TECH 313 Product Design and Development

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TECH 313Product Design and Development

• Day 2Wednesday, January 7th 2009
• Dr. Seaman

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Chapter 2 Development Processes and Organizations
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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?

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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.

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A GenericDevelopment Process
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• 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

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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

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Six Phases of the Generic Development Process

• Marketing
• Design
• Manufacturing

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Concept Development
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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.
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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

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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.

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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!

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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.

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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.

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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.

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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

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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

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Adapting the Generic Product Development Process
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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

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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

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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

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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

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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

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The AMF Development Process
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Product Development Organizations

• Successful firms need to effectively organize
  their product development staffs. Lets look at
  several types of organizations.

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Organizations Are Formed by Establishing Links
among Individuals

• Reporting relationships
• Financial arrangements
• Physical layout

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Organizational Links May Be Aligned with
Functions, Projects, or Both
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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.

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Matrix Organizations
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Group Work for Chapter 2
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Group Work for Chapter 2

• Reports from each group on the set of questions
  given
• Lets review

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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

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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

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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!

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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.

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What happened to AMF Bowling Worldwide in 2001?

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

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QUBICA AMF
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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?
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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).

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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?

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Assignment 1 Overview

• Individual Assignment
• Refer to handout

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Product Categories

• Outdoors/Sports
• Entertainment
• Garden
• Parenting/Baby
• Office Supplies
• Computer accessories
• Kitchen products

• Car/Truck /Motorcycle 3rd party accessories
• Communication Devices accessories

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Where can you go to research existing products?

• Staples Office Depot Office Max
• Pep Boys
• ?
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Assignment 1 Directions

• Here is what to do

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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