1. PENN S TATE © T. W. S IMPSON PENN S TATE © T. W. S IMPSON Recap of the Book, Current/Future Directions, and the “Model” Platform Timothy W. Simpson Professor of Mechanical & Industrial Engineering and Engineering Design The Pennsylvania State University University Park, PA 16802 USA phone: (814) 863-7136 email: tws8@psu.edu http://www.mne.psu.edu/simpson/courses/me546 ME 546 - Designing Product Families - IE 546

2. PENN S TATE © T. W. S IMPSON Overview of Lecture Recap of the book  What we covered and what we did not… …and other books of interest Current/future directions in platform/family design  Excerpts from: – Simpson, T. W., Marion, T. J., de Weck, O., Holtta-Otto, K., Kokkolaras, M. and Shooter, S. B. (2006) Platform-Based Design and Development: Current Trends and Needs in Industry, 2006 ASME Design Engineering Technical Conferences - Design Automation Conference, Philadelphia, PA, ASME, Paper No. DETC2006/DAC-99229 The Model T as the “model” platform  Excerpts from: – Alizon, F., Shooter, S. B. and Simpson, T. W. (2008) Henry Ford and the Model T: Lessons for Product Platforming and Mass Customization, 2009 ASME Design Engineering Technical Conferences - Design Automation Conference, Saitou, K., ed., New York, NY, August 3-6, ASME, DETC2008/DAC-49420 to appear in Design Studies (2009)

3. PENN S TATE © T. W. S IMPSON Product Platform and Product Family Design Editors:  Timothy W. Simpson, Zahed Siddique, & Jianxin (Roger) Jiao Year of Publication:  2005 Publisher:  Springer (New York) Focus:  Methods for designing product platforms and product families

4. PENN S TATE © T. W. S IMPSON Target Audience Our target audience includes: 1.Researchers and Ph.D. students in Mechanical Engineering, Industrial Engineering, Computer-Integrated Manufacturing, and related fields in Engineering Management 2.Practitioners involved in Design, Development, Planning and Production in the manufacturing industry We wanted to provide an overview of the more mature research that has occurred, emphasizing methods for:  developing platform architectures  identifying platform leveraging strategies  positioning products within a family  planning the extent of the product family  optimizing families of products based on platforms including platform case studies form industry

5. PENN S TATE © T. W. S IMPSON Contributing Authors Over 30 authors contributed 22 chapters Authors span academia as well as industry:  Penn State, MIT, Georgia Tech, Michigan, BYU, Bucknell, UIUC, University of Oklahoma  Osaka University, Nanyang Technological University, University of Twente, Chalmers University of Technology  ABB, PRTM, Robust Systems & Strategy, Infotiv, Hofer & Partner, KPMG Advisory Services National and international contributors from:  United States, Netherlands, Switzerland, Sweden, Finland, Germany, Malta, Japan, Singapore

6. PENN S TATE © T. W. S IMPSON Chapter 1: Introduction & Overview Chapter 1  Product Variety and Customization  Definitions of Platforms and Product Families  General Approaches to Platform Design  Module-Based Product Families and Examples  Scale-Based Product Families and Examples  Discuss Organization of the Book Authors: – Timothy W. Simpson, Penn State University – Zahed Siddique, Oklahoma University – Jianxin (Roger) Jiao, Nanyang Technological University (Singapore)

7. PENN S TATE © T. W. S IMPSON Pictorial Overview (Chapter 1)

8. PENN S TATE © T. W. S IMPSON Part I: Front-End Issues in Platforming Chapters 2-7 2: Effective Platform Planning in the Front-End – Daniel Bowman, PRTM 3: Platform-Driven Development of Product Families – Johannes I. M. Halman, University of Twente (Netherlands), Adrian P. Hofer, Hofer & Partner (Switzerland), and Wim van Vuuren, KPMG Advisory Services (Malta) 4: Platform Concept Selection – Katja Hölttä-Otto, MIT (UMass-Dartmouth) with Kevin Otto, Robust Systems and Strategy 5: Platform Leveraging Strategies and Market Segmentation – Tucker Marion and Timothy W. Simpson, Penn State University 6: Product Family Positioning – Jianxin Jiao and Yiyang Zhang, Nanyang Technological University (Singapore) 7: Commonality Indices for Product Families – Henri J. Thevenot and Timothy W. Simpson, Penn State University

