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Product Design and Development

(PDD)

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 Introduction
• A Product is something sold by a company to its customers.

• Product development is a set of activities starting with the perception of a

market opportunity and ending with the sale of a product.

• Product design is one aspect of the development process.

– Engineering design specifies how the technical systems of the product

will work; Mechanical, electrical, software , etc. system

– Industrial design specifies the aesthetics, ergonomics, and user interface

of the product.

• The success of the PDD essentially depends on the success of all three
development activities, i.e. marketing, design, and manufacturing dep’t.
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 Need of product development

As specified in the product request As proposed by the marketing dep’t As designed by the senior designer c

As used by the customer

As produced by manufacturer
To do things in right way! What the customer wanted

Karl T. Ulrich and Steven D. Eppinger, Product Design and Development, 5th edi. The McGraw-Hill edition
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 Who Design and Develop Products
The three main functions for PDD projects are

• Marketing
 It meditates the interactions between the firm and its customers.
facilitates the identification of product opportunities, the definition
of market segmentation, and the identification of customer needs.
• Design
– plays a lead role in defining the physical form of product to best
meet customer needs.
• the design function includes engineering design and industrial
design
 Manufacturing
 primarily responsible for designing and operating the production
system in order to produce the product.
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 Cont’d

• Product development usually done by team : Core team & Extended

team.

Figure 1.1 Composition of a PD team

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 Few Characteristics of PDD
• It affects all people in the world,
– changes and improves people’s lives : prioritize customer benefit
• Fundamentally drives nation/world economic system,
– links between what people need and what a company can make.
– links between new knowledge and new useful objects
• Highly creative and complex,

• A highly evolving/developing,
– learns from the past and anticipates the future
– subject to rapid change
– highly timing dependent
• Can be esthetically pleasing,
– industrial design in parallel with engineering design
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 Characteristics of Successful
Product Development
It is difficult to assess directly rather indirectly the product profitability in
design and development stage. Indirect approaches are

i. Product quality
– How good is the product resulting from development ?
– Does it satisfy customer needs ?
– Is it robust and reliable ?
– Product quality image from its market share

ii. Product cost

– What is the manufacturing cost ?
– did the product includes capital equipment and tooling ?

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 Cont’d

iii. Development time

– How long did the Product development effort take ?

iv. Development cost

– How much spent in Product development effort ?

v. Development capabilities
– Did the team/firm acquire any experience for future projects ?

Note: High performance on listed direct approach of specific dimension will

lead to economic success. However, other performance criteria are also
important; stakeholders potentials.

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 Challenges
 Developing great product is challenging and hard.

 Some of the characteristics that make product development challenging are

 ideas which go to development stage never reach to market

 product which reach to market may not be successful

 product might be successful for shorter life cycle

 complex PDD activities

 Trade-offs
 Dynamics  Creation
 Details  Satisfaction of community &
 Time pressure individual needs
 Economics  Team diversity
 Team spirit
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 Types of Designs
• Engineering design can be undertaken for many different reasons, and it may take
different forms.

• Original (Innovative) design … employs an original, innovative concept to

achieve a need.

• Adaptive design . … the design team adapts a known solution to satisfy a different
need to produce a novel application .

• Redesign .

• Selection design. … design for standard components

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DEVELOPMENT PROCESS AND
ORGANIZATION

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 Introduction
• Why we need a systematic process?
– owing diversity of market demand or customer needs,
– different industries / enterprise use different development process
– further ,

• How we systematically organized?

– what milestones could be used to divide the overall dev’t process?
– how to amalgamate experts in different functional area?
– what or which type of development process to follow with?

• A Generic Development Process is set to answer the above question and

more.

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 Generic Development Process
• A product development process is the sequence of steps(activities) which an
organization employs to conceive, design, and commercialize a product.
• A well-defined development process is vital and supports
– Quality assurance: sets of phase and checkpoint

– Coordination: defines the roles of each player when and with whom.

