Product Development Process

PRODUCT DEVELOPMENT PROCESS

India s Role in R&D

India is fast emerging as the global research and development hub of the world. In 2006, 100 of the world s top R&D companies employed more than 15000 scientists in India Sony Ericsson has established an R&D unit in Chennai Dell has established its biggest R&D centre in Bangalore British aerospace major Rolls-Royce has tied up with the Indian Instt of Science (IISc), Bangalore and Imperial College, London to work together on a new research project to develop alloys for use in greener aircraft engines.

PRODUCT DEVELOPMENT PROCESS

PRODUCT DEVELOPMENT PROCESS

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Designing for the Customer

Companies have been so caught up with the technological efforts that somewhere along the line, customers were forgotten. Designing for aesthetics and for the user is generally termed as Industrial Design. Many products have so many technological features than required. For example: Oven.

PRODUCT DEVELOPMENT PROCESS

Product Development Process

The product development process consists of a structured and orderly set of activities which are repeated at periodic intervals when the organization feels the need for bringing out new products.

PRODUCT DEVELOPMENT PROCESS

PRODUCT DEVELOPMENT PROCESS

PRODUCT DEVELOPMENT PROCESS

PRODUCT DEVELOPMENT PROCESS

 Developed by Dr. Robert G Cooper A conceptual and operational roadmap for moving a new-product project from idea to launch Divides the effort into distinct stages separated by management decision gates

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 Stages: are the intermediate time-points between two gates Stages are cross-functional Gates are definite milestones Gates serve as the entry points where a continue or abandon decision is taken with respect to the project Gates have clearly laid out criteria for evaluation of the project as well as deliverables expected at the time of review ate the gate Each gate represents an opportunity for review and mid-course correction.

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What is concurrent engineering

Concurrent engineering is a business strategy which replaces the traditional product development process with one in which tasks are done in parallel and there is an early consideration for every aspect of a product's development process. This strategy focuses on the optimization and distribution of a firm's resources in the design and development process to ensure effective and efficient product development process

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Need for Concurrent Engineering

corporations must be able to react to the changing market needs rapidly effectively and responsively reduce their time to market and adapt to the changing environments Decisions made quickly way of bringing rapid solutions to product design and development process. Collaboration is a must for individuals, groups, departments, and separate organizations within the firm.

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How to apply Concurrent Engineerging

Commitment, Planning, and Leadership Continuous Improvement Process Communication and Collaboration

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Principles of Concurrent Engineering

Get a strong commitment from senior management. Establish unified project goals and a clear business mission. Develop a detailed plan early in the process. Continually review your progress and revise your plan. Develop project leaders that have an overall vision of the project and goals. Analyze your market and know your customers. Suppress individualism and foster a team concept. Establish and cultivate cross-functional integration and collaboration. Transfer technology between individuals and departments. Break project into its natural phases. Develop metrics. Set milestones throughout the development process. Collectively work on all parts of project. Reduce costs and time to market. Complete tasks in parallel
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Why use concurrent engineering

Competitive Advantage Increased Performance Reduced Design and Development Times Faster time to market which results in increased market share. Improved quality of resulting end products. Reduced defect rates. Increased customer satisfaction. Higher return on investments. Reduction or elimination of the number of design changes and re-engineering efforts at later phases in the development process. Increased innovation by having all players participate in the concept development phase. Ability to design right the first time out / First time capabilities. Increased cohesiveness within the firm. Improved communication between individuals and departments within the firm. Lower implementation risks. Faster reaction time in responding to the rapidly changing market. Improved inventory control, scheduling and customer relations.

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Competitor Analysis
Analyze what the existing offerings are and how the gaps can be filled Suitable when it is either difficult or costly to reach the customer directly Reverse Engineering: The process of discovering the technological principles of a human made device, object or system through analysis of its structure, function and operation Benchmarking Perceptual Maps: Graphical representation of the competitor s product offerings and that of the proposed product

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 Objective of VE is to simplify products and processes. To achieve better or equivalent performance at a lower cost while maintaining all functional requirements defined by the customer. Done by identifying and eliminating unnecessary cost.

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 Design here refers to the detailing of the material shapes and tolerance of the individual parts of a product. Traditionally, design team pass on the the design to the manufacturing and assembly engineers. Attitude of the designers We design it, you build it. An Over-the-wall approach. Manufacturing engineers have to deal with the problems as they were not involved in the design stage. Solution is to consult the manufacturing engineers during the design stage which may avoid many problems that will arise.

