Product design and Development

By
Prashanth.P
Lecturer - I.E.M
S.I.T
 A product is something sold by an enterprise to its customers

Product development is the set of activities beginning with the perception

of a market opportunity and ending in the production, sale and delivery of
products
Characteristics of successful product development

 Product quality
Customer needs? Robust, reliable?
 Product cost
Profits? Perceived value?
 Development time
Window of opportunity? Economic returns?
 Development cost
Profits?
 Development capability
Learning opportunity?
Who designs and develops products
 Marketing
Interface between firm and its customers
Opportunities, market segments, customer needs
Pricing, launch and promotion
 Design
Form and function
Engineering, industrial design
 Manufacturing
Design/operate production system
Challenges of Product Development

Trade-offs

Dynamics

Details

Time pressure

Economics

Why Product development is interesting

Getting something to work

Satisfying societal needs

Team diversity

Team spirit
Chapter number -2

Development Processes
and Organizations
 A Well-defined Development Process is useful
for the following reasons
• Quality assurance
– Following the process is one way to assure the quality of the
product
• Coordination
– It helps act like a master plan to let team members know
when to contribute and whom to work with to exchange
information & materials
• Planning
– Built in milestones related to each phase
• Management
– Able to assess performance of the ongoing development
effort
• Improvement
– Good documentation helps to I.D. opportunities to improve
 Product Development Process

Concept
Concept System-Level
System-Level Detail
Detail Testing
Testingand
and Production
Production
Planning
Planning Development Design Design Refinement Ramp-Up
Development Design Design Refinement Ramp-Up

Four Phases of Product Development

The product planning phase precedes the product development process.

o. Planning:
The planning activity is often referred to
as "phase zero" since it precedes the project
approval and launch of the actual product
development process

The output of the planning phase is the project mission

statement, which specifies the target market for the
product, business goals, key assumptions, and
constraints
1. Concept development: In the concept development
phase, the needs of the target market are identified,
alternative product concepts are generated and evaluated,
and oneor more concepts are selected for further
development and testing.

A concept is a description of the form, function, and

features of a product and is usually accompanied by a set
of specifications, an analysis of competitive products,
and an economic justification of the project
2. System-leveldesign: The system-level design phase
includes the definition of the product architecture and the
decomposition of the product into subsystems and
components. The final assembly scheme for the
production system is usually defined during this phase as
well.

The output of this phase usually includes a geometric

layout of the product, a functional specification of
each of the product's subsystems, and a preliminary
process flow diagram for the final assembly process.
3. Detail design: The detail design phase includes the complete specification of
the geometry, materials, and tolerances of all of the unique parts in the product
and the identification of all of the standard parts to be purchased from
suppliers. A process plan is established and tooling is designed for each part to
be fabricated within the production system.

The output of this phase is the control documentation for the

product-the drawings or computer files describing the geometry
of each part and its production tooling, the specifications of the
purchased parts, and the process plans for the fabrication and
assembly of the product. Two critical issues addressed in the
detail design phase are production cost and robust performance
 4. Testing and refinement: The testing and refinement phase involves the
construction and evaluation of multiple preproduction versions of the
product.

(alpha) prototypes are usually built with production-intent parts-parts with the same
geometry and material properties as intended for the production version of the
product but not necessarily fabricated with the actual processes to be used in
production

(beta) prototypes are usually built with parts supplied by the intended production
processes but may not be assembled using the intended final assembly process
5. Production ramp-up: In the production ramp-up phase, the product is made using
the intended production system. The purpose of the ramp-up is to train the work
force and to work out any remaining problems in the production processes.
Products produced during production ramp-up are sometimes supplied to preferred
customers and are carefully evaluated to identify any remaining flaws
0. Planning 1. Concept 2. System-Level 3. Detail Design 4. Testing and 5. Production Ramp-
Development Design Refinement Up

Marketing

Articulate the market Collect customer Develop plan for Develop marketing Develop promotion and Place early production
opportunity. needs. product options plan. launch with key
Define the market Identify lead users. and extended materials. customers.
segments. Identify competitive product family. Facilitate field testing.
products.

