Product life cycle management

1
Subject: PRODUCT LIFE CYCLE MANAGEMENT Subject Code: 4BME836
MODULE 1: INTRODUCTION TO PLM AND PDM (9 HRS)
Introduction to PLM, Need for PLM, Opportunities and benefits of PLM, Different views of PLM, components of PLM, Phases of PLM,
PLM feasibility study. PLM Strategies, strategy elements, its identification, selection and implementation. Product Data Management,
implementation of PDM systems.
MODULE 2: PRODUCT DESIGN (9 HRS)
Engineering design, Organization and decomposition in product design, Product design process, Methodical evolution in product design,
Concurrent engineering, Design for ‘X’ and design central development model. Strategies for recovery at end of life, recycling, human factors
in product design. Modeling and simulation in product
MODULE 3: PRODUCT DEVELOPMENT (9 HRS)
New Product Development, Structuring new product development, building decision support system, Estimating market opportunities for new
product, new product financial control, implementing new product development, market entry decision, launching and tracking new product
program. Concept of redesign of product.
MODULE 4: TECHNOLOGY FORECASTING (9 HRS)
Technological change, Methods of technology forecasting, Relevance trees, Morphological methods, Flow diagram and combining forecast of
technologies, Integration of technological product innovation and product development in business processes within enterprises, methods and
tools in the innovation process according to the situation.
MODULE 5: PRODUCT BUILDING AND STRUCTURES (9 HRS)
Virtual product development tools for components, machines, and manufacturing plants: 3D CAD systems, digital mock-up, model building,
model analysis, production (process) planning, and product data technology, Product structures: Variant management, product configuration,
material master data, product description data, Data models, Life cycles of individual items, status of items.
TEXT BOOKS:
1.Stark, John. Product Lifecycle Management: Paradigm for 21st Century Product Realisation, Springer-Verlag, 2004. ISBN 1852338105
1.Fabio Giudice, Guido La Rosa, Product Design for the environment-A life cycle approach, Taylor & Francis 2006

What is Product Life Cycle?
Different marketing strategies -which will be used in
that system- should be applied according to the product,
environment, competitor, the company’s position. All
products have a short term or long term life and new life
cycle starts from when this life ended up. That cycle
includes five steps.
2

3
New Product Development Stage

Research and Development
In that level; Companies decide for cost of product and
problems of service.80% of product costs are
determined at this stage. Products are designed, made
a prototype and tested for needs of various users. Then
the new product will be marketing for various sectors.
4

Introduction (Offer)
In that level; large budgets must be separated for
promotion because it is the first time of product –
market meeting. So word of mouth marketing is not
possible even the product is so qualified. The size of the
budget influences the length of product life cycle. The
new product does not produce profit due to costs of
supply and promotion.
6

Growth
If the product is fit for market, companies can pass
this level. In that level; Companies begin to obtain
revenue. The price of the product can be the same at
the beginning or it can be change. The cost of
marketing should be stable and also you have to
invest for improving your product's features.
Expansion of distribution lines reach to the new
customers profile. After all that, rate of profit is going
to pick-up.
7

Maturity
This level starts from the rate of sales decline.
Competition increases between sellers. The
competitors try to reduce prices and the their product
quality may be good.
8

Decline
In that level; the rate of sales reduces visibly. The
reasons of decline are technological developments,
opponents who gain experience and strong etc. At the
end of this stage the companies need to know the
idea of customers about product. Because they need
that feedback system to improve their product.
9

What is the PLM?
Product Life Cycle Management addresses the full life cycles of
products, from conception until disposal. The first call was made
in 2000 by IBM(International Business Machines). The most
important starting point for PLM is the launch of the new concept
above traditional cost-quality - the process of supply triangle.
PLM includes that a product of all the engineering, manufacturing
and information of maintenance, digital media store, check.PLM
starts from the creation of a product and finishes with re -
transformation of product. At the same time this system can offer
the products to different user profiles. The creation of the product
determines largely what can be done with the product in the later
life cycle phases.
11

The aim of PLM
PLM always tries to reduce loss of energy, materials, work force.
So, PLM brings together very professional engineering disciplines.
Because of that different groups, these losses can be optimized
and also PLM contributes to a new generation of creative thinking.
PLM use two strategies to make a real result. These are efficiency
and innovation.
12

Main Components and Figures of PLM
The Main Components:
Data management: It enables appropriate stage for management. It
provides information about product features, bills of material, data
distribution, project structure.
Program and project management: It’s about the process of
developing a product. It gives information on planning, management
and checking.
Cooperation: It supports project management and it relies on WEB
standards which are based on XML(Extensible Markup Language)
Quality management: It provides an integrated quality
management for each sector.
Management of corporate assets: It directs equipment and
physical assets
13

