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Product Development Handout

Product Development Handout. Ahmad Syamil, Ph.D., CPIM, CIRM. Product Development: A process to generate concepts, designs, and plans for services and goods that an organization can provide to its customer. . An Overview of Product Development in the Auto Industry.

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Product Development Handout

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  1. Product DevelopmentHandout Ahmad Syamil, Ph.D., CPIM, CIRM

  2. Product Development: A process to generate concepts, designs, and plans for services and goods that an organization can provide to its customer.

  3. An Overview of Product Development in the Auto Industry • Number of parts in a car: 8,000 - 20,000 • Cost: Ford Escort: $5 billion (1980s) Dodge Neon: $1.3 billion (1990s) • Time-to-market: 3 - 5 years

  4. New Product Development (NPD) Practices 1. Stage-Gate (Phased-Review) Systems • Stage: Where the work is done • Gate: A set of criteria that the product must pass before moving to the next stage Gate keeper: senior management team Users: Royal Bank of Canada, Polaroid, Kodak, etc.

  5. Stage 0 = Initial Assessment = Idea Validation = Fuzzy Front-End Activities

  6. Expected Results of Front-End Activities (Stage 0) • Clear product concept (aligned with customer needs). • Clear product definition. • Clear project plan (resource requirement, etc.)

  7. Front-End Decision at Gate 0 • Fund the product development project OR • Discontinue/kill the product development project

  8. Mortality Rate of New Products Transparency 6.7 (Exhibit 6.3)

  9. NPD Practices (Cont.) 2. Concurrent engineering The practice of involving teams of functional disciplines to simultaneously plan product and process activities

  10. Over-the-Wall vs. Team Approach to Product Development Transparency 4.6 (Exhibit 4.3)

  11. Effect of Concurrent Work Scheduling on Completion Time Transparency 4.8 (Exhibit 4.4)

  12. NPD Practices (cont.) 3. Platform products The practice of planning multiple generations of products based on a core product and process design Original concept: Auto industry: platform = chassis New Users: IBM, Toshiba, Sony (e.g. walkman) , etc.

  13. NPD Practices (cont.) 4. Supplier involvement The practice of developing on-going contact/interactions with suppliers to enhance their participation in product development efforts/decision making

  14. NPD Practices (cont.) 5. Customer involvement The practice of developing on-going contacts / interactions with customers to better understand their needs.

  15. IPD Practices (cont.) 6. Information technology utilization The practice of employing computer and communication technologies to plan and coordinate product development activities

  16. CAD (Computer Aided Design) • 2 Dimension CAD and 3 Dimension CAD • Examples: • GM: EDS Unigraphics • Chrysler: Dassault CATIA • Ford: SDRC IDEAS

  17. Question: Is it possible to predict whether a new product will be a successful product in the market?

  18. NewProd System:Tool for Predicting New Product Success • Inventor: Robert G. Cooper, Ph.D. • Using historical data from hundreds of product development successes and failures • Using a regression analysis • Users: Procter and Gambler, Exxon, etc.

  19. NewProd Questionnaire • 1. Product superiority/quality • 2. Economic advantage to the user • 3. Overall company/project fit • 4. Technological compatibility • 5. Familiarity to the company • 6. Market growth & need • 7. Competitive situation • 8. Defined opportunity 9. Project definition

  20. If you use NewProd, you will be able to predict the success of your product 68 - 85% of the time

  21. THANK YOU VERY MUCH

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