Design

Consider product Investigate feasibility Generate alternative Define part geometry. Reliability testing. Evaluate early
platform and of product product Choose materials. Life testing. production
architecture. concepts. architectures. Assign tolerances. Performance testing. output.
Assess new Develop industrial Define major Complete control Obtain regulatory
technologies. design subsystems and documentation. approvals.
concepts. interfaces. Implement design
Build and test Refine industrial changes.
experimental design.
prototypes

Manufacturing

Identify production Estimate Identify suppliers for Define piece-part Facilitate supplier Begin operation of
constraints manufacturing key production ramp-up. entire
Set supply chain costs. components. processes. Refine fabrication and production
strategy. Assess production Perform make vs. by Design tooling. assembly system.
feasibility. analysis. Define quality processes.
Define final assembly assurance Train work force.
scheme. processes. Refine Quality
Begin procurement of assurance
long-lead processes.
tooling.
 Concept Development: The Front-End Process

The activities below are not always linear in fashion. The activities may overlap in
terms of time and iteration (repetition) is often necessary due to new
information or results.
 Identifying Customer Needs
• Important to know their needs and
effectively communicate them to the
development team.
• Output results in:
– Customer needs statements
– Organized in a hierarchical order
– Each need is assigned a rating of importance
 Establishing Target
Specifications
• Specifications define what the product is
supposed to do.
• Serves as a translation of customer needs
into technical terms.
• Target specs are set early and refined as
the team zeros in on a choice of product
concept.
 Concept Generation
• The goal is to thoroughly explore the space of
product concepts that may address the customer
needs.
• Consists of:
– External searches
– Creative problem solving within the team
– Results in maybe 10 to 20 concepts, each with a
sketch and brief description
 Concept Selection
• A process where each concept is evaluated to
identify the most promising concepts.
• Requires several iterations and may cause
additional concept generation and refinement.
 Concept Testing
• One or more concepts are tested to verify the
customer needs have been met.
• To also assess the market potential of the
product.
• Identify any shortcomings before any further
development.
• Poor customer feedback could result in
terminating a project.
Setting Final Specifications

• Previous target specifications are revisited

AFTER a concept has been selected and
tested.
• The project team needs to commit to specific
values of metrics for the final specifications.
• Technical modeling done and they look at
trade-offs between cost and performance.
 Project Planning
• During this final activity the team
– Creates a detailed development schedule
– Comes up with a strategy to minimize
development time
– I.D. resources required to complete the
project
 The result = Contract Book
• Contains
– Mission statement
– Customer needs
– Details of the selected concept
– Product specifications
– Economic analysis of the product
– Development schedule
– Project staffing
– Budget
Adapting the Generic Product
Development Process
Process Type Description Examples

Market Pull Team begins with market Fuel efficient cars

Most designs
opportunity are one
and selects of these two, with
technology
Market pull as the
to meet customer primary.
needs.
Technology Push Team begins with a new Velcro
technology, then finds an
appropriate market.
Platform Products The team assumes that the new Many new cars share the same
product will be built around an chassis (Civic and CRV) (Nissan
established technological Ultima and Maxima –just laser
subsystem. blank different wheel base)
Process-Intensive Characteristics of the product are Coke
Products highly constrained by the
More thanprocess.
production one of these may apply.
Customized New products are slight variations Boiling water reactor pressure
Products of existing configurations. vessels
High-Risk Technical or market uncertainties Nuclear power plants, drug
Products create high risks of failure. delivery devices
Quick-Build Rapid modeling and prototyping Software
Products enables many design-build-test
cycles.
Complex Systems System must be decomposed into Space shuttle
several subsystems and many
 http://en.wikipedia.org/wiki/Technology_push

Aging Baby
Aerogel is a Boomers have
technology created a number
looking for of marketing
commercial opportunities
applications

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 Generic (Market Pull)
• A firm begins with a market
opportunity, then finds
appropriate technologies to
meet customer needs
• Examples:
– Most sporting goods (golf
putters)
– Furniture (IKEA)
– Tools
 Technology-Push Products
• A firm begins with a new technology, then
finds an appropriate market
– the post-it note
– Gore-Tex Rainwear
• Planning phase involves matching the
technology to the market
 Platform Products
• A firm assumes that the new
product will be built around
an established technological
sub-system
• Consumer electronics,
computers, printers
• PT Cruiser – Dodge Neon
 Source:
Development Car Division
Volkswagen A-Platform

Audi A3
(3+ 5-door)

Audi TT coupe

Audi TT roadster

VW Golf IV VW Bora VW Beetle Skoda Octavia

(3+5 door, station (Bora sedan, (New Beetle, (Octavia sedan,
wagon, coupe, convertible, New Beetle and station
convertible, and and station wagon) convertible) wagon) Seat Toledo
Minivan) Successor
• VW plans for 19 vehicles based on A-platform (Toledo, coupe, station
wagon, and
• VW estimates development and investment cost convertible)
savings of $1.5 billion/yr using platforms
 Platform Products

Dyson Vacuum cleaners are all

built around the same “Cyclone”

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 Process-Intensive Products
• Characteristics of the product are highly
constrained by the production process.
• Both the product and the process must be
developed together from the very start, or
an existing production process must be
identified first
• Frito-Lay snack foods, chemicals, semi-
conductors, computer memory
 Customized Products
• New products are slight variations of
existing configurations.
• Examples include:
– Switches
– Motors
– Batteries
– Containers
• i.e. – Pepsi bottles and other drink packages for
markets around the world
 Customized Products