The Main Figures
Introduction (from conception to disposal)
Product life cycle management process
Business (the money dimension)
Heart beat of changes (the time dimension)
Complexity (huge number of configurations)
Conclusion
14

Which factors have an impact on PLM?
External Factors
✓Scale: Companies want to grow continuously.
✓Complexity: The diversity of product increases because of
product and the process of production.
✓Time of cycle: It’s important for competition.
✓Lean production: It’s about using less energy and material.
✓Global competition: The competition has increased
significantly.
✓The arrangements made by governments and
international agreements: It’s about environmental
degradation, work and arrangement of job security.
15

What are the sub-softwares?
• PLM software is a solution that manages all of the
information and processes at every step of a product or
service lifecycle Management. This includes the data from
items, parts, products, documents, requirements,
engineering change orders, and quality workflows.
• Product Portfolio Management (PPM).
• Computer Aided Design / Engineering / Manufacturing
(CAx).
• Product Data Management (PDM).
• Manufacturing Process Management (MPM)
• Digital Manufacturing (DM).
17

What are the solutions of PLM?
o It has been developed for the improvement of organization by
IT(Information technology).
o Work to rely on customer.
o Responding quickly to changing market conditions.
o Shortening the duration of the market to offer new products.
o Workflow that allows optimization of product.
o Reduction in the cost of prototype.
o Continuous innovation process and implement new technologies
effectively.
o Reduction of waste.
o Being in closer contact with customers and suppliers.
18

What are the advantages of this software?
❖ to simulate the developed model.
❖ to design the product before the other companies.
❖ to pull down the cost.
❖ to save from time and energy.
❖ to increase competitiveness in the world.
❖ to create higher quality products.
❖ to launch new products in less time, at a lower cost.
❖ to understand what change really costs in terms of time and money.
❖ to control your production processes and not let them control you.
❖ to increase profits and market share.
20

21
Product Lifecycle Management (PLM) is the business activity of managing, in the
most effective way, a company’s products all the way across their lifecycles; from the
very first idea for a product all the way through until it is retired and disposed of.
The objective of PLM is to increase the product revenues,
reduce product-related costs, maximize the value of the
product portfolio, and maximize the value of current and
future products for both customers and shareholders.
PLM eliminates waste and inefficiency across all aspects of a
product’s life, not solely in its manufacture. PLM is focused
on using the power of information and computers to
deliberately pare inefficiencies from the design, manufacture,
support, and ultimate disposal of a product.

 PHASES OF PLM:
 During the imagination phase, the product is just an idea in people’s head.
 During the definition phase, the ideas are being converted into a detailed
description.
 By the end of the realization phase, the product exists in its final form (for example,
as a car) in which it can be used by a customer.
 During the use/support phase, the product is with the customer who is using it.
 Eventually the product gets to a phase in which it’s no longer useful. It’s retired by
the company and disposed by the customer.
 Three of the lifecycle phases (Imagination, Definition and Realization) make up the
Beginning-of-Life (BOL) of the product.
 There is a Middle-of-Life (MOL) phase which includes activities such as product
use, support and maintenance.
 There is an End-of-Life (EOL) phase which includes activities such as product
retirement, disposal and recycling.
22

23
 NEED FOR PLM:
 Product development is the key to future innovation. But, the challenge here is
the new products take a long time to develop and reach the market. Without a
system to manage all the different aspects of creating a new product, it is very
easy for product development to run late and over budget.
The need for PLM will be to
 Manage a well-structured and valuable Product Portfolio. (collection of financial
investments like stocks, bonds, commodities, cash etc)
 Maximize the financial return from the Product Portfolio.
 Provide control and visibility over products throughout the lifecycle.
 Manage products across the lifecycle.
 Manage product development, support and disposal projects effectively.
 Manage feedback about products from customers, Design thinkers and the market.
 Enable collaborative work with design and supply chain partners and with customers.
 Capture, securely manage, and maintain the integrity of product definition information
and make it available where and when it’s needed.
 Know the exact characteristics, both technical and financial, of a product throughout its
lifecycle.

 OPPORTUNITIES AND BENEFITS OF PLM:
 PLM enables companies to take advantage of the many opportunities available at the
beginning of the twenty-first century. Some of these opportunities are the result of new
technologies.
 Opportunities of globalization (the process by which businesses or other organizations
develop start operating new product development)
 Technology opportunities
 Smart Product Opportunities
 Social and environmental opportunities
 Benefits:
 Capture customer requirements better.
 Create more innovative ideas.
 Increase the number of customers by developing and supporting new products by reduced time to market
and increase sales.
 Improved product quality and consistency.
 Reduced prototyping costs by reducing wastes.
 More accurate and timely request for quotation generation.
 A framework for product optimization.
 Savings through the complete integration of engineering workflows.
 Documentation that can assist in proving compliance i.e. Savings through the re-use of original data.
 Ability to provide contract manufacturers with access to a centralized product record.
 Improved forecasting to reduce material costs.
 Maximize supply chain collaboration.
24

