product design and development ch4
TRANSCRIPT
Product Planning
Teaching materials to accompany:Product Design and Development
Chapter 4
Product Design and DevelopmentKarl T. Ulrich and Steven D. Eppinger5th edition, Irwin McGraw-Hill, 2012.Chapter Table of Contents:1.Introduction
2.Development Processes and Organizations
3.Opportunity Identification
4.Product Planning5.Identifying Customer Needs
6.Product Specifications
7.Concept Generation
8.Concept Selection
9.Concept Testing
10.Product Architecture
11.Industrial Design
12.Design for Environment
13.Design for Manufacturing
14.Prototyping
15.Robust Design
16.Patents and Intellectual Property
17.Product Development Economics
18.Managing Projects
Session Outline Product development opportunities Sourcing ideas on a
regular basis
Market competition Planning products w.r.t competition
Technology The concept of technology S-curves
Portfolio planning The need for balanced portfolios; product-process change map & aggregate product planning
Mission statements For each project
Objectives & Strategy Product development teams generally begin with a project
mission statement. This relates strongly to concepts of corporate strategy.
A cross-functional planning process develops the product development team's mission statement.
Note: The multiple-product, multiple-project context of product development in established firms. The ability to choose the right set of development
projects and to define the scope of these projects in such a way that they are complementary
Planning
Product Development Process
ConceptDevelopment
System-LevelDesign
DetailDesign
Testing andRefinement
ProductionRamp-Up
Four Phases of Product Development
The product planning phase precedes the product development process.(i.e., before substantial resources are applied)
It considers the portfolio of projects that an organization might pursue
Product Planning Ensures product development projects support the broader
business strategy of the company. Addresses: What product development projects will be undertaken? 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 projects?
Product Development Teams Work on selected projects and start with a mission. The mission statement answers: What market segments should be considered in designing
the product and developing its features? What new technologies (if any) should be incorporated into
the new products? What are the manufacturing and service goals and
constraints? What are the financial targets for the project? What are the budget and the time frame for the project?
The Product Planning Process
The product plan identifies the portfolio of products to be developed by the organization and the timing of their introduction to the market through proper allocation of resources.
The planning process considers: Product dev. Opportunities identified from various sources Suggestions from marketing, research, customers, current
product development teams Benchmarking of competitors
InefficienciesSome inefficiencies in organizations that do not engage in
product planning: Inadequate coverage of target markets with competitive
products. Poor timing of market introductions of products. Mismatches between aggregate development capacity and
the number of projects pursued. Poor distribution of resources, with some projects
overstaffed and others understaffed. Initiation and subsequent cancellation of ill-conceived
projects. Frequent changes in the directions of the projects.
Xerox Lakes Project Example
Xerox Document Centre 265
Xerox’s Competitive Strategy Exploit
technological innovation in a rapidly
changing market
DIGITAL COPIER PLATFORM
(AS OPPOSED TO EXISTING LIGHT
LENS )
TQ-1: How might a portfolio of development projects differ for product technologies at position A or B?
Concept of S-Curves
Draw S-curves of your choice. What are the disruptive technologies here? What dimensions of performance are affected?
The Product PlanThe product plans developed by keeping in mind: Company’s goals Capabilities Constraints Competitive environment
The product plan is regularly updated to reflect changes in: Competitive environment Technology Info on successes of existing products
Product Plan
Exh 3-2: The product plan identifies the portfolio of projects to be pursued by the development organization. This plan divides projects into four categories.
The Product Planning Process
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 processes.Note: Selecting a promising project is iterative in
nature
Step 1: Identify opportunitiesSources of product development opportunities:
Marketing/Sales Research/Technology Development (Xerox PARC) PD Teams Manufacturing Customers Third party: Suppliers, Inventors, and business partners Other business groups (Xerox Supplies Division)
Some proactive approaches: Document frustrations and complaints Study Competitors’ products (Competitive benchmarking) Track the status of emerging technologies More…see text
XeroxSome opportunity statements proposed at Xerox: Create a document distribution system in which a
networked printing, device resides on each office worker’s desk and automatically drives mail and other documents.
Create document delivery software that allows the digital delivery and storage of most intra-organizational documents via a worker’s personal computer.
