Question 2

A.

Taking into consideration the need for new product development, below are the steps taken in
new product development starting from the idea to a product that is ready for sell:

Stage 1: Idea Generation

At this point, the companies have a product concept or creation in mind, but they must undertake
market research and identify their customers' needs and wants. One of the most common
approaches for analyzing their product concept is the SWOT analysis method, which involves
examining their suggestions Strengths, Weaknesses, Opportunities, and Threats. Additionally,
they should consider producing several versions of their concept for various scaled initiatives.
The primary goal of stage 1 should be to organize brainstorming sessions where solving client
concerns play an important role.

Stage 2: Idea Screening

Having a proof of concept (POC) for a new product development idea should take place since it
helps assess the viability of the concept. It is pointless to focus on a concept that is not physically
possible to create. As a result, the focus of this New Product Development stage is on selecting
the one concept with the greatest chance of success. Place all ideas on the table for internal
evaluation.

Stage 3: Concept Development & Testing

Importance should be given to developing a thorough model of the concept and user
requirements before beginning the New Product Development process. This value proposition
examination is the initial step in developing and evaluating a notion. But it is at the least, it
guarantees that flaws in the method are detected immediately and that the team may alter course
faster. This contributes to the prevention of technical debt accumulation.

Stage 4: Market Strategy/Business Analysis

Marketing strategy is all about devising a strategy for reaching out to a certain population.
Following McCarthy's 4Ps of marketing for a New Product Development project may be the
greatest and most easy technique for the businesses.

McCarthy’s 4Ps of marketing for a New Product Development project:

 Product
 Price
 Promotion
 Placement

Stage 5: Product Development

When the New Product Development concept has been established, the market strategy has been
recorded, and the business analysis has been done, the product life-cycle development process
may begin. The development of a new product begins with the creation of a prototype, which is
then followed by the creation of a Minimum Viable Product (MVP).

The prototype focuses on developing the product's UI/UX, which is subsequently shared with
stakeholders. This aids in picturing how the product will seem and whether it will adhere to
ergonomic best practices. While the Minimum Viable Product (MVP) focuses on developing
user stories in Agile for the New Product that will set it apart from the competition. After design,
development, and testing are completed, the MVP is released to the market with limited
functionality.

Stage 6: Deployment

When the MVP is complete, the focus shifts from development to delivering the product in the
field. This procedure includes adopting the DevOps culture and putting in place the CI/CD
pipeline. The businesses' various stages of implementation include:

Commit: The newly produced goods are merged with the current features' resources. The quality
assurance team guarantees that the connected components are of high quality and safe to use.

Alpha Deployment: Developers review the efficiency of new goods as well as experiences
between producers/manufacturers.
Beta Deployment: Manually screening of a new product to assess its overall performance and
output efficiency while taking into account all input circumstances.

Production Deployment: The new product is launched into the testing environment, indicating
that it is ready for usage by end customers.

Stage 7: Market Entry/Commercialization

Commercialization is a broad word that encompasses a variety of methods for ensuring the
success of a new product. Nothing can stop a product from gaining attention and being a
product-market fit if all of the previously described techniques are implemented correctly.

Finally, New Product Development assists a company (or a startup) in achieving organic growth
by developing solutions that answer genuine consumer concerns.
B.

Below are the stages involved in product’s life cycle:

1. Market Introduction and Development

This stage of the product life cycle entails designing a market strategy, which is often achieved
by a commitment in sales and promotions to raise customer awareness of the product and its
advantages. Sales are often slow at this time as demand is built. This step may take some time to
complete, depending on the product's significance, how fresh and inventive it is, how well it
meets client wants, and whether there are any competitors in the industry.

2. Market Growth

If a company's product or service passes the market introduction stage, it is ready to go on to the
growth stage of its life cycle. Increasing competition should result in increased output and the
product being more easily accessible. As the product takes off, the gradual rise of the market
introduction and development stage develops into a sudden upturn. At this time, rivals may join
the market with their own models of the product either outright copies or with little
modifications. The life cycle now progresses to stage three, market maturity.

3. Market Maturity

Because a product has been established in the market, the cost of creating and selling the current
product will decrease. When a product's life cycle reaches this mature stage, market saturation
begins. Many customers will have purchased the product by this point, and rivals will have
emerged, making branding, pricing, and product distinction even more critical in maintaining
market dominance.

4. Market Decline

As rivalry increases, with other firms attempting to mimic a particular company’s product or
service with more product features or cheaper pricing, the life cycle will start to diminish.
Decline can also be triggered by new developments that outperform your present product, such
as horse-drawn carriages becoming obsolete when the vehicle took its place.
C.

