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Components of LCM

Product
COMPONENTS OF PRODUCT
Organization
LIFECYCLE MANAGEMENT
People
Life Cycle Management
Methods
Week 7
Engineering Faculty Process
University of Surabaya
System

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Product Management Levels of Product Hierarchy

1. Product needto satisfy a need e.g. feet protection
1. Product hierarchy
2. Product classa family of products having similar
2. Product classification function e.g. all shoes
3. Product linea group of products with closely
3. Product mix related functions e.g. sports shoes
4. Product typeproducts within a line having similar
4. Product differentiation
form e.g. basket-ball shoes
5. Product structure 5. Branda name representing a product or line e.g.
Nike
6. Item (Stock Keeping Unit)a unit item e.g. one pair
of Nike basket-ball shoe
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3

Nike Product Classification (1 of 3)

Consumer Product Classifications
Convenience Products
Shopping Products
Specialty Products
Unsought Products
1. Products of which consumers are
unaware
2. Products that consumers do not consider
purchasing until a need or emergency
arises
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Product Classification (2 of 3) Product Classification (3 of 3)

Business Product Classifications Product Lines and Mixes
Product Line
Raw Materials
Product Mix
Component Parts
Benefits of offering a wide variety and
Process Materials deep assortment of products:
MRO Supplies Economies of Scale
Accessory Equipment Package Uniformity
Installations Standardization
Business Services Sales and Distribution Efficiency
Equivalent Quality Beliefs
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Product Line Strategies

A Product Line is a Firms Total Product Offering

Designed to Satisfy a Single Solution

Lifebuoy Lux Dove

Antibacterial

Special
Care

Length of Product Line

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Product Line Strategies More on Product Line Extension

Downward stretch by introducing lower range of the
Product Line Extensions
products
Santika Amaris
Stretching Filling Contracting a
Adding new items Adding sizes or Product Line
to line styles Dropping items

Downward

Upward Danger of
Cannibalization
Two-way

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More on Product Line Extension More on Product Line Extension

Two-way stretch by filling the whole line
Upward stretch by entering the high end of the
market Toyota has the Starlet at the lower end; the
Corolla in the executive range; the Camry in the
Toyota introduced the Lexus and Nissan
upper-management range and the Lexus in the
introduced the Infiniti
luxury range

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More on Product Line Extension Product Mix Strategies

Filling: adding sizes or styles
Product Mix is the Total Set of all Products a Firm
Offers for Sale

Laundry &
Health Care Beauty
Cleaning
Products Products
Products

Width of Product Mix

Line
Extensions
Branding
Bundling
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Product-Mix Decisions Sony Product Portfolio

Decisions on the product mix (the number of product
lines and items in each line) that the company may
offer
A single product Most firms started off as a
single-product company
Multiple products
e.g. Creative Technology markets sound cards as
well as MP3 players
A systems of products
e.g. Nikon sells camera, lenses, filters & other
options
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Unilever Product Portfolio Levels of Product Knowledge

Product Brand Model/Feature

Class Product Form

Coffee Ground Folgers 1-pound can

Instant Maxwell 8-ounce jar
House

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Levels of Product Knowledge Product Differentiation

Product Brand Model/Feature
Product Form Reliability
Class Quality Killers
Conformance
Sedan Ford Taurus Station wagon, Air &
Autos power steering
Sports Car Mazda Miata Performance
BMW Leather seats, Air & 5 Quality Drivers
Sports Sedan speeds
Durability
Model 325e, Air &
Automatic Trans
Features
Quality Enhancers
Serviceability

Appearance
Quality Aesthetics
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Reputation
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Service Differentiation Differentiation through Brands

Value based on the stature of the brand or the assurance of
Ability to perform the promised service a well known company
Reliability dependably and accurately
Become distinctive
Willingness to help customers and provide
Responsiveness prompt service and readiness to provide
prompt
p o p seservice
ce Are free from poor foreign language meanings

Assurance Employee knowledge, courtesy, and ability Suggest product qualities

to convey trust and confidence

Empathy Caring, individualized attention the Suggest product benefits

business offers its customers

Tangibles Are easy to pronounce, recognize, remember

Facilities that enhance service quality
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Differentiation by Low-Price Position

Product Structure (1 of 2)
or Lower Transaction Costs
Product structure is the foundation and highly
Low-Price Position important in PLM.
Competitive advantage based on consistently Product structure are usually object-oriented. An
offering a lower list price object is a data element, which describes a certain
product component
component, subsystem or assembly.
assembly

Lower Transaction Costs The objects of the structure have different

dependencies in relation to each other.
Competitive advantage based on consistently lower
exchange costs This dependence between objects can be functional
or hierarchical by nature.

