Tools & Trends in Product Development

1 Tools & Trends in Tools & Trends in Product DevelopmentProduct Development1 Percent of Current Sales Contributed Percent of Current Sales Contributed by New Productsby New Products0%10%20%30%40%50%60%70%Bottom ThirdMiddle ThirdTop ThirdMost SuccessfulHigh Tech All FirmsLow TechSelf Reported Standing in Industry2 Decay CurveDecay Curve0102030405060708090100 IdeasTestedLaunchedSuccess199019953 design ProcessesDesign Processes4 NPD Processes in Use in the USNPD Processes in Use in the USNoneInformalStage GateFacilitated Stage GateFunctional, sequential3rd Gen. Stage GateOther0%5%10%15%20%25%30%1 STAGE GATE PROCESSES 56 %5 Process Tasks Process Tasks .. Product Line PlanningProduct Line Planning Portfolio, CompetitionPortfolio, Competition Strategy DevelopmentStrategy Development Target Market, Needs, AttractivenessTarget Market, Needs, Attractiveness Idea/Concept GenerationIdea/Concept Generation Opportunities and SolutionsOpportunities and Solutions Idea ScreeningIdea Screening Sort, Rank, EliminateSort, Rank, TasksProcess Tasks Business AnalysisBusiness Analysis Business Case, Development ContractBusiness Case, Development Contract DevelopmentDevelopment Convert Concept into Working ProductConvert Concept into Working Product Test & ValidationTest & Validation Product Use, MarketProduct Use.

2 Market Manufacturing DevelopmentManufacturing Development Developing and Piloting Manufacturing ProcessDeveloping and Piloting Manufacturing Process CommercializationCommercialization Launch of FullLaunch of Full--Scale Production and Sales Scale Production and Sales 7 Tasks Included in ProcessesTasks Included in ProcessesProduct Line PlanningProject StrategyScreeningBusiness AnalysisManufacturing DevelopmentCommercilizationIdea GenerationDe ve lopme ntTest & Validation0%10%20%30%40%50%60%70%80%90%1 00%8 Projects Completing TasksProjects Completing TasksProduct Line PlanningProject StrategyScreeningBusiness AnalysisManufacturing DevelopmentCommercializationIdea GenerationDe ve lopme ntTest & Validation0%10%20%30%40%50%60%70%80%90%1 00%9 Average Time Spent on TasksAverage Time Spent on TasksCommercializationManufacturing DevelopmentBusiness AnalysisScreeningProject StrategyProduct Line PlanningTest & ValidationDe ve lopme ntIdea Generation05101520253035weeks10 Percentage of Projects Using Percentage of Projects Using Multifunctional TeamsMultifunctional TeamsMinor ImprovementRe pos itioningNew-to-FirmNew-to-WorldCos t Re duc tionMajor Revision0%10%20%30%40%50%60%70%80%90%100 %11 ToolsTools12 Perceived Importance and Use of Perceived Importance and Use of Marketing Research ToolsMarketing Research Tools012345 Voice of CustomerCustomer Site VisitsConcept TestsFocus GroupsBeta TestingConjoint AnalysisTest MarketsPre-Test MarketsImportanceDegree of Use13 Perceived Importance and Use of Perceived Importance and Use of Engineering ToolsEngineering Tools012345 Rapid PrototypingConcurrent EngineeringDesign for ManufacturingCADCAEV alue AnalysisFMEAP erfomance SimulationVirtual DesignImportanceDegree of Use14 Perceived Importance and Use of Perceived Importance and Use of Organization

3 ToolsOrganization Tools012345 CPM PERT GANNTC hampionsProcess OwnerTeam Building DrillHeavyweight ManagerSelf Directed TeamsMatrix OrganizationQFDC olocated TeamsLeaderless TeamsImportanceDegree of Use15 Perceived Importance: Top 5 Perceived Importance: Top 5 Voice of the Customer ( )Voice of the Customer ( ) Customer Site Visits ( )Customer Site Visits ( ) Rapid Prototyping ( )Rapid Prototyping ( ) Project Scheduling Tools ( )Project Scheduling Tools ( ) Product Champions ( ) Product Champions ( )16 Frequency of Use: Top 5 Frequency of Use: Top 5 Project Scheduling Tools ( )Project Scheduling Tools ( ) Voice of Customer ( )Voice of Customer ( ) Customer Site Visits ( )Customer Site Visits ( ) ComputerComputer--Aided design ( )Aided design ( ) Matrix Organizations ( ) Matrix Organizations ( ) 17 PerformancePerformance18 Past and Future Impact Past and Future Impact of New Products of New Products Product SalesNew Product ProfitsPast 5 YearsNext 5 YearsPercent of Total19 Product SuccessProduct Success Successful Products (subjective)Successful Products (subjective)

