MUY691

New Product Development

Product Development and

Process Organization

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 A wireless security alarm system
control panel, one of Tyco’s
products

Some of the questions Tyco faced were:

§ 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? 2
Process is a sequence of steps that transforms a set
of inputs into a set of outputs.

Product Development Process is the sequence of

steps or activities that an enterprise employs to
conceive, design, and commercialize a product.

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Why a well-defined development process is
useful?

§ Quality assurance

§ Coordination

§ Planning

§ Management

§ Improvement
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 The Generic Product Development Process
Concept System-Level Detail Testing and Production
Planning
Development Design Design Refinement Ramp-Up

Mission Concept System Spec Critical Design Production

Approval Review Review Review Approval

Three ways to thinks about the development process

§ Funnel narrowing

§ Information processing system

§ Risk management system

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The Generic Product Development Process
Concept System-Level Detail Testing and Production
Planning
Development Design Design Refinement Ramp-Up

Mission Concept System Spec Critical Design Production

Approval Review Review Review Approval

§ Referred to as Phase Zero

§ Tasks:

§ Output: Mission statement

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The Generic Product Development Process
Concept System-Level Detail Testing and Production
Planning
Development Design Design Refinement Ramp-Up

Mission Concept System Spec Critical Design Production

Approval Review Review Review Approval

Concept – a description of the form, function, and features of a

product.

In concept development phase:

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The Generic Product Development Process
Concept System-Level Detail Testing and Production
Planning
Development Design Design Refinement Ramp-Up

Mission Concept System Spec Critical Design Production

Approval Review Review Review Approval

Output:

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The Generic Product Development Process
Concept System-Level Detail Testing and Production
Planning
Development Design Design Refinement Ramp-Up

Mission Concept System Spec Critical Design Production

Approval Review Review Review Approval

Output: Control Documentation

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The Generic Product Development Process
Concept System-Level Detail Testing and Production
Planning
Development Design Design Refinement Ramp-Up

Mission Concept System Spec Critical Design Production

Approval Review Review Review Approval

Output: Multiple preproduction versions

§ Early (Alpha) prototypes

§ Later (Beta) prototypes

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The Generic Product Development Process
Concept System-Level Detail Testing and Production
Planning
Development Design Design Refinement Ramp-Up

Mission Concept System Spec Critical Design Production

Approval Review Review Review Approval

Output:

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The generic product development process. Six phases are shown, including some of 12
the typical tasks and responsibilities of the key business functions for each phase.
 Concept Development Process
Development
Identify Establish Generate Select Test Set Plan Plan
Customer Target Product Product Product Final Downstream
Needs Specifications Concepts Concept(s) Concept(s) Specifications Development

Perform Economic Analysis

Benchmark Competitive Products

Build and Test Models and Prototypes

§ Front-end process
§ Not strictly sequential - generally a parallel
and iterative process.
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 Concept Development Process
Development
Identify Establish Generate Select Test Set Plan Plan
Customer Target Product Product Product Final Downstream
Needs Specifications Concepts Concept(s) Concept(s) Specifications Development

§ Customer needs statements, usually in a

hierarchy with importance weightings
§ Latent needs

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 Concept Development Process
Development
Identify Establish Generate Select Test Set Plan Plan
Customer Target Product Product Product Final Downstream
Needs Specifications Concepts Concept(s) Concept(s) Specifications Development

Specifications - a precise description of what

a product has to do. They are the translation of the
customer needs into technical terms.

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 Concept Development Process
Development
Identify Establish Generate Select Test Set Plan Plan
Customer Target Product Product Product Final Downstream
Needs Specifications Concepts Concept(s) Concept(s) Specifications Development

10 to 20 concepts, each typically represented by a

sketch and brief descriptive text.

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 Concept Development Process
Development
Identify Establish Generate Select Test Set Plan Plan
Customer Target Product Product Product Final Downstream
Needs Specifications Concepts Concept(s) Concept(s) Specifications Development

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 Concept Development Process
Development
Identify Establish Generate Select Test Set Plan Plan
Customer Target Product Product Product Final Downstream
Needs Specifications Concepts Concept(s) Concept(s) Specifications Development

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 Concept Development Process
Development
Identify Establish Generate Select Test Set Plan Plan
Customer Target Product Product Product Final Downstream
Needs Specifications Concepts Concept(s) Concept(s) Specifications Development

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 Concept Development Process
Development
Identify Establish Generate Select Test Set Plan Plan
Customer Target Product Product Product Final Downstream
Needs Specifications Concepts Concept(s) Concept(s) Specifications Development

