UNIT : 1

2 Marks

1. Abbreviate PESTEL

PESTLE Analysis used to consider Political, Economic, Social, Technological, Legal and
Environmental issues.

2. Define strategic planning

Strategic planning is an organization's process of defining its high level plan to achieve
one or more goals under conditions of uncertainty, or direction, and making decisions on
allocating its resources to pursue this strategy.

3. What is product definition?

Product definition is a method of understanding the need for the product, it comprises
of customer, company and quality function deployment (QFD).

4. Write any two economic factors affecting product development

a. Extremely dynamic market
b. Income levels
5. Write any two types of product development
a. Enhancement product improvement
b. New product platform
6. Abbreviate DMADV

Define, Measure, Analyze, Design & Verify

7. Abbreviate DMAIC

Define, Measure, Analyze, Improve & Control

8. Define PLM

Product lifecycle management (PLM) is the process of managing the entire lifecycle of a
product from its conception, through design and manufacture, to service and disposal.

9. Define verification and validation

Verification and Validation are independent procedures that are used together for
checking that a product, service, or system meets requirements and specifications and that it
fulfills its intended purpose.
 10. Write any two political factors affecting product development
a. Company policies
b. Employment laws
11. Write any two social factors affecting product development
a. Behavioral trend
b. Health trend
12. Write any two technical factors affecting product development
a. Technology
b. Applications
13. Write any two legal factors affecting product development
a. Regulations
b. Intellectual property trends
14. List out the product development methodologies.
a. DMADV-Define, Measure, Analyze, Design & Verify
b. DMAIC-Define, Measure, Analyze, Improve & Control
15. Which product methodology to be used at starting of new product development?

DMADV-Define, Measure, Analyze, Design & Verify, this methodology is used because of
its gate and verification at every stage of product development.

16. Which technique is commonly used for risk management?

a. FMEA-Failure mode effective analysis

17. What is NPD?

New product development (NPD) is a process to bring a product, which is completely

new to the market. The NPD process involves market research and market analysis followed by
generation of idea/s, etc.

18. Draw product life cycle curve

 19. Define VOC
Voice of the customer (VOC) is a term used to describe the in-depth process of capturing
a customer's expectations, preferences and aversions. Voice of the Customer is a market
research technique that produces a detailed set of customer wants and needs.

20. Write any two components of PLM

a. Change management
b. Process management

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6 marks and 10 Marks (Write as per the requirement of the question)

1. Explain PESTLE briefly with an example.

Political factors:
The stability and structure of a countrys government gives a basis for interpreting future
changes in the
regions political environment. Policy at the local or federal level can differ dramatically. These
refer to
government policy such as the degree of intervention in the economy. The analyses of the
factors give rise to the following questions
What goods and services does a government want to provide?
To what extent does it believe in subsidizing firms?
What are its priorities in terms of business support?
Political decisions can impact on many vital areas for business such as the education of the
workforce, the health of the nation and the quality of the infrastructure of the economy such as
the road and rail system.
Some of these Political factors include
Bureaucracy
Corruption
Environmental Law
Freedom of the Press
Government Type
Government Stability
labour Law
Political Change

Economic factors:
Economic indicators such as GDP, GNP, interest rate, consumer sentiment and others provide
the way to the business people to understand the risks and opportunities available within the
region.
These include interest rates, taxation changes, economic growth, inflation and exchange rates.
For example:
Raise of price in terms of foreign money makes exporting more difficult
Higher wage demands from employees and cost raise due to inflation
Demand for a firm's products is boosted by higher national income growth.
Some of the economic factors include
Business cycles
GNP trends (Gross National product)
GDP(Gross domestic Product)
Interest rates
Inflation
Unemployment
Disposable income
Globalization
Government private sector relationships

Social factors:
In an organization, the top management people have strict definitions or policies between
professional
positions and responsibilities within a company. People with lower hierarchy are considered as
democratic.
Individualism indicates their members to make decisions independently and valuing their
independence.
Masculinity and femininity compare the cultures emphasis on the quantity versus the quality
of life.
Long term orientation reveals the cultures focus on the distant future rather than the short
term
orientation view of stressing the importance of the immediate present and past.

Changes in social trends can impact on the demand for a firm's products and the availability and
willingness of individuals to work. Attitudes towards health, career and environmental issues
should be considered. For example,
In the UK, the population has been ageing. This has increased the costs for firms who are
committed to pension payments for their employees because their staffs are living longer. Ads
have started to recruit older employees to tap into this growing labour pool for some firms.
The ageing population also has impact on demand: For example,
Demand for sheltered accommodation and medicines have increased whereas demand for toys
is falling.
Some of the social factors include
Population demographics
Income distribution
Social mobility
Lifestyle changes
Attitudes to work and leisure
 Consumerism
Levels of education and training

Technological factors:
The level of technological advancement in a region can positively or negatively affect the
opportunities
available for a business. Consumers react to new technologies in different ways. The product
diffusion curve, that segments technology consumers by their risk tolerance levels, is one tool
that can be used to determine the likelihood of a product being adopted by the mainstream
population. It segments the groups into five groups: innovators, early adopters, early majority,
late majority, and laggards. New technologies create new products and new processes like MP3
players, computer games, online gambling and high definition TVs are all created by
technological advances. Online shopping, bar coding and computer aided design are all
improvements of better technology. Technology can reduce costs, improve quality and lead to
innovation. These developments can benefit consumers as well as the organizations providing
the products.
Some of the technological factors include
New discoveries
ICT developments
Speed of technology transfer
Rates of obsolescence
Research and Development
Patents and licenses