9. PENN S TATE © T. W. S IMPSON Part II: Optimization-Based Approaches Chapters 8-12 8: Methods for Optimizing Platforms and Families – Timothy W. Simpson, Penn State University 9: Commonality Decisions in Platform Design – Michael Kokkolaras, Ryan Fellini, and Panos Y. Papalambros, University of Michigan 10: Product Variety Optimization – Kikuo Fujita, Osaka University (Japan) 11: Analytical Target Cascading in Product Family Design – Ryan Fellini, Michael Kokkolaras, and Panos Y. Papalambros, University of Michigan, with Harrison H. Kim from UIUC 12: Determining Product Platform Extent – Olivier de Weck, MIT

10. PENN S TATE © T. W. S IMPSON Part III: Back-End Issues in Platforming Chapters 13-18 13: Roadmap for Product Architecture Costing – Sebastian K. Fixson, University of Michigan 14: Activity-Based Costing for Product Families – Jaeil Park and Timothy W. Simpson, Penn State University 15: Product Platform Redesign using Platforms – Zahed Siddique, University of Oklahoma 16: Process Platforms and Product Configuration – Jianxin (Roger) Jiao, Lianfeng Zhang, and Shaligram Pokharel, Nanyang Technological University (Singapore) 17: Measuring Shape Commonality – Zahed Siddique, University of Oklahoma 18: Process Parameter Platform Design – Christopher B. Williams, Janet K. Allen, David W. Rosen, and Farrokh Mistree, Georgia Tech

11. PENN S TATE © T. W. S IMPSON Part IV: Applications Chapters 19-22 19: Ice Scraper Platforms at Innovation Factory – Steven B. Shooter, Bucknell University 20: Engineering Platforms and Families at ABB – Srinivas Nidamarthi and Harshavardhan Karandikar, ABB (Germany) 21: Product Design Generator at Honeywell – Gregory M. Roach and Jordan J. Cox, BYU 22: Platform Management Practice at Cetetherm – Tobias Holmqvist and Magnus Persson, Chalmers University of Technology (Sweden) with Karin Uller from Infotiv Ice dozer Mini dozer variants

12. PENN S TATE © T. W. S IMPSON Other Books: The Power of Product Platforms Authors:  Marc Meyer & Al Lehnerd Year of Publication:  1997 Publisher:  Free Press (New York) Focus:  This has become THE book on product platform planning

13. PENN S TATE © T. W. S IMPSON Product Strategy for High-Tech Companies Author:  Michael E. McGrath Year of Publication:  2001 Publisher:  McGraw-Hill (New York) Focus:  Use of platforms in high-tech industries and PRTM’s platform planning process

14. PENN S TATE © T. W. S IMPSON Managing Product Families Authors:  Susan Sanderson & Mustafa Uzumeri Year of Publication:  1997 Publisher:  Irwin (Chicago, IL) Focus:  Product family management with an emphasis on Sony’s platform planning strategy

15. PENN S TATE © T. W. S IMPSON Design Rules Volume I: The Power of Modularity Authors:  Carliss Y. Baldwin & Kim B. Clark Year of Publication:  2000 Publisher:  MIT Press (Cambridge, MA) Focus:  Modular-based design strategies and examples

16. PENN S TATE © T. W. S IMPSON The Age of Modularity Author:  Peter O’Grady Year of Publication:  1999 Publisher:  Adams and Steele (Iowa City, IA) Focus:  Modularity and its role in product design as well as organizational design

17. PENN S TATE © T. W. S IMPSON Controlling Design Variants Authors:  Anna Ericsson & Gunnar Erixon Year of Publication:  1999 Publisher:  SME (New York) Focus:  Modular Function Deployment TM and Module Identification Matrix TM Methods

18. PENN S TATE © T. W. S IMPSON Product Variety Management Editors:  Teck-Hua Ho & Christopher S. Tang Year of Publication:  1998 Publisher:  Kluwer (Boston, MA) Focus:  Collection of papers dealing with the management of product variety