❖ DIFFERENT VIEWS FOR PLM
The different stand points in the functionality of any industry includes
CEO, top managers, product development managers, product support
managers, engineering managers, quality managers, human resource
managers, application system vendors etc. each of their views is discussed
in brief below:
1. CEO:
2. Business planners:
3. Functional managers:
4. Marketing managers:
5. Engineering managers and product support managers:
6. Workers :
7. Application system vendors:
25

26
COMPONENTS OF PLM:
Product data is just one component of PLM. Other components include the
products themselves, organizational structure, working methods, processes,
people and information systems. Addressing them together leads to better results
than addressing them separately. The first two components are the customer
and the product. Without a product the company doesn’t need to exist and
won’t have any customers.
1. Product:
2. Organizational structure:
3. Human resource:
4. Methods, techniques, practices, methodologies:
5. Processes:
6. System components:
7. Slicing and dicing the systems:
8. Interfaces:
9. Information:
10.Standards:

28
FEASIBILITY STUDY:
The feasibility study is carried out to find out what type of approach and what
level of response is appropriate for the challenges that the company faces.
May be an enterprise-wide initiative targeting new market-leading products and
control over the entire lifecycle is needed? If In which case it would be useful to
develop a PLM Vision, a PLM Strategy and a PLM Plan.
May be the main benefits can be achieved by implementing new lifecycle
processes across several functions?
May be there are benefits to be had by targeting some very precisely defined
improvement areas?

29
FEASIBILITY STUDY:
The feasibility study should lead to a report of the form and contents shown below
table

30
STRATEGIES:
Strategy is the science of planning and directing large-scale operations, specifically
(as distinguished from tactics) of directional forces into the most advantageous
position. Once the PLM Vision has been defined, people will want to know what the
organization will look like in five years. They’ll ask how the resources in the product
lifecycle should be deployed, structured and used in the next five years to achieve
the Vision. They’ll want to know how to organize the change from today’s
organization to the future organization.
1.Manufacturing strategy:
2.Company strategy:

31
PLM STRATEGIES:
A strategy describes the way to achieve objectives; how resources will be organized,
managed and used; policies governing use and management of resources. Deciding how to
organise, manage and use the resources is a key part of strategy development.
A PLM strategy will be company-specific. Without knowing a particular organization in
detail, it’s not possible to say what its strategy should be.
A PLM strategy defines a way to achieve the Vision. It describes how resources will be
organized and used. They are specific to individual organizations because they depend on
the particular circumstances and resources of the individual organization, and on its
particular environment
Typically the PLM strategy will be developed for a five-year period. It will then be
reviewed annually. The strategy should only be changed during the five-year period for
very good reasons. Often it will take two or three years for the effects of a change of
strategy to become evident.

32
PLM STRATEGIES:
PLM strategy is the starting point for developing and implementing improvement
plans. A PLM strategy helps everybody to move forward along the same road
towards the new environment.
Developing a PLM strategy is a five step process.
1. Collecting information.
2. Identifying possible strategies.
3. Selecting a strategy.
4. Communicating the selected strategy.
5. Implementing the strategy.

33
STRATEGY ELEMENTS:
The exact meaning of a strategy element will differ from one company to another.
For example, the strategy elements of “fastest time-to-market” and “lowest-cost
competitor” could both be implemented in many ways. “Fastest time-to-market”
could be implemented by building up a pre-defined stock of solutions, by
increasing the number of engineers, or by shortening the product development
process by removing non-value-adding activities.
Some of the key points could be:
1. Customer involvement
2. Customisation capability
3. The highest functionality products and/or service
4. The most robust product or services
5. The best processes
6. Fastest time to market
7. Value-adding lifecycle
8. Lowest-cost competitor
9. The longest life product
10.Environment-friendly products

34
PRODUCT DATA MANAGEMENT (PDM) SYSTEMS:
Product Data Management (PDM) systems are one of the most important components of a PLM solution.
They are the primary system component of PLM. They are the systems to manage product data and
product workflow.
The basic components of a PDM system include:
The information warehouse or vault. This is where product data is stored.
The information management module, which manages the information warehouse. It is responsible for
such issues as data access, storage and recall, information security and integrity, concurrent use of data,
and archival and recovery. It provides traceability of all actions taken on product data.
The user interface. This provides a standard, but tailorable, interface for users. It supports user queries,
menu-driven and forms-driven input, and report generation.
System interfaces for programs such as CAD and ERP
Information and workflow structure definition functions which are used to define the structure of the
data and workflows to be managed by the PDM system. The workflow is made up of a set of tasks. Data
such as resources, events, responsibilities, procedures and standards can be associated to these tasks.
Information structure management functions that maintain the exact structure of all information in the
system across the product lifecycle
Workflow management functions that keep workflow under control, for example, managing engineering
changes and revisions.
System administration functionality which is used to set up, and maintain, the configuration of the
system, and to assign and modify access rights.