Environmental factors:
Environmental analysis involves aggregating and analysing weather patterns and climate cycles.
Environments vary drastically in different areas of the globe depending on the ecosystem of the
region.
A rainy season in a region can affect the transportation systems which are active. Sometimes
roadways and train lines are restricted in order to minimize damages to vehicles from
mudslides, falling rocks or flooding. In developing countries, these cyclic weather patterns are
more common where transportation infrastructure has to be modernized. Environmental
factors include the weather and climate change. Changes in temperature can impact on many
industries including farming, tourism and insurance. This external factor is becoming a
significant issue for firms to consider because of major climate changes occurring due to global
warming and with greater environmental awareness. The growing desire to protect the
environment is having an impact on many industries such as the travel and transportation
industries (for example, more taxes being placed on air travel and the success of hybrid cars)
and the general move towards more environmentally friendly products and processes is
affecting demand patterns and creating business opportunities. Some of the Environmental
factors include
Environmental impact
Environmental legislation
Energy consumption
 Waste disposal
Contamination
Ecological Consequences
Infrastructure
Cyclic Weather

Legal factors:
In order to ensure that all laws and regulations are followed in an organization, it is better to
consult an legal representative when doing business. Legal environments change between the
district, city, state/province and national levels. Complexities within certain industries can have
a strong influence on the ease of doing business, complicating administrative, financial, and
regulatory processes, among others. These are related to the legal environment in which firms
operate.
In recent years in the UK there have been many significant legal changes that have affected
firms' behaviour.
For example,
The introduction of age discrimination and disability discrimination legislation,
An increase in the minimum wage and greater requirements for firms to recycle.
Some of the laws or legal factors followed in an organization are as follows
Antitrust Law
Consumer Law
Discrimination Law
Employment Law
Health and Safety Laws
Industry/Domain specific laws and certifications
Intellectual Property Rights (IPR)

Different categories of law include:

Consumer laws; these are designed to protect customers against unfair practices such as
misleading
descriptions of the product
Competition laws; these are aimed at protecting small firms against bullying by larger firms
and
ensuring customers are not exploited by firms with monopoly power
Employment laws; these cover areas such as redundancy, dismissal, working hours and
minimum
wages. They aim to protect employees against the abuse of power by managers
Health and safety legislation; these laws are aimed at ensuring the workplace is as safe as is
reasonably
practical. They cover issues such as training, reporting accidents and the appropriate provision
of safety
equipment

Patent Litigation between Apple and Samsung:

Apple Inc. v. Samsung Electronics Co., Ltd. was the first of a series of ongoing lawsuits between
Apple Inc. and Samsung Electronics regarding the design of smartphones and tablet computers;
between them, the companies made more than half of smartphones sold worldwide as of July
2012. In the spring of 2011, Apple began litigating against Samsung in patent infringement suits,
while Apple and Motorola Mobility were already engaged in a patent war on several fronts.
Apple's multinational litigation over technology patents became known as part of the mobile
device "smartphone patent wars": extensive litigation in fierce competition in the global market
for consumer mobile communications. By August 2011, Apple and Samsung were litigating 19
ongoing cases in nine countries; by October, the legal disputes expanded to ten countries.By
July 2012, the two companies were still embroiled in more than 50 lawsuits around the globe,
with billions of dollars in damages claimed between them. While Apple won a ruling in its favor
in the U.S., Samsung won rulings in South Korea, Japan, and the UK. On June 4, 2013, Samsung
won a limited ban from the U.S. International Trade Commission on sales of certain Apple
products after the commission found Apple had violated a Samsung patent, but this was vetoed
by U.S. Trade Representative Michael Froman.

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2. Brief QFD and explain different phases involved

Quality Function Deployment (QFD):

To design a product well, a design teams needs to know what it is they are designing, and what
the end-users will expect from it. Quality Function Deployment is a systematic approach to
design based on a close awareness of customer desires, coupled with the integration of
corporate functional groups. It consists in translating customer desires (for example, the ease of
writing for a pen) into design characteristics (pen ink viscosity, pressure on ball-point) for each
stage of the product development (Rosenthal, 1992). Ultimately the goal of QFD is to translate
often subjective quality criteria into objective ones that can be quantified and measured and
which can then be used to design and manufacture the product. It is a complimentary method
for determining how and where priorities are to be assigned in product development. The
intent is to employ objective procedures in increasing detail throughout the development of
the product(Reilly, 1999).
Quality Function Deployment was developed by Yoji Akao in Japan in 1966. By 1972 the power
of the approach had been well demonstrated at the Mitsubishi Heavy Industries Kobe Shipyard
(Sullivan, 1986) and
in 1978 the first book on the subject was published in Japanese and then later translated into
English in 1994

To prioritize spoken and unspoken customer wants and needs.

