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2 Product Design Process

The document outlines the six major steps involved in the new product design process: idea generation, screening ideas, feasibility study, preliminary design, pilot runs and testing, and new product launch. It provides details on each step such as sources of ideas, criteria for screening, market analysis, prototype testing, and coordinating production and marketing for launch.

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29 views

2 Product Design Process

The document outlines the six major steps involved in the new product design process: idea generation, screening ideas, feasibility study, preliminary design, pilot runs and testing, and new product launch. It provides details on each step such as sources of ideas, criteria for screening, market analysis, prototype testing, and coordinating production and marketing for launch.

Uploaded by

6abdul1ghani9
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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New Product Design Process: 6 Major Steps Involved

The six steps involved in the process of new product design.

1. Idea Generation:

The design process begins with understanding the customers and their
needs. Ideas for new products can come from a variety of sources both within and
outside the firm. Internal sources include employees, research and development,
market research sales force and reverse engineering. The external sources include
customers, legislation, environment, technology and strategic position of the
organization. Competitors are also the source of ideas for new products or services.
Perceptual maps, bench marking and reverse engineering can help companies to
learn from their competitors. Perceptual maps helps to compare customer
perceptions of a company’s products with competitor’s products. It is a visual method
of comparing customer perceptions of different product or services:

1. Bench marking refers to finding the best in class product or process, measuring
the performance of your product or process against it and making recommendations
for improvement based on the results.

2. Reverse engineering refers to carefully dismantling and inspecting competitor’s


products to look for design features that can be incorporated to improve one’s own
products. Each of these sources gives a different emphasis on the requirements and
importance of idea generation.

2. Screening Ideas:

The purpose of screening ideas is to eliminate those ideas that do not appear
to have high potential and so avoid the costs incurred at subsequent stages. Using

group of people, proposals would be supported by graphics, models and an outline


specification and judged against a set of criteria such as necessity to the firms
survival, role in filling out an existing product/service, degree of overlap with existing
products and services, utilizing existing processes and capabilities, impact on overall
sales and profits of the company.

To have a better evaluation of ideas, each of the dimensions of the ideas is


scored on a 0-10 scale and each dimension is attached weights as per these
dimensions. The resulting aggregate score helps in deciding which idea to progress
and which idea should be dropped.

3. Feasibility Study:

Initial screening of the ideas is designed to stop the ideas, which are unsuitable for
further considerations. Feasibility study consists of a market analysis, an economic
analysis, and technical and strategic analysis.
Marketing takes the ideas that are generated and the customer needs that are
identified from the first stage of the design process and develops alternative product
concepts. The market analysis through customer analysis and market survey
assesses, whether there is an enough demand for the proposed product to invest in
developing further. If the sufficient demand exists, then there is an economic
analysis that aims at establishing the production and development costs and
compares them with estimated sales volume. The profit potential of the product can
be studied using quantitative techniques such as cost benefit analysis, decision
theory, and net present value (NPV) or internal rate of return (IRR).

The risk analysis is also carried out. Finally, technical and strategic analysis is
concerned with technical viability of the product with respect to technology, process
of manufacture, availability of materials etc. Performance specifications are written
for product concepts that pass the feasibility study and are approved for
development. The details of feasibility are given in figure.

4. Preliminary Design:

Design engineers take general performance specifications and translate them


in to technical specifications. The process of preliminary design involves building a
prototype, testing the prototype, revising the design, retesting and so on until a viable
design is determined. Design incorporates both form and function. Form design
refers to the physical appearance of a product, its shape, size, color, styling etc.
Aesthetics aspects such as image, market appeal, special identifications, finish etc.
will also form a part of the form design.

Production design is concerned with how the product will be made, otherwise,
production of new environment results the poor quality products with high value of
losses. During the design stage itself the manufacturing aspects should be
considered. The production design or design for production include simplification,
standardization and modularity. Design simplification attempts to reduce the number
of parts, subassemblies and options into a product. Standardization refers to use of
commonly available and interchangeable parts and subassemblies. Modular design
consist of combining standardized building blocks or modules in a variety of ways to
create a unique finished product. Modular design is common in electronics and
automobile industry.

5. Pilot Runs and Testing:

In the preliminary design stage, prototypes are built and tested after several
iterations, pilot run of the manufacturing process is conducted. Adjustments are
made as needed before finalizing the design. Apart from continuously testing the
product for performance, market testing is also carried out to check the acceptability
of the product in the defined market and customer group. This helps to know in
advance, whether customer will accept and buy this product on launching in the
market. Thus, test marketing is a powerful tool.

Final Design and Process Plans:

The final design consists of detailed drawings and specifications for the new
product. The accompanying process plans are workable instructions for manufacture
including necessary equipment’s and tooling, component sources job descriptions,
work instructions and Programmes for computer-assisted machines.

6. New Product Launch:

Launching a new product or service involves ramp up production. The


process has been refined and debugged, but it has yet to operate at a sustained
level of production. In ramp up, production starts at a relatively low level of volume
as the organization develops confidence in its abilities to execute production
consistently and marketing’s abilities to sell the product, the volume increases.
Launching the new product or service involves co-coordinating the supply chain and
rolling out marketing plans. Marketing and production will work in a co-coordinated
way during this phase.

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