Product Design

Sung Joo Bae

Assistant Professor

Operations and Technology Management

School of BusinessYonsei University

Fuzzy Front End of Innovation

ConceptDevelopment

System-level

Design

Detail

Design

Testing &

Refinement

Production

Ramp-up

How do we develop new ideas for products?

IDEO

• World’s largest and most successful design firm

• Worked with many Korean firms as well (Samsung, LG, etc.)

• Well known for their system of innovation

Case Study: IDEO Product Development

How would you characterize the following elements at IDEO?

Process Management Organization Culture

VIDEO: Deep Dive

Process at IDEO

• Prototyping

– 3R: Rough, Rapid, & Right

• Intense brainstorming

– Stay focused on the topic

– Encourage wild ideas

– Defer judgment to avoid interrupting the flow of ideas

– Build on ideas of others

– Only one conversation at a time (esp. for introverts)

– Be vidual

Process at IDEO

• Structure/Methodology– Phase 0: Understand & Observe

Understand client’s business and find the needs

– Phase 1: Visualize & Realize

Build models with overall product concept

– Phase 2: Evaluate & Refining

Enhance the prototype

Focus shifting from human factors to engineering issues

Shift from functional model to real model

– Phase 3: Detailed Engineering

Fully functional model

– Phase 4: Manufacturing Liaison

Organization at IDEO

• Small units (team-oriented)

• Flat hierarchy

• Peer pressure

• Low turnover

• Diversity in teams

Management at IDEO

• Low key

– Create the stage upon which designers can play the leading role

• Lead by example

• Connecting role with customers

• Knowledge management (Tech Box)

Culture at IDEO

• Failure & trust

• Child-like playfulness

• Attracts creative people

• Sharing & respect

– Comfortable with confusion, incomplete information, and paradox/ambiguity

• Simple rules

– Fail often to succeed sooner

– Stay focused

– Enlightened trail and error

Creative Design? Choices from 2010

Creative Design? Choices from 2010?

Creative Design? Choices from 2009

Creative Design? Choices from 2011 Fall (MBA)

What aspect of product is valued in your selection?

• Which product (svc/biz model etc. ) did you choose?

• Could you describe why you chose that specific product?

• Aesthetic appeal: color, shape

• Ease of use

• Functionality

• Uniqueness

• Environmentally friendly

• Longevity

• Symbolic status

• …………….

Recent Changes in Korea

• Development Focus

Engineering oriented Design Oriented Integrated Thinking

• Product Focus

Function Aesthetics (Form) Concepts (e.g. eco-)

• Product Strategy

Single product Product groups Platform (ecosystem)

Design

Function

Form

UserUse Environment

Freshman Zack Anderson can check

the weather at the monitor by the sink

in his fully automated dorm room.

Credits - Photo / Donna Coveney

Multifunction In-Dorm

Automation System"

(MIDAS)

Freshman R.J. Ryan hits the

'emergency' button in his

automatic dorm room on

East Campus. The button

activates 'party mode.‘

(relax mode, sleep mode

also possible)

VIDEO: MIDAS at workhttp://www.youtube.com/watch?v=wsPQWz9CWuA

&feature=player_embedded

a. Assimilation of scientific results into technology

b. Recognized need for a device, technique, or scientific understanding

c. Technology adoption for use

d. Technological need for understanding of physical phenomena and

responses

The Relationship between Science & Technology

Attributes of Five Development Projects

Stanley Tools Jobmaster Screwdriver

Rollerblade In-line Skate

HP Deskjet Printer

Volkswagen New Beetle Automobile

Boeing 777 Airplane

Annual production volume (units/year)

100,000 100,000 4 million 100,000 50

Sales lifetime (years) 40 3 2 6 30

Price (US$/unit) 3 200 300 17,000 130M

Part numbers (parts) 3 35 200 10,000 130,000

Development time (years)

1 2 1.5 3.5 4.5

Internal development team (peak size)

3 5 100 800 6,800

External development team (peak size)

3 10 75 800 10,000

Development cost (US$)

150,000 750,000 50M 400M 3B

Production investment

150,000 1M 25M 500M 3B

(Source: Ulrich & Eppinger)

New Product Success Factors

• Developing a superior, differentiated product with unique benefits and superior value to the customers

• Having a strong market orientation throughout the development process

• Getting sharp, early product definition before development begins

• Quality execution (completeness, consistency, and proficiency) of activities in the development process

• Having the correct organizational structure (multifunctional, empowered teams)

• Providing the sharp project selection decisions

• Top management: specifying new product strategy and providing needed resources

• Speed to market

(Cooper, 1996)

New Product Development Process

Design Activities:

• 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 industrial control documentation

• Reliability testing

•Life testing

•Performance testing

• Obtain regulatory approvals

• Implement design changes

• Evaluate early production output

PlanningConcept

Development

System-level

Design

Detail

Design

Testing &

Refinement

Production

Ramp-up

New Product Development Process

PlanningConcept

Development

System-level

Design

Detail

Design

Testing &

Refinement

Production

Ramp-up

Marketing Activities:

• Articulate market opportunity

• Define market segments

• Collect customer needs

• Identify lead users

• Identify competitive products

• Develop plan for product options and extended product family

• Set target sales price points

• Develop marketing plan

• Develop promotion and launch materials

• Facilitate field testing

• Place early production with key customers

(Source: Ulrich & Eppinger)

New Product Development Process

PlanningConcept

Development

System-level

Design

Detail

Design

Testing &

Refinement

Production

Ramp-up

Manufacturing Activities:

• Identify production constraints

• Estimate manufacturing cost

• Assess production feasibility

• Perform make-buy analysis

• Define final assembly scheme

• Set target costs

• Define piece-part production processes

• Design tooling

• Define quality assurance processes

•Facilitate supplier ramp-up

• Train workforce

• Refine assembly processes

• Begin operation of production system

(Source: Ulrich & Eppinger)

New Product Development Process

PlanningConcept

Development

System-level

Design

Detail

Design

Testing &

Refinement

Production

Ramp-up

Product planning is an activity that considers the portfolio of projects that an organization might pursue and determines what subset of these projects will be pursued over what time period

Which product development projects will be undertaken? How do the various projects relate to each other as a portfolio Timing and sequence of the projects?

