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Product Cycle: A description of the presence or behavior of a product in the marketplace over time
The phases of the product cycle (five)-
Development stage: In the development stage, there are no sales the product is being
created and is not available.
Introduction stage: The introduction stage starts with the first sale and then sales begin to
grow.
Growth stage: This is the period of rapid growth in sales for the product.
Maturity stage: This phase is characterized by growth as well, but the sales growth is
decelerating. Sales volume reaches its maximum at the end of the maturity stage.
Decline stage: This phase represents the period of declining sales they may still be very
high, but they are declining.
Product Life Cycle (cont…)
For many products, the product cycle has shortened/elongated - In the field of Laptop computers there is
the need to have the fastest, lightest, and smallest laptop with the longest battery life making the existing
one obsolete and shorten the life.
For ballpoint pen for example has a longer product cycle. The need to write is addressed by the almost
unchanging technology inside of the pen. This product could possibly never become obsolete, this
would mean that the product cycle could never end.
The production
system can be
viewed as a
framework or skeleton Production System
of activities within
which the creation of
value can occur.
At one end of the
production system
are the inputs and at
the other end are
outputs.
Connecting the inputs
and outputs are a
series of operations or
processes, storages
and inspections.
System Concepts of Production
Raw Materials
Output
Input
Labors Transformation/ Goods/
conversion process Services
Equipment
Capital
Feedback Information
Schematic Representation of Production System
Types of Production System