Customer Needs & Product Specifications

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    Fall2005- ENGR 3200U 1

    Customer Needs & Product Specifications

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    Product Planning Process

    Planning

    Planning ConceptDevelopment

    ConceptDevelopment

    System-LevelDesign

    System-LevelDesign

    DetailDesign

    DetailDesign

    Testing andRefinement

    Testing andRefinement

    ProductionRamp-Up

    ProductionRamp-Up

    Four Phases of Design Progress

    The product planning phase precedes the Design process.

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    Xerox Lakes Project Example

    Xerox Document

    Centre 265

    Xerox Cooperation is a global Enterprise offering a wide range of

    documents related products. Its mission is being a leader in the globaldocument market. Technological innovation in a rapid changing market is

    their key element in competitive strategy. Lakes is a project in Xerox that

    resulted a product called Centre 265.

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    Product Planning Process

    Product plan identifies the portfolio of products to be developed by the

    organization and the timing of their entering to the market.

    Main output of Product Planning Process is Mission Statement

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    Four Types of Product Planning

    Process

    1996 1997 1998 1999 2000

    Hodaka

    Lakes

    H-Net

    L-Net

    Astro

    595 6010 392 393

    NewPlatforms

    Derivatives

    Improvements

    Fundamentally New

    Legend

    Project

    ProductRelease

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    Five Steps of Product Planning

    Process

    Evaluate and

    Prioritize

    Projects

    Allocate

    Resources and

    Plan TimingPortfolio

    of

    Projects

    Multiple Projects

    Complete

    Pre-Project

    PlanningProduct

    Plan

    Mission

    Statements

    Product

    Development

    Process

    Identify

    Opportunities

    To develop a product plan and a project mission statement a five steps

    process is suggested:

    1- Identify Opportunities

    2- Evaluate and prioritize projects3-Allocate resources and plan timing

    4-Complete Pre-project planning

    5- Reflect on the results and the process

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    Five Steps of Product Planning

    Process

    Step 1: Identify Opportunities

    Ideas may come from several sources:

    Market, sales personnel, R&D, Current Product development team,Manufacturing, Customer, Third parties such as suppliers, Inventor,

    Business partner

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    Five Steps of Product Planning

    Process

    Step 2: Evaluate and Prioritize Projects

    Selection between hundreds or even thousands opportunities in a year

    Competitive strategy

    Market segmentationTechnology Trajectories

    Product platform planning

    Balancing the Portfolio

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    1998 19991997 2000

    Department

    Workgroup

    Personal

    40 ppmnetwork

    $20k

    30 ppm

    $10k

    20 ppm

    $8k

    40 ppm

    $16k

    65 ppm

    $23k

    55 ppm$20k

    25 ppm

    $9k

    30 ppm

    $10k

    25 ppm

    $10k

    35 ppm

    $15k

    20 ppm

    $7k

    40 ppm

    $20k

    60 ppmnetwork$35k

    LegendXerox

    product

    competitorproduct

    potentialcompetitor

    65 ppmnetwork

    $31k

    Year ofRelease

    HodakaProject

    LakesProject Lakes

    Extensions

    HodakaProject

    LakesProject Lakes

    Extensions

    MarketSegment

    Market Segment Map

    Xerox B&W digital products and competitors in three marketsegments. Key performance dimensions are pages per minute,

    networking capacity and price

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    Technology trajectories (S-Curves)

    Light-LensTechnology

    DigitalTechnology

    Time

    Co

    pierPerf

    ormance

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    Technology RoadmapFunctional Elements

    Photo-receptor

    ScannerLayout

    TonerType

    OutputModes

    UserInterface

    CylindricalDrum

    2D CCD Arrayw/Optical Reduc.

