Tools & Trends in Product Development 1 Percent of Current Sales Contributed by New Products 70% 60% High Tech All Firms Low Tech 50% 40% 30% 20% 10% 0% Bottom Third Middle Third Top Third Self Reported Standing in Industry 2 Most Successful Decay Curve 100 90 80 70 60 1990 50 1995 40 30 20 10 0 Ideas Tested Launched 3 Success Design Processes 4 NPD Processes in Use in the US Other 3rd Gen. Stage Gate Facilitated Stage Gate 1 STAGE GATE PROCESSES 56 % Stage Gate Functional, sequential Informal None 0% 5% 10% 15% 5 20% 25% 30% Process Tasks … ► Product Line Planning Portfolio, Competition ► Strategy Development Target Market, Needs, Attractiveness ► Idea/Concept Generation Opportunities and Solutions ► Idea Screening Sort, Rank, Eliminate 6 … Process Tasks ► Business Analysis Business Case, Development Contract ► Development Convert Concept into Working Product ► Test & Validation Product Use, Market ► Manufacturing Development Developing and Piloting Manufacturing Process ► Commercialization Launch of Full-Scale Production and Sales 7 Tasks Included in Processes Commercilization Manufacturing Development Test & Validation Development Business Analysis Screening Idea Generation Project Strategy Product Line Planning 0% 10% 20% 30% 40% 50% 8 60% 70% 80% 90% 100% Projects Completing Tasks Commercialization Manufacturing Development Test & Validation Development Business Analysis Screening Idea Generation Project Strategy Product Line Planning 0% 10% 20% 30% 40% 50% 9 60% 70% 80% 90% 100% Average Time Spent on Tasks Product Line Planning Project Strategy Idea Generation Screening Business Analysis Development Test & Validation Manufacturing Development Commercialization 0 5 10 15 weeks 10 20 25 30 35 Percentage of Projects Using Multifunctional Teams New-to-World New-to-Firm Major Revision Cost Reduction Repositioning Minor Improvement 0% 10% 20% 30% 40% 50% 11 60% 70% 80% 90% 100% Tools 12 Perceived Importance and Use of Marketing Research Tools Voice of Customer Importance Degree of Use 5 Pre-Test Markets 4 Customer Site Visits 3 2 1 Test Markets Concept Tests 0 Conjoint Analysis Focus Groups Beta Testing 13 Perceived Importance and Use of Engineering Tools Importance Degree of Use Rapid Prototyping 5 Virtual Design 4 Concurrent Engineering 3 2 Perfomance Simulation 1 Design for Manufacturing 0 FMEA CAD Value Analysis CAE 14 Perceived Importance and Use of Organization Tools CPMPERT GANNT 5 Leaderless Teams Importance Degree of Use Champions 4 3 2 Colocated Teams Process Owner 1 0 QFD TeamBuilding Drill Matrix Organization Heavyweight Manager Self Directed Teams 15 Perceived Importance: Top 5 ► ► ► ► ► Voice of the Customer (4.2) Customer Site Visits (3.9) Rapid Prototyping (3.9) Project Scheduling Tools (3.9) Product Champions (3.9) 16 Frequency of Use: Top 5 ► ► ► ► ► Project Scheduling Tools (3.7) Voice of Customer (3.6) Customer Site Visits (3.5) Computer-Aided Design (3.4) Matrix Organizations (3.2) 17 Performance 18 Past and Future Impact of New Products 45.0% 40.0% Percent of Total 35.0% Past 5 Years Next 5 Years 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% New Product Sales New Product Profits 19 Product Success ► Successful Products (subjective) 55.9 % ► Profitable 51.7 % ► Still on market after 5 years 74.1 % 20 Performance Criteria Financial Performance Customer Acceptance Technical Performance Repositioning Incremenatal Improvement Next Generation New Product Line New To