Value Analysis is a cost-cutting strategy that compares the usefulness or value of a product,
service, or process to the cost of producing it. During this procedure, the value analysis team
thoroughly examines various segments or components of a product/service/process and discovers
areas of unnecessary expenses.

Familiarization to gain information

The first stage is for the team to become acquainted with the procedure, product, or service that
requires value analysis. Each aspect is thoroughly examined while keeping the department's and
organization's objectives in mind.

Analysis to identify problem areas

The analysis begins when the team has gathered all of the necessary material. The analysis
focuses on dissecting the activities of the subject under consideration. A product or process often
fulfills two sets of functions: primary and secondary. The wall clock's principal function was to
display the time. Its secondary purpose was to enhance the aesthetic of the home.

Innovation

At this point, the team begins looking for alternatives that allow for reduction, alteration, or
modification of current features and elements. This phase consequently stresses the generation of
new concepts and the discovery of alternative methods of carrying out fundamental and
secondary duties.

Evaluation and Selection

The evaluation phase assesses the worth of each concept developed during the creativity phase
and chooses the right things. Evaluation entails determining the viability and cost of various
proposals provided. It also assesses the worth of the preferred solution. Some of the strategies
that may be used for this include cash flow analysis and break-even points.
Implementation, Monitoring and Corrective Actions

The next stage is to put the chosen alternative into action. The effectiveness of the provided
alternative will be regularly checked and evaluated over the period of months or as specified in
the report.
Question 3.

A.

Product standardization is the process and strategy of consistently making and marketing

products or services. It entails ensuring that a product meets particular criteria for item quality,

service delivery, or presentation in each market.

Here are some common uses of product standardization:

 Individual products: Organizations may standardize their high quality products, ensuring

consistency across regional and global markets in everything from the recipe or

procedure to the labeling. Large worldwide food, clothes, or beverage corporations, for

example, may have uniform product lines that do not vary greatly around the globe.

 Franchises: Businesses that use the franchise system for their physical locations usually

standardize processes and resources to provide clients with a seamless experience and

service. Fast-food restaurants, for example, frequently feature uniform decor, menus, and

goods.

 Regulations: Companies such as certification bodies or governmental organizations may

establish guidelines for making a product safe for customers and functional with local

utilities or other tools. Plugs and outlets, for example, are often uniform across a nation,

allowing users to use practically any device in their house without the use of an adaptor.

 Market norms: Businesses may standardize how they organize products or services in

comparison to rivals so that consumers know what quantity or form the commodity will
 arrive in. Paper, hot dogs, and stocks, for example, are typically packaged with the same

amount of pages or stocks as their rivals.

Problems facing product/service standardization

Product standardization may not be the right choice for businesses looking to focus on very

specific demographics or areas. Here are some potential disadvantages of product

standardization:

Fewer choices

Companies that standardize their products create more of a fewer number of varieties. This

means that consumers have fewer product options, which may lead to them selecting something

that does not suit all of their wants or preferences. As a result, this technique may not be

appropriate for a company with clients that like a range of alternatives.

Product development stagnation

The advantages of product standardization may induce businesses to forgo developing or

creating new standardized products. Buyers may begin choosing other brands if standardized

items get out of date or if customers desire some diversity, which can be detrimental to sales over

time. When opposed to businesses that rely significantly on trends or technology, standardization

can be more beneficial for firms that manufacture staple commodities like basic meals or

cleaning supplies that don't vary as much over time.

B.

Economies of scale are a reduction in costs to a business which occur when the company

increases the production of their goods and becomes more efficient.

There are two primary types of economies of scale:

Internal economies of scale

Internal economies of scale occur when a firm is able to lower expenses from within due to its

size or internal policies made by the management and executive leadership. Internal economies

of scale occur from internal variables such as bulk sales, hiring more efficient and highly

qualified management, and utilizing technological breakthroughs to reduce production costs.

Types of internal economies of scales with examples:

Technical Economies of Scale

Technical economies of scale are realized through process improvements and optimizations. As

output grows, corporations can begin to invest in more efficient equipment and improve

processes based on past experience. To put it another way, a major portion of these

improvements are based on what we term learning-by-doing.

Managerial Economies of Scale

Managerial economies of scale come as a result of the use of a skilled personnel. That implies

that when businesses develop, they may hire more specialists and establish specialized parts of

the company. Because staff may obtain more expertise and concentrate on what they are best at,

this leads in a more productive division of labor and more strong leadership.
For example, due to its size, Accra Shoprite can easily afford to employ dedicated category

managers for all the sections in the mall. These category managers even lead a team of several

employees who focus on spotting the newest trends, evaluating the performance of current

products, and negotiating the best deals with suppliers. Meanwhile, Eddy’s Mart can’t afford to

hire that many people, so he has to do all that by himself. As a result, he won’t be able to handle

his categories as efficiently as Accra Shoprite.

