AN ABSTRACT OF THE THESIS OF Stephen C. Schlegel Jr. for the degree of Master of Science in Mechanical Engineering presented on May 26, 2000. Title: A Product Development Process Measurement Methodology Applied to Small Manufacturing Companies. Redacted for Privacy Abstract Approved: David G. Ullman The implementation of concurrent engineering into many large companies has greatly improved their product development processes. These companies have seen significant gains in quality and customer satisfaction with reduced product costs, defects, and time-to-market (Lake, 1992). Many large companies have successfully employed this relatively new product development philosophy. However, smaller companies have not yet integrated this philosophy into their product development systems with the success that larger companies have seen. With small companies composing 98% of the manufacturing firms in this country (U.S. Census Bureau, 1995), there has been a recent push for the development of implementation methods for small companies. This paper presents a five step approach that small manufacturing companies can use to implement a concurrent engineering based product development process. Our definition of a small manufacturing company is an organization with 50 or fewer employees and net annual sales of 10 million dollars or less. The first step provides a general outline for companies to use in documenting their current product development process. The second step involves comparing the company's current product development process to a concurrent engineering based product development process model that is general enough for nearly all manufacturing firms. This step also includes the use of the theory of constraints and a so-called revised theory of constraints method to further refine the process understanding and description. Third, a new methodology for designing and applying process measurements is used to provide insight into the relationships that exists between the internal and external resources, requirements and deliverables of the product development process. It is during this step that the Process Measurement Matrix (PMM) is developed. Fourth, the PMM is used in conjunction with the analytical hierarchy process or a simple ranking technique to develop relative priorities. Finally, the appropriate measurements are constructed for each subprocess in the product development process. ©Copyright by Stephen C. Schlegel Jr. May 26, 2000 All Rights Reserved A Product Development Process Measurement Methodology Applied to Small Manufacturing Companies by Stephen C. Schlegel Jr. A THESIS submitted to Oregon State University in partial fulfillment of the requirements for the degree of Master of Science Presented May 26, 2000 Commencement June 2001 Master of Science thesis of Stephen C. Schlegel Jr. presented on May 26, 2000 APPROVED: Redacted for Privacy Major Professor, representing Mechanical Engineering Redacted for Privacy Chair of Department of Mechanical Engineering Redacted for Privacy Dean of Graduate ho I understand that my thesis will become part of the permanent collection of Oregon State University libraries. My signature below authorizes release of my thesis to any reader upon request. Redacted for Privacy Stephen C.Sc Sc eg Jr., Author ACKNOWLEDGEMENT I would like to thank Dr. David G. Ullman for guidance and instruction in this research project. Without his knowledge and understanding of the mechanical design process this research would not have been possible. I would also like to thank John Rasberry of Layton Manufacturing Inc. and Greg Barreto of Barreto Manufacturing Inc. for allowing me the opportunity to study the product development process in their companies. Their cooperation has given me greater insight into the actual processes needed for small manufacturing companies to become successful. TABLE OF CONTENTS Page INTRODUCTION 1 Motivation for Work 7 Objectives of the Project 8 EXPERIMENTAL METHODS 10 Step 1: Document the Current Process 11 Step 2: Make Necessary Changes to Reflect a Concurrent Engineering Environment Process Model Theory of Constraints Revised Theory of Constraints 14 15 19 21 Step 3: Develop Executive Level Process Measurement Matrix (PMM) 26 Step 4: Use PMM in conjunction with the analytical hierarchy process or a simple ranking technique to develop relative 44 priorities Step 5: Construct the appropriate measurements for each subprocess in the product development process 57 DISCUSSION/ RESULTS 59 CONCLUSION 63 TABLE OF CONTENTS (Continued) Page BIBLIOGRAPHY 65 APPENDICES 67 Appendix A: Documentation of Company A's Old Product Development Process Appendix B: Documentation of Company B's Old Product Development Process Appendix C: Concurrent Engineering Based Product Development Process Model Appendix D: Theory of Constraints Logic Tree Appendix E: Revised Theory of Constraints Appendix F: Process Measurement Matrix 68 82 95 123 127 141 LIST OF FIGURES Figure 1. 2. Page Schematic representation of the traditional "Over-the-Wall" approach to product development 1 Visual representation of the concurrent design process with all of the functional areas involved in the process 5 Representation of a simple flowchart documentation for Company A's current product development process 11 A process information sheet that was competed for the first step in the product development process of Company B 13 5. Model of the mechanical design process proposed by Ullman 16 6. Flowchart of concurrent engineering based product development process model 18 A process information sheet for the first step in the concurrent engineering based product development process 19 A portion of the reality tree for the product development process at Company B 20 9. Generic process model 22 10. Generic process model for the overall product development process 23 First page of the revised theory of constraints diagram for Company B 24 12. Basic structure of the process measurement matrix 28 13. Process measurement matrix that has been completed for the executive level of Company B 31 3. 4. 7. 8. 11. LIST OF FIGURES (Continued) Figure Page 14. Top left section of the process measurement matrix for the executive level of Company B 32 15. Bottom left section of the process measurement matrix for the executive level of Company B 35 16. Bottom center section of the process measurement matrix for the executive level of Company B 37 17. Top center section of the process measurement matrix for the executive level of Company B 38 18. Top center section of the process measurement matrix for the executive level of Company B 40 19. Distribution of product development subprocess cost over the entire product development process for Company B 42 20. Distribution of product development subprocess time over the entire product development process for Company B 43 21. Flowchart used to complete the section of the process measurement matrix the relates Company B's executive requirements to the subprocesses 44 22. The matrix developed during the first step of the analytical hierarchy process 45 23. The intensity of importance scale used when comparing one element to another 46 24. Analytical hierarchy process matrix with judgements made between elements 1, 2, and 3 47 25. The analytical hierarchy matrix with all values normalized 47 26. Average of the rows producing the overall relative priorities 47 27. Comparison of the analytical hierarchy technique and the simple 51 rank order technique LIST OF FIGURES (Continued) Figure 28. 29. 30. 31. 32. 33. Page Plot of the overall relative priority of the product unit cost requirement for each subprocess in the product development process of Company B 52 Plot of the overall relative priority of the customer requirements realized requirement for each subprocess in the product development process of Company B 53 Plot of the overall relative priority of the achieved customer satisfaction requirement for each subprocess in the product development process of Company B 54 Plot of the overall relative priority of the percent earned market share requirement for each subprocess in the product development process of Company B 55 Plot of the overall relative priorities for all of the executive requirements for each subprocess in the product development process of Company B 56 A completed process information sheet with the relative priorities of the executive level requirements and example measurements 57 LIST OF APPENDICES Appendix Page A. Documentation of Company A's Old Product Development Process 68 B. Documentation of Company B's Old Product Development Process 82 C. Concurrent Engineering Based Product Development Process Model 95 D. Theory of Constraints Logic Tree 123 E. Revised Theory of Constraints 127 F. Process Measurement Matrix 141 LIST OF APPENDIX FIGURES Appendix Figure Page A.1. Flowchart of company A's old product development process 68 B.1. Flowchart of company B's old product development process 82 C.1. Flowchart of concurrent engineering based product development process model 95 D.1. First page of the theory of constraints diagram for Company B 123 D.2. Second page of the theory of constraints diagram for Company B 124 D.3. Third page of the theory of constraints diagram for Company B 125 D.4. Fourth page of the theory of constraints diagram for Company B 126 E.1. First page of the revised theory of constraints diagram for Company B 127 E.2. Second page of the revised theory of constraints diagram for Company B 128 E.3. Third page of the revised theory of constraints diagram for Company B 129 E.4. Section of the first page of the revised theory of constraints diagram for Company B 130 E.S. Section of the first page of the revised theory of constraints diagram for Company B E.6. Section of the first page of the revised theory of constraints diagram for Company B 131 132 LIST OF APPENDIX FIGURES (Continued) Appendix Figure Page E.7. Section of the first page of the revised theory of constraints diagram for Company B 133 E.B. Section of the second page of the revised theory of constraints diagram for Company B 134 E.9. Section of the second page of the revised theory of constraints diagram for Company B 135 E.10. Section of the second page of the revised theory of constraints diagram for Company B 136 E.11. Section of the second page of the revised theory of constraints diagram for Company B 137 E.12. Section of the third page of the revised theory of constraints diagram for Company B 138 E.13. Section of the third page of the revised theory of constraints diagram for Company B 139 E.14. Section of the third page of the revised theory of constraints diagram for Company B 140 F.1. Process Measurement Matrix completed for Company B's executive level product development process 141 F.2. Section of Process Measurement Matrix completed for Company B's executive level product development process 143 F.3. Section of Process Measurement Matrix completed for Company B's executive level product development process 144 F.4. Section of Process Measurement Matrix completed for Company B's executive level product development process 145 F.S. Section of Process Measurement Matrix completed for Company B's executive level product development process 146 Lovingly dedicated to my wife, Jessica. Your love and support has been the pillar of my strength. A Product Development Process Measurement Methodology Applied to Small Manufacturing Companies INTRODUCTION With a changing domestic market and ever increasing international competition, companies large and small are being forced to reduce their development times while improving the quality of their products, lowering product costs, and increasing customer satisfaction (Allen, 1997). Reaching these goals has been a big challenge for many companies. One reason is the continued use of a traditional "over-the wall" approach to product development. This process is represented schematically in Feedback from Customers Feedback from Production = == = == = 1I OK Marketing 111 = =1=11 11I= Engineering Production End User === = == === Figure 1. Schematic representation of the traditional "Over-theWall" approach to product development. 2 Figure 1. In this traditional or sequential methodology, the need for a product is seen by marketing who develops the initial concept. This concept is then thrown "over-the-wall" to engineering. Engineering then develops the new concept, creating production drawings, bill of materials, and assembly instructions. The production area then receives the specifications and tries to manufacture the product. Very seldom is the product able to be produced because engineering has proposed a product that either cannot be manufactured with current technologies, or has huge capital expenditures. Therefore, the specifications move back and forth between engineering and production until a suitable compromise is found. Once the product is able to be manufactured, it is produced and delivered to the customer. The customer then relates their opinion of the product to marketing through purchasing the product (sales) and complaints. Servicing also relates their evaluation of the product to marketing by the actual number of service calls needed (repair) of the product. The whole process will then start over with marketing redefining and improving the product, then sending the new concept to design. This method of product development has direct consequences in terms of time, cost and quality. The lack of interaction between different functional departments increases the time for product development while also increasing the cost of the product due to process. This is a result of bottle necking and non-value-added time. The quality of the product is also directly affected by this lack of interaction. Design tools such as 3 Design for Assembly (DFA), Design for Manufacturablility ( DFM), and Quality Function Deployment (QFD) have been to shown to improve product quality (Clausing, 1994). Yet these tools cannot be employed because most of the product development time was spent making subtle changes to a design that was not effectively completed the first time. In the early 1980's a product development process was introduced that proponents claimed would solve the problems brought by the traditional "over-the-wall" method. There is little agreement in industry on the nomenclature given to this method. The most widely used name for the process is concurrent engineering. Other names familiar to the process are simultaneous engineering or integrated product and process development (IPPD). There have been many different definitions given to concurrent engineering. Some of the definitions are: "A systematic approach to the integrated, simultaneous design of both products and their related processes, including manufacturing, test, and support." (Turino, 1992) "A viable approach in which the simultaneous design of a product and all its related processes in a manufacturing system are taken into consideration, ensuring required matching of the product's structural with functional requirements and the associated manufacturing implications." (Jo, 1993) "A systematic approach to the integrated, concurrent design of products and their related processes, including manufacture and support. This approach is intended to cause the developers, from the outset, to 4 consider all elements of the product life cycle from conception through disposal, including quality, cost, schedule and user requirements." (Institute for Defense Analysis, 1986) "A systematic approach to integrated product development that emphasizes response to customer expectations and embodies team values of cooperation, trust and sharing in such a manner that decision making proceeds with large intervals of parallel working by all life-cycle perspectives early in the process, synchronized by comparatively brief exchanges to produce consensus." (Cleetus, 1992) These definitions overlap in many areas. From the definitions the following principles for concurrent engineering can be realized (CarlsonSkalak, 1997): Focus on customer involvement throughout the product development process The use of a multidisciplinary team. Focus on the life cycle of the product throughout all stages of product development. Application of tools early in the product development process such as Design For Anything (DFX) and Quality Function Deployment (QFD). Involvement of suppliers early and throughout the product development process. Using modern design tools such as CAD, CAM and CAE. Continually improving the product development process. 5 Concurrent Marketing engineering can be Sales \k Management 17 Product Engineering A7P \ Figure 2.0. This .111110- Development -4111-! Process Manufacturing t represented as in Service and Support figure shows how all of the functional Customers Suppliers areas are involved in the product design process. Figure 2. Visual representation of the concurrent design process with all of the functional areas involved in the process. Some benefits that concurrent engineering brings to a company that has successfully implemented it are: Consideration of all the people involved with and all phases of the product life cycle result in a better design process. Management is able to focus on the quality, cost, and schedule. The voice of the customer is not only heard, but an emphasis is placed on it. The customer becomes part of the multidisciplinary design team. Alternative processes are investigated and studies are conducted to find the best design. These studies include competition benchmarking. By working together in teams, the people in the company become closer and are able to understand one another better. 6 The same team follows the project from start to end promoting a sense of ownership of the project. This gives a feeling of responsibility for the project and enables team members to have a better understanding of the project details. Suppliers are brought into the multidisciplinary design team (Chapman, 1992). Many large companies have implemented product development processes based on these principles with very impressive results. Digital Equipment Corporation saw the assembly time for a project reduced by 65% while material costs were also reduced by 42% (Machlis, 1990). Companies have also seen a 30% 50% decrease in the time for a product launch to occur with the end product usually of higher quality, lower production cost, and good market success. Boeing saw assembly time on the 777 reduced from the planned 19 weeks to 3 weeks (Huthwaite, 1993). After Xerox successfully implemented concurrent engineering, the number of suppliers used dropped from over 3000 to under 400 (Clausing, 1994). When concurrent engineering is employed early in the design process, an average of 40% savings in time has been saved over traditional design methods (Tricamo, 1993). Experts say that while a 50% cost overrun on development will decrease profits by 3.5%, a six month delay in bringing the product to market reduces profitability by 33% (Machlis, 1990). The list of improvements in production goes on and on, but most of the data has been acquired from large companies. 7 Large companies are defined by the U.S. Census Bureau as companies that employ 500 people or more. There has been very little data reported by small businesses. This lack of data can be attributed to one main reason, they have not successfully implemented concurrent engineering. Motivation for the Work Small businesses (firms with fewer than 500 employees) employ 53 percent of the private non-farm work force, contribute 47 percent of all sales in the country, and are responsible for 51 percent of the private gross domestic product. Small-business-dominated industries produced an estimated 64 percent of the 2.5 million new jobs created during 1996 (U.S. Small Business Administration, 1997). The number of small businesses (as measured in business tax returns) in the United States has increased 57 percent since 1982. As of 1996, there were approximately 23.3 million non-farm businesses, of which, 99 percent are small by size standards set by the U.S. Small Business Administration (SBA). These include corporations, partnerships and sole proprietorships. Almost two-thirds of the 23.3 million businesses operate full-time, the rest part-time (IRS Statistics of Income). Employers with fewer than 500 employees increased from 4,941,821 in 1988 to 5,261,967 in 1994, a 6.5 percent increase (U.S. Small Business Administration, 1997). This data also shows that 98.5% 8 of manufacturing enterprises in the United States are considered small businesses (U.S. Census Bureau,1995). With small business representing such a huge stake in industry, it would seem natural for them to pursue and implement concurrent engineering. But small companies have not implemented concurrent engineering with the success that large companies have had. Many reasons have been cited for this deficiency. One reason is that larger companies have more resources they can apply in developing a concurrent engineering process. Small companies do not have the resources (e.g. time, people, money) to invest in concurrent engineering. Smaller companies are usually operated in an unstructured manner, with little formal communication or developed documentation. Larger companies tend to have well developed lines of communication and fully implemented documentation. The one key reason for unsuccessful implementation seems to be the lack of a plan that small companies can follow to successfully implement concurrent engineering (CarlsonSkalak, 1997). Objectives of the Project There were three main objectives of this research project. The first objective was to develop a concurrent engineering based product development process that small manufacturing companies could use. 9 Development of the concurrent engineering based product development process was accomplished by documenting the product development process currently used by two small manufacturing firms. These processes were examined and then reconstructed based on needed improvements for a concurrent engineering environment to exist. Second, a new theory of product design process measurement was tested. This theory is used to identify the attributes which are common to product development process. The new methodology employed the Process Measurement Matrix (PMM) which provided a better understanding of the product development process attributes. Last, from the attributes provided by the PMM, the measurements necessary to ensure a successful product development process were acquired. Measurements could then be made during the product development process that would provide information in terms of process performance. 10 EXPERIMENTAL METHODS A five step program was developed that small manufacturing companies could use to implement a concurrent engineering based product development process. This program consisted of the following steps: Step 1: Document the current process. Step 2: Make necessary changes to reflect a concurrent engineering environment using process model, theory of constraints (logic tree) and revised theory of constraints. Step 3: Develop the executive level Process Measurement Matrix (PMM). Step 4: Use PMM in conjunction with the analytical hierarchy process or the simple ranking technique to develop relative priorities. Step 5: Construct the appropriate measurements for each subprocess in the product development process. The first step was completed for two small manufacturing companies. The size of these companies was 50 or fewer employees and annual sales of 10 million dollars or less. These companies will remain anonymous and will be designated here as Company A and Company B. Due to resource constraints, steps two through five were completed only for Company B. 11 Step 1: Document the Current Process The first step in the program is to document the current product development process used by the company. By documenting the current irb Identify Market Opportunity Final Design Review and Verification Develop Product Specifications Product Projections Made to 0 Generate Concept Sketches 0 0 Prototype Drawings Developed Manufacture Scheduling Production O Prototype Built J 4 Post Production Review Modify Prototype Prototype Testing 0 -0 Customer Support & Service Detail Drawings Developed Modify Product as needed o Continued top of ---> next column Figure 3. Representation of a simple flowchart documentation for Company A's current product development process. 