World 0 0.1 0.2 0.3 0.4 21 0.5 0.6 0.7 0.8 0.9 1 Average Length of Development Projects Incremenatal Improvement Next Generation New Product Line New To World 0 5 10 15 20 WEEKS 22 25 30 35 40 45 Further Reading ► Rosenau et al. “The PDMA Handbook of New Product Development” Data Source for preceding slides ► Cooper, Robert G. “Winning at New Products” Stage-Gate Processes 23 Tools For Innovation: The Design Structure Matrix Thomas A. Roemer Spring 06, PD&D 24 Outline ► Overview Traditional Project Management Tools and Product Development ► Design Structure Matrix (DSM) Basics How to create Classification ► The Iteration Problem: Increasing Development Speed Sequencing, Partitioning and Simulation ► The Integration Problem: DSM Clustering Organizational Structures & Product Architectures 25 Classical Project Management Tools Charts ►Graph-based: Activity ►Gantt PERT, CPM, IDEF 26 Time Characteristics ► Complex Depiction ► Focus on Work Flows DSM focuses on Information Flows ► Ignore Iterations & Rework Test results, Planned design reviews, Design mistakes, Coupled nature of the process ► Decomposition & Integration Assume optimal Decomposition & Structure Integration of Tasks not addressed 27 Design Iteration ► Iteration: The repetition of tasks due to new information. Changes in input information (upstream) Update of shared assumptions (concurrent) Discovery of errors (downstream) ► Fundamental in Product development Often times hidden ► Understanding Iterations requires Visibility of information flows 28 A Graph and its DSM B A C D E F A B C D E F G H I I G H 29 A A B B X C X D E F G H I X C D X E X X F X X G H X I Creating a DSM ► Design manuals ► Process sheets ► Structured expert interviews Interview engineers and managers Determine list of tasks or parameters Ask about inputs, outputs, strengths of interaction, etc Enter marks in matrix Check with engineers and managers ► Questionnaires 30 Four Types of DSMs Iteration Activity based DSM Parameter based DSM Sequencing Partitioning Simulation Integration Team based DSM Product Architecture DSM Clustering 31 Iteration Focused Tools Concepts, Examples, Solution Approaches 32 Sequencing Tasks in Projects Possible Relationships between Tasks A A A B B Independent (Parallel) Interdependent (Coupled) B Dependent (Series) 33 DSM: Information Exchange Model Interpretation: ► Rows: Required Information A B C D E F G H I J K L A B C D E F G H I J K L D needs input from E, F & L. • • ► • Columns: Provided Information B transfers info to C,F,G,J & K. • Note: ► Information flows are easier to capture than work flows. ► Inputs are easier to capture than outputs. • • • • • • • • 34 DSM: Partitioned or Sequenced B C A K L J F I E D H G Task Sequence B C A K L J F I E D H G • Series • Parallel • • • Coupled • • • • • • • 35 Sequencing Algorithm ► ► ► ► ► ► ► Step 1: Schedule tasks with empty rows first Step 2: Delete the row and column for that task Step 3: Repeat (Go to step 1) Step 4: Schedule tasks with empty columns last Step 5: Delete the row and column for that task Step 6: Repeat (Go to step 4) Step 7: All the tasks that are left unscheduled are coupled. Group them into blocks around the diagonal 36 Example: Brake System Design 1 2 Customer_Requirements 1 1 Wheel Torque 2 2 Pedal Mech. Advantage 3 X System_Level_Parameters 4 X Rotor Diameter 5 X X ABS Modular Display 6 X Front_Lining_Coef._of_Friction 7 Piston-Rear Size 8 X Caliper Compliance 9 