1. Superior Products, Services
and Process
By
Mahima Prasad
HDF SCHOOL OF 1
MANAGEMENT

2. Plan of Presentation
 Objective
 Basic concept
 Attractive market segment & competition
 Maintaining competitive advantage
 Organisation for Production
 The Process of new product
development/Improvement
HDF SCHOOL OF 2
MANAGEMENT

3. Objectives
 To demonstrate how an organization moving
towards total quality needs to begin with the
market, its customers, and produce goods ad
services that consistently satisfy customers , and
keep competitors at bay.
 To spell out the approaches an organization has
to pursue in order to produce goods and services
that are truly world-class, and sufficiently in
demand to provide for an organization’s
competitive advantage.
HDF SCHOOL OF 3
MANAGEMENT

4. Basic Concept
• Product
• Service
• Process

5. Attractive market segment & competition
GOVT Technological
& The Bargaining power of customers Changes
Regulatory
Intervention
The threat The threat of
The extent of
of direct
substitute
new rivalry products or
entrants to among services
the market competing
firms
The Bargaining power of supplier
Growth and Volatility of market demand
HDF SCHOOL OF 5
MANAGEMENT

6. Maintaining competitive advantage
• Objective of competitive advantage is to make a
profit.
• Profit based on providing value to customers.
• Achievable and sustainable.
How can a business assure value to customers?
A good competitor knows:
• Which products and services it offers.
• Who its customers are.
• Who its competitors are.

7. Sources of relevant information
a. Feedback on the performance of
current products
b. Customer complaints
c. Reports of market research agencies
d. Data obtained by a firm’s own
marketing research department

8. Product Design Process
Step 1 - Idea Development - Someone thinks of a need and
a product/service design to satisfy it: customers,
marketing, engineering, competitors, benchmarking,
reverse engineering
Step 2 - Product Screening - Every business needs a
formal/structured evaluation process: fit with facility and
labor skills, size of market, contribution margin, break-
even analysis, return on sales
Step 3 – Preliminary Design and Testing - Technical
specifications are developed, prototypes built, testing
starts
Step 4 – Final Design - Final design based on test results,
facility, equipment, material, & labor skills defined,
suppliers identified

9. The Process of new product
development/Improvement
a. Conception and feasibility phase
b. Detailed design phase
c. Execution phase
a:Prototype testing
b:Test marketing
a. pre-production phase
b. Customer use

10. The importance of design reviews
 It meets all the specified performance criteria
 It reflects the “blueprint” for a product or a
service
 It meets all the statutory requirement that
might be associated with the product or it’s
operating conditions
 It is detailed to provide information on using
conditions and maintenance schedules

11. Tools for effective product development
1:Quality function deployment matrix
2:Value analysis matrix
3:Failure mode and effect analysis(FMEA)
4:Fault tree analysis