12 process a better understanding is gained of the product development process. This documentation will be needed to compare the current process with the concurrent engineering based model. The format of the documentation usually consists of a simple flow chart that shows how the product proceeds through the product development process. An example of this document can be seen in Figure 3. A process information sheet is also completed for all of the subprocesses involved during the product development process. This document provides important information in the following categories: Description Purpose Personnel Involved Documentation Involved Output Information Required Assessment Notes The description gives an explanation of what the particular process achieves. The purpose tells the function the process provided to the overall product development process. Personnel involved simply lists the people involved with the process. Documentation shows the forms, papers, or records involved in the process. The output reports on the information that comes out of the process. The output could be either 13 tangible or non-tangible. For example, a tangible output would be a form, drawing, or something you could actually touch. A non-tangible output would be something that you could not physically touch such as, the fact that a customer driven product has been ensured by completing Sheet BCE 1.0 Identify Market Opportunity Description: The market opportunity for a product is identified by the owner. The owner is a contractor who sees a need for products from a first hand point of view. He wants to provide all the equipment needed for contractors to successfully complete their jobs. Purpose: To intitialize the product development cycle and start the design process. Personnel Involved: Company owner and engineer. Documentation Involved: Notes and sketches for ideas that have been started from concepts that the owner and engineer have had. Output: Written notes and sketches placed in a design notebook or project file. Notes: Assesment: This stage of product development initially worked since the owner had come from the paving business and saw the need for a product on a first hand basis. The owner then started a new product design based on what he thought the market would respond to instead of researching the market. He no longer had the first hand knowledge that he had while working as a paving contractor and the market did not respond to this product as it had with the previous product. Figure 4. A process information sheet that was competed for the first step in the product development process of Company B. the process. The information required explains what information is necessary during the process for it to be completed. The assessment 14 section allows the person documenting the process to give an evaluation. This assessment might include things such as what worked and what didn't work in the process. Any notes that the person documenting the process feels need to be included on the process information sheet are placed in the notes section. An example of the process information sheet can be seen in Figure 4. This documentation step was completed for the entire product development process in both Company A and Company B. The entire set of documentation can be seen in Appendices A and B. Step 2: Make Necessary Changes to Reflect a Concurrent Engineering Environment The second step in the program is to make the necessary changes to reflect a concurrent engineering environment using a process model, the theory of constraints (logic tree), and the revised theory of constraints. First, the current product development process is compared with the concurrent engineering based product development process and the necessary changes are made. Second, the theory of constraints reality tree is developed for the process. This increases the understanding of the process, highlighting the requirements to proceed from one subprocess to the next. Last, the revised theory of constraints diagram is created. Information from this step will be directly entered into the process measurement matrix. The completion of these steps results in a fully developed revised theory of constraints diagram. These 15 steps happen in parallel to each other as the information evolves between them. Process Model Once the current product development process has been documented, it is compared with a concurrent engineering based product development process and the necessary changes are made. The concurrent engineering based product development process model was based on a model proposed by Ullman (1997). This model can be seen in Figure 5. The following principles of concurrent engineering were also used in the development of the process model. Focus on the entire product life. The use of a multidisciplinary team. Realization that the processes used in product development are as important as the product being developed. Application of tools early in the product development process such as Design For Anything (DFX) and Quality Function Deployment (QFD). Involvement of suppliers early and throughout the product development process. Promotion of generating and evaluating multiple concepts. Identify needs. Plan for the design process. Develop engineering specifications. Develop product. Identify who the customers are. Market New technology Develop concepts. -----T H Develop tasks. Schedule project. _I Generate customers requirements. What do they want? Evaluate performance. Estimate cost. Evaluate concepts. Engineering specifications Design for manufacture. I --IEvaluate competition. Decompose into subsystems. Now is it done now? i Design for assembly. Subproblem Generate engineering specifications. How will the requirements be measured? Decompose into subproblems. Generate product. Generate concepts. Form design Leans. Communicate product information. Communicate concept information Decompose into components Update plans. Set targets How much is good? 1 Evaluate product. Release for production. 11? Subproblem V Terminate. Terminate. Terminate. 5 17 Simultaneous awareness of manufacturing processes as the product is being developed. Using modern design tools such as CAD, CAM and CAE. Continually improving the product development process. Improvement of communication through all phases of the product development process. Using the model proposed by Ullman, the principles listed above, and the documented product development processes currently used by two small manufacturing companies, a new process model was created. A flow chart of this model can be seen in Figure 6. Process information sheets were also completed for this process. Figure 7 shows the process information sheet for the first step in the concurrent engineering based product development process model. The entire set of process information sheets for the process model can be found in Appendix C. This model is divided into five basic areas: Marketing, Product Definition, Detail Design, Production and Post Production. Each one of these phases is composed of two or more subprocesses. All of the phases are characterized by a decision making process, except for the Post Production phase. Concurrent Engineering Based Product Development Process '11 Marketing Product Definition Post Production Production Detail Design .41--­ CPDP 1.0 Identify Concept est Idea 3 V CPDP 1.3 "Fuzzy Front End" CD CPDP 1.1 CD Competitive Market Analysis/ Market / Engineering Assessment CD Customer Requirements Defined Through Focus Groups I + CPDP 2.2 Prototype Virtual Part Modeling ,"; g .11$ CPDP 2.3 CPDP 1.4 Complete Pre- Planning Matrix Prototype Virtual pi CPDP 3.2 Assembly (Fit, 41 Production Form, Function Test) CD CD IP CPDP 1.5 CPDP 1.2 oject Ap CID co Conduct Quality Function Deployment Based On Refined Customer Requirements Prototype Detail Production Model 41. Performance Developed Review i ELI CPDP 1.6 Program CD CPDP 3.3 CPDP 2.4 / 0 Schedule Estimated CPDP 2.5 CPDP 3.4 III Production oval? Prototype Build CD CD 0 1 CPDP 1.7 CD Product Specifications rrt Developed 0 CD CPDP 2.6 Prototype Testing (Functional) V Cn V CPDP 1.8 S Program Schedule 0 Developed CD CPDP 2.7 BiB of Materials Completed r CPDP 1.9 Concepts Generated CPDP 2.8 Assembly Instructions Completed i CPDP 2.0 pts ConceEvaluate CPDP 2.9 Technical Publications Developed CPDP?,(1, cept App 0 Customer Service and Support Manufacturing Scheduling Buy vs. Make) / C13. dQ CPDP 3.5 CPDP 3.1 (Material Selection, Musitacturtug Process Selection, i °) CPDP 3.6 Product Retirement 19 Sheet CPDP 1.0 Identify Concept or Idea Phase: Marketing Description: An idea or concept is identified by the company. Purpose: To initiate the product development cycle and start the design process Personnel Involved: Marketing, company owner, product development director. Documentation Involved: Notes or sketches about the product, idea, or concept. Output: Product description, idea, or concept. Assessment: Information Required: Market and technological data on the product being considered. Notes: Research is initiated from two primary sources: Market pull Occurring as a natural outcome of customer or user aspirations, when the technology tends to be behind the market; Technology push The result of new technology, creating new markets, when the market is behind the technology. (Pugh, 1989) Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Development Time Product Development Cost Earned Market Share Achieved Customer Satisfaction Customer Requirements Realized Product Unit Cost Score 3.01 2.05 Example Measures # of Days Spent in Process $ Spent on Process 1.16 1.14 1.09 1.03 Figure 7. A process information sheet for the first step in the concurrent engineering based product development process. Theory of Constraints The theory of constraints is a methodology developed by Dr. Eliyahu M. Goldratt which suggests that all systems are similar to chains or to networks of chains. Each chain is composed of a variety of links 20 that are different in their strength or capability. The theory implies that each chain has one and only one weakest link which defines the maximum performance of the existing chain (Dettmer, 1998). A reality tree is used to identify the system constraint. The reality tree is nothing more than a logic tree that reads as IF-THEN statements. By using this SYSTEM BOUNDARIES: The product development process from identifying the need for the product to post product retirement. A decision must be made to proceed with product development The decision is made to proceed with product development Competitive market he market analysis and market research provides constructive feedback THE GOAL: To produce a product that is customer driven. analysis/market research is conducted he company involved is interested in developing the product Figure 8. A portion of the reality tree for the product development process at Company B. methodology, a better understanding of the process is gained. This also helps generate a better description of the procedure. Another benefit of the reality tree is that it highlights the requirements needed to proceed from one subprocess to the next. A portion of the reality tree developed for Company B can be seen in Figure 8. The reality tree flow is from the 21 bottom of the tree up. For example, in Figure 8, the IF-THEN statement would read as follows, "If a need for a product exists AND the need for the product is identified AND the company involved is interested in developing the product, THEN competitive market analysis, market research and an engineering assessment can be completed." By documenting the product development process in this manner, it becomes clear what is required of a process before the next process can begin. This gives the individual performing the exercise a better understanding of the processes involved and the requirements to proceed from one process to the next. The system boundaries and the goal of the process are also placed on the sheet. This allows the individual completing the reality tree to organize their thoughts so that the appropriate system is documented. This process was completed for the entire product development process in Company B. The entire reality tree can be seen in Appendix D. Revised Theory of Constraints The revised theory of constraints is constructed using the theory of constraints reality tree and the process model. Each process can be broken up into the generic process model as seen in Figure 9 (Wright, 1999). This diagram shows that every process can be broken down into the resources and requirements needed and the deliverables produced. 22 Deliverables Figure 9. Generic process model. Using this format, a generic process model was completed for the overall product development process and for each of the subprocesses involved. The generic process model for the overall product development process can be seen in Figure 10. This figure shows the resources that are provided to the product development process, the requirements that are placed on the process and the deliverables of the process. The same procedure was completed for each of the individual subprocesses that make up the overall product development process. These individual subprocesses are then arranged in a manner that indicates the process flow. This arrangement is shown in Figure 11. The process flow occurs from left to right, top to bottom. 23 1) 80 85 Days 2) $239,000 $289,000 3) CO(1), PDD(1), PM(1), MRKT(2), ENGR(4), SIS (1), MANF(10), EU(2), VND(5), SM(1) 4) Offices and Facilities 5) Equipment 6) Materials CPDP 1.0-A Product Development Process T) A product that meets customer's requirements 0­ NT) Customer satisfaction ( 1) Product Unit Cost ($) 2) Product Development Cost ($) 3) Product Development Time (Days) 4) How many customer requirements have been achieved (#) (Product Performance) 5) Achieved customer satisfaction (% from survey) 6) Percent Earned Market Share (%) Figure 10. Generic process model for the overall product development process. 24 Revised Theory of Constraints for Company B's New Product Development Process The de r Ielon m made not chart is proc d h developomnt based on this generic process model 11 4-513ays 1) 4-5 Dap 2) 8 5000 - WOO 21 55000 .$6000 3) IdRIC122. C0111, P0011) 3) lump). Call. ONL, 4) Illsteket and tochnoMgmal to on the preeluct tem considered Re eau roes: Time is based on chart titled "Project Timeline for Concurrent Product Development Process'. Money is calculated as the sum of the number of hours x the number of employees x the hourly pay for each reepecitive department - the average amount spent on this process (rounded up to the nearest $1000). - Pay rates: Marketing, $20.00/hr; Product Development Director, $40.00/hr.; Company owner, $50.00/hr.; Production Manager, $30.00/hr.; Engineering) $25.00/hr.; Manufacturing, $20.00/hr.; Sales, $20.00/hr. Service Manger, $30.00/hr.; Avg. - $30.00/hr. - Personnel Invovled: CO - Company Owner, PDD ­ Product Development Director, PM - Production Manager, MRKT - Marketing, ENGR - Engineering, SLS - Sales, MANF - Manufacturing, EU - End User, VND - Vendor, SM - Service Manger. Followed by the number of people invovled from the respective area. Deliverables: T - Tangible (something you can touch), NT - Non-tangible 4) Displays. charts, graphs mid nom. ( market opportunity C pet M k Anlysts / Market liesemrch/ ISH Id =GenUff Concept or Ide nd the NI, to develop good market position It Dmpleys. charts. amp,. nd note that shove the required 11 The market anabeis rid market research provide constr... Pemb. giveconcept or tbs. kw' product mute 21 The comp, inve/red me mg. In ,Oevebpng We prodout 11 N -5 Day 2) It WO S60000 4.5 IMP V 55000 - WOO 5407121. COM, PEM3111 4) Market end tech* 31 WORM C011). Po011) te on the produat he in considered 4) DIsphtp. charts. granite*. notes market opportunity pm k ntysi / Market Research/ EV and Me hty to domal velopp market CPU? 1 9.1, !dont position Concept or Ido It Displays, charm. 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Magram NT) The echechile developed program schedule NT) Customer dnven Con reflect. reahmac time re,rement and te apposed In I) The schedule nneets TI cemp.uulpyr.m rohvic nom sume and ts append* 011.0,11.11 1) Quality Punctson Depqment le conducted (1) Management hm schedule hotter undo imandirtg of lamed on refined rummer requoremente Me poduct 1) 7-1 Dap 05.000 .19.000 at P013111, 81105(4) CompletedQFD Msgr. 2.3 oar, 21 g6.030 58.000 .p ficau hIRICE(21.00(11. PDE1111. Pats 61/0512).1.4512), 514121. 51111 41 Cutemer requiremmits. Pin prtance rating. tem of workmen, eale plot. pals in ni 4 DeTs 1111.005 0 113 mad benchmark ins The product g 1 5 Days 21 115.0040 -116.000 31 PO0(1). oolOol 41 Product spectflcaorm. Mgxrrn, can. row nom It/mom...Mot man u lacunae process cpatelitte. any Stout POOL Blom Mom. irbm. mime T1 A completed pre- (PDF 1441 ComPlete PrePlanning Matrus d ekets hoe kern t u planning meon wIth refined cumorner requirements requi mandemle or code that en tmt saued. cpuonti Of any) Pm omrefled mnulac poduct. any re h rence t Dud in the designers cone genernuon mine" and ketchp remenCt. Defined Thr741Pocu hn or Me focus group. TrIlrelnIntelanalr 21 was.. ofi)ad coo.. agrems. teettml demnpnons. moble or renuiroment coomoo 11 The c overact emensIfocu group 21 Management Mrecte efbrIn and muMe which `se. define or confirm the 371Te7.:X. Generated mquired reanufmtunng promm capthshtse. any required mender. or tisfied. comp uon's customers rants and Figure 11. First page of the revised theory of constraints diagram for Company B. how. how the required Piction sto ch1eved through the 11 Product speclficatIon in terms of banction anyl design ) molder product. may reference 25 Notice how some of the processes need the deliverables from more than one subprocess before the product development process can continue. For example, in the lower left hand corner of the diagram, before the CPDP 1.5-B Conduct QFD Based on Refined Customer Requirements process is started both CPDP 1.3-B Customer Requirements Defined Through Focus Groups and CPDP 1.4-B Complete Pre-Planning Matrix need to be completed. The diagram shows all of the resources, requirements, and deliverables needed in each subprocess as the product development process proceeds from one subprocess to the next. The entire revised theory of constraints diagram for the product development process at Company B is given in Appendix E. This appendix includes enlargements of each section of the diagrams for better visibility of the chart details. The revised theory of constraints is completed for the overall product development process and all of its subprocesses. The results of this step will be directly entered into the Product Measurement Matrix (PMM). It should be noted that during this step (Step 2: Make Necessary Changes to Reflect a Concurrent Engineering Environment) each of the steps mentioned here (Process Model, Theory of Constraints and Revised Theory of Constraints) can be completed together in a simultaneous manner. While the theory of constraints and the revised theory of constraints are being developed, more information about the overall process will be gained. This will lead to further refinement of the process 26 model. This refinement helps to ensure that that all parts of the process are accurately identified and accounted for in the documentation process. The result is a well-defined representation of the company's product development process with all of the resources, requirements, and deliverables utilized. Step 3: Develop Executive Level Process Measurement Matrix (PMM) Now that all of the resources, requirements and deliverables used during the product development process have been identified, the third step of the program can be performed. This step involves developing the executive level process measurement matrix (PMM). The PMM is part of a new theory of design process measurement developed by Wright (1999). Some of the key features of this new method include: The PMM shows all of the resources, requirements, and deliverables of the product development process and the relationships between them. Provides alignment between the executive level and the next level of management. Gives the appropriate management structure to use during the process. Provides the overall relative priority of each subprocess on the requirements set by the executive level. 27 Helps develop measurements for the subprocesses to ensure that the executive level requirements are met. Based on Quality Function Deployment (QFD) structure to support process measurement. As stated above, one feature of the PMM is that the structure of the matrix is based on the "House of Quality" used in Quality Function Deployment. Figure 12 shows the basic structure of the PMM. The left side of the PMM presents the process customer and the measures of the resources, requirements, deliverables, and product. In this case, the customer would be the customer of the product development process, namely the company owner. Hence, this is called the executive level process measurement matrix. The matrix is being developed at a level between the executive level (i.e. the company owner) and the next level down in the organization which would be the product development process level. The manager of the product development process will be able to visualize the relationship between all of the resources, requirements, and deliverables that exist between the top level in the company and the process that the manager is responsible for. The center of the matrix illustrates many different relationships. At top-center, the relationship between the internal process measurements in terms of resources, requirements, and deliverables is developed. The middle-center region provides the management structures that are used during the product development process. It also Measurements of internal implementation co L.) Process Customers r& CD 0 r6" CD 0 CD ro Measures of: Resources Requirements Deliverables Product Internal Process Measures Management Structure co CD 0 Internal Targets Process Benchmarks Measures of: Resources Requirements Deliverables Product 29 gives a relative priority rating of the external requirements for each one of the subprocesses. This specific region is developed during step number 4 of the program. The bottom-center of the matrix shows the internal targets that have been set for the process. The right side of the matrix provides process benchmarks of previous product development projects and may also include some of the competition's process benchmarks. A process measurement matrix was completed for the executive level of the product development process in Company B. This matrix can be viewed in Figure 13. The key to the matrix is given as follows: Complex Internal Measurements NA Not Applicable, No Relationship Responsibility For Requirements A - 3300.00 $/day * B Market Share Loss of 1%/month C - Company Owner, 3.5% of team, 22% of time, 4% personnel cost D Product Development Director, 3.5% of team, 100% of time, 13% of personnel cost E - Production Manager, 3.5% of team, 67% of time, 6% of personnel cost F - Marketing, 7% of team, 22% of time, 3% of personnel cost G Engineering, 14% of team, 92% of time, 29% of personnel cost H Sales, 7% of team, 14% of time, 2% of personnel cost I Manufacturing, 34% of team, 67% of time, 42% of personnel cost J - End User, 7% of team, 3% of time, NA K Vendor, 17% of team, 61% of time, NA L - Service Manager, 3.5% of team, 12% of time, 1% of personnel cost M Offices and Facilities, 20% of total cost N Equipment, 30% of cost O Materials, 15% of total cost Management Structures 1 Schedule (e.g. Gantt Chart) 2 Budget 3 Product Planning QFD Matrix 4 Subsystem Design QFD Matrix 5 Piece Part QFD Matrix 30 6 Business Plan NA Not Applicable Measurements Experience with this type of design #2 Experience with this size of production #1 Complex Internal Measurements Information Dependency Between Processes a Lost Profit of $10,000/day Planned Expense of $5000/day The process measurement matrix that was completed for the executive level of Company B can be seen in greater detail in appendix F. This appendix provides the matrix larger views. Figures 14-18 are shown in the next few pages with explanation given here. Figure 14 shows the top left section of the process measurement matrix. The first column indicates all of the external resources, requirements, and deliverables that are provided to the product development process. The area to the left of the first column (enclosed by heavy black lines) shows relationships between the external resources, requirements, and deliverables. The relationships in this area allow for complex external measurements to be derived. For example, the relationship between the resources of 80-85 days of time and the $239,000 $289,000 dollars that are allocated to the product development process are related by the letter A. From the process measurement matrix key, the letter A corresponds to 3300.00 $/day. This shows that the product development process will use approximately 31 OM.. 10.1.5. CPOP 11....10.1.55. Prom .... 1 1 ii I 83 8S 0.0 SU 1:03 I229 GO3 GO (1) 5000) 101.33M1 11 69521138 MM. 11.11.12, I 50.4 21 1011.91.5 OM 125Z45. 2.1151. 1114 2/05=55 MIST (2) S.M. 1011arzr 91401 04 6-1.4V4 (1) 616(1) MAIfMA NA Ml able 9/ Ofs. . 2.212. ow.. 1 it EpYpmuR 1/1 15a. 1A Pact G. (5) 17.1. 0.1.rnent Cce (I) Pu. 05.05.1 27.05... 1201 1. 32 Om 1 (MOM 114 9.41W1 1.8 IA 31 Wm M. (9) Cu Maton ) Pm. E.. 1.1.5 25. (11) 9.5 .4 BnunSmx. 2/127.40 0561.45 B. 111/54.111 *6 ti U MC I1C 22/ 2.11 21 IS" *2 9111.118.1 0 10 00 00 00 00 00 0.0 00 00 o 10 TO tO 10 L0 1.0 t0 10 l0 10 10 10 10 00 10 00 10 to to no 00 10 10 to 10 00 10 00 00 00 00 20 20 00 00 00 00 00 00 o.o 00 20 20 40 20 4.0 40 40 3.0 .0 0 30 30 30 30 30 00 00 00 00 10 10 00 00 00 as 20 00 20 0.0 20 20 20 20 0 00 00 Oa 00 00 00 00 00 00 OD 0.0 0.0 0.0 00 00 00 00 SO 0.0 0.0 0.0 ea oa o.o oo ao oo 9.1 1.1 1 NM 1 251 0.0 00 to 0o 20 20 2.0 20 00 00 00 00 20 20 o0 00 00 20 20 00 00 00 20 w 0.0 00 00 20 00 w 00 0.0 CO 00 .2 00 00 as ea 41 . U 11.1 2 awl U 9511 42 9541715.2 8.1 MD 1 .1 11.1 9.41 1541.1 9611 ma, 2 =4 b. 1 *2 MI *2 w U 2.2 . end 2 8408 * owl 2 20 I..d. a. 8.1 *6 30 0.0 *2 *2 5.412 1.0 1 *2 554 11751 2 10 I8 1.9 MD I *1 ft* 1 8. 1 *2 *2 *2 *2 1 2 18 I. II12 .2412 1 9. 1W 01512 1W 1W ii. 6 * 20 4.1 16 30 rs.* 120 01100 9. *2 1.1 1* 11. I I* 9.41 sni 2 *2 120 812000 120 112033 160 eau 80 112/3:0 8.0 111210 80 11700 80 30 18002 23.000 P.m So.* 1 25 SI 'I il tilt. . S 7. SO 30 999 0 0:0 19203 119130 299 10 00 00 10 0 10 10 10 to 10 10 10 to 10 11 10 1 2.0 00 0.0 20 20 2.a 40 30 20 30 4.0 20 1 4.0 18000 110 1.9 1.9 23 86 Da. 21 21 MOOD 1299100 10 10 5.5 11 U 2 55 0.0 00 00 o.o 10 t0 00 00 10 20 ZO 100 1 2.0 20 0.0 20 20 too 20 20 20 20 55 0.0 00 00 00 00 00 0.0 00 00 00 00 919 791 w w In 60 5.0 60 60 50 60 00 00 60 00 60 20 60 00 w w 6 oa 0.0 0.0 oo on au oa oo aa oa aa oo to IC .. 8.1 9561 *2 sow ea. *2 kw 1 .412 Bo. .4 2 1 awl ft* 1 0.41 Ilelh 1 13941 two 1 ow. I emh 8.1 *2 ft* i 0. 2 *2 .512 2 *2 Cl 14 20 27 2 82 6.2 AA 11 30 15 1.8 12 12 7.2 46 4. 90 4 7 9 .412 .712 .4 2 10. 2 .4 2 2 *2 .112 4 A 96 .4 2 1.. I 1* as4 27 4 4 42 48 48 0 1.0 10 3 1 two .8 Imo 1 *2 ft* I 2051 11. 1 *2 s. *2 gm" *2 I. I 5041 *2 Ift* .1 5. *2 1* II. lo.th *2 941 *2 I* ID. t 106 2 18 2. 12 10.0 2. 31 104 24 0. 1 are 9.41 0.0' mol 2 0.6 1 .412 91 ewe hi ,. ,. 814.70 1a Pruals. 1.2 I 2. 11 174. 21 L. 160000 11283.000 15 21 U NA 14 IA 11 DS 8.3 24 I. U U M SA IA 82 36 I 10 Il 4 U U It: U U 55 12 15 82 95 a 19 1.6 09 79 52 2 20 20 82 20 16 56 10 19 6.0 ,3 ls.... 41 MAN U 21 C ea. MI.. U U U U 1 58 6.9 11, 3.6 3.1 3. 17 35 66 1.3 1.2 38 69 6.0 A7 3.3 5.4 4.2 31 111 11 11 i 11 1 t I-I. III i 1 . 