DEPARTMENT OF MANUFACTURING AND

MATERIALS ENGINEERINGMME 4116

PRODUCT DESIGN AND DEVELOPMENT

BY:DR MOHD RADZI BIN HAJI CHE DAUD

CHAPTER 2

PRODUCT DEVELOPMENT PROCESS

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2.1 Introduction

What is the product development process?

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2.2 Product Development Process in Stage-Gate Format

• A generally accepted model of the product development process:

An important reason for using the stage-gate process is to “quickly get it right”.

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Phases of PDP (0 to 2)• Phase 0: The planning that should be done before the approval of the product development project.

• Phase 1: Concept development considers the different ways the

product and each subsystem can be designed.

• Phase 2: System-Level Design is where the functions of the

product are examined, leading to the division of the product into various subsystems.

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Phases of PDP (3 to 5)• Phase 3: Detail Design is the phase where the design is brought to the state of a complete engineering description of a tested and producible product.

• Phase 4: Testing and Refinement is concerned with making and testing

many preproduction versions of the product.

• Phase 5: Production Ramp-Up is when the manufacturing operations

begins to make and assembly the product using the intended production system.

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Factors for Success (2.1)

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• Four Key Factors of Success:– The quality, performance, and price of the product.– The cost to manufacture the product over its life cycle.– The cost of product development.– The time needed to bring the product to the market.

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Sales & Revenue versus Time

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Cost & Price versus Time

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Static Versus Dynamic Products• Static Product: The changes in their design take place

over long time periods through incremental changes occurring at the subsystem and component levels. – Automobiles– Appliances: refrigerators, dishwashers

• Dynamic Products: Customers are willing to, and may even demand, change. – Wireless mobile phones– Digital video recorders and players– Software

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Variations on the Generic PDP• Platform Product is built around a preexisting

technological subsystem. – Apple Macintosh operating system– Black & Decker doubly insulated universal motor

• Customized Products are those in which variations in configuration and content are created in response to a specific order of a customer.

• In a highly competitive world marketplace, mass customization appears to be one of the future trends.

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2.3 Product And Process Cycles

What are the stages of product and process cycles?

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Product Life Cycle

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Product Development Cycle

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Technology Development

Transferring Technology Development CycleSimplified Technology Development Cycle

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2.4 Organization For Design and Product Development

How can an organization affect the design and product development?

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Organization’s Effect on Design & Product Development

• The organization of a business enterprise can have a mjor influence on how effectively design and product development are carried out.

Fundamental ways for organizing a business

FUNCTION PROJECTS

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Engineering Functions

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Links Between Individuals• Reporting Relationships:

A subordinate is concerned about who his or her supervisor is, since the supervisor influences evaluations, salary increases, promotions, and work assignments. • Financial Arrangements:

Another type of link is budgetary. The source of funds to advance the project, and who controls these funds, is a vital consideration.

• Physical Arrangements: Studies have shown that communication between individuals

is enhanced if their offices are within 50 feet of each other!

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Example of a functional organization

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Simplified Project Organization

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Hybrid Organization(matrix Organization)

Functional Organization Project Organization

Hybrid Organization

• In the lightweight project organization the functional links are stronger than the project links.

• In the heavyweight matrix organization the project manager has complete budgetary authority, makes most of the resource allocation decisions, and plays a strong role in evaluating personnel.

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Lightweight & Heavy Weight Project Organizations

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2.5 Markets and Marketing

How can we describe the market and marketing for engineered products?

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Markets• Marketing is concerned with the interaction between the

corporation and the customer. • We need to differentiate between the customer and the user of

the product. • Market is an economic construct to identify those persons or

organizations that have an interest in purchasing or selling a particular product, and to create an arena for their transactions.

– Stock Market: Prototypical Market

• Strong brand names evolved as a way of building customer recognition and loyalty.

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Market Segmentation• Cooper suggests that four broad categories of variables are:

– State of Being: Sociological factors: age, gender, income For industrial products: company size, industry classification, Location: urban, suburban, rural

– State of Mind: Attitudes Values Life styles

– Product Usage: Heavy User Loyalty

– Benefit Segmentation

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Marketing Department• Function: – The marketing department in a company creates and

manages the company’s relationship with its customers. • Expected Tasks:– Preliminary marketing assessment– Quick scoping of the potential sales– Competition– Market share at the early stages of the product planning– Detailed market study– Assisting with the introduction of the product into the

marketplace– Providing product support system

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Marketing Plan• Identifying the target market

• Product strategy

• Expressing product benefits

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Marketing Plan(2)• Marketing plan should contain:

Evaluation of market segments Identification of competitive products Identification of early product adoptersClear understanding of benefits of product to customersEstimation of the market size in terms of dollars and units soldDetermination of the breadth of the product lineEstimation of product lifeDetermination of the product volume/price relationshipsComplete financial plan including time to market

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2.6 Technological Innovation

How does technological innovation happen?

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Invention, Innovation, and Diffusion

• Invention:– The creative act whereby an idea is conceived, articulated,

and recorded. • Innovation: – The process by which an invention or idea is brought into

successful practice and is utilized by the economy. • Diffusion:– The successive and widespread implementation and

adoption of successful innovations.

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Technologically Inspired Product

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Business Strategies Related to Innovation and Product Development

• Star businesses:– High sales growth potential, high market share potential

• Wildcat businesses: – High sales growth potential, low market share

• Cash-cow businesses:– Low growth potential, high market share

• Dog businesses:– Low growth potential, low market share

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Characteristics of Innovative People• Idea generator:– The creative individual

• Entrepreneur: – The person who “carries the ball” and takes the risks

• Gatekeepers:– People who provide technical communication from outsife to

inside the product development organization.• Program manager:– The person who manages without inhibiting creativity

• Sponsor:– The person who provides financial and moral support, often

senior management or a venture capital company

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Types of Technology Innovation• Need-driven innovation:– where the development team seeks to fill an

identified gap in performance or product cost (technology pull)

• Radical innovation: – which leads to widespread change and a whole new

technology, and arises from basic research (technology push)

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