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TECH 313 Product Design and Development

TECH 313 Product Design and Development. Day 2: Wednesday, January 7 th 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:

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TECH 313 Product Design and Development

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  1. TECH 313Product Design and Development Day 2:Wednesday, January 7th 2009 Dr. Seaman

  2. Chapter 2: Development Processes and Organizations

  3. 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?

  4. 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.

  5. A GenericDevelopment Process

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

  7. 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

  8. Six Phases of the Generic Development Process Marketing Design Manufacturing

  9. Concept Development

  10. 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.

  11. 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

  12. 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.

  13. 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!

  14. 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.

  15. 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.

  16. 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.

  17. 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

  18. 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

  19. Adapting the Generic Product Development Process

  20. 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

  21. 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

  22. 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

  23. 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

  24. 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

  25. The AMF Development Process

  26. Product Development Organizations Successful firms need to effectively organize their product development staffs. Lets look at several types of organizations.

  27. Organizations Are Formed by Establishing Links among Individuals • Reporting relationships • Financial arrangements • Physical layout

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

  29. 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.

  30. Matrix Organizations

  31. Group Work for Chapter 2

  32. Group Work for Chapter 2 • Reports from each group on the set of questions given • Lets review

  33. 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

  34. 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

  35. 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!

  36. 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.

  37. What happened to AMF Bowling Worldwide in 2001? • http://www.scripophily.net/amfcompany.html

  38. QUBICA AMF

  39. 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?

  40. 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).

  41. 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?

  42. Assignment 1 Overview Individual Assignment Refer to handout

  43. Outdoors/Sports Entertainment Garden Parenting/Baby Office Supplies Computer accessories Kitchen products Car/Truck /Motorcycle 3rd party accessories Communication Devices accessories Product Categories

  44. Staples – Office Depot – Office Max Pep Boys ? ? ? ? ? ? ? ? Where can you go to research existing products?

  45. Assignment 1 Directions • Here is what to do

  46. 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

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