Presentation on theme: "Chapter 2: Development Processes and Organizations"— Presentation transcript:
1 Chapter 2: Development Processes and Organizations Chapter 1: IntroductionChapter 2: Development Processes and OrganizationsChapter 3: Product PlanningProduct Design and DevelopmentFourth Editionby Karl T. Ulrich and Steven D. Eppinger
2 On-the-spot Design What did you learn? Challenges of Product DevelopmentTrade-offsDynamicsDetailsTime pressureEconomicsWhy do I love it?Getting something to workSatisfying societal needsTeam diversityTeam spirit
3 Organization of an enterprise can have a lot to do with whether or not the enterprise succeeds. This is an example of a functional map, but there can be characteristics that lead to failure: lack of empowerment, functional allegiances transcending project goals, inadequate resources, lack of cross-functional representation
4 This represents cross-funtional teams Functions – Could be Design, Manufacturing, Marketing, etc.
6 Marketing, Design, Manufacturing have a role to play in each of these phases. Other areas that can be involved are research, finance, general management, legal
7 Most designs are one of these two, with Market pull as the primary. Process TypeDescriptionExamplesMarket PullTeam begins with market opportunity and selects technology to meet customer needs.Fuel efficient carsTechnology PushTeam begins with a new technology, then finds an appropriate market.VelcroPlatform ProductsThe 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 ProductsCharacteristics of the product are highly constrained by the production process.CokeCustomized ProductsNew products are slight variations of existing configurations.Boiling water reactor pressure vesselsHigh-Risk ProductsTechnical or market uncertainties create high risks of failure.Nuclear power plants, drug delivery devicesQuick-Build ProductsRapid modeling and prototyping enables many design-build-test cycles.SoftwareComplex SystemsSystem must be decomposed into several subsystems and many components.Space shuttleMore than one of these may apply.Market pull and Technology push
8 Boomers have created a number of marketing opportunities Aging BabyBoomers have created a number of marketing opportunitiesAerogel is a technology looking for commercial applicationshttps://www.besttvbuys.com/loudandclear/index.asp?did=978&refcode=lnc4
9 Customized ProductsCustomized ProductsWhile Pacific Bearing has a large number of stock choices, they also sell unique combinations and modifications of existing designs
10 Platform ProductsDyson Vacuum cleaners are all built around the same “Cyclone”
12 Product Development Process PlanningConceptDevelopmentSystem-LevelDesignDetailDesignTesting andRefinementProductionRamp-UpFour Phases of Product Development3 speed to 4 speedorContinuously variable(GM Tech Center)GM sees Energy Crisis, needs better gas mileageThe product planning phase precedes the product development process.For transmissions, more speeds = better mileagee.g. Find clutch area needed for full throttle upshift with current engine.(Division Level)
13 ZF’s 8-Speed Automatic Transmission - Tech Dept. BY K.C. COLWELL December 2009
14 Xerox Lakes Project Example Xerox Document Centre 265
17 Market SegmentationA 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.