To translate these needs into technical characteristics and specifications.
To build and deliver a quality product or service by focusing everybody toward customer
satisfaction.
Since its introduction, Quality Function Deployment has helped to transform the way many
companies:
Plan new products
Design product requirements
Determine process characteristics
Control the manufacturing process
Document already existing product specifications

QFD uses some principles from Concurrent Engineering in that cross-functional teams are
involved in all phases of product development. Each of the four phases in a QFD process uses a
matrix to translate customer requirements from initial planning stages through production
control (Becker Associates Inc, 2000). Each phase, or matrix, represents a more specific aspect
of the product's requirements. Relationships between elements are evaluated for each phase.
Only the most important aspects from each phase are deployed into the next matrix. The four
phases of QFD are as follows

Phase 1, Product Planning:

Phase 1 is to build the House of Quality. Led by the marketing department, Phase 1, or product
planning, is also called The House of Quality. Many organizations only get through this phase of
a QFD process. Phase 1 documents customer requirements, warranty data, competitive
opportunities, product measurements, competing product measures, and the technical ability
of the organization to meet each customer requirement. Getting good data from the customer
in Phase 1 is critical to the success of the entire QFD process.

Phase 2, Product Design:

This phase 2 is led by the engineering department. Product design requires creativity and
innovative team ideas. Product concepts are created during this phase and part specifications
are documented. Parts that are determined to be most important to meeting customer needs
are then deployed into process planning, or Phase 3.

Phase 3, Process Planning:

Process planning comes next and is led by manufacturing engineering. During process planning,
manufacturing processes are flowcharted and process parameters (or target values) are
documented.

Phase 4, Process Control:

And finally, in production planning, performance indicators are created to monitor the
production process, maintenance schedules, and skills training for operators. Also, in this phase
decisions are made as to which process poses the most risk and controls are put in place to
prevent failures. The quality assurance department in concert with manufacturing leads Phase
4.

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 3. Write about product definition and process involved in defining the product

A product can be described as an object which the producer or supplier offers to potential
customer in exchange of something (conventionally money which is exchangeable as store of
value). The product may be goods or service and this can be the next breakthrough computer
chip, or a new holiday package built together by a travel agent.In earlier days the exchange
system was known as barter system. But in any case in order to exchange to occur there must
be adequate demand for the product. With the existence of demand, the producers get an
opportunity to supply the required object/ product to the market and potential markets can be
developed where buyers and suppliers can do business and build a mutually satisfying
relationship.But while launching any new product to the market, main point to be noted is that
the product will be a new one and hence it is often risky. In case of large scale business, it is
practically impossible that the producer and the buyer can come into direct physical contact. In
order to facilitate the exchange of the goods, elaborated channels of distribution are
required. (Here, supply chain comes into picture). The above statements are not applicable to all
kinds of business e.g. in the case of service providers where the seller needs to make direct
exchange with the buyer.
One should carefully note that the value of the product does not depend on the extent of
contact between the buyer and producer. The value possessed by the product will always
depend on the extent of willingness of consumers to exchange. This is the reason that it is said
that supply always depends on demand. During the second half of the 20th century, the
marketing strategy had changed. The marketing technique reflected the potential for excess
supply in the industrialized economies where technological advancements had created scope
for productivity gains. Now, the capability of excess supply will reduce the value of product
because the unconsumed supply will become worthless. Hence, producers are not certain
about the demand for their product.

this gives a relation between

buyers, producers and the intermediate processes and techniques. Product definition
comprises of customer, company and quality function deployment (QFD). This also includes the
definition process which in turn may include QFD. The quality function deployment is concern
with the customers and thus links up customers with the companies. The company in turn
determines the definition process for the product.
Defining product by nature of demand
All products begin from core benefit and products can be represented as concentric circles.

Core benefit: It represents the basic theme of any product. In other words it represents the
main service or benefits which are derived from the consumers use.
Generic product: It is the basic version of a product i.e. these products do not have various
features which classify the product. These features enable consumers to receive desired
benefits.
Expected product: These products contain properties or characteristics which are usually
expected and accepted by buyers.
Augmented product: These products contain some additional benefits and services than the
expected ones. Competitor producers compile each other on the basis of these additional
benefits only.
Potential products: These products have undergone all possible augmentations with course of
time and increase in demands. The potential product is the product which just does not meet
all the consumers needs but also delight the consumers.
Classification of product
For producers it is very important to understand demand of their products. And to understand
the demand, it is essential to classify the products. Products can basically classified into
following three categories
Consumer products:
Consumer product refers to any article, or component parts which are produced or distributed
for sale to a consumer to be used in or around residence, school, in recreation, or for the
personal use, consumption or enjoyment of a consumer. But consumer product does not
include any article which is not customarily produced or distributed for sale to a customer for
its use or consumption, or enjoyment. Hence, a customer product can be any tangible
commodity that is produced and subsequently consumed by the consumer, to
satisfy their needs and these are ultimately consumed rather than used in the production of
another good. Examples of such products are weight loss pills, digital cameras, iPods, laptops,
smart cell phones, GPS navigation devices, beauty products, video games, DVD players, and
cable television.
Industrial products:
Industrial product refers to any item that is used in manufacturing or industry. These are the
goods produced in a factory with the help of machinery and technology. These are usually high
cost products. These are used for production of consumer products example various equipment
and industrial set ups. Examples of the products in this section vary according to the type of
product being used to manufacture. Some common examples included in this section of
products are carts or dollies, tapes or adhesives, ladders, lifts, storage lockers, cabinets,
scaffolding, personal protection equipment, office supplies, and light fixtures,
or tools.
Specialty products:
Specialty goods represent the third category of product classification which, are unique in
nature. These products are the unusual and luxurious items available in the market; i.e. these
products are the products for which buyers are habitual and may make special efforts for
purchase of these products. The specialty products are purchased with a predetermined
pattern in mind; i.e. a customer will go for purchasing a product of only a specific brand. As an
example, a customer will prefer to visit a particular store just because the product of his/ her
liking is available in that very store. Here the price is almost never a determining factor in
choosing between the products. Sellers of specialty goods also need not be conveniently
located, because buyers will seek them out, even if it involves considerable effort. Some
products may be considered shopping goods by some buyers, and specialty products by other
buyers. Example of specialty products are house, holiday package etc.

