NATIONAL UNIVERSITY OF MODERN

LANGUAGES ISLAMABAD
DEPARTMENT OF MANAGEMENT SCIENCES
11th MAY 2022
FINAL PROJECT
TOPIC: PRODUCT DEVELOPMENT AND DESIGN

SUBMITTED BY: BBA-6B

GROUP MEMBERS
SAMRA HASSAN 9191072
HIRA NAZ 9191041
HAFSA RAMZAN 9191048
HAMMAD HASSAN 9191045
SAQIB NISAR 9191074

A Capstone Submitted to the Faculty of Management Sciences NUML University in Fulfillment

of the Requirement for the Final Project

SUBMITTED TO

SIR RAO SAAD ALI

 PRODUCT DEVELOPMENT AND DESIGN

PRODUCT DEVELOPMENT:
Product development is the process required to bring a product from being a concept to reaching
the market. Product development is the organization and management of people and information
they develop in the evolution of a product.

STAGES OF PRODUCT DEVELOPMENT:

The following are the stages of product development:
1) Idea generation
2) Idea screening
3) Concept development and testing
4) Marketing strategy/ Business analysis
5) Product development
6) Market testing
7) Commercialization

1. IDEA GENERATION:

Idea generation refers to the systematic search for new product ideas. And Idea generation or
ideation is the act of forming ideas. Typically, a company generates hundreds of ideas, maybe even
thousands to find a handful of good ones in the end. You should aim to cope with the idea that is
unique from your competitors and can be used profitably.

2. IDEA SCREENING:

All ideas generated are screened to spot good ones and drop poor ones as soon as possible. Because
if a poor idea is allowed to pass the screening stage, it wastes effort and money in later stages until
it is abandoned.

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 3. CONCEPT DEVELOPMENT AND TESTING:

It is a crucial stage in the new product or service development. A new product concept is a blueprint
for your idea. Testing is the process that helps you assess the customer’s reaction to your proposed
product or service prior to introducing it to the market.
4. MARKETING STRATEGY / BUSINESS ANALYSIS:

Marketing strategy is all about drafting a way to reach out to the targeted audience. While Business
analysis will help to determine whether the New Product Development efforts are worth the
financial investment or not (i.e., will it create a continuous stream of value)?
5. PRODUCT DEVELOPMENT:

The new product development process goes on with the actual product development. Up to this
point, for many new product concepts, there may exist only a word description, a drawing or
perhaps a rough prototype.
6. MARKET TESTING:

Test marketing is a marketing method that aims to explore consumer response to a product or
marketing campaign by making it available on a limited basis before a wider release
7. COMMERCIALIZATION:

Commercialization means nothing else than introducing a new product into the market. At this
point, the highest costs are incurred: the company may need to build or rent a manufacturing
facility.

PRODUCT DESIGN:
A design process is a technical activity within a Product Development process that works to meet
marketing and business case vision. Product design specifies which materials are to be used,
determines dimensions and tolerances, defines the appearance of the product, and sets the standard
of performance.

FACTORS AFFECTING PRODUCT DESIGN:

The following are the factors that affect the product design:

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 1. CUSTOMER REQUIREMENT:
The end-users or customers are the ones that would leverage the product. So, due respect should
be given to their requirements before designing a product. The designers should make sure that the
product is ergonomically designed so that the customers can use it conveniently in all conditions.

2. FACILITIES FOR THE OPERATORS:

It is the task of product designers to ensure that the operators can effortlessly perform the intended
operations using the product. The product should be integrated with all the essential features and
facilities that make its operation simple and comfortable. If the product design is complicated, then
the operator may become tired and be less productive. So, the product should be designed in such
a way that it is easy to handle and operate.

3. COST RATIO:
A product designer must design high-quality products in a way that is cost-effective. The product
should be of top-notch quality, functional, and appealing in design, such that it attracts customers.
The designer must also ensure that he is creating a design that is even cost-effective as that will
attract the customers most.

