Definition of Product planning:
Product planning is the evaluation of the range, specification, and pricing of new and existing products according to the present and future market requirements and competition.
Planning of product is to satisfy the company objectives and to specifying the requires research, design, and development support.
Concept of Product Planning:
In the planning activity, both existing and new products must be included and it follows the activity itself should deal with the proper balance between old and new products.
Product planning usually represents the activity that links the company with its market which is directly concerned with the development of the company.
Product planning can be done by top management or by line management but successful product planning can only occur within a clear framework of goals and objectives laid down by bord of directors.
Objectives of Product planning:
Elements of product planning:
- Marketing and Market analysis.
- The performance of feasibility studies.
- Advanced product planning.
1.Marketing and Market analysis:
2. Performance of feasibility studies:
- A detailed requirement analysis.
- Identification of alternative configurations.
- Screening and evaluation of available alternatives. And,
- Selection of preferred approach.
system operational concept consists of following information-
- Identification of the ultimate mission of the system.
- Identification of quantity of equipment, facilities etc.
- Determine the time needed for complete the process or how many hours per day, operation cycle per month, etc.
- Details of the environmental condition at which system expected to operate.(eg: temperature, humidity, mountain or flat terrain, etc)
System maintenance concept –
- Determine the requirement of level of maintenance support, repair policy, effectiveness measurement, etc.
- It provides the basis to establish the requirement for total logistic support. The maintenance concept is completed by logistic analysis, leads to the identification of maintenance tasks, frequent, facilities and data.
- Level of maintenance includes- organizational maintenance, intermediate maintenance and depot maintenance.
- Organizational maintenance is performed at the operational site. Maintainance at this level limited to periodic check of the equipment’s performance, cleaning of equipment, repair, etc.
- Intermediate maintenance is perform in mobile or semi-mobile organizations at the customer’s locations. In this level item, is removed or replaced.
- Depot maintenance is the highest type of maintenance and supports the accomplishment of tasks above.
3.Advanced Product planning:
2. Product specification and plans– specification covers the technical requirements for the product and planning documentation includes all management related activity.
3. Product acquisition plan refers to a process of acquiring a product or system commencing with the identification of the need and extending through the delivery of the product to customers. it may involves research, design, production, and evaluation activities. Materials under product acquisition plan must includes details of all acquisition functions, scheduling tasks using bar chart, PERT, Gantt chart, line of balancing, etc.
4. Product evaluation plan indicates requirements of the product in terms of range, accuracy, capacity, power, availability, reliability, maintainability, etc must be evaluated to ensure completion.
- Test and evaluation requirments.
- Categories of test and evaluation.
- Test preparation phase.
- Test and evaluation procedure.
- Data collection, analysis and corrective action methods.
- System network, modification and retest procedure.
- Test and evaluation reporting.
- Internal Proposal is generated within the factory and directed for approval to the management of the company to generate a scope of work.
- External proposal generated within the company and directed to an outside agency.
Advantages of product planning:
- Improved the system of the organization for regular and timely delivery,
- Better supplier communication for raw materials procurement,
- Product planning reduced investment in inventory,
- Reduced production cost by increasing efficiency,
- Smooth flow of all production processes,
- Proper production planning reduced waste of resources,
- Production cost savings that improve the bottom line.