    Keypad

    3-Pitch BeltPhotoreceptor

    Full-Width, Linear Arraywithout Optical Reduction

    Touch Screen, Remote PC

    Color: Paper, Fax, Scan,Local Network, Internet

    Document

    Centre220, 230

    Document

    Centre240, 255, 265

    DocumentCentre

    2XX

    HodakaProject

    LakesProject

    LakesExtensions

    DocumentCentre

    3XX

    NextPlatform

    Technologies

    n-Pitch BeltPhotoreceptor

    HighTemperature

    Low MeltingPoint

    Low Melting Point,Low Emission

    Touch Screen

    ImageProcessing

    Automatic Image Quality

    Diagnostics On-BoardDiagnostics

    Remote-DialupDiagnostics

    RemoteRepair

    Time

    1200 dpi600/1200 dpi 1800 dpi600 dpi

    Monochrome: Paper, Fax, Scan,Local Network, Internet

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    Product platform planning

    time

    Platform BPlatform

    Product

    Development

    Derivative

    Product

    Development

    Legend

    Project

    ProductRelease

    Research and

    Technology

    Development

    Platform A

    A Platform development project creates the structure of a

    family of products. Derivative Products may be included in the

    initial platform (A) of may follow thereafter (Platform B)

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    Balancing the Portfolio

    Product-Process Change MatrixExtent of Production Process Changes

    Exten

    tofProduct

    Changes

    NewCore

    Process

    NextGeneration

    Process

    SingleDepartment

    Upgrade

    Tuning andIncremental

    Changes

    NoProcessChange

    New

    CoreProduct

    NextGeneration

    Product

    Additionto Product

    Family

    MinorProductEnhancement

    NoProduct

    Change

    LakesProject

    Research andTechnology

    Development

    Breakthrough

    DevelopmentProjects

    PlatformDevelopment

    Projects

    DerivativeProduct

    Development

    CurrentProduct/Process

    Support

    Five Steps of Product Planning

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    Five Steps of Product Planning

    Process

    Step 3: Allocate Resources and Plan Timing

    Project timing

    Product Plan

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    Aggregate Resource Planning

    0%

    20%

    40%

    60%

    80%

    1 0 0 %

    120%

    140%

    Year 1 Year 2 Year 3

    Capac it y Ut ilizat io n

    MechanicalDesign

    ElectricalEngineering

    ManufacturingEng

    ineering

    Software/Firmwar

    e

    IndustrialDesign

    MechanicalDesign

    ElectricalEngineering

    ManufacturingEng

    ineering

    Software/Firmwar

    e

    IndustrialDesign

    MechanicalDesign

    ElectricalEngineering

    ManufacturingEng

    ineering

    Software/Firmwar

    e

    IndustrialDesign

    Five Steps of Product Planning

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    Five Steps of Product Planning

    Process

    Step 4: Complete Pre-Project planning

    Project is approved but before substantial resources are applied

    A small cross- functional team

    The Lakes core team: 30 people with wide range of technologicalexpertise, marketing, Manufacturing and service functions

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    Mission Statement

    L k P j t Mi i St t t

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    Lakes Project Mission StatementProduct Descript ion

    Networkable, digital machine with copy, print, fax, and scan functions

    Key Business Goals

    Support Xerox strategy of leadership in digital office equipment

    Serve as platform for all future B&W digital products and solutions

    Capture 50% of digital product sales in primary market

    Environmentally friendly

    First product introduction 4thQ 1997

    Primary Market

    Office departments, mid-volume (40-65 ppm, above 42,000 avg. copies/mo.)

    Secondary Markets

    Quick-print market

    Small satellite operations

    Assumptions and Constraints

    New product platform

    Digital imaging technology

    Compatible with CentreWare software

    Input devices manufactured in Canada

    Output devices manufactured in Brazil

    Image processing engine manufactured in both USA and Europe

    Stakeholders

    Purchasers and Users

    Manufacturing Operations

    Service Operations

    Distributors and Resellers

    Five Steps of Product Planning

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    Five Steps of Product Planning

    Process

    Step 5: Reflect on the Results and Process

    Asses the quality of both the process and the results

    Concept Development; Front-End

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    Concept Development; Front End

    Process

    Interrelated activities ordered roughly in the front-end process

    Identify customer needs

    Case Study: Design of Screwdriver

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    Case Study: Design of Screwdriver

    Existing productused to drive the

    screw:

    -Manual

    screwdrivers

    -Cordless

    screwdrivers

    -Screw gun-Cordless drill with

    driver bit

    A successful hand tool Manufacturer was exploring the growing

    market for hand-held power tool. Identification of the customer needs

    an adequate process.