19. PENN S TATE © T. W. S IMPSON Integrated Design of a Product Family Authors:  Pierre De Lit & Alain Delchambre Year of Publication:  1998 Publisher:  Kluwer (Boston, MA) Focus:  Assembly system design to facilitate manufacturing products in a family

20. PENN S TATE © T. W. S IMPSON Build-to-Order & Mass Customization Author:  David M. Anderson Year of Publication:  2004 Publisher:  CIM Press (Cambria, CA) Focus:  Product design and supply chain issues associated with mass customization and build-to-order systems

21. PENN S TATE © T. W. S IMPSON Overview of Lecture Recap of the book  What we covered and what we did not… …and other books of interest Current directions in product family and platform design  Excerpts from: – Simpson, T. W., Marion, T. J., de Weck, O., Holtta-Otto, K., Kokkolaras, M. and Shooter, S. B. (2006) Platform-Based Design and Development: Current Trends and Needs in Industry, 2006 ASME Design Engineering Technical Conferences - Design Automation Conference, Philadelphia, PA, ASME, Paper No. DETC2006/DAC-99229 The Model T as the “model” platform  Excerpts from: – Alizon, F., Shooter, S. B. and Simpson, T. W. (2008) Henry Ford and the Model T: Lessons for Product Platforming and Mass Customization, 2009 ASME Design Engineering Technical Conferences - Design Automation Conference, Saitou, K., ed., New York, NY, August 3-6, ASME, DETC2008/DAC-49420 to appear in Design Studies (2009)

22. PENN S TATE © T. W. S IMPSON 2004 Platform Management for Continued Growth Nov. 30 – Dec. 1, 2004 in Atlanta, GA Sponsored by PDMA/IIR Keynote Speaker:  Marc Meyer, co-author of Power of Product Platforms Twenty industry experts:  Harley Davidson, Kodak, DuPont, Intel, and Lockheed Martin, Aventis Pasteur, IBM, Case-New Holland Global, Cingular Wireless, Playtex, Argon Engineering, and Innovation Focus

23. PENN S TATE © T. W. S IMPSON Post-Conference Workshop Hosted by Mr. Patrick Gordon from PRTM

24. PENN S TATE © T. W. S IMPSON November 9-10, 2005 at MIT  Co-organized by Olivier de Weck and Timothy W. Simpson  Co-sponsored by MIT, CIPD (Prof. Chris Magee), Penn State, and a generous donation from DuPont (Debbra Johnson) Objectives:  Unveil and present new edited volume (book)  Bring community of practitioners and academics together: to learn, think, debate, network, socialize,…  Extend concept of product families and platforms to non- traditional areas: software, services  Transition from CIPD to Center for Engr Sys Fundamentals

25. PENN S TATE © T. W. S IMPSON Conference Highlights Two keynote speakers:  Marc Meyer, co-author of Power of Product Platforms (1997)  B. Joseph Pine II, author of Mass Customization (1993) Industry speakers from:  HP, DuPont, Design Continuum, LG, United Technologies, PRTM, ABB, GM/Saab, Robust Systems and Strategy, and Innovation Factory Panel discussion and enlightening talks from academia Drew 114 participants split evenly between industry and academia All presentations and materials available on website:  http://cipd.mit.edu/pd

26. PENN S TATE © T. W. S IMPSON Platforms for Innovation and Enterprise Growth Source: (Meyer, 2005)

27. PENN S TATE © T. W. S IMPSON Common Themes & Trends Several common themes arose from the 30+ industry presentations and ensuing discussions:  Corporate Culture Change  Upper Management – Catalyst for Change  Product Development – Results through Teamwork  Architecture – Common Subsystems and Reduced Complexity  Platform Strategies in “Non-Traditional” Applications  Forecasting and Analysis – Understand the Market  Financial Planning  Globalization and Product Platforms

28. PENN S TATE © T. W. S IMPSON Corporate Culture Change Corporations that embraced cross-functional product platform teams routinely were able to quickly reinvent themselves and successfully enter new markets  Functional management structures tend to lead to ‘fiefdoms’ with overlapping capabilities (R&D, marketing, design, etc.)  IBM example taken from Paul Mugge: In 1996, IBM Servers shared fewer than 2% of components between divisions (any sharing was unintentional) By reorganizing around cross-disciplined, market-facing platform teams, they used platforms to save over $775M in 4 years

