MSE-415: Product Design

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MSE-415 Product Design
Chapter 3 Product Planning
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Website

• http//www.csun.edu/msem/
• or
• http//www.csun.edu/rsh12598/
• Course Description Syllabus
• Lecture notes and slides
• Additional readings

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Lecture Objectives

• Syllabus Review
• Complete student bio-handouts
• Discuss types of product development projects
• New product platforms
• Derivatives of existing product platforms
• Incremental improvements to existing products
• Fundamentally new products
• Discuss the Product Planning process
• Identify opportunities
• Evaluate and prioritize projects
• Allocate resources and plan timing
• Complete pre-project planning
• Reflect on the results of the process

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Project Planning

• The Project Planning process takes place before
• a product development project is formally
  approved.
• substantial resources are applied.
• the larger development team is formed.
• Product planning ensures that product development
  projects support the broader business strategy of
  the company and addresses
• What product development projects will be
  undertaken?
• What mix of fundamentally new products,
  platforms, and derivative products should be
  pursued?
• How do the various projects relate to each other
  as a portfolio?
• What will be the timing and sequence of the
  projects?

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Project Planning

• Each of the selected projects is then completed
  by a product development team. In order for the
  team to complete the project they need to know
  the following
• What market segments should be considered in
  designing the product and developing its
  features?
• What new technologies (if any) should be
  incorporated into the new product?
• What are the manufacturing and service goal
  constraints?
• What are the financial targets for the project?
• What are the budget and time frame for the
  project?

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Project Planning

• So what is a project plan?
• A project plan identifies the portfolio of
  products to be developed and the timing of their
  introduction to market.
• Opportunities are identified from many sources
  including
• Marketing
• Research
• Customers
• Current product development teams
• Benchmarking of competitors
• A project plan breaks projects into four types
• New product platforms
• Derivatives of existing product platforms
• Incremental improvements to existing products
• Fundamentally new products

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Project Planning

• New product platforms
• Major development effort
• Something totally new
• Digital copier platform (instead of light-lens)
• Derivatives of existing product platforms
• Extension of an existing product platform to
  better address familiar markets with one or more
  new products.
• A new light-lens copier.
• Incremental improvements to existing products
• Addition or modification of features on existing
  products in order to keep product line
  competitive.
• A slight change to remedy minor flaws.
• Fundamentally new products
• Radically different products or production
  technologies.

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Discussion

• What is the difference between New Platforms and
  Fundamentally New Products?

Provide Examples
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A Typical Project Plan
Project
Product Release
Value-lock Lock Manufacturer
Key-type lock
New Platforms
Waterproof
Derivatives
Lubricated
CRES
Improvements
Bio-scan Type
Fundamentally New
2006 2007 2008 2009 2010 2011
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Create a Project Plan
Project
Product Release
New Platforms
Break into groups and create a project plan for a
product of your choice.
Derivatives
Improvements
Fundamentally New
2006 2007 2008 2009 2010 2011
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Project Planning

• What happens if the organization does not
  carefully create the project plan?

• Inadequate coverage of target markets with
  competitive products.
• Poor timing of market introductions of products.
• Mismatches between aggregate development capacity
  and the number of projects pursued.
• Poor distribution of resources, with some
  projects overstaffed and others understaffed.
• Initiation and subsequent cancellation of
  ill-conceived products.
• Frequent changes in the direction of products.

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Project Planning The Process

• The Project Planning Process
• Identify opportunities
• Evaluate and prioritize projects
• Allocate resources and plan timing
• Complete pre-project planning
• Reflect on the results and the process

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Project Planning

• Step 1 Identify Opportunities
• Ideas for new products and/or features can come
  from
• Marketing and sales personnel
• Research and technology development organizations
• Current product development teams
• Manufacturing and operations organizations
• Current/potential customers
• Third parties such as suppliers, inventors,
  business partners

Opportunities can be collected passively or
actively.
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Project Planning

• What are some active approaches to identify
  opportunities?
• Document complaints about current products.
• Interview lead users with attention devoted to
  innovations.
• Consider new trends in lifestyles, demographics,
  and technology.
• Systematically gather suggestions from current
  customers.
• Carefully study competitors products.
  (Benchmarking)
• Track the status of emerging technologies

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Project Planning

• Step 2 Evaluate and Prioritize Projects
• Competitive Strategy
• Market Segmentation
• Technological Trajectories
• Product Platforms

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Project Planning

• Competitive Strategy
• An organizations competitive strategy defines a
  basic approach to markets and products with
  respect to competitors.

