The process of developing a new product is a complex set of various activities, closely related to one another. The process of product design and selection of technology, based on which production is organized, is an important process in the creation of a product. Product design and capacity determination are directly related to the selection or modification of technological processes intended to release a new product developed by the company.
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At the first stages of concept development and product planning, a comprehensive analysis of information about sales market opportunities, competition conditions, technical capabilities, and requirements for a new product is carried out. After such an analysis, the design of a new product is determined (Uz Zaman et al., 2018). It is developed based on its conceptual idea and must meet the needs of the market, the required level of product quality, and investment opportunities. It must take into account the financial implications of launching a new product as well.
It is also necessary to determine the capacity of production. Process selection refers to strategic decisions that determine which technologies should be used. For example, if the product will be produced in small volumes, one worker can be selected to manufacture small batches of items (Uz Zaman et al., 2018). However, if the volume of production is large, it is advisable to start creating an assembly line. The choice of the type of production stream is usually based on the requirements for the production capacity.
All the mentioned factors play an important role in determining which type of production process will be applied. The choice of process and equipment directly depends on the projected demand for manufactured products. The selection of the correct process is especially important if the product involves significant initial investment and fixed costs, and variable costs change mainly in proportion to the volume of production.
Uz Zaman, U. K., Rivette, M., Siadat, A., & Mousavi, S. M. (2018). Integrated product-process design: Material and manufacturing process selection for additive manufacturing using multi-criteria decision making. Robotics and Computer-Integrated Manufacturing, 51, 169-180. Web.