Course Name: Production & Operations

Management
Module 2: Product & Service Design

Introduction
Product decisions often make or break companies. Studies indicate that nearly two out of three
new products fail after launch. In addition, companies in many sectors are under continual
pressure to speed up the pace of product development – even to adapt products that are still in the
pipeline to the demands of a constantly changing marketplace. This unit will discuss product and
service design, which are crucial areas in operations management.

Objectives of Designing
The objectives of product and service design can be divided into two broad categories:

1. Main Focus:

(a) Customer Satisfaction

(b) Understanding what customer needs

2. Secondary Focus:

(a) Function of product/service

(b) Cost

(c) Profit

(d) Quality

(e) Appearance

(f) Ease of production/Assembly

(g) Ease of maintenance/servicing

Legal and Environmental Issues
The major legal issues are:

1. Patents: A patent is a grant of property rights by the government to an inventor. Patents are
exclusive property rights that can be sold, transferred, willed, licensed or used as collateral, much
like other valuable assets. In fact, most independent inventors do not commercialize their
inventions or create new products from their ideas. Instead, they sell or license their patents to
others who have the resources to develop products and commercial markets. Patent law stipulate
broad categories of what can and cannot be patented and in the words of the statute, any person
who "invents or discovers any new and useful process, machine, manufacture, composition or
any new and useful improvement thereof, may obtain a patent."

2. Trademarks: It includes any word, name, symbol, distinguishing device or any combination
thereof adopted and used by a manufacturer or merchant to identify his goods as distinguishing
them from those manufactured or sold by others.

Example: Trademarks can be names used in commerce such as Coke, clearly trademarked by the
Coca-Cola Corporation. A trademark can be a symbol like Apple Computer Corporation's
unusual apple with a bite in the side. A distinguishing device can be artistic renderings of
corporate products, such as the wild mustang horse for the Ford automobile, the intricate shield
and insignia designed NFL football team.

3. Copyrights: A copyright extends protection to authors, composers, artists and it relates to the
form of expression rather than the subject matter. This distinguishing feature is important
because most intellectual property has proprietary information in terms of subject matter and if
that property cannot be patented, the copyright only prevents duplicating and using the original
matter. The probation does not prevent another person from using the "subject matter" or
rewriting the material.

Example: The concept of an electronic spreadsheet is not protected; however the software
program devised to create the spreadsheet (form of expression) is protected by copyright.

4. Product Liability: It refers to the responsibility of a manufacturer or vendor of goods to

compensate for injury caused by defective merchandise that it has provided for sale.

When individuals are harmed by an unsafe product, they may have a Cause of Action against the
persons who designed, manufactured, sold, or furnished that product.

5. Uniform Commercial Code: Created in 1952, the Uniform Commercial Code (UCC) consists
of uniform acts coordinating the sale of goods and other commercial transactions throughout the
50 United States. The Uniform Commercial Code also seeks to make commercial paper
transactions, such as the processing of checks, less complex. It distinguishes between merchants,

In the United States, some consumers have hailed the rapid growth of product liability litigation as
an effective tool for Consumer Protection. The law has changed from caveat emptor ("let the buyer
beware") to Strict Liability for manufacturing defects that make a product unreasonably dangerous.
who know their business well, and consumers, who do not. Overall, the code's objective is to
eliminate the need for lawyers in the aspects of commercial trade it governs.

The main environmental issues are:

Environment Protection Act has been enacted to provide for the protection and improvement of
environment and for matters connected therewith.

Whereas the decisions were taken at the United Nations Conference on the Human Environment
held at Stockholm in June, 1972, in which India participated, to take appropriate steps for the
protection and improvement of human environment; and whereas it is considered necessary
further to implement the decisions aforesaid in so far as they relate to the protection and
improvement of environment and the prevention of hazards to human beings, other living
creatures, plants and property. Subject to the provisions of this Act, the Central Government
shall have the power to take all such measures as it deems necessary or expedient for the purpose
of protecting and improving the quality of the environment and preventing controlling and
abating environmental pollution. Where any offence under this Act has been committed by a
company, every person who, at the time the offence was committed, was directly in charge of,
and was responsible to, the company for the conduct of the business of the company, as well as
the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded
against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any
punishment provided in this Act, if he proves that the offence was committed without his
knowledge or that he exercised all due diligence to prevent the commission of such offence.

Lifecycles
Product Lifecycles

The product lifecycle model is a simple representation of the cumulative impact of changes in
the business environment on the life of a manufactured product. It is an important management
tool to understand the product and its finite lifespan and develop the understanding of the
situation so that strategies for survival and growth can be effectively advanced.

A product category goes through four stages of development

Stage 1: Product Introduction Stage

During this stage, the product is new to the market and the consumers have to be motivated to try
and accept the product. This is a stage when the product volumes are low and profit is normally
down.
Stage 2: Growth Stage

As the product finds market acceptance, it goes into the growth stage. During this period, there is
an exponential growth of the volumes accepted by the market. New competitive products are
introduced and there is a significant change in the product features due to continuous
improvements.

Stage 3: Maturity Stage

The third stage or the maturity stage sees the product as an established product and the demand
and quality of the product does not undergo much change. However, this is the stage of cutthroat
competition, with competitors competing on the basis of providing value to the product.

Stage 4: Decline or Extinction

In this stage, new product categories are introduced into the market that provide better value to
the consumer for that particular need or there is a change in the needs of the consumer.
A number of factors impact the product category when it is introduced. Factors that impact the
introduction stage of consumer products positively are:

1. Relative Advantage

2. Compatibility (values and experience of adopters)

3. Divisibility (ability to try on a limited basis)

4. Communicability, i.e., ability to describe advantages.

Factors that impinge negatively are:

1. Complexity

2. Perceived Risk

In the case of industrial products, though the principles involved are similar, the mechanism by
which it works is different. It has been found that the rate of diffusion in industrial markets,
during the 'introduction stage', is related to the competitive intensity of the supplier industry, the
reputation of the supplier industry, and the vertical co-ordination between supplier and adopter
industries.

Technology Lifecycle

Statistical regularities show that the product lifecycle can be used to forecast the way the product
attributes, demand, production and competition will change as the product matures. A related and
more useful concept is the technological lifecycle. This links market growth and technology.
It has been seen that technological change generally follows the course described by the
'technology lifecycle' graph. By plotting the market volume over time for any industry, one can
identify the changes in the industry. This is called technological aging of the industry. This
exercise can be carried out both for the product as well as the process and has been depicted in
Figure 2.2. When a new industry based on new technology is begun, there will come a point in
time that one can mark as the inception point of the technology.

