Chapter -3

Product and Process Design

 Product Selection
• Product is anything that can be offered to a
market for attention, acquisition, use or
consumption.
• Product selection is a decision process in which
the design team selects one or few concept
product for further development.
• Since most products have a limited or predictable
life cycle, companies must constantly be looking
for design, develop and take to market.
• Despite constant efforts to introduce viable
new products, many new product do not
succeed. DuPont estimates that it takes 250
ideas to yield one marketable product.
• An effective product strategy links product
decision with investment, market share, and
product life cycle and defines the breadth of
product line.
 Quality Function Deployment
Quality function deployment refers to both
determining what will satisfy the customer and
translating those customer desires into the
target design. The idea is to capture a rich
understanding of customer wants and to identify
alternative process solutions.
 Generating New Products
• Because products die, must be weed out and
replace, generate most of their revenue and
profit from new products; product selection,
definition and design take place on a
continuing basis.
• Aggressive new product development requires
that organizations build structures internally
that have open communication with
customers, innovative product development
cultures, aggressive R&D, strong leadership,
formal incentives and training.
• Before generating new products, following points
should be considered.
1) Understanding the customer
2) Economic change
3) Sociological and demographic change
4) Technological change
5) Political and legal change
6) Other change ( market, professional ethics,
distribution channel changes etc.)
 Product Development
• Product development refers to original
products, product improvements, product
modifications, and the new brands developed
from the firm’s own research and
development.
Reasons for Failure of New Product
• Overestimation of market size
• Poor design
• Incorrect positioning
• Wrong timing
• Priced too high
• Ineffective promotion
• High development costs
• Competition
Product Development Process
 Consideration While Developing Product

• Identify customer wants

• Identify how it will satisfy customer wants
• Identify possibility and difficulty for
developing product
• Identify market
• Identify competition
• Identify core competency of the product
 Product-Process Matrix
• The product process matrix merges the product
lifecycle, which encompasses all aspects of the
product development process—from ideation to a
product’s growth or decline— with the process
lifecycle, the progression towards a more cost-
effective and productive standardized structure.
• Businesses and strategic managers can use this
relationship tool to analyze whether the process
approach company is using is suitable for its life
cycle or not.
Product Process Matrix
 Product life-Cycle Management (PLM)
• PLM is an umbrella software programs that attempts to bring
together phases of product design and manufacture to
marketing and decline of the product.
• PLM software helps organizations to develop new products
and bring them to market. The software makes it easy to track
and share data along the product value chain, from initial
design through manufacturing, supply chain management and
operations, asset maintenance.
• The idea behind PLM software is that product design and
manufacture decisions can be performed more creatively,
faster and more economically when the data are integrated
and consistent.
• Although there is not one standard, PLM
products often start with product design
(CAD/CAM); move on to design for
manufacture and assembly (DFMA); and then
into product routing, materials, layout,
assembly, maintenance, and even
environmental issues.
 DFMA
• DFMA stands for Design for Manufacture and
Assembly. DFMA is the combination of two
methodologies; Design for Manufacture,
which means the design for ease of
manufacture of the parts that will form a
product, and Design for Assembly, which
means the design of the product for ease of
assembly.
• DFMA is used as the basis for engineering
studies to provide guidance to the design team
in simplifying the product structure, to reduce
manufacturing and assembly costs, and to
quantify improvements. The practice of
applying DFMA is to identify, quantify and
eliminate waste or inefficiency in a product
design. DFMA is therefore a component of
Lean Manufacturing. DFMA is also used as a
benchmarking tool to study competitors’
products, and as a cost tool to assist in supplier
negotiations.
 Process-Chain-Network (PCN) Analysis
• A process chain is a sequence/chain of steps that
accomplishes an activity such as building a home,
completing a tax return, or preparing a sandwich. A
process participant can be a manufacturer, a service
provider, or a customer.
• A network is a set of participants.

• PCN focuses on the ways in which processes can be

designed to optimize interaction between firms and
their customers.
• PCN analysis can be performed from both
supplier and consumer sides.
 Issues for Product Design
• Lack of Robust Design: It means that the
product is designed so that small variations in
production or assembly do not adversely
affect the product. (flexible)
• Lack of Modular design: products designed in
easily segmented components are known as
modular design. Here components of products
are subdivided into modules that are easily
interchanged or replaced.
• Lack of Computer Aided Design and Computer
Aided Manufacturing: CAD and CAM is the
interactive use of computer to develop, design,
document and manufacture of the product.
DFMA is a software that allows designers to look
at the effect of design on manufacturing of the
product. (3d printing technology)
• Lack of Virtual Reality Technology: VR is a visual
form of communication in which images
substitute for the real things in 3d layout but still
allow the user to respond interactively. The roots
of VR tech is CAD.
• Lack of Value Analysis: It focuses on
preproduction design and manufacturing
issues. It is a review of successful products
that takes place during the production
process. It seeks improvements that lead to
either a better product or product made more
economically or a product with less
environmental impacts.
• Lack of Sustainability and life cycle assessment
(LCA): Evaluation of products at the end of
cycle and its present and future impacts.
 Capacity Planning
• Capacity planning is the process of
determining the production capacity needed
by an organization to meet changing demands
for its products.
• The basic questions in capacity handling are:
- What kind of capacity is needed?
- How much is needed?
- When is needed?
 Importance
• Impacts ability to meet future demands.
• Affects operating costs.
• Involves long-term commitment.
• Affects competitiveness.
 Terms
• Design capacity: maximum output rate or
service capacity an operation, process, or
facility is designed for.
• Effective capacity: Design capacity minus
allowances such as personal time,
maintenance and scrap.
• Actual output: rate of output actually
achieved, cannot exceed effective capacity.