product development.ppt @ bec doms
DESCRIPTION
Product development.ppt @ bec domsTRANSCRIPT
Product Development
Product Development:
A process to generate concepts, designs, and plans for services and goods that an organization can provide to its customer.
An Overview of Product Development in the Auto Industry
Number of parts in a car: 8,000 - 20,000
Cost: Ford Escort: $5 billion (1980s)
Dodge Neon: $1.3 billion (1990s)
Time-to-market: 3 - 5 years
New Product Development (NPD) Practices
1. Stage-Gate (Phased-Review) Systems
Stage: Where the work is done Gate: A set of criteria that the product must
pass before moving to the next stage
Gate keeper: senior management team
Users: Royal Bank of Canada, Polaroid, Kodak, etc.
Stage 0Idea Validation
* Asssessment Team* Economic and TechnicalFeasibility* Present Capabilities* Quantify Critical Succes Factors* Business Plan
Gate 0Go/No-Go
Stage 1Conceptual Design
* Team Selection* Customer Requirements* Technology Selection* Finalize Critical Succes Factors* Develop the Action Plan* Financial Projection
Gate 1
Stage 2Specificationand Design
Gate 2
Stage 3PrototypeTest andValidate
Gate 3
Stage 4VolumeManufacturing
FIGURE 1STAGES AND GATES
Source: Northern Telecom, Inc.
Flow of product
= Initial Assessment
= Idea Validation
= Fuzzy Front-End Activities
Stage 0
Expected Results of Front-End Activities (Stage 0)
Clear product concept (aligned with customer needs).
Clear product definition. Clear project plan (resource requirement, etc.)
Front-End Decision at Gate 0
Fund the product development project
OR
Discontinue/kill the product development project
Mortality Rate of New Products
Transparency 6.7 (Exhibit 6.3)
NPD Practices (Cont.)
2. Concurrent engineering
The practice of involving teams of functional disciplines to simultaneously plan product and process activities
Over-the-Wall vs. Team Approach to Product Development
(Exhibit 4.3)Transparency 4.6
Effect of Concurrent Work Scheduling on Completion Time
(Exhibit 4.4)Transparency 4.8
NPD Practices (cont.)
3. Platform products
The practice of planning multiple generations of products based on a core product and process design
Original concept:
Auto industry: platform = chassis
New Users: IBM, Toshiba, Sony (e.g. walkman) , etc.
NPD Practices (cont.)
4. Supplier involvement
The practice of developing on-going contact/interactions with suppliers to enhance their participation in product development efforts/decision making
NPD Practices (cont.)
5. Customer involvement
The practice of developing on-going contacts / interactions with customers to better understand their needs.
IPD Practices (cont.)
6. Information technology utilization
The practice of employing computer and communication technologies to plan and coordinate product development activities
CAD (Computer Aided Design)
2 Dimension CAD and 3 Dimension CAD Examples:
GM: EDS Unigraphics Chrysler: Dassault CATIA Ford: SDRC IDEAS
Question:
Is it possible to predict whether a new product will be a successful product in the market?
NewProd System:Tool for Predicting New Product Success
Inventor: Robert G. Cooper, Ph.D. Using historical data from hundreds of
product development successes and failures Using a regression analysis Users: Procter and Gambler, Exxon, etc.
NewProd Questionnaire
1. Product superiority/quality
2. Economic advantage to the user
3. Overall company/project fit
4. Technological compatibility
5. Familiarity to the company
6. Market growth & need
7. Competitive situation
8. Defined opportunity 9. Project definition
If you use NewProd, you will be able to predict the success of your product 68 - 85% of the
time
THANK YOU
VERY MUCH