Methods of defining product are

Voice of the customer
Voice of the customer (VOC) is a term used to describe the in-depth process of capturing a
customer's expectations, preferences and aversions. Specifically, the Voice of the Customer is a
market research technique that produces a detailed set of customer wants and needs,
organized into a hierarchical structure, and then prioritized in terms of relative importance and
satisfaction with current alternatives. Voice of the Customer studies typically consist of both
qualitative and quantitative research steps. They are generally conducted at the start of any
new product, process, or service design initiative in order to better understand the customer's
wants and needs, and as the key input for new product definition and there are many possible
ways to gather the information
focus groups,
individual interviews,
contextual inquiry,
ethnographic techniques, etc.

Quality function deployment

Ultimately the goal of QFD is to translate often subjective quality criteria into objective ones
that can be quantified and measured and which can then be used to design and manufacture
the product. It is a complimentary method for determining how and where priorities are to be
assigned in product development. The intent is to employ objective procedures in increasing
detail throughout the development of the product

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4. Explain product development methodologies

Every client and project is different and has specific constraints

that should be analyzed to determine an appropriate methodology or combination of
methodologies to utilize. The best approach is to find the methodology that fits the clients'
environment and will guarantee project success. A too rigid of a process (or not enough) will
not provide the desired product on time or within budget. The two main principle approaches
behind product development methodologies are: DMADV and
DMAIC approaches.
DMADV approach involves the following steps:
 Define: Define the project goals and customer (internal & external) deliverables.
Measure: Measure and determine the customer needs and satisfaction.
Analyze: Analyze the process options prior to customer needs.
Design: Design (in detail) the process to meet customer needs.
Verify: Verify the design performance and ability to meet customer.
DMAIC approach involves the following steps:
Define: Define the project goals and customer (internal & external) deliverables.
Measure: Measure the process to determine current performance.
Analyze: Analyze and determine the root causes of the defects.
Improve: Improve the process by eliminating defects.
Control: Control future process performance.
Whenever an incremental change to the current process is good enough we use the DMAIC
approach, but when the current process needs to be replaced we use the DMADV approach.
The above two approaches have led to the development of so many methodologies. Most of
the methods are modifications of the Waterfall methodology.
1) Waterfall methodology: The Waterfall methodology is a sequential development process,
where progress flows steadily toward the conclusion (like a waterfall) through the phases of a
project. This involves fully documenting a project in advance, including the user interface, user
stories, and all the property variations and outcomes. This methodology is resistant to change.
Any change is expensive because most of the time and effort has been spent early on in the
design and analysis phases. This is a major drawback of this methodology. So the practical
outcome may be quite different than the prediction.

2) Agile methodology: This is an iterative approach to product development that is performed

in a collaborative environment by self-organizing teams. The methodology produces high-
quality software in a cost-effective and timely manner to meet stakeholders changing needs. In
this method every product release begins with a list called a back log which consists of a list
of prioritized requirements i.e. a list of work to be done in order of importance. By this
methodology the team will always adjust the scope of work to ensure that the most importance
work are completed first. The backlog is a dynamic set of requirements that can
change weekly (depending on the length of your iterations). So instead of delivering the entire
back log at the end of product release we can divide the work into smaller amount of delivered
requirements, which are taken from the backlog in their order of importance. These smaller
amounts are known as iterations (or sprints). Iterations have short time frames that last from
one to four weeks, depending on the teams experience. A key element of an iteration is that,
unlike in back log, the priorities regarding which requirements should be
built do not change within the iteration (for example, during the two-week period); this list
should only change from one iteration to another. This methodology accepts that project
change is inevitable. The use of small iterations allows changes to be absorbed quickly without
inflicting significant project risk. The backlog order can adjust as business priorities evolve; with
the next iteration, the team can adapt to those priorities.
In the context of a product release, the items that are the most technically difficult (i.e., that
hold the larger risk) tend to be done in early iterations to ensure that the risk can be minimized.
This approach to mitigating risk is a key differentiator from the Waterfall methodology. Instead
of adjusting during the development process, the Waterfall methodology involves planning and
researching each task in advance.
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5. Write in detail Product Lifecycle Management