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Quality Function Deployment

An approach to getting the voice of the customer into the design specification of a product. QFD process begins with studying and listening to customers to determine the characteristics of a superior product through market research. Customer s requirement are ranked in order of importance. Customer feedback is used by QFD team to translate customer requirements into concrete operating or engineering goals. Company s product is compared with other competitors. The data is then used to evaluate the strengths and weaknesses of the product in terms of technical characteristics.

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What is QFD?
Quality Function Deployment is a design planning process driven by customer requirements.
QFD deploys The Voice of the Customer throughout the organization. 2. QFD uses planning matrices -- each called The House of Quality. 1.

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Voice of the Designer

Voice of the Customer

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x = Design Trade-offs

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Benchmarking

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Reverse Engineering

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Deploying the VOC

Technical Requirements Customer Requirements Technical Requirements Product Requirements Control Requirements Process Requirements Product Requirements Process Requirements

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Websites References
http://www.qfdonline.com/qfd-tutorials/houseof-quality-qfd-example/ http://www.qfdonline.com/qfdexamples/chocolate_chip_cookie_qfd.pdf http://www.qfdi.org/what_is_qfd/what_is_qfd.ht m http://www.npd-solutions.com/qfd.html http://www.qfdi.org/what_is_qfd/faqs_about_qf d.htm http://www.theriac.org/pdfs/startsheets/qfd.pdf

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ano Model
The Kano Model of Customer (Consumer) Satisfaction classifies product attributes based on how they are perceived by customers and their effect on customer satisfaction. These classifications are useful for guiding design decisions in that they indicate when good is good enough, and when more is better.

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Project activities in which the Kano Model is useful

Identifying customer needs Determining functional requirements Concept development Analyzing competitive products

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 Divides product attributes into three categories: Threshold Performance Excitement A competitive product meets basic attributes, maximises performances attributes, and includes as many excitement attributes as possible at a cost the market can bear.

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 Threshold (or basic) attributes are the expected attributes or musts of a product, and do not provide an opportunity for product differentiation. Increasing the performance of these attributes provides diminishing returns in terms of customer satisfaction, however the absence or poor performance of these attributes results in extreme customer dissatisfaction. Example: Brakes in a car

Threshold Attributes

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Performance Attributes
Performance attributes are those for which more is generally better, and will improve customer satisfaction. These attributes will form the weighted needs against which product concepts will be evaluated. The price for which customer is willing to pay for a product is closely tied to performance attributes. For example, customers would be willing to pay more for a car that provides them with better fuel economy.

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Excitement Attributes
Excitement attributes are unspoken and unexpected by customers but can result in high levels of customer satisfaction, however their absence does not lead to dissatisfaction. often satisfy latent needs real needs of which customers are currently unaware. providing excitement attributes that address unknown needs can provide a competitive advantage.

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Application of the Kano Model Analysis

Ask customers two simple questions for each attribute: 1. Rate your satisfaction if the product has this attribute?; and 2. Rate your satisfaction if the product did not have this attribute?

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Weblinks
http://www.kanomodel.com

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Management Accounting Tools for Product Development

Final cost of products and services offered to customers is to a large extent determined at the design stage. Two management tools: 1. Life Cycle Costing 2. Target Costing

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 Life-cycle costing is a method of costing that looks at a product s entire value chain from a cost perspective. Other types of costing generally look only at the production process, whereas life-cycle costing tracks and evaluates costing from the research and development phase of a product s life, through to the decline and eventual conclusion of a product s life. Most of a product s costs are committed before the product is in the production phase. This means that the majority of control management can exert over production and other costs is during the design phase of the product s life-cycle.

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 In order to use life-cycle costing to its fullest, costs must be calculated from the point of the initial idea for the product, until the product is no longer made. These costs are then divided by the total number of expected units to be sold throughout the lifetime of the product to come to a total cost per unit. This process can help product managers to get a realistic view of the total cost of a product, so they can design and adjust accordingly

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When Is Life-Cycle Costing Appropriate?

Life-cycle costing is most appropriate when a product is in the design, or pre-design stages. This will allow management to gain the most benefit from the process, as opposed to attempting to use life-cycle costing after a product is already in the marketplace.

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Target Costing
A methodology to identify cost reduction methods and pursue them relentlessly so that as the product is designed and manufactured , it is within the target set. Instead of Price = Cost + Margin, it is now Cost = Price Margin Promotes an interdisciplinary approach to product design as the inputs required to arrive at the target cost come from different functional areas.

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Questions
List out the strategic benefits of a good product development process. What are the stages of the product development process? What is concurrent engineering? Why should organizations make use of this concept? What are the tools and techniques used by organizations in a product development process? What does DFM and DFA means? How do organizations handle mass customization requirements? What are the performance measures used to assess the effectiveness of a product development process? How does management accounting help in product development process?

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