Piston- Front Size 10 X Rear Lining Coef of Friction 11 Booster - Max. Stroke 12 Booster Reaction Ratio 13 X 37 3 4 5 6 7 8 9 10 11 12 13 X 3 X X 4 X X 5 X X X X X X X X 9 X X 10 X X 11 X X X 6 X X X X X X X X X X X X X X 7 X 8 X X 12 X X X X X X X 13 Partitioned DSM: Brake Design Customer_Requirements System_Level_Parameters Wheel Torque Piston- Front Size Piston-Rear Size Pedal Mech. Advantage Rear Lining Coef of Friction Front_Lining_Coef._of_Friction Booster Reaction Ratio Rotor Diameter Booster - Max. Stroke Caliper Compliance ABS Modular Display 1 4 1 1 4 X 4 2 X 10 X 8 X 3 X X 11 X 7 X 13 X 5 X X 12 9 X 6 38 2 10 8 3 11 7 13 5 12 9 6 2 X 10 X X X 8 X X X X X X X X X X X X X 3 X X X 11 X X X 7 X X X X X 13 X X X X X 5 X 12 X X 9 X 6 Semiconductor Design Example Set customer target Estimate sales volumes Establish pricing direction Schedule project timeline Development methods Macro targets/constraints Financial analysis Develop program map Create initial QFD matrix Set technical requirements Write customer specification High-level modeling Write target specification Develop test plan Develop validation plan Build base prototype Functional modeling Develop product modules Lay out integration Integration modeling Random testing Develop test parameters Finalize schematics Validation simulation Reliability modeling Complete product layout Continuity verification Design rule check Design package Generate masks Verify masks in fab Run wafers Sort wafers Create test programs Debug products Package products Functionality testing Send samples to customers Feedback from customers Verify sample functionality Approve packaged products Environmental validation Complete product validation Develop tech. publications Develop service courses Determine marketing name Licensing strategy Create demonstration Confirm quality goals Life testing Infant mortality testing Mfg. process stabilization Develop field support plan Thermal testing Confirm process standards Confirm package standards Final certification Volume production Prepare distribution network Deliver product to customers S E E x x • • x • x x x x x x S D M x x x • x x • x x • x x x x x x x x x x x x x x x x x x x x x x F D C S W H W D D B F D L I R D F V R C C D D G V R Concurrent Activity Blocks x x x x x x x x • x x • x x • x x x x • ³ ³ ³ ³ ³ x x • x x x x x x x x • x x x x x • x x x • x x x x x • x x x x x • x x x x x x x x x x x x x x x x • x x x x x x x x • x x x x x x • x x x x x x x • x x x x x x x x • x x x x x x x x • x x x x x x x x x • x x x x x x x • x x x x x x • x x x x x x x x • x x x • x x x x x • x x x x x x x x Sequential Activities x x x x x x x x ³ ³ ³ ³ ³ ³ ³ ³ • x x • x • x • x x ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ x x • x • ³ ³ ³ x • x x • x • x • x • x x • x x • x x x x • • x x x • x • x x x x x x x x x x x ³ ³ ³ ³ ³ ³ ³ ³ ³ x x x • x • x x • x x x • x x x • x x x ³ • x x ³ ³ Parallel Activity Blocks x ³ ³ x x x F V P D Potential Iterative Loops x x x x x x M D T C C • x x I Generational Learning Feedback x x x S C D P F S F V A E C D D D L C C L ³ ³ ³ x x x 39 x ³ ³ • x x x x x x x x x x x x x x x x x x x x x • x x x x x x • x x x • x x x • x x • x x • x • Task Sequencing Example Space Shuttle Main Engine 40 Engine Components 41 Dependency Relations in Conceptual Design Block ACTIVITIES SSP Engine Balanc e 1 CMT Mak e Pr eliminar y Mat er ial Selec t ions 2 CST Assess Pump Housing 3 Design Pump Housing 4 