31 . ! kit i: lj Y. ki 32 109 68 54 A9 red. 211 ma 1 55 I 55 55 gi GO IO 20 3A 14 00 1.0 0, 11.3.12 .50417.. 0.5 0.0 22 115152.10 U 00 0 21 1.82 *4 3a 10 . . tllilll 11 il t t 21033 to .. i 30 1.0 01 Linn 960) La Si tll 60 1a WV... it it '' 16000 10 Si 11 RI j 30 22 mem l gl gl 1 i NOW 02 . . . 1600, 1 t 17541.504 I 8.0 e0 118.030 01 0 it I MGM 30 18:0 t1:11 9630 I 9600 50 cam .2:21; ...=.. MN. 15 14 30 illli ill '1 tg U 95511.24 In 14 0.51 / i a8 . 3A h....14.,...," EU 0 SM I. 1-=­ ii /II 50 I SA 55 SA 55 I I ,9I Yd i it it it I SI I : I It 11 101 29 AO 31 23 2 2.3 23 20 76 18 66 37 12 17 2 1. If 11 . w iliiillif U ff 2 kl , li II 1 , 7.,1 RI li R it II % if II I . ii Ri 71 R 7 ,1 1 Figure 13. Process measurement matrix that has been completed for the executive level of Company B. ti it 21 t it i . 140 00. 7404329 This area shows the relationship between the internal operations measurements and the external resources, requirements and deliverables. NZ Operations Measuemects F CPDP 1.0-A Product Development Process S S .4. I 1.0 80 - 85 Days S/Day 3300 $239,000- $289,000 CO (1) PDD (1) PM (1) MRKT (2) ENGR (4) ce V SLS (2) Available Immediately, 1 Available Immediately, 1 Available In 14 Days, 1 Availed* VDay 3300.0 2.0 6/Day/Person 400.00 6/DayPerson 320.00 S/Day/Person 160.00 Availebie In 14 6/Day/Person DIM 1 This area shows the relationship between external resources, requirements and deliverables, resulting in complex external measurements. Days, 1 bit) In 14 my% 1 this in 14 )4s, 1 ible In 32 )ays, 1 Vie In 14 )sYs, 1 1.0 ag 1 i 10 &al and 3 c,g. b S I 0. 0 cL?. g v, 2, 7,E i ; I Om 1 o. 00 et 80 5.0 $6000 Both 2 and 3 $6,000 #1 02 1.0 1.0 #1 02 1.0 1.0 #2 0.0 0.0 Ob 1.0 $ NA 2.0 2.0 2.0 2.0 01 02 0.0 0.0 0.0 2.0 #1 NA 0.0 0.0 0.0 2.0 01 #2 0.0 0.0 0.0 2.0 NC 01 NA 0.0 0.0 0.0 2.0 NC 01 NA 0.0 0.0 0.0 0.0 01 .... 0.0 0.0 NA Both 1 and 2 Both 1 and 2 Both 1 and Both 1 Both 1 and 200.00 160.00 6/Day/Person 160.00 1/Day/Person 240.00 2.0 NA 1.0 2.0 NA NA 1.0 2.0 NA NA Both 1 and 2 2 I involved. #1 VDay/Person i This area shows the relationships between the resources and each one of the subprocesses 3.0 6/Day/Person 240.00 Immediately, 1 Available In 14 1 I: 1 g I li 0.0 0.0 Both 1 and 2 Both 1 and Both 1 and 2 Both 1 and Both 1 Both 1 and 2 2 Figure 14. Top left section of the process measurement matrix for the executive level of Company B. 33 3300.00 $/day. If a measurement is then taken in terms of the $/day used in product development, the manager will immediately know how the process is performing compared to the way the executive level expects the process to perform. The area to the right of the first column (highlighted by the yellow rectangle) shows the relationship between the internal operations measurements and the external resources, requirements, and deliverables. In this area the appropriate management structure that should be used to manage the relationship is given. A management structure is a method that the manager can use to help them successfully organize the process. For example, the relationship between the 80-85 days of resource and the development time operations measurement is related by a 1.0. From the process measurement matrix key a 1.0 corresponds to a schedule (e.g. Gantt chart). Therefore, the manger would use a schedule to manage the 80-85 days and the development time operations measurement. Another example would be the relationships between the resource of the product development director (PDD) and the development time and cost. The relationship between the PDD and the development time tells the manager that for the product development process to function the product development director must be available immediately. It also guides the manager to use a schedule to regulate the PDD and development time. The relationship between the PDD and the development time indicates how much the PDD is costing the product 34 development process. This provides the manager with valuable insight into the product development process and illustrates the tradeoffs between the resources, requirements, and deliverables. The last area (highlighted in red in Figure 14) provides the relationships between the external resources and each one of the subprocesses involved in the overall process. This area shows the manager how the resources are distributed throughout the overall product development process. It also indicates what management structure would be used to direct the resource allocation. Figure 15 shows the bottom left section of the process measurement matrix. This figure displays a continuation of the areas discussed with Figure 14, as well as the addition of two different areas. The first area (highlighted by the green rectangle) provides the overall priority rating of each external requirement for all of the subprocesses. This part of the matrix is developed in step 4 of the program entitled, "Step 4: Use PMM in Conjunction with the Analytical Hierarchy Process or a Simple Ranking Technique to Develop Relative Priorities". Discussion of this area will be done in the next section of the text. The other new area of interest is highlighted by a light blue rectangle. This area shows the relationship between the external deliverables of the process and each subprocess involved. This area provides the manager with the appropriate management structures to employ during certain phases of product development. 2.0 Equipment Product De Cos This area shows the overall priority rating of each external requirement for all of the subprocesses. 1.0 3 Number of customer requirements that have been realized (%) 3.0 Both I NA and 2 Both 1 and 2 2.0 B oth 2 and 4 3.0 2.0 2 and 4 Both 1 and 2 Both 1 and 2 Both 1 and 2 Both 1 and Both 1 and 2 Both 1 and 2 2 .... Both 3 Both Nik 2.0 1.4 4.1 3.0 3.0 1.8 3.0 1.1 1.6 1.2 8.5 SIDay 3300.00,1 and 2 land B oth 3 and 6 3.0 B oth 2 and 6 3.0 3 I 1.1 1.9 1.6 6.9 6.0 3.0 3 1.0 2.0 2.0 6.2 5.6 4 1 aN 6 B a 2 3 cc Achieved Customer Satisfaction (%) Both 1 and 6 Percent Earned Market Share (%) Both 1%/month Average Requirements Importance Rating Average Requirements Quartile A product that meets customers requirements Customer Satisfaction and 6 NA NA NA 4 1.6 2.0 1.6 NA NA NA ...k o a c, 4.0 $300,000 3.0 NA NA NA NA 6.0 6.0 3.0 NA NA NA NA NI I E g g 'M 6 U g g 8 e O u_ 0 e 0, I1 0 ce 105 0_ . This area shows the relationship between the deliverables and each subprocess. Figure 15. Bottom left section of the process measurement matrix for the executive level of Company B. 36 Figure 16 is an extension of these areas viewed towards the center of the matrix. This area provides the relationship between the external deliverables and each subprocess. In the subprocess CPDP 1.5-B, Conduct QFD Based On Refined Customer Requirements, a relationship between the deliverables is given as 3.0. From the process measurement matrix key, 3.0 corresponds to a Product Planning QFD Matrix. Therefore, the manager would use a Product Planning QFD Matrix during this subprocess. Figure 17 illustrates the top or "roof' of the process measurement matrix. This area is highlighted by heavy purple lines. It indicates the relationship between the operations measurements, as well as the information dependency that exists between the sub- and lateral processes. For example, the relationship between two of the operations measurements, development time and cost, is given as a. The letter a indicates a relationship of Lost Profit of $10,000/day and Planned Expense of $3300/day. This shows the manager the relationship between development cost and time. The relationship between the subprocesses and the lateral processes is given by the symbol *. This relationship represents an information dependency between the subprocesses and is also indicated in the revised theory of constraints diagram (See Figure 11). --- -- 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5.0 5.0 5.0 5.0 5.0 5.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Both 1 and 2 Both 1 and Both 1 and 2 Both 1 and 2 Both 1 and 2 Both 1 and 2 Both 1 and 2 Both Both Both 1 and 1 and 1 and Both 1 and 2 Both 1 and 2 Both 1 and 2 Both 1 and 2 Both 1 and 2 Both 1 and 2 Bo-­ an Both Both 1 and 2 11 Both 1 and 2 v 2 OK Both 1 and 2 Both 1 and Both 1 and 2 Both 1 and 2 Both 1 and 2 Both 1 and 2 Both 1 and 2 Both 1 and 2 Both 1 and 2 1 and Both 1 and Both 1 and Both 1 and 2 Both 1 and 2 Both 1 and 2 Both 1 and 2 Both 1 and 2 Both 1 and 2 Bo 2 Both 1 and 2 Both 1 and Both 1 Both 1 and Both 1 Both 1 Both 1 Both 1 Both 1 Both Both Both Both 1 Both 1 Both 1 Both 1 Both 1 Both 1 Bo 1.2 1.3 1.4 4.8 1.2 5.6 1.0 4.2 1.1 4.3 3.2 5.4 5.3 4.3 3.9 4.2 5.5 1.4 1 2.0 2.0 1.4 4.1 2.4 2.0 1.7 3.1 1.4 2.0 2.7 2.7 6.2 6.2 4.1 15.4 4.1 4.1 4' 3.0 3.0 1.8 3.0 1.8 4.8 1.8 4.8 1.8 3.0 1.8 1.8 7.2 7.2 7.2 9.6 4.8 4.8 4 1.1 1.6 1.2 8.5 1.6 8.2 1.1 9.9 1.0 4.6 4.3 9.4 4.3 3.7 3.9 3.1 4.0 1.0 1 1.1 1.9 1.6 6.9 2.0 7.9 1.2 5.6 1.2 5.7 5.5 10.9 3.3 3.4 3.3 3.3 3.3 1.1 1 1.0 2.0 2.0 6.2 2.4 7.3 1.1 5.6 1.2 5.6 5.6 11.1 3.5 3.5 3.4 2.7 3.5 1.1 1 1.6 2.0 1.6 5.6 1.9 6.0 1.3 5.5 1.3 4.2 3.8 6.9 5.0 4.7 4.3 6.4 4.2 2.3 2 O 4 0 S 0 0 0 0 0 0 a a a 0 a NA NA NA 4.0 NA NA 5.0 NA NA NA NA NA NA NA NA 4.0 NA NA 5.0 NA NA NA NA NA NA NA NA NA NA 3.0 NA NA NA NA NA 3.0 -0 a) ca i? E .s -0 c'23trg. O 03 'a 0 E cc (j)) 8 ,1-1 08 0 03 c ,6.ELL t'S `,5. cLa. < Cai g 0 CC E 82 co co 4 .g E a£ 88 co fp i).(11 0- an m co LU ,d2 0 0_ ocy,xce 08 ow 0_ ra CO CL 0 t 721 0_ LU co a? co . 513 0 0- 13 1@ 2 2 13- . c 11.1 g og. I an ("% cL0 § § 8 088 Ci 0_ 0 0- 0. 0 .? 0_ 76 a= 05 -0 .1 co a= 0_ 05 k co 6 < 0.2 25 8 MI 0. 032 CI. .5 063 Figure 16. Bottom center section of the process measurement matrix for the executive level of Company B. C9 cb c 2_ 'It 0,­ co 8£ uzl co 0 CD Er CD CD CD CD r-r 1--11 0 ,2t­ co CD CD CD 0 1-1 'ZS CPDP 2.3-B Prototype Virtual Assembly Modeling CPDP 2.2-B Prototype Virtual Part CPDP 2.1-B Concept Approval? CPDP 2.0B Evalua Concepts Concepts Generated CPDP 1.9-B CPDP 1 8-B Program Schedule Developed CPDP 1.7-B Product Specifications Developed CPDP 1.6-B Prograi Schedule Estimated Requirements CPDP 1.5-B Conduct OFD Based On Refined Customer CPDP 1.4-B Complete PrePlanning Matrix CPDP 1.3-B Customer Requirements Define( Through Focus Groups CPDP 1 2-B Project Approval? Analysis/Market Research/Engineer Assessment 0 1-11 CPDP 1.1-B Competitive Marks CPDP 1.0-B Identify Concept or Idea Product Unit Cost Functionality Development Cost O CD fi CD 0 CD z1. Development Time 39 Figure 18 represents the last two areas of the PMM. The first of these areas is highlighted by a dark blue rectangle. This area shows the relationships between the external resources, requirements, deliverables, and the lateral processes. Lateral processes occur simultaneously to product development. As seen in the figure, the management structures used to manage the lateral processes are indicated. The second area shows process benchmarks from previous projects or from a competitors product development process. This data gives the manager insight into current process performance by comparing it to previous projects or to a competitors process. Step three of the program involves developing the executive level process measurement matrix. From the previous steps enough information should be available to nearly complete the matrix. The only area of the matrix which needs to be developed further is the area that shows the overall priority rating of each external requirement for all of the subprocesses. For Company B, two rows of the relationships between these requirements and subprocess were completed during step 2. The product development time and cost were able to be compiled due to the fact that the product development process had been completed by the company. This provided values for these relationships. The values shown in the matrix for these two requirements simply represent the percent of the total time and cost each subprocess required. on sees Lateral Processes ! m t; 70 05 a, 03 0 '.4­ a.) 6a-EI 6 a a. '' E a. '' 2 2011 a a R.0 f5_ a >,... 5­ 10 i t co 0 -5 Ca .& a -g"' p - Y) CO I­ CO 6, E. r a -­ P_ F " -1 c) a 4: m v 2 B co c m 0 ccs6i a $E ..:1,1 ..5 (4 8 E i2 2 *;:i E a. f, ..,,, o< This area shows the relationships between resources, requirements and deliverables and the lateral processes. .­ 12.0 12.0 16.0 8.0 8.0 8.0 8.0 3.0 $18,000 $12,000 $45,000 $12,000 $12,000 $12,000 $8,000 $8,000 o.o 0.0 0.0 0.0 0.0 0.0 0.0 1.0 1.c 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.0 1.0 1.0 1.0 1.0 0.0 1.0 1.c 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0 2.0 0.0 0.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 4.0 3.0 2.0 3.0 .... $9, 0( .13 L,.,(;. 1 a ,,,,,5; --7.) 1., m ... . . of oom Ci -§ tutees Benchmarks >.' CO 4 CCI r§ (,) 77? 77 i 1.0 1.0 80 - 85 Days 777 77 2.0 2.0 $239,000 - $289,000 1.0 i.c 1.0 10 . 1C NA NA 1.0 1.0 NA NA 2.0 2.0 2.0 1.0 1.0 2 4.0 2.0 2.0 NA NA 4 This area shows process benchmarks from previous projects or competition. 111 1 1 116_ Figure 18. Top center section of the process measurement matrix for the executive level of Company B. 41 In Figure 15, the subprocess, CPDP 1.1-B Competitive Market Analysis/Market Research/Engineering Assessment required 2% and 3% of the total product development process cost and time, respectively. Figures 19 and 20 show the distribution of the total product development process cost and time requirements for each subprocess. The lack of values for the remaining requirements leads to the next step in the program, step 4. .1 `73 0o O ri) CD S 0 CD CD C) 0 CD CD co CD 0 Cn 0 C) Cn Cn co C) O -1 'ZS Cr Cn CD S 'ZS 0 CD CD C) 0 0 0 5. 1, BCD co F)) CA 0 Ft CPDP 3.4-B CPDP 3.3-B CPDP 3.2-B CPDP 3.1-B CPDP 3.0-B CPDP 2.9-B CPDP 2.8-B CPDP 2.7-B CPDP 2.6-B CPDP 2.5-B CPDP 2.4-B CPDP 2.3-B CPDP 2.2-B CPDP 2.1-B CPDP 2.0-B CPDP 1.9-B CPDP 1.8-B CPDP 1.7-B CPDP 1.6-B CPDP 1.5-B CPDP 1.4-B CPDP 1.3-B CPDP 1.2-B CPDP 1.1 -B CPDP 1.0-B 0 o o ND 0 (3) a) O N -7 5 Percent Normalized Cost ',5; Cr -F 01-0) £17 1:1:J 0 a. 1-t CD CD CD CPDP 3.4-B CPDP 3.3-B CPDP 3.2-B CPDP 3.1-B CPDP 3.0-B CPDP 2.9-B CPDP 2.8-B CPDP 2.7-B CPDP 2.6-B 0 cD CPDP 2.4-B CPDP 2.3-B CPDP 2.2-B CPDP 2.1-B CPDP 2.5-B CA O 0 0-1 CPDP 2.0-B CPDP 1.9-B CPDP 1.8-B CPDP 1.7-B CPDP 1.6-B CPDP 1.5-B CPDP 1.4-B CPDP 1.3-B CPDP 1.2-B CPDP 1.1-B CPDP 1.0-B CD CD O cn fr­ CD O CD fD "° Poo O 1-0 0 1-11 0. C4 0 CD C) (7) 0,01­ O CD S CD -0 CD SD- I'll 0 0o 1 J 0o t.) 1, 0o a, 00 00 co 8 00 Percent Normalized Time 00 t 44 Step 4: Use PMM in Conjunction with the Analytical Hierarchy Process or a Simple Ranking Technique to Develop Relative Priorities The lack of information from the product development process has lead to the need to develop a method that would generate the needed values. By using the Are the required analytical hierarchy measurements present? process or a simple YES NO ranking technique the Is a high level of accuracy needed? Place in relationships between the external appropriate location on PMM remaining YES Use analytical hierarchy process to development measurements NO requirements and the Use Simple Rank Order Technique subprocesses can be derived. The flowchart followed in Use PMM to develop appropriate measurements/metrics for each subprocess in the product development process developing this section of the process measurement matrix Figure 21. Flowchart used to complete the section of the process measurement matrix the relates Company B's executive requirements to the subprocesses. can be seen in Figure 21. The first part of this step is to decide if the required measurements are present. In the case of Company B, the development cost and time were already known since the process had 45 been completed. This allowed for entry of each subprocess cost and time as a percentage of the total product development process. There were no measurements for the four other executive requirements of product unit cost, customer requirements realized, achieved customer satisfaction or percent earned market share. This directs us to the right hand side of the flow chart where another question must be asked, "Is a high level of accuracy needed?" The answer to this question will direct the individual to one of two processes: the analytical hierarchy process or the simple rank order technique. The analytical hierarchy technique is a method developed by Thomas L. Saaty to assess the priority of elements in decision making problems (Saaty, 1982). This method is of a higher mathematical basis and takes considerably longer than the simple rank order technique. The first step of the technique is to set up a matrix of the elements being compared with the criteria in the top left corner. This arrangement can Criteria Element 1 Element 2 Element 3 1 Element 1 1 Element 2 1 Element 3 Figure 22. The matrix developed during the first step of the analytical hierarchy process. be seen in Figure 22. When the same elements are compared, a "1" is entered into the matrix. Next, the question is asked, "How much more strongly does the element in the left column of the matrix affect, contribute to, or influence the criteria than does the element from the column on the top of the matrix?" This question is answered using the scale shown in 46 Explanation The two elements contribute an equal amount to the criteria One element has weak The evaluator's experience and importance over the judgment produce a other slight favor of one element over the other The evaluator's An element exhibits strong importance over experience and judgment strongly the other favor one element over Intensity of Importance Definition The elements are 1 equally important 3 5 the other 7 9 2, 4, 6, 8 Reciprocals One element is strongly favored and its dominance is demonstrated in practice There is definite An element demonstrates absolute evidence favoring one element over the other importance over the other A value is needed Intermediate values between two adjacent between two judgments judgments If element i has one of the preceding numbers assigned to it when compared with element Established importance of one element over another j, then j has the reciprocal value when compared with i Figure 23. The intensity of importance scale used when comparing one element to another. Figure 23. The appropriate number is then entered into the matrix 47 based on the answer determined by the individual. This is repeated for the entire matrix until all of the cells are filled in. It should be Criteria Element 1 Element 2 Element 3 mentioned that the value for 1/3 1/2 1 Element 1 element 2 compared to element 1 1/3 1 2 Element 2 Element 3 3 3 1 Figure 24. Analytical hierarchy process matrix with judgements made between elements 1, 2, and 3. would simply be the reciprocal of element 1 compared to element 2. An example of this matrix can be seen in Figure 24. This matrix represents all of the judgements made between elements 1, 2 and 3. The next step in the process is Criteria Element 1 Element 2 Element 3 1/7 1/9 1/5 Element 1 1/7 2/9 2/5 Element 2 Element 3 to normalize the matrix by 3/5 2/3 3/7 Figure 25. The analytical hierarchy matrix with all values normalized. totaling the values in each column and dividing each entry by the total. This will lead to the matrix seen in Figure 25. The final step of the analytical hierarchy process is to average the rows in the 1/5+1/9+1/7 =0.15 3 2/5+2/9+1/7 =0.25 3 3/5+2/3+3/7 0.6 matrix. The average is computed by adding the values in each row and dividing by the total number of elements. This final step is illustrated in Figure 26. The analytical 3 Figure 26. Average of the rows producing the overall relative priorities. hierarchy process thus provides the overall relative priorities for elements 1, 2 and 3 as 15, 33 and 50 percent, respectively. This process was used to evaluate the four remaining requirements for 48 Company B's process measurement matrix. The criteria for the analytical hierarchy process are each of the executive requirements. The subprocess would make up the elements. The overall relative priorities are then entered into the PMM and the matrix is then complete. This process took a large amount of time due to the extensive matrix calculations that were required. Since there were 27 subprocesses, a 27 x 27 element matrix had to be constructed and results in 351 judgements for each requirement. This method results in a total of 1404 judgements that have to be made to complete the matrix. Another less labor intensive method that could have been used is the simple rank order technique. The simple rank order technique takes a fraction of the time and produces very similar results compared to the analytical hierarchy process. This technique is conducted as follows: 1. Write all of the elements on individual pieces of paper. 2. Compare two elements at a time and ask the question, "Which element has a greater affect, contribution to, or influence on the property?" 3. Place the higher ranking element above the other. 4. Continue this process until all elements are placed in a rank order where each element increases in rank as you proceed up the list of elements. 5. Assign numerical values to the ranked elements. 49 This method was used to develop an overall priority rating for the product unit cost requirement so that a comparison between the two methods could be investigated. Figure 27 represents this comparison. Both methods produce the same results in terms of ranking although the numerical values were different. The top seven ranks had an average difference of 12.5%. The top half of the ranks (ranks 1 through 13) had an average difference of 14.5%. The overall average difference for all of the ranks was 19.5%. The analytical hierarchy process was used to produce the overall relative priorities for the four remaining executive requirements for Company B since a higher degree of accuracy was desired. The results of this exercise can be seen in Figures 28-31. Figure 31 illustrates the breakdown of the overall relative priorities for all subprocesses in terms of the six executive requirements. The overall relative priority (or importance) of the requirements is known for each one of the subprocesses. These values are directly entered into the PMM area that was left blank after step 4 of the program was completed. This area is highlighted by the green rectangle in Figure 15. The bottom two rows of this area give the average requirements importance rating and the average requirements quartile. These values provide the manager with immediate insight into which of the subprocesses has the greatest effect on the executive level requirements. This allows the manager to determine which of the executive level requirements are affected the 50 greatest during each subprocess of the product development process. Measurements can now be developed that ensure the executive requirements are achieved through product development. IS 2.6-B 2.1-B 2.2-B CPDP CPDP CPDP 2.5-B 3.1-B 2.4-B 2.0-B CPDP CPDP CPDP CPDP 1.0-B 1.8-B 3.5-B CPDP CPDP CPDP CPDP CPDP 1.6-B 3.6-B 1.4-B 1.1-B 2.9-B 2.8-B CPDP CPDP CPDP CPDP CPDP 2.7-B CPDP 1.2-B 1.7-B 2.3-B CPDP CPDP CPDP 1.3-B CPDP 3.3-B CPDP 1.9-B 1.5-B CPDP CPDP 3.4-B CPDP 3.0-B CPDP 3.2-B 8 8 E O Cji 0 Ul Overall Relative Priority ZS cn O 1.0-B 1.3-B 1.4-B 1.5-B 1.6-B 1.7-B 1.8-B 1.9-B 2.0-B CPDP CPDP CPDP CPDP CPDP CPDP CPDP CPDP 2.9-B 3.4-B CPDP 3.6-B CPDP 3.5-B CPDP CPDP 3.3-B CPDP 3.2-B CPDP 3.1-B CPDP 3.0-B CPDP CPDP 2.8-B CPDP 2.7-B CPDP 2.6-B CPDP 2.5-B CPDP 2.4-B CPDP 2.3-B CPDP 2.2-B CPDP 2.1-B 1.2-B CPDP t.) -F. Bil MIIIIMMINI is 11111 CPDP 1.1-B MI CPDP 0 0) 00 O .t`)' 6666600 0000000 Percent Overall Relative Priority CS C/) CD C) 0 CPDP 3.6-B CPDP 3.5-B CPDP 3.4-B CPDP 3.3-B CPDP 3.2-B CPDP 3.1-B CPDP 3.0-B CPDP 2.9-B CPDP 2.8-B CPDP 2.7-B CPDP 2.6-B CPDP 2.5-B CPDP 2.4-B CPDP 2.3-B CPDP 2.2-B CPDP 2.1-B CPDP 2.0-B CPDP 1.9-B CPDP 1.8-B CPDP 1.7-B CPDP 1.6-B CPDP 1.5-B CPDP 1.4-B CPDP 1.3-B CPDP 1.2-B CPDP 1.1-B CPDP 1.0-B 111 0 oo ^)::­ %I.Pitt` riPd6tt, oo tD 0 0 41 0 P 0 0 0 CO 8 00 00 1)' Percent Overall Relative Priority 17S 171 CD Crl 0 o-t CD o ("D 0 O -cj 0 p., CD CPDP 3.6-B CPDP 3.5-B CPDP 3.4-B 0-t CD CPDP 3.3-B CPDP 3.2-B CPDP 3.1-B CPDP 3.0-B CPDP 2.9-B CPDP 2.8-B rr CD CD rD 1--) CPDP 2.7-B CPDP 2.6-B -t CD CPDP 2.4-B CPDP 2.5-B C/) CPDP 2.3-B CPDP 2.2-B CPDP 2.1-B CPDP 2.0-B 0 cn P co 0 0 CD CPDP 1.8-B 0 CPDP 1.9-B CPDP 1.7-B CPDP 1.6-B CPDP 1.5-B CPDP 1.4-B CPDP 1.3-B CPDP 1.2-B CPDP 1.1-B CPDP 1.0-B n Ell 0 0o 00 ND 00 0 P 0 00 00 00 00 Percent Overall Relative Priority ( CD cn 0 0 co ,tr* 15- pi) co CD (') O 1 (/) CD O CA) 0 1-1 C4 SS 0 0 01 ij . co cr) C CD co -t CCD 5-F s CPDP 3.4-B CD CPDP CPDP 3.5-B CPDP 3.3-B 0 1-1 CPDP 3.1-B CPDP 3.0-B CPDP 2.9-B CPDP 2.8-B CPDP 2.7-B CPDP 2.6-B CPDP 2.5-B CPDP 2.4-B CPDP 2.3-B CPDP 2.2-B CPDP 3.2-B CD 117) CPDP 2.1-B CPDP 2.0-B CPDP 1.9-B CPDP 1.8-B CPDP 1.7-B CPDP 1.6-B CPDP 1.5-B CPDP 1.4-B CPDP 1.3-B CPDP 1.2-B CPDP 1.1-B CPDP 1.0-B O O O O O N O O O O O O O co O 0 8 O O Percent Overall Relative Priority CD CD 1-t CD 01 CD-t 0-t CD ry CD CD 21) O I'd 1-1-1 O (/) w C) 0 °CI 0 + CD CD ,tr+ O po rD co ra. O < 0- 0 O 'CS CD lb O O 01 oxj Process Priorities of All Executive Requirements 50.00 45.00 40.00 35.00 30.00 25.00 20.00­ 15.00 10.00 5.00 0.00 I I 0? I I CO CC1 O I I CO CO co CC L). a. n. U 0. a. U U a. a. a. 0. U 0. 0. Ca Ca U U 0. U Process Product Development Cost E Product Unit Cost Customer Requirements Realized Product Development Time Achieved Customer Satisfaction 0 Earned Market Share Figure 32. Plot of the overall relative priorities for all of the executive requirements for each subprocess in the product development process of Company B. 57 Step 5: Construct the Appropriate Measurements for Each Subprocess in the Product Development Process Now that the relative priorities of each subprocess have been identified, suitable measurements can be developed. The development of Sheet CPDP 1.0-B Identify Concept or Idea Phase: Marketing Description: An idea or concept is identified by the company. Purpose: To initiate the product development cycle and start the design process Personnel Involved: Marketing, company owner, product development director. Documentation Involved: Notes or sketches about the product, idea, or concept. Output: Product description, idea, or concept. Assessment: Information Required: Market and technological data on the product being considered. Notes: Research is initiated from two primary sources: Market pull Occurring as a natural outcome of customer or user aspirations, when the technology tends to be behind the market; Technology push The result of new technology, creating new markets, when the market is behind the technology. (Pugh, 1989) Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Development Time Product Development Cost Earned Market Share Achieved Customer Satisfaction Customer Requirements Realized Product Unit Cost Score 3.01 2.05 Example Measures # of Days Spent in Process $ Spent on Process 1.16 1.14 1.09 1.03 Figure 33. A completed process information sheet with the relative priorities of the executive level requirements and example measurements. 