Lets us discuss the various phases of technological aging/lifecycle by taking up the example of
the automobile industry. In 1887, Gottlieb Daimler manufactured the first gasoline-powered
automobile.

Phase I: Technology Development

1. Then the first technological phase begins with the rapid development of the new technology.
This phase is called the Technology Development phase. In the case of the automobile, it would
be from 1887 to 1902, as experiments with steam, electric and gasoline powered vehicles were
conducted.
2. This is an exciting time, because product improvements continue and improved processes for
producing cheaper, better products are innovated.

3. This is the time of eliminating weak competitors.

Example: In 1909 there were 69 auto-manufacturing firms in USA. Only half the firms survived
by 1916.

Phase II: Applications Launch

This phase is the creative period of product experimentation. This lasts till the time a standard
design has been worked out and rapid growth of the market begins. This occurred with Ford's
Model T design. During this phase, failure rate of firms in the industry continues to be high, but
successful firms grow. Corporate R & D becomes important to maintain incremental model
improvements.

For example, by 1923 only eight major American firms had remained in the automobile industry,
capturing 99 per cent of the market.

Phase III: Applications Growth

1. During this phase there is a rapid growth in the penetration of technology into markets.

2. After some time, however, the innovation rate slows down and the market peaks; no new
markets are created.

Phase IV: Mature Technology

1. In this phase, process innovations are dominant.

2. Very few firms survive, of the original lot.

3. Competition is primarily on price and segmented market lines.

4. Production is specialized and efficient.

5. Economies of scale and marketing dominance continue to whittle down competitors, to the
final few

Example: By 1965, only General Motors, Ford, Chrysler, and American Motors had survived in
the American automobile industry

A mature industry can continue indefinitely. Competitors with more abundant resources, cheaper
labour or subsidized capital can obtain a competitive advantage. When market saturation is
taking place, it is important to continue technological innovation to extend the product life and
delay market saturation. Innovation succeeds in:

1. Creating succeeding generation products with significantly improved performance,

2. Creating multiple applications,

3. Lowering of price to facilitate ownership of multiple copies of the product for convenience.

Phase V

Finally, competing or substituting technologies overrun the mature technology and the last phase
is reached. At this stage, the industry has run out of significant innovation. Changes in
demography, replacement and foreign markets now primarily determine the market size.

Product Lifecycle and Technology Lifecycle

The length and pattern of the Product Lifecycle can vary significantly. There is no reason to
believe that all products inevitably pass through all four stages, e.g., fad items, consumer
resistance, and introduction of superior new product. Though the Product Lifecycle diagram has
been designed for product categories, it has limited use to management, as it may not reflect the
life of their 'Product Form', or 'Brand'.

The reliability and the interpretation of the Product Lifecycle for analysis of product brands is a
serious limitation of this instrument. However, it can be used for 'product forms' quite
successfully.

Example: Product Form – Filter Cigarettes.

Product Brand – Classic Mild

The Product Lifecycle concept is extremely useful. It shows how customers tend to be much
more knowledgeable about the product class as the lifecycle progresses; product performance
typically improves over the cycle and the relative differences in brands competing for the same
segment decline as successful ideas are copied. This leads to increased competition based on
price, image, service, durability, reliability, etc., which results in increased value to the
consumer.

Simultaneously, with the technological changes in the lifecycle of the product, changes also take
place in the process. The changes are slow at first during the period that the product volumes
increase, but are maximized during the phase that the product reaches the maturity stage. In other
words, the growth stage of the process technology normally coincides with the maturity stage of
the product.
The growth stage of the technological process is between the lines AA and BB in Figure 2.2,
which coincides with the maturity stage of the product technology. Technology improvements
take place until such time that the process becomes so efficient that any marginal increase in the
parameters of the process would not provide the required returns. As improvements continue, the
investment in small improvements becomes so large that they are not economically justified.
This reflects the downturn in the process technology curve.

The fact that the rates of technological innovation affect the competitive conditions of an
industry means that management should plan different strategies for different phases of the
technology lifecycle.

Example: It is suggested that in times of changing technology, management should use the
technology lifecycle model to arrive at decisions regarding the technologies, new products, etc.,
that it requires for its future growth and survival.

A general strategy of phasing new products in and phasing old products out sustains the existing
process capacity

Product Design and Development

Without products, there would be no customers. Without customers, there would be no revenue.
Developing a new product is a major activity. Thomas Alva Edison, with as many as 1,300
inventions and 1,100 patents to his credit, said about the product development process, "Genius
is 1 per cent inspiration and 99 per cent perspiration." Product development requires more of
perspiration and less of genius to be successful. Leaders today still use four key components of
Edison's product development model:

1. Lofty Goals: For example, the ability of the bulb to stay lit for long periods of time.

2. Right to Left Process: Start with customers and move backward through operations to design.

3. Structure: Have 'clear targets' instead of daydreaming and aimless experimentation.

4. Fluidity: Be driven by talent, not hierarchy.

Many designers do not understand these issues and, as a result, often propose products that
cannot be produced or service designs that cannot be delivered because of inadequate technology
or operational capabilities. The approach to product development has to start with an evaluation
of the capabilities and resources of the organization.

The new product strategy of the organization is decided on the basis of organizational
capabilities and resources. Organizations should develop explicit product-development strategies
to coordinate all of the major business processes that contribute to product innovation. The need
to be fast when competing in high clock-speed industries makes this an absolute necessity.
With a new regime of patents and legal protection against copying ideas, designs, or products–
there have been changes in the approach to new product development. Organizations are more
concerned about being the first to develop an idea or design a product so that they can protect
their markets.

Being able to design, develop, and introduce a new product quickly gives a firm 'fast to market'
capabilities. There are two types of fast to market activities.

1. Fast to customization: The first activity is being able to develop products to meet the specific
needs of a customer. This is called fast to customization. Producing such a product with the
participation of the customer, may give a firm a competitive advantage.

2. Fast to design: The second type relates to developing products to meet the needs of a cluster of
customers. Fast to design product innovation can be used in MTS, ATO, and MTO market
orientations.

Example: Nokia introduced cell phones that incorporate cameras. Seeing that there was a cluster
of customers for this product all manufacturers now offer this product. Nokia has a first mover's
lead in this segment of the market.