While Pacific Bearing has a large number of stock choices, they also sell
unique combinations and modifications of existing designs

http://www.pacific-bearing.com/default.aspx
 Product Development Process

Concept
Concept System-Level
System-Level Detail
Detail Testing
Testingand
and Production
Production
Planning
Planning Development Design Design Refinement Ramp-Up
Development Design Design Refinement Ramp-Up

Four Phases
3 speed of Product Development
to 4 speed
GM sees
Energy Crisis, or
needs better Continuously variable
gas mileage (GM Tech Center)
The product planning phase precedes the product development process.
For transmissions, e.g. Find clutch area
more speeds = needed for full throttle
better mileage upshift with current
engine.
(Division Level)
The AMF Development
Process
 

Beautiful engraved Stock Certificate from The AMF Company - previoulsy known
as American Machine and Foundry dated 1960's-1970's. American Machine and
Foundry formally changed their name in 1971 to the AMF Company since they
were out of the foundry business and concentrating their efforts on bowling
equipment. This item has an orange ornate border with a vignette of an
allegorical man sitting in front of a factory.
Product Development Organizations

Successful firms need to effectively

organize their product development
staffs. Lets look at several types of
organizations.
 Organizations Are Formed by
Establishing Links among Individuals
• Reporting relationships
• Financial arrangements
• Physical layout
Organizational Links May Be Aligned
with Functions, Projects, or Both
 Choosing an Organizational Structure
• Organizational structure depends on
organizational performance factors critical to
success.
– Functional organizations have specializations and
expertise in functional areas.
– Project organizations are better suited to enable rapid
and effective coordination among diverse functions.
– Matrix organizations (hybrids) contain a little of both.
Matrix Organizations
 The AMF Organization
• Decided to adopt a “matrix structure” for its
product development staff.
– General Manager
– Functional Manager (each mgr. reports to G.M.)
• Engineering
• Manufacturing
• Marketing
• Sales
• Purchasing
• Quality assurance
 The AMF Organization
• Product Development Projects
– Led by Project Manager
– There are Project Teams
• Team members for each Project Team are pulled from the
functional areas of:
– Engineering
– Manufacturing
– Marketing
– Sales
– Purchasing
– Quality assurance
 The AMF Organization
• AMF Matrix Organization
– Resembles a “lightweight project organization.”
• Why? Project managers are NOT the most senior level
mangers and therefore lack direct control over resources
(budget) and staffing (people) for the PROJECT TEAMS
and,
• AMF has many small projects and a few big projects
ongoing. The mixed size of projects has team members
committed on a “part-time” basis.
• People (less than 100 salaried employees) work in the
Capital Equipment Division with sales over $100 million.
• Small division with employees sharing financial rewards
when their division is profitable!
 The AMF Organization
• Project managers are held responsible for successful
projects. A Project Manager from a functional area is
responsible for the overall success and not just in his or
her functional area!
• General managers’ (senior management) influence on
product development and personal interest in each of
their associated projects contributes to the overall
success of the project(s).
• The Division message is on successful products rather
than strong functional areas.
QUBICA AMF
What happened to AMF Bowling
Worldwide in 2001?
•http://www.scripophily.net/amfcompany.html
They also own and operate 36 centers in Australia, 21
in the United Kingdom, 9 in Mexico, 6 in southern
Europe, 6 in Hong Kong/China, and 5 in Japan.
Bowling's appeal transcends cultural, language,
demographic and geographic boundaries. It's a sport
with a rich tradition and even brighter future. As the
largest company in the world focused solely on
bowling, AMF is excited about the prospect of moving
bowling to a new level of recreational and competitive
fun throughout the globe. This historic item is a very
collectible piece.
AMF's success underscores the dynamic growth that can be achieved by
focusing on the development of the world's most popular recreational activity,
bowling. Today's AMF is a global manufacturer and marketer of bowling
products, and the owner and operator of more than 500 bowling centers in 11
countries. Their mission in their bowling products business is to provide our
trade partners and bowling proprietor customers with the highest quality
products, to make the experience of their consumers as enjoyable and
successful as it can be. Within their own bowling centers, their goal is to build on
the popularity of bowling and provide an active, recreational fun experience for
friends and family. Bowling is a growth business, both in the United States and
worldwide. During the past year alone, they acquired the 50-center Bowling
Corporation of America chain and American Recreation Centers, Inc., which
operated 43 bowling centers in six states. Internationally, AMF's focus is on
emerging markets that hold huge and exciting potential for bowling. With 25
sales offices around the globe, their bowling products business supplies more
than 10,000 centers worldwide.
Thank You