(Source: Ulrich & Eppinger)

New Product Development Process

PlanningConcept

Development

System-level

Design

Detail

Design

Testing &

Refinement

Production

Ramp-up

1. Define the scope2. Gather raw data from customers (interviews, focus groups, observation)3. Interpret the raw data in terms of customer needs4. Organize the needs into a hierarchy of primary, secondary, and tertiary needs5. Establish the relative importance of the needs6. Reflect on the results and the process

(Source: Ulrich & Eppinger)

Identify

Customer

Needs

Establish

Target

Specification

Generate

Product

Concepts

Select

Product

Concepts

Test

Product

Concepts

Set

Final

Specification

Plan

Downstream

Development

Benchmark Competitive Products

Perform Economic Analysis

Build and Test Models and Prototypes

Defining the scope (Mission Statement)

(Source: Ulrich & Eppinger)

Mission Statement: Screwdriver Project

Product Description • A hand-held, power assisted device for installing threaded fasteners

Key Business Goals • Product introduced in fourth quarter of 2006

• 50% gross margin

• 10% share of cordless screwdriver market by 2008

Primary Markets • Do-it-yourself consumer

Secondary Markets • Casual consumer

• Light-duty professional

Assumptions • Hand-held

• Power-assisted

• Rechargeable battery

Stakeholders • User, retailer, sales force, service center, production, legal department

Raw Data from the Customers

(Source: MIT’s Product Design and Development Course Material)

Number of Analysts

(Source: MIT’s Product Design and Development Course Material)

Customer Data into Interpreted Needs

(Source: Ulrich & Eppinger)

Some Guidelines for Need Interpretation

(Source: Ulrich & Eppinger)

Exercises: Need Translation

(Source: MIT’s Product Design and Development Course Material)

Exercises: Need Translation

(Source: MIT’s Product Design and Development Course Material)

Hierarchical List of Needs

(Source: Ulrich & Eppinger)

New Product Development Process

PlanningConcept

Development

System-level

Design

Detail

Design

Testing &

Refinement

Production

Ramp-up

Identify

Customer

Needs

Establish

Target

Specification

Generate

Product

Concepts

Select

Product

Concepts

Test

Product

Concepts

Set

Final

Specification

Plan

Downstream

Development

What are specifications?- Customer needs are expressed in the “language of the customers.”- Specifications are the language of the manufacturer/service provider- “Measurable detail of what the product has to do”- Product requirements

(Source: Ulrich & Eppinger)

Target Specification

(Source: Ulrich & Eppinger)

For your class projects, measurable metric may not exist. In this case, just describe the specification of the final product/service/business model in terms of feature requirements

New Product Development Process

PlanningConcept

Development

System-level

Design

Detail

Design

Testing &

Refinement

Production

Ramp-up

Identify

Customer

Needs

Establish

Target

Specification

Generate

Product

Concepts

Select

Product

Concepts

Test

Product

Concepts

Set

Final

Specification

Plan

Downstream

Development

What are specifications?- Customer needs are expressed in the “language of the customers.”- Specifications are the language of the manufacturer/service provider- “Measurable detail of what the product has to do”- Product requirements

(Source: Ulrich & Eppinger)

Five-step Concept Generation Method

(Source: Ulrich & Eppinger)

Example of Problem Decomposition

(Source: Ulrich & Eppinger)

Five-step Concept Generation Method

(Source: Ulrich & Eppinger)

Solutions to Sub-Problems

(Source: Ulrich & Eppinger)

Concept Classification Tree

(Source: Ulrich & Eppinger)

• Division of the entire space of solutions into several distinct classes

• Identification of independent approaches to the problem

• Pruning of less promising branches

• Refinement of the problem decomposition for a particular branch

Concept Combination Table

(Source: Ulrich & Eppinger)

Concept Combination Table:A way to consider combinations of solution fragments systematically

< Concept combination table for the hand-held nailer & one possible combination >

Selection of Product Concepts

• The goal of concept selection is NOT to select the best concept

• The goal of the concept selection is to DEVELOP the best concept

• Combine and refine the concepts to develop better ones

• Selection Methods– External decision– Intuition– Multivoting

– Pros and cons– Prototype and test– Decision matrices

(Source: Ulrich & Eppinger)

Concept Generation, Selection, & Testing

(Source: Ulrich & Eppinger)

Concept Screening & Scoring

(Source: Ulrich & Eppinger)

Concept Screening

+ Better than

0 Same as - Worse than

Concept Scoring

Key Points

• Capture “what” not “how”

• Try to meet customers in user environment

• Collect visual, verbal, or textual data

• Props will stimulate customer responses

• Interviews are more efficient than focus groups

• Interview stakeholders and lead users, not just average users if possible

• Look for latent needs

(Source: Ulrich & Eppinger)