58 the appropriate measurements is based on the relative priorities for the requirements of each subprocess. The relative priorities are sorted from the highest to lowest and entered into the corresponding process information sheet. For example, the ratings of the requirements for CPDP 1.0-B Identify Concept or Idea are shown in Figure 33. The requirements are listed from the one with the highest priority down to the one with the lowest priority. From these values it appears that two of the executive requirements are affected more than the other four. The product development time and cost are the requirements with the highest scores. This suggests that two important quantities that should be measured are the time spent in the process and the amount of capital used during the process. This procedure is repeated for each one of the subprocesses. By measuring quantities that correlate to the requirements with the highest priority rankings, the manager is ensuring that the executive level requirements will be met during the product development process. 59 DISCUSSION /RESULTS The program presented has generated a detailed product development process model. This model could be the basis of the product development process in any small manufacturing company. The concurrent engineering model was completed based on three main resources. First, the mechanical design process proposed by Ullman (1997). Second, a knowledge of the key principles involved in a concurrent engineering based process. And third, the documentation of the product development process in two small manufacturing companies. The combination of these three components has allowed for the development of a concurrent engineering based product development process model. This model can be used by small manufacturing companies for comparison and contrast of their current process once it has been successfully documented. The use of the theory of constraints and the revised theory of constraints helps to further define the understanding and description of the product development process. The theory of constraints promotes a better understanding of the information flow between the processes. It also highlights the requirements needed before the next step in the process can be started. The revised theory of constraints defines all of the resources, requirements, and deliverables that are employed in the 60 product development process. This information is used in the process measurement matrix. This study represents the first attempt at using the process measurement matrix (PMM). The PMM required a tremendous effort to complete but resulted in information the product development process manager would find very useful. This structure allows the manager to visualize the resources, requirements, and deliverables that are allocated by upper management. It also informs them of the internal processes he or she is directly responsible for. This promotes alignment of the external and internal process elements. The correct use of management structures is also encouraged. One of the greatest attributes of the PMM is developed in step four of the program. By using one of the ranking techniques, the manager is able to see how the executive requirements are affected by each subprocess. When a manager is involved in a certain phase of the product development process, they would know which of the executive requirements are being affected the most during the phase. Most importantly the manager would have an indication of what key measurements should be taken during the phase to ensure the executive requirements are met. Company B had no measurements in place except for the executive level requirements on the product development process. Now that the product development manager knows which subprocesses have the greatest influence on the executive level requirements, measurements 61 can be designed that ensure these requirements are fulfilled. From Figure 28 it is clear that the processes that have the greatest effect on product unit cost occur close to production. The Design Approval, Production and Production Approval processes should have measurements in place that will ensure that this executive level requirement is satisfied. The customer requirements realized chart shown in Figure 29 indicates that the Product Specifications Developed, Concept Approval and Design Approval processes are the most critical. Measurements are needed during these processes to make sure that the customer requirements are realized in the product. The achieved customer satisfaction chart shown in Figure 30 points to Concept Approval, Design Approval and Production Approval as the most important processes during product development. These processes should have measurements designed to guarantee that this requirement is met. Figure 31 illustrates that the percent earned market share requirement is greatly influenced by the Concept Approval, Design Approval and Production Approval processes. These processes will need to be adequately measured to make certain this requirement is fulfilled. From Figure 19 the greatest cost during product development occurs when the Prototype Build, Production and Production Approval processes are completed. A measurement of cost during these processes will help ensure that this executive level requirement is obtained. Figure 20 shows that the most time spent during product development occurs 62 during the detail design phase. During this phase, the time used during each process should be measured to make certain that this executive level requirement is satisfied. 63 CONCLUSION This research represents one of the first attempts at developing a concurrent engineering based product development process for small manufacturing firms that employs process measurement techniques. With this program, a small company could effectively set up a concurrent engineering based product development process and develop a group of suitable measurements to ensure that the process is successful. Through this research, the following objectives were achieved: This project developed a concurrent engineering based product development process that small manufacturing companies could use. A new theory of product design process measurement was used to identify the process attributes which are common to the process. From these attributes the measurements necessary to ensure a successful product development process were identified. There are three main areas that future work on this project could include. The first area is the process measurement matrix (PMM). To a product development manager, especially in a small manufacturing company, the matrix is overwhelming. Future research should involve examining the PMM and determining what key information it provides. Then a smaller version of the PMM could be developed for use in this program. The completion of the matrix takes a tremendous amount of 64 time and effort. Small manufacturing companies simply cannot afford to spend their resources trying to complete this matrix. Second, the ranking techniques could be investigated further. These techniques could be used to show the most important subprocesses and then provide the measurements for them. This would shorten the program considerably. From Figure 27 there appears to be three, maybe four, different tiers of priority ratings generated by the analytical hierarchy process. If the manager took only the top tiers and developed measurements for only those subprocesses, the number of measurements would be reduced. This program is not meant to produce a large number of measurements for the product development manger to make. It is designed to identify what subprocesses are most significant in satisfying the executive level requirements and then allow the manager to design measurements that will ensure those requirements are met. The last area for future work could involve developing this program into a computer software package. If all of the steps used in this research were integrated into a single computer package, the entire five step process could be done in much less time. This research required the use of several different software packages. All of these software packages could be integrated into one program that incorporates all the needed functions with straightforward data entry and a graphical user interface. This would make the five step program much easier to complete and more likely to be embraced by industry. 65 BIBLIOGRAPHY Allen, K., Carlson-Skalak, S.E. 8v Villadsen, 0. (1997). Adopting Concurrent Engineering at Comdial. submitted to Interfaces. Carlson-Skalak, S. 86 Kemser, H. (1997). Concurrent Engineering Applied to Product Development in Small Companies. submitted to Research in Engineering Design. Chapman, W.L., Bahill, A.T., 86 Wymore, A.W. (1992). 7.6 Concurrent Engineering., Engineering Modeling and Design (1 ed., pp. 325-328). Boca Raton: CRC Press. Clausing, D. (1994). Total Quality Development: A Step-By-Step Guide to World-Class Concurrent Engineering. New York: ASME Press. Cleetus, K.J. (1992). Definition of Concurrent Engineering. CERC Technical Report Series Research Note, CERC-TR-RN-92-003. Dettmer, W.H. (1998). Breaking the Constraints to World Class Performance. Milwaukee: ASQ Quality Press Huthwaite, B. (1993). How to Capitalize on Concurrent Engineering: Do's and Don'ts of Concurrent Engineering. Design News, 49(13), 71-74. Institute for Defense Analysis (1986). The Role of CE in Weapons System Acquisition . Report R-338. Jo, H.H., Parsaei, H.R., & Sullivan, W.G. (1993). Principles of Concurrent Engineering. In Parsaei, H.R. 86 Sullivan, W.G. (Eds.), Concurrent Engineering: Contemporary Issues and Modern Design Tools (1st ed., pp. 3-23). London: Chapman 136 Hall. Lake, J. (1992). Implementation of Multi-Disciplinary Teaming. Engineering Management Journal, 4(2), 9-13. Machlis, S. (1990). Management Changes Key to Concurrent Engineering. Design News. 46(16), 32-37. Saaty, T.L. (1982). Decision Making for Leaders. Belmont, CA: Wadsworth, Inc. 66 Tricamo, S.J. (1993). How to Capitalize on Concurrent Engineering: The CE Learning Factory. Design News, 49(13), 80-83. Turino, J.L. (1992). Managing Concurrent Engineering: Buying Time to Market (1st ed.). New York: Van Nostrand Reinhold. Ullman, D.G. (1997). The Mechanical Design Process. New York: McGraw-Hill. U.S. Census Bureau (1995). United States The Number of Firms, Establishments, Employment. Annual Payroll, and Estimated Receipts by Industrial Division and Enterprise Employment Size for 1995. [on line]. 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Ph.D. Thesis, Oregon State University, Corvallis, Oregon, September 1999. 67 APPENDICES Appendix A: Documentation of Company As Old Product Development Process C .cn Identify Market Opportunity See Sheet BCE 1.0 C C co 0 0 ffi Product Projections Made See Sheet BCE 1.8 Develop Product Specifications See Sheet BCE 1.1 O Generate Concept Sketches See Sheet BCE 1.2 Prototype Drawings Developed See Sheet BCE 1.3 Prototype Built See Sheet BCE 1.4 4 Prototype Testing See Sheet BCE 1.5 8 Manufacture Scheduling See Sheet BCE 1.9 Production See Sheet BCE 2.0 Modify Prototype CD Final Design Review and Verification See Sheet BCE 1.7 Detail Drawings Developed See Sheet BCE 1.6 Post Production Review See Sheet BCE 2.1 Customer Support & Service See Sheet BCE 2.2 Modify Product as needed Continued top of next column -+ Figure A.1. Flowchart of company A's old product development process. 69 Sheet BCE 1.0 Identify Market Opportunity Description: The market opportunity for a product is identified from three primary sources: Customers who use a product and offer suggestions. Dealers who sell the products and offer suggestions. From ideas in "idea file" that the owner has had at one time. Purpose: To intitialize the product development cycle and start the design process. Personnel Involved: Company owner and engineer. Documentation Involved: Notes and sketches for ideas that have been started from customer and dealer suggestions as well as ideas that the owner has had. Output: Written notes and sketches. Notes: 70 Sheet BCE 1.1 Develop Product Specifications Description: Product specifications are generated based on ideas from customers, dealers, and company owner. Purpose: To produce detailed product specifications allowing for concept generation. Personnel Involved: Company owner and engineer. Documentation Involved: Notes and sketches for ideas that have been started from customer and dealer suggestions as well as ideas that the owner has had. Output: Written product specifications. Notes: 71 Sheet BCE 1.2 Generate Concept Sketches Description: Concept sketches are generated based on the product specifications. Purpose: To produce concept sketches that allow for the selection of a prototype. Personnel Involved: Company owner and engineer. Documentation Involved: Notes and sketches for ideas that have been started from customer and dealer suggestions as well as ideas that the owner has had. Written product specifications. Output: Concept sketches. Notes: 72 Sheet BCE 1.3 Prototype Drawings Developed Description: A concept is selected for further development as a prototype. The selcted prototype then has layout drawings developed to the extent that the prototype can be manufactured. Purpose: To provide drawings that give enough detail to allow for prototype manufacture. Personnel Involved: Company owner, engineer, purchasing agent, vendors. Documentation Involved: Notes and sketches for ideas that have been started from customer and dealer suggestions as well as ideas that the owner has had. Written product specifications. Concept sketches. A Bill of Materials (BOM) is generated for the prototype. Part numbers are generated or assigned (if using an existing part). Approved vendor list and purchase orders are used. Output: Layout drawings for the selected prototype. Notes: 73 Sheet BCE 1.4 Prototype Built Description: The selected prototype is built as shown on the layout drawings. Purpose: To develop the selected prototype into a workable product. Personnel Involved: Company owner, engineer, and some manufacturing personnel. Documentation Involved: Written product specifications and prototype layout drawings. Output: Workable prototype that meets product specifications. Notes: 74 Sheet BCE 1.5 Prototype Testing Description: The selected prototype has been built and needs to be tested for performance in controlled and uncontrolled environments. Purpose: To allow for refinement of pre-production prototype by in-shop, dealer, and customer testing. Personnel Involved: Company owner, engineer, selected dealers and customers. Documentation Involved: Written product specifications, prototype layout drawings, bill of materials. Output: Refined pre-production prototype that is ready for production. Notes: Engineering Change Order (ECO) is done verbally. 75 Sheet BCE 1.6 Detail Drawings Developed Description: The selected prototype has been tested and the necessary engineering change orders completed. Detail drawings are developed for the production model. Purpose: To develop detail drawings that reflect recent changes in the prototype due to testing results and to provide manufacturing detail drawings for production purposes. Personnel Involved: Company owner, engineer. Documentation Involved: Written product specifications, prototype layout drawings, bill of materials. Notes taken by the owner or engineer that indicate any changes that were made to the prototype. Output: Production ready detail drawings. Notes: 76 Sheet BCE 1.7 Final Design Review and Verification Description: The selected prototype has been tested and the necessary engineering change orders completed. Detail drawings have been developed for the production model. The owner and engineer do a final review of the product to ensure that the required changes found by testing have been implemented. Purpose: To do a final check of the product before full scale production begins. Personnel Involved: Company owner, engineer. Documentation Involved: Written product specifications, prototype layout drawings, bill of materials, detail drawings. Engineering Change Order (ECO) is done verbally. Any notes taken by the owner or engineer that indicate any changes that were made to the prototype. Output: Production ready detail drawings. Notes: 77 Sheet BCE 1.8 Product Projections Made Description: The final design review and verification has been completed to ensure that the product is ready for production. Projections are made for the number of units to be manufactured. Purpose: To project the number of units that will be sold and allocate the needed resources to ensure that the projected number is produced in the required time frame. Personnel Involved: Company owner. Documentation Involved: Past years sales volume documents. Output: Projection sheet showing actual number of units to be built. Notes: Largely based on "gut feel" of the market for the product involved. 78 Sheet BCE 1.9 Manufacture Scheduling Description: Projections have been made for the number of units to be manufactured. The manufacture of the product is scheduled to ensure that the product is ready on the required ship date. Purpose: To allocate the needed resources to ensure that the projected number is produced in the required time frame. Personnel Involved: Company owner, engineer, manufacturing personnel, assembly personnel, purchasing agent, vendors. Documentation Involved: Bill of materials, detail drawings, purchase orders, weekly demand sheet. Output: Schedule for production. Notes: Scheduling of manufacture is done verbally through weekly meetings that involve the personnel mentioned above. 79 Sheet BCE 2.0 Production Description: Projections have been made for the number of units to be manufactured. The manufacture of the product has been scheduled to ensure that the product is ready on the required ship date. Production is now ready to begin. Purpose: To manufacture the projected number of units. Personnel Involved: Manufacturing personnel, assembly personnel, purchasing agent, vendors. Documentation Involved: Bill of materials, detail drawings, purchase orders, weekly demand sheet, factory worksheet, material transfer forms, assembly worksheet, invoice for sale. Output: Manufacture of product. Notes: 80 Sheet BCE 2.1 Post Production Review Description: Production of the product is in progress and the first units are coming off of the assembly line. These products are checked to ensure that they have been made to specification and that the product functions as expected. Post production review also includes any design changes made after the initial products have been shipped. Purpose: To ensure that the product is being manufactured as expected and that the production models behave the same as the prototype. To make improvements in the existing design of the product. Personnel Involved: Company owner, engineer, manufacturing personnel, assembly personnel, purchasing agent, vendors, dealers, and customers. Documentation Involved: Written product specifications, bill of materials, detail drawings, purchase orders, weekly demand sheet, factory worksheet, material transfer forms, assembly worksheet, invoice for sale. Output: Shipping of product to dealers and customers, changes in the detail drawings for production if a change is design occurs. Notes: 81 Sheet BCE 2.2 Customer Support & Service Description: The product has been shipped to customers and is in service. The company provides support of it's products and service of all serviceable parts. Purpose: To provide customer support and service on products. Personnel Involved: Company owner, engineer, purchasing agent, customer service representative, vendors, dealers, and customers. Documentation Involved: Purchase orders, customer file, detail drawings, bill of materials, vendor list. Output: Service and support of products. Notes: Appendix B: Documentation of Company B's Old Product Development Process cr) t2 a8 Identify Market Opportunity See Sheet BCE 1.0 a Develop Product Specifications See Sheet BCE 1.1 0 -per Prototype Drawing Layout See Sheet BCE 1.3 4 Modify Prototype 0 a Customer Support & Service See Sheet BCE 2.1 0 Prototype Testing See Sheet BCE 1.5 Final Drawings Developed See Sheet BCE 1.6 Manufacture Scheduling See Sheet BCE 1.9 Production See Sheet BCE 2.0 Modify Prototype Drawings 0) Final Product Specifications Developed See Sheet BCE 1.7 Pilot Production Run See Sheet BCE 1.8 Generate Concept Sketches See Sheet BCE 1.2 Prototype Built See Sheet BCE 1.4 r Vt Modify Product as needed 141 Continued top of next column Figure B.1. Flowchart of company B's old product development process. 83 Sheet BCE 1.0 Identify Market Opportunity Description: The market opportunity for a product is identified by the owner. The owner is a contractor who sees a need for products from a first hand point of view. He wants to provide all the equipment needed for contractors to successfully complete their jobs. Purpose: To intitialize the product development cycle and start the design process. Personnel Involved: Company owner and engineer. Documentation Involved: Notes and sketches for ideas that have been started from concepts that the owner and engineer have had. Output: Written notes and sketches placed in a design notebook or project file. Notes: Assesment: This stage of product development initially worked since the owner had come from the paving business and saw the need for a product on a first hand basis. The owner then started a new product design based on what he thought the market would respond to instead of researching the market. He no longer had the first hand knowledge that he had while working as a paving contractor and the market did not respond to this product as it had with the previous product. Process Measurement Resources: Requirements: Deliverables: 84 Sheet BCE 1.1 Develop Product Specifications Description: Product specifications are generated based on ideas from contractors, engineer, and company owner. Purpose: To produce detailed product specifications allowing for concept generation. Personnel Involved: Company owner and engineer. Documentation Involved: Notes and sketches for ideas that have been started from concepts that the owner and engineer have had. Output: Written product specifications placed in product file. Notes: Assesment: The product specifications were developed by the owner with little involvement from the engineering department. Most of these specifications were communicated verbally by the owner to the engineering department with little written documentation. No other areas were represented in the defining of product specifications besides those given by the owner and engineering department. This stage worked except for the fact that important specifications could be lost due to lack of documented specificatons. Process Measurement Resources: Requirements: Deliverables: 85 Sheet BCE 1.2 Generate Concept Sketches Description: Concept sketches are generated based on the product specifications. Purpose: To produce concept sketches that allow for the selection of a prototype. Personnel Involved: Company owner and engineer. Documentation Involved: Notes and sketches for ideas that have been started from concepts that the owner and engineer have had. Written product specifications. Output: Concept sketches. Notes: Assesment: When product specifications were written down, they were used to help generate concept sketches. Most often, the owner already had a design in mind and this design was passed on to the engineering department. Concept sketches then represented a design that the owner had created with engineering refining the design to make it manufacturable. This stage worked in the sense that the owner was able to pick the concept he liked from the start but the design space was very limited. Process Measurement Resources: Requirements: Deliverables: 86 Sheet BCE 1.3 Prototype Drawings Layout Description: A concept is selected for further development as a prototype. The selcted prototype then has layout drawings developed to the extent that the prototype can be manufactured. This step included laying out the major components of the product. Purpose: To provide drawings that give enough detail to allow for prototype manufacture. Personnel Involved: Company owner, engineer, manufacturing personnel, some vendors. Documentation Involved: Notes and sketches for ideas that have been started from concepts that the owner and engineer have had. Written product specifications. Concept sketches. A Bill of Materials (BOM) is generated for the prototype. Part numbers are generated or assigned (if using an existing part). Output: Layout drawings for the selected prototype. Notes: Assesment: The concept the owner had generated was refined by the engineering department to produce production quality drawings. These production quality drawings were hand sketches a lot of the time. Sometimes the parts were produced before the drawings were produced. There was a more "hands on" atmosphere than one that promoted proper documentation of the prototype layout. The thinking here was that some drawings could be produced after the prototype had been produced. This didn't work because many changes made