Chapter 3: New Product Design

Lesson Objectives:
Define new product design and service design and explain its

importance in an organization.
Discuss the factors influencing the need for new product

design.
Elaborate the four phases of a product life cycle, and its

development stages in new product development.

Differentiate the strategies for new product design and new

service design.
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Chapter 3: New Product Design

Look around you: What is the latest model for PROTON, PERODUA and TOYOTA?

What are the differences between: a.MYVI and MYVI Se? b.COLGATE and COLGATE ProRelief? c.FAB and FAB SERBA BARU?
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Chapter 3: New Product Design

Importance of Product Design Factors on Needs for Product Design Objectives of Product Design Categories of New Products Categories of New Service Creations Product Development Stages

Importance of Product Design

Need to carry out product design strategies on

continuous basis due to: - market changes and market opportunities.

To develop new ideas and new products;

new processes for business survival; sustain competitive edge and advantage and retain market share.
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Factors influencing new product design

Economic changes - supply & demand needs - purchasing power Technological changes - fast processing speed - memory size - physical size

Sociological changes - quality of life - standard of living - preferences

New Product Design

Political changes - change of national policies - agricultural based - development based

Demographic changes - rural & urban - coastal & inland Market changes -market practices - suppliers & distributors - market competition

Legal changes - JAKIM Halal logo - SIRIM certification - Ministries regulations

Product life cycle changes

Factors that needs for new product design

Economic changes

supply and demand for new products change in customers needs and wants; economical cars, compact products purchasing power of market modern lifestyle, standard of living, organic/fast foods/frozen foods needs are necessities in daily lives, commercial, businesses rural and urban needs coastal and inland needs male and female needs modern technology : automation, robotics, innovations, business ICT faster speed, shorter time, increase memory, ICT advantage political influences, HADHARI, military strategies, development policies Government rulings, local Town Council requirements, trade regulations changes

Sociological changes

Demographic changes

Technological changes

Political changes

Legal changes

Other changes (market practice, product/ market standards, supplies and

distributors, competition in market)

Product life cycle changes

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Product Life Cycle

sales, volume

introduction stage

growth stage

mature stage

decline stage

time I
aggressive promotion advertise

II
competition split market sales growth

III
sales stagnant awareness market research

IV
sales drop new product design

Objectives of Product Design

to create new products/services to find new ways and uses of existing products to improve or develop new processes to reduce

manufacturing costs and capital

How? do a market research do R and D on products through products expo, conferences, trade fairs, competitions generate ideas from the organization, suppliers and distributors
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Categories of New Products

Incremental or Derivative Products/Services

hybrids or enhancement of existing products or services minimal changes in design or processes, need few resources to develop new features Examples: new packaging, new looks, visual appearances

Next Generation or Platform Products

represent a new system or solutions for customers for continued product revenue growth Examples: Pentium 2 - 4; INTEL DUO; Mitsu Evo 7 Evo 9; CAMPRO Gen-2.

Breakthrough or Radical Products /Services

Substantial design and product change Create new product categories as existing products will be obsolete soon Examples: Pentium 4; LRT;
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Categories of New Service Creations

Window Dressings

not significant different from other services Examples: ordinary food stall, ordinary bank, ordinary retail outlet

Breadth of Offerings

significant design change in content and services Examples: Executive Coach with facilities, hotels with luxurious buffet sets and dcor, banking services with package offers: loans, repayment schemes, credit facilities, Islamic trust funds schemes Examples: TV stations and programs

Revolutionary services

new in content and delivery services Examples: E- commerce, E business; one stop solution, AIR ASIA package Examples: Reality TV shows
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Services Design Approach

Customer contact depends on high degree of low degree contact the nature of services rendered The Moment of Truth Extent of contact

time and duration customer is involved in the service

Creation of service work processes involved in providing the services Simple documentation for services

Types of services

Service businesses : facilities based services, on site services Customer support services : provide product information and services Internal services : services for internal organizational units
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New Product Development Stages

Ideas generation from R& D, staff, customers; brainstorming

sessions, QFD technique Determine market requirements: needs and wants, expectations, aspirations Concepts development on product/services Design for Manufacturability (DFM) and Value Engineering Establish product specifications Establish functional specifications Documentations: assembly diagrams, process charts, engineering drawings Design reviews: pre-pro, pilot run, IMP Test market: samples, prototypes Introduction of product into the market
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DFM and Value Engineering

To reduce complexity of the product To standardize components: common parts To cost down material costs Improve functional aspects of the product To improve production/ assembly processes To improve safety processes, job design factors and

environmentally friendly To improve maintenance and serviceability of the product

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Case: ITALDESIGN to Widen PROTON Sedan Market Page: 56 Read and Reflect: How PROTON strategize on their product design? How PERODUA strategize on their product design?

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Lesson Outcomes Importance of New Product Design Factors Influencing New Product Design Product Life Cycle Strategies of NPD or NSD

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