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Chapter 2: Development Processes and Organizations Product Design and Development Fourth Edition by Karl T. Ulrich and Steven D. Eppinger Chapter 1: Introduction.

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Presentation on theme: "Chapter 2: Development Processes and Organizations Product Design and Development Fourth Edition by Karl T. Ulrich and Steven D. Eppinger Chapter 1: Introduction."— Presentation transcript:

1 Chapter 2: Development Processes and Organizations Product Design and Development Fourth Edition by Karl T. Ulrich and Steven D. Eppinger Chapter 1: Introduction Chapter 3: Product Planning

2 On-the-spot Design What did you learn? Challenges of Product Development – Trade-offs – Dynamics – Details – Time pressure – Economics Why do I love it? – Getting something to work – Satisfying societal needs – Team diversity – Team spirit

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4 Functions – Could be Design, Manufacturing, Marketing, etc. This represents cross- funtional teams

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7 Process TypeDescriptionExamples Market PullTeam begins with market opportunity and selects technology to meet customer needs. Fuel efficient cars Technology PushTeam begins with a new technology, then finds an appropriate market. Velcro Platform 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 Products Characteristics of the product are highly constrained by the production process. Coke Customized Products New products are slight variations of existing configurations. Boiling water reactor pressure vessels High-Risk ProductsTechnical 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 SystemsSystem must be decomposed into several subsystems and many components. Space shuttle Most designs are one of these two, with Market pull as the primary. More than one of these may apply.

8 Aerogel is a technology looking for commercial applications https://www.besttvbuys.com/loudandclear/index.asp?did=97 8&refcode=lnc4 Aging Baby Boomers have created a number of marketing opportunities

9 Customized Products While Pacific Bearing has a large number of stock choices, they also sell unique combinations and modifications of existing designs

10 Platform Products Dyson Vacuum cleaners are all built around the same “Cyclone”

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12 Planning Product Development Process Concept Development Concept Development System-Level Design System-Level Design Detail Design Detail Design Testing and Refinement Testing and Refinement Production Ramp-Up Production Ramp-Up Four Phases of Product Development The product planning phase precedes the product development process. GM sees Energy Crisis, needs better gas mileage For transmissions, more speeds = better mileage 3 speed to 4 speed or Continuously variable (GM Tech Center) e.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

15 The Product Planning Process

16 A Product Plan

17 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.

18 Market Segment Map Market Segment

19 Technology S-Curves Light-Lens Technology Digital Technology Time Copier Performance

20 Technology Roadmap

21 Segmentation Examples CumminsPeerless Pump Class 3-4 TruckIndustrial Class 5-7 TruckAgricultural School BusMunicipal RV ChassisChemical Construction Equipment Building Trades/New Construction Dell computers Apple Computers gzMA Harley Davidson Davidson

22 report-videos/262000/january /emily-pilloton


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