Chapter 1: Introduction
Chapter 2: Development
Processes and Organizations
Chapter 3: Product Planning
Product Design and Development
Fourth Edition
by Karl T. Ulrich and Steven D. Eppinger
This represents crossfuntional teams
Functions –
Could be Design,
Manufacturing,
Marketing, etc.
Most designs
are one of these two, with
Examples
Market pull as the primary.
Process Type
Description
Market Pull
Team begins with market opportunity
and selects technology to meet
customer needs.
Fuel efficient cars
Technology Push
Team begins with a new technology,
then finds an appropriate market.
Velcro
Platform Products
The team assumes that the new
product will be built around an
established technological subsystem.
Many new cars share the same
chassis (Civic and CRV) (Nissan Ultima
and Maxima –just laser blank
different wheel base)
Process-Intensive
Products
Characteristics of the product are
highly constrained by the production
process.
Coke
New products are slight variations of
existing configurations.
Boiling water reactor pressure vessels
High-Risk Products
Technical or market uncertainties
create high risks of failure.
Nuclear power plants, drug delivery
devices
Quick-Build
Products
Rapid modeling and prototyping
enables many design-build-test
cycles.
Software
Complex Systems
System must be decomposed into
several subsystems and many
components.
Space shuttle
Customized
Products
More than one of these may apply.
http://en.wikipedia.org/wiki/Technology_push
Aerogel is a
technology
looking for
commercial
applications
http://cleantechnica.com/files/2009/02/ls.jpg
Aging Baby
Boomers have
created a number
of marketing
opportunities
https://www.besttvbuys.com/loudandclear/index.asp?did=97
8&refcode=lnc4
Customized Products
While Pacific Bearing has a large number of stock choices, they also sell
unique combinations and modifications of existing designs
http://www.pacific-bearing.com/default.aspx
Platform Products
Dyson Vacuum cleaners are all
built around the same “Cyclone”
http://www.unplggd.com/uimages/unplggd/james_dyson_sz.jpg
Risk
Companies face many forms of risk which they
need to report in an SEC filing.
We will look at the issues raised by Medtronic (a
medical device company) in their SEC filing.
Name the risks you expect Medtronic to list.
From the 2011 SEC 10K filing
• Market competition,
Price Risk
• Supply Chain
• Government Regulation
• Reimbursement Rates
• Quality Issues
• Intellectual Property
• Product Liability
• Obamacare Tax
•
•
•
•
•
•
•
R&D Pipeline
Customer Relations
Credit Markets
Clinical Trials
Business Acquisitions
Global Business
Tax Law (International)
Product Development Process
Planning
GM sees
Energy Crisis,
needs better
gas mileage
Concept
Development
System-Level
Design
Detail
Design
Testing and
Refinement
Production
Ramp-Up
Four
Phases
of Product Development
3 speed
to 4 speed
or
Continuously variable
(GM Tech Center)
The product planning phase precedes the product development process.
For transmissions,
more speeds =
better mileage
e.g. Find clutch area
needed for full throttle
upshift with current
engine.
(Division Level)
ZF’s 8-Speed Automatic Transmission - Tech Dept.
BY K.C. COLWELL
December 2009
Xerox Lakes Project Example
Xerox Document Centre 265
The Product Planning Process
Multiple Projects
Identify
Opportunities
Evaluate and
Prioritize
Projects
Portfolio
of
Projects
Allocate
Resources and
Plan Timing
Product
Plan
Complete
Pre-Project
Planning
Mission
Statements
Product
Development
Process
A Product Plan
Hodaka
New
Platforms
Legend
Lakes
Project
Product
Release
H-Net
Derivatives
L-Net
Improvements
595
6010
Fundamentally New
1996
392
393
Astro
1997
1998
1999
2000
Market Segmentation
• A market segment is a group of actual or potential customers who can be
expected to respond in a similar way to a product or service offer. They
want the same types of benefits or solutions to problems from a product
or service, or they respond in a similar way to a company’s promotional
programs.
• Successful segmentation:
– Heterogeneity of wants and needs. Customers will actively seek and pay a
premium for products and services that better meet their wants/needs.
– Customers do cluster into specific groups whose members’ needs are more
similar to those of other customers in that groups than they are to the needs
of customers in other groups. (Tennis shoes)
– The costs of serving a customer in a segment must be no more than they are
willing to pay.
When successful segmentation conditions exist, a firm that does not segment the
market presents its competitors with an opportunity to enter the market.
Market Segment Map
65 ppm
65 ppm
network
$31k
$23k
55 ppm
Department
$20k
Market Segment
40 ppm
60 ppm
network
$35k
Lakes
Project
$16k
25 ppm
$10k
35 ppm
$15k
Lakes
Extensions
Legend
40 ppm
$20k
Xerox
product
Workgroup
30 ppm
$10k
40 ppm
network
$20k
competi tor
product
Hodaka Project
Personal
20 ppm
$8k
25 ppm
$9k
potential
competi tor
30 ppm
$10k
20 ppm
$7k
1997
1998
1999
2000
Year of
Release
Technology S-Curves
Copier Performance
Digital
Technology
Light-Lens
Technology
Time
Technology Roadmap
Fun ctio nal Elements
Techno logies
Pho torecep tor
Cylindrical
Drum
Scann er
Layout
2D CCD Array
w/Op tical Red uc.
Toner
Type
High
Temperatu re
Output
Modes
Mono chro me: Paper, Fax, Scan,
Local Network, Internet
3-Pitch Belt
Pho torecep tor
n-Pitch Belt
Pho torecep tor
Full-Width, Lin ear Array
withou t Optical Redu ctio n
Low Meltin g
Point
Low Meltin g Po int,
Low Emiss ion
Colo r: Paper, Fax, Scan ,
Local Network, Internet
User
Interface
Keyp ad
Touch Screen
Image
Proces sing
600 dpi
Au tomatic Imag e Quality
600/1200 dpi
1200 dpi
Diag nos tics
On-Board
Diag nos tics
Touch Screen, Remote PC
Remote-Dialup
Diag nos tics
1800 dpi
Remote
Rep air
Document
Centre
220, 230
Document
Centre
240, 255, 265
Document
Centre
2XX
Document
Centre
3XX
Hodaka
Project
Lakes
Project
Lakes
Exten sio ns
Next
Platform
Time
Segmentation Examples
Cummins
Peerless Pump
Class 3-4 Truck
Industrial
Class 5-7 Truck
Agricultural
School Bus
Municipal
RV Chassis
Chemical
Construction
Equipment
Building Trades/New
Construction
Dell computers
http://www.dell.com/
Apple Computers
http://store.apple.com/us/browse/home/shop_mac?mco=NzcwNj
gzMA
Harley Davidson http://en.wikipedia.org/wiki/HarleyDavidson
Quiz