CST Assess Tur bine Housing 5 1 2 4 0.15 1 0.5 3 4 5 7 7 0.1 0.1 8 1 0.2 4 CST Ev aluat e Rot or Siz ing 10 11 12 13 14 15 16 17 18 19 0.1 1 0.1 1 1 22 1 0.1 1 0.1 1 0.1 6 0.2 0.5 0.1 1 25 26 27 0.1 0.2 1 1 0.1 6 0.2 1 8 0.3 1 1 0.1 0.1 1 2 CDE Design Rot or 14 15 CDE Posit ion Bear ings and Selec t ion 16 0.2 CDE Design Tur bine 17 0.2 CDE Int egr at e Rot or and St r uc t ur e Lay out 18 0.2 1 0.1 1 1 1 1 1 2 0.2 1 4 0.2 1 0.3 1 0.2 8 0.1 1 0.2 0.1 1 1 0.3 0.1 CDE Dev elop Thr ust Balanc e 22 0.2 0.1 4 2 1 0.3 0.1 1 0.1 6 1 1 1 1 1 1 CRD Ev aluat e Design 25 2 1 26 1 0.5 0.1 1 1 42 1 1 1 0.2 CRD Def ine Linear Rot or dy namic Behav ior 24 0.1 4 1 CSL Def ine Indiv idual Sealing Element s 21 0.1 0.1 2 0.1 1 0.1 1 CDE Inc or por at e Seal Dimensions 19 Design Tur bine Housing 27 24 1 CBR Det er mine Bear ing Geomet r y CDE Analy z e Weight 23 1 1 CDE Inc or por at e Bear ing Dimensions 13 CRD Build Finit e Element Model 23 21 0.1 12 CSL Def ine Seal Sy st em 20 20 4 CST Compar e Design Impeller Tip Speed… 9 CDE Design Pumping Element s 11 9 0.1 0.1 CST Compar e Design Pit c hline Veloc it ies… 8 CHX Det er mine Pumping Component s 10 8 0.1 CST Compar e Design Annulus Ar ea… 6 CAX Det er mine Opt imum Tur bine St aging 6 0.2 1 0.2 1 0.1 4 4 Block Decomposition min ∑ aij nij yij ij∈A M ∑x s.t. m =1 im = 1, ∀ i N ∑ xim ≤ C , ∀ m i =1 xim − M ∑x h = m +1 jh − yij ≤ 0, ∀ i, j , m xim , yij ∈ {0,1}, ∀ i, j , m i,j = index for activities, i,j = 1,2,…,N; m = index for stages, m = 1,2,…,M; A = the set of directed arcs in the design graph; aij = the level of dependency of activity i on j ⎧1 if activity i is assigned to stage m xim = ⎨ ⎩0 otherwise ⎧0 if arc ij is a feed back between stages yij = ⎨ ⎩1 otherwise ⎧W nij = ⎨ ⎩1 43 (a large number) if aij = 1 otherwise Resulting Structure for Conceptual Design Block ACTIVITIES 1 10 1 4 0.1 CHX Det ermine Pumping Component s 10 1 6 0.1 1 1 SSP Engine Balance CST Compar e Design Impeller Tip Speed… 9 MT Make Preliminar y Mat erial Select ions 2 CAX Det ermine Opt imum Tur bine St aging 7 9 1 7 CDE Design Turbine CST Evaluat e Rot or Sizing 1 0.1 11 12 6 0.1 0.1 16 21 19 17 6 0.2 1 0.1 0.2 1 1 1 0.2 1 1 0.2 1 0.3 0.1 0.3 0.1 1 1 2 1 0.3 1 5 23 24 25 26 0.1 0.2 1 1 4 0.5 0.5 14 0.2 DE Int egrat e Rot or and St ruct ure Layout 18 1 1 1 1 0.1 1 1 CDE Design Rot or 0.1 0.1 0.2 0.1 2 1 1 1 1 1 4 0.2 1 8 4 1 1 0.1 0.1 0.2 0.1 2 0.1 0.2 1 8 0.2 1 5 1 CRD Build Finit e Element Model 23 0.1 1 1 1 0.1 0.1 0.1 6 4 1 0.3 1 1 1 CRD Evaluat e Design 25 CDE Analyze Weight 22 0.1 2 1 15 RD Def ine Linear Rot or dynamic Behavior 24 18 0.2 4 0.1 Design Tur bine Housing 27 CST Assess Tur bine Housing 14 0.1 CDE Incorporat e Bearing Dimensions 13 CDE Develop Thrust Balance 22 27 0.1 CDE Incorpor at e Seal Dimensions 19 4 3 1 CSL Def ine Individual Sealing Element s 21 3 4 8 1 16 Design Pump Housing 13 0.1 4 0.5 12 CST Assess Pump Housing 15 0.2 0.1 CSL Def ine Seal Syst em 20 CBR Det er mine Bearing Geomet ry 20 1 CST Compare Design Annulus Ar ea… 6 CDE Posit ion Bear ings and Select ion 17 0.1 0.2 ST Compare Design Pit chline Velocit ies… 8 CDE Design Pumping Element s 11 8 0.15 0.1 0.1 1 2 2 1 26 1 44 1 0.2 4 STC’s Existing Process Conceptual Design Negotiation Detail Design Manufacturing & Testing Program Office Project Team Functional Departments 45 Proposed Process Conceptual Design Negotiation Detail Design Manufacturing & Testing Core Design Team Program Office Functional