In other situations, being fast to market may not be less important. It depends on how quickly a
product's design becomes stale. Mercedes-Benz traditionally had customers that valued good
design more than a model a year.

For some products, being fast to market may not be in your firm's best interest.

Example: A creative advertising executive always makes his clients wait a week or two, even
though he thought of the copy for the ad in a day. Likewise, if a gourmet restaurant that serves
your meal five minutes after you order, you know that they must be using a microwave oven. If
they make you wait for 30 minutes, then the same judgment cannot be made.

Another important type of product innovation involves refining or rejuvenating products within
the existing product line. For some companies, this is an annual event, as is the case with the
automotive industry.

Major redesigns in the automobile industry can take years and costs billions. This becomes a
Catch-22 situation. Since it costs so much to develop new models, auto companies often try to
sell as many copies of the new product as possible, even if it takes four or five years. But the
older a car's design gets, the greater the chance that it will lose market share to competitors with
fresher models. And worse yet, if it takes five years to develop a new model and a company
wants to sell that model for another five years, then it must project what the customer's
preferences are likely to be ten years from now. This is not only a tremendous challenge, but it
requires a leap of faith to take it to its logical conclusion.
The product-development process and its identifiable stages are shown in Figure 2.3. Product
development includes a number of processes. The steps that follow are given below:

Clarification of the Task

The search for ideas starts from – and is based on - the 'new product' strategy. The ideas that fit
in with the strategy have to be identified. The customer needs have to be determined. This should
provide pointers towards the functional requirements of the product.

Simultaneously, the organization should be evaluating its resources and time schedules to
identify and specify constraints.

Based on this exercise, the general specifications of the product or service are drawn up.

The product idea must demonstrate that it fulfills some consumer need, and that existing
products do not already fulfill.

Concept Generation

The specifications are the basis for concept generation. At the concept level, the organization
should identify essential problems and propose the function structure of the product or service.
This should generate proposals and solution principles that are combined and refined into
concept variants.

The concept should be evaluated against technical and economic data. If the results are found
satisfactory, the concept has reached the stage for screening.

Screening is a management process. Each idea is analyzed and its risks and potential are
scrutinized, both technically and business wise. Those having potential are identified. Most of
the ideas are killed or die at the screening level.

The business analysis includes preliminary market analysis, creating alternative concepts for the
product, clarifying operational requirements, establishing design criteria and their priorities, and
estimating logistic requirements for producing, distributing and maintaining the product in the
market.

Embodiment Design

After they have cleared screening, the ideas are developed in their preliminary configuration and
an introductory analysis is conducted.

The best preliminary design(s) are:

1. Selected and refined.

2. Evaluated against technical and economic criteria.

3. The preliminary design(s) are refined and the configuration completed.

Detailed analysis is conducted of refined design(s). The design is reviewed for errors,
manufacturability and cost. The preliminary design and alternate designs are evaluated according
to critical parameters to determine the design support that will be required including analytical
testing, experimentation, and physical modeling. Based on the results and trade-offs, the
conceptual design is firmed up.

This is followed by:

1. Preparation of preliminary parts list, and

2. Fabrication design for the basic elements of the conceptual design.

This completes the stage of firming up the definitive design of the new product or service.

Detailed Engineering Design

This stage involves engineering a detailed definition of the product, including its components,
materials, sizes, shapes, etc. The product design is:

1. Analyzed,

2. Experimented upon, and

3. Data collected to determine if the design meets the design objectives.

Trade-offs are inevitable in the optimal design, since objectives often conflict with each other.

The final design, whether computer generated or compiled manually, includes drawings,
specifications and other documentations necessary to form the basis of product and process
development.

Did you know? GM and IBM began work in the sixties to develop a system of Computer Aided
Design (CAD); today, it has become a commonly used tool.

Originally, CAD was envisaged as a sophisticated drafting system. Today, final analysis and
verification is conducted through computer analysis and simulations. Complete and detailed
drawings and production documents are then generated.

Prototypes are used to establish the detailed engineering design before the details are finalized.
In some cases, especially in defense related products or products whose unit value is extremely
high, prototypes are often virtual prototypes.

In 1986, I was a member of a team from India that was invited to Brazil to witness the
demonstration of an armored vehicle. When we arrived in Sao Paulo, we expected to see the
physical testing on the vehicle to demonstrate its capabilities. Instead, we were taken to the main
computer center of the firm and the entire sequence of attack and defense, and its consequences
were played out on the computer. Sitting in the laboratory, we were able to assess the damage to
the vehicle, the parts that had failed and the impact of enemy shells on the body amour.

Physical Evaluation

Concurrently with the development of detailed engineering design, physical evaluation is carried
out. This includes:

1. Fabricating a working prototype of the product.

2. Testing and evaluation to confirm that it represents the solution.

Very often, the duration of this stage can be reduced if certain tasks are done simultaneously by
the organization fully utilizing the benefits of cross-functional thinking. Computer simulations
often precede physical evaluation. In currently available CAD systems, the designer can view the
part in any orientation, any scale or any cross section. The parts and the product can be seen in
the form of three dimensional images, rotated, moved, and the response to different stress
patterns seen visually on the computer screen, without building a physical prototype.

Product and Process Development

Once the detailed engineering is under way, the detailed product design provides the operations
team the basis for preparing plans for:

1. Materials acquisitions, and

2. Production.

This involves suppliers also. Suppliers are playing an increasingly important role with the
increase in outsourcing.

Operations activities involve:

1. Planning for production and control systems,

2. Computer information systems, and

3. Human resource systems.

Product Introduction

During this stage, the organization needs to monitor customer satisfaction and detect product
weaknesses so as provide feedback to the design team.

The product is also monitored for field performance and failure data. This stage is customer
support intensive. Support systems might be used to:

1. Educate users on specific applications of the product,

2. Provide warranty and repair service, and

3. Ensure easy availability of replacement parts.

This information is used to monitor, analyze, and modify the product, if necessary.

Concurrent Engineering

The basis for concurrent engineering is the significant overlap among the different phases of
product development. This can be seen from Table 2.1. A significant number of companies are
already identifying where there is a need to communicate and work together both within the
company divisions and with other organizations so as to reduce the time between the finalization
of the definitive design and the introduction of the product or service.

