Introducing New Products and Services
The following video is on Introducing New Products and Services
Monday, May 26, 2008
Life Cycle of a Production System
Life Cycle of a Production System
Product management is an organizational function within a company dealing with the planning or marketing of a product or products at all stages of the product lifecycle. Product Management is also a collective term used to describe the broad sum of diverse activities performed in the interest of delivering a particular product to market.
Understanding Product Life Cycle plays an important role in this.
Product Life Cycle Management is the succession of strategies used by management as a product goes through its product life cycle. The conditions in which a product is sold changes over time and must be managed as it moves through its succession of stages.
Product life cycle
The product life cycle goes through many phases and involves many professional disciplines and requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures; whereas product lifecycle management (PLM) has more to do with managing descriptions and properties of a product through its development and useful life, mainly from a business/engineering point of view.To say that a product has a life cycle is to assert four things that products have a limited life, product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller,profits rise and fall at different stages of product life cycle, products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life cycle stage.
The different stages in a product life cycle are:
1. Market introduction stage
* cost high
* sales volume low
* no/little competition - competitive manufacturers watch for acceptance/segment growth losses
* demand has to be created
* customers have to be prompted to try the product
2. Growth stage
* costs reduced due to economies of scale
* sales volume increases significantly
* profitability
* public awareness
* competition begins to increase with a few new players in establishing market
* prices to maximize market share
3. Mature stage
* Costs are very low as you are well established in market & no need for publicity.
* sales volume peaks
* increase in competitive offerings
* prices tend to drop due to the proliferation of competing products
* brand differentiation, feature diversification, as each player seeks to differentiate from competition with "how much product" is offered
* Industrial profits go down
4. Decline or Stability stage
* costs become counter-optimal
* sales volume decline or stabilize
* prices, profitability diminish
* profit becomes more a challenge of production/distribution efficiency than increased sales
Facility Layout Planning in Production Management
Facility Layout Planning in Production Management
This video is about Facility Layout Planning in Production Planning and Control. You can find more videos on Production Planning at http://productionplanning.blogspot.com
More videos on Production Planning are available at Production Planning Videos. Although we do our best to collect the most related items to related production planning topic, the Production Planning videos are collection of items from various resources not necessarily reflecting our views.
This video is about Facility Layout Planning in Production Planning and Control. You can find more videos on Production Planning at http://productionplanning.blogspot.com
More videos on Production Planning are available at Production Planning Videos. Although we do our best to collect the most related items to related production planning topic, the Production Planning videos are collection of items from various resources not necessarily reflecting our views.
Aggregate Production Planning
Aggregate Production Planning
This video is about Aggregate Production Planning Basic Concepts.
Aggregate planning is an operational activity which does an aggregate plan for the production process, in advance of 2 to 18 months, to give an idea to management as to what quantity of materials and other resources are to be procured and when, so that the total cost of operations of the organisation is kept to the minimum over that period.
The quantity of outsourcing, subcontracting of items, overtime of labour, numbers to be hired and fired in each period and the amount of inventory to be held in stock and to be backlogged for each period are decided. All of these activities are done within the framework of the company ethics, policies, and long term commitment to the society, community and the country of operation.
Aggregate planning has certain prerequired inputs which are inevitable. They include:
* Information about the resources and the facilities available.
* Demand forecast for the period for which the planning has to be done.
* Cost of various alternatives and resources. This includes cost of holding inventory, ordering cost, cost of production through various production alternatives like subcontracting, backordering and overtime.
* Organisational policies regarding the usage of above alternatives.
"Aggregate Planning is concerned with matching supply and demand of output over the medium time range, up to approximately 12 months into the future. Term aggregate implies that the planning is done for a single overall measure of output or, at the most, a few aggregated product categories. The aim of aggregate planning is to set overall output levels in the near to medium future in the face of fluctuating or uncertain demands. Aggregate planning might seek to influence demand as well as supply."
Schroeder, R.G (2007). Operations management. New York, New York: McGraw-Hill Inrwin
Aggregate Planning Video
More videos on Production Planning are available at Production Planning Videos. Although we do our best to collect the most related items to related production planning topic, the Production Planning videos are collection of items from various resources not necessarily reflecting our views.
This video is about Aggregate Production Planning Basic Concepts.
Aggregate planning is an operational activity which does an aggregate plan for the production process, in advance of 2 to 18 months, to give an idea to management as to what quantity of materials and other resources are to be procured and when, so that the total cost of operations of the organisation is kept to the minimum over that period.
The quantity of outsourcing, subcontracting of items, overtime of labour, numbers to be hired and fired in each period and the amount of inventory to be held in stock and to be backlogged for each period are decided. All of these activities are done within the framework of the company ethics, policies, and long term commitment to the society, community and the country of operation.
Aggregate planning has certain prerequired inputs which are inevitable. They include:
* Information about the resources and the facilities available.
* Demand forecast for the period for which the planning has to be done.
* Cost of various alternatives and resources. This includes cost of holding inventory, ordering cost, cost of production through various production alternatives like subcontracting, backordering and overtime.
* Organisational policies regarding the usage of above alternatives.
"Aggregate Planning is concerned with matching supply and demand of output over the medium time range, up to approximately 12 months into the future. Term aggregate implies that the planning is done for a single overall measure of output or, at the most, a few aggregated product categories. The aim of aggregate planning is to set overall output levels in the near to medium future in the face of fluctuating or uncertain demands. Aggregate planning might seek to influence demand as well as supply."
Schroeder, R.G (2007). Operations management. New York, New York: McGraw-Hill Inrwin
Aggregate Planning Video
More videos on Production Planning are available at Production Planning Videos. Although we do our best to collect the most related items to related production planning topic, the Production Planning videos are collection of items from various resources not necessarily reflecting our views.
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