Product life cycle

The product life-cycle is a series of different stages a product goes through, beginning from its
introduction into the market and ending at its discontinuation and unavailability. These stages
are commonly represented through the sales and profit history of the product itself, although
there can be many other variables that affect the lifespan of a product line. Between the initial
growth and concluding maturity stages, the profit curve usually reaches its peak. During the
maturity phase of the life-cycle, sales volumes for an established product tend to remain
steady, or at least do not suffer from major declines, but the rate of profit drops. In most cases,
the trajectory and behavior of the product life-cycle is determined by a set of factors over
which manufacturers and marketers have little control, forcing them to react to changing
circumstances in order to keep their product development strategy viable. These external
factors include shifting consumer requirements, industry-wide technological advances, and an
evolving state of competition with a companys market rivals. The fluctuating patterns of a life-
cycle indicate that a different marketing and product development approach may be needed
for each stage of the cycle. Understanding life-cycle concepts can aid in long-term planning for
a new product, as well as raising awareness of the competitive landscape and estimating the
impact that changing conditions can have on profitability.
1) The Life-Cycle Curve
Industrial products usually follow an S-shaped life-cycle curve when sales and profits are
plotted over time. However, certain products, such as high-tech goods and commodities, may
follow a different life-cycle pattern. High-tech products often require longer development times
and higher costs, making their growth stages long and their decline stages short, while
commodities, such as steel, tend to have relatively static demand with sales that do not
appreciably decline from an absence of competition. Sales would drop, though, from an
increase in competing products. Under most life-cycle conditions, profits typically peak before
sales do, with profits reaching their peak level during the early growth stages and sales reaching
their peak in the maturity stages. Competition tends to be lower at the beginning of the life-
cycle, but as competing companies start to offer lower prices, newer services, or more
appealing promotions in the maturity phase, the initial product must be made more attractive.
This often results in comparable price drops or increased spending on advertising and
promotions, as well as greater investment in distribution and modifications to the existing
product. The initiatives
improve sales, but drive up costs and lower profit

The introductory stage

The growth stage
The Maturity stage
The decline stage
The Introductory Stage
The Introduction stage is probably most important stage in product life cycle. In fact, most
probably product fail in the introduction stages. This is the only stage where product is going to
introduce with market and with consumer or user of products. If consumers dont know about
it then consumers dont go to buy it. There are two different strategies you can use to
introduce your product to consumers. You can use either a penetration strategy or a skimming
strategy. If a penetration strategy is used then prices are set very high initially and then
gradually lowered over time. This is a good strategy to use if there are few competitors for your
product. Profits are high with this strategy but there is also a great deal of risk. If people don't
want to pay high prices you may lose out. The second pricing strategy is a skimming strategy. In
this case you set your prices very low at the beginning and then gradually increase them. This is
a good strategy to use if there are a lot of competitors who control a large portion of the
market. Profits are not a concern under this strategy. The most important thing is to get you
product known and worry about making money at a later time.
A company that introduces a product requiring a high degree of learning and expects a
relatively low rate of acceptance can focus on market development strategies to help build
consumer appeal. Conversely, products with a low learning curve and a quick route toward
acceptance may need a marketing strategy designed to offset rival products, as competition at
these levels tends to be higher.
The Growth Stage
When an industrial product enters a period of higher sales and profit growth, the marketing
plan often shifts to focus on improvements to the design and any added features or benefits
that can expand its market share. Increasing the efficiency of distribution methods can help
improve product availability by reaching more customers, and some degree of price reductions,
particularly for large-scale operations, can be introduced to make the product more appealing
for purchase. Maintaining the higher price set at the introductory stage increases the risk of
competitors entering the market due to the wider profitability margin. Similarly, without
stronger distribution efforts the product may have limited availability, which encourages rival
companies to encroach on market share.
The Maturity Stage
The maturity stage of a life-cycle is characterized by an increase in the number of market
competitors and a corresponding decline in profit growth as a percentage of sales. To
compensate for the level of saturation that occurs during this phase, the product development
strategy revolves around entering new markets, often through exports. It may also be helpful to
increase efforts to satisfy existing customers in order to preserve the customer base. Reducing
spending on marketing and production can help maintain profit margins.
The Decline Stage
In the decline stage, the competition for product pricing tends to escalate, while profits and
sales generally decrease. When working with industrial products, marketers sometime opt to
discontinue a product when it has reached this level or introduce a replacement product that
renders the previous version obsolete. Marketing and production budgets are typically scaled
back to save on costs, and resources may be shifted to newer products under development.
Product decline usually proceeds more quickly among industries that rely on rapidly changing
technologies, with newer advances periodically driving existing goods out of the market.
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6. Explain product development planning and management

Product development planning and Management

Planning and management are indispensible part of product development. Planning involves
thinking about and organizing the activities required to achieve a desired goal. It involves the
creation and maintenance of a plan. It combines forecasting of developments with the
preparation of schemes of how to react to them. A basic tool for product planning is to follow a
set of systematic steps. These steps are intended to estimate four basic aspects: the what-
tasks, the when-schedule, the where-equipment and facilities, and the how-people,
material, facility, and equipment costs. Product development management is the discipline of
planning, organizing, motivating, and controlling resources to achieve specific goals. Product
Development Planning and Management (PDPM)(figure 1.26) is an organizational lifecycle
function within a company dealing with the planning, forecasting, or marketing of a product or
products at all stages of the product lifecycle. It consists of product development and product
marketing, which are different (yet complementary) efforts. The main objectives of PDPM are
maximizing sales revenues, market share and profit margins.

Product development can be considered as a project. A project is a temporary effort designed

to produce a unique product, service or result with a defined beginning and end usually time-
constrained, and often
constrained by funding or deliverables, undertaken to meet unique goals and objectives,
typically to bring
about beneficial change or added value. The temporary nature of projects stands in contrast
with business as usual or operations, which are repetitive, permanent, or semi-permanent
functional activities to produce products or services. In practice, the management of these two
systems is often quite different, and as such requires the development of distinct technical skills
and management strategies. PDPM often serves an interdisciplinary role, bridging gaps within
the company between teams of different expertise, most notably between engineering-
oriented teams and commercially oriented teams. The various elements or tools of product
development planning and management are budgeting, scheduling, collaboration, risk
management, change management and product cost management. The primary challenge of
project management (product development in this case) is to achieve all of the project goals
and objectives while honoring the preconceived constraints or limitations. The primary
constraints are scope, time, quality and budget. The secondary challenge is to optimize the
distribution of necessary inputs and integrate them to meet pre-defined objectives. The third
challenge is to adapt with the continuous change of need in the market. All these elements
have critical roles in the integrated product development process.