to the prototype from the original design went undocumented and therefore the reasons for the changes undocumented. Process Measurement Resources: Requirements: Deliverables: 87 Sheet BCE 1.4 Prototype Built Description: The selected prototype is built as shown on the layout drawings. Purpose: To develop the selected prototype into a workable product. Personnel Involved: Company owner, engineer, and some manufacturing personnel. Documentation Involved: Written product specifications and prototype layout drawings. Output: Workable prototype that meets product specifications. Notes: Assesment: This stage worked but as mentioned previously, there was little formal documentation for prototype construction and what documentation existed was poorly controlled. Most of the information was communicated verbally and the prototype was constructed using some hand drawn sketches. Process Measurement Resources: Requirements: Deliverables: 88 Sheet BCE 1.5 Prototype Testing Description: The selected prototype has been built and needs to be tested for performance in controlled and uncontrolled environments. Purpose: To allow for refinement of pre-production prototype by in-shop and customer testing. Personnel Involved: Company owner, engineer, and selected customers. Documentation Involved: Written product specifications, prototype layout drawings, bill of materials. Output: Refined pre-production prototype that is ready for pilot production run. Notes: Company B built testing equipment to test components being used in the products. This way they did their own reliability testing. Once the prototype had been successfully tested by a customer, the prototype would be broken down and the individual components sent back to the vendors for inspection. The vendors would then let Company B Mfg. know how the product was wearing and if any problems were found. Once a suitable component was found, they stuck with it. Assesment: Prototype testing did work as part of the product development process when it was used. On the first product produced at Company B, prototype testing was very successful and contributed important information about the design. In the second product produced at Company B, little to no in shop prototype testing was done before the customers starting receiving units. This happen because the owner had made promises to customers in terms of product delivery and there was no time to fully test the equipment before it was released. Process Measurement Resources: Requirements: Deliverables: 89 Sheet BCE 1.6 Detail Drawings Developed Description: The selected prototype has been tested and the necessary changes completed. Detail drawings are developed for the production model. Purpose: To develop detail drawings that reflect recent changes in the prototype due to testing results and to provide manufacturing detail drawings for production purposes. Personnel Involved: Company owner, engineer. Documentation Involved: Written product specifications, prototype layout drawings, bill of materials. Notes taken by the owner or engineer that indicate any changes that were made to the prototype. Output: Production ready detail drawings. Notes: Assembly drawings were sketched by hand. Assesment: This stage worked when it was successfully completed. To date, some parts do not have detail drawings and are literally in the minds of the people who manufacture them. This led to no formal documentation of part drawings and no way for engineering to communicate changes to manufacturing except verbally and through hand drawn sketches. Process Measurement Resources: Requirements: Deliverables: 90 Sheet BCE 1.7 Final Product Specifications Developed Description: The selected prototype has been tested and the necessary changes have been made. Detail drawings have been developed for the production model. The owner and engineer produce final product specifications to ensure that the required changes found by testing have been implemented. Purpose: To produce final product specifications before full scale production begins. Personnel Involved: Company owner, engineer. Documentation Involved: Written product specifications, prototype layout drawings, bill of materials, detail drawings, purchase orders. Notes taken by the owner or engineer that indicate any changes that were made to the prototype. Output: Production ready detail drawings and final product specifications. Notes: Assesment: This stage worked but was actually done throughout the entire design process and well into the product life cycle. Formal methods to communicate changes such as an engineering change orders (ECO's) or engineering chage notice (ECN's) were used at one time but were quickly discarded due to lack of discipline and time constraints. This left changes in the initial product specifications to the produce final product specifications to verbal communication with the owner and the engineering department. Process Measurement Resources: Requirements: Deliverables: 91 Sheet BCE 1.8 Pilot Production Run Description: The final detail drawings and product specifications have been completed to ensure that the product is ready for production. A pilot production run is completed to proof the drawings and tolerances. Any fixtures and jigs that will be required for manufacture are developed and designed. Purpose: To ensure that the projected number of products are produced in the required time frame and that the shop is capable of producing the products as specified. Personnel Involved: Company owner, engineer, purchasing and manufacturing personnel. Documentation Involved: Production ready detail drawings, final product specifications, structured bill of materials change and purchase orders. Output: Working prototype. Notes: All components that are purchased out of shop are designated by the engineer and a list of required components along with the appropriate vendors is delivered to the purchasing department. The structured bill of materials change worked like an engineering change order. Assesment: This stage worked and was used as a tool to find any problems in manufacturing that have been overlooked and most likely undocumented in the product development process. This stage could have been skipped if the earlier stages of the product development process would have been completed successfully and properly documented. In the long run, this stage probably cost the company more time, money and other resources than having followed and completed earlier steps in product development. Process Measurement Resources: Requirements: Deliverables: 92 Sheet BCE 1.9 Manufacture Scheduling Description: Projections are made for the number of units to be manufactured. The manufacture of the product is scheduled to ensure that the product is ready on the required ship date. Purpose: To allocate the needed resources and ensure that the projected number is produced in the required time frame. Personnel Involved: Company owner, engineer, manufacturing personnel, assembly personnel, purchasing agent, vendors. Documentation Involved: Bill of materials, detail drawings, purchase orders. Output: Schedule for production. Notes: Assesment: This stage worked to ensure that the products were available on the required ship date. The only problem was that uncompleted steps early in the product development process lead to a number of problems with these units. This was not so much a problem with Company B's first product as it was with their second product. This was due to unrealistic delivery times determined by the company owner. Process Measurement Resources: Requirements: Deliverables: 93 Sheet BCE 2.0 Production Description: Projections have been made for the number of units to be manufactured. The manufacture of the product has been scheduled to ensure that the product is ready on the required ship date. Production is now ready to begin. Purpose: To manufacture the projected number of units. Personnel Involved: Manufacturing personnel, assembly personnel, purchasing agent, vendors. Documentation Involved: Bill of materials, detail drawings, structured bill of material change and purchase orders. Output: Manufacture of product. Notes: Assesment: This stage seemed to work fine until problems began to appear due to lack of proper documentation in the earlier stages of product development. Missing drawings, product specifications, and assembly problems, to name a few, contributed to a loss of company resources. Process Measurement Resources: Requirements: Deliverables: 94 Sheet BCE 2.1 Customer Support & Service Description: The product has been shipped to customers and is in service. The company provides support of it's products and service of all serviceable parts. Purpose: To provide customer support and service on products. Personnel Involved: Company owner, engineer, purchasing agent, vendors, and customers. Documentation Involved: Purchase orders, detail drawings, bill of materials, vendor list, customer files, service sheet and owner's manuals. Output: Service and support of products. Notes: Company B provides a 12 month warranty on parts and labor for its products. Assesment: This stage of product development is the most refined since the company spent most of it's time involved with this stage, especially with the second product. All of the shortcuts taken earlier on in the product development process are now costing the company time and money. The company does gain respect though as they stand by their product and do whatever it takes to satisfy the customer. This state of mind is still present today as parts are specially made for the few customers who are using the product that failed. The owner felt that he had a moral obligation to provide the needed service to all of his customers, no matter what the cost. Process Measurement Resources: Requirements: Deliverables: Concurrent Product Development Process at Company B, Level B Marketing Product Definition Detail Design CPDP 1.3-B Customer Requirements Defined Through Focus Groups CPDP 2.2.8 Prototype Virtual Part Modeling (Material Selection, Manufacturing Process Selection, Buy vs. Make) Production Post Production CPDP 3.1-B CPDP 3.5-B Customer CPDP 1.0-B Identify Concept or Idea 1') a Fu Front End" Manufacturing Scheduling CPDP 1.1-B 7-9 Competitive Market Analysis/ Market Research/ Engineering Assessment .j,' g / a R ,. ,r, ',..t, ffi CPDP 2.3-B CPDP 1.4 -B Prototype Virtual Assembly (Fit, Form, Function Test) Complete PrePlanning Matrix -< CPDP 3.2-B Production m / DP 1.2-8 t Approv ' ,r, -,1 K :11 CPDP 1.15-8 CPDP 3.3-B Conduct Quality Function Deployment Based On Refined Customer Requirements Production Model Performance Review CPDP 2.4-B Prototype Detail Developed o --g° g . i ,,, / CPDP 1.6-B Program Schedule Estimated CPDP 3.44 Production royal? CPDP 2.5-B Prototype Build -C i3 rn 11 '1' fc/ 4' CPDP 1.7-B Product Specifications Developed CPDP 2.6-8 Prototype Testing (Functional) ZO 1 CPDP 1.8-B Program Schedule Developed I CPDP 1.9-B Concepts Generated Z O CPDP 2.0-B Evaluate Concepts CPDP 2.7-B Bill of Materials Completed i CPDP 2.8-B Assembly Instructions Completed CPDP 2.9-B Technical Publications Developed CPDP 2.1-B Concept Approval? C1.13.031 Design Appr O Service and Support \/ ZO CPDP 3.6-8 Product Retirement 96 Sheet CPDP 1.0-B Identify Concept or Idea Phase: Marketing Description: An idea or concept is identified by the company. Purpose: To initiate the product development cycle and start the design process Personnel Involved: Marketing, company owner, product development director. Documentation Involved: Notes or sketches about the product, idea, or concept. Output: Product description, idea, or concept. Assessment: Information Required: Market and technological data on the product being considered. Notes: Research is initiated from two primary sources: Market pull Occurring as a natural outcome of customer or user aspirations, when the technology tends to be behind the market; Technology push The result of new technology, creating new markets, when the market is behind the technology. (Pugh, 1989) Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Development Time Product Development Cost Earned Market Share Achieved Customer Satisfaction Customer Requirements Realized Product Unit Cost Score 3.01 2.05 1.16 1.14 1.09 1.03 Example Measures # of Days Spent in Process $ Spent on Process 97 Sheet CPDP 1.1-B Competitive Market Analysis/Market Research/Engineering Assessment Phase: Marketing Description: Competitive market analysis/market research/engineering assessment is performed on the previously identified idea or concept or the competitive market analysis/market research leads to an idea or concept for a new product. Purpose: To gain insight into the market opportunity and determine the best way to develop a good market position. Personnel Involved: Marketing, company owner, product development director. Documentation Involved: Notes, sketches and graphs that show the required marketing information, engineering assessment or to find a market that a new product could be developed in. Output: Displays, charts, graphs and notes that give useful comparisons and contrasts the market that the new product will be in. Assessment: Information Required: Market segment (e.g., manufacturing industries, can be segmented based on SIC codes), market sub-segment (e.g., electronics), target customer (the customers who are expected to either pay for or use the product, e.g., V.P. of Engineering), the person (by name) and the company (by name), the geographical region (sorted for distribution channels). (Salomone, estimate of material 1995) Company price points, market cycles, competitors. Project objective, and labor costs, estimate of development time, development risks, development options, design criteria. Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Development Time Product Development Cost Earned Market Share Achieved Customer Satisfaction Customer Requirements Realized Product Unit Cost Score 3.01 2.05 1.95 1.86 1.64 1.25 98 Sheet CPDP 1.2-B Project Approval? Phase: Marketing Description: A decision must be made to continue or discontinue development of the current product. Purpose: To decide if it is in the company's best interest to develop the product and initiate the product definition phase of the product development process. Personnel Involved: Marketing, company owner, product development director. Documentation Involved: All of the displays, charts, graphs, notes and any other forms of market information that could influence the decision. Output: The decision to proceed or to stop development of the current product. Assessment: Information Required: Marketing Information Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Earned Market Share Product Development Time Achieved Customer Satisfaction Product Unit Cost Product Development Cost Customer Requirements Realized Score 2.05 1.81 1.57 1.41 1.37 1.18 99 Sheet CPDP 1.3-B Customer Requirements Defined Through Focus Groups Phase: Project Definition Description: The customer requirements for the new product are defined through a series of internal and external focus group meetings. First, a focus group is done with internal customers such as marketing, engineering, manufacturing and sales. Then a focus group is done with external customers such as the end user. Finally, a focus group is done with the internal customers discussing the results of the focus group done with external customers and starting the pre-planning matrix. Purpose: To develop the customer requirements and ensure a customer driven product. Personnel Involved: Company owner, product development director, production manager, marketing, engineering, manufacturing, sales, service manager, and the end user. Documentation Involved: Notes, ideas, surveys and sketches from the focus groups. Output: Refined customer requirements. Assessment: Information Required: Target customers , customer requirements. Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Customer Requirements Realized Achieved Customer Satisfaction Earned Market Share Product Unit Cost Product Development Cost Product Development Time Score 8.47 6.88 6.22 4.75 4.11 3.01 100 Sheet CPDP 1.4-B Complete Pre-Planning Matrix Phase: Project Definition Description: A pre-planning matrix is completed that captures the customer's requirements and allows the product development team to evaluate them. Purpose: To ensure that product management will direct efforts and studies which define or confirm the customer requirements and produce a customer driven product. Personnel Involved: Marketing, sales, product development director, engineering, production manager, manufacturing, service manager, company owner. Documentation Involved: Notes from marketing and focus group studies. Output: A completed pre-planning matrix with refined customer requirements. Assessment: Information Required: Customer requirements, importance rating, rate of improvement, sales point, priority index and benchmarking rating. Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Development Cost Earned Market Share Achieved Customer Satisfaction Product Development Time Customer Requirements Realized Product Unit Cost Score 2.40 2.36 2.01 1.81 1.61 1.22 101 Sheet CPDP 1.5-B Conduct Quality Function Deployment Based On Refined Customer Requirements Phase: Product Definition Description: Quality Function Deployment (QFD) is completed using the refined customer requirements derived through the internal and external focus groups. Purpose: QFD translates customer requirements into measurable design objectives while relating and prioritizing the requirements. This will ensure that a truly customer driven product is developed. Personnel Involved: Engineering, product development director. Documentation Involved: Notes on customer requirements, pre-planning matrix, the QFD diagram. Output: A completed QFD diagram. Assessment: Information Required: Customers, refined customer requirements, company measures, technical attributes > engineering specifications, target values, customer ratings, competition's values. Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Customer Requirements Realized Achieved Customer Satisfaction Earned Market Share Product Unit Cost Product Development Time Product Development Cost Score 8.18 7.92 7.31 5.57 4.82 2.05 102 Sheet CPDP 1.6-B Program Schedule Estimated Phase: Product Definition Description: The program schedule is estimated to provide an overview of the program timing, highlighting important events in the schedule. Purpose: The estimation of the program schedule allows the product development team to gain a better understanding of the product development process in terms of the time involved. Personnel Involved: Product development director, engineering, manufacturing. Documentation Involved: Estimated program schedule, completed QFD diagram. Output: First attempt at a developed program schedule. Assessment: Information Required: Product information in terms of customer requirements and the completed QFD which will allow for the team to estimate the time needed to develop the product. Experience in past product development processes is necessary to gain an accurate estimation, manufacturing process capabilities. Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Development Time Product Development Cost Achieved Customer Satisfaction Earned Market Share Customer Requirements Realized Product Unit Cost Score 1.81 1.71 1.18 1.12 1.06 1.00 103 Sheet CPDP 1.7-B Product Specifications Developed Phase: Product Definition Description: The product specifications are developed based on the technical attributes and engineering specifications that have been defined using QFD. Purpose: The product specifications represent the top-level definitions of the technical attributes These specifications will serve as and engineering specifications for the product being developed. the principle information source for technical guidance. The product specifications contain all pertinent technical, performance, operational, and support information for the product. Personnel Involved: Engineering, product development director. Documentation Involved: Completed QFD diagram Output: Product Specifications Assessment: Information Required: Customer requirements in the form of technical attributes and engineering specifications, any required codes or standards that are used in the product's area (e.g. ASME codes for pressure vessels). Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Customer Requirements Realized Achieved Customer Satisfaction Earned Market Share Product Development Time Product Unit Cost Product Development Cost Score 9.90 5.61 5.59 4.82 4.24 3.08 104 Sheet CPDP 1.8-B Program Schedule Developed Phase: Product Definition Description: The program schedule has been estimated. Now that the product specifications have been developed and a better understanding of the product requirements exists, the program schedule can be fully developed. The program schedule provides the product development team with a timeline to follow during product development and promotes advancement through the process. Purpose: Personnel Involved: Manufacturing, engineering, production manager, product development director. Documentation Involved: Estimated program schedule, product specifications. Output: Fully developed program schedule. Assessment: Information Required: Estimated program schedule, product specifications, manufacturing process capabilities. Notes: The program schedule could be normalized so that it could be used for any type of mechanical design project based on an estimated part count and available resources. This way the product development team could enter the estimated number of parts and the available resources (i.e. man hours available) and a program schedule would be calculated. Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Development Time Product Development Cost Earned Market Share Achieved Customer Satisfaction Product Unit Cost Customer Requirements Realized Score 1.81 1.37 1.21 1.19 1.14 0.97 105 Sheet CPDP 1.9-B Concepts Generated Phase: Product Definition Description: With the product specifications completed, concepts of the product are generated for consideration in production. Purpose: To generate concepts for consideration as the new product which provides the required functions defined by the product specifications and ultimately the customers. Personnel Involved: Engineering, product development director, selected vendors. Documentation Involved: Product specifications, purchase orders, vendor list. Output: Sketches, block diagrams, textual descriptions, models or any other method that shows how the required functions are achieved through the concept. Assessment: Information Required: Product specifications in terms of function required, manufacturing process capabilities, any required standards or codes that must be satisfied, competition's (if any) design of similar product, any references that will aid in the designers concept generation (e.g. by Nicholas P. Chironis). Mechanisms and Mechanical Devices Sourcebook Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Achieved Customer Satisfaction Earned Market Share Customer Requirements Realized Product Unit Cost Product Development Time Product Development Cost Score 5.65 5.55 4.55 4.35 3.01 2.05 106 Sheet CPDP 2.0-B Evaluate Concepts Phase: Product Definition Multiple concepts have been generated and a concept needs to be chosen for further development as a product. This requires the evaluation of the concepts based on some sort of decision making process and the eventual selection of a single concept. Description: Purpose: To define the product from one of the concepts that have been generated and continue the product development process. Personnel Involved: Marketing, engineering, manufacturing, sales, product development director, company owner, service manager. Documentation Involved: Product specifications, concept sketches, block diagrams, textual descriptions, models or any other method that shows how the required functions are achieved through the concept, purchase orders, vendor list. Output: A concept that has been selected for production. Assessment: Information Required: Product specifications in terms of function required, manufacturing process capabilities, any required standards or codes that must be satisfied, competition's (if any) design of similar product, concept sketches, block diagrams, textual descriptions, models or any other method that shows how the required functions are achieved through the concept, approved vendors. Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Earned Market Share Achieved Customer Satisfaction Customer Requirements Realized Product Unit Cost Product Development Cost Product Development Time Score 5.55 5.46 4.35 3.21 2.74 1.81 107 Sheet CPDP 2.1-B Concept Approval? Phase: Product Definition Description: A concept has been selected by the product development team and now requires management approval to proceed to the detail design phase. Purpose: To receive management approval of the selected concept and ensure that everyone involved in the process has had a chance to have their voice heard before continuing the product development process. Personnel Involved: Company owner, product development director, marketing, engineering, manufacturing, production manager, sales, service manager, selected vendors. Documentation Involved: Pre-planning matrix, program schedule, completed QFD diagram, product specifications, concept sketches, block diagrams, textual descriptions, models or any other means of showing how the required functions are achieved through the concept, purchase orders, vendor list. Output: The decision to do one of the following: 1) Proceed into detail design phase with the chosen concept 2) Generate more concepts (CPDP 1.9) 3) Identify the need for another product or conduct competitive market analysis /market research/engineering assessment (CPDP 1.0 & 1.1). Start a new product development process. Assessment: Information Required: Target customers, refined customer requirements, importance rating, rate of improvement, sales point, priority index and benchmarking rating, company measures, engineering specifications, target values, customer ratings, competition's values, manufacturing process capabilities, any required codes or standards that are used in the product's area, concept sketches, block diagrams, textual descriptions, models or any other method that shows how the required functions are achieved through the concept, approved vendors. Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Earned Market Share Achieved Customer Satisfaction Customer Requirements Realized Product Unit Cost Product Development Cost Product Development Time Score 11.05 10.88 9.43 5.38 2.74 1.81 108 Sheet CPDP 2.2-B Prototype Virtual * Part Modeling Phase: Detail Design Description: A concept has been selected for detail design and approved by management. The selected design needs to have detail drawings constructed so that the prototype parts can be manufactured. The material and manufacturing process is selected for the part being designed. The decision is made to either build the part in house or have the part manufactured by a vendor. This decision is based on the part details (i.e. part form, material, manufacturing process capabilities). Purpose: To initiate the detail design phase and provide virtual part models with enough detail (i.e. part form, material, and manufacturing process) to allow for a buy vs. make decision to be made and lead to prototype part manufacture. Personnel Involved: Product development director, production manager, engineering, manufacturing, selected vendors. Product specifications, manufacturing process capabilities, any required standards or codes that must be satisfied, competition's (if any) product literature, concept sketches, block diagrams, textual descriptions, models or any other method that shows how the required functions are achieved through the concept, program schedule, purchase orders, vendors Documentation Involved: list. Output: Virtual models of the prototype parts with material and manufacturing process selected. The decision to either manufacture the part in house or have the part manufactured by a vendor. Assessment: Information Required: Product specifications in terms of function required, manufacturing process capabilities, material properties, any required standards or codes that must be satisfied, competition's (if any) design of similar product, concept sketches, block diagrams, textual descriptions, models or any other method that shows how the required functions are achieved through the concept, approved vendors. Notes: *The term virtual refers to something that has been defined in a computer but does not exist in actual form. Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Development Time Product Development Cost Product Unit Cost Customer Requirements Realized Earned Market Share Achieved Customer Satisfaction Score 7.23 6.16 5.29 4.31 3.46 3.34 109 Sheet CPDP 2.3-B Prototype Virtual Assembly Phase: Detail Design Description: Detail design of the prototype parts has been started. The parts are now assembled in a virtual environment and tested for fit*, form** and function***. Purpose: To ensure that the parts being designed meet the design requirements as an assembly in terms of fit*, form"` and function***. Personnel Involved: Product development director, production manager, engineering, manufacturing, selected vendors. Documentation Involved: Product specifications, manufacturing process capabilities, any required standards or codes that must be satisfied, competition's (if any) product literature, concept sketches, block diagrams, textual descriptions, models or any other method that shows how the required functions are achieved through the concept, program schedule, purchase orders, vendor list. Output: Virtual models of the prototype assemblies. Assessment: Information Required: Product specifications in terms of function required, manufacturing process capabilities, material properties, any required standards or codesthat must be satisfied, competition's (if any) design of similar product, concept sketches, block diagrams, textual descriptions, models or any other method that shows how the required functions are achieved through the concept, prototype virtual parts, approved vendors. Notes: It - Does the part fit as expected and meet required clearances? **form - Does the shape of the part meet design requirements? ***function - Does the part perform the required functions? Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Development Time Product Development Cost Product Unit Cost Customer Requirements Realized Earned Market Share Achieved Customer Satisfaction Score 7.23 6.16 4.29 3.72 3.46 3.43 110 Sheet CPDP 2.4-B Prototype Detail Developed Phase: Detail Design Description: The prototype virtual part and assembly modeling has been completed. Detail drawings are needed for prototype part manufacture. The initial bill of materials and assembly instructions are also initiated in this step. Purpose: To develop detail drawings of the prototype parts so that the parts can be manufactured. Personnel Involved: Product development director, engineering, selected vendors. Documentation Involved: Initial part and assembly bill of materials*, initial assembly instructions, product specifications, manufacturing process capabilities, any required standards or codes that must be satisfied, program schedule, purchase orders, vendor list. Output: Initial detail drawings of the prototype parts, initial BOMs and initial assembly instructions. Assessment: Information Required: Prototype virtual part and assembly models, material information, manufacturing process, approved vendors. Notes: *Part and assembly BOMs contain the following information: Part/Assembly name and number designation Part/Assembly material specifications Part/Assembly manufacturing specifications Any other information that the engineer wants to associate with the part /assembly Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Development Time Product Development Cost Product Unit Cost Customer Requirements Realized Earned Market Share Achieved Customer Satisfaction Score 7.23 4.11 3.92 3.87 3.38 3.29 111 Sheet CPDP 2.5-B Prototype Build Phase: Detail Design Description: The initial detail drawings of the prototype parts and assemblies have been completed. The initial BOMs and initial assembly instructions are also being developed. The prototype parts can now be manufactured and the prototype assembled. Purpose: To build a prototype of the chosen design and allow for functional testing of the selected design before production is started. Personnel Involved: Product development director, production manager, engineering, manufacturing. Documentation Involved: Detail drawings of the prototype parts/assemblies, initial part/assembly bill of materials, initial assembly instructions, program schedule, purchase orders, vendor list. Output: A fully assembled prototype of the chosen concept. Assessment: Information Required: Initial detail drawings of prototype parts/assemblies, part/assembly material, manufacturing and assembly information, approved vendors. Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Development Cost Product Development Time Product Unit Cost Achieved Customer Satisfaction Customer Requirements Realized Earned Market Share Score 15.41 9.64 4.15 3.29 3.08 2.66 112 Sheet CPDP 2.6-B Prototype Testing (Functional) Phase: Detail Design Description: The prototype has been assembled and functional testing needs to be conducted to verify that required specifications are satisfied. Functional testing will highlight areas where the prototype is deficient and allow for engineering to make necessary changes needed for the prototype to meet required specifications. Initial prototype virtual part models, virtual assembly models and part/assembly detail drawings are modified as needed to reflect any changes required to meet the engineering specifications. The initial BOMs and assembly instructions are also modified as needed for any changes in design. Purpose: To ensure that the prototype meets the required engineering specifications derived from customer requirements. Personnel Involved: Product development director, production manager, engineering, manufacturing. Product specifications in terms of function required, manufacturing process Documentation Involved: capabilities, any required standards or codes that must be satisfied, concept sketches, block diagrams, textual descriptions, models or any other method that shows how the required functions are achieved through the concept, engineering specifications, detail drawings of the prototype parts/assemblies, initial part/assembly bill of materials, initial assembly instructions, program schedule, vendor list, purchase orders. Output: Assessment of prototype functional performance. Any deficiencies in the prototype that must be corrected in order for the design to meet engineering specifications. Assessment: Product specifications in terms of function required, manufacturing process Information Required: capabilities, any required standards or codes that must be satisfied, concept sketches, block diagrams, textual descriptions, models or any other method that shows how the required functions are achieved through the concept, detail drawings of the prototype parts/assemblies, initial part/assembly bill of materials, initial assembly instructions, Initial detail drawings of prototype parts/assemblies, part/assembly material, manufacturing and assembly information, vendors, purchasing information, approved vendors. Notes: Any changes in the prototype design results in changes in the prototype part/assembly models, the detail drawings, the initial BOMs and the initial assembly instructions. Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Unit Cost Product Development Time Product Development Cost Customer Requirements Realized Earned Market Share Achieved Customer Satisfaction Score 5.48 4.82 4.11 3.97 3.47 3.29 113 Sheet CPDP 2.7-B Bill of Materials Completed Phase: Detail Design Description: The initial bill of materials that was started earlier (see CPDP 2.4) can now be completed. The prototype has been tested and the necessary changes made to the design so that engineering requirements are meet. Purpose: To complete the bill of materials for the prototype and produce a production ready version bill of materials. Personnel Involved: Product development director, production manager, engineering, manufacturing. Documentation Involved: Engineering specifications, detail drawings of the prototype parts/ assemblies, initial part/assembly bill of materials, initial assembly instructions, program schedule, vendor list, purchase orders. Output: A production ready version of the bill of materials. Assessment: Information Required: Manufacturing process capabilities, any required standards or codes that must be satisfied, engineering specifications, detail drawings of the prototype parts/assemblies, initial part/assembly bill of materials, initial assembly instructions, approved vendors. Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Development Time Product Development Cost Product Unit Cost Achieved Customer Satisfaction Earned Market Share Customer Requirements Realized Score 4.82 4.11 1.41 1.11 1.06 1.01 114 Sheet CPDP 2.8-B Assembly Instructions Completed Phase: Detail Design Description: The initial assembly instructions were started (see CPDP 2.4) can now be completed. The prototype has been tested and the necessary changes made to the design so that engineering requirements are meet. Purpose: To complete the assembly instructions and generate production ready assembly instructions. Personnel Involved: Product development director, production manager, engineering, manufacturing. Documentation Involved: Engineering specifications, detail drawings of the prototype parts/ assemblies, production ready version of part/assembly bill of materials, initial assembly instructions, program schedule. Output: Production ready assembly instructions. Assessment: Information Required: Engineering specifications, detail drawings of the prototype parts/ assemblies, production ready version of part/assembly bill of materials, initial assembly instructions. Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Development Time Product Development Cost Product Unit Cost Achieved Customer Satisfaction Earned Market Share Customer Requirements Realized Score 4.82 4.11 1.33 1.17 1.06 1.01 115 Sheet CPDP 2.9-B Technical Publications Developed Phase: Detail Design Description: The detail information of the prototype (e.g. detail drawings, BOMs, assembly instructions) has been completed and the owner's manual and parts list can now be developed. Purpose: To produce an owner's manual and parts list for customers. Personnel Involved: Product development director, engineering. Product specifications in terms of function required, any required standards or codes that must be satisfied, concept sketches, block diagrams, textual descriptions, models or any other method that shows how the required functions are achieved through the concept, engineering specifications, detail drawings of the prototype parts/assemblies, production version of part/assembly bill of materials, production version assembly instructions, program schedule. Documentation Involved: Output: A completed owner's manual with parts list. Assessment: Information Required: Product specifications in terms of function required, any required standards or codes that must be satisfied, concept sketches, block diagrams, textual descriptions, models or any other method that shows how the required functions are achieved through the concept, engineering specifications, detail drawings of the prototype parts/assemblies, production version of part/assembly bill of materials, production version assembly instructions. Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Development Time Product Development Cost Product Unit Cost Achieved Customer Satisfaction Earned Market Share Customer Requirements Realized Score 4.82 2.74 1.33 1.12 1.06 1.01 116 Sheet CPDP 3.0-B Design Approval? Phase: Detail Design Description: All stages of detail design have been completed and the prototype is now ready for production. Management approval is now required for production of the selected prototype to begin. Purpose: To receive management approval of the selected concept and have one final assessment of the prototype with the concurrent design team before production of the prototype begins. To ensure that everyone involved in the process has had a chance to have their voice heard before continuing the product development process. Personnel Involved: Company owner, product development director, marketing, engineering, manufacturing, production manager, service manager, sales. Documentation Involved: All of the displays, charts, graphs, notes and any other forms of market information that could influence the decision, pre-planning matrix, program schedule, completed QFD diagram, product specifications, concept sketches, block diagrams, textual descriptions, models or any other means of showing how the required functions are achieved through the concept, engineering specifications, detail drawings of the prototype parts/ vendor list, assemblies, production version of part/assembly bill of materials, production version assembly instructions, purchase orders. Output: The decision to do one of the following: 1) Proceed into the production phase with the prototype 2) Generate more concepts (CPDP 1.9) 3) Identify the need for another product or conduct competitive market analysis /market research/engineering assessment (CPDP 1.0 & 1.1). Start a new product development process. Assessment: Information Required: Market segment (e.g., manufacturing industries, can be segmented based on SIC codes), market sub-segment (e.g., electronics), target customer (the customers who are expected to either pay for or use the product, e.g., V.P. of Engineering), the person (by name) and the company (by name), the geographical region (sorted for distribution channels). (Salomon, 1995) Company price points, market cycles, competitors. Project objective, estimate of material and labor costs, estimate of development time, development risks, development options, design criteria, target customers, refined customer requirements, importance rating, rate of improvement, sales point, priority index and benchmarking rating, company measures, engineering specifications, target values, customer ratings, competition's values, manufacturing process capabilities, any required codes or standards that are used in the products area, concept sketches, block diagrams, textual descriptions, models or any other method that shows how the required functions are achieved through the concept, program schedule, product specifications, concept sketches, block diagrams, textual descriptions, models or any other means of showing how the required functions are achieved through the concept, engineering specifications, detail drawings of the prototype parts/assemblies, production version of part/assembly bill of materials, production version assembly instructions, approved vendors. Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Achieved Customer Satisfaction Product Unit Cost Earned Market Share Customer Requirements Realized Product Development Cost Product Development Time Score 10.43 10.42 10.11 10.02 2.74 1.81 117 Sheet CPDP 3.1-B Manufacturing Scheduling Phase: Production Description: The decision has been made to proceed with production of the prototype. Marketing data is used to project the number of units to be manufactured. The manufacture of the product is scheduled to ensure that the product is ready on the required ship date. Purpose: To allocate the needed resources and make sure that the projected number of units is produced in the required time frame. Personnel Involved: Company owner, marketing, product development director, production manager, engineering, manufacturing, sales. Documentation Involved: Manufacturing process capabilities, vendor list, purchase orders, detail drawings of the prototype parts/assemblies, production version of part/assembly bill of materials, production version assembly instructions, program schedule. Output: A completed manufacturing schedule. Assessment: Information Required: Manufacturing process capabilities, detail drawings of the prototype parts/ assemblies, production version of part/assembly bill of materials, production version assembly instructions, program schedule, approved vendors. Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Unit Cost Earned Market Share Product Development Cost Achieved Customer Satisfaction Product Development Time Customer Requirements Realized Score 4.09 2.75 2.74 2.42 2.41 2.07 118 Sheet CPDP 3.2-B Production Phase: Production Description: All detail drawings of the prototype parts/assemblies, production version of part/ assembly bill of materials and production version assembly instructions have been completed and delivered to manufacturing. The manufacture of the product has been scheduled to ensure that the product is ready on the required ship date. Production is now ready to begin. Purpose: To manufacture the projected number of units. Personnel Involved: Product development director, production manager, engineering, manufacturing, selected vendors. Documentation Involved: Manufacture schedule, manufacturing process capabilities, vendor list, purchase orders, detail drawings of the prototype parts/assemblies, production version of part/ assembly bill of materials, production version assembly instructions, program schedule. Output: Production models of the selected design. Assessment: Information Required: Manufacturing schedule, manufacturing process capabilities, detail drawings of the prototype parts/assemblies, production version of part/assembly bill of materials, production version assembly instructions, program schedule, approved vendors. Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Development Cost Product Unit Cost Product Development Time Earned Market Share Customer Requirements Realized Achieved Customer Satisfaction Score 10.62 10.00 7.23 4.01 3.84 3.82 119 Sheet CPDP 3.3-B Production Model Performance Review Phase: Production Description: Production of the product is in progress and the first units are coming off of the assembly line. These products are checked to ensure that they have been made to specification and that the product functions as expected. Information gathered in the post production review will influence decisions made in CPDP 3.4, Production Approval. The first production models are being shipped to the customer. Purpose: To ensure that the product is being manufactured as expected and that the production models meet or exceed all the required specifications as the prototype did. Personnel Involved: Product development director, production manager, engineering, manufacturing, selected vendors. Documentation Involved: Product specifications, concept sketches, block diagrams, textual descriptions, models or any other means of showing how the required functions are achieved through the concept, engineering specifications, manufacturing schedule, manufacturing process capabilities, detail drawings of the prototype parts/assemblies, production version of part/assembly bill of materials, production version assembly instructions, program schedule, vendor list, purchase orders. Output: Recommendations for any changes in the production model or manufacture of the production model that will decrease time to market, reduce costs and increase overall competitiveness. Assessment: Information Required: Product specifications, concept sketches, block diagrams, textual descriptions, models or any other means of showing how the required functions are achieved through the concept, engineering specifications, manufacturing schedule targets and actual manufacturing time, manufacturing process capabilities, approved vendors, detail drawings of the prototype parts/assemblies, production version of part/assembly bill of materials, production version assembly instructions, program schedule. Notes: This step in the process can be thought of as a pilot production run review that will help identify any problems between engineering and manufacturing of the product that were not caught in prototype production. Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Unit Cost Customer Requirements Realized Achieved Customer Satisfaction Earned Market Share Product Development Time Product Development Cost Score 4.39 3.84 3.73 3.71 3.61 3.08 120 Sheet CPDP 3.4-B Production Approval? Phase: Production Description: The first production units have been produced and are being shipped to the customers. This step gives the concurrent design team a chance to review the current production model and see the customers response to the new product. Management also has a chance to hear any concerns that were raised during CPDP 3.3, Production Model Performance Review done by engineering and manufacturing. The concurrent design team can decide if any changes need to be made to the production model. Purpose: To allow the concurrent design team to assess the production model, discuss differences (if any) between the prototype and production model and see the customers response to the new product. Personnel Involved: Company owner, product development director, marketing, engineering, manufacturing, production manager, sales, service manager, selected vendors. Documentation Involved: Any sales information, product specifications, concept sketches, block diagrams, textual descriptions, models or any other means of showing how the required functions are achieved through the concept, engineering specifications, manufacturing schedule, manufacturing process capabilities, vendor list, purchase orders, detail drawings of the prototype parts/assemblies, production version of part/assembly bill of materials, production version assembly instructions, program schedule. Output: The decision to do one of the following: 1) Continue with production of the current design 2) Modify the design and approve the changes (CPDP 3.0) 3) Generate more concepts (CPDP 1.9) 4) Identify the need for another product or conduct competitive market analysis /market research/engineering assessment (CPDP 1.0 & 1.1). Start a new product development process. Assessment: Information Required: Any sales information, product specifications, concept sketches, block diagrams, textual descriptions, models or any other means of showing how the required functions are achieved through the concept, engineering specifications, manufacturing schedule, manufacturing process capabilities, detail drawings of the prototype parts/assemblies, production version of part/assembly bill of materials, production version assembly instructions, program schedule, purchase orders, approved vendors. Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Product Unit Cost Earned Market Share Achieved Customer Satisfaction Customer Requirements Realized Product Development Cost Product Development Time Score 10.91 8.31 8.26 7.70 6.16 1.81 121 Sheet CPDP 3.5-B Customer Service and Support Phase: Post Production Description: The product has been shipped to customers and is in service. Layton Mfg. Inc. provides a 12 month warranty on parts and labor for its products. The company also provides support of it's products and service of all serviceable parts. Purpose: To provide customer support and service on products and build customer satisfaction. Personnel Involved: Service manager, company owner, product development director, marketing, engineering, manufacturing, production manager, sales, selected vendors. Owner's manual and parts list, any sales information, product specifications, engineering specifications, detail drawings of the prototype parts/assemblies, production version of part/assembly bill of materials, production version assembly instructions, program schedule, purchase orders, vendor list, customer files, service sheet. Documentation Involved: Output: Service and support of products. Assessment: Information Required: Owner's manual and parts list, any sales information, product specifications, engineering specifications, detail drawings of the prototype parts/assemblies, production version of part/assembly bill of materials, production version assembly instructions, program schedule, purchase orders, approved vendors, customer files, service sheet. Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Achieved Customer Satisfaction Earned Market Share Product Unit Cost Customer Requirements Realized Product Development Cost Product Development Time Score 2.43 2.29 1.10 0.96 NA NA 122 Sheet CPDP 3.6-B Product Retirement Phase: Post Production Description: The product has reached the end of its life cycle and can now be recycled and/or refurbished and reused as possible. Purpose: To recycle and/or refurbish and reuse the product as possible. Personnel Involved: Service manager, company owner, product development director, marketing, engineering, manufacturing, production manager, sales, selected vendors. Documentation Involved: Any sales information, product specifications, engineering specifications, detail drawings of the prototype parts/assemblies, production version of part/ assembly bill of materials, production version assembly instructions, program schedule, purchase orders, vendor list, customer files, service sheet. Output: Recycled and/or refurbished and reused products. Assessment: Information Required: Any sales information, product specifications, engineering specifications, detail drawings of the prototype parts/assemblies, production version of part/assembly bill of materials, production version assembly instructions, program schedule, purchase orders, approved vendors, customer files, service sheet. Notes: Process Measurement Matix Relative Priorities of the Exectutive Level Requirements Requirements Earned Market Share Achieved Customer Satisfaction Product Unit Cost Customer Requirements Realized Product Development Cost Product Development Time Score 2.04 1.42 1.10 0.96 NA NA 123 Appendix D: Theory of Constraints Logic Tree p. 2 understanding of the product development time frame then before the product specification were develo Product specifications can developed The product specification successfully reflect the refin customer requirements e program schedule can estimated e schedule reflects realis time estimates and is approved by managemen (Customer driven product development is ensured nagement will direct effo s and studies which define or confirm the cust. reqs. Customer Requirements ar defined through focus group SYSTEM BOUNDARIES: The product development process from identifying the need for the product to post product retirement. decision must be made proceed with product development uality Function Deployme t is conducted based on refin customer requirements The completed custome requirements correctly identi the customer's wants and needs e customer requiremen are refined through internal and external focus groups The decision is made to proceed with product development THE GOAL: To produce a product that is customer driven. THE MEASURES. Not yet identified. Red text indicates a milestone decision that must be made in the product development process. A need for a product exists Competitive market analysi market research is conduct CThe need for the product is identified The market analysis an market research provides constructive feedback The company involved is interested in developing the product Figure D.1. First page of the theory of constraints diagram for Company B. 124 P . 3 -4( The prototype can be built f c ( Prototype drawings ar'e. Prototype drawings are developed modified as necessary to reflect manufacturing and/or assembly changes Feedback Loop (Prototype virtual modeling is initiated E Pro oye virtual assembly initiated Detail design can be started A concept is selected Concepts can be evaluated The concept is approved management by t Concepts can be generated t anagemen as a understanding of the product development time frame then before the product specifications were developed eprogram schedule can developed (Product specifications are completed Concepts are generated (The program schedule developed The product specifications successfully reflect the refine customer requirements Figure D.2. Second page of the theory of constraints diagram for Company B. 125 p4 The production model undergoes a performance review cI (Production of product is he first production models of the product are completed started The schedule reflects appropriate time based on process capability The technical publications provide the necessary technical data The assembly instructions give appropriate detail needed for assembly The bill of materials is ful C tt evolved he prototype is modified as needed to complete functional testing Feedback Loop A production schedule can be developed echnical publications can be developed (-Technical publications are Assembly instructions can be (-Assembly instructions are C 1 completed developed completed The bill of materials can be developed The bill of materials reflects the complete pre-production prototype 4rototype functional testing can be done C Prototype functional testing is completed The prototype can be built Sub-systems of the prototype begin to be assembled V p. 2 The prototype is approved by management for production Figure D.3. Third page of the theory of constraints diagram for Company B. 126 The product is retired from service f The product eventually reaches the end of its life cycle Customers use the product Customers purchase the product (Customers require service (Customers receive the product Production is continued with required changes completed and support ) Production models are ready for shipment N ecessary changes are mad to ensure that production targets are met The production moder undergoes a performance review he production model meets and/or exceeds key erformance measurements Figure D.4. Fourth page of the theory of constraints diagram for Company B. 127 Appendix E: Revised Theory of Constraints Revised Theory of Constraints for Compai y B's New Product Development Process 1. emesien le Inede Chart is based on this generic process model 00 0119.1. 00.. no) -----------±-.1 (.000.1 I) 4.6 9.02/ 2) 66000 .30099 I,I90 9. 600 11010 2) 10197121. 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P.n.s mined conema )01.0.011. - I) 000112 010.1 e)..10.101.....0.11 P.011 apasol....,..........arat 0.0 .01.1.0 .... 01.010001 .00) pros. any cons.... 11.01900 0ene. etet..1.0 .1 110 rake.12i........ Oomnwa ) 91.3...0 --* 900 ce eon. 0000.0..te II 010.13.10.111 030 end 02101.0 altoellen rm.. illmu300190 .00 3) in um.. deterner 001010. nyt10. .9.6 Dr ce0.01 rpArern.7031 1.411..... vr rem. e Figure E.6 Figure E.1. First page of the revised theory of constraints diagram for Company B. 0.... .... 09 il .0.. ere re.0 30... end 60. 000 .0. .. A we ...YI 0.1or, of was. 7.... PI 1.......nyrelmcol.. ......011.1 .0 oar. 20101o. , med. or 91 how rt. 91 , rotund . ere 010. 3.0 ...I .0 128 Chart la based on the generic process model Revised Theory of Constraints for Company B's New Product Development Process ...4 l'4,--­ \ 40, 523E_Lit6 00.1. 1' 1) .12 Orts 2) V.. MOO A 371300 -M. 0101111.0)..01..2019, A M.- $13.030 ilaWilt .Z:Wi.2%)1407.1Z 1.900, 2.912). 81.901, WO) 9 9mplormgroom .9.1.10 1., Pare1.10eD ..0. po. ......... lem .31. Pk. ems.. 1.1011 etwe*1* ..... ...elm, raasis orI as Resoureaa : ltem.mn ned lo pre. nmeumMs a......, 1... so:mem icawairy4. .111. slacnplem. mcd. sr' - Time is based on chart titled " Protect Timeline for Concurrent Product DeveloPMent Process at Layton Manufacturing Inc " , ,,...ata.ai ene - Q a/ 1) A Pereepl hs M.. Ice p.m. 0 10 up.. Peson. 11.1.... 03 (CPOP I 0) 11.1. a a a ares b Me *ter yam P. Mil , camp Owo pact .....coms .1.1.1 De 1.71 . as ..../ ........ins a*. , mt.* In ste a..........aser M.. MI .........o. 0 P..0 sea... a 11.1.11.m.... MO 9 p. bem c au cmactcomse. mt. ........ M. emspnws, H.S./. m1.0 mcm1 a. on. Me aoreier ...a ....... am dam. adrip d Lelln..01 00..1 '`,...__________..../ I 1) 11... de. 19) Mene nu. 9 . .......3 wow wo ma a.r,,,­ 9.1. WM WM Me m. Ps Mmen can. pa o a aPPPPI 121.132$ P.a.!3 one.n. perum .4am...a iiie.Ind essem. Pr Pod* .1 teutereamosamer leo seal ar.n. Me Misle. 9.1... erel.... I.. 1.3....... 9........ ....... ..MI* 7' ,' ...I olerri mu.i. cm. 1) 1012 Mys 2) 310. SACCO Mocacml MMoney IS calctieted as the sum of the number of hours x the number of employees a the hourly pay for each respecitive department = the average amount spent on this process (rounded up to the nearest $1000). - Pay rates. Marketing, $20.00/hr; Product Development Director, $40.00/hr.; Company owner, $50.00/hr.; Production Manager, $30.00/hr.; Engineering, $25.00/hr.; Manufacturing, $20.00/hr.; Sales, $20.00/M. Service Manger, $30.00/hr.; Avg. s $30.00/hr. - Personnel !movie& CO Company Owner, PDD Product Development Director, PM Production Manager, MRKT Marketing, ENGR Engineering, SLS Sales, MAW Manufachring, EU End User, WO Vendor, SM Service Manager. Followed by the number of people invovied from the respective area. - Deliverables: T Tangible (something you can touch), NT = Non-tangible , 0 2.3 dm \ 1) 2-31. tlack dep.ml.. 0011.1.101.1. V.111.1.011m ... pse In lam a I. 11* me mr .1.0 1) 7....... ei me.. Sr 09. 9 term af19.7. . 19) WPM neden of . mwannaeeea 1) Va.. mu.. ex... M. me tem me.......0 .a m. rn. M.10. So en..1.1.1.1. .., ewaasae, msualliny Figure E.8 es awed thmkg, es Figure E.9 1238_1.40 9.11I Ve. \ /\ Ma. Pnletyps1...-­ ,7 \ nia-iso, alma aailia Z PM MOO - 645.0:o alma., w. 01......... m.. a . UM rmene... Myths ........ , Me. am so..... mot... owe. eres .10...... Mel pev ''' OK 01 e... MIlle nemros 0.0 dem.. p....1 MD 1) .120. 9 h... 0.1. of peedvm mr. .1.9112....0 a.. alas I*. 9003111 EM2100), V. ,),..... 4a. 0.1 a Pray ma. rne. S.M. rm... p.a. /\ n 7 -114,4 Z 'In SIM 81.03 .a G.. or.* re. Le mek9. comel 3) PCq1). 2.213)..0)...00). A .0203- $12. /\ 0 7 41 O. 17.9 1. 01120, 0.02 0.0), .921 9Ms. .....13 .......1 ... or oulesem.t. 2) $11.. - SO. 9. 4 2..0 .1.1kra. O. ea. 939.en ..21mpres.....1. re. dm..., PM dm*. 31 1.01 10990). 11.0)..9902 191.29...10 sp... O. 9319.91.1.....rteen Mle pe... til dr..s. me ...ay Men.... ..ns. mmo. mulm, puro.102 Mar* 7) alma me* point.* el Ms Mown 71 ...12 O.. Mho M.. PIM 11 111.1aces (I.CPCP 2,1) Omelmed 4) 111.1cOttypo 211. tert ...Is nven. Me 4) 111. a 0.d*­ Ir..Pamp.m. M.. In the .-... lototatyPO CEGP.21.111 21.. M.S. Corn.. a.. In 01.4. 2....... tab Om ' WM,. =mob. ...-11.' CACIP 29 Ms boon '11 .... ms n1.10 1111 .ruMars Mel. W.. SZI18.2.0A ... Intle.e CoM. 1) M.. neOr mently 1.011. m­ 913. .19.1.1. ' m. etrem ...0 ..... MOW =I Ito 9 *rums me nest 7) 1.1. assmes ....---­ 1) A paMtIon maly .. MIIMIlde... , 0.... Wend ..... \ ru uu '1) Ito pot*. tow moguls& 0 1.1reel 0211. (Me 0. 0.1.1.1 1.11.1* reel Le Metelo me .11.10, d a plata as la 21 .2.11111ftly Wats/Jona ' nu.­ roma, *T. as me ./ ss,,,e, 010.9 1) 2 -2 0. A 2390393.0 3) 1.11). IMMO) Lanoria Play al My P..] am.. co codut rat. to ad 03.1...... rd. ae....s..... awes ,, *I. matt. ttol Was tav to totufte .......en t... ..... manemnora, 0011... Figure E.10 ......... 'an. 0000 Figure E.11 / tl trOthaamotty 011 cir maattly 3, M.. Cm.. 71 9 sameeml are. mai Pa pat la 0 3 0. tr. Maon d med. . 2) 23. 10:0) 1) .12 bys .111) ..........11)7...922"",15":::;...7... of ''"-' ..l.m m.1.. mm. M, ,0000. . 11 ........ ....12 r1100.,2, 09 l'.,Mpn ...........a... )....... 12 .. In nvotb to 1) P.M Mm m. ... 9... m 1.110. Se pa. n em may fp M sm.. 2) Memen. mum.. rem *PM smace. d a stftt,tel PC61,00 to 1) Sms rm.. pm. ..... ...pm ... We .03type 1)1....... *el 22 ....11 mut com. eralIt restect.rtmortot .m. CCPOP 1 0 1. mently Menuere. esl.e........ 1 A 071.11. mond . producticm Me tYth SY**. Prollition. '1/ saes of Pai Paa him0/OW mad and * atttoll Os/. of. 001.011.21 .01........ pm... ne Mr*. tott.eirrety tit al rnite.t. tecotntion *on awn.* .49 Mlum...9 3) 126.000 331.. MGM 2.1205, K.01. V.4.00. wo 9 .............2 .... alp a aktypo paaalap per*. OM. Parr M. wean. to 110.1. ) r 0 C001. 193100)..0 . 21.19. .90). \ la... tenn , P.dald (..) 21. CIO 91.1.10 ms. dee 1) Ms Ma * .....001 .....s. z alesiewesedes ....... ........ maeaee'""."'"'".'"nawadra. neently tit of rr.tbls 1..... nedaM.e. arMor cmcept a ,,e or hred.......... coMel acme. e. lottly* Figure E.2. Second page of the revised theory of constraints diagram for Company B. .. sr. - oa.1.1 an] annh 4:11 M111.121..... 129 Revised Theory of Constraints for Company B's New Product Development Process Chart is based on this generic process model , ....,,.. .. vv OM .... ( . iv( I kb 6 - MAO 111 based i ... " . PCP., MO). EN.K. A 1PT 11777 (il ...Cr12)...A11). MA. WC ad. ms.... Om 1.m.1....... von** a.. d,.. pr...srrib.. *Ian ......... .....dr... pro.. ....... MITI» ..... IA 1. as .........."W"C4[4.1..' Wsr::. ........ al .0.1.........a.. .1* P`............... ................. ow sr.. ........... or........... p.m ar./........ rr.) ...ft.. of ....... al.1..... ..........e........2 . CC111. POC(1)...12). A eare....... M. al.... h.. ...... rt.. 0... M. an.. d xvviiviv., n......... s...... ma Product Develotimare Process it Layton MartirachrIna Inc ". Money le calculated as the sum of the number of hours x the number of employees x the hourly pay for each respecitive department the average amotrit spent on the process (rounded up to the nearest $1000). Pay rates: Marketing, $20.00/ r: Product Development Director, $40.00/1v.; Company owner, $50.00/1v.; Production Manager, $30.00/tr.; Engineering, $25.00/ r.; ManufacttrIng, 520.00Ihr.; Sales, $20.00/1, Service Manger, $30.00; Avg. 11 7720.. 2) VOA MOO 4 0.4 A 1.11V)..111.....14. st...... ......... ............ on.. cr or. on dart titled' protect Time** for Conarrent ..n .................. .... ..4 ............ a.m... *co me. /...... rm.. cc..... row..n d Ow apurt dill mmEmm ® $30.00frir.. 0..... 1.1. ~An nada al Vs pod. . Pereomel invot4ed: CO Company Owner, POD Product Production Manager, MRKT Development Dkector, PM Marketing, ENGR Engineering, SLS Sales, MAW Manufacturing, EU End User, VND Vendor, SM Service Manager. Followed by the number of people invovied from the "ii A liwom....... ...1.11..... mald or n..... 005 .... .I.111..1 ........1..... am cc. =I Immo ea. pankollklmillin .. MELEE P,PP, 1/4......, iv, __.. SIN. I. tria Man poarcl /1) 1....1. Won MI. culaw at we lv- ........ rKsgs, in* At v : v (v. v vvov (avv((v *rn ((vvv, ,,,......,,....,:,..,,,,,, Tangibki (cometing you can touch), NT v 1--­ Ntin-tangsble I , o. Figure E.12 'F.J.7P , 4& ,,./ akkocal . kir US tka :he,. ,T17r, 1, Figure E.13 I I , 1 1 _ _. I) , ," owe E) MM. Pm cam PC," EMMA PM, WI MEM etata Elk Em mm imaymm pada vlavvv...nrvvtiviivakiev. demitvotivarvvvoitivi mi.( ...hew ..........1.1/ dm... pod.. ...lo p.m MI 0.1. ..... mn.s, .... Nr) ,. , A To. ;mar. La. .....0 v.v.. to . conplIIIDI a.. . respective area. Derierables: T -­ ' ... . 24.. 1) A NAM N.C.) in.. d W.. beta .....).... No &MEM: '' .... ....1.1nusi 0..2. fil T.... I. NW. ' ....1,11. . 4.16 Figure E.14 Figure E.3. Third page of the revised theory of constraints diagram for Company B. [, 130 Revised Theory of Constraints for Company B's The decision is made not to proceed with product development Chart is based on this generic process model 1) 4-5 Days 2) $5000 $6000 1) 4-5 Days 2) $ 5000 - $6000 3) MRKT(2), CO(1), PDD(1) 4) Market and technological ,­ data on the product being/ considered Resources: Time is based on chart titled "Project Timeline for Concurrent Product Development Process". Money is calculated as the sum of the number of hours x the number of employees x the hourly pay for each respecitive department = the average amount spent on this process (rounded up to the nearest $1000). Pay rates: Marketing, $20.00/hr; Product Development Director, $40.00/hr.; Company owner, $50.00/hr.; Production Manager, $30.00/hr.; Engineering, $25.00/hr.; Manufacturing, $20.00/hr.; Sales, $20.00/hr. Service Manger, $30.00/hr.; Avg. = $30.00/hr. Personnel Invovled: CO = Company Owner, PDD = Product Development Director, PM = Production Manager, MRKT = Marketing, ENGR = Engineering, SLS = Sales, MANF = Manufacturing, EU = End User, VND = Vendor, SM = Service Manger. Followed by the number of people invovled from the respective area. Deliverables: T = Tangible (something you can touch), NT = Non-tangible 3) MRKT(2), CO(1), PDD(1) 4) Displays, charts, graphs,' and notes PDP 1 1-BCompetiti Market Analysis / Market Research/Engineering Assessment NT) Product desciiptior CPCDopigrdednetaify 110.1 idea, or concept T) Notes or sketches about the product, idea, concept ,-- 1) A concept or idea for th 1) The market analysis anc NT) Insight into market opportunity and the abili to develop good marker\ position T) Displays, charts, graphs and notes that show the required information market resea ch provide constructive feedback product exists. 2) The company involved interested in developing the product. 1) 4-5 Days 2) $ 5000 - $60000 3) MRKT(2), CO(1), PDD(1) 4) Market and technological 1) 4-5 Days 2) $5000 $6000 3) MRKT(2), CO(1), PDD(1) 4) Displays, charts, graphs/ and notes data on the product being-­ considered PDP petItives, Market Aulysis / Market ResearcMEngineering Assessment 1) The market analysis anc market resea ch provide constructive feedback NT) Insight into market opportunity and the ability to develop good market position T) Displays, charts, graphs and notes that show the required information CPDP 1 0-Bdentify Concept or Idea 1) A concept or idea for th product exists. 2) The company involved i interested in developing the product. Figure E.4. Section of the first page of the revised theory of constraints diagram for Company B. NT) Product description, Idea, or concept T) Notes or sketches about the product, idea, or concept 131 )mpany B's New Product Development Process nada prod PDP 1.1-ECompetiti larket Analysis / Market Research/Engineering Assessment NT) Insight into marke opportunity and the ability to develop good marke. position T) Displays, charts, graphs and notes that show the required information 1) 2-3 Days 2) $3000 $4000 3) MRKT(2), CO(1), PDD(1) 4) Displays, charts, graphs and notes CPDP 1.2-EProject Approval? 1) To all 'DP 1.0-adentify concept or Idea NT) Product description idea, or concept T) Notes or sketches about the product, idea, or concept management t evaluate the selected idea concept and ensure that everyone involved in the process has had a chance have their voice heard befo continuing the product development process. NT) The decision to proceed or not to proceed Inith product development T) All of the displays, charts, graphs, notes an any other forms of market information that could influence the decision Figure E.S. Section of the first page of the revised theory of constraints diagram for Company B. 132 1) 2-3 Days 2) $3,000 - $5,000 3) PDD(1), PM (1), ENGR(2), / 1) 7-8 Days ..//' 2) $5,000 - $6,000 3) PDD(1), ENGR(2) 4) Customers, refined customer requirements, company measures, engineering technical attributes specifications, target values, ­ ctiVomer ratings, competition's MANF(2) 4) Completed QFD diagram, manufacturing process capabilities values < CPDP 1.6-B Program Schedule Estimated CPDP 1.5-B Conduct QFD Based on Refined Customer Requirements . (1) 1---1101 --- ---­ NT) Customer driven product is ensured T) A completed QFD diagram T) First attempt at a developed program schedule 1) The schedule reflects realistic time estimates and Is approved by management Quality Function Deployment is conducted based on refined customer requirements 1) 7-8 Days 2) $8,000 - $9,000 3) PDD(1), ENGR(4) \4) Completed QFD diagram / 1) 2-3 Days 2) $8,000 $8,000 K 3) NRKT(2), CO(1), PDD(1), PM(1) ENGR(2), MANF(2), SLS(2), SM(1) 4) Customer requirements, importance rating, rate of improveme 1) The product specifications accurately reflect the refined customer Jequirements. \ sales point, priority index and, benchmarking rating , 1) 4-5 Days \ 2) $11,000 - $13,000' A/IFKT(2), CO(1), PDD(1), PM(1), ENGR(2), MANF(2), SLS(2), EU(2), SM(1) 2 ) Notes, ideas, surveys an etches from the groups. CPDP 1.4-8 Complete Pre-Planning Matrix 1) A completed preplanning matrix with refined customer requirements. I CPDP 1.3-8 Customer Requirements Defined Through Focus Groups 1) Notes, Ideas, surveys and sketches from the focus groups. T) VVritten refined customer requirements. 1) The customer requirements are refined through internal and external foss groups 2) Management directs efforts and studies which define or confirm the customer requirements 3) The completed customer requirements correctly identify the customers wants and needs Figure E.6. Section of the first page of the revised theory of constraints diagram for Company B. 133 1) 2-3 Days 2) $3000 - $4000 3) PDD(1), PM(1), ENGR(2), MANF(2) 4) Estimated program schedule, product specifications, manufacturing process capabilities CPDP 1.8 -B Program Schedule Developed 11) Management has a better understanding of the product development time frame than before the product specifications were `developed. 1) 7-8 Days 2) $8,000 - $9,000 3) PDD(1), ENGR(4) 4) Completed QFD diagram CPDP 1.7-B Product Specifications Developed 1) The product specifications accurately reflect the refined customer \requirements. NT) The schedule reflects realistic time requirements and is approved by management. T) Completed program schedule T) Completed product specifications 1) 4-5 Days 2) $5,000 - $6,000 3) PDD(1), ENGR(4) 4) Product specifications, manufacturing process capabilities, any required standards or codes that must be satisfied, competition' \ (if any) design of similar product, any 7ences that will aid in the desig s concept generation CPDP 1.9 -B Concepts Generated 11) Product specifications in terms of func ion required, manufacturing process capabilities, any required standards or codes that mus be satisfied, competition's (if any) design of similar product, any references that will aid in the designers concept generation Figure E.7. Section of the first page of the revised theory of constraints diagram for Company B. 1) Sketches, block diagrams, textual descriptions, models or any other method that shows how the required functions are achieved through the concept. 134 Revised Theory of Constraints for Company B's N Chart is based on this generic process model / Resources : Time is based on chart titled " Project Timeline for Concurrent Product Development Process at Layton Manufacturing Inc. ". Money is calculated as the sum of the number of hours x the number of employees x the hourly pay for each respecitive department = the average amount spent on this process (rounded up to the nearest $1000). - Pay rates: Marketing, $20.00/hr; Product Development Director, $40.00/hr.; Company owner, $50.00/hr.; Production Manager, $30.00/hr.; Engineering, $25.00/hr.; Manufacturing, $20.00/hr.; Sales, $20.00/hr. Service Manger, $30.00/hr.; Avg. = $30.00/hr. - Personnel Invovled: CO = Company Owner, PDD = Product Development Director, PM = Production Manager, MRKT = Marketing, ENGR = Engineering, SLS = Sales, MANF = Manufacturing, EU = End User. VND = Vendor, SM = Service Manager. Followed by the number of people invovled from the respective area. Deliverables: T = Tangible (something you can touch), NT = Non-tangible /1) 2-3 Days 2) $7000- $8000 CO(1), POD(1), PM(1), ENG i ­ MANF(2), MRKT(2), SLS(1), SM(1) 1) 2-3 Days 2) $7000 - $9000 CO(1), PDD(1), PM(1), ENGR(4 , MANF(2), MRKT(2), SLS(1), SM(1) 4) Product specifications, concept sketches, block diagrams, textual desaiptiais. models or any other method that shows how the required functions are achieved through e concept. / 4) Pro-planning matrbc, program schedulo-\\ completed OFD diagram, product specifications, concept sketches, block diagrams, textual descriptions, models any other means of showing how ugh required functions are achieved the concept. Evaluate CPDP2.1-B Concept Approval, T) A concept is selected for production (1) To allow managements evaluation of the selected concept and ensure that everyone involved in the process has had a chance to (1) The evaluation of the concepts based on some sort of decision making process and the eventual selection of a single concept. 2) Product specifications in terms of function required, manufacturing process The declaim Is n T) The decision to do one of the following: 1) Proceed Into detail design phase with the chosen concept 2) Generate more concepts (CPDP 1.9) 3) indentify another concept or idea or conduct competitive market analysis /market research/engineering assessment (CPDP 1.0) have their voice heard before continuing the product development process. The dear anoth standards or codes that must be satisfied, competiticn's (if any) design of similar product, concept sketches, block diagrams, textual descriptions, models a- any other method that shows how the required functions are achieved through the conduct a /market resea s, concept. Modify Prototype Assembly Modify Prototype Detal 1) 14 16 Days 2) $39,000 $45,000 3) PDD(1), ENGR(3), PM(1), MANF(10), VND 1) 10-12 Days 2) $10,000 $12,000 3) PDD(1), ENGR(3), VND 4) Prototype virtual part and assembly models, material information, manufacturing process, approved vendors. 