In high clock-speed industries, this is critical. Many companies, in this category, use the
concurrent engineering approach to speed up the product development process. Teams are
constituted that integrate the CE program. There can be three types of teams: (i) program
management team, (ii) technical team and (iii) design-build team. Concurrency involves the
parallel completion of project phases.

With an integration team ensuring the exchange of information between the teams working on
different aspects, it is possible to considerably reduce development times and create high quality
product designs that meet customer expectations. Using this technique, some companies boast
that they have reduced, by a third or more, the time needed to develop and launch new products.
They have injected more customer-related information into the process and to make it flow
better.

Example: Some instances of time-savings that have already been achieved are presented below:

1. Chrysler, Ford, and GM have reduced the interval from concept approval to production from 5
to 3 years.

2. Fourteen engineers at the Tank and Automotive Research and Development Center designed a
low-silhouette tank prototype in 16 months. By traditional methods, this would have taken 3
years and 55 engineers.

3. Northrop Grumman's CAD systems provided a first-time, error-free physical mockup of many
sections of the B2 aircraft in less than one half of the time compared to conventional methods.

Numerous examples point that increased and improved communications between all phases will
significantly reduce the time from concept to delivery of the product or service to the
marketplace. By improving the quality, timing, and synthesis of information throughout the
development cycle, companies can free themselves from prescheduled project time lines and
formalized process steps and manage their resources and work flows more flexibly. They can
keep their product options open longer, act on market information later, and reduce the delays,
bottlenecks, rework, and wasted effort inherent in today's assembly-line Product-Development
Process.

When the product development cycle is shortened, products can be designed to be more
responsive to specific customer requirements. By transforming a sequential process into a more
dynamic and information-based concurrent process, companies can quicken the pace of
development and improve a product's odds of success.

Standardization of Products and Services

Eli Whitney's use of standard parts enabled his firm to gain a competitive advantage in its bid for
an army rifle contract. Henry Ford's assembly lines were made possible by improved
manufacturing processes that allowed unskilled workers to quickly attach standard parts to
standard cars.

Standard end products enable manufacturers to use 'make to stock' market orientations, thereby
decoupling manufacturing decisions from market transactions.

Standardization of products and manufacturing inputs can also help a firm achieve:

1. Lower Product Costs: Economies of scale occur when product design costs are spread over a
large volume. Very often, a standard component in a product provides the same functionality
without paying for new engineering work and customization. Standardized products often justify
investments in more efficient production processes. Higher volume production systems often
allow the process to use less skilled employees. However, such standardized parts often result in
reduced flexibility.

2. Quicker Product Design: Standardized product interfaces often reduce product design periods
as has been demonstrated in personal computer designs. Manufacturers have benefited by
industry standards that define the protocol that must exist between each module.

3. Enhanced Product Flexibility Capabilities: Standardized features that use standard interfaces
permit designers to enhance its offerings without risking incompatibility as long as they stay
within the specified parameters.

4. Delivery: Standard products may create economies of scale in transportation. Inventories of

standard products can also be placed at sites near customers to facilitate a rapid response to any
order, often providing a competitive advantage with time-conscious customers.

5. Simplified Value Comparisons: Standardized goods help consumers to shop for the best price
or product performance. People can easily compare the cost of a 60-watt Philips bulb with a
Laxman & Sylvania bulb. It also provides consumer protection as the performance standards are
often regulated.

Though the points mentioned below are applicable to all designs, they are especially important in
designing products using standard parts. As will be observed from Figure 2.5, standard
components require little or no tooling and processing. However, in such products it is essential
to ensure and take extra care so that the product:

1. Functions so as to perform as intended;

2. Reliability is ensured so that the product will perform consistently;

3. Is maintainable so that maintenance is economical;

4. Is safe so that it will perform with minimal hazard to the user and the environment; and

5. Production process is simple, so the product can be produced at the intended costs and
volumes.

Mass Customization
The concept of mass customisation is built on the concept of postponement. This is the extreme
form of postponement as the product is subject to the final configuration as and when the
customers' specific order is known. The aim is to provide the customer with custom solutions or,
in other words, exactly what he or she wants, but to provide this with the same efficiency
achieved in mass production. This is a considerable challenge when we consider how individual
choices can vary and what it means to configure products, especially complex products, to each
customer desired configuration given that firms are always under pressure of reducing system
wide costs through reduction in inventory and the achievement of shorter lead times.

In spite of this challenge, if mass customisation can be successfully implemented, it is possible to

see intuitively that it is the key to increasing value through the provision of unique personal
satisfaction; and, of course, this has the potential to generate additional marginal revenue. A
second consideration, a more profound and fundamental one, is that the overall effect on
inventory related costs can be very positive as production is based on real demand. This is
essentially the transformation of the supply chain to a pull system at the customer end. This
means that the manufacturing process is completed when definite information regarding
customers' preferred configuration or design is available. And, you may have guessed correctly,
this information, along with the customers' willingness to wait for the product, are crucial
elements, along with the specific characteristics of the product, which would make mass
customisation successful.

Example: An example of mass customisation is what is done by Dell computers. Dell's direct
supply chain model based on Internet orders and direct shipment to customers in their preferred
configuration has made Dell the favoured subject matter of many case studies.

Deciding Product Architecture

The first step in developing a new product strategy is that the organizations should decide their
target customers, what they value, and the likely size of the market of their interest. These are
key inputs to make product architecture decisions. Product architecture should establish three
things:

1. Specify the functional capabilities of the product, its features, and post-sale servicing needs.

2. Specify the capabilities of the product delivery system and post-sale support that the customer
expects and determine the ability of the organization to provide for these, and

3. Specify the roles and risks each player within the supply chain will assume.

For businesses that make to stock or assemble to order, the business process that develops a
product's architecture must deal with a number of design issues, such as:

1. Can a 'make to stock' product meet the core needs of target customers?

2. Can a 'make to stock' product with a flexible set of optional functional modules satisfy the mix
variety demanded by the buyers who want 'assemble to order' products?

3. How can product designers divide the functions of the product among separate modules
effectively and how should the modules interface with each other?

4. How much 'technical risk' can the design take?

5. What should be in-house development and what should be contracted out?

These are product design decisions that fall beyond what was called a line of visibility in the
service area and a product's customer. But within the firm, they have important effects, not only
on product quality, but also on the resources needed to effectively perform the development
process.