1) Budgeting
A budget is a proposal of activities to be done in the future. It is a managerial tool for planning,
programming and controlling business activities. A budget is a written plan or programmers of
proposed future activities
(including estimates of sales, expenditure and production etc.) expressed in quantitative terms.
According to Dickey, a budget is written plan covering projected activities of a firm for a
defined period.
There are following characteristics of budgets:
Budget outlines the project activities
The expressions are made in quantitative terms, and in most of the budgets in financial terms,
i.e. rupee
value, and
It relates to a fixed periodically say, a day, a month, a year etc.

Types of budget:
Fixed budget
Flexible budget
Capital expenditure budget
Operating budget

2) Collaboration
Collaboration is the act of working with each other to do a task. It is a recursive or repetitive
process where two or more people or organizations work together to realize shared goals. It is
an important tool in project management as it helps to reduce the cost of the product and
helps the product to survive in the market.
Internal Collaboration
This collaboration is of paramount importance for successful new development project. This
collaboration is generally between CFT, Manufacturing, Supply Chain, Quality, Sales and
Marketing within the organization. An example of internal collaboration is a cross-functional
team. As already described before, in an organization cross-functional team is formed who have
different functional expertise but working towards a common goal. The main benefits of
internal collaboration are:
Using cross-functional teams have proved to reduce the cycle time in new product
development.
Cross-functional teams eliminate the "throw it over-the-wall" mentality that passes a product
off from
department to department.

External Collaboration
External collaboration involves two or more organizations working together to develop a
product. The main
benefits of external collaboration are:
External sources may provide valuable contributions to new product development (NPD) as
they provide
access to external knowledge that complements the firms internal knowledge base.
Product Development Organizations have tie-ups with the Certification agencies, regulatory
bodies,
Industry forums and specialized service provider players.Collaboration is the act of working
with each other to do a task. It is a recursive or repetitive process where two or more people or
organizations work together to realize shared goals. It is an important tool in project
management as it helps to reduce the cost of the product and helps the product to survive in
the market.

3) Risk Management
Risk is the potential for realizing some unwanted and negative consequence of an event.
According to
International Organization for Standardization (ISO 31000), risk has been defined as the effect
of uncertainty on objectives, whether positive or negative. Risk is part of our individual
existence and that of society as a whole.
Risk management can be defined as the identification, assessment, and prioritization of risks
followed by
coordinated and economical application of resources to minimize, monitor, and control the
probability and/or impact of unfortunate events or to maximize the realization of
opportunities.
3) Scheduling
Scheduling can be defined as a plan for performing work or achieving an objective, specifying
the order and allotted time for each part. It is an important tool for production processes,
where it can have a major impact on the productivity of a process.

4) Change management
Change Management is an approach for handling the transitioning of individuals, a team and
organizations to a desired future state. At a time of gain, change can be a time of exciting
opportunity for some and a time of loss, disruption or threat for others. How such responses to
change are managed can be the difference between surviving and thriving in a work or business
environment. Change is an inherent characteristic of an organisation and like it or not, all
organizations whether in the public or private sector must change to remain relevant. Change
can originate from external sources through technological advances, social, political or
economic pressures, or it can come from inside the organisation as a management response to
a range of issues such as changing client needs, costs or a human resource or a performance
issue. It can affect one small area or the entire organisation. Nevertheless, all change whether
from internal or external sources, large or small, involves adopting new mindsets, processes,
policies, practices and behaviour.

6) Product cost management

Product cost management (PCM) is a set of tools or methods used by companies who develop
and
manufacture products to ensure that a product meets its targeted profit. There is not a specific
definition for product cost management or a specifically defined scope of PCM. Sometimes
PCM is considered a synonym to target costing while at other times it is equated to design to
cost. But target costing is considered as a pricing process, while PCM focuses on maximizing the
profit or minimizing the cost of the product, irrespective of the cost at which the product is sold
to the customer

______________________________________________________________________________
7. Explain the different factors affecting product development

The following issues have impact in designing and producing of products by an organization
Social
Technical
 Political
Economical
Environmental

1.Social Trends:
Social factors and cross-cultural communication plays a vital role in international and global
markets.
It includes the following features
Demographic
Behavioural
Psychographic
Geographic

Demographic features:
A demographic environment is a set of demographic factors such as gender or ethnicity.
Companies use
demographic environments to identify target markets for specific products or services. This
practice has both advantages and disadvantages. Marketers have to take both sides of the
demographic environment coin into account when deciding what strategy to apply.
Demographics are the quantifiable statistics of a given population. Demographics is also used to
identify the study of quantifiable subsets within a given population which characterize that
population at a specific point in time. These types of data are used widely in public opinion
polling and marketing. Commonly examined demographics include
gender
age
ethnicity
knowledge of languages
disabilities
mobility
home ownership
employment