4 % % Profitable %Profitable % Still on market after 5 years %Still on market after 5 years %20 Performance CriteriaPerformance To WorldNew Product LineNext GenerationIncremenatal ImprovementRepositioningCustomer AcceptanceFinancial PerformanceTechnical Performance21 Average Length Average Length of Development Projectsof Development Projects051015202530354045 New To WorldNew Product LineNext GenerationIncremenatalImprovementWEEKS22 Further ReadingFurther Reading RosenauRosenauet al. et al. The PDMA Handbook of The PDMA Handbook of New Product DevelopmentNew Product Development Data Source for preceding slidesData Source for preceding slides Cooper, Robert G. Cooper, Robert G. Winning at New Winning at New ProductsProducts StageStage--Gate ProcessesGate Processes23 Tools For Innovation: Tools For Innovation:The design Structure The design Structure Matrix Matrix Thomas A.

5 RoemerThomas A. RoemerSpring 06, PD&DSpring 06, PD&D24 OutlineOutline OverviewOverview Traditional Project Management Tools and Product DevelopmentTraditional Project Management Tools and Product Development design Structure Matrix (DSM) BasicsDesign Structure Matrix (DSM) Basics How to createHow to create ClassificationClassification The Iteration Problem: The Iteration Problem: Increasing Development SpeedIncreasing Development Speed Sequencing, Partitioning and SimulationSequencing, Partitioning and Simulation The Integration Problem: The Integration Problem: DSM ClusteringDSM Clustering Organizational Structures & Product ArchitecturesOrganizational Structures & Product Architectures25 Classical Project Management Classical Project Management ToolsTools Gantt Charts Gantt Charts GraphGraph--based: PERT, CPM, IDEF based: PERT, CPM, IDEFA ctivityTime26 CharacteristicsCharacteristics Complex DepictionComplex Depiction Focus on Work FlowsFocus on Work Flows DSM focuses on Information FlowsDSM focuses on Information Flows Ignore Iterations & ReworkIgnore Iterations & Rework Test results, Planned design reviews, design mistakes, Test results, Planned design reviews, design mistakes, Coupled nature of the processCoupled nature of the process Decomposition & IntegrationDecomposition & Integration Assume optimal Decomposition & StructureAssume optimal Decomposition & Structure Integration of Tasks not addressedIntegration of Tasks not addressed27 design IterationDesign Iteration Iteration: The repetition of tasks due to new Iteration.

6 The repetition of tasks due to new Changes in input information (upstream)Changes in input information (upstream) Update of shared assumptions (concurrent)Update of shared assumptions (concurrent) Discovery of errors (downstream)Discovery of errors (downstream) Fundamental in Product developmentFundamental in Product Development Often times hidden Often times hidden Understanding Iterations requires Understanding Iterations requires Visibility of information flowsVisibility of information flows28A Graph and its DSMA Graph and its DSMACDBHFGEIABCDEFGH IAAXBBXCXCDDXEEFXFXGGHXXHIXI29 Creating a DSMC reating a DSM design manualsDesign manuals Process sheetsProcess sheets Structured expert interviewsStructured expert interviews Interview engineers and managersInterview engineers and managers Determine list of tasks or parametersDetermine list of tasks or parameters Ask about inputs, outputs, strengths of interaction, etcAsk about inputs, outputs, strengths of interaction.

7 Etc Enter marks in matrixEnter marks in matrix Check with engineers and managersCheck with engineers and managers QuestionnairesQuestionnaires30 Four Types of Four Types of DSMsDSMsIterationActivity based DSMP arameter based DSMS equencingPartitioningSimulationIntegrati onTeam based DSMP roduct Architecture DSMC lustering31 Iteration Focused ToolsIteration Focused ToolsConcepts, Examples, Solution Concepts, Examples, Solution ApproachesApproaches32 Sequencing Tasks in ProjectsSequencing Tasks in ProjectsPossible Relationships between TasksABABABD ependent(Series)Independent(Parallel)Int erdependent(Coupled)33 DSM: DSM: Information Exchange ModelInformation Exchange ModelInterpretation:Interpretation: Rows: Required Information Rows: Required Information D needs input from E, F & needs input from E, F & L. Columns: Provided InformationColumns: Provided Information B transfers info to C,F,G,J & transfers info to C,F,G,J & :Note: Information flows are easier to Information flows are easier to capture than work than work flows.