Good product architecture can help designers develop products capable of providing the firm
with a competitive advantage. If being fast to market or fast to product is a strategic goal, then
the ability to achieve these ends starts with good product architecture.
CASE STUDY: Customization at BMW

— by a BMW Mini Owner

D riving a BMW-Mini often is seen as the ultimate expression of individualism. People paying
the extra premium for a small, but fun car often select a Mini to express their individual lifestyle
and to set themselves ahead from the crowd. This always seemed to be a bit a contradiction, as
few really "cool" people drove a Mini, and at least in Germany, Mini drivers seem to follow a
general pattern of belonging to a conservative upper middle-class medium aged segment living
in larger cities. Also, from a mass customization point of view, a Mini has rather limited
customization offerings. While the configurator suggests plenty of choices, they are rather
limited, especially with regard to style customization like color combinations between body,
roof, and interior. All choices seem to be perfectly balanced to deliver neatly tuned combinations
fitting the Mini brand image as seen by its corporate parents. But now, there is ultimate choice.
Customers now can freely design the Mini's roof with their very own design. The roof is one of
the signature design features of the Mini. It is often selected in a different color than the body.
And now you not only can select from 15 or so standard colors, but really design your own.

Delayed Differentiation
The concept of delayed differentiation, also known as postponement, was first suggested by
Alderson in 1950. He suggested that producers should add options or make differentiating
changes to the product close to the time of purchase by the end use customer. There are many
visible advantages of this concept. Consider the entire supply chain of a product and try to locate
the point at which the product has been manufactured or has assumed the final form. How
remote is it from the consumer in physical terms or in terms of time? If we give the final form or
configure the product close to the consumer, will it really give us any advantage? The answer to
the question is intrinsically related with the product type; and, following Fisher's cue, there are
reasons to believe that some benefit can be achieved by postponement. This can be achieved by
better control of demand information as the final configuration of the product can be manipulated
based on more up to date demand information. The manufacturing postponement should allow
better management of forecasts and demand information by shortening the manufacturing lead
time. This of course seems a very suitable approach for innovative products with short product
life cycle and high risk of obsolescence. The classic example of postponement is provided by
Benetton, the trade mark Italian apparel manufacturer. Benetton used an innovative
manufacturing and supply chain strategy based on postponement to carve out a niche market for
itself.

Postponement will not eliminate inventory or surplus material from the system but will shift it up
stream. The advantage of postponement is based on two fundamental understandings that
aggregate demand of similar products (or same product group) is more predictable compared to
demand for individual types, and that it is the finished product which has the short life cycle and
high risk of obsolescence. Postponement enables a firm to react more efficiently to demand and
is an effective strategy for innovative products. Postponement or delayed differentiation, when
taken to the extreme, has resulted in firms adopting a type of 'customization' or 'mass
customization'. Manufacturing is postponed until definite demand information is obtained in the
way of firm customer orders with specific requirements.

In economic sense, the value of delayed differentiation (also known as postponement) for a
monopolist has been extensively studied in the operations literature. It becomes near necessary to
analyze the case of (imperfectly) competitive markets with demand uncertainty, wherein the
choice of supply chain configuration (i.e., early or delayed differentiation) is endogenous to the
competing firms. It requires characterizing firms' choices in equilibrium and analyzing the
effects of these choices on quantities sold, profits, consumer surplus, and welfare. We
demonstrate that purely strategic considerations not previously identified in the literature play a
pivotal role in determining the value of delayed differentiation. In the face of either entry threats
or competition, these strategic effects can significantly diminish the value of delayed
differentiation.

In fact, under plausible conditions, these effects dominate the traditional risk-pooling benefits
associated with delayed differentiation, in which case early differentiation is the dominant
strategy for firms, even under cost parity with delayed differentiation. We extend the main model
to study the effects of alternate market structures, asymmetric markets, and inventory holdback.
The strategy of achieving competitive superiority through postponement and customization
requires, in order to reduce cost and increase manufacturing efficiency, certain design attributes.
These are commonality, modularity and standardisation.

Commonality

Commonality of components used to manufacture similar products is essential to reduce the

number of components to be held in stock to cater to all possible combinations of a customer's
customization spree. The postponement allows the products to assume their unique characteristic
as late as possible.

Example: A cellular phone manufacturer making various models can keep the component
inventory level low when almost all components used by all models are common.

The customisation is done by postponing the final assembly of the casing and perhaps some
added functional feature till customers indicate their choices for the unique combinations.

Recycling Component Commonality

Recycling refers to the recovering of materials or components for future use. There are several
reasons for recycling may be cost considerations, environmental concerns or environmental
regulations. Recycling involves the collection of used and discarded materials processing these
materials and making them into new products.
Waste recycling has some significant advantages:

1. Leads to less utilization of raw materials.

2. Reduces environmental impacts arising from waste treatment and disposal.

3. Makes the surroundings cleaner and healthier.

4. Saves on landfill space.

5. Saves money.

6. Reduces the amount of energy required to manufacture new products.

Modular Design
Another way to introduce customized products quickly is to use modular designs. In the fashion
world, this is called mix-and-match clothing. In manufacturing, assemble to order systems allow
the customer to specify a need and then either the customer or the vendor selects pre-engineered
sub-assemblies to meet a customer's need. The product is then either assembled or shipped as a
kit to the customer. This is the system that Dell uses. A wider variety of end product options is
possible but within certain limits.

Example: The product architecture Maruti Udyog Limited used in launching the Maruti 800,
Omni and Gypsy in 1984-85 from a single platform was based on a modular design concept.

Basic modules were integrated to create three different products, with a high degree of
commonality of parts. Writing on the product architecture, the General Manager of MUL in his
note referred to earlier wrote,

"It is possible for us to find a product which can, with necessary engineering inputs, with a high
degree of parts commonality, cater to the demands of the three demand segments identified
earlier. This vehicle, I am defining as a Universal Vehicle… the logic of this type of conversion
of a sedan to the Universal Vehicle is the use of mass production technology in the manufacture
of aggregates, so as to minimize the cost of builtup products….

If the objectives for 1987-88, is laid down to capture 50 per cent of the car, jeep and light
commercial vehicle market and defence requirements, the domestic sales will be of the order of
70,500 units, including spare parts requirements. With a focus on this type of volume, the project
becomes economically viable."
The key to successful product development is to know what features or parts of the end product
need to be customized to meet the expectations of the target customers.

