Introduction to product management

` In product management I learned on how to identify

customer’s unsolved problems and create a product experience.
On this subject, I witness the importance of a product brand,
design and competition. Product management’s purpose is to
create customer value and measurable business benefits. Prior to
this class, I had the notion that being a PM required you to have a
strong technical background, from being able to program and debug
code, to being able to develop a spec for a product. That is one of the
reasons I did not see myself pursuing a role as a PM in the future since
I was studying business administration. To my surprise, I learned that
this was not the case. Research actually points to business as being the
most common major for Product Managers. I also thought that Product
Managers were in charge of innovation, developing new features, and
launching new products, but in reality PM is about being able to add
value and improve an existing product, not build something new.

I think that the most valuable contribution of a product manager to a business is to provide
focus. Many teams and businesses tend to revisit old ideas, or sometimes have too many
options on the table to consider for future projects. “A good Product Manager will prioritize
the highest-potential ideas and cut (or more correctly, “icebox”) the rest. These can be
considered in the future, or never.” Ultimately, Product Managers play an essential role in
considering the opportunity cost of projects and ideas, which allow businesses to work on
what adds the most value to their customers and their organization, and disregard working on
costly and exhaustive projects that will hurt the performance of a business.

CHAPTER 2.1 – Process Selection and Facility Layout

Process selection is the way an

organization decides to develop a product or
deliver a service. The selection process will agree
on the kind of technology, processing, and other
associated activities. These choices make or break
the accomplishment of an organization.

PRODUCTION PLANNING & CONTROL (PPC)

• PPC is the powerful tool available to the mgmt to achieve the stated objective.
Production planning starts with the analysis of data like demand & delivery schedule
etc & the basis of information available and resources like machine, material & men.
 • So, PPC is the process of directing & coordinating of firms resources towards
attaining prefixed goal.

TYPES OF PRODUCTION
1. BATCH PRODUCTION
Batch production is the manufacturing of limited number of product produced
at regular intervals & stocked in warehouse as finished goods.
Eg. Chemical , paint & motor vehicles etc

2. MASS & FLOW PRODUCTION

Mass as well as flow production are characterized by the manufacturer of
several number of a std product and stocked in the warehouses as finished goods
awaiting sales. The goods under mass production are manufactured either at a single
operation or a series of operation on one machine.
Eg: Assembly shop of automobiles, radios, electric fans.

3. PROCESS PRODUCTION
Process production is characterized by the manufacture of single product
produced and stocked in the warehouses awaiting sales.
Eg: Sugar, Steel, Paper, Cement plants.

4. PROJECT PRODUCTION
Project production is characterized by complex sets of activities that must be
performed in a particular order within the estimated expenditure.
Eg: construction of Roads, Buildings etc.

• 5. JOBBING PRODUCTION
Jobbing production is characterized by the manufacture of one or few number
of a single product designed and manufactured strictly to customer’s specifications
within the given period and within the price fixed prior to the contract. Eg: general
repair shop, tailoring shops.
Facility layout

Facility layout is simply the way a

facility is arranged in order to maximize
processes that are not only efficient but
effective towards the overall
organizational goal.

Layout- the configuration of

departments, work centers and equipment,
with particular emphasis on movement of
work through the system.
 The U-line arranges machines
around a U-shaped line in the order in
which production operations are
performed. Operators work inside the U-
line. One operator supervises both the
entrance and the exit of the line.
Machine-work is separated from
operator-work so that machines work
independently as much as possible.
The New Products Process
The phase of new products process
 1. Opportunity Identification And Selection
Active and passive generation of new product opportunities as spin outs of the
ongoing business operation. New product suggestions, changes in marketing plan,
resource changes, and new needs/wants in the marketplace. Research, evaluate,
validate, and rank them (as opportunities, not specific product concepts).
2. Concept Generation
Select a high potential/urgency opportunity, and begin customer involvement.
Collect available new product concepts that fit the opportunity and generate new ones
as well.
3. Concept/Project evaluation
Evaluate new product concepts (as they begin to come in) on technical,
marketing, and financial criteria. Rank them and select the best two or three. Request
project proposal authorization when have product definition, team, budget, skeleton of
development plan, and final PIC.
4. Development
Specify the full development process, and its deliverable. Undertake to design
prototypes, test and validate prototypes against protocol, design and validate
production process for the best prototype, slowly scale up production as necessary for
product and market testing.
5. Launch
Commercialize the plans and prototype from development phase, begin
distribution and sale of new product and manage the launch program to achieve the
goal.
Objective of Production Management

The main objective of production

management is to produce goods and services of
the right quality, right quantity, at the right time
and at minimum cost. It also tries to improve the
efficiency. An efficient organization can face
competition effectively. Production management
ensures full or optimum utilization of available
production capacity.

