Product Design and Development PDF

Product Design and Development Naguib Introduction Examples of engineered, discrete, physical products (clockwise from top left): Belle-V Ice Cream Scoop, AvaTech Avalanche Probe, iRobot Roomba Vacuum Cleaner, Tesla Model S Automobile, Boeing 787 Aircraft Characteristics of Succes...

Product Design and Development Naguib Introduction Examples of engineered, discrete, physical products (clockwise from top left): Belle-V Ice Cream Scoop, AvaTech Avalanche Probe, iRobot Roomba Vacuum Cleaner, Tesla Model S Automobile, Boeing 787 Aircraft Characteristics of Successful Product Development Product quality: How good is the product resulting from the development effort? Does it satisfy customer needs? Is it robust and reliable? Product quality is ultimately reflected in market share and the price that customers are willing to pay. Product cost: What is the manufacturing cost of the product? This cost includes spending on capital equipment and tooling as well as the incremental cost of producing each unit of the product. Product cost determines how much profit accrues to the firm for a particular sales volume and a particular sales price. Development time: How quickly did the team complete the product development effort? Development time determines how responsive the firm can be to competitive forces and to technological developments, as well as how quickly the firm receives the economic returns from the team’s efforts. Development cost: How much did the firm have to spend to develop the product? Development cost is usually a significant fraction of the investment required to achieve the profits. Development capability: Are the team and the firm better able to develop future products as a result of their experience with a product development project? Development capability is an asset the firm can use to develop products more effectively and economically in the future. Who Designs and Develops Products? Marketing: The marketing function mediates the interactions between the firm and its customers. Marketing often facilitates the identification of product opportunities, the definition of market segments, and the identification of customer needs. Marketing also typically arranges for communication between the firm and its customers, sets target prices, and oversees the launch and promotion of the product. Design: The design function plays the lead role in defining the physical form of the product to best meet customer needs. In this context, the design function includes engineering design (mechanical, electrical, software, etc.) and industrial design (aesthetics, ergonomics, user interfaces). Manufacturing: The manufacturing function is primarily responsible for designing, operating, and/or coordinating the production system in order to produce the product. The composition of a product development team for an electromechanical product of modest complexity. Duration and Cost of Product Development Attributes of five products and their associated development efforts. All figures are approximate, Challenges of Product Development Trade-offs: An airplane can be made lighter, but this action will probably increase manufacturing cost. One of the most difficult aspects of product development is recognizing, understanding, and managing such trade-offs in a way that maximizes the success of the product. Dynamics: Technologies improve, customer preferences evolve, competitors introduce new products, and the macroeconomic environment shifts. Decision making in an environment of constant change is a formidable task. Details: The choice between using screws or snap-fits on the enclosure of a computer can have economic implications of millions of dollars. Developing a product of even modest complexity may require thousands of such decisions. Time pressure: Any one of these difficulties would be easily manageable by itself given plenty of time, but product development decisions must usually be made quickly and without complete information. Economics: Developing, producing, and marketing a new product requires a large investment. To earn a reasonable return on this investment, the resulting product must be both appealing to customers and relatively inexpensive to produce. Challenges of Product Development Creation: The product development process begins with an idea and ends with the production of a physical artifact. When viewed both in its entirety and at the level of individual activities, the product development process is intensely creative. Satisfaction of societal and individual needs: All products are aimed at satisfying needs of some kind. Individuals interested in developing new products can almost always find institutional settings in which they can develop products satisfying what they consider to be important needs. Team diversity: Successful development requires many different skills and talents. As a result, development teams involve people with a wide range of different training, experience, perspectives, and personalities. Team spirit: Product development teams are often highly motivated, cooperative groups. The team members may be colocated so they can focus their collective energy on creating the product. This situation can result in lasting camaraderie among team members. “Product Design and Development” Karl T Ulrich & Steven D Development Processes and Organizations A wireless security alarm system control panel, one of Tyco’s products  What are the key product development activities that must be included in every project? What project milestones and review gates can be used to manage the overall development process by phases? Is there a standard development process that will work for every operating division? What role do experts from different functional areas play in the development process? Should the development organization be divided into groups corresponding to projects or to technical and business functions? The Product Development Process Quality assurance: A development process specifies the phases a development project will pass through and the checkpoints along the way. When these phases and checkpoints are chosen wisely, following the development process is one way of assuring the quality of the resulting product. Coordination: A clearly articulated development process acts as a master plan that defines the roles of each of the players on the development team. This plan informs the members of the team when their contributions will be needed and with whom they will need to exchange information and materials. Planning: A development process