8 Inputs are easier to capture than Inputs are easier to capture than 34 DSM: DSM: Partitioned or SequencedPartitioned or SequencedCDABGHEFKLIJCDABGHEFKLIJS eriesParallelCoupled TaskSequence35 Sequencing AlgorithmSequencing Algorithm Step 1: Schedule tasks with empty rows firstStep 1: Schedule tasks with empty rows first Step 2: Delete the row and column for that taskStep 2: Delete the row and column for that task Step 3: Repeat (Go to step 1)Step 3: Repeat (Go to step 1) Step 4: Schedule tasks with empty columns lastStep 4: Schedule tasks with empty columns last Step 5: Delete the row and column for that taskStep 5: Delete the row and column for that task Step 6: Repeat (Go to step 4)Step 6: Repeat (Go to step 4) Step 7: All the tasks that are left unscheduled are coupled. Step 7: All the tasks that are left unscheduled are coupled. Group them into blocks around the diagonalGroup them into blocks around the diagonal36 Example: Brake System DesignExample: Brake System Design12345678910111213 Customer_Requirements1 1 Wheel Torque22 XPedal Mech.

9 Advantage3X3 XXXXXS ystem_Level_Parameters4X4 Rotor Diameter5 XXXX5 XXXXXABS Modular Size8XX8 XCaliper Compliance9XX9 XXPiston- Front Size10 XXX10 Rear Lining Coef of Friction11 XXXXX11 XBooste r - Ma x . Stroke1212 XBooster Reaction Ratio13 XXXXXXXXXX1337 Partitioned DSM: Brake DesignPartitioned DSM: Brake Design1 4 2108 3117135129 6 Customer_Requirements1 1 System_Level_Parameters4X4 Wheel Torque2X2 Piston- Front Size10XX10 XPiston-Rear Size8 XXX8 Pedal Mech. Advantage3 XXXX3 XXRear Lining Coef of r Re a ction Ra tio13 XXXXXXX13 XRotor Diameter5 XXXXXXXXX5 Booste r - Ma x . Stroke12X12 Caliper Compliance9 XXXX9 ABS Modular Display6X638 Semiconductor design ExampleSemiconductor design ExampleSE E SDMFDC SWHWDDB FDL I RD FVRCCDDGVR SCDPFSFVAECDDDL CCL I MDT CC FV PDSet customer target xx Estimate sales volumesx xx Establish pricing directionx x Schedule project timeline xDevelopment methodsx xxxxMacro targets/constraintsxx xxxxFinancial analysis xxxxx Develop program mapx xCreate initial QFD matrixxxxx Set technical requirementsxxxx xWrite customer specificationxxxxx High-level modelingxxxx xxxWrite target specification xxxxxxxxx xxDevelop test plan xxxxx xDevelop validation plan xxxx Build base prototypexxxxxx Functional modelingxxxxx xxxxxxxx Develop Product modules xxxxxxxxx Lay out integrationxxxxxxxxx Integration modeling xxxxxxx xxxRandom testing xx xxxDevelop test parametersxxxxxxx xxxFinalize

10 Schematicsxxxxx xx Validation simulation xxxxxxx xxReliability modelingxxxxx xComplete Product layoutxxxxx xxContinuity verificationxxxxxx design rule checkxxx design package xxxxx Generate masksxxxx x Verify masks in fabxxx Run wafersx x Sort wafersx Create test programsx Debug productsxxxxx Package products xxx Functionality testingxxx Send samples to customersxxxx Feedback from customersx Verify sample functionalityx Approve packaged products xxxx Environmental validation xxxx Complete Product validationxxxxx Develop tech. publicationsxx xxDevelop service coursesxx xDetermine marketing namexxxxx xLicensing strategyxxx Create demonstrationxxxxxx Confirm quality goalsxxxxx Life testingxxx xxInfant mortality testing xxxx xMfg. process stabilizationxxx Develop field support planxx Thermal testingxxx Confirm process standardsx xxConfirm package standardsxxxxx xFinal certificationxxxxxxxxxxx Volume productionxxx xPrepare distribution network xxxxxxxx Deliver Product to customersxxxxxxxxx Concurrent Activity BlocksPotential Iterative LoopsGenerational Learning FeedbackSequential ActivitiesParallel Activity Blocks39 Task Sequencing ExampleTask Sequencing ExampleSpace Shuttle Main Engine40 Engine Components Engine Components 41 Dependency Relations in Dependency Relations in Conceptual design BlockConceptual design BlockACTIVITIES1 2 3 4 5 6 7 8 9 10111213141516 1718 192021222324252627 SSP Engine Make Preliminary Mat erial Select Assess Pump Housing381 design Pump Assess Turbine Housing541 CST Compare design Annulus 611 CAX Det ermine Opt imum Turbine St Compare design Pit