35
PRODUCT DATA MANAGEMENT (PDM) SYSTEMS:
Product Data Management (PDM) systems are one of the most important components of a PLM solution.
They are the primary system component of PLM. They are the systems to manage product data and
product workflow.
The basic components of a PDM system include:
The information warehouse or vault. This is where product data is stored.
The information management module, which manages the information warehouse. It is responsible for
such issues as data access, storage and recall, information security and integrity, concurrent use of data,
and archival and recovery. It provides traceability of all actions taken on product data.
The user interface. This provides a standard, but tailorable, interface for users. It supports user queries,
menu-driven and forms-driven input, and report generation.
System interfaces for programs such as CAD and ERP
Information and workflow structure definition functions which are used to define the structure of the
data and workflows to be managed by the PDM system. The workflow is made up of a set of tasks. Data
such as resources, events, responsibilities, procedures and standards can be associated to these tasks.
Information structure management functions that maintain the exact structure of all information in the
system across the product lifecycle
Workflow management functions that keep workflow under control, for example, managing engineering
changes and revisions.
System administration functionality which is used to set up, and maintain, the configuration of the
system, and to assign and modify access rights.

Because of all these solutions and advantages, the
volume of PLM was 10.2 billion dollars in the world
according to the last user license.
36

Which sectors will use this system?
This system can be used in many different sectors. For
example: Space and aviation, architecture, construction,
automotive, industrial team, life sciences, energy, petrol,
shipbuilding, textile, confection.
37

38
Module:2 PRODUCT DESIGN
Product design is understood as a process whereby an organizational structure defines a problem
and translates it into a feasible solution, making a series of design choices that each depend on the
preceding choices and on a set of variables that collectively define the product, how it is made, and
how it functions.
ENGINEERING DESIGN:
In engineering science, design is the activity that enables the creation of new products, processes,
systems, and organizational structures through which engineering contributes to society, satisfying
its needs.
As with the product development process, the engineering design process cannot easily be assigned
a single common scheme due to the great variety of possible design experiences. To summarize this
variety, some authors distinguish between product design processes according to the principal
categories of design intervention.
Creative design
Innovative design
Redesign
Routine design

39
PRODUCT DEVELOPMENT PROCESS

40
PRODUCT DESIGN PROCESS:
“Product design” is understood as an activity that applies scientific techniques and
principles to a set of information (needs, requirements, constraints), with the aim of
defining the constructional system comprising the product in a manner sufficiently
detailed to allow its physical realization.

47
METHODOLOGICAL EVOLUTION IN PRODUCT DESIGN:

48
METHODOLOGICAL EVOLUTION IN PRODUCT DESIGN:
In the context of this new, simultaneous/integrated statement, three approaches are currently the subject of much
of the research regarding design methodologies:
•Concurrent Engineering (CE)—Aims at a full management between the increase in product quality and the
reduction of development times and costs through a structuring of product development that involves a large
design team conducting simultaneous and interconnected analysis and synthesis actions, in relation to all the
phases of development.
•Design for X (DFX)—Involves a flexible system of design methodologies and tools, each directed at the
attainment of a particular product requirement.
•Life Cycle Design (LCD)—Extends the field of design analysis to the entire life cycle of the product, from the
production and use of materials to disposal.

51
ORGANIZATION AND DECOMPOSITION IN PRODUCT DESIGN:
The phase of development process planning consists of the decomposition,
planning, and distribution of all the activities, resources, and information involved in
the entire process under consideration of the product.

52
DESIGN FOR X (DFX) AND DESIGN CENTERED DEVELOPMENT MODEL
Here X stands for different properties of the product, characterizing it in relation to one or
more phases of its life cycle. Generally, DFX is an approach to product design expressly
directed at maximizing the fundamentals demanded of the product (functionality and
performance, manufacturability, quality, reliability, serviceability, safety, user friendliness,
environmental friendliness, short time to market) and, at the same time, at minimizing costs.