External economies of scale

External economies of scale occur from external variables beyond the control of an organization,

including the sector, geographical location, and state. External economies of scale result in cost

savings for the whole industry, not just one business.

Types of external economies of scales with examples:

Innovation Economies of Scale

Scale economies of innovation develop as a result of greater public and private studies. That is,

when industries increase in importance, their influence on society becomes a topic of public

concern. This enables them to work with universities and other educational institutions to

improve their goods and operations while also lowering their own expenditures. To illustrate

this, let’s say that many of the firms in Ghana mainly into car production are developing ways to

make cars more secure. Because of the public interest and importance of this topic, several

universities join their efforts. This allows the firms to collaborate with some of the best research

facilities in the world to develop better sensors and computer systems and improve their

products.
Specialization Economies of Scale

Specialization economies of scale emerge when suppliers and labor begin to concentrate on a

certain sector due to its size. That is, when the size and number of firms within an industry grow,

it becomes more profitable for suppliers to focus only on that market (by specializing and

leveraging internal economies of scale). Similarly, when the supply of employment in the sector

increases, it becomes simpler for specialist people to get work in their profession. For example,

in the case of car manufacturing companies in Ghana, suppliers of advanced sensors for

sophisticated computer systems find a growing customer base. That allows them to expand their

business and focus on improving the sensors even further. Similarly, it becomes easier for

computer science graduates to find a job, because all the new and growing tech companies need

computer scientists. As a result, more students will enroll in computer science, and the number

and quality of specialized employees increase.

C.

Product layout, also known as straight line layout or flow shop layout, is a model in which the

resources, such as workstations, tools, and equipment, that will be employed in the

manufacturing process are grouped systematically in a straight line of production, primarily on

the basis of activities. The raw material is given to the first machine in this configuration, which

automatically moves from one machine to the next in the line. As a result, the preceding

machinery's output becomes the input to the next, and the final output is supplied by the last

machine.
Question 4

A)

Supplier development, which is strongly linked to supplier relationship management, is the

practice of dealing one-on-one with specific suppliers to enhance their contribution to the
achievement of the buying organization. As a result, this is seen as a strategic plan that
encourages the procurement team to collaborate directly with varied suppliers in order to
improve performance and generate continuing growth.

Below are the reasons why a supplier development becomes necessary:

When firms want to earn a competitive advantage: Organizations may build partnerships with
suppliers and freelancers that understand every aspect of their company, from product to price,
with the aid of adequate education and support. This enables vendors to provide you with higher-
quality service at a lower cost.

When firms want to reduce cost and increase profitability: Supplier development initiatives have
been shown to provide in bottom-line gains for organizations that employ them. McKinsey &
Company released the first report from its Supplier Collaboration Index (SCI) in 2020, in
partnership with Michigan State University. According to the survey, "businesses that routinely
engaged with suppliers displayed better financial performance, lower operational expenses, and
more revenue than their industry counterparts" among the more than 100 respondents from all
industries.

When firms want to drive innovation: Motivating varied businesses to cooperate and generate
creative solutions. This challenges individuals to think beyond the box, which boosts their
creativity. Finally, this may result in the development of services and products that are
temporarily unavailable on the marketplace.
B.

The cost of quality (COQ) is described as a technique that enables an organization to identify the
amount to which its resources are utilized for actions that avoid poor quality, evaluate the quality
of the business's goods or services, and are the outcome of internal and external shortcomings.
Therefore, below are the costs associated with quality:

Cost of poor quality:

The cost of poor quality (COPQ) is the expense of supplying a low quality product or service to a
consumer. In other terms, it is the overall financial loss experienced by the firm as a result of
improper actions.

Appraisal costs:

Appraisal expenses are connected with quality control and reporting operations. These expenses
are related to suppliers' and customers' evaluations of acquired materials, processes, products,
and services to verify that they meet specifications.

Internal failure costs

Internal failure costs are expensed to correct flaws found prior to the delivery of the product or
service to the consumer. These expenditures are incurred when manufacturing outcomes fail to
meet design quality requirements and are identified prior to being delivered to the consumer.

External failure costs

Customers' detected faults result in external failure costs. These expenses arise when products or
services that do not meet design quality criteria are not recognized until after they have been
transferred to the client.

Prevention costs

Prevention costs are paid in order to deter or lessen quality issues. These expenses are related to
the design, implementation, and upkeep of the quality management system. They are anticipated
and incurred prior to the actual procedure.
C.

Inventory management assists businesses in determining where and how much merchandise to
purchase at what period. It keeps track of merchandise from acquisition to sale.

Below are the Inventory management techniques:

Consignment

When using consignment inventory management, your company will not pay its supplier until a
certain sale is made. That supplier also maintains ownership of the goods until it is sold by the
organization.