4. CAPABILITY OF PROCESS:

A product designer must have the requisite knowledge of the machinery in order to take care of
the quality of conformance. The quality of conformance depends on the capacity of equipment and
machines (how much they can process). A designer should thus establish a tolerance limit of each
machine and equipment.

5. QUALITY OF PRODUCT:
The design of a product and its quality should go hand in hand. The quality of a product depends
on its design as well as conformity. So, the designer must ensure that he/she is producing a good
quality product that embellishes an impressive design.

6. MATERIAL REQUIREMENT:
The type, quality, and nature of a material used in the production of a product impact its design to
a great extent. So, the designer must have adequate knowledge of the materials. He/she should
have up-to-date information about the availability of new and better materials in order to create
the desired product.

7. EFFECT ON EXISTING DESIGN:

In case a new product is being designed to replace an existing product, then a designer should
ensure that he/she uses the standards materials, parts, components, design strategies, techniques,
and manufacturing processes. It is the task of a product designer to blend the existing product with
new manufacturing technology. In this way, the designer can keep the production cost minimum.

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 8. PACKAGING:
Packaging is one of the core components associated with a product. The design of the package of
a product is equally important as the product itself. This is because packaging ensures that the
product is delivered safely to the end-users. Thus, the designer should ensure that the package is
protective and even serves the promotional purpose. The package should be attractive as that will
appeal to the customers.

STEPS IN PRODUCT DESIGN:

The following are the steps in product design:
• STEP 1 Assessing the Problem:
The first step is defining or identifying the problem. It is the most difficult and the most
important of all the steps.
• STEP 2 Research:
Research implies several aspects including market research to define the presence of
competitors, the definition of trends, the assessment of the product’s prospective longevity,
etc.
• STEP 3 Sketching:
Sketching allows product designers to generate ideas quickly, without committing
resources to any single idea.
• STEP 4 Prototypes:
A prototype is a physical manifestation of your idea or concept. It is typically used to
validate the product's design and functionality and gather end-user feedback before
investing in mass production.
• STEP 5 Final Design:
The next step is to produce the final design of our product.
• STEP 6 Testing:
Testing samples allows you to timely identify the flaws of the product or inconsistencies
with the requirements. That is before you even begin an expensive procedure of its
implementation.
• STEP 7 Manufacturing:
This is the last step. At the time of starting the manufacturing/developing the product, you
will already have a full set of technical specifications with clearly defined requirements,
tasks, responsibilities, deadlines, and budget.

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ISSUES IN PRODUCT DESIGN:
1. Robust Design:
A design that can be produced to requirements even with unfavorable conditions in the
production process.
2. Modular Design:
A design in which parts or components of a product are subdivided into modules that are
easily interchanged or replaced. Operations managers find modularity helpful because it
makes product development, production, and subsequent changes easier. Marketing may
like modularity because it adds flexibility to the ways customers can be satisfied.
3. Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM):
Computer-aided design (CAD) is the use of computers to interactively design products and
prepare engineering documentation. CAD uses three-dimensional drawing to save time and
money by shortening development cycles for virtually all products.
Computer-aided manufacturing (CAM) refers to the use of specialized computer programs
to direct and control manufacturing equipment. When CAD information is translated into
instructions for CAM, the result of these two technologies is CAD/CAM. A combination
is a powerful tool for manufacturing efficiency.
4. Virtual Reality Technology:
Virtual reality is a visual form of communication in which images substitute for the real
thing but still allow the user to respond interactively. The roots of virtual reality technology
in operations are in CAD. Once design information is in a CAD system, it is also in
electronic digital form for other uses, such as developing 3-D layouts of everything from
retail stores and restaurant layouts to amusement parks.
5. Value Analysis:
A review of successful products that takes place during the production process. Value
analysis seeks improvements that lead to either a better product, a product made more
economically, or a product with less environmental impact.
6. Sustainability and Life Cycle Assessment (LCA):
Sustainability means meeting the needs of the present without compromising the ability of
future generations to meet their needs. An LCA is a formal evaluation of the environmental
impact of a product.