Technology Leadership Emphasis on basic R/D of
new technologies and the deployment of these
technologies.
Cost Leadership Compete on production efficiency,
either through economies of scale, superior
manufacturing methods, low-cost labor, or better
management.
Customer Focus Close work with new and existing
customers to assess their changing needs and
preferences.
Imitative Allow competitors to explore the
market. Once a viable market is identified, firm
quickly develops and launches product into that
market.
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Project Planning

• Market Segmentation
• Divide the market into segments.
• Evaluate which market segments current products
  cover.
• Address which new products can best cover weakly
  covered market segments.

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Project Planning

• Technological Trajectories
• Used to evaluate when to make a transition from
  one technology to the next.

Maturity
Bio-scan
Product Performance
Rotary
Today
Time
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Project Planning
Product Platform Planning
Bio-scan
Voice-Recognition
What could some product derivatives be?
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Project Planning

• Evaluating Fundamentally New Product Opportunities

• Market Size (units/year x average price)
• Market Growth Rate (/year)
• Competitive Intensity ( of competitors and their
  strength)
• Depth of the firms existing knowledge of market.
• Depth of the firms existing knowledge of
  technology.
• Fit with the firms other products.
• Fit with the firms other capabilities.
• Potential for patents, trade secrets, or other
  barriers for competition.
• Existence of a product champion within the firm.

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Project Planning
Product Process Change Matrix
Extent of Production Process Changes
Research and
New
Next
Single
Tuning and
No
Core
Generation
Department
Incremental
Process
Technology
Process
Process
Upgrade
Changes
Change
Development
Breakthrough
New
Development
Core
Product
Projects
Platform
Next
Development
Generation
Projects
Product
Bio-scan
Addition
Extent of Product Changes
to Product
Family
Derivative
Product
Development
Minor
Product
Enhancement
Current
No
Product/Process
Product
Support
Change
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Project Planning

• Step 3 Allocate Resources and Plan Timing
• It is likely that a firm cannot afford to invest
  in every product development opportunity in its
  desired balanced portfolio of projects.
• Allocate Resources
• Project Timing

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Project Planning

• Allocate Resources

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Project Planning

• Project Timing

• Determining the timing and sequence of projects
  must consider
• a number of factors
• Timing of product introductions
• Technology readiness
• Market readiness
• Competition

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Project Planning

• Step 4 Complete Pre-Project Planning
• Core Team
• Small, cross-functional team
• Creates the Mission Statement

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Project Planning

• Effective Mission Statement
• Brief description of product.
• Key business goals.
• Target Market
• Assumptions and constraints that guide the
  development effort.
• Stakeholders

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Valu-Lock Mission Statement
Fill in information for mission statement.

• Product Description
• Key Business Goals
• Primary Market
• Secondary Markets
• Assumptions and Constraints
• Stakeholders

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Project Planning

• Step 5 Reflect on the Results and the Process
• What are some questions that should be asked at
  this step to assess the quality of both the
  process and the results?

See page 49
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Next WeekSeptember 12, 2007

• Homework
• Thought Question 1 on Page 52 of Product Design
  and development
• Identify two (2) potential design and development
  ideas for use as a group project.
• A brief, descriptive project title (2-4 words).
  This is critical!
• The two (2) nearest competitors (existing
  solutions) and price.
• A description of the product opportunity you have
  identified. Your description may include any of
  the following Documentation of the market need,
  shortcomings of existing competitive products,
  and definition of the target market and its size.
• Ideas can make a job faster, safer, less labor
  intensive, less expensive, improve on an existing
  design, solve a problem, simplify a task, etc.
  But ultimately the product MUST be profitable.
• Examples
• Can opener for someone with arthritis
• Flashlight for firemen
• Method for securing luggage when traveling
• Tool to determine when a fruit/vegetable is
  optimal ripeness
• Cell phone operated without fingers (used in cold
  weather)
• Read Chapter 16 Gantt, PERT charts, managing
  projects, etc