Design for Manufacturability (DFM)

1. DFM is the process of designing a product for efficient production while maintaining the
highest level of quality.

2. It is intended to avoid more complex and expensive product designs to simplify assembly
operations.
The flowchart for the DFM process is given in Figure 2.6. Some guidelines to determine whether
the design is good enough are given below:

1. Minimize the number of parts

2. Develop a modular design

3. Design parts for multi-use

4. Avoid separate fasteners

5. Eliminate adjustments

6. Design for top-down assembly

7. Design for minimum handling

8. Avoid tools

9. Minimize sub-assemblies

10. Use standard parts when possible

11. Simplify operations

12. Design for efficient and adequate testing

13. Use repeatable and understood processes

14. Analyze failures

15. Rigorously assess value

DFM is a team-based approach that involves everyone associated with the development process.

Example: The US Navy's modeling and simulation processes for the Virginia-class submarine
reduced the standard parts list from 95,000 items for the earlier Seawolf-class submarine, to
16,000 items.

DFX - Design for 'X': DFX is a special case of DFM, where a certain area, say 'X' is selected for
attention. Improvements in 'X' are proposed after detailed analysis of the process by a team of
cross-functional experts. The performance measures are established and items are identified that
will simplify the process and at the same time provide value to the customer.
Example: Escorts Ltd., a company that was making heating elements for electrical kettles. The
holder that screwed on the element to the kettle was made as a casting. The casting had to be pre-
machined, sized, cut and turned before it was ready for threading.

The technical requirements were not critical, as the function of the part was to protect the
consumer from contact with the electrical contacts and guide the external socket to the
corresponding part of the heating element. Standard tubes were found that met the dimensional
requirements for the component. This greatly simplified the process, avoided a number of
operations, reduced the number of parts, and also reduced costs.

Service Design

Services can be classified on the basis of the degree of contact with the customer. The extent of
customer contact can be defined as the percentage of time the customer must be in the system
relative to the time it takes to perform the customer service.

Low Degree of Customer Contact

Services, with a low degree of customer contact, involve the same stages as the design of
manufactured products. The service system product development process is comparable to
manufacturing shown in Figure 2.6.

However, services often do not require a physical component, such as prototype building, etc.,
and the process technology sometimes involves different issues and considerations because the
conversion process takes place before the client or customer.

High Degree of Customer Contact

Services with a high degree of customer contact are difficult to control as the customer can affect
the time of demand, the exact nature of the service, and the quality or the perceived quality of the
service. These types of services often require a high degree of personalization and speed of
delivery.

Services normally require a much higher levels of capacity relative to demand and also require
greater flexibility. There can be tremendous diversity of customer influence and hence greater
system variability.

Differences between Product Design and Service Design

The difference between manufactured goods and services serves as the basis for the difference in
their designs. Manufactured goods differ from services in three ways:

1. The first is that a good can be inventoried, thereby giving system designers additional degrees
of freedom.
 2. The second difference relates to risk. More so than for services, the design of manufactured
products and their supporting delivery systems requires substantial up-front financial
commitments.

3. The third difference is that the product innovation process for goods are often supply chain-
wide dependent.

Example: For Intel to develop next-generation micro-processor chips, it requires coordinate its
efforts with software players, application developers and the makers of chip manufacturing
equipment.

Technological Capabilities and Product Development

Technological Definition Description

Capability
Reverse Ability to imitate an existing For example, Sharp Corp. imported a crystal radio set
Engineering product. from USA in 1925; reverse engineered it and made
Japan’s first radio, the Sharp – Dyne.
Product Development of a new Innovations that lead to improvements of existing
Innovation product. products or development of new products. The
innovations could be incremental, architectural, modular
or radical.
Process Improvements in process for Improvements in the manufacturing process, integration
Innovation product manufacturing. of steps in the manufacturing process leading to
reductions in cycle time or reductions in the number of
process types, improving the manufacturing process
yields.
Application Utilisation of an existing idea Incorporation of a new idea, design method or testing
Innovation or concept for a new concept to improve, sometimes dramatically, existing
application, or a new design, products and processes. For example, the development of
method or measurement Nylon into material for use as tyre cords.
technique.
System Innovations involving Introduction of new systems through linking or integration
Innovations integration of sub-systems and of a variety and sub-systems, and involving product,
several innovations. process and application innovations. For example,
application of fuzzy logic to improve continuous cold
rolling mills in steel manufacturing.
Core Competence Ability to leverage and Leveraging Innovations Firm’s capability to innovate in
enhance innovative activity all phases of innovation process, such as design,
from its areas of core engineering, testing and manufacturing, forms its core
competence: 1. Expansion of
 innovation in the different competence.
phases of innovation.
1. An example is Hitachi’s ability to design and produce
2. Extension of core 1MB DRAM in 1985, extended to 16 MB by 1990.
competence horizontally into a
new field. 2. For example, Hitachi’s developments of the world’s
largest Ga-As single crystal and then using this
3. Fusing core competence in technology in satellite broadcasting.
different areas.
3. For example, thermostatic ceramic textiles are a fusion
of core competencies in textiles, space and chemical
technologies.

Reliability
Reliability serves as a measure of quality of the product and service design. The quality
associated with a product often increases with the dependability of the product customer
experience.

Example: Patients expect the hospitals to have competent staff. People expect mobile networks
to be congestion free etc.

One of the emerging disciplines is Design for Reliability (DFR) that refers to the process of
designing reliability into products. This process encompasses several tools and practices and
describes the order of their deployment that an organization needs to have in place in order to
drive reliability into their products. Typically, the first step in the DFR process is to set the
system's reliability requirements. Reliability must be "designed in" to the system. During system
design, the top-level reliability requirements are then allocated to subsystems by design
engineers and reliability engineers working together.

Reliability design begins with the development of a model. Reliability models use block
diagrams and fault trees to provide a graphical means of evaluating the relationships between
different parts of the system. These models incorporate predictions based on parts-count failure
rates taken from historical data. While the predictions are often not accurate in an absolute sense,
they are valuable to assess relative differences in design alternatives.

One of the most important design techniques is redundancy. This means that if one part of the
system fails, there is an alternate success path, such as a backup system.

