Chapter 2: Development Processes and Organizations

Lecturer: Dr. Juhaini Jabarjuhaini@utem.edu.my

Product Design and DevelopmentFourth Edition

by Karl T. Ulrich and Steven D. Eppinger

Awards offered for BPTT 3153

1. Best individual assignment2. Best group assignment3. Best group presentation (slides, languange

coordination, Q&A, time management)4. The most proactive individual5. The most proactive group

• Groups will be assessed during class. • 30 minutes will be given in each class for group

discussion.

Tyco International

• http://www.te.com/default.aspx• Leading manufacturer of sensors and controls

– Wireless security alarm system control panel

Questions to address new product development issues

1. What are the key product development activities that must be included in every project?

2. What project milestones and review gates can be used to manage the overall development process by phases?

3. Is there a standard development process that will work for every operating division?

4. What role do experts from different functional areas play in the development process?

5. Should the development organisation be divided into groups corresponding to projects or to technical and business functions?

Well-defined development process• Quality assurance

– Assuring quality of the end product – E.g. ISO standards

• Coordination– Roles of members defined

• Planning– Milestones for project

• Management– Benchmarking planning vs. performance by managers

• Improvement– Review of progress and performance

The product development process0. Planning1. Concept development

– Concept of the product vs. target market2. System-level design

– Preliminary design of key components3. Detail design

– Control documentation – drawings describing geometry of each component

4. Testing and refinement– Prototypes –construction and evaluation of multiple preproduction

versions of the product– Alpha and beta prototypes

5. Production ramp-up– Produced for preferred customers to identify remaining flaws

The generic product development process (p. 14)

Planning Concept development

System-leveldesign

Detaildesign

Testing and refinement

ProductionRamp-up

Concept development: The front-end process

Identifying customer needsEstablishing target specificationsConcept generationConcept selectionConcept testingSetting final specificationsProject planningEconomic analysisBenchmarking of competitive productsModelling and prototyping

Front-end activities comprising the concept development phase (p. 16)

Adapting the generic product development process

• Generic (market-pull) products– Sporting goods, furniture, tools…

• Technology push products– Gore-Tex rainwear, iBOT– http://www.youtube.com/watch?v=gMCc-9PMVY8&feature=related

• Platform products– Consumer electronics, computers, printers…

• Process-intensive products– Snack foods, breakfast cereals, chemicals,

semiconductors…

• Customized products– Motors, switchers, batteries, containers

• High-risk products– Pharmaceuticals

• Quick-build products– Software, cellular phones

• Complex system– Airplanes, jet engines, automobiles

Product development process flows

• Product development process generally follows a structured flow of activity and information flow

Product development process flows (p. 22)

Product development organisations

• Organisations are formed by establishing links among individuals– Reporting relationships – supervisor & subordinate

(formal)– Financial arrangements – linked by same financial

entity– Physical layout – share the same building/space

(informal)

• Organisational links may be aligned with functions, projects, or both

Choosing an organisational structure

• How important is cross-functional integration?• How critical is cutting-edge functional

expertise to business success?• Can individuals from each function be fully

utilised for most of the duration of a project?• How important is a product development

speed?

Distributed product development teams

• Access to information about regional markets• Availability of technical expertise• Location of manufacturing facilities and suppliers• Cost saving through lower wages• Outsourcing to increase product development

capacity• View p. 29 – Characteristics of different

organisational structures