4) Initial detail drawings of prototype parts/ assemblies, part/assembly material, manufacturing and assembly information, approved vendors, Figure E.8. Section of the second page of the revised theory of constraints diagram for Company B. 1) 7 -8 Days 2) $11,000 - $12,000 3) PDD(1), ENGR(3), PM(1), MANF(2), VND 4) Product specifications in terms of function required, Manufacturing process capabilities, any requir standards or codes that must be satisfied, concept sketches, block diagrams, textual descriptions, models or any other method that shows how the required functions are achieved through the concept, detail drawings of the prototype parts/assemblies, initial pan/ / assembly bill of materials, initial assembly instructions, Initial detail drawings of prototype parts/assemblies, part/assembly material, manufacturing and assembly 135 any B's New Product Development Process Modify Prototype Parte CPDP 1 9-EConcepts Generated / 1) 10-12 Days 2) $15,000 $18,00 3) P (1), ENGR(3), PM(1), MA (2), VND roduct specifications in terms o function uired, manufacturing process capab"ties, material properties, any required standar or codes that must be satisfied, competition's any) design of similar product, concept sketches, block diagrams, textual descripti s odels or any other method that shows how uired functions are achieved through the the co -pt, prototype virtual parts, approved 4) The decision is made to generate more concepts 1) 10-12 Days 2) $15,000 - $18,000' 3) P D(1), ENGR(3), PM(1), MANP(2), VND 4 Product specifications in terms of function /required, manufacturing process capabilities, ./ any required standards or codes that must be satisfied, competition's (if any) design of similar product, concept sketches, block diagrams, textual descriptions, models o any ired other method that shows how the r functions are achieved through the concept, T) The decision to do one ci the following: 1) Proceed into detail design phase with the chosen concept 2) Generate more concepts (CPDP 1.9) 3) Indentify another concept or Idea or conduct competitive market analysis /market reseruchrengineering assessment (CPDP 1.0) vendors. approved vendors. CPDP 2.3- prototype Virtual Assembly The desicion is made to proceed into detail des with the chosen concept CPDP2.2-prototype Virtual Part Modeling The decision is made to indentify another concept or idea or conduct competitive market analysis /market research/engineering assessme 1) The concept is approve by management NT) Virtual models of the prototype parts with the material and manufacturing process selected. NT) The decision to either manufacture the part in house or have the part manufactured by a vendor. Virtual part models with enough detai (i.e. part for material, and manufacturin pr,,.e.e)1illtrilow for a buy vs. make decision to be made and lead to prototyp art manufacture. A 1) CPDP 1 0-Eldentify Concept or Idea ), VND orb required, rewired J, concept ons. ,.// 1)7 8 Days 2) $11,000 $12,000 \ 3) PDD(1), ENGR(3), PM(1), MANF(2); yND 41 Manilfarliirinn nrr-u-pce ranahilitipe atIv Figure E.9. Section of the second page of the revised theory of constraints diagram for Company B. 1) 7 8 Days 2) $11,000 $12,000 NT) The parts being designed meet the design requirements as an asseml ly in terms of fit*, form** and NT) Virtual models of the prototype assemblies. 136 Modify Prototype Assembly Modify Prototype 1) 7 -8 Days 2) $11,000 - $12,000 D 1), ENGR(3), PM(1), MANF(2), specifications in terms of function 4) actuirg process capabilities, any requi standards or codes that must be satisfied, corcept sketches, block diagrams, textual descriptions, models or any other method that shows rm./ the required factions are achieved through the corcept, detail 3) 1) 14 - 16 Days 2) $39,000 - $45,000 3) PD0(1), ENGR(3), PM(1), MANF(10), VND 4) Initial detail drawings of prototype parts/ 1) 10-12 Days 2) $10,000 - $12,000 3) PDD(1), ENGR(3), VND < assemblies, part/assembly material, manufactaing and assembly information, approved vendors 4) Prototype virtual part and assembly models, material information, manufacturing process, approved vendors. , \ drawings of the prototype parts/assemblies, inter part/ essembly bill of materials, initial assembly instructio tribal detail drawings of prototype partslassembli part/assembly material, manufactuing and asserlibly irformation vendors, pachasing informatio Approved vendors. CPDP 2.4-B Prototype Detail Developed CPDP 2 6-B Prototype Testing (Fractional) T) Initial detail drawings of the prototype parts T) Initial BOMs (See CPDP 2.4) T) Initial assembly instnxtions 1) The iritial detail drawirgs /­ 1) The prototype parts have of the prototype parts have been completed. T) The initial BOMs (See CPDP 2.4) have been completed. T) The initial assembly instructions have been 11) The prototype virtual part and assembly modeling has been completed. been manufachred and the prototype assembled. q%ProPleted Modify Prototype 1) 7-8 Days 2) $7,000 - $8,000 3) P00(1), ENGR(3) 4) roduct specifications in terms of fu on pacired, any reckired standards or codes thbl must be satisfied, concept sketches, block diagrams, textual descriptions. models or any other method that shows how the requred factions are achieved through the concept, engireenng specifications, detail drawings OY n the prototype parts/assemblies, prod als, version of part/assembly bill of ma production version assembly inst ons. CPDP 2.9-B Technical ilolications Developed The decision is made to generate more concepts 1) 2-3 Days 2) $7000 - $9000 3) CO(1), PD0(1), PM(1), ENGR(4). MANF(2). MRKT(2), SLS(1), SM(1) "Irdormation Requrecr 4) See CPDP T) A completed owner's The dedslon to do ore of the manual with parts list, fotiowing: 1) Proceed into the 1) The prototype has been tested and the necessary Barges made to the design so that engineenng requirements are meet CPDP 3.0-@ Donn Approve' production phase with the prototype 2) Generate more concepts (CPDP 1.9) 3) Identify the need for another proclet or ca-dxt 1) AA stapes of detail design have been completed and the prototype is now ready for crocLetion 2) Managemert approval is now rectiAred for prodtetton of the selected prototype to Figure E.10. Section of the second page of the revised theory of constraints diagram for Company B. competitive market analysis/ market researdVerctineetirg assessmert (CPDP 1.0 8 1.11. Start a new mode developmert process. The decision is made to indentify another corcept or idea or conduct competitive market analysis /market researcNengireering assessment ­ 137 / 1) 7-8 Days 2) $11,000 - $12,000 3) yt3D(1), ENGR(3), PM(1), MANF(2), 4) Pr duct specifications in terms of faction /finanufactuirg process capabilities, any reqU / standards or codes that must be satisfied, concept / sketches, block diagrams, textual desciptions, models or any other method that shows how the reqiired factions are achieved through the concept, detail drawings of the prototype parts/assemblies, initial part/ assembly bill of materials, initial assembly instructio lretral detail drawings of prototype parts/assembli part/assembly material, manufactuing and = = bly irtormation vendors, pirchasing idormation/rIpproved 1 ) 7 - 8 Days 2) $11,000 - $12,000 PC0(1), ENGR(3), PM(1), MANF(2), VND 4) Marufactuing process capabilities, any reqiired standards or codes that must be satisfied, engineerirg specifications, detail drawings of the prototype parts/assemblies, initial part/assembly bill of materials, assembly instructions, approved vendori. 1 ) 7 - 8 Days 2) $11,000 - $12,000 3) PDD(1), ENGR(3), PM(1), MANF(2), VND 4) Engineering specifications, detail drawings of the prototype parts/assemblies, production ready version of part/assembly bill of materials iritial assembly instructions. vendors. -----_,.., 110.-----CPDP 2.6-8 Prototype Testing (Functional) 1) The prototype parts have been manufactured and the prototype assembled. NT) Assessment of prototype factional perforrnarce. NT) Any def icierxies in the prototype that must be corrected in order for the design to meet engineering specificationS. Tr Design Changes ----,, T) A production ready verso '1) The prototype has been p 1) 3 - 4 Days 2) $6,000 - $8,000 ) CO(1), PDD(1), MRKT(2), ENGR(3), PM(1), MANF(2), SLS(1),VND Manufacturing process capabilities, detail drawings of the prototype parts/assembhes. production version of part/assembly bit of materials, production version assembly instructions, program schedde. approved The decision is made to generate more corcepts assembly instructions. r- 1) 10-12 Days 2) $26,000 - $31,000 ENGR(2), PM(1), MANF(10) VND 4) Manufactuing schedule, mantactuing process capabilities, detail drawirgs of the \ prototype parts/assemblies. production versio \of, part/assembly bill of materials, productio 'version assembly instructions, prograd( schedule, approved vendors. / / / 4) ( T) Production ready 1) The prototype has been tested and the necessary charges made to the design so that engineering reqUrements are meet tested and the necessary changes made to the design so that engineering requrements are meet CPDP 1.9-8 Concepts Generated CPDP 2.8-8 Assembly Instructions Completed of the bill of materials. vendors. /3/)/PDD(1), ,--'--­ The dedsion to do one of the folovAng: 1) Proceed Into the production phase with the prototype 2) Generate more concepts (CPDP 1 9) 3) Identify the need for another product or conduct competitive market arelysis/ market research/engineding assessment (CPDP 1.0 & 1.1) Start a new product deveiopmert process. T) A completed The decision is made to proceed irto the production phase with the prototype manufactuing soredde. It) The prototype is approved \ by management for production -i The decision is made to indentify another concept or idea or conduct competitive market analysis /market researchlergireenng assessment Ill. CPDP 1.0-8 Identify Concept or Idea Figure E.11. Section of the second page of the revised theory of constraints diagram for Company B. r1) The schedule reflects appropriate time based on process capabiity. 2) All detail drawings of the prototype parts/assemblies, production version of part/ assembly bill of materials and production version assembly instructions have been completed and U. I! CPDP 3.2-8 Production T) Production models of the selected design 138 Revised Theory of Constraints for Company B's New Chart is based on this generic process model 1) 2-3 Days 2) $7000 $9000 / Resources: - Time is based on chart titled " Project Timeline for Concurrent Product Development Process at Layton Manufacturing Inc. ". Money is calculated as the sum of the number of hours x the number of employees x the hourly pay for each respecitive department = the average amount spent on this process (rounded up to the nearest $1000). - Pay rates: Marketing, $20.00/hr; Product Development Director, $40.00/hr.; Company owner, $50.00/hr.; Production Manager, $30.00/hr.; Engineering, $25.00/hr.; Manufacturing, $20.00/hr.; Sales, $20.00/hr. Service Manger, $30.00; Avg. = $30.00/hr. - Personnel Invovled: CO = Company Owner, PDD = Product Development Director, PM = Production Manager, MRKT = Marketing, ENGR = Engineering, SLS = Sales, MANF = Manufacturing, EU = End User, VND = Vendor, SM = Service Manager. Followed by the number of people invovled from the respective area. Deliverables: T = Tangible (something you can touch), NT = Non-tangible 3) C , PDD(1), PM(1), ENGR(4), MAtilF(2), IvRIKT(2), SLS(1), SM(1), \ND sales information, product specifications, 4) concept sketches, block diagrams, textual descriptions, models or any other means of showing how the required functions are achieved through the concept, engineering specifications, manufacturing schedule, manufacturing process 'capabilities. detail drawings of the prototype parts/ assemblies, production version of part/assemblytoill of materials, production version assembly instructions, program schedule, purchase orders, approved vendors. 1) 4 -6 Days 2) $6,000 $9,000 3) pbD(1), ENGR(3), PM(1), MPNF(2). \ND 4)..Product specifications, concept sketches, block ,.diagrams, textual descriptions, models or any other means of showing how the required functions are achieved through the concept, engineering specifications, manufacturing schedule targets and actual manufacturing time, manufacturing process capabilities, approved vendors, detail drawings of thisprototype parts/assemblies, production verson bill of materials, production of version assembly instructions. program schedule. CPDP 3 3-B Production Model Performance Review 1) Ftecornmendations for any changes in the production model or manufacture of the production model that will decrease time to market, reduce costs and increase overall cornpetitiiheness. 1) The first production models of the product are completed. CPDP 3.4-B Production Approval? 1) The first production units have been produced and are being shipped to the customers. The decisicn to do one of the following: 1) Continue with production of the current design 2) Modify the design and test the changes. (CPDP 2 6) 3) Generate more concepts (CPDP 1.9) 4) Identify the need for another product or conduct competitive market analysis /market research/engineering assessment (CPDP 1.0 & 1.1). Start a new product development process. Thr cork /market 711 the desig Figure E.12. Section of the third page of the revised theory of constraints diagram for Company B. 139 its for Company B's New Product Development Process , CPDP 1 9-8 Concepts Generated 1) ?7? Dap / 3) C 1) 2-3 Days 2) $7000 - $9000 , PDD(1), W(1), ENGR(4), MA4F(2), 2) S??? ­ 3) Any sales information, product specifications concept sketches, block diagrams, textual desaiptions, models or any other means of shoeing how the required functions are achieved through the concept, engineering specifications, manufacturing schedule, manufacturing process capabilities, detail drawings of the prototype p y bill assemblies. production version of part/a of materials, production version instructions, program schedule, purcheSe orders, approved vendors. 4 CPDP 94-9 Production Approval? 1) The first production units, have been produced and are being shipped to the customers. 1), 4) Owner's manual and parts list, any sale6,., information, product specifications, engineering specifications, detail drawings of the prototype parts/assemblies, production version of part/assembly bill of materiais,.., production version assernbly instructions', prog m schedule, purchase orders, approved ven ors, customer files, service sheet. The decision is made to generate more concepts The decision to do one of the following: op( 1), CO(1), P00(1), ENGR(2), F(2), MRKT(2), SLS(2), EU, VND MRKT(2), SLS(1), SM(1), VTNID 1) Continue with production of the current design 2) Modify the design and t the changes. (CPDP 2.6) 3) Generate more concepts (CPDP 1.9) 4) Identify the need for another product or conduct competitive market analysis /market research/engineering assessment (CPDP 1.0 & 1.1). Start a new product development process. The decision is made to continue with production of the current design CPDP 3.5-B Customer Service and Support~ 1) The product has been shipped to customers and is in service. The decision is made to indentify another concept or idea or conduct competitive market analysis /market research/engineering assessment CPDP 1.0-13 Identify Concept or Idea p.1 The decision is made to modify the design and test the changes. (CPDP 2.6) I=12Lti Prototype Testing (Functional) Figure E.13. Section of the third page of the revised theory of constraints diagram for Company B. NT) Service and support of products. 140 \ 1) ??? - ??? Days 2) $??? - $??? CO(1), PDD(1), ENGR(2), PM( D F(2), SM(1), MRKT(2), SLS(2), EU, M 4) Any sales information, product specifications, engineering specifications, detail drawings of the prototype parts/ assemblies, production version of part/ assembly bill of materials, production vers ssembly instructions, program sched purr se orders, approved vendors, c tomer files, service sheet. T) Recycled and/or refurbished and reused products. -1 1) The product has reached the end of its life cycle. Figure E.14. Section of the third page of the revised theory of constraints diagram for Company B. 141 Appendix F: Process Measurement Matrix ...441040t44:0404.> Oposibsm CPDS IAA !ii :1 001110.11./11 x , I /1 11 1 <,40 000) 900 It .44:P*;24 4A #4444334.<>4°:3:4A 64 CO ona 3) mom I 414;10;VAO$P1'4 BLS P) 9441610) i (v (-0 le.404...4:;11 4*. 0+ 4 2 6 ,4:0, 8.4 4 > >4 :::: >4:4:i VW 00 691 (1) 04404111Eirr#"04:044:it 4> 4 : >4,4 OA la I Irg, 44 i4 : IA .4 : 14: po*: P4 (0 I 443#0k*,,4 > N I I PoOo+W '4 :P*4 4: 004.,*4:04:>#4,404:,<:t Ma a. MItles 041;04 PM. PM= UM MP) 4 44:$444:>4:44 :14:490:OS . 0 4 0.4>4*00 °A,4>1 RAM 046166.6 4 )44,1$4>4>< >ill? ..<>< >,,, >0 .4,4,p414 PAM MO* MI) 4 1.6 039/6 00.;."4-41,4<:N . . . .. B. ....,.. Memo NI 7.,:p4ti 9.0-4 ,............., Ms(%) Amp Flo.... 411Pkov4 . r- z tr. z go BII U SA SO ....tt:',;., 11°%7Av... Imlimy. 1 M V.I..' AM= Ti4 1/0=44.4 Imott.?,, "=" s'ir,..ii " "=.." 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II 961. 15 91 IA I1 I 414. 55 I ml 1.8 C9 U 1.2 I 419 12 U 4.2 1 10D 41 1.8 ..412 FM= 1219030 i 00 1.41 11"9 4 ao U . 10 13 1 10 U 10 00 4B 1 IC 717 10 12 . 10 00 U MIMI 117 It 00 U U 190W 10 10 MUM. .411 NI= 00 00 3.1 331411.1 531033 CO 6 IA 19/333 I0 RP U 10 02 111 IA 10 10 SA 02 11C IA 10 10 14= OM ., .1/1294.74 l'i"." AP /1 41.Cm. A 1 " Ul 10= .113 01 21 I ben NOM (%) 4,( 04 tAPPI 5.0 >j* ,C41 4ti.40t1 -... -I. 31 Mt 0341.003 1269 MI 04 4 #044 4:> . 4. 41 i4.% 4:0.44 4"I :>< >4%20 >4 >41 ... ,+.40.4tP. tp*Stt>4.4 66.3=A ;MI I al Figure F.1. Process Measurement Matrix completed for Company B's executive level product development process. 31 0 0 10 4. . 10 U U U U . .. 0 41 85 . .4. . iii Figure F.5 ! iii ii i 11 142 Process Measurement Matrix Key Complex Internal Measurements NA - Not Applicable, No Relationship * - Responsibility For Requirements A 3300.00 $/day B - Market Share Loss of 1%/month C - Company Owner, 3.5% of team, 22% of time, 4% personnel cost D Product Development Director, 3.5% of team, 100% of time, 13% of personnel cost E - Production Manager, 3.5% of team, 67% of time, 6% of personnel cost F - Marketing, 7% of team, 22% of time, 3% of personnel cost G Engineering, 14% of team, 92% of time, 29% of personnel cost H - Sales, 7% of team, 14% of time, 2% of personnel cost I - Manufacturing, 34% of team, 67% of time, 42% of personnel cost J - End User, 7% of team, 3% of time, NA K - Vendor, 17% of team, 61% of time, NA L - Service Manager, 3.5% of team, 12% of time, 1% of personnel cost M Offices and Facilities, 20% of total cost N - Equipment, 30% of cost O Materials, 15% of total cost Management Structures 1 - Schedule (e.g. Gantt Chart) 2 Budget 3 - Product Planning QFD Matrix 4 Subsystem Design QFD Matrix 5 Piece Part QFD Matrix 6 - Business Plan NA Not Applicable Measurements #1 - Experience with this type of design #2 - Experience with this size of production Complex Internal Measurements * - Information Dependency Between Processes a - Lost Profit of $10,000/day Planned Expense of $5000/day 1.7-B Product CPDP 1 9-B Concepts Generated Developed CPDP 1.8-B Program Schedule Specifications Developed CPDP CPDP 1.6-B Program Schedule Estimated Requirements CPDP 1.5-B Conduct QFD Based On Refined Customer CPDP 1.4-B Complete PrePlanning Matrix CPDP 1.3-B Customer Requirements Define( Through Focus Groups Approval? CPDP 1 2-B Project Analysis/Market Research/Engineerint Accpcsment CPDP 1.1-B Competitive Market CPDP 1.0-B Identify Concept or Idea Product Unit Cost Functionality Development Cost Development Time a 3 O Ia Sales/Advertising Distribution CPDP 3.6-B Product Retirement Support CPDP 3.5 -B Customer Service and CPDP 3.4-B Production Approval? CPDP 3.3-B Production Model Performance Review CPDP 3.2 -B Production Manufacturing Scheduling CPDP 3.1 -B Approval? CPDP 3.0 -B Design Developed CPDP 2.9-B Technical Publications Completed Assembly Instructions CPDP 2.8 -B Materials Completed CPDP 2.7 -B Bill of Prototype Testing CPDP 2.6-B CPDP 2.5-B Prototype Build Developed CPDP 2.4-B Prototype Detail Assembly Prototype Virtual CPDP 2.3 -B Modeling CPDP 2.2-B Prototype Virtual Part Approval? CPDP 2.1-B Concept Concepts CPDP 2.0-B Evaluate CPDP 1.9-8 Concepts Generated 145 Operations Measurements CPDP 1.0-A Product Development Process e 16 E i= 1 Yi, E 0. g a . = M M 80 - 85 Days 1.0 8239,000 - $289,000 8/Day 3300 CO (1) Available immediately, 1 PDD (1) Immediately, 1 PM (1) MRKT (2) ENGR (4) 1 gS SLS (2) re MANF(10) EU (2) VND (5) SM (1) Available Available In 14 Days, 1 u_ May 3300.0 2.0 Days, 1 Available In 14 Days, 1 Available In 14 Days, 1 Available In 32 Days, 1 Available In 14 Both 2 and 3 $6,000 S 1 1.0 1.0 0.0 C 1.0 1.0 1.0 1.0 1.0 1.0 1 0.0 0.0 0.0 1.0 1.0 0.0 1 2.0 2.0 2.0 2.0 2.0 0.0 C 0.0 0.0 0.0 2.0 2.0 2.0 NA 0.0 0.0 0.0 2.0 2.0 0.0 #1 #2 0.0 0.0 0.0 2.0 2.0 0.0 #1 NA 0.0 0.0 0.0 2.0 0.0 0.0 C 1111 NA 0.0 0.0 0.0 0.0 0.0 0.0 C NA 0.0 0.0 0.0 0.0 0.0 0.0 C Both 1 and 2 Both 1 and Both 1 and 2 Both 1 and 2 Bo an Both 1 and 2 Both 1 and Both 1 and 2 Both 1 and 2 Bo an Both 1 and 2 Both 1 and Both 1 and 2 Both 1 Bo 2 and 2 an 1.2 5.8 1 #2 #1 NA 8/Day/Person Both 1 and 2 1.0 2.0 NA NA Both 1 and 2 Both 1 and Equipment 1.0 2.0 NA NA Both 1 and 2 Both 1 and Materials Both 2 and 4 3.0 2.0 2 and 2 2 2 2 Number of customer requirements that have ibeen realized (%) $5, C 6.0 1.2 1.3 1.4 4.8 6.0 2.0 2.0 1.4 4.1 2.4 2.0 1 Both 1 and 6 3.0 3.0 1.8 3.0 1.8 4.8 1 Both 1.0 -: 1.0 Bath 1 and 2 Product Development Time (Days) (..) 1.0 NA 1.0 Reti 00recc 1.0 NA Product Development Cost (S) (Doti .. $6,000 2.0 Both 1 and 4 45 .3U .''. $8,000 1.0 Product Unit Cost (8) 1m 1 co $13,000 1. E 1- 0 (§8g.4c $4,000 t 240.00 15 iiii 4 .9 2 5., re re Days, 1 Offices and Facilities 'Zi $8,000 160.00 NC 03 a. ? 4. a .,00 ,..L., ''''. 8.0 6/Day/Person NC kg 4= 8' co 3.0 200.00 100.00 Ci ; t 5.0 160.00 i/DaylPerson N -, E 3.0 240.00 6/Day/Person Available In 14 3.0 a? .­ i i6 5.0 320.00 Available In 14 Days, 1 5.0 6/DayPerson May/Person U Both 1 and 3 400.00 Available Immediately, 1 0 3.0 May/Person II/Day/Person ...ill' ...: .g 31 d$t. .0 , "A 1 4 3/Day Both 3300.00, 1 and 2 1 and 4 3.0 Both 3 and 6 3.0 Both 2 and 3 1.1 1.8 1.2 8.5 1.8 8.2 1 Achieved Customer Satisfaction (%) Both 1 and 6 Both 2 and 0 3.0 a0 1.1 1.9 1.6 8.9 2.0 7.9 1 Percent Earned Market Share (%) Both 1% /month and 8 8.0 3.0 3.0 1.0 2.0 2.0 6.2 2.4 7.3 1 5.8 1.9 8.0 1 42 1 .e re Average Requirements Importance Rating NA NA NA NA 1.6 2.0 1.8 Average Requirements Quartile NA NA NA NA 3 3 a 3 A product that meets B .1 T. customer's requirements Customer Satisfaction (2) 4.0 $300,000 3.0 3.0 NA NA NA NA 0.0 6.0 3.0 3.0 NA NA NA NA ga 4, E 5c ..a, a? EE g § Ei .1. 6 §v 1 5g2 i 2' --I t (-) 8 re o c o- 1 `'1 t $[ F.15 3.0 NA 3.0 t 8 z. .g t' 4. .g cl = g' . .6. $ LI O- 80 3. .1 25t b 6.,11 Ti' o (S °,,, co c 8 E t.' i' c, Ea To E. NA e), . -=u­ R i 0 cr H IL g ,,, 0 8 o. .§E g ' Et i (..) e e fi ., Figure F.4. Section of Process Measurement Matnx completed for Company B's executive level product development process. 146 8.0 3.0 4.0 12.0 6.0 3.0 7?? ??? 1.0 1.0 80 85 Days $8,000 $8,000 $9,000 $31,000 $9,000 $19,000 ??? 7 7?? 2.0 2.0 $239,000 - $289,000 0.0 0.0 1.0 1.0 0.0 0.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 NA NA 1 1.0 1.0 1.0 0.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 NA NA 1 0.0 0.0 0.0 0.0 0.0 2.0 2.0 0.0 0.0 2.0 2.0 2.0 1.0 1.0 2 3.0 3.0 3.0 3.0 3.0 3.0 4.0 3.0 2.0 3.0 4.0 2.0 2.0 NA NA 4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 1.0 0.0 0.0 1.0 2.0 2.0 1.0 1.0 1 2.0 2.0 0.0 10.0 2.0 2.0 2.0 0.0 2.0 2.0 10.0 2.0 2.0 2.0 2.0 NA NA 10 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 77? ??? NA NA n? 0.0 0.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 0.0 0.0 5.0 5.0 5.0 2.0 5.0 0.0 NA NA 5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 1.0 NA NA 1 Both 1 and Both 1 and Both 1 and Both 1 Both 1 Both 1 Both 1 Both 1 Both 1 Both 1 Both 1 Both 1 Both 1 Both 1 and 2 and 2 and 2 and 2 and 2 and 2 and 2 and 2 and 2 1.0 and 2 Both 1 and Bot lA and 2 Both 1 and Both 1 and 2 Both 1 and Both 1 and Both 1 and Both 1 Both 1 Both 1 Both 1 Both 1 Both 1 Both 1 Both 1 Both 1 and 2 and 2 and 2 and 2 and 2 and 2 and 2 and 2 Both 1 and Bot and 2 Both 1 and Both 1 lA lA and 2 Both 1 and 2 Both 1 and 2 Both 1 and Both 1 and Both 1 and Both 1 Both 1 Both 1 Both 1 Both 1 Both 1 Both 1 Both 1 Both 1 and 2 and 2 and 2 and 2 and 2 and 2 lA Metal and 2 and 2 2.0 and 2 Both 1 and Bot and 2 Both 1 and Both 1 and 2 Both 1 and 2 Both 1 and 2 4.2 1.1 4.3 3.2 5.4 5.3 4.3 3.9 4.2 5.5 1.4 1.3 1.3 10.4 4.1 10.0 4.4 10.9 1.1 1.1 2.0 2.0 $50,000 3.1 1.4 2.0 2.7 2.7 6.2 8.2 4.1 15.4 4.1 4.1 4.1 2.7 2.7 2.7 10.6 3.1 8.2 NA NA 2.0 6.0 $283,000 1.7 4.8 1.8 4.8 1.8 3.0 1.8 1.8 7.2 7.2 7.2 9.6 4.8 4.8 4.8 4.8 1.8 2.4 7.2 3.6 1.8 NA NA 1.0 1.0 85 1.1 9.9 1.0 4.6 4.3 9.4 4.3 3.7 3.9 3.1 4.0 1.0 1.0 1.0 10.0 2.1 3.8 3.8 7.7 1.0 1.0 NA NA 95 8.2 1.2 5.6 1.2 5.7 5.5 10.9 3.3 3.4 3.3 3.3 3.3 1.1 1.2 1.1 10.4 2.4 3.8 3.7 8.3 2.4 1.4 6.0 6.0 85 7.9 1.1 5.6 1.2 5.6 5.6 11.1 3.5 3.5 3.4 2.7 3.5 1.1 1.1 1.1 10.1 2.8 4.0 3.7 8.3 2.3 2.0 6.0 6.0 35 7.3 1.3 5.5 1.3 4.2 3.8 6.9 5.0 4.7 4.3 8.4 4.2 2.3 2.3 2.0 7.6 2.8 6.8 3.7 7.2 1.7 1.4 NA NA NA 6.0 a 0 al 0 CD 0 0 NA NA NA (3 3.0 NA NA NA 5.0 NA NA NA NA NA NA NA NA NA NA NA NA NA NA Shipping Yes, 95% NA 4.0 Price NA 3.0 4.0 NA NA 5.0 NA NA NA NA NA NA NA NA NA NA NA NA NA NA Shipping Yes, 85% NA NA Price NA 16.0 8.0 12.0 12.0 $18,000 $18,000 $12,000 1.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.0 1.0 1.0 1.0 1.0 0.0 1.0 0.0 0.0 2.0 2.0 0.0 0.0 0.0 4.0 2.0 4.0 4.0 4.0 3.0 3.0 0.0 0.0 0.0 0.0 1.0 1.0 0.0 0.0 2.0 0.0 2.0 0.0 2.0 2.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Both 1 Both 1 Both 1 Both 1 and 2 and 2 and 2 and 2 Both 1 and 2 Both 1 Both 1 Both 1 and 2 and 2 and 2 Both 1 Both 1 Both 1 Both 1 and 2 and 2 and 2 5.6 1.0 2.0 3.0 8.0 3.0 5.0 $6,000 $5,000 $9,000 $4,000 $6,000 0.0 0.0 0.0 0.0 0.0 1.0 1.0 1.0 1.0 1.0 1.0 0.0 1.0 0.0 1.0 0.0 0.0 0.0 2.0 2.0 0.0 1 0° m? = -0 ..'12. 0 .., 0 E - 0:1 -0 a) iii 6 I ? 2. E E E r 21 a la "g I1 13 .*: a? 0 co Li' " =a =) oLL cl 72 0°- g Cl­ to co = 'a ,­ Ei o. TD ',to? A TA - 4, c.) co g,.1 (-) $45,000 $12,000 0 2 1 N: $9,000 $9,000 RE C e is. 3 g 0 § o 2 c'i =9 c.g. ka 0 ;74 fa, Pilm cc.lic° i '",',:)mi E :it' 1 ,­ n 1 c.) 25 :5 I1 I ;tic° CI crcEs S2 o2 e5,E 8.0 8.0 12.0 3.0 3.0 8.0 $12,000 $12,000 2 1 tsi cl 1 op 8 ,-, li il I1 n a? . co = To k 0 . . .2, P Aa) A co . (N 17,' I Q. 2 75 0i / cc, I . 03 ct c3) la- = CL CD 0 - g. 2. SLA 1 op ci cl i A. in h1 h1 h1 t 1Ct 8 m g cr) .;1 . 4j 0 CL CL C. O. C.) .? 11 co il'i r.) . . .2 i °? CO E P g .... Ce Figure F.S. Section of Process Measurement Matrix completed for Company B's executive level product development process. s. 12 1 1 Standard Medium - Production