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Production & Marketing The Purpose of Manufacturing and Components needed to make it Work Conception to Distribution Identify Need Market Analysis Conceptualization Concurrent Engineering Research & Development Product and Process Development Production and Continuous Improvement Marketing and Distribution Market Analysis • What do we make? and • Why do we make it? » These are rhetorical questions Market Analysis • Economists analyzed industrial markets and came up w/ 3 different analysis approaches: 1.Commodity Analysis 2.Institutional Analysis 3.Functional Analysis What do each of these mean? Market Analysis • What is Marketing? • Who use Marketing techniques and why? • What do we Market? – Not only: • Goods and Services But also: • Ideas • Places • Personalities • Events Market Analysis • Roles of Marketing – Determines best opportunities – 4 P’s of marketing: • • • • Product Price Place Promotion Market Analysis • What does marketing include? • How many can you list? [I can think of at least nine (9)!] Market Analysis • Who makes up a marketing team? • Can you list who they might be? [My list has 8 on it ] – Here’s couple to get you started: • Brand manager • Product manager • Customer service personnel Market Analysis • The strategic phases of marketing are… 1.Segmentation 2.Targeting 3.Positioning • Now what do you think these titles stand for? Market Analysis • Philosophy of Marketing – what is it? – ? • What is the role of Marketing? – ? • Since Marketing is so important, who ultimately is responsible for Marketing within any company? – ? Market Analysis • Philosophy of Marketing – what is it? – Customer satisfaction • What is the role of Marketing? – Measure & gauge customer expectations • Since Marketing is so important, who ultimately is responsible for Marketing within any company? – Everyone within a company CONCEPTUALIZATION Conceptualization • Specifications – the main task is to determine the design specifications or clarify the design requirements. Conceptualization Conceptualization Design for Manufacturability Function Safety Cost Customers’ Needs Final Design Reliability Shipping Serviceability Style Time to Market Assembly Quality Customization Recycling Expansion Human Factors Upgrading Pollution Future Designs Concurrent Engineering • Reduces the deign cycle & improves product value • Integrates design, manufacturing & support • Manufacturing influences design from first concepts Research & Development Research & Development • What is R&D? • What is the foundation of any Innovation? • How old is the concept of R&D? • Who created the first modern R&D type facility? • When did the benefit of R&D come into common usage in our society? Research & Development • How do new ideas, products or processes come into being? • What are the goals of R&D? – And how do they affect the development process? Research & Development • Edison’s lab in NJ was the first modern R&D lab – It was started in ~1878 – Can you name any of the inventions that came out of this lab? • The National Bureau of Standards was started in 1931 – 31 years after it’s German counterpart – Why would the NBS be important to an inventor? Research & Development • American companies started to take R&D seriously after WW I – Companies like GE, Westinghouse, Eastman Kodak, AT&T, Standard Oil, etc. • But it wasn’t until WW II that they become common place and fully funded. – Why do you think this was? Research & Development • Major design efforts like: – RADAR • Do you know what this acronym stands for? – Atomic bombs – V-1 Rockets • Could not be developed by the loan inventor – It requires huge research labs to develop a working solution! Research & Development • Name the 3 types of Research Labs you might find in industry? Research & Development • Name the 3 types of Research Labs you might find in industry? 1. Research Lab 2. Development Lab 3. Test Lab Research & Development • What are the two types of basic research? Research & Development • What are the two types of basic research? 1.Pure 2.Applied Research & Development • Finally, if R&D is to be a key contributor to a company’s success – R&D personal must report to the highest levels within a company; • Minimally a VP Product & Process Development • Products are made up of parts +/or components – New or existing – Commercially available vs. Inventing new parts – Cost – Qty required – When are parts needed Product & Process Development • Process – How will the part/component be manufactured? • • • • • First lay out the fabrication process What steps are required to build the product What rates will be required to meet demand? Can we use existing Mfg. lines? Do we need to build new facilities? Production • Is the activity that takes your concept from an idea and produces a real, concrete product you can touch & feel… • All material requirements are defined • All material needs are ordered and delivered to the production line Production • All Production needs come together • The investment needed to produce product is finalized • The investment in – – – – Man Machine Materials Mfg Facilities Key Terms • • • • • JIT – Just – in – Time manufacturing Real Time Inspection Total Quality Management CNC – Computer Numerical Controlled Flexible MFG Systems Marketing • How much do we make? • When do we make it? and • Where & how do we sell it? Marketing • Defines – – – – Who the customer is Where the customer lives How much will that customer buy How often will that customer buy • This info is supplied to MFG to determine capacity needs Distribution • This area covers 2 key elements: – How a company gets the product from the factory to the customer and – In what type of way is the customer actually sold the product? Distribution • How will product get to market? – – – – Your own Fleet Post/UPS/ FEDEX Rail Truck Distribution • How or where will the product be sold? – – – – – – Retail Wholesale Distributors MFG’s Reps Direct Sales – Internet or telesales eBay PROFIT • Why do you think a company exists? – Can you come up with other reasons than profits? – If there are other reasons where does profits rank in the grand scheme of the universe?