– Planning: timing for start to end of each process

– Management: tools for assessing performance for ongoing development

effort.

– Improvement: documentation for easy identification opportunity for

improvement.

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 Generic Development Process, cont’d

• The generic product development process consists of six phases

Phase 0 Phase 2 Phase 4

Planning System- Testing and
Phase 3 Phase 5
Phase 1 level Design Refinement
Detail Production
Concept Ramp-up
Development Design

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 Generic Development Process: Planning Phase

• Phase 0
• Activities:
• Marketing team
– Describe market opportunity
• Design team
– Consider existing product platform (if any)
– Consider new technologies
• Manufacturing team
– Identify production and/or corporate potential & constraints
• Other
– Management: Allocate project resources

Corporate strategy/
Customer demand Phase 0 Mission statement

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 Generic Development Process: Concept Development

• Phase 1: using mission statement as input, alternative product concept will

be generated & evaluated,
• Activities
• Marketing team
– Identify customer needs; research competitive landscape
• Design team
– Develop concepts ;Determine feasibility of design concepts
– Build and test prototypes
• Manufacturing team
– Estimate manufacturing costs
• Other
– Investigate patent issues Product concept
and proof-of-
Mission statement Phase 1 concept prototype
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 Generic Development Process: Phase 2 & 3
• Phase 2: System-level design: decomposition of product to subsystem,
and set for product architecture.

• Phase 3: Detail design: complete specification of component geometry,

material and tolerance are set.
• Activities
System-level design Detail Design
Marketing team  Develop extended product family  Develop marketing plan
Design team  Describe all subsystems and  Select geometric layout
components and create industrial
 Develop software design
 Create prototypes of each  Choose all parts and
subsystem tolerances

Manufacturing  Identify suppliers  Define assembly process

team  Create assembly scheme & obtain tooling
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 Generic Development Process: Testing and refinement

• Phase 4: follows construction and evaluation of multiple preproduction

versions of the product, Model, Prototype
• Activities:
• Marketing team
– Develop plans for field testing
• Design team
– Create alpha and beta prototypes
– Performance and reliability testing
– Iterate and refine design
• Manufacturing team
– Refine assembly and fabrication schemes
– Create quality assurance strategy

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 Generic Development Process: Production Ramp-up

• Phase 5 : comprehend in product manufacturing with intended

production system.

• Activities

• Marketing team

– Get first-run products to “preferred customers”

• Design team

– Evaluate first-run output

• Manufacturing team

– Start production

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 Adopting the Generic Product development

• It is evident that, all products we see in our daily life don’t need the same
design and development process.

• The generic development process is most likely fit for a market-pull

product.

– In market-pull product: team begins with market opportunity and

select appropriate technologies to meet customer needs

• For Technology - push product, Platform products, Process-intensive

products, Customized products, High-risk products, Quick-build products,
and Complex system the generic development process can be adopted with
minor modification.

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 Cont’d

Examples Opportunity and way for adopting

Team have a new technology for promising
Nanotechnology market opportunity
Technology-
push
products for  Planning phase involves matching technology
biomedical, and market.
Products
surveillance (robot)  Concept development assumes a given
technology

Conventional laths, Team can assumes built-in technology

Platform electric driven screw subsystem to produce new one
Products driver, drilling Concept development assumes a proven
machine, technology platform

Team understand the products highly been

Tubular structures, constrained by production process.
Process-
intensive
aluminum or steel  Existing production process must be specified
profile structures, from the start,
Products
ribbed bar,  Else, both product and process must be
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developed together
 Adopting the Generic Product dev’t , Cont’d

Examples

Customized •Standard items: Team prerelease a slight variations of existing

products configuration
Motors, switches,
A streamlined and highly structured development
bearing, bolt & nut
process analogous to production process system
followed.

System must be decomposed into several

subsystems and many components
Complex Airplane;
System automobile Subsystem and components are developed by
many teams working parallel, followed by system
integration.

