Product Design

Product Development Process
Economic Analysis of Development Projects
Designing for the Customer
Design for Manufacturability
Measuring Product Development Performance
OBJECTIVES

Typical Phases of Product Development:
Example of Marketing Function
Planning
Articulate market opportunities
Define market segment
Concept Development
Collect customer needs
Identify lead users
Identify competitive products
System-Level design
Develop plan for product options & extended product family
Set target sales price points
Design Detail
Develop marketing plan
Testing and Refinement
Develop promotion & launch materials
Facilitate field testing
Production Ramp-up
Place early production with key customers

Economic Analysis of Project Development Costs
Using measurable factors to help determine:
Operational design and development decisions
should we outsource in order to save time?
Go/no-go milestones
should we develop to address new mkt opportunity?
Building a Base-Case Financial Model
Estimating time & amount of cash flow to determine Net Present Value of the cash flow
A financial model consisting of major cash flows
e.g costs: development, marketing & unit production
Sensitivity Analysis for “what if” questions
Calculate changes in NPV vs. changes in factors in model

Product Development System
Figure 5.3

Quality Function Deployment
Identify customer wants
Identify how the good/service will satisfy customer wants
Relate customer wants to product hows
Identify relationships between the firm’s hows
Develop importance ratings
Evaluate competing products

Designing for the Customer
Ideal Customer Product
House of Quality
Matrix
-Inter-functional team work on design
-Listen to customer & market research
- know customer preference & needs
-Customer requirements specs.
-Customer feedback drive design & development
-Determine product value
-Goal is to simply the product & processes in using the product
-Achieve better performance at low cost

QFD House of Quality

House of Quality Example
Your team has been charged with designing a new camera for Great Cameras, Inc.
The first action is
to construct a
House of Quality

House of Quality Example

House of Quality Example

House of Quality Example

House of Quality Example

House of Quality Example

House of Quality Example

House of Quality Example

House of Quality Example
Completed House of Quality

Designing for the Customer:
The House of Quality: Building a Car Door
The McGraw-Hill Companies, Inc., 2004
Customer requirements information forms the basis for this matrix, used to translate them into operating or engineering goals.

Product-by-Value Analysis
Lists products in descending order of their individual dollar contribution to the firm
Lists the total annual dollar contribution of the product
Helps management evaluate alternative strategies

Product-by-Value Analysis
Sam’s Furniture Factory

New Product Opportunities
Brainstorming is a useful tool
Understanding the customer
Economic change
Sociological and demographic change
Technological change
Political/legal change
Market practice, professional standards, suppliers, distributors

Designing for the Customer:
Value Analysis/Value Engineering
Achieve equivalent or better performance at a lower cost while maintaining all functional requirements defined by the customer
Does the item have any design features that are not necessary?
Can two or more parts be combined into one?
How can we cut down the weight?
Are there nonstandard parts that can be eliminated?

Design for Manufacturability
Traditional Approach
“We design it, you build it” or “Over the wall”
Concurrent Engineering
“Let’s work together simultaneously”

Design for Manufacturing and Assembly
Greatest improvements related to DFMA arise from simplification of the product by reducing the number of separate parts:
During the operation of the product, does the part move relative to all other parts already assembled?
Must the part be of a different material or be isolated from other parts already assembled?
Must the part be separate from all other parts to allow the disassembly of the product for adjustment or maintenance?

Designing Service Products
Unlike manufacturing products, service products involves customer directly and can be complicated during its process, impacting both time and knowledge to serve customer
Factors affecting service design:
Service Experience Fit: New service fit into currently provided services. E.g. Movie & Selling Pop-corns
Operational Fit: Collaborate with other operational skills in to service customer. E.g. Retail store & Home Delivery
Financial Fit: Is it financially justified? May be necessary to retain customer.

Measuring Product Development Performance
Measures
Freq. of new products introduced
Time to market introduction
Number stated and number completed
Actual versus plan
Percentage of sales from new products
Time-to-market
Productivity
Quality
Engineering hours per project
Cost of materials and tooling per project
Actual versus plan
Conformance-reliability in use
Design-performance and customer satisfaction
Yield-factory and field
Performance
Dimension