Psychographic features
Psychographics comes into play to better analyse and classify target buyers by psychological
attitudes such as aspirations, interests, attitudes, opinions, lifestyle, behavior, etc.
Demographics provide information on who typically buys or will buy a particular product or
service based on tangible characteristics. Psychographics provides more insight into who is
most likely motivated to buy.
Combining the demographic and psychographic views provides much improved targeting and
effectiveness for marketing and sales. From a marketing perspective, demographics define
what buyers commonly need whereas psychographics define what buyers want. Psychographics
identifies aspirational behaviors that are much more powerful drivers than physical
demographics.
2. Technological Trends
Technology:
Technology is the making, modification, usage, and knowledge of tools, machines, techniques,
crafts,
systems, and methods of organization, in order to solve a problem, improve a pre-existing
solution to a
problem, achieve a goal, handle an applied input/output relation or perform a specific function.
It can also
refer to the collection of such tools, including machinery, modifications, arrangements and
procedures.
Technologies significantly affect human as well as other animal species' ability to control and
adapt to their natural environments. The term can either be applied generally or to specific
areas: examples include construction technology, medical technology, and information
technology.

3. Political/Policy trends
It is always advisable to keep a track of potential policy changes in any government because
where the
Political situation is relatively stable; there may be changes in policy at the highest level which
has serious
implications. This may result in change in government priorities which results in new initiatives.
These can include changes in
Employment laws
Consumer Protection laws
Environmental regulations
Taxation regulations
Health and Safety Requirements
Trade restrictions or reforms
IP Trends:
Intellectual property (IP) is a legal concept which refers to creations of the mind for which
exclusive rights are recognized. Under intellectual property law, owners are granted certain
exclusive rights to a variety of
intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and
words, phrases, symbols, and designs.

4. Economic Trends
Extremely Dynamic markets have been Boon for Start-ups; Bane for Innovation; Companies are
Measured by Quarterly Profits; Global Markets are inter connected; The Future of organization
is decided by the stock market.
Official economic indicators, most of which are available such as
GDP (Gross Domestic Product)
GNP (Gross National Product)
The economic environment consists of factors that affect consumer purchasing power and
spending.
Designers need to consider buying power as well as the people they are designing for. Total
buying power depends on current income, prices, savings and credit. When the economy is
more confident, people will accept a design that is less of a need and more of a want. There
was a surge in the 1990s for the demand of cut price items and hence a massive growth in
stores such as Go-Lo, the Reject Shop etc.
Another economic issue is the cost of manufacturing. In Australia, manufacturing costs are
often increased by the cost of wages. Many Australian companies produce their products
offshore, usually in Southeast Asia, to take advantage of low wages that make products much
cheaper.

5. Environmental Trends
The natural environment has become a major issue since the 1960s. Air and water pollution,
massive waste disposal problems, concern about the depletion of the ozone layer, extinction of
species and the greenhouse effect are issues that are constantly being discussed by politicians,
environmental groups and individuals. There are four environmental trends that have long-
term implications on designing and producing:
shortage of raw materials both renewable and non-renewable resources
increasing energy costs
increasing levels of pollution in the environment caused by the build-up of substances that do
not
decompose or only decompose slowly
increasing government intervention in natural resource management
______________________________________________________________________________
______

8. Explain with flow chart about which methodologies to be used at different stages of
product development and maintenance
Following are the some of the
important points of each methodology to be considered before adopting a particular
methodology:
The Waterfall methodology is the basic product development methodology but it is resistant
to change
and does not assist in risk mitigation.
The Agile methodology is an iterative process that considers that change is inevitable and
prioritizes the
work to be carried out. This makes it an economic and time-efficient process.
The Over-the-wall has become obsolete because of its limitations. Due to the complexity of
the product
development work, it was divided among various departments which would specialize only in a
particular
phase of the development and would be ignorant about the other phase. It was a slow process
which also
leads to miscommunication between various departments handling the development. The lack
of a
centralized system to keep each department updated about the other departments led to this
methodologys downfall.
The V-model models main advantage over Waterfall methodology lies in the fact that every
step of the
Waterfall methodology is being tested in this method. But the main disadvantage is that this
method is
resistant to change and is expensive for carrying out simple developments because of its
repeated testing
and despite testing the method may be error prone. This has led to the decline in the use of this
process.
The Stage-gate methodology, unlike Waterfall methodology, does not plan beforehand but
plans and
analyses at each stage of product development and is thus more responsive to change, at any
stage if
there is a new development, the methodology adopts according to the new development.
The Spiral model combines more than one development methodology to develop the
product, but it is
also resistant to change and does not take the risk mitigation into account.
System engineering methodology is an inter-disciplinary approach towards product
development, though
the interdisciplinary approach is a complex one but it helps in bridging the gaps between
various sections
or departments of the product development, in stark contrast to the Over-the-wall
methodology. This
has led to a promising potential for this methodology.
Software companies prefer to use Agile technology and Stage-Gate methodology over Waterfall
technology
more considering their positive response to change and attempts to mitigate risks.