FIFO and LIFO

First in, first out (FIFO) refers to the process of moving the oldest stock first. Because prices
always increase, the most recently bought stock is the most costly and hence sold first, according
to the last in, first out (LIFO) principle.

Minimum Order Quantity

To keep prices low, a firm that depends on minimum order quantity would order small amounts
of merchandise from wholesalers in each purchase.

Reorder Point Formula

Businesses utilize this technique to determine the bare minimum of stock required before
restocking and then manage their inventory accordingly.

Safety Stock

An inventory management philosophy that values safety stock ensures that there is always
additional stock on hand in case the organization is unable to restock those goods.

Just-In-Time Inventory (JIT)

Companies utilize this approach to keep stock levels as low as possible before restocking.
Question 5

A)

Forecasting is the technique of anticipating future occurrences based on an examination of their

past and present activity. The future cannot be predicted until one understands how activities
have actually taken place and how they are currently unfolding.

Below are the basic steps involved in forecasting process:

1. Developing the Basis:

Future estimations of various business activities have to be dependent on the outcomes of

comprehensive research into the economy, goods, and industry.

2. Estimation of Future Operations:

The manager must create quantitative projections of the future scope of business activities based
on facts gathered from methodical inquiry into the economy and industry environment.

3. Regulation of Forecasts:

It has previously been said that managers cannot relax once they have developed a company
projection. They must continually compare actual operations to expectations in order to
determine the causes of any variations from forecasts.

4. Review of the Forecasting Process:

After determining the variances in overall results from the positions forecasted by the
management, it will be required to review the techniques used for this goal in order to enhance
the forecasting approach.

5. Verify Model Performance

At the right moment, the company must evaluate their forecast to the actual facts. This includes
evaluating the validity for not just the model, but also the overall process, and alters each step as
needed. Usually, if you utilize a decent small company forecasting program, you won't have to
do much modifying.
B.

The mental method of selecting from a collection of possibilities is known as decision making.
Every decision-making process yields a result, which might be an act, a suggestion, or a view.
Below are the decisions making approach in production management;

Problem seeking approach

In instance, the method of problem solving puts into question the emphasis or extent of the
damage itself. It may be discovered to be inadequately described, to have an overly broad or
narrow scope, or to lack a critical dimension. Decision-makers must now take a step back and
review the data and insights they have used thus far. This is a problem-solving activity because
decision-makers must go to the beginning point and describe the problem or situation they intend
to solve.

Problem solving approach

The majority of choices are made up of problem-solving activities that finish when a satisfying
solution is found. In psychology, problem solving pertains to the desire to achieve a certain
objective from one's current situation. Problem solving necessitates the defining of the problem,
the examination and assessment of data, and the identification of options.

Avoiding

One decision-making option is to make no choice at all. There are several reasons why the
decision maker might do this:

1. There is inadequate information to make a rational decision among options.

2. The disadvantages of choosing any alternative exceed the advantages of choosing one.

3. There is no compelling need for a decision, and the status quo may be maintained without
harm.

4. The individual assessing the options lacks decision-making authority.

C.

Quality control is critical to manufacturing success. Production irregularities and poor quality
can have a detrimental impact on both the producer and the consumer, resulting in a delayed time
to market, a tarnished reputation, strained supplier-original equipment manufacturer
relationships, and, worst of all, customer loss or injury.

Enhance Product Quality & Reduce Risks

Product recalls or failures can have a severe economic and reputational impact. Manufacturers
with well-established quality programs regularly achieve the required product requirements and
are less likely to have quality issues such as off-spec batches or product being recalled, lowering
the amount of risk for the supplier and OEM. One advantage of good quality processes is that
possible faults or issues are discovered in advance, allowing the team to fix the issue and avoid
the quality issue even before it happens.

Gain Production Efficiencies

A strong quality control and assurance program enhances workflow, resulting in efficiency
improvements along the manufacturing line and across the supply chain. Quality programs often
collect a vast volume of data, frequently in real-time, to trend critical parameters and allow
operations people to make choices based on accurate and timely data. Potential quality concerns
throughout the production process are discovered and remedied quickly using this data.
Furthermore, a solid quality program reduces waste creation, saving time and money spent on
recovering off-spec or faulty items.

Gain Customer Loyalty

A company with a high level of manufacturing quality control and repeatability can supply
consistent products to clients, establishing themselves as a trusted partner. Customers will return
if your items meet or surpass their requirements. Both the manufacturer and the consumer profit
from customer loyalty and long-term partnerships. The client benefits supply chain stability; the
manufacturer receives a constant stream of projects and recommendations; and the manufacturer
gains a more positive brand reputation — a win-win situation for all parties.