Planning
Understanding
Capacity Planning
Capacity planning is the process of determining
the production capacity needed to meet
changing demands for products or services. It
plays a vital role in balancing supply and
demand, enabling organizations to allocate
resources efficiently. Effective capacity planning
ensures that businesses can respond to market
dynamics without excessive inventory or
prolonged lead times.
Methods of Capacity Planning
Several methods can be employed in capacity planning, including trial
and error, lead capacity planning, and demand forecasting. Each
method offers advantages depending on the context and industry. By
analyzing historical data and market trends, organizations can make
informed decisions regarding capacity adjustments to meet future
demands.
Challenges in Capacity Management
Capacity management faces various challenges, including unexpected
fluctuations in demand, resource constraints, and technological
changes. These challenges can disrupt production schedules and lead
to inefficiencies. Effective communication and data analysis are key to
addressing these challenges and ensuring that capacity meets
evolving market requirements.
Conclusions
In conclusion, effective product development,
manufacturing technologies, service processes,
and capacity planning are critical components
that contribute to business success. Leveraging
these elements allows organizations to innovate,
remain competitive, and meet customer
expectations in a rapidly changing market.
Thank you!
Do you have any questions?
CREDITS: This presentation template was created by
Slidesgo, and includes icons, infographics & images by
Freepik
+00 000 000 000