Mtg' 2

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Mtg. 2
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U E Chapter 1

• (Selected Topics)

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Definitions

• Product
• Something sold by an enterprise to its customers
• Product Development
• The set of activities beginning with market
  opportunity and ending in production, sale, and
  delivery of a product

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Characteristics of Successful Product Development

• Product quality
• Customer needs? Robust, reliable?
• Product cost
• Profits? Perceived value?
• Development time
• Window of opportunity? Economic returns?
• Development cost
• Profits?
• Development capability
• Core capability or learning opportunity?

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Who Designs and Develops Products?

• Marketing
• Interface between firm and its customers
• Opportunities, market segments, customer needs
• Pricing, launch and promotion
• Design
• Engineering, industrial design
• Function and form
• Manufacturing
• Design/operate production system

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The composition of a product development team for
an electromechanical product of modest complexity.
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Product Development Organizations
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Product Development Organizations
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The Product Development Process

• Product Design and Development, 3rd ed., Ulrich
  Eppinger, McGraw Hill Irwin, 2004

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Product Development Process
After Ulrich and Eppinger, Exhibit 1- 4
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Product Development Process
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Product Development Process
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Concept Development Phase 1
After Ulrich and Eppinger, Exhibit 2-3
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Mission Statement
Development Plan
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Concept Development Phase 1
Establish Specifications
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Variants of the Generic Development Process
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Generic Process and Its Variants

• Generic (Market-Pull) Process
• Technology-Push Products
• Platform Products
• Process-Intensive Products
• Customized Products

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Generic Process and Its Variants

• Generic (Market-Pull) Process
• Technology-Push Products
• Platform Products
• Process-Intensive Products
• Customized Products

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Generic Process and Its Variants

• Generic (Market Pull) Products
• Firm begins with a market opportunity, then finds
  technology to meet customer needs
• Examples tools, sporting goods, furniture
• ..

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Generic Process and Its Variants

• Generic (Market-Pull) Process
• Technology-Push Products
• Platform Products
• Process-Intensive Products
• Customized Products

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Generic Process and Its Variants

• Technology-Push Products
• Firm begins with a new technology, then finds an
  appropriate market
• Distinction with generic
• additional activity matching technology and
  market
• concept development assumes a given technology
• Examples Gore-Tex rainwear, Tyvek envelopes ..

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Generic Process and Its Variants

• Generic (Market-Pull) Process
• Technology-Push Products
• Platform Products
• Process-Intensive Products
• Customized Products

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Generic Process and Its Variants

• Platform Products
• Firm assumes new product will be built around
  same technology as an existing product
• Distinction with generic
• concept development assumes a technology platform
• Examples consumer electronics, computers,
  printers ..

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Generic Process and Its Variants

• Generic (Market-Pull) Process
• Technology-Push Products
• Platform Products
• Process-Intensive Products
• Customized Products

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Generic Process and Its Variants

• Process-Intensive Products
• characteristics of the product are highly
  constrained by the production process
• Distinction with generic
• both process and product must be developed
  together from the beginning, or existing process
  must be specified from the beginning
• Examples chemicals, semiconductors, snack foods,
  cereal ...

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Generic Process and Its Variants

• Generic (Market-Pull) Process
• Technology-Push Products
• Platform Products
• Process-Intensive Products
• Customized Products

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Generic Process and Its Variants

• Customized (Parametric)
• New products are slight variations of existing
  configurations
• Distinction from generic
• similarity of products allows for highly
  structured development process
• development process almost like a production
  process
• Examples switches, motors, batteries, containers
  ...

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Generic Process and Its Variants

• Generic (Market-Pull) Process
• Technology-Push Products
• Platform Products
• Process-Intensive Products
• Customized (Parametric) Products

Summary of Development Process Drivers
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End