includes milestones corresponding to the completion of each phase. The timing of these milestones anchors the schedule of the overall development project. Management: A development process is a benchmark for assessing the performance of an ongoing development effort. By comparing the actual events to the established process, a manager can identify possible problem areas. Improvement: The careful documentation and ongoing review of an organization’s development process and its results may help to identify opportunities for improvement. generic product development process. Six phases are shown, including some of the typical tasks and responsibilities of the key business functions for each phase. Concept Development: The Front-End Process Adapting the Generic Product Development Process Product Development Process Flows Process flow diagrams for three product development processes. The Tyco Product Development Process Tyco’s Rally Point product development process includes nine distinct phases and review gates. Key activities and the responsible functions comprising the Tyco Rally Point product Product Development Organizations Organizations Are Formed by Establishing Links among Individuals Reporting relationships: Reporting relationships give rise to the classic notion of supervisor and subordinate. These are the formal links most frequently shown on an organization chart. Financial arrangements: Individuals are linked by being part of the same financial entity, such as a business unit or department within a firm. Physical layout: Links are created between individuals when they share the same office, floor, building, or site. These links are often informal, arising from spontaneous encounters while at work. Product Development Organizations Organizational Links May Be Aligned with Functions, Projects, or Both A function (in organizational terms) is an area of responsibility usually involving specialized education, training, or experience. The classic functions in product development organizations are marketing, design, and manufacturing. Finer divisions than these are also possible and may include, for example, market research, market strategy, stress analysis, industrial design, human factors engineering, process development, and operations management. Regardless of their functions, individuals apply their expertise to specific projects. In product development, a project is the set of activities in the development process for a particular product and includes, for example, identifying customer needs and generating product concepts. Choosing an Organizational Structure How important is cross-functional integration? Functional organizations may exhibit difficulty in coordinating project decisions that span the functional areas. Project organizations tend to enable strong cross-functional integration because of the organizational links of the team members across the functions. How critical is cutting-edge functional expertise to business success? When disciplinary expertise must be developed and retained over several product generations, then some functional links are necessary. For example, in some aerospace companies, computational fluid dynamics is so critical that the fluid dynamicists are organized functionally to ensure the firm will have the best possible capability in this area. Can individuals from each function be fully utilized for most of the duration of a project? For example, a project may require only a portion of an industrial designer’s time for a fraction of the duration of a project. To use industrial design resources efficiently, the firm may choose to organize the industrial designers functionally, so that several projects can draw on the industrial design resource in exactly the amount needed for a particular project. How important is product development speed? Project organizations tend to allow for conflicts to be resolved quickly and for individuals from different functions to coordinate their activities efficiently. Relatively little time is spent transferring information, assigning responsibilities, and coordinating tasks. For this reason, project organizations are usually faster than functional organizations in developing innovative products. For example, consumer electronics manufacturers almost always organize their product development teams by project. This allows the teams to develop new products within the extremely short periods required by the fast-paced electronics market. Distributed Product Development Teams The Tyco Product Development Organization Primary functions: engineering, manufacturing, marketing, sales, purchasing, quality assurance, finance, legal, project management.Each function has a manager reporting to the general manager of the division.Product development projects are led by project managers, drawing resources from functional areas.Product development reflects a traditional functional structure.Project leaders have indirect control over functional resources, which can affect efficiency but ensures strong functional skill development.Tyco has an effective project management function with leaders familiar with the Rally Point process.This approach supports strong product development and functional capabilities.New regional engineering centers in China and India provide technical support to global projects.Additional technical resources enhance project performance, especially in later stages. Summary Product development process: sequence to conceive, design, and commercialize a product. A well-defined process ensures quality, facilitates coordination, supports planning, and improves efficiency. Generic process has six phases: planning, concept development, system-level design, detail design, testing and refinement, production ramp-up. Concept development integrates functions, identifies customer needs, analyzes competitors, sets specifications, generates and selects concepts, tests, performs economic analysis, and plans further steps. Firms may adapt the process for different product types, such as technology-push, platform, customized, or high-risk products. Summary Development tasks are done by individuals within organizations, linked through reporting, financial, or physical layouts. Functional organizations: structured by functions (e.g., engineering, marketing).Project organizations: structured by development projects.H ybrid organizations: two types: heavyweight and lightweight project organizations. Trade-off: functional organizations provide deep expertise, while project organizations offer better coordination. Global teams access specialized resources and market insights but face higher coordination costs.  