53

54

62
In relation to the end-of-life phase:
Design for Product Retirement/Recovery—Design directed at the planning of disposal and
recovery strategies at the end of the product’s useful life.
Example:

63
STRATEGIES FOR RECOVERY AT THE END OF LIFE, RECYCLING IN
PRODUCT DESIGN:

64
PRODUCT DESIGN:
End of life Strategies and recovery options

65
PRODUCT DESIGN:
Tree diagram for the analysis of disassembly depth
The specific determinant factors for each of end of life strategy are
 Reuse
 Remanufacturing
 Recycling

82
MODULE 3
PRODUCT DEVELOPMENT
New Product Development, Structuring new product development, building
decision support system, Estimating market opportunities for new product, new product
financial control, implementing new product development, market entry decision,
launching and tracking new product program. Concept of redesign of product.
NEW PRODUCT DEVELOPMENT:
In order to stay successful in the face of maturing products, companies have to obtain
new ones by a carefully executed new product development process. But they face a
problem: although they must develop new products, the odds weigh heavily against
success. Of thousands of products entering the process, only a handful reaches the
market. Therefore, it is of crucial importance to understand consumers, markets, and
competitors in order to develop products that deliver superior value to customers.

New product
A product is anything that can be offered to a market to satisfy needs and
wants.
A New product is any product which is perceived by the customer as being
new.
New product Categories…….
1:New to the world.
2:New to the product lines.
3:Additions to the existing product line.
4:Improvements & revisions of existing products.
5:Repositioning.
6:Cost reductions. 3

New Product development Process
New Product Development is the development of original products, product
improvements, product modifications, and new brands through the firm’s own
R & D efforts. This process consist of following steps.
1. Idea Generation.
2. Idea Screening.
3. Concept Development & Testing.
4. Marketing Strategy Development.
5. Business Analysis.
6. Product Development.
7. Market Testing.
8. Commercialization. 4

1.Idea Generation .
Idea generation is continuous, systematic search for new product
opportunities.
Ideas form using creativity generating techniques and generated through
firm’s Internal Sources & external Sources.
8
5

2.Idea Screening.
8
6
Filtering the ideas to pick out good ones & dropping the poor ones.
It involves a preliminary elimination process in which a large number of
product ideas are screened in terms of the organization’s objectives, policies,
technical feasibility, and financial viability.
Total ideas are categories into three group. They are, promising ideas,
marginal ideas and rejected ideas.
In screening ideas, the companies normally face 2 serious errors & they must
try to avoid these mistakes.
1. DROP ERROR 2. GO ERROR

3. Concept Development & Testing.
Here, the Product Idea is converted into product concept.
❖Product Ideas means Possible product that company may offer to the market.
❖A product concept is a detailed version of the idea stated in meaningful consumer terms
When developing product concept following criteria should be consider.
Who will use the product.
What primary benefit should this product provide. When will this product be consumed.
Concept Testing means presenting the product concept to target
consumers, physically or symbolically, and getting their rea7 ctions.

4.Marketing Strategy Development.
After concept testing, for concepts that qualify a preliminary marketing strategy
is created to introduce new product into market.
88

5.Business Analysis.
89
❑ This stage will decide whether from financial as well as marketing point of
view, the project is beneficial or not.
In Business Analysis ,
Estimate likely selling price based upon competition and customer feedback.
Estimate sales volume based upon size of market.
Estimate profitability and break-even point.
❑ If above are match with the company's
objectives, then the new product concept moves to
product development stage.

6.Product Development.
 Up to now, the product has existed only as a word
description, a drawing.
 The company will now determine whether the
product idea can translate into a technically and
commercially feasible product.
Produce a
physical prototype
Test the
product
Conduct focus
group customer
Make
adjustment
90

7. Market Testing.
Now the product is ready to be branded with a name, logo, and packaging
and go into a preliminary market testing.
Marketing Testing involves placing a product for sale in one or more
selected areas and observing its actual performance under the proposed
marketing plan.
Methods for market testing:
1. Sales wave research.
2. Simulated test marketing.
3. Controlled testing marketing.
4. Test markets. 11

8.Commercialization.
After successful market testing, new product comes to commercialisation
stage.
During this stage, production of new product on a commercial basis is rapidly
built up and implementing a total marketing plan.
For formally launching a New Product, the following decisions to be taken:
A)When to launch (Timing)
B)Where to launch (Geographic Strategy)
C)To Whom (Target-Market Prospects)
D)How to launch (Introductory Market Strategy)
12

Every year millions of rupees are being spent on R&D for new products
development. Such huge investment is necessary as new products are the only
means of survival of a firm.
Product development process include ; Idea Generation, Idea Screening,
Concept Development & Testing, Marketing Strategy Development, Business
Analysis, Product Development, Market Testing, Commercialization.
New product development provides a number of advantages to the
enterprise.
❖ To produce goods & services with best quality.
❖ It helps in providing maximum customer satisfaction.
❖ To replace declining product and take advantage of new technology.
❖ To maintain/increase market share with competitive advantages.
❖ To fill gap in the market.
13

13
STRUCTURING NEW PRODUCT DEVELOPMENT:
Structuring the new product development process is the standardization and formalization using several approaches
with special emphasis on its early stages. Few of the approaches are traditional stage – gate model, Interdisciplinary
view of concept development, and technology stage – gate models.
1. Traditional stage – gate model

13
2. Interdisciplinary view of concept development
Process model by Ulrich – stressing interdisciplinary view

13
3. Technology stage – gate model

13
A decision support system (DSS) is an information system that supports business or
organizational decision-making activities. DSSs serve the management, operations and
planning levels of an organization (usually mid and higher management) and help people
make decisions about problems that may be rapidly changing and not easily specified in
advance—i.e. unstructured and semi-structured decision problems.

