Chapter 2 Product Development
Chapter 2 Product Development
Lecture
on
product development process
By
Tewodros Y.
1
Contents
General problem solving process
Flow of work during the process of designing
Product development process
Control documents
Factors for success
Product and process cycles
Organization structure for design and product
development
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Think About It!
• Think of two products what you know
• Are they new or old?
• Product Improvements
General Problem Solving Process
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Cont…
5
Cont….
Confrontation: Every task involves an initial confrontation of the
problem, which involves elucidating what is known or not (yet)
known.
The intensity of this confrontation depends on the knowledge, ability and
experience of the designers, and on the particular field in which they
are engaged.
• Information: This information can also reduce confrontation and
increase confidence that solutions can be found.
• the definition phase, where the essential problems (the crux of the
task) are defined on a more abstract plane, in order to set the
objectives and main constraints.
• creation, where solutions are developed by various means and then
varied and combined using methodical guidelines.
• Evaluation: If the number of variants is large, there must also be an
evaluation which is then used to select the best variant through a
decision.
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Cont…
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Flow of Work During the Process of Designing
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Product Development
12
Cont…
• A generally accepted model of the product development process
is shown in figure below.
• The six phases shown in this diagram generally agree with those
proposed by Asimov for the design process with the exception of
the Phase 0, Planning, and the omission of Asimow’s Phases VI
(Planning for use) and VII(Planning for product retirement).
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Every project must make two important decisions about
the way they will carry out their product development.
1. What is the Product Development Process and
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Phase 0 is the planning that should be done before the approval of
the product development project.
Product planning is usually done in two steps.
•The first step: determine the possible markets and whether the
product is in alignment with the corporate strategic plan.
•It also involves a preliminary engineering assessment to determine
technical and manufacturing feasibility.
•This preliminary assessment usually is completed in a month. If
things look promising after this quick examination, the planning
operation goes into a detailed investigation to build the business
case for the project. This could take several months to complete and
involves personnel from marketing, design, manufacturing, finance,
and possibly legal.
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Generic Phase/Gate Process
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Concept System-Level Detail Testing and Production
Development Design Design Refinement Ramp-up
Concept Development:
• Develop a “body of facts” about the proposed product
concept.
• Identify target market, establish customer needs, determine
technology requirements and availability.
• Generated alternative product concepts, and select a single
concept for further development.
• Propose initial product specifications.
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Generic Phase/Gate Process
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Concept System-Level Detail Testing and Production
Development Design Design Refinement Ramp-up
System-Level Design:
• Define the proposed product architecture,
• break into subsystems and components,
• complete initial feasibility evaluations of key subsystems,
• complete staffing /enrollment requirements and assignments,
and refine the functional specifications.
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Generic Phase/Gate Process
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Concept System-Level Detail Testing and Production
Development Design Design Refinement Ramp-up
Detail Design:
• Start full scale development of the product,
• begin initial prototyping of entire product, choose materials,
• develop detailed specifications for all components,
• develop test plans and quality objectives.
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Generic Phase/Gate Process
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Concept System-Level Detail Testing and Production
Development Design Design Refinement Ramp-up
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Generic Phase/Gate Process
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Concept System-Level Detail Testing and Production
Development Design Design Refinement Ramp-up
Production Ramp-up:
• The manufacturing operation begins to make and assemble the
product using the intended production system.
•complete documentation, complete final qualification testing,
• all parts and components available for production volumes,
production tooling complete,
• build first production runs, and release documentation to
production.
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Early phases of Product Development
Concept Development
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Concept Development Phase
Mission
Statement
Identify Establish Generate Select a
Refine
Customer Target Product Product
Needs Concept Specs/PDS
Specs/PDS Concepts
Development
Analyze Plan Plan
Perform Remaining
competitive Economic Development
Products Analysis Project
Concept Development
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Control Documents
It is important to maintain complete and accurate documentation
on a design project to insure that:
• the key plans,
• decisions,
• To finish on time,
• To be profitable,
• and results are captured and made available to everyone who will
impact or be impacted by the project.
• What else, list what you know about the proper documentation?
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Cont…
• Duplicated efforts by team members
• Problems being solved more than once because previous
results were not available.
• Management becoming alarmed because of mis-information
or rumors.
• Unclear project requirements and unclear customer needs
• Delayed projects because critical path activities were not
completed on time.
• Wrong parts being ordered
• etc.
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Factors for Success
• In commercial markets the cost to purchase a product is of
paramount importance.
• It is important to understand what the product cost implies and
how it relates to the product price.
• The difference between the price and the cost is the profit per
unit.
Profit = Product Price - Product Cost
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Cont…
There are four key factors that determine the success of a
product in the marketplace.
• The quality, performance, and price of the product.
• The cost to manufacture the product over its life cycle.
• The cost of product development.
• The time needed to bring the product to the market.
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Cont…
• Developing a product involves many people with talents in
different disciplines. It takes time, and it costs a lot of
money.
• Thus, if we can reduce the product development cost, the
profit will be increased. First, consider development time.
• Development time, also known as the time to market, is the
time interval from the start of the product development
process (the kickoff) to the time that the product is available
for purchase (the product release date).
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PRODUCT AND PROCESS CYCLES
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Cont…
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Product Life Cycle
Stage 4: Decline
• Sales and profit continue to drop
• There is no longer a demand for the product
• Product may be dropped by the company
• Good Example: cassette tapes
• Think about it!
Think of a product that is currently in each of the stages of
the product life cycle.
• Introduction
• Growth
• Maturity
• Decline
Organization For Design And Product Development
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Cont…
An important aspect of how an enterprise should be organized is
concerned with the links between individuals. These links have to do
with:
• Reporting relationships: A subordinate is concerned about who his
or her supervisor is, since the supervisor influences evaluations,
salary increases, promotions, and work assignments.
• Financial arrangements: Another type of link is budgetary. The
source of funds to advance the project, and who controls these funds,
is a vital consideration.
• Physical arrangement: Studies have shown that communication
between individuals is enhanced if their offices are within 50 feet of
each other.
• Thus, physical layout, whether individuals share the same office,
floor, or building, or are even in the same country, can have a major
impact on the spontaneous encounters that occur and hence the
quality of the communication.
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Example of a functional organization.
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Organization by Projects
• The other extreme in organizational structure is the
project organization,
• where people with the various functional abilities needed
for the product development are grouped together to
focus on the development of a specific product.
• These people often come on special assignment from the
functional units of the company.
• Each development team reports to a project manager, who
has full authority and responsibility for the success of the
project.
• Thus the project teams are autonomous units, charged
with creating a specific product.
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Cont…
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Discuss on
1. State the difference between product design and
product development?
2. list d/t products in different cycle?
3. discuss about the stages of PDP?
4. What did you understand from product life cycle?
5. How somebody/companies become profitable for
along time?
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Project work
Title:
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Thanks
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