Departments 46 Pilot Project Performance Conceptual Design Detail Design As-Is 9d To-Be 20 days 0 Fabrication & Test 39 days 10 20 68 days 25 days 30 40 27% Savings 40 days 50 60 70 80 90 Project Completion Time [days] 47 100 110 DSM Simulation X Task A Task B X Task C ► Task A requires input from task C ► Perform A by assuming a value for C’s output ► Deliver A’s output to B ► Deliver B’s output to C ► Feed C’s output back to A Check initial assumption (made by A) ► Update assumption and repeat task A. 48 X Simulating Rework R Task A Task B X X Task C R is the probability that Task A will be repeated once task C has finished its work. R = 0.0 : There is 0 chance that A will be repeated based on results of task C. R = 1.0 : There is 100% probability that A will be repeated based on results of task C. 49 Simulating nd 2 Order Rework X Task A Task B R2 X Task C Second Order rework is the rework associated with forward information flows that is triggered by feedback marks. First order rework: Output of task C causes task A to do some rework 2nd order rework: Consequently there is a chance tasks depending on A (e.g. task B) will also be repeated. 50 Simulating Rework Impact I Task A Task B X X Task C I = 0.0 : If task A is reworked due to task C results, then 0% of task A’s initial duration will be repeated I = 1.0 : If task A is reworked due to task C results, then 100% of task A’s initial duration will be repeated 51 Simulation Results Impact Rework Information Flow .5 .5 .5 .9 .5 .9 .9 X .5 .5 .5 .9 .5 X X .5 .9 .9 .5 .9 X .9 .9X X .9X X X X Target ► 1.0 ► 0.8 ► 0.6 0.4 0.2 0.0 120 126 132 138 144 150 156 162 168 174 180 ► DSM contains rework probabilities and impacts Cost and time add up Many runs produce a distribution of total time and cost Different task sequences can be tried Schedule (days) Source: “Modeling and Analyzing Complex System Development Cost, Schedule, and Performance” Tyson R. Browning PhD Thesis, MIT A&A Dept., Dec 99 52 Activity Gantt Chart with Iteration 0 20 40 60 80 100 Ela p s e d T im e (Da ys ) 2 3 4 5 6 7 8 9 10 11 12 13 1 41 2 0 15 16 17 14 140 113 60 Typical Gantt chart shows monotone progress ► Actual project behavior includes tasks stopping, restarting, repeating and impacting other tasks ► Source: “Modeling and Analyzing Complex System Development Cost, Schedule, and Performance” Tyson R. Browning PhD Thesis, MIT A&A Dept., Dec 99 53 13 Lessons Learned: Iteration ► ► ► ► Development is inherently iterative Understanding of coupling is essential Iterations improve quality but consumes time Iteration can be accelerated through ► Information technology (faster iterations) Coordination techniques (faster iterations) Decreased coupling (fewer iterations) Two Types of Iteration Planned Iterations (getting it right the first time) Unplanned iterations (fixing it when it’s not right) 54 Integration Focused Tools Concepts, Examples, Solution Approaches 55 Team Selection ► Team assignment is often opportunistic “We just grab whoever is available.” ► Not easy to tell who should be on a team ► Tradition groups people by function ► Info flow suggests different groupings ► Info gathered by asking people to record their interaction frequency with others 56 Clustering a DSM A B C D E F G A A B B C C D D E E F F G G A F E D B C G A A F F E E D D B B C C G G No Dependency Hi Low 57 Alternative Arrangement Overlapped Teams A F E D B C G A A F F E E D D B B C C G G A F E D B C G A