13
According to the mode of assistance, has been created by Daniel Power is as follows:
1.A communication-driven DSS 2. A data-driven DSS 3. A document-driven DSS
4. A knowledge-driven DSS 5. A model-driven DSS
The Early Framework of Decision Support System consists of four phases:
Intelligence – Searching for conditions that call for decision;
Design – Developing and analyzing possible alternative actions of solution;
Choice – Selecting a course of action among those;
Implementation – Adopting the selected course of action in decision situation.

13
ESTIMATING MARKET OPPORTUNITIES
The market study depends on the type of industry and their competitors. Many
viewpoints have been in practice but it could be generalized and understood as
follows

13
A four-step approach to skills thorough and grounded estimates of market opportunities
and to justify the assumptions in their respective industry’s estimates.
Step 1: Combine top-down and bottom-up research
Step 2: Shift focus from sizing the global market to defining the addressable market
Step 3: Refine available market estimate into total serviceable markets
Step 4: Focus on actual financial impacts
With the same context as discussed above, the estimation of market opportunities can also
be understood as five step process as follows
1.Research your customers and competition
2.Get a high-level view of the market
3.Explore adjacent opportunities
4.Understand the business environment factors
5.Find the market research you need fast

13
NEW PRODUCT FINANCIAL CONTROL

13
The financial management of new product design and development (NPD&D) uncertainties reflects the
transformational changes that occurred in the last decade. These changes are still on-going in the technology and
management of the NPD&D process, in the nature of products and services, and in competitive and NPD&D
strategies. The main question addressed by this research is, ‘How is management accounting practice responding to
these changes in the NPD&D process and strategy?’
Most companies have well-defined phases, relating to the definition, design, development and delivery of new
products and services.
The Balanced Targets Book (BTB) for the project supports and reflects the parallel development approach. The BTB
is agreed, usually after multiple top-down-bottom-up iterations, by all project participants in stage four (project
feasibility) of the early strategy and concept definition phase.

13
Concurrent financial management in new product development

13
MARKET ENTRY DECISION
When an organization has made a decision to enter an overseas market, there are a
variety of options open to it. These options vary with cost, risk and the degree of control
which can be exercised over them.
The simplest form of entry strategy is exporting using either a direct or indirect method
such as an agent, in the case of the former, or countertrade, in the case of the latter.
Having decided on the form of export strategy, decisions have to be made on the specific
channels. Many agricultural products of a raw or commodity nature use agents,
distributors or involve Government, whereas processed materials, whilst not excluding
these, rely more heavily on more sophisticated forms of access.

13
Few of the considerations that leads to decision of market entry for a product is as
follows
1. Licensing
2. Greenfield project
3. Franchising
4. A business alliance
5. A Joint Venture (JV)
6. Outsourcing
MARKET ENTRY DECISION

13
LAUNCHING AND TRACKING OF NEW PRODUCT
Launching: New tactics are required to get the notice you deserve. So here are some
steps for a successful launch in these changeable times:
1.Start early
2.Make the product or service available to important influencers
3.Brief industry analysts.
4.Seed the social space with “leaks.”
5.Don’t expect a “big bang” release
6.Keep the release rolling.
7.Do something unusual
8.Get partners involved.
9.Make it easy for people to learn more about your product
10.Ignore the elements of the launch that do not drive business.

13
Tracking: Once a new product is launched, the use of various data collection procedures and
forecasting models to track performance, modify, and otherwise control the new product can lead
to product and program improvements or to a comfortable decision to terminate the product.
One issue related to how much effort an organization is willing to invest in post-launch tracking is
problem diagnosis.
Finding early launch marketing problems may lead not only to quick modifications, but also to the
next-generation new product.
The ultimate value of new product development may be the learning it makes possible learning
how to adjust the marketing program to consumer needs; learning how to educate the potential
buyer on the benefits of the new product; learning why the product won't succeed in the market
and why it should be abandoned now; learning that complete withdrawal is not necessary, but that
a next-generation product can overcome the diagnosed difficulties; and, perhaps most importantly,
learning to have the patience to learn.