    Mission Statement: Screwdriver Project

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    Mission Statement: Screwdriver Project

    Mission statement identifies a direction to go, but generally dont

    specify a precise destination or the particular way to proceed

    Five Steps of Identifying

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    p y g

    customer needs

    To Identifying customer needs a five steps process is suggested:1- Gather raw data from customer

    2- Interpret the raw data in terms of customer needs

    3-Organize the needs into a hierarchy of primary, secondary and (ifrequired) tertiary needs.

    4- Establish a relative importance of the needs

    5- Reflect on the results and the process

    Five Steps of Identifying

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    p y g

    customer needs

    1- Gather raw data from customer

    One to one interview (One hour)Focus groups (8 to 10 customers- $2500 each focus group)

    Observing the product in use

    Five Steps of Identifying

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    p y g

    customer needs

    1- Gather raw data from customer

    Visual Information Example: Book Bag Design

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    Visual Information Example: Book Bag Design

    Five Steps of Identifying

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    customer needs

    1- Gather raw data from customerNumber of Interviews

    Case studies:-90% of customer needs for picnic coolers were revealed after 30

    interviews-98% of customer needs for a piece of office equipment were revealed

    after 25 hours data collection in both focus groups and interviews

    General rule: Between 10 to 50 interviews

    Five Steps of Identifying

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    customer needs

    1- Gather raw data from customerChoosing Customers

    Five Steps of Identifying

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    customer needs

    1- Gather raw data from customer

    The Art of Eliciting customer Needs Data

    Documenting Interactions with Customer (Template for the raw data)

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    Five Steps of Identifying

    t d

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    customer needs

    2- Interpret the raw data in terms of customer needs

    Five Steps of Identifying

    t d

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    customer needs

    3-Organize the needs into a hierarchy of primary, secondary and (if

    required) tertiary needs.

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    Five Steps of Identifying

    customer needs

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    customer needs

    4- Establish a relative importance of the needs

    Five Steps of Identifying

    customer needs

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    Step 5: Reflect on the Results and Process

    Asses the quality of both the process and the results

    customer needs

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    Concept Development; Front-End

    Process

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    Process

    Interrelated activities ordered roughly in the front-end process

    Product Specification

    Case Study: Design of ScrewdriverSpecialized Bicycle components was interested in developing a new

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    Existing Suspension:

    It is successful in the high-

    performance segment of the market

    racing cyclist with less concern for

    cost or long term durability. The firmwished to broaden the sales of the

    suspension forks and therefore was

    interested in developing a productthat would provide high value for the

    recreation cyclists

    Specialized Bicycle components was interested in developing a new

    suspension fork for the mountain bike market.

    Case Study: Customer Needs for the

    Suspension

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    Suspension

    Fork

    What are Specifications

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    Language of Customer should be translated

    A specification consists of a metric and a value.

    For example:

    Customer Language

    Easy to Install

    Specification

    Average time to Assemble the Fork to the Frame is Less than 75

    Seconds

    When are specifications established?

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    Interrelated activities ordered roughly in the front-end process

    Product Specification

    Establishing the Target Specification is a preliminary specificationLater these specifications will be refined based on the limitations of the

    product concept actually selected: Set Final Specification

    Four Steps of the process of Establishing

    the Target Specifications

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    the Target Specifications

    A four steps process is suggested:1- Prepare the list of metrics

    2- Collect competitive benchmarking

    3-Set idea and marginally acceptable target values4- Reflect on the results and the process

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    Four Steps of the process of Establishing

    the Target Specifications

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    g p

    1- Prepare the list of metrics

    The metrics should include the popular criteria.

