PRODUCT DESIGN and DEVELOPMENTLecturer: Tetuko KurniawanEmail: tetuko@ymail.com

Course Overview

Assignment Week due Percentage

Group presentation, quiz, on class study case

1, 6, 10 (flexible time, 3ea at most)

40%

Project: Design product 14 60%

Reference:Ulrich and Eppinger. (2012). Product Design & Development, 5th Ed. McGraw-Hill.

Title: Product Design and Development

Group Presentation & QuizAssignment in the class

Lecture and oral presentation in Bahasa,

PPT & Reports in EnglishProject: Group max. of 3 people

Kick off project:After course chap. 3 (opportunity identification)Weekly discussion/report in front of the class.

Final presentation on W13~W14, mock up/prototype presentation or poster *mock up/ prototype fund will be discussed later

My opinion on this course

● A General course: anybody from different background/discipline can learn this subject

● More applicable? Yes. It may be applied in the place you work or in your own company.

● It consists of methods for developing a new product● Study case almost in every chapter. Learn from others

experiences.● No exam, great! ● Enjoy the class and be creative! Your project might become

real product in the future!

CHAPTER 1INTRODUCTION

RECENT “BOOMING” PRODUCTS (example in Indonesia)

Think about one other products that recently being more innovative or attractive!

Vario CBS idling stopVixion,the champion in its class?

Same oil, but with personalized package

Gadget!

PRODUCT DEVELOPMENT

● The economic success of most firms (apple, Samsung, Honda, Yamaha, etc) depends on their ability to identify the needs of customers and to quickly create products that meet these needs and can be produced at low cost

● Achieving these goals is a product development problem: it involves marketing problem, design problem and manufacturing problem.

PRODUCT DEVELOPMENT

● Product development

set of activities beginning with the perception of a market opportunity and ending in the production, sale, and delivery of a product

● Objectives of this course:

study of product development methods that aimed at bringing together the marketing, design, and manufacturing functions of an enterprise.

CHARACTERISTICS OF SUCCESSFUL PRODUCT DEVELOPMENT

5 dimensions that determines successful product development

● Product quality:

How good is the product? Does it satisfy customer?Robust and reliable?

→ determines market share and price● Product cost

manufacturing cost of product?

→ determines profit and price ● Development time

How quick did the team complete the product dev. Effort?

→ determines how competitive a firm can be, response to technological dev, also how quickly a firm receives the economic returns.

● Development cost

how much did the firm have to spend to develop the product?

→ determines fraction of investments required to achieve profits● Development capability

are the team and the firm better able to develop future products?

→ experience, asset of a firm to develop products more effectively and economically in the future

WHO DESIGNS AND DEVELOPS PRODUCTS?

Three functions that are almost always central to a product development project

● Marketing

mediates between the firm and its customers

identification of product opportunities, customer needs, market segments

● Design

defined the physical form of the product to best meet costumer needs. Includes engineering design and industrial design

● Manufacturing

design, operating and coordinating production system.

Includes: purchasing, distribution, installation

Project teamA project team in electromechanical products.

-Team leader

- Core teamSmall team in order to work together effectively

-Extended teamMay consist of 10,100 or 1000 members.Individuals, partner companies, suppliers, consulting firms.

DURATION AND COST OF PRODUCT DEVELOPMENT

The cost of product development is roughly proportional to the number of people on the project team and the duration of the project

Production investment: tooling, equipment required for production.

THE CHALLENGES OF PRODUCTS DEVELOPMENT

● Trade-offs: We cannot create “perfect” products that would be costly too much. There is always trade-off

● Dynamics: everyday improvement: technology,customer demand, competitor introduce new products, macroeconomic environment shifts.

● Details: The choice between using screws or snap fit on computer enclosure can have economic implications of million dollars

● Time Pressure: It would be easy if we have given plenty of time. Product development decisions must usually be made quickly and without complete information

Developing great product is hard: the challenges are:

Developing great product is hard: the challenges are:

● Economics: Developing, producing and marketing a new product requires a large investment. To earn reasonable return, the resulting product must be both appealing to customers and relatively inexpensive to produce

● Creation: It begins with and idea and ends with the production of a physical artifact. It is creative activity

● Satisfaction of societal and individual needs: All products are aimed at satisfying nee of some kind.

● Team diversity: successful development requires many different skills and talents, dev. Teams involve people with a wide range of different training, experience, prespectives and personalities

● Team spirit: product development teams are often highly motivated, cooperative groups.

APPROACH OF THE BOOK

● Structured Methods– The book consist of methods for completing development activities

– Methods are structured: step by step approach and often provides templates for the key information systems used by the team.

– Structured methods: 1. make the decision process explicit, allowing everyone on the team to understand the decision rationale and reducing moving forward without unsupported decision

– 2. acting as checklist of the key steps in a development activities

– 3. self documenting

● Industrial Examples: Many example throughout the books. ● Organizational Realities

While we are assuming ideal organization, these problem occur in reality:– Lack of empowerment of the team: GM/ managers get too much involved in details in development product, not

knowing the need for team's decision

– Functional allegiances transcending project goals: personal success vs. overall success of the project

– Inadequate resources: unable to complete development tasks because of a lack of staff, mismatch of skills, a lack of money, equipment or toos

– Lack of cross-functional representation on the project team: not good team work

● Roadmap of the course

Thought

● How do you think about product development in in Indonesia based companies? do you agree that not so many company in Indonesia have the “development team” such as we discussed in this course?

● Other than developing new product from zero, we could in other way “copying” from existing products. What is your opinion about this?

CREATIVE PROJECT “Learning by doing”

● Decide your team name● Decide role for each member into “Marketing”, “Design”, “Manufacturing”● Prepare

– Needs of customer identification: needs, new product plan/name, how the product will provide solution to customer needs?

– Design of the Product: design, material, number of parts, development time, internal dev. Team, ext. dev. Team, development cost + sketch of design if possible.

– Manufacture: how it will manufacture? Production cost estimation

– Sales price

– Annual production volume

● Team Discussion: 20min, ● Write result and sketch on a piece of paper (A4)● Team presentation & discussion: 15min (next week)

* ps: I want you to have fun in this class! :-)* ps: I want you to have fun in this class! :-)

Example from other class in MIT

Example from other class at MIT

Example from other class at MIT

Example from other class at MIT

Example from other class at MIT

Djarum black innovation award