Example: An automobile brake light might use two light bulbs. If one bulb fails, the brake light
still operates using the other bulb.
Redundancy significantly increases system reliability, and is often the only viable means of
doing so. However, redundancy is difficult and expensive, and is therefore limited to critical
parts of the system. Another design technique, physics of failure, relies on understanding the
physical processes of stress, strength and failure at a very detailed level. Then the material or
component can be re-designed to reduce the probability of failure. Another common design
technique is component de-rating: Selecting components whose tolerance significantly exceeds
the expected stress, as using a heavier gauge wire that exceeds the normal specification for the
expected electrical current.

Improving Reliability
There are two suggested approaches for improving the reliability of a system: fault avoidance
and fault tolerance. Fault avoidance is achieved by using high-quality and high-reliability
components and is usually less expensive than fault tolerance. Fault tolerance, on the other hand,
is achieved by redundancy. Redundancy can result in increased design complexity and increased
costs through additional weight, space, etc.

Before deciding whether to improve the reliability of a system by fault tolerance or fault
avoidance, a reliability assessment for each component in the system should be made. Once the
reliability values for the components have been quantified, an analysis can be performed in order
to determine if that system's reliability goal will be met. If it becomes apparent that the system's
reliability will not be adequate to meet the desired goal at the specified mission duration, steps
can be taken to determine the best way to improve the system's reliability so that it will reach the
desired target.

We need to answer some basic questions before getting down to improving the system's
reliability. How much does each component need to be improved for the system to meet its goal?
How feasible is it to improve the reliability of each component? Would it actually be more
efficient to slightly raise the reliability of two or three components rather than radically
improving only one?

In order to answer these questions, costs must be analyzed. Cost does not necessarily have to be
in monetary terms. It could be described in terms of non-monetary resources, such as time. By
associating cost values to the reliabilities of the system's components, one can find an optimum
design that will provide the required reliability at a minimum cost. There is always a cost
associated with changing a design due to change of vendors, use of higher-quality materials,
retooling costs, administrative fees, etc. The cost as a function of the reliability for each
component must be quantified before attempting to improve the reliability. Otherwise, the design
changes may result in a system that is needlessly expensive or over-designed. Developing the
"cost of reliability" relationship will give the engineer an understanding of which components to
improve and how to best concentrate the effort and allocate resources in doing so. The first step
will be to obtain a relationship between the cost of improvement and reliability.
The preferred approach would be to formulate the cost function from actual cost data. This can
be done from past experience. If a reliability growth program is in place, the costs associated
with each stage of improvement can also be quantified. Defining the different costs associated
with different vendors or different component models is also useful in formulating a model of
component cost as a function of reliability.

For the purposes of reliability optimization, we also need to define a limiting reliability that a
component will approach, but not reach. The costs near the maximum achievable reliability are
very high and the actual value for the maximum reliability is usually dictated by technological or
financial constraints. In deciding on a value to use for the maximum achievable reliability, the
current state of the art of the component in question and other similar factors will have to be
considered. In the end, a realistic estimation based on engineering judgment and experience will
be necessary to assign a value to this input. One must note that the time associated with this
maximum achievable reliability is the same as that of the overall system reliability goal. Almost
any component can achieve a very high reliability value, provided the mission time is short
enough.

Computer-aided Design (CAD)

Computer-aided Design (CAD), also known as Computer-aided Drafting, is the use of computer
software and systems to design and create 2D and 3D virtual models of goods and products for
the purposes of testing. It is also sometimes referred to as computer assisted drafting.

Advantages of CAD

In the field of product development there are often immense costs associated with the testing of
new products. Every new product must undergo at least a small measure of physical testing – not
only to ensure that it meets minimum safety standards but also to ensure that it will successfully
operate under the range of conditions to which it can expect to be exposed.

Example: The wing of an airplane must undergo stress tests to ensure that it will retain its
integrity even under the most grueling weather and turbulence conditions before it is approved
for use.

Unfortunately, this testing can be ruinously time-consuming and expensive. If an aeronautical

company has to physically build dozens of wings in the course of testing a new design then the
final cost and time scale of the project can be far higher than projected. Fortunately, there is no
need to physically test all of these designs. Instead, developers can run virtual stress tests using
computer-aided design, substituting a wind tunnel for a CAD application that can simulate the
same conditions.
The benefits of virtual simulations are obvious. In addition to a reduction in the cost of product
development and the time required to run tests there is also the advantage that conceptual designs
can be modified instantly as the tests progress.

Perhaps one of the best examples of this versatility can be seen in the design of the airplane
wing. The science of aerodynamics is complex, and it is often the case that certain wing shapes
can create unexpected turbulence under certain conditions. When this occurs during physical
testing it can be a challenge to discover the problem and make alterations. When running virtual
tests using CAD, however, alterations to the design can be made quickly and easily, so new
designs can be tested and retested until the problem is resolved.

Business Applications for CAD

Idea Generation

With the limiting factor of prototype manufacture removed, CAD allows the process of idea
generation to become much more flexible. Enterprises can afford to be more open to new ideas
and suggestions than in the past – from both employees and potential customers. Suggestions for
new products can be quickly tested at a much lower cost than in the past.

Augmentation

CAD opens up the possibility to make slight improvements on new product designs instantly.
While this can be of great benefit in the design of a new product it can also be extremely useful
for investigating possible improvements to existing products – or even reverse engineering and
augmenting the products of competitors.

Market Testing

Through designing new products using CAD it becomes possible to begin the process of market
testing much earlier than in the past. Focus groups can be presented with virtual mock-ups of
new products more quickly than would be possible with physical prototypes, and alterations can
be made based on their feedback almost instantly. Since modifications can be made simply by
entering new data into the CAD software, updated virtual mock-ups can be presented to the same
audience for further feedback during the same session.

CASE STUDY: Designing Maruti 800

This note was given by the General Manager of Maruti Udyog Ltd. to its Vice Chairman, as a
basis for selection of the product that needed to be selected for manufacture. The nationalization
of Maruti in 1981 created an opportunity for the government to revamp the Automotive Industry
in the country. The challenge of revamping the Automotive Industry could be met if Maruti
could manufacture quality products at competitive prices. The most important decision before
the new company was the selection of the right product and product mix, as many projects falter
due to the choice of inappropriate technology or product mix at the start of the project.

The positioning of Maruti Udyog was reflected in the key words: modern and contemporary;
lower operating costs; commercially viable products; modern process technology. Its objectives
were:

1. To offer vehicles which are modern and contemporary in design so as to raise the level of
automotive technology within the country;

2. To manufacture these vehicles with operating costs comparable to world standards and lower
than that of existing vehicles, for improved consumer values;

3. To generate economies of scale and thereby create commercially viable products, introducing
modern process technology in the engineering industry.