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 Product Development Process Flows
• Once the PD process is set, a process flow diagram support to explain the
process explicitly.
System- Testing
Concept Producti
Level Detail &
Planning Develop on
Design Refinem
ment Design Ramp-Up
ent
Mission Concept System Spec Critical Design Production
approval review review review approval

Figure 2.1 Generic Development Process

• Process diagram of the generic product development depicts for market-

pull, technology-push, platform, process-intensive, customized and high
risk products.

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 Product Development Process Flows, cont’d
 For quick-build product development process, diagram flow can be
depicted as, figure 2.2
Many Iteration cycles

Concept System-Level Production

Planning Design Build Test
Development Design Ramp-Up

Mission Concept Cycle plan Cycle

approval review review review

Figure 2.2 Quick-build Development Process

 The process flow for complex systems shown in figure 2.3

Design & Test

Concept System-Level Design & Test Integrate & Production

Planning Testing Ramp-Up
Development Design
Design & Test
Mission Concept Cycle Critical Design Production
approval review review review approval

Figure 2.3 Complex system

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 Product Development Organization
• Alongside to establishing effective development process for PDD, firm
should have to organize their PDD staffs effectively for reliable and quality
product realization.
– PD organization can be formed by establishing links among individuals
– PD organization links might be aligned with function, project, or both.

• Links among individual might be formal and informal

– Reporting relationships: ..formal link rely on hierarchy of organization
structure

– Financial arrangements: ..formal link rely on similar budget category

– Physical layout:..informal link owing to spontaneous interaction at

work.
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 Product Development Organization, cont’d
• Link aligned with function or project
– Functional …similar profession and skill /experience set primarily for
executing PDD.

– Project …team equipped with different professionals from different functions.

(a)
(b)
Figure 2.4 Development organization (a) Functional and (b)Project
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 Product Development Organization, cont’d

• Link aligned in matrix form, i.e. hybrid for functional and project
organization
– Heavyweight project organization: complete budget authority, makes major
resource allocation decisions, etc.
– Lightweight project organization: weaker project links and relatively
stronger functional links.

Figure 2.5 Project Matrix organization (a) Light weight and (b)Heavyweight 28
Summary of the first three phases of Development process

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PRODUCT PLANNING
Product Planning 30
 Introduction
• Product planning is an activity that considers
– the selection of projects that an organization might pursue, and
– determine what/which subset of these projects will be pursued over
what time period.
• A product planning process takes place before
– PD formally approved, before substantial resource are applied & large
development team is formed.
• A product planning activity ensures to support the broader business
strategy of the company and addresses these questions:
– What product development projects will undertake?
– What mix of fundamentally new products, platforms, and derivative
products should be pursued?
– How do the various projects relate to each other as a portfolio?
– What will be the timing and sequence of the projects?

Product Planning 31
 Introduction, cont’d…
• Mission Statement: it is the final output of product planning, and answers

– what market segments should be considered in designing the product

and developing its features?

– what new technologies should be incorporated into the new product?

– what are the manufacturing and service goals and constraints?

– what are the financial targets for the project?

– what are the budget and time frame for the project?

– and more

Product Planning 32
 Types of Product Development Projects
1. New product platforms:
 a new family of products based on a common platform created to address
familiar market and retain customer. Ex.: Touch screen mobile phone, computers,
automobile, etc.
2. Derivatives of existing product platforms:
 projects extend an existing product platform to better address familiar markets
with one or more new products. Ex : 4 in 1 printing machine, smart screw driver
3. Incremental improvement to existing products:
 projects involve adding or modifying some features of existing products in order
to keep the product line current and competitive, Ex. Arm chair, office furniture's,
tractor with different attachment
4. Fundamentally new products:
 projects involve radically different product or production technologies and
may help to address new and unfamiliar markets.
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Product Planning
 Product Planning Process
• PD opportunities that has been identified either from marketing,
customers, current PD teams, and benchmarking of competitors, a
portfolio/set of projects shall be chosen, timing of projects shall be
outlined, and resources should be allocated.
• Organizations that do not carefully plan the portfolio potentially face,
 inadequate coverage of target markets with competitive products.
 poor timing of market introductions of products.
 poor distribution of resources, with some projects overstaffed and
others understaffed.
 frequent changes in the directions of projects,
 more