A F F E E D D B B C C G G No Dependency Low Hi 58 GM’s Powertrain Division ► 22 Development Teams into four System Teams Short block: block, crankshaft, pistons, conn. rods, flywheel, lubrication Valve train: cylinder head, camshaft and valve mechanism, water pump and cooling Induction: intake manifold, accessory drive, air cleaner, throttle body, fuel system Emissions & electrical: Exhaust, EGR, EVAP, electrical system, electronics, ignition 59 Existing PD System Teams A Engine Block A Crankshaft F Flywheel G Pistons D Connecting Rods E Lubrication I Cylinder Heads B Camshaft/Valve Train C Water Pump/Cooling J Intake Manifold K Fuel System P Accessory Drive H Air Cleaner N A.I.R. O Throttle Body Q Exhaust E.G.R. EVAP Ignition E.C.M. F G z z D E I B C J K z z z z z z z z F z z z z z z z Team 1 z z z G z z z D z z z z z z z z z z E z z Team 2 z z z z z I z z z z z B z z z z z z z z z z C z z z z z z J z z z z z z z K A z z z z z z M z z O z z z z z Electrical System U z z z z Engine Assembly V z z z z z z z z z z Team 3 z z z z z z z z z z z O z Q z z z z z z z z z z z z z z z z z z z Low z z z z Average 60 z z z z z z z z z z z z z z z z z z z z z z z z Team 4 z z z z z z z z z M z z z z z z z z z z z z z R z z z z z z z z z z z z U z z z z z V Level of Dependence z High z z z z z z z z L z z z z V z z z z z U z z z z T z z z z z S z z z z z R z z z z M z z z L z z z z z Q z z z z T N z P R S H z z z H z z z N z z z z z L P z z z z z T z z S z z Proposed PD System Teams Crankshaft F F z z z z z Flywheel G z z G Connecting Rods E Pistons D Lubrication I Engine Block A Camshaft/Valve Train C Cylinder Heads B1 z z z z z E z z z z z D z z z z z I z z z z z z z z z z z Intake Manifold K1 Water Pump/Cooling J z z z z z z z z z z C z z z z z z z z z z z z Throttle Body Q EVAP R Cylinder Heads B2 Intake Manifold K2 z z S z z Engine Assembly V z z z z z z P z z z N z z z Q z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z High z 61 Average z z z z z z z z z z z z z Low z z z z z z z z z z z z z z z z K2 z z z z z O z z z z z z L z z z z M z z z z z H z z z z Level of Dependence z z z z z Team 4 System Integration zTeam z z z z z z z z z z z z z z B2 z z z R z z z z z z z z z z Team 3 z z z z H Electrical System U Team 2 z M T z z z z z J Air Cleaner N E.G.R. Accessory Drive Ignition E.C.M. z z z z z z z B1 z z z z K1 z z z z z z Fuel System P A.I.R. O Exhaust L z Team 1 A z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z T z z z z U z z z z V S Lessons Learned: Integration ► Large development efforts require multiple activities to be performed in parallel. ► The many subsystems must be integrated to achieve an overall system solution. ► Mapping the information dependence reveals an underlying structure for system engineering. ► Organizations and architectures can be designed based upon this structure. 62 Conclusions ► The DSM supports a major need in product development: documenting information that is exchanged ► It provides visually powerful means for designing, upgrading, and communicating product development activities ► It has been used in industry successfully 63 Additional Material ► Eppinger, S.D., "Innovation at the Speed of Information," Harvard Business Review, January, 3-11, 2001. 64 MIT OpenCourseWare https://ocw.mit.edu 15.783J / 2.739J Product Design and Development Spring 2006 For information about citing these materials or our Terms of Use, visit: https://ocw.mit.edu/terms.