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Product Structure (2 of 2) Product Structure of Computer

The actual product structure, with its different levels,
consists of mutual hierarchies of various objects.
Lower object classes contain the properties of higher
classes together with some additional or changed
features; for example, the coupler sensor and
analogous
l sensor can bbe subclasses
b l off th
the sensor
class.
The properties of objects can be described by the
attributes connected to each object.
For example, the attributes of a certain component
object might include its weight, effect, item number,
cost, and reference designator.
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An international product model standard An international product model standard

STEP (Standard for the Exchange of Product
Model Data) ISO 10303
officially defines a generic (general) object-oriented
product model.
STEP describes:
Definitions of object classes common to all the
application areas of the product model
Definitions of objects unique to some particular field,
such as shipbuilding. This is called the Application
Protocol (AP) of STEP
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STEP provides an internationally standardized tool
for defining product models and product structures
A tool for exchanging the structurally arranged
product data between different information
processing systems
systems, companies
companies, and communities
A conceptual product model have their product
structure when the objects of the product model
have their contents and relationships with each
other defined for each product.
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A Ship Product structure of a ship (1 of 4)

1. The product level In the whole model there is only one
Similar products object at the product level:
A ship
Being produced as projects
2. The system level, which divides the product into different
Include power plants and chemical systems:
processing plants Area system areas
Hull system steel blocks
Being made according to the wishes of Technical systems sprinklers, electricity, fresh water, hydraulics,
the customers and the demands of local machinery systems

conditions 3. The sub-system level, which divides the systems into

smaller logical totalities:
Premise an area can consist of several premises
Part block a block consists of part blocks
Subsystem one functional part of the complete system
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Product structure of a ship (2 of 4) Product structure of a ship (3 of 4)

4. The component level, the parts of which are usually
very concrete:
Areas and premises contain interior decoration
components
The assembly is a structure of the part block
The technical systems are based on
components and utensils
5. The element or part level contains very simple parts:
The part / material is a steel disk cut to form or a
cut profile in the assembly of level four

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Product structure of a ship (4 of 4) Mega Vessel

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A Mobile Phone Product structure of mobile phone (1 of 3)

1. The whole model contains only one object at the product level:
Mass production Sales package
Not tailored according to the wishes of 2. Component level 2 divides the product into contents to be packed at
the distribution center or by the contract manufacturer:
individual customers Accumulator
Telephone
Manual booklet
Charger
3. Component level 3 divides the product into parts to be
manufactured. For example, the level 2 object, the mobile phone,
consists of the following parts:
Engine actual circuit board assembly
Outer coverings of the telephone, cover half A and cover half B
Mechanics packing, consisting of screws and nuts and bent
38 plate parts 39

Product structure of mobile phone (2 of 3) Product structure of mobile phone (3 of 3)

4. Component level 4 covers parts, which are usually very
concrete. The level 3 engine of the phone might consist of
the following components:
SMT mounted circuit board with its electrical
components
Software A
Software B
5. Element or part level:
This consists of very simple parts such as the
components mounted on the circuit board.

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Mass Customization Forklift

Company can provide mass product which are
customized by their customers
Using product structure, it is possible
The product structure of a product that can be
changed according to customer wishes can be
presented in several different ways.

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Product structure of a forklift truck (1 of 2) Product structure of a forklift truck (2 of 2)

1. The whole model contains only one object at the product
level:
Uppermost level of the product forklift truck
2. Product family level:
The product family level can contain several sales level objects,
for example, an indoor electrical forklift truck
3. Property
P t level
l l off th
the product:
d t
Properties of the product
4. Variable modules of the product:
Technical modules, which implement the chosen product
properties
5. Component level, the parts of which are usually very
concrete:
The interchangeable components that go to make the modules
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Other Components (1 of 2) Other Components (2 of 2)

Organization
Structure Methods
Cross-functional BPR, GT, JIT, QFD, TQM
Authority Process specific to a product or project
People Alliance management, contract preparation,
Capabilities y inspection,
corrective action, delivery, p modeling,
g
Experience packaging, new product development, quality control,
Education why they do it, practices recycling
Training what to do, processes Establishing, documenting, maintaining and improving
Support reducing inefficiency, need communication process
Capacity change management System
Attention
CAD, CAE, CIM, DMU, EDI, Virtual Reality
Willingness
Option 48 49