Product Planning 34
 Product Planning Process Flow
• To develop a product plan and project mission statements, a five-step
process can be applied

1. Identify opportunities.

2. Evaluate and prioritize projects.

3. Allocate resources and plan timing.

4. Complete pre-project planning.

5. Reflect on the results and the process.

Fig 3.1 The product planning process.

Product Planning 35
 Step 1: Identify opportunities
• The identification of PD opportunities (opportunity funnel) is closely related
to the activity of identifying customers need.

• Some proactive approaches are:

– Document of complaints from current customers experience

– Systematically gather suggestions of current customers

– Carefully study on competitors products on current basis.

– Consider implications of trends in life styles, demographics, and

technology for existing product categories and for opportunities for new
product categories.

Product Planning 36
 Step 2: Evaluate and Prioritize Projects
• Four basic perspectives are useful in evaluating and prioritizing opportunities for
new products in existing product categories,

 Competitive strategy, Product platforms , Market segmentation, and

Technological trajectories

A. A Competitive strategy can be approached in either :

Technology leadership
Cost leadership
Customer focus
Imitative
B. Product Platform Planning

– the product platform is the set of assets, components and subassemblies,

shared across a set of products.
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 Step 2: Evaluate and Prioritize Projects, cont’d…

C. Market Segmentation:

– It is the process of grouping customers based on their similarities

• Market segmentation allows a company to:

– Understand the different behavioral patterns and decision-making

processes of different group of consumers

– Select the most attractive segments or customers the company should target

– Develop a strategy to target the selected segments based on their behavior

D. Technological Trajectories:

– A product planning decision is when to adopt a new basic technology in a

product line.

Product Planning 38
 Step 3 Allocate Resources and Plan Timing
• Challenge on affording to invest to every PD opportunity in its desired
balanced portfolio
– the attempt to assign resources and plan timing almost always results
in a return to the prior evaluation and prioritization step

• Resource allocation
– Aggregate planning in org. make efficient use of its resources by
pursuing only those projects that can reasonably be completed with the
budgeted resources.
• Plan by month, quarter or year base resource allocation is essential

• Project timing (pipeline management):

– determining the timing and sequence of projects:
• Timing of product introductions ; Technology readiness; Market
readiness; Competition
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Product Planning
 Step 4: Complete Pre-Project Planning

• Once the project has been approved, but before substantial resources are
applied, a pre-project planning activity takes place.
– Carried by a small, cross-functional team of people, core team, works on
project planning
• A product vision statement are at early stage of opportunity is rewritten
– Very general, not specific entities, goals and constraints
• Mission statement
– Brief description of the product
– Key business goals: time, cost, and quality
– Target market(s) for the product : primary and secondary markets
– Assumptions and constraints that guide the development effort
– Stakeholders: all who affected by the product success and failure
Product Planning 40
 Step 5: Reflect on the Results and the Process

• Since the mission statement is the handoff to the development team, a

“reality check” must be performed before proceeding with the development
process.

• Questions to asses the quality of both the process and the results should be
raised and summarized by core team, Some suggested questions are:
– Is the opportunity funnel collecting an exciting and diverse set of
product opportunities?
– Does the product plan support the competitive strategy of the firm?
– Does the product plan address the most important current opportunities?
– Are the total resources allocated to PD sufficient?
– Does the core team accept the challenges of the resulting mission
statement?
– How can the product planning process be improved?

Product Planning 41
Product Planning 42