Contract Book

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 Concept Development Process
Development
Identify Establish Generate Select Test Set Plan Plan
Customer Target Product Product Product Final Downstream
Needs Specifications Concepts Concept(s) Concept(s) Specifications Development

Perform Economic Analysis

Benchmark Competitive Products

Build and Test Models and Prototypes

Modeling and Prototyping

§ Proof of concepts
§ Form only models
§ Spreadsheets models
§ Experimental test models 21
Adapting the Generic Product
Development Process
§ Market-pull situation
§ Technology-push products
§ Platform products
§ Process-intensive products
§ Customized products
§ High-risk products
§ Quick-build products
§ Product-service systems
§ Complex systems

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Adapting the Generic Product
Development Process
Technology-push products
§ Basic materials or basic process technologies
§ Technology “pushes” development
§ Ex., Gore-Tex, teflon sheet-based products
(artificial veins, fabric for outwear, insulation
for electric cables)
§ The generic product development process with
minor modifications

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Adapting the Generic Product
Development Process
Platform products
§ Built around a pre-existing technological
subsystem (a technology platform)
§ Very similar to technology-push products. The
difference - demonstrated its usefulness in the
marketplace in meeting customer needs
§ Ex., Intel chipset in a personal computer, the
Apple iOS smartphone operating system

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Adapting the Generic Product
Development Process
Process-intensive products
§ Ex., semiconductors, foods, chemicals, and
paper
§ The production process places strict
constraints on the properties of the product
§ A new product and new process may be
developed simultaneously

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Adapting the Generic Product
Development Process
Customized products
§ Slight variations of standard configurations ,
typically developed in response to a specific
order by a customer
§ Ex., switches, motors, batteries, and containers
§ For each customer orders, a well- defined
sequence of steps with a structured flow of
information customized to order.

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Adapting the Generic Product
Development Process
High-risk products
§ Entail unusually large uncertainties related to
the technology or market
§ The generic product development process is
modified in high-risk situations by taking
steps to address the largest risks in the early
stages of product development

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Adapting the Generic Product
Development Process
Quick-build products
§ Such as furniture, clothing, and many
electronics products, building and testing
prototype models is such a rapid process that
the design build-test cycle can be repeated
many times
§ Spiral (more flexible and responsive) product
development process

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Adapting the Generic Product
Development Process
Digital products
§ Such as software and websites, developed
using a highly iterative (spiral) product
development process
§ Agile software development

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Adapting the Generic Product
Development Process
Product-service systems
§ Services are largely intangible product
offerings and are often provided in
conjunction with tangible products. Examples
of product-service systems are automobile
rentals, restaurants, and mobile
communications

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Adapting the Generic Product
Development Process
Complex systems
§ Such as automobiles and airplanes, having
many interacting subsystems and components
§ Modifications to the generic product
development process address a number of
system-level issues.

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Process Flow Diagrams

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 Tyco International Rally Point PD Process

DEFINE CONCEPT DESIGN OPTIMIZE VERIFY

Project Concept Feasibility Preliminary Final Product Process Post-Launch

Launch
Registration Definition and Planning Design Design Verification Verification Assessment

RP RP RP RP RP RP RP RP RP
0 1 2 3 4 5 6 7 8
Tyco International Rally Point PD Process
 Xerox Time-to-Market (TTM) Process
Define market attack Define
product & Design Demonstrate Deliver Delight
plan & choose deliver
technology product product product customers
technology

Software Development Sub-Process

Microsoft Milestone Build Spiral Process
Planning

Development
Coding
Integration
Testing
Debugging

Stabilization
Reviews
Release

Beta
 Product Development Organizations

l Individuals in an organization are linked by

formal/informal links.

Link Description Type

Reporting
Hierarchical reporting structure Formal
relationship
Financial
Grouped by budget category Formal
arrangement
Physical Layout Share physical space Informal

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Product Development Organizations

§ Functional organization
§ Project organization

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Product Development Organizations

§ Functional organization
§ Project organization
§ Matrix organization
§ Heavyweight project organization
§ Lightweight project organization

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Various product development organizations. For simplicity, three 40
functions and three projects are shown
Characteristics of different organizational
structures
Matrix Organization

Lightweight Heavyweight
Functional Project
Project Project
Organization Organization
Organization Organization

Typical
Examples

Strengths

Weakness

Major Issues

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The Tyco Product Development Organization

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