Product Design - Assignment Example

?Product Design Introduction Product design is a cross-functional organization work that has become increasingly important in today’s globalized environment. It is where new products and new improvements on old products are created. It is critical to an organization’s success as it sets the characteristics of its products and services. In the words of Vonderembse (n.d.), it is where the competitiveness of a product or a company is established. Product design has tremendously changed from the design mode that it was known and pursued in the industrial revolution era to the mass production period that it is presently known. Although the basic design concept of producing a product in answer to a consumer need has remained relevant and valid, so much has changed in the objectives, processes, methodologies and techniques to arrive at the end product (Cresswell et al, 2004). Kassi (2008) reports that in the beginning of the old era some 250 years ago, the focus was more on product quantity than quality as the demand for products was not yet developed and the production processes were crude. Certainly, there was emphasis on cost reduction but this was without regard to the quality of the end product, an attitude that was carried through till the beginning of the scientific era and on to the period when industries began mass producing. The scientific managers carried forward their time-motion studies, process analysis and queuing theories which consequently became seeds for the moving assembly line, linear programming and statistical sampling that were being used in mass production (Kassi, 2008). This mass production system became vogue up to the latter part of the 20th century, by which time the market has fully bloomed and demand has ripened for new products. This heightened demand signaled the beginning of quality in production, but the moving production line was not up to par with the costs it involved. Hence, new methods were sought and thus began the use of computing, automation and lean production systems that ushered in such concepts as just-in-time, CAD design, electronic data interchange and TQM, among other late concepts (Kassi, 2008). Inside that process of evolution, equally evolving was product design as it is now known. It is the aim of this paper to take a close look at product design and examine its role in the modern configuration of business, particularly as it is being promoted to take on a responsibility in achieving competitive advantage for a business firm. Product Design As a general concept, product design would simplistically refer to the process by which new products are designed and produced. But Achenie et al (2003) look at product design as a series of steps leading to the completion of a product that is ready for use. The steps involved are define the needs, generate ideas to meet the needs, select the best idea and manufacture the product (Achenie et al, 2003). On the other hand, Synthesis Engineering Services may be a biased information source for this research but it would be worthwhile to look at their conceptual presentation of the steps in product design. Their presentation shows a very clear picture of the whole process from identifying the bright idea to defining the requirements to information gathering and planning to design to prototyping to production (Synthesis, 1996). This sequence is, in fact, aligned with what Luecke (2003) offers as a process involving the generation of ideas, evaluation of these ideas, development of the selected ideas and conversion of the ultimately chosen ideas to useful products. It is easy to see that product design is the key process, if not a strategy, in the overall effort of an organization to achieve outstanding end results. Cresswell et al (2004) agrees that it is in product design where new products or product improvements emanate and take form. Looking at it another way, product design is the driving force of a company’s initiative at creativity and innovation. Luecke (2003) believes that, if innovation is what will put the modern organization at the forefront of competition, the role played by product design in that effort assumes a truly significant dimension. It is in product design where creativity emerges, and creativity is the beginning of innovation (Luecke, 2003). Of course, product design has changed since the industrial revolution. Following the dramatic changes in systems and production processes, product design has morphed to embrace new designing processes involving computers, prototypes, models and other aids in the design development (Synthesis, 1994). Given that more products are essentially molecular in structure, the processes even assume more intricate methodologies of testing and retesting to arrive at the closest prototype or formulation that would meet the specifications coming from the market (Achenie et al, 2003). If one were to look casually at a product on display at a show rack, evidencing it is a finished product ready to be purchased and handed its verdict by a customer, one would not be able to distinguish the steps the product went through during the design and production phases. What is not visible and not easily known is that such a product undergoes a very meticulous process from the first step of generation of ideas described by Luecke (2003) to the last step of market distribution. The challenge facing the modern manufacturer is how to shorten cycle time while improving the quality and the functionality of the product. Shortening the cycle time would certainly enable the company to lower its cost (Bodek, 1990). Cycle time is a parameter of product design that talks about how long a product would last till its disposal. In such a fast-paced environment, companies are realizing that developing new products is crucial for their survival (Akao, 1990). It is because customers are becoming more demanding of quality and functionality in the products they are buying. Quality and functionality are inputed through the product development process which includes the product design stage ( Akao, 1990). In design, all the more would the processes be intricate and meticulous if the product is molecular such as alcohol or a packaged food (Achenie et al, 2003). Here is a sampling of the questions that designers would expect to be answered in order to come up with a product that fits. What function is the product supposed to perform? Is the product a replacement for another product? What operational limits should be observed in using the product? What criteria should be used to evaluate the performance of this product? What are the downstream constraints for this product? How is the method of disposal? What are the environmental considerations at use and at disposal? (Achenie et al, 2003). Answers to these and many more questions would serve to guide the designers in defining the form and configuration of the finished product. It follows that the output will only be as good or as bad as the input. Given the design and the production processes, how would product design impact competitiveness? Competitive Advantage Competitive advantage is a condition where a company is able to provide the same benefit as competition at a much lower cost, or a greater benefit that exceeds those of competitive products (QuickMBA, 2010). With competitive advantage, a