______________________________________________________________________________

9. Write in details about PLM Components

PLM components are
I. Data/Document Management and Vaulting
II. Product Structure Management
III. Configuration Management
IV. Change Management
V. Process Management
VI. Visualizations
VII. Web based collaborations
VIII. Project Management
IX. Requirements Management
X. Administration
XI. Application Integrations
Product Structure Views

To Look at a product structure from different usage perspectives

Design perspective: As-Designed
Manufacturing planning perspective: As-Planned
Final manufactured perspective: As-Built
Shipping perspective: As-Shipped
Maintenance perspective: As-Maintained

Product Structure Management

Features
Create and manage product Bill of Materials (BOM)
Create and manage Product Configuration
Product Structure contains attributes, location information
It also provides Where-used information
Product Structure (BOM) Views

Engineering Manufacturing Engineering

Designed the structure Rearranged the structure for assembly
As-Designed As-Planned
Product Product Manufacturing
1
Component Component Component Assembly Component
Substituted parts
As-Built
Component Component
Product

Assembly Component

As-Maintained As-Shipped Component Component

Product Product
4
Component Assembly Component Component Assembly Component

Component Component Component Component

Service Shipping
Implemented a field Change Added shipping materials

Configuration Management - Product Variants

Flexible Product Structures:

View product structures based on rules
View product structures based on logical
parameters
Views product structure based on condition
Configuration Management

Effectivities Alternates Parts

Engine Engine Engine

Piston alternate piston

(always)
Block

Shaft

Options Substitute Parts

Engine Engine

Piston option 1 option 2 Piston

Block Block Block substitute piston

Block
Shaft (specific)
Shaft

Process Management
Ability to Model and Manage Business
Process
Data flows through different department
and people
Review of data through proper access
control
Sequential, automatic or conditional
approvals
Action Triggers, notifications, warnings etc.
History and Audit Trail
Change Process Flow

Describe
By creating a Change Issue
Symptoms

Pursue
By logging a formal Change Request
Change

Identify By launching a Change Investigation

Cause and performing an Analysis Activity

Propose By suggesting a Change Proposal

Solution and performing an Analysis Activity

Implement By creating a Change Order

Solution and performing a Change Activity

Change Management Process

1. This is the
2. We need to solve this problem
Problem

Change Issue Change Request

5. OK, Implement the proposal
3. What causes
this problem 4. Here are some solution proposals

Change Investigation Change Proposal Change Order

Analysis Activity Analysis Activity Change Activity

This is how we determine the cause This is how we justify the proposal This is how we implement the order
Product Visualization

View - Ability to View and Visualize the product (may be without a CAD system)
Evaluate - Ability to perform transformation/Clearance Analysis/ Aesthetic
Designs / Calculations (may be without a CAD system)
Collaborate - Light Weight representation of content with viewers

Program Management

Digital Cockpit metrics and Dashboard

Risk Management

Team Management

Reports

________________________________________________________________________
 10. Conduct sample PESTLE analysis with any one day to day products like 1.laptop,2. soap,
3. shirt, 4.Biscuits etc.

PESTLE ANALYSIS BY PEPSICO.

PepsiCo is the largest selling beverage the world over, of course after its arch rival Coca Cola. It
accounts for a 37% share of the global beverage market, and therefore they need to
understand each and every countrys market in order to stay in line with their PESTLE
situations.

Pepsi is a big brand, currently holds the 23rd place in the Interbrands report of the Worlds
Leading Brands. Their advertisements feature major celebrities and athletes like David
Beckham, Robbie Williams, Britney Spears, and Michael Jackson etc.

Their market reach is also very diverse, as theyre present in almost every country from the US
to New Zealand. Their PESTLE analysis is given below:

Political:

Pepsi is a non-alcoholic beverage and is therefore regulated by the FDA. So, theyre supposed to
maintain a firm standard of the laws set out by the FDA with consistency. Also, many different
markets across the world have different set of regulations that are either relaxed or are either
stringent. There is competitive pricing by Pepsis competitors and that is one factor that Pepsi
has to keep in mind at all times. The political scenario also matters greatly as there can be some
civil unrest in certain markets or due to inflation the sales of the product can fall. Most
importantly, cross border situations are starkly different therefore Pepsi has to stay in line with
all those policies and changes so that they can adapt to all those changes accordingly.

Economic:

As the recent economic downturn has plagued the economy, companies had to restructure
their sales and marketing campaigns greatly. Also, with diminishing profits they had to undergo
downsizing internally and re-think upon how to penetrate the market. Economic conditions
have the highest influence on a business, regardless of what trade it is in. Though, in Pepsis
favor, the economic downturn that started in 2008 resulted in increased sales of its beverages
mainly as people were being laid off from jobs, they were spending time with friends and family
or at home.

Social:

Social factors greatly impact Pepsi, as its a non-alcoholic beverage it has to remain in line with
the strict and stark differences of cultures the world over. Also, Pepsi has to communicate its
image as a global brand so that the people can associate it with themselves as something that
connects the world together. Usually, the social implications are seen in marketing campaigns
for example certain countries have religious festivals, so Pepsi has to keep in line with all those
festivals in order to understand the psyche of their market and how they can cash upon the
opportunity.

Technological:

With the advent of the new age in technology, companies have completely integrated
themselves with all the recent changes that have taken place. To mention a recent trend that
has greatly picked up and something that almost every business is turning toward is Social
Media. The social media explosion has allowed for increasingly interactive engagement with the
consumers with real time results so Pepsi has to stay ahead of all the developments that take
place with keeping in view how the youth of today utilizes technology for their benefit and how
can Pepsi reach them in order to keep on increasing brand recall and brand engagement.

Legal:

There can be many legal implications upon the beverage industry. I would cite one very famous
incident took place in India, where Pepsi was accused of using contaminated water, given a lab
test that was done upon the water flowing into the Pepsi factory that was located nearby an
industrial estate. A massive recall was issued for the products from shelves and then the
product was tested costing the company many billions of dollars upon the tests as India is a
very major market.

Environmental:

These factors can affect Pepsi, but not immensely alter its trade and profit generation as these
factors affect agri-businesses much more directly.