13
IMPLEMENTING NEW PRODUCT DEVELOPMENT
New product development process is a multi-stage process. Despite of many evidence of
its success, many product development managers avoid to establish a policy for new
product development process. Their hesitation often arises from two reasons: having
feared that a defined strategy may lose a chance to win and they are not able to relay on
formulation a new product development process.
Here we proposed few guidelines for new product development process. As new products
are in need to sustain with continuous success in these competitive market, the new
product development process strategy must exist and must be in function to avoid time
waste, effort, and money as well as employee uncertainty and ignorance to work.
Even people know about the importance and benefits of new product development process
strategy, in many cases so many firms are not giving importance to them it’s mainly
because of two reasons:
•Management is not clear about what such statements should cover?
•Management fears that restrictions may disappoint some useful or creative innovation

13
Generally new product development process focused mainly on two broad areas; to
develop new uses for existing products, and to develop highly profitable and reliable
products for existing and potential customers.
To develop a stream of new products we need to know about the issues and challenges will
be faced; mind-sets, knowledge, problem solving mechanisms, specialized skills,
processes, and management philosophies are needed.
The capability to manage new product development process requires a group of abilities
which are as follows
Able to integrate between different functional perspectives.
Able to interpret the needs of customers.
Able to forecast technological improvements.
Must be Capable of selecting and prioritizing between projects, etc.

13
MODULE:4
TECHNOLOGY FORECASTING
Technological change, Methods of technology forecasting, Relevance trees,
Morphological methods, Flow diagram and combining forecast of technologies,
Integration of technological product innovation and product development in business
processes within enterprises, methods and tools in the innovation process according to
the situation.

145
Module-5
PRODUCT BUILDING AND STRUCTURES
Virtual product development tools for components, machines, and manufacturing
plants: 3D CAD systems, digital mock-up, model building, model analysis,
production (process) planning, and product data technology, Product structures:
Variant management, product configuration, material master data, product description
data, Data models, Life cycles of individual items, status of items.

Need for CAD/CAM
162
⚫ Design and manufacturing forms the core of engineering.
⚫ To remain competitive in global economy
⚫ New products with enhanced features at competitive
costs
⚫ Short lead times and short product lives
⚫ Reduction in product life cycle
⚫ Mass customization – Customer specific changes to
satisfy diverse requirements – High flexibility in the
manufacturing system
⚫ Reduction in manufacturing cost and delivery time
⚫ Increasing consumer awareness about quality

Developments in computers
163
⚫ Availability of computers with enhanced
memory and faster computing speed at
affordable prices
⚫ Development of graphics workstations with
powerful graphic facilities
⚫ Development of interactive graphics and
analysis software - Easy to use and powerful

Computer Aided Design
164
⚫ Use of computer systems to assist in creation,
modification, analysis and optimization of a
design.
⚫ Computer assistance while a designer
converts his or her ideas and knowledge into
a mathematical and graphical model
represented in a computer.

Computer Aided Manufacturing
165
⚫ Use of computers systems to plan, manage and
control the operations of a manufacturing plant
through either direct or indirect computer interface
with plant’s production resources.
1. Computer monitoring and control - Computer is
connected directly to the manufacturing process
e.g. NC/CNC machines, Rapid prototyping etc.
2. Manufacturing support applications – Use of
computers in process planning, scheduling, shop
floor control, work study, tool design, quality control
etc.

CAD-CAM and AUTOMATION
166
⚫
1.
2.
3.
4.
⚫
⚫
⚫ Automation is technology concerned with the application of complex
mechanical, electrical, electronic , hydraulic, pneumatic or computer
based system in the operation and control of production.
Types of manufacturing
Continuous process industries – Sugar industry, chemical industry etc. Mass
production industries – Automobiles, Consumer goods etc.
Batch production industries – machines, aircrafts etc.
Job production industries – Prototypes, heat exchangers , chemical
reactors etc.
Automation is focused on reducing unit production time and to some extent
time associated with planning and setting up for each batch of
production.
CAD/CAM is focused on reducing time for designing the product and all
other activities which are accomplished once for each product and time
associated with planning and setting up for each batch of production

CAD/CAM
167
⚫ CAD/CAM involves all the processes of
conceptualizing , designing, analyzing,
prototyping and actual manufacturing with
computer’s assistance.
⚫ Latest techniques of geometric modeling
(Feature base or parametric modeling) and
manufacturing like rapid prototyping (RP)
have bridged the gap between product
conceptualization and product realization.