firm is able to create superior value for its customers and equivalent profits for its stockholders. According to the competitive advantage model introduced by Michael Porter, a company can achieve competitive advantage over its rivals using three strategies: cost leadership, differentiation or strategic focus (12Manage, 2011). Cost leadership of course points to the lowest priced, which is clearly a competitive advantage. However, while that may sound like a breeze for an advantage, it is easy to see that if one company enjoys a lead by reason of its lowest price, such an advantage may not hold for long because any rival can always offer a lower price, which abruptly ends its turf. That advantage is not sustainable, according to Porter (12Manage, 2011). Furthermore, a company can adjust its price only up to a certain extent, of course to the extent that it does not incur a loss, and if the rivals would adjust theirs to such an extent, it may be good for the consumers to see the price-lowering war, but it will not be good for the competing companies and for the whole competition. To win a price war at a loss is a loss, not a win. The cost or price of a product emanates from the product design since the determination of the type of materials and the process of manufacture is made at the design phase (Cresswell et al, 2004). At the stage when the prototypes are made, included in the prototype analysis would be the production cost of the prototype based on different volumes or quantities produced (Synthesis, 1996). Therefore, a company cannot rely on cost leadership alone (12Manage, 2011). A lowest-priced product may enjoy only temporary patronage. Upon its use, if the customers would determine that the quality is poor, the product would certainly be abandoned for another. According to Professor Kouvelis of the Olin School of Business at Washington University, customers would be looking for a product that is low-priced, of high quality and functional (Newman, 2006). The other strategy to gain competitive advantage is differentiation (12Manage, 2011). Porter describes differentiation as the characteristic uniqueness of a firm or its product along some dimensions that are substantially appreciated by customers (12Manage, 2011). If a firm cannot be different in other aspects, it must endeavor to lower its cost, but where it cannot find differentiation in product functionality, distribution system, service image and other areas, its cost must be at least lower than its price premium (12Manage, 2011). It is obvious that most differentiations can be derived during the process of designing the product, since the product would be created based on specifications supposedly attuned to consumer needs. Consequently, the product prototype that should finally emerge would be the product that would generate some definite competitive advantage (Akao, 1990). Product Design and Competitive Advantage Wang and Chou (2009) identify two elements in the product design process that are mobilized in product promotion, that stage when the finished product is announced and made available commercially. These two elements are aesthetic elements – which include shape, color, illustration, logo and brand, typography, pattern, facts and usage instruction, ingredients and form layout – and functional elements – which include structure, materials and volume (Wang and Chou, 2009). Researches have shown that these two elements are the details taken out for use in product packaging and product promotion which are the interface points with clients. These two elements, aesthetics and function, are recognized as major influences in the consumers’ buying decisions (Wang and Chou, 2009). It is by functional consequence that competitive advantage can be greatly influenced by product design. Sustainable Product Design Corporate social responsibility and increasing competition among manufacturing organizations have put on the agenda table the issue of environmental consciousness as a vital concept in a competitive world (Rathod et al, 2011). At another front, companies are challenged to share their perspective on the life cycle of their products and their corresponding services known as product-service-systems. Both the greening characteristics of products that speak of their effects on the environment and the life cycle of products are two vital inputs among the many specifications that go into the product design phase. Both have relevance to costs and differentiation and certainly have a direct or indirect influence on a firm’s competitiveness. Although not many products have reached that point where customers would pick them out for being green, more products have been observed enjoying extra patronage for their environmental concern (Oliver, 2007). Conclusion Product design has become a very critical factor in an organization’s success. This writer is fully convinced from the materials that have been gathered here that truly product design performs a very dramatic role in a company’s competitive standing. Product design serves as the “strategy room” of the firm where all new products and new improvements are hatched, aged, tested and released. It is in product design where pricing is set. It is in product design where the characteristics of the product are defined. It is in product design where a differentiation can be established. It is through product design that competitive edge can be shaped and sustained. References: Achenie, L., Gani, R. and Vankatasubramanian,V. (2003). Computer Aided Molecular Design. Netherlands: Elsevier Akao, Y, (1990) Quality Function Deployment. New York: Productivity Press Bodek, N. (1990), Quality Function Deployment. New York: Productivity Press Cresswell, L., Attwood, J., Goodier, A. and Lambert, B. (2004). Product Design: Graphics with Materials Technology. Oxford: Heinemann Hepperle, C., Drawski, R, and Mabyastha (2011). Temporal Aspects in Lifecycle, Onsite Planning of Product Service System, Indian Institute of Science, Research Publishing Kassi, T. (2008). The Changing Impact of Product Design for a Company, Journal of Economic Literature Classification Numbers L23, M11, M31, Department of Industrial Engineering and Management, Lappeenranta University of Technology Newman, S. (2006). Low price doesn’t always mean low quality, but could mean a challenge to high-end products, Newsroom, June 8, 2006: http://news.wustl.edu/news/Pages/7318.aspx Oliver, J. (2007). Increasing the adoption of environmentally friendly products. Missourri: ProQuest QuickMBA (2010). Competitive Advantage, Strategy. Accessed August 19, 2010: http://www.quickmba.com/strategy/competitive-advantage/ Rathod, G.,Vinodli S. and Madyastha, U. (2011). Research into Design, Supporting Sustainable Product Development, Indian Institute of Science, Research Publishing Synthesis website. The Product Development Process. Accessed August 16, 2011: http://www.synthx.com/articles/product-development.html Vonderembse, M. (n.d.) Product Design, Reference for Learning, 2nd edition. 12Manage.com (2011). Competitive Advantage (Porter), The Executive Fast Track. Accessed August 19, 2011: http://www.12manage.com/methods_porter_competitive_advantage.html Wang, R. and Chou, M. (2009). The Comprehension Modes of Visual Elements, International Journal of Business Research and Management Vol 1 Issue 1 pp 1-13, 2009 Read More