Madam Samreen Bs(Commerce)7th Sem.Mor Group Members

1. M.Sajid 102. M.Javed Rabbani 133. Arslan Yousaf 184. Afzaal Saqim 195. Adil Nisar 286. Ayesha Maqbool 407. Zawar Hussain 518. Ayesha Sabir 68

M.Javed Rabbani 13

Factors to be considered at

product design stage

Organization are required to design the new products for the following reasons

To be in business on continuous basis. To satisfy unfulfilled needs of the customer. Company existing product line becomes

saturated and the sales are on the decline. To enter in to new prospective business . Fierce competition in the existing product line. Profit is on the decline.

Factors to be considered at product design stage Marketing aspect Product characteristics Economic Analysis Profitability and competitiveness Production aspect

Marketing Aspect Will the product satisfy the customer or not. How to create the demand of product.

Product Characteristics Functional aspect Operational aspect Durability and dependability Aesthetics aspect

M.Sajid 10

Economic analysis Definition

“Systematic approach to determining the optimum use of scarce resources, involving comparison of two or more alternatives in achieving a specific objective under the given assumptions and constraints.”

Economic AnalysisIntroduction:

It is an important factor to the management taking decision regarding product design policy. After information customer requirement and market potentialities detailed study about functional, operational and quality aspects.

Answer the question below:

a) What capital expenditure is required for manufacturing the product decided by the company ?

b) What is the expected production cost of the product?

c) what is the reasonable margin of profit that can be expected ?

d) do the price and futur of the product render it competitive in the market ?

e) what are the expected sale ?

Economic analysis is the cyclic and respective procedure.

Specialization : At the time of planning the company decide

what extent it should specialize in the product line. Unrelated product don’t make to their product line.

Good planning keep the company from expending beyond its frame work of its product line i.e. manageability and profitability .

For Example: Soap Specialization but make television,

Standard and Standardization

A standard is a document that establishes uniform engineering or technical specifications, criteria, methods, processes, or practices

Standardization is the process of establishing a technical standard, which could be a standard test method, standard procedure (or practice), etc

Standardization : It is a rule establish by authority custom or generl

consent .

Used more today in connectionn with technology ,indusstry and producton processes .

It is essential to modern mass production economy.

ISI promotes standardization in co-operation with various industries .

It is a useful technique design to bring about over all economy by increasing productivity .

Aims of standardization:. 1) To achieve economy in terms of cost, human

effort, and scarce material.

2) To ensure maximum convenience by variety reduction ,interchange ability of parts waste which are means of increasing productivity.

3)Adopt the best possible solution to recovering problems of economy and convenience using all the available sciencetific knowledge and latest technology development.

4) To maintain the desired level of productivity .

Simplification : Refer to reduction of types color size and other

characteristics. Purpose of it to meet effectively consumer requirement .

Continuous employment instead of temporary or seasonal employment depending on the demand of product varieties .

Prompt delivery of goods to the consumer .

Less obsolescence of material and machinery .

Findings the verities by preferred numbers.Mr. Renard an engineer in french army

inventered these numbers .five series are designated as R-5,R-10,R-20,R-40 and R-80 series .

Management to produce all the varieties.

Fulfill Requirement in market .

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PLSIntroduction:Product :- One or two

Price:- Skimming or penetration price stretegy.

Place/Distribution:- Selective

Promotion:-It is aimed to introduce or awareness the new product.

Growth Product:-Improve product quality.

Price:- Demand high then keep price maintained high or reduce to capture additional customer.

Place/Distribution:-Become more extensive.

Promotion:-Increased advertising to build the product preference.

Maturity Product:-Modifications due to competing products.

Price:- Possible price reduction in response to competition.

Place/Distribution:-New distribution channels.

Promotion:-Incentive to get competition customer to switch.

Decline

Product:-Surviving the product.

Price:-Low Price

Place/Distribution:- becomes more selective.

Promotion:-Low Expenditures and aimed o reinforcing the product.

Profit and competitiveness It is measured in terms of market share .The profit expected id determined by the margin of profit

per unit by the sales volume.

Any business firm can increase its profit by ,1) Increasing the sale price by increasing the profit

margin.2) Increasing its sales by reducing the profit margin per

unit. Too much low profit per unit will create a problem in unstable market ).

3) To reduce the total cost by applying cost reduction technique or by increasing the productivity.

ARSLAN YOUSAF ROLL NO 18

Production aspectAfter dealing with all the above discussed

factors, finally it has to consider the production aspect.The designer has to keep in mind number of factors regarding production to arrive at feasible solution. He has to consider below mention aspect of production engineering.

Selection of processThe production manager has to select the process required for

producing the product such that they are most suitable and economical such a selection has to consider because.

1) Some processes are very expensive to operate below certain volume of production.

2) Availability of idol capacity of certain facilities.3) The changes in design required to suite available jigs

fixture and other production aids.4) Sequence of operations and method of assembling.5) Limitation of skill available.6) Application of new process.

Selecton of material and comonents

1)The designer has to select material of right specification ,so that wastages can be reduced.

2)Selection of method ,which reduced waste and scrap.

3)Recommending standard components and assemblies, which have interchangeability of components and assemblies within the products. (Examples: bolts ,nuts ,grinder blades,ball pen caps,Etc.)

Selection of Appropriate workmanship and tolerances:

The tolerances alllowed wnd the workmanxhip desired must be such that they satisfy quality requirements.

in general we can say the product designed must have

1)High reliability2)Redundancy3)Compataibility

4)Interchangeability

5)Standardization

6)maintainability.