Opportunity statement: Lakes Project Develop a new black & white (B&W), digital, networkable,
document center platform for the office market, including scanning, storage, fax, distribution, and printing capabilities
Step 2: Evaluate and Prioritize ProjectsCompetitive strategies
Technology leadership Cost leadership Customer focus Imitative
Market SegmentationTechnology TrajectoriesProduct Platform PlanningEvaluating Fundamentally New Product OpportunitiesBalancing the portfolio
Technology leadership Basic R & D
Cost leadership Superior manufacturing methods; Design for manufacturing to reduce costs
Customer focus Rapid development of derivatives through carefully designed product platforms
Imitative Fast development process
Competitive Strategies
Market Segmentation: Market Segment Map
Exh 3.4: Product segment map showing Xerox B&W digital products and the competition in three markets (Segmentation based on number of users sharing office
equipment) . Key performance dimensions pages per minute & networking capability
Technology Trajectories
Q: How near or far is the ultimate performance limit?
Exh 3.5: This technology S-curve illustrates that Xerox believed
digital copier technologies were just emerging and will improve product performance in coming
years. Xerox believed that it could develop a full-featured digital copier in the near future with performance exceeding that of
light-lens copiers.
Product Platform Planning: Platforms vs. Derivatives
Ex 3.6: A platform development project creates the architecture of a family of products. Derivative products may be included in the initial platform
development effort (Platform A) or derivative products may follow thereafter (Platform B)
Platform Set of assets shared across a set of products (e.g. components & sub assys)Derivatives For different segments
Ex 3.7: This technology roadmap shows the life cycles of several digital
photocopying technologies & identifies
which technologies would be used in each
product. For Lakes platform Higher speeds
and color capabilities required of its
derivatives.
Product Platform Planning: Technology Roadmap
Note: decisions about product platforms are closely related to the
technology development efforts
of the firm
Some criteria for evaluating fundamentally new product opportunities: Market size (units/year * average price) Market growth rate (percent per year) Competitive intensity (#competitors & their strengths) Depth of the firm’s existing knowledge of the markets Depth of the firm’s existing knowledge of technology Fit with the firm’s other products Fit with the firm’s capabilities Potential for patents or other barriers to competition Existence of a product champion within the firm
Evaluating Fundamentally New Product Opportunities
Ex 3.8: The product-process change matrix The extent to which the project involves changes in the
product line and/or the production processes Helps identify projects breakthrough opportunities as
well as incremental improvements Firms typically benefit from a diverse set of projects Firm’s choice of competitive strategy influences product
development portfolio:
(FIRM STRATEGY) (PORTFOLIO) LOW COST STRATEGY MORE OF PRODUCTION
PROCESS IMPROVEMENT PROJECTS HIGH PRODUCT VARIETY DERIVATIVE
PRODUCTS UPON EXISTING PLATFORMS TECHNOLOGICAL SUPERIORITY TECH DEV. &
BREAKTHROUGH PROJECTS
Balancing the portfolio
Product-Process Change MatrixExtent of Production Process Changes
Ext
ent o
f Pro
duct
Cha
nges
NewCore
Process
NextGeneration
Process
SingleDepartment
Upgrade
Tuning andIncremental
Changes
NoProcessChange
NewCore
Product
NextGeneration
Product
Additionto Product
Family
MinorProduct
Enhancement
NoProductChange
LakesProject
Research andTechnology
Development
BreakthroughDevelopment
Projects
PlatformDevelopment
Projects
DerivativeProduct
Development
CurrentProduct/Process
Support
Step 3:Allocate Resources & Plan Timing
Resource Allocation Careful use of the limited development resources Avoid starting too many projects. May result in:
Skilled engineers and managers stretching their capabilities Affects productivity, time-to-market, quality, and profitability
Aggregate Product Planning (Ex 3.9): makes efficient use of resources within budgeted resources
Project Timing Timing of product introductions Technology readiness Market readiness Competition
The Product Plan (Exhibit: 3.2) Set of projects approved by the planning process and sequenced in time. Mix of: Fundamentally new product, platform and derivative projects. Updated periodically as a part of the strategic planning activity.