The price difference between a passenger car and scooter/motor-cycle was over 60,000 per unit.
There was an extremely large market of scooter/motor-cycle owners, who could be developed
into car owners. No manufacturer had been able to service this market. In case, this market could
be serviced, it would create a totally new demand segment and would be independent of
conventional demand for passenger cars, which had been stationary for quite some time. The
new demand would generate primarily from the high-income group owners of two wheelers.

To capitalize on this market segment, the traditional concept of cars would need to be abandoned
and the approach to the passenger car would have to be unique and revolutionary. I have looked
at compacts and noticed the following points:

1. Have superior performance characteristics, compared to existing cars manufactured in

India.
2. Around 15-20 per cent more fuel-efficient than the medium cars of the same
manufacturer.
3. Around 25 per cent less expensive than the medium car of the same manufacturer

We need to look at subcompacts and not compacts. Sub-compacts have further advantages in
terms of fuel efficiency and price over the compacts. Compacts have traditionally been
manufactured by high production volume technology. The manufacturing cost of this type of
vehicle is highly dependent upon the volumes that can in order to reach BEP and start generating
surplus be generated. Sub-compacts do not need to be manufactured in very large numbers; the
sub-compact is, therefore, less sensitive to volume requirements than other categories of
passenger cars.

If volume is not the predominant criteria in the manufacture of sub-compacts, export of these
vehicles is not a very important requirement. An inexpensive, fuel-efficient and modern car
catering to the needs of the middle and upper-middle class can, therefore, be designed with
specifications relating to Indian needs.

It is possible for Maruti to manufacture a small car more closely related to a sub-compact rather
than a compact, which will meet the aspirations of the general public. Specifications for such a
car need to be drawn up in detail so as to incorporate the desirable characteristics that one is
looking for. The buying price should be less than 40,000 for a consumer. Keeping in view these
objectives, draft specifications have been described in the Box below:

Though prima facie the cost objectives seem to be extremely ambitious, it is my belief that it will
be possible to manufacture such a vehicle at the prices that have been mentioned based on a
sympathetic Government Tariff structure.
1. Selling price is the ex-factory value of the product. All government taxes and levies are extra.

2. Higher overheads have been assumed to cover higher depreciation, amortization and interest
costs.

Box 2 gives an analysis of how this price has been theoretically arrived at. It may be noted that
sub-compacts are also sold at similar prices.

The fact that Maruti got its product selection right has provided it a competitive advantage that
has been retained by the company for the last two decades. In spite of the entry of international
companies into the automobile sector, no manufacturer has been able to break the stranglehold of
the Maruti 800.

According to Arindam Bhattacharya of A.T. Kearney, "The Maruti 800 is a great product. No
other car in the world can match its functionality and price... There is need for such a car, which
competes not with other cars but two wheelers."

Summary

 Customer satisfaction, functionality of the product, cost considerations, ease of

production and maintenance are some of the major considerations while designing any
product or service.
 The legal issues involved in designing products and services are- patents, trademarks,
copyrights, product liability and Uniform Commercial Code whereas the Environment
Protection Act governs the issues relating the environment.
 The product lifecycle model is a simple representation of the cumulative impact of
changes in the business environment on the life of a manufactured product.
 Statistical regularities show that the product lifecycle can be used to forecast the way the
product attributes, demand, production and competition will change as the product
matures.
 A mature industry can continue indefinitely. Competitors with more abundant resources,
cheaper labour or subsidized capital can obtain a competitive advantage.
 The length and pattern of the Product Lifecycle can vary significantly. There is no reason
to believe that all products inevitably pass through all four stages, e.g., fad items,
consumer resistance, and introduction of superior new product.
 Without products, there would be no customers. Without customers, there would be no
revenue. Developing a new product is a major activity.
 Organizations are more concerned about being the first to develop an idea or design a
product so that they can protect their markets. Being able to design, develop, and
introduce a new product quickly gives a firm 'fast to market' capabilities.
 The basis for concurrent engineering is the significant overlap among the different phases
of product development.
 Delayed differentiation concept suggests that producers should add options or make
differentiating changes to the product close to the time of purchase by the end use
customer.
 Commonality of components used to manufacture similar products is essential to reduce
the number of components to be held in stock to cater to all possible combinations of a
customer's customization spree.
 The concept of mass customisation is built on the concept of postponement. This is the
extreme form of postponement as the product is subject to the final configuration as and
when the customers' specific order is known.
 Standard end products enable manufacturers to use 'make to stock' market orientations,
thereby decoupling manufacturing decisions from market transactions.
 DFM is the process of designing a product for efficient production while maintaining the
highest level of quality.
 Services can be classified on the basis of the degree of contact with the customer. The
extent of customer contact can be defined as the percentage of time the customer must be
in the system relative to the time it takes to perform the customer service.
 Reliability serves as a measure of quality of the product and service design. The quality
associated with a product often increases with the dependability of the product customer
experience.
 There are two suggested approaches for improving the reliability of a system: fault
avoidance and fault tolerance. Fault avoidance is achieved by using high-quality and
high-reliability components and is usually less expensive than fault tolerance.
 When running virtual tests using CAD, alterations to the design can be made quickly and
easily, so new designs can be tested and retested until the problem is resolved.

Keywords

CAD: Use of computer software to design and create 2D and 3D virtual models of goods
and products for the purposes of testing.

Commonality: Used to manufacture similar products.

Concurrent Engineering: Involves the parallel completion of product phases based on

overlap among different phases of business development.

Customization: Product is subject to the final configuration as and when the customers'
specific order is known.

Delayed Differentiation: Adding differentiating changes to the product close to the time
of purchase by the end use customer.

Design for Manufacturability: Process of designing a product for efficient production

maintaining highest level of quality.

Design for Reliability: It refers to the process of designing reliability into products.

Modular Design: System that allows pre-engineered sub-assemblies to meet a customer's

need.

Product Architecture: Establishes functional capabilities of the product, its features and
post sale servicing needs.

Product Lifecycle: Simple representation of impact of changes in business environment

on products.

Recycling: Recovering of materials or components for future use.

Reliability: It serves as a measure of quality of the product and service design.

Standardization: Maintaining a standard quality and features for all designs.

Technology Lifecycle: It is used to forecast the way demand, production and competition
will change as product matures.