Opportunity Identification Naguib What Is an Opportunity? The “swinging ball” opportunity eventually pursued by the FroliCat team as first recorded in a sketch. This is an example of an opportunity that includes a potential solution concept. What Is an Opportunity? Types of Opportunities (1)the extent to which the team is familiar with the solution likely to be employed, and (2) the extent to which the team is familiar with the need that the solution addresses. Types of opportunities. Horizons 1, 2, and 3 represent increasing levels of risk, Tournament Structure of Opportunity Identification The tournament structure of the opportunity identification process. The opportunity tournament feeds the product development process with Tournament Structure of Opportunity Identification The overall tournament structure of the opportunity identification process for FroliCat. Fifty raw opportunities were eventually filtered and explored, resulting in a “swinging ball” opportunity that was developed into a product launched to the market. Effective Opportunity Tournaments 1.Generate many opportunities: More opportunities increase the chances of finding exceptional ones. 2.Focus on high-quality opportunities: Use better methods and sources to boost the quality of opportunities. 3.Encourage variability: Greater variation in opportunity quality leads to more exceptional ideas, even if some are less consistent Opportunity Identification Process 1. Establish a charter. 2. Generate and sense many opportunities. 3. Screen opportunities. 4. Develop promising opportunities. 5. Select exceptional opportunities. 6. Reflect on the results and the process. Step 1: Establish a Charter 1. Establish a charter. Organizations create new products to grow revenues, fill 2. Generate product gaps, or enter new markets. and sense Entrepreneurs create products based on personal interest. many opportunitie An innovation charter outlines goals and sets boundaries s. for innovation efforts, similar to a product mission 3. Screen statement. opportunitie Example: The FroliCat charter focused on creating a s. physical cat toy, leveraging existing retail channels, with 4. Develop restrictions on time, investment, and product category. promising The charter balances open exploration with clear direction opportunitie to avoid wasted efforts. s. Broad charters encourage diverse ideas, which can refine 5. Select focus later and challenge team assumptions. exceptional opportunitie s. Step 2: Generate and Sense Many Opportunities 1. Establish a Techniques for Generating Opportunities charter. a) Follow a Personal Passion 2. Generate and b) Compile Bug Lists sense many c) Pull Opportunities from Capabilities opportunities. d) To provide 3. Screen e) advantage, a resource must be: opportunities. a) Valuable. To be valuable, a resource must either allow a firm to achieve greater performance than competitors or reduce a weakness relative to competitors. 4. Develop b) Rare. Given competition, a valuable resource must be rare. promising c) Inimitable. For value and rarity to persist, a resource must not be easily imitated.opportunities. d) Nonsubstitutable. Even if valuable, rare, and inimitable, a resource providing 5. Select advantage can’t be easily substituted. exceptional f) Study Customers opportunities. g) Consider Implications of Trends h) Imitate, but Better 6. Reflect on the i) Mine Your Sources results and the process. Step 3: Screen Opportunities 1. Establish a Screening aims to eliminate opportunities unlikely to charter. create value. 2. Generate and Focuses attention on opportunities worth further sense many opportunities. investigation. The goal isn't to select the best opportunity but to 3. Screen opportunities. filter effectively. 4. Develop Process prioritizes efficiency over perfect accuracy promising opportunities. due to the volume of opportunities. 5. Select exceptional opportunities. 6. Reflect on the results and the process. Step 4: Develop Promising Opportunities 1. Establish a Goal: Resolve key uncertainties of each opportunity charter. with minimal time and cost. 2. Generate and List major uncertainties, tasks to resolve them, and sense many opportunities. task costs. Prioritize tasks that resolve the most uncertainty at 3. Screen opportunities. the lowest cost. 4. Develop Example: A patent search should be done early for promising an idea reliant on intellectual property, as it is a low- opportunities. cost way to reduce uncertainty. 5. Select exceptional opportunities. 6. Reflect on the results and the process. Step 5: Select Exceptional Opportunities 1. Establish a After developing several opportunities with modest charter. resources, enough uncertainty should be resolved 2. Generate and to identify those worth significant investment. sense many opportunities. Use a method similar to concept selection by comparing alternatives against specific selection 3. Screen opportunities. criteria. This method helps in selecting the best product 4. Develop promising opportunities for further development. opportunities. 5. Select exceptional opportunities. 6. Reflect on the results and the process. Step 6: Reflect on the Results and the Process 1. Establish a How many of the opportunities identified came from charter. internal sources versus external 2. Generate and sense many sources? opportunities. Did we consider dozens or hundreds of 3. Screen opportunities? opportunities. Was the innovation charter too narrowly focused? 4. Develop Were our filtering criteria biased, or largely based onpromising opportunities. the best possible estimates of 5. Select eventual product success? exceptional opportunities. Are the resulting opportunities exciting to the team? 6. Reflect on the results and the process. Summary This chapter presents a framework for opportunity identification as a tournament, where numerous raw opportunities are generated, filtered, and refined to identify the exceptional few. The opportunity identification process includes six steps: 1.Establish a charter. 2. Generate and sense many opportunities. 3. Screen opportunities. 4. Develop promising opportunities. 5. Select exceptional opportunities. 6. Reflect on the results and the process. Opportunity identification relies on evaluating diverse opportunities from various sources. Effective idea generation techniques improve the quality of opportunities considered. Systematic filtering of a large number of raw opportunities helps focus resources on the most promising options.