29. PENN S TATE © T. W. S IMPSON Upper Management – Catalyst for Change Reorganization will fail without strong support from upper management  After losing $8B in 1993, Louis V. Gerstner spearheaded a culture change by appointing senior management to lead the effort and commit the required resources (see: LVG, Who Says Elephants Can’t Dance?, Harper Business, 2002)  In 2000, Intel’s Desktop Platform Group shifted focus from developing components to developing platforms, and management provided evolutionary improvement and implementation of a coherent Platform Development Management System Whether through a change manager (IBM) or an evolutionary change (Intel), upper management must support and be integrated in platform management

30. PENN S TATE © T. W. S IMPSON Product Development – Results through Teamwork Cross-functional product development teams are essential for implementing a successful platform development strategy  Sanofi Aventis shared experiences with using platforms to expedite FDA approval process for the vaccines that they develop Some firms experimenting with layered models:  platform teams serve as “middleware”, connecting slower science-related R&D layer with fast-paced market-related product development layer that wants to assemble and customize products from existing, proven technologies quickly for changing customer demands Adapted from Monica McGill, Sanofi Aventis Group

31. PENN S TATE © T. W. S IMPSON Architecture – Common Subsystems and Reduced Complexity Developing cohesive and flexible product architectures is a necessity for successful platform implementation To achieve this, nearly every speaker presented a customized version of Meyer’s “Power Tower” at the PDMA Conference that served as their firm’s product planning roadmap  DuPont’s example from their work with Innovation Focus 

32. PENN S TATE © T. W. S IMPSON “Non-Traditional” Applications of Platforms Platform-based development is being adopted in “non- traditional” sectors such as telecommunications, software, food and drug industries, health care and service systems (e.g., entertainment, tourism, banking) Requires rethinking platform principles for technology- focused platforms, artistic and industrial design-based platforms, brand recognition-based platforms, etc. Example of software product line architecture (K. Weiss, MIT) Cingular Pre-Paid Wireless Platform (J. Schlueter)

33. PENN S TATE © T. W. S IMPSON Forecasting and Analysis – Understand the Market Companies must listen to and identify the needs and expectations of each market segment and tier  What is the significance of this segment?  What are the key products?  What are their volumes, revenue, and profits?  What is the outlook for the next 5 years?  What does the company have to do to enter, sustain, and grow in the segment? Companies can then develop a ‘360 degree’ view of potential customers to understand their needs, requirements, and usage patterns ‘Voice of the Customer’ (VOC) based approaches were used successfully by many companies to guide the specification and features of new product platforms

34. PENN S TATE © T. W. S IMPSON Financial Planning Justifying product family development to senior-level management requires estimating the expected financial benefits: savings due to commonality (e.g., in manufacturing, inventory, training, maintenance) and revenues due to successful products in the market  Requires integrating marketing, design, engineering, and manufacturing considerations into a unifying framework to support platform decision-making Example from Chapter 12 by Olivier de Weck

35. PENN S TATE © T. W. S IMPSON Globalization and Product Platforms Globalization not only offers opportunities for product families but actually implies them Speakers stated that platform-based development is the only way for international companies to market their products efficiently and stay in business Taking a global perspective can offer new market opportunities also  DuPont example 

36. PENN S TATE © T. W. S IMPSON Needs & Future Directions Recognizing a Holistic Platform Strategy  How to integrate life-cycle concerns and manage knowledge Flexible Platform Design for Multiple Generations  How do we embed flexibility into platforms to enable them to evolve as technology changes to serve multiple generations Corporate Platform Strategy and Tradeoffs  How can we facilitate corporate reorganization for platform teaming while ensuring management “buy in” is achieved Expanding Views for Platforms  How to best leverage platform principles to service platforms, software platforms, brand platforms, etc. Effective Partnerships: Industry+Academic+Government  How to exploit synergies among our efforts and help educate future generations of platform designers and engineers