TECH 313Product Design and Development

Day 2:Wednesday, January 7th 2009

Dr. Seaman

Chapter 2: Development Processes and Organizations

Objectives of this Lecture:

After this lecture, students should be able to answer the following questions: What are the different functions in a product

development organization and what do they do?

What does a generic product development process look like?

Why is a process important? How can the project team structure be

mapped onto the overall product development organization of a firm?

What are the strengths and weaknesses of different organizational firms?

Case Study: AMF Bowling

AMF Bowling is the leading manufacturer of bowling equipment. The Capital Equipment Division of AMF manufactures bowling alley equipment such as pin spotters, ball returns and scoring equipment. Several years ago, the general manager of the division asked the head of engineering to develop a well-defined and generic product development organization that would enable AMF to compete effectively over the next decade.

A GenericDevelopment Process

“A product development process is the sequence of steps or activities which an enterprise employs to conceive, design, and commercialize a product.”- Karl T. Ulrich and Steven D. Eppinger

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

Six Phases of the Generic Development Process

MarketingDesign

Manufacturing

0. Planning 1. Concept Development

2. System-Level Design

3. Detail Design 4. Testing and Refinement

5. Production Ramp-Up

Marketing

Articulate the market opportunity.

Define the market segments.

Collect customer needs.

Identify lead users.Identify competitive

products.

Develop plan for product options and extended product family.

Develop marketing plan.

Develop promotion and launch materials.

Facilitate field testing.

Place early production with key customers.

Design

Consider product platform and architecture.

Assess new technologies.

Investigate feasibility of product concepts.

Develop industrial design concepts.

Build and test experimental prototypes

Generate alternative product architectures.

Define major subsystems and interfaces.

Refine industrial design.

Define part geometry.Choose materials.Assign tolerances.Complete control

documentation.

Reliability testing.Life testing.Performance testing.Obtain regulatory

approvals.Implement design

changes.

Evaluate early production output.

Manufacturing

Identify production constraints

Set supply chain strategy.

Estimate manufacturing costs.

Assess production feasibility.

Identify suppliers for key components.

Perform make vs. by analysis.

Define final assembly scheme.

Define piece-part production processes.

Design tooling.Define quality

assurance processes.

Begin procurement of long-lead tooling.

Facilitate supplier ramp-up.

Refine fabrication and assembly processes.

Train work force.Refine Quality

assurance processes.

Begin operation of entire production system.

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 newinformation 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 Assignment 1 for you will address this!

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.

I.D. 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

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

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

The AMF Development Process

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

Group Work for Chapter 2

Group Work for Chapter 2

Reports from each group on the set of questions given

Lets review

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 The 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.

What happened to AMF Bowling Worldwide in 2001?

http://www.scripophily.net/amfcompany.html

QUBICA AMF

Diagram a process for planning and cooking a family dinner. Does your process resemble the generic product development process? Is cooking dinner analogous to a market-pull, technology-push, process-intensive, or customization process?

One process might consist of the following steps:

Ask spouse, children, or roommates what they feel like eating and when they would like to eat.

Survey available ingredients. Generate three or so alternatives that are both

feasible and meet the desires of the other diners.

Select an alternative through a survey or by a subjective judgment.

Plan (usually informally and intuitively) the best sequence for preparing the food.

Cook and serve. Reflect on the results and the process (just

kidding).

Objectives of this Lecture: You should be able to answer the

following questions: What are the different functions in a product

development organization and what do they do?

What does a generic product development process look like?

Why is a process important? How can the project team structure be

mapped onto the overall product development organization of a firm?

What are the strengths and weaknesses of different organizational firms?

Assignment 1 Overview

Individual AssignmentRefer to handout

Product Categories Outdoors/Sports Entertainment Garden Parenting/Baby Office Supplies Computer

accessories Kitchen products

Car/Truck /Motorcycle 3rd party accessories

Communication Devices accessories

Where can you go to research existing products?

Staples – Office Depot – Office Max

Pep Boys ? ? ? ?

? ? ? ?

Assignment 1 Directions

Here is what to do

Reminders for Next Time Quiz #1 over Chapter 2

5 questions Individual Project proposals

Focus is on marketing opportunity and not solution concepts at this time!

Assignment 1a: 1-page proposal handouts

For 3 potential projects Assignment 1b: Proposal Presentations

60 seconds per project proposal