Production management also called

operations management, planning and control of
industrial processes to ensure that they move
smoothly at the required level. Techniques of
production management are employed in service
as well as in manufacturing industries. It is a
responsibility similar in level and scope to other
specialties such as marketing or human resource
and financial management. In manufacturing
 The scope of production management applies to directing, controlling, planning, and
organizing production operations. This is the process that helps encourage raw
material conversion into finished goods so clients can efficiently leverage them.

Brand Management System

A brand management system is a process used to manage your brand, keeping all
assets, messaging and resources centralized. In The Importance of Strategic Brand
Management, Oskar Duberg, Content Marketing Manager for Frontify explains:

“Keeping your communications on-brand is one of

the most vital aspects of a fine-tuned brand
management strategy. Whether you’re a one-
person show or a global enterprise (especially
then, actually), centralizing your brand definitions,
assets, creative’s, and essentials is crucial.”

A centralized brand management system makes it

easier to maintain consistency from one piece of
content or marketing asset to the next. Duberg
suggests that you can do this in a few ways:

 Create brand guidelines to show relevant stakeholders how to use your brand. “This
would often be associated with a set of creatives and assets – either on a Google Drive
or in Dropbox,” explains Duberg.
 Create “a digital brand home for your company, living in the cloud.” This enables
you to have a centralized, always-up-to-date, version of your brand guideline – along
with all your assets – that can be shared throughout an organization.

What is brand?
Name, brand, sign, symbol, or design or a combination of them intended to
identify the goods and services of one seller or group of sellers and to differentiate
them from those of competition.
Brand equity is a key factor in a company's success, as it can influence
consumer decisions, marketing strategies, and potential partnerships.

Chapter 5
Feasibility and Business Planning

Business concept (4 Elements)

1. The Product/service
A product is a tangible item that is put on the market for acquisition, attention,
or consumption, while a service is an intangible item, which arises from the output
of one or more individuals.
2. The Customer
A customer is an individual or business that purchases another company's
goods or services. Customers are important because they drive revenues; without
them, businesses cannot continue to exist.
3. The Benefit
A business benefit is a tangible outcome of an action or decision that
contributes towards reaching one or more business objectives. That definition
serves well for many business planning, decision support, and other analysis
needs.
4. The Distribution
Distribution is the process of making a product or service available for the
consumer or business user who needs it, and a distributor is a business involved
in the distribution stage of the value chain.

FEASIBILITY ANALYSIS CONSIDERATIONS

customers
product and
industry
service
 Testing the Industry
• The broadest level of feasibility analysis looks at the industry in which the business
will operate.
You, the entrepreneur, will examine factors, such as…
• health of the industry
• trends/patterns of change
• major players

Looking at Start-Up Resources

A strong business model is important to investors because it describes how
you intend to make money with your business concept.
In your feasibility study, you should calculate the costs of..
Equipment, Furnishings, a Facility, Inventory, Supplies, Employees, Product
Development, Operating Expenses

The Parts of the Business Plan

Cover Page Market Analysis

Title Page Competitive Analysis
Table of Contents Marketing Plan
Executive Summary Operations Plan
Management Plan Organizational Plan
Company Description Financial Plan
Product and Service Plan Growth Plan
Mission and Vision Statements
Contingency Plan
Industry Overview Supporting Documents
The executive summary should include the most important information from
each section of the business plan.
Many times, investors and lenders rely on the E.S. to help them decide whether
the concept interest them and is worth pursuing.

VISION AND MISSION STATEMENTS

The vision statement and mission statement state the guiding principles by
which a company functions.

Common Mistakes in
Preparing Business Plans

projecting exaggerated growth l

trying to have expertise in all are
claiming performance above ind
underestimating the need for
capital

WALT DISNEY

SOURCES OF BUSINESS PLAN INFORMATION

Small Business Administration (SBA)

Service Corps of Retired Executives (SCORE)

Small Business Development Centers (SBDCs)

chambers of commerce

trade associations