Aggregate Resource Planning
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Ex 3.9: Aggregate Resource Planning
Product Plan
Exh 3-2: The product plan identifies the portfolio of projects to be pursued by the development organization. This plan divides projects into four categories.
The Product Plan (Exhibit: 3.2)•Set of projects approved by the planning process and sequenced in time.•Mix of: Fundamentally new product, platform and derivative projects.•Updated periodically as a part of the strategic planning activity.
Step 4: Complete Pre-Project PlanningProduct Vision Statement
Develop a networked, mid-range digital platform for imaging, marking, and finishing
Mission Statements Brief (one sentence) description of the product Key business goals Target market(s) for the product Assumptions and constraints that guide the development effort Stakeholders
Assumptions and constraints Manufacturing Service Environment
Staffing and other pre-project planning activities
Lakes Project Mission StatementProduct Description
Networkable, digital machine with copy, print, fax, and scan functionsKey Business Goals Support Xerox strategy of leadership in digital office equipment Serve as platform for all future B&W digital products and solutions Capture 50% of digital product sales in primary market Environmentally friendly First product introduction 4thQ 1997Primary Market Office departments, mid-volume (40-65 ppm, above 42,000 avg.
copies/mo.)Secondary Markets Quick-print market Small ‘satellite’ operationsAssumptions and Constraints New product platform Digital imaging technology Compatible with Centre Ware software Input devices manufactured in Canada Output devices manufactured in Brazil Image processing engine manufactured in both USA and EuropeStakeholders Purchasers and Users Manufacturing Operations Service Operations Distributors and Resellers
Product Description Networkable, digital machine with copy, print, fax, and scan functions
Key Business Goals Support Xerox strategy of leadership in digital office equipment Serve as platform for all future B&W digital products and solutions Capture 50% of digital product sales in primary market Environmentally friendly First product introduction 4thQ 1997
Primary Market Office departments, mid-volume (40-65 ppm, above 42,000 avg. copies/mo.)
Secondary Markets Quick-print market Small ‘satellite’ operations
Assumptions and Constraints New product platform Digital imaging technology Compatible with Centre Ware software Input devices manufactured in Canada Output devices manufactured in Brazil Image processing engine manufactured in both USA and Europe
Stakeholders Purchasers and Users Manufacturing Operations Service Operations Distributors and Resellers
Lakes Project Mission Statement
Assumptions & ConstraintsSome may ask: Why manufacturing, Service and Environmental strategies
should be part of the mission statement for a new product?
Some may even hold: Decisions about these issues should arise from customer
needs for new products and should not be determined in advance.Why then do we have Xerox mentioning these in the
project mission statement?
Assumptions & Constraints (contd..) For complex projects (as in this Xerox example), the design of
the manufacturing systems are equally complex. Thus manufacturing facilities involved in the product need
to be identified very early in the process.
Some product requirements cannot be derived strictly from customer needs. Environmentally responsible design (as a Corporate
Responsibility of Xerox
Mission statements must reflect such corporate objectives and constraints.
Assumptions & Constraints (contd..)For Lakes Project of Xerox
Manufacturing Capabilities, capacities, and constraints of existing manufacturing
processes Which internal production facility to be used? What key suppliers to be involved and when? For Xerox: Input devises at Canada, Output devices in Brazil etc.
Service Note: Customer service and service revenue important in this
business Strategic goals for improving service quality
Designing components requiring few parts Designing for ease of serviceability (quick service)
Environment Design for environment
Developing new products with environmental sustainability Xerox’s “Zero to landfill” policy with an energy efficiency goal “most efficient
machine in its class” Remanufacture or recycle [no part should be disposed by the customer to end up
in a landfill]
Step 5: Reflect on the Results & the ProcessSome suggested questions: 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
facing the firm? Are the resources allocated product development adequate to pursue the
firm’s competitive strategy? Have creative ways of leveraging finite resources been considered…? Does the core team accept the challenges of the resulting mission
statement Are the elements of the mission statement consistent? Are assumptions listed in the mission statement really necessary or is the
project over-constrained? Will the development team have the freedom to develop the best possible design?
How can the product planning process be improved?