    Many customers buy products based on independently

    published evaluations.Popular Science, Consumer Reports

    In case of bicycle: Bicycling and mountain bike magazine

    Monster test machine is used by this magazine which measure

    of the vertical acceleration of the handlebars as a bicycle

    equipped with the fork runs over a block 50 millimeter tall

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    Four Steps of the process of Establishingthe Target Specifications

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    2- Collect

    competitivebenchmarking

    (A room of houseof quality)

    Based on the

    Metrics

    Four Steps of the process of Establishingthe Target Specifications

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    2- Collect

    competitivebenchmarking

    (A room of houseof quality)

    Based on the

    Satisfaction of

    Needs

    Four Steps of the process of Establishingthe Target Specifications

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    3-Set idea and marginally acceptable target values

    At least X: the value of the brake mounting stiffness is specified to be at least 325kilonewtons/meter)

    At most X: the value of the mass of suspension forl is set to be at most 1.4 kilograms)

    Between X and Y: spring preload between 480 and 800 Newtons

    Exactly X: ideal value for the rake offset metric is set to 38 millimeters

    A Set of Discrete Values: headset diameters 1.00, 1.125 or 1.250 inches

    Four Steps of the process of Establishingthe Target Specifications

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    Step 4: Reflect on the Results and Process

    Asses the quality of both the process and the results

    Five Steps of the process of Setting theFinal Specifications

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    As the team finalize the choice of a concept and prepares for subsequentdesign and development, the specifications are revised.

    A five steps process is suggested:

    1- Develop Technical models of the product2- Develop a cost model of the product

    3- Refine the specifications, marking trade-offs where necessary

    4-Flow down the specifications as appropriate

    5- Reflect on the results and the process

    Five Steps of the process of Setting theFinal Specifications

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    1- Develop Technical models of the productA technical model is a tool for predicting the values of the metrics for a

    particular set of design decisions.

    Example: Oil-damped coil spring concept suspension fork

    Five Steps of the process of Setting theFinal Specifications

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    1- Develop Technical models of the product

    Five Steps of the process of Setting theFinal Specifications

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    2- Develop a cost model of the product

    The goal of this step is to make sure that the product can be

    produced at the target cost

    A simple method is a bill of material with cost estimates

    Five Steps of the process of Setting theFinal Specifications

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    2-

    Deve

    lop

    acos

    tmo

    de

    lo

    fthe

    pro

    duc

    t

    Five Steps of the process of Setting theFinal Specifications

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    3- Refine the specifications, marking trade-offs where necessary

    Competitive map is the tool for this step. It is also called a trade-off map.

    It is simply a scatter plot of competitive products along two dimensions

    selected from the set of metrics

    Five Steps of the process of Setting theFinal Specifications

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    3- Refine the specifications, marking trade-offs where necessary

    Competitive map is the tool for this step. It is also called a trade-off map.

    It is simply a scatter plot of competitive products along two dimensions

    selected from the set of metrics

    Regions by the marginal and ideal values are shown in the map.

    Armed with technical performance model and a cost model the team can

    asses it will be able to beat the trade off exhibited in the map

    3 R fi th ifi ti ki t d ff h

    Five Steps of the process of Setting theFinal Specifications

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    3- Refine the specifications, marking trade-offs where necessary

    High performance suspensions (low monster score) have high manufacturing cost

    3 Refine the specifications

    Five Steps of the process of Setting theFinal Specifications

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    3- Refine the specifications,

    marking trade-offs wherenecessaryThe final specifications of the

    suspension fork

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    Five Steps of the process of Setting theFinal Specifications

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    Step 5: Reflect on the Results and Process

    Asses the quality of both the process and the results