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CASE STUDIES:
➢ CASE STUDY OF PRODUCT DEVELOPMENT:

De Mar, a plumbing, heating, and air-conditioning company located in Fresno, California, has a
simple but powerful product strategy: Solve the customer’s problem no matter what, solve the
problem when the customer needs it solved, and make sure the customer feels good when you
leave. De Mar offers guaranteed, same-day service for customers requiring it. The company
provides 24-hour-a-day, 7-day-a-week service at no extra charge for customers whose air
conditioning dies on a hot summer Sunday or whose toilet overflows at 2:30 A.M. As assistant
service coordinator Janie Walter puts it: “We will be there to fix your A/C on the fourth of July,
and it’s not a penny extra. When our competitors won’t get out of bed, we’ll be there!” De Mar
guarantees the price of a job to the penny before the work begins. Whereas most competitors
guarantee their work for 30 days, De Mar guarantees all parts and labor for one year. The company
assesses no travel charge because “it’s not fair to charge customers for driving out.” Owner Larry
Harmon says: “We are in an industry that doesn’t have the best reputation. If we start making
money our main goal, we are in trouble. So, I stress customer satisfaction; money is the by-
product”. De Mar uses selective hiring, ongoing training and education, performance measures,
and compensation that incorporate customer satisfaction, strong teamwork, peer pressure,
empowerment, and aggressive promotion to implement its strategy. Says credit manager Anne
Semrick: “The person who wants a nine-to-five job needs to go somewhere else.” De Mar is a
premium pricer. Yet customers respond because De Mar delivers value—that is, benefits for costs.
In 8 years, annual sales increased from about $200,000 to more than $3.3 million.

Questions:
1. What is De Mar’s product? Identify the tangible parts of this product and its service
components.
2. How should other areas of De Mar (marketing, finance, personnel) support its product
strategy?

➢ CASE STUDY OF PRODUCT DESIGN:

With hundreds of competitors in the boat business, Regal Marine must work to differentiate itself
from the flock. As we saw in the Global Company Profile that opened this chapter, Regal
continuously introduces innovative, high-quality new boats. Its differentiation strategy is reflected
in a product line consisting of 22 models.
To maintain this stream of innovation, and with so many boats at varying stages of their life cycles,
Regal constantly seeks design input from customers, dealers, and consultants. Design ideas rapidly
find themselves in the styling studio, where they are placed onto CAD machines in order to speed
the development process. Existing boat designs are always evolving as the company tries to stay
stylish and competitive. Moreover, with life cycles as short as 3 years, a steady stream of new

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products is required. A few years ago, the new product was the three-passenger $11,000 Rush, a
small but powerful boat capable of pulling a water skier. This was followed by a 20-foot inboard–
outboard performance boat with so many innovations that it won prize after prize in the industry.
Another new boat is a redesigned 52-foot sports yacht that sleeps six in luxury staterooms. With
all these models and innovations, Regal designers and production personnel are under pressure to
respond quickly.

Questions:

1. How does the concept of Product life cycle apply to Regal Marine products?
2. What strategy Regal use to stay competitive?
3. What are the likely benefits of the CAD design technology?

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By getting key suppliers on board early and urging them to participate at the design stage, Regal
improves both innovations and quality while speeding product development. Regal finds that the
sooner it brings suppliers on board, the faster it can bring new boats to the market. After a
development stage that constitutes concept and styling, CAD designs yield product specifications.
The first stage in actual production is the creation of the “plug,” a foam-based carving used to
make the molds for fiberglass hulls and decks. Specifications from the CAD system drive the
carving process. Once the plug is carved, the permanent molds for each new hull and deck design
are formed. Molds take about 4 to 8 weeks to make and are all handmade. Similar molds are made
for many of the other features in Regal boats from galley and stateroom components to lavatories
and steps. Finished molds can be joined and used to make thousands of boats.

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