Learning Objectives
LO 3-1: Explain how new product ideas are generated, analyzed, selected, designed, and then manufactured.
New product ideas are generated by employees, customers, and competitors. The ideas spring from the need for additional features or capabilities. These new product ideas are analyzed to ensure a strategic fit, which means the product designs must align with the operational capabilities of the company (internal fit), and with market conditions, as well as customer desires (external fit). If an internal fit isn’t possible, then companies may use contract manufacturers who possess the required capabilities. This option allows a firm to select and design a new product that otherwise could not be implemented effectively.
LO 3-2: Summarize the steps in the product development process.
There are six steps in the product development process. First is generate ideas. These ideas can come from employees, customers, or competitors. The firm then develops the concept. One tool used to develop the concept is the house of quality, which enables the firm to understand the relationship between customer requirements, product attributes, and design specifications. The product idea is then analyzed and screened based on things such as target market size, demand trends, competitor analysis, and the product’s financial analysis. The next phase is product and process design where detailed specifications, prototypes, etc. are developed. Then, the product is tested in test markets, through focus groups, etc., to determine if any improvements or changes are required. Finally, the product is introduced to the market.
LO 3-3: Explain the practices used to reduce product development lead times.
Product development lead times can be reduced in several ways. Concurrent engineering is when the manufacturing process or service delivery system is designed simultaneously with the design of the product. This practice is enhanced when early supplier involvement is done as well. The design for manufacture and assembly includes practices that utilize software to essentially simplify product designs by enabling designers to examine alternative material, parts, and process choices.
LO 3-4: Describe how sustainability impacts product designs.
Sustainability impacts product design by driving the inclusion of sustainability elements into the design, operations, and disposal stages of goods and services. Sustainability has led to the development of life cycle assessments which analyze a product’s environmental impact such as its carbon footprint, energy usage, etc.
LO 3-5: Describe and critique some of the latest trends in product design.
Three major trends in product design are cell phone trends, packaging trends, and workplace design trends. Cell phone trends are an excellent example of developing more personalized products for consumers. Cell phones are entertainment and financial transaction centers, as well as enablers of personal health management activities. Packaging trends are enhancing a company’s ability to fight counterfeiting, tampering, and aids in traceability. In addition, new packaging techniques are reducing container weights and improving a product’s shelf impact. Finally, workplace design trends have companies designing more open floor plans, making more use of mobile technology to allow work to take place anywhere; thus, driving an increase in productivity and enhancing teamwork.
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