CAD/CAM
168
⚫ CAD/CAM - Key to improve manufacturing productivity
and the best approach for meeting the critical design
requirements.
⚫ CAD/CAM software provides engineers with the tools
needed to perform their technical jobs efficiently and
free them from the tedious and time-consuming tasks
that require little or no technical expertise.
⚫ CAD/CAM software speeds the design process,
therefore increasing productivity, innovation and
creativity of designers.
⚫ CAD/CAM is the only mean to meet the new
technological design and production requirements of
increased accuracy and uniformity

Product life cycle
171
⚫ 2 main process: Design + Manufacturing
⚫ 2 sub-process of design: Synthesis + Analysis
⚫ The end goal of the synthesis is
a conceptual design of the prospective product
⚫ The analysis evaluate the
performance of the expected product
⚫ Computer prototypes: Less expensive and faster
to generate

Product life cycle
172
⚫ Manufacturing process begins with the
 process planning.
⚫ Process planning is the backbone of the
manufacturing process.
⚫ The outcome of the process planning is a production
plan, tools procurement, material order, and machine
programming.

Definition of CAD tools based onimplementation
173

Definition of CAM tools based onimplementation
174

Computer Aided Engineering
175
⚫ CAE is the technology concerned with the use of computer
systems to analyze CAD geometry, allowing the designer to
simulate and study how the product will behave.
⚫ Mass property calculations (mass, centre of gravity, moment of
inertia etc.)
⚫ Mechanical assembly testing (dimensional checking, interference
checking etc.)
⚫ Kinematic analysis and animation (movement visualization,
simulation)
⚫ FEM analysis (Linear static analysis, dynamic analysis, seismic
analysis, non-linear static analysis)
⚫ Fluid analysis (CFD)
⚫ Thermal analysis
⚫ Vibration analysis

176
Digital Mockup is enriched by all the activities that contribute to
describing the product. The product design engineers, the
manufacturing engineers, and the support engineers work together
to create and manage the DMU.

178
Table 1: The activities within product structure modeling
Activity Sub-Activity Description
Define product
components
Identify parts
Identifying parts is concerned with the so-called bill of materials.
Thus the materials are described for each product. Output of this
activity is a list of parts for each product.
Specify subassemblies Several parts mulled together are described as a subassembly. But can
also be an atomic component, which is part of the whole assembly.
Configure product
The assembly is constructed of the parts and subassemblies. Output
of this activity consists of the assembly.
Define product
assortment
Specify variants Variants of the items (parts, subassemblies, assemblies) are
defined and specified.
Specify alternatives Alternatives of the items (parts, subassemblies, assemblies) are
defined and specified
Implement revision
If items (parts, subassemblies, assemblies) change they are
implemented and the process of modeling the product structure is
iterated, in order to ensure consistency.
Product
structuring
Define relationships between items The relationships between items are handled, which are eventually
the actual structure of a product.
Create master
structure -
Summation of the relationships of the items (parts, subassemblies,
assemblies) resembles in a master structure.
Documenting
Link product definition Documents that describe the parts are pointed out from the product
structure. This allows the user to easily find a document of the
correct revision.
Define product
structure views
Specify needed views The necessary views, which are important for the product, are
specified.
Create AD specific views Views on the master structure are created for each Activity Domain
(AD).

181
PRODUCT STRUCTURES – VARIENT MANAGEMENT AND PRODUCT
CONFIGURATION
The general consumer trend is that manufacturers are required to offer many
variants of the same product (variant products) to meet the increasingly diverse
needs and desires of their customers. Variant Configuration supports collecting,
advertising, ordering and manufacturing complex products that are specifically
tailored to customers' needs.
For example, when purchasing an office chair they can contribute their own wishes
and optimally configure the chair according to their needs.

182
MATERIAL MASTER DATA (MMD)
The material master database (often referred to simply as the "material master",
comprising all the individual material master records stored in the system) contains
descriptions of all materials that an enterprise buys, produces, and keeps in stock.
It is the central repository of information on materials (such as inventory levels) for the
enterprise.
Descriptions of the individual materials used in an enterprise are stored in material
master records. The following list shows some types of information a material master
record contains and provides examples of each:
 Accounting: Valuation and costing/price calculation information. Examples: Standard
price, past and future price, and current valuation.
 Materials planning and control: Information for material requirements planning
(MRP) and consumption-based planning/inventory control. Examples: Safety stock
level, planned delivery time, and reorder level for a material.

183
 Purchasing: Data provided by Purchasing for a material. Examples: Purchasing
group (group of buyers) responsible for a material, over- and under delivery
tolerances, and the order unit.
 Engineering: Engineering and design data on a material. Examples: CAD drawings,
basic dimensions, and design specifications.
 Storage: Information relating to the storage/warehousing of a material. Examples:
unit of issue, storage conditions, and packaging dimensions.
 Forecasting: Information for predicting material requirements. Examples: How the
material is procured, forecasting period, and past consumption/usage
 Sales and distribution: Information for sales orders and pricing. Examples: Sales
price, minimum order quantity, and the name of the sales department responsible for
a certain material.

Product life cycle management

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Product life cycle management

Similar to Product life cycle management (20)

Recently uploaded

Recently uploaded (20)

Product life cycle management