Development Processes and Organizations · Development Process Steps to conceive, design, and...

DevelopmentProcesses

andOrganizations

New Product Development © Stephan Sorger 2010: www.stephansorger.com; Dev. Processes 2.1

Disclaimer:• All images such as logos, photos, etc. used in this presentation are the property of their respective copyright owners and are used here for educational purposes only• Some material adapted from: Ulrich & Eppinger, “Product Design and Development,” 4th edition

http://www.stephansorger.com/

Term Definition

Development Process Steps to conceive, design, and commercialize product

Generic Development Process: Advantages

Advantage Description

Quality Assurance Specifies quality checkpoints along process

Coordination Master plan to coordinate roles of multiple groupsWhen input needed, by whom, for how long

Planning Contains milestones to anchor schedule of project

Management Benchmark to assess ongoing progressCompare planned status vs. actual status

Improvement Identify opportunities for improvement

Risk Management Risks identified in early stagesMarket risk: Will market adopt new product?Technology risk: Can new technology be developed?Profit risk: Can cost be reduced to profitable level?



Standard Development Process: Six Phases


Function

Marketing

Engineering

Manufacturing

Other

PlanningConcept Devel- opment

System-LevelDesign

DetailDesign

TestingandRefining

ProductionRamp-Up

Determinemarket opportunity

Considerproductarchitecture

Set supply-chainstrategy

Finance:Target ROI

Management:Set resources

Get ordersfrom keycustomers

Evaluate productionOutput

Launchfull-scaleproduction

Collectcustomerneeds

Investigatefeasibility ofconcepts

Estimatemanuf.cost

Finance:Fin. analysis

Legal:Do Patents

Develop planfor productfamily

Define majorsubsystems& interfaces

Identify keycomponentsuppliers

Finance:Make/Buy

Service:Identify issues

Developmarketingplan

Define partgeometry& materials

Defineproductionprocesses

Developpromotionmaterials

Testing:performance& reliability

Train manuf.workforce


Concept Development: Front-End Process: 1 of 2


Process Step Description

Identify Needs Understand customers’ needs; Communicate to teamExample: Customers waiting at hotel check-in

Establish Specifications Translate customer needs into technical termsExample: Customer wait time less than 1 minute

Generate Concept Explore solutions to problemExample: Brainstorm to get 50 solutions

Select Concept Pick 1-3 solutions for in-depth analysisExample: Select top 3 solutions to reduce waiting

Setting Specifications Revise initial specifications with new informationExample: Wait time less important than being bored

Hotel Lobby Check-In Desk: Typical version


Concept Development: Front-End Process: 2 of 2


Process Step Description

Plan Project Create schedule, highlighting time-critical tasksDetermine required manpower, equipment, & budgetContract Book: Get management sign-offs on plan

Financials Build economic model for new productJustify overall development program

Benchmarking Research competitive products

Prototyping Build models to demonstrate different stagesProof-of-concept; Form-only; Test models

Hotel Lobby Check-In Desk:Revised with TVs


Specific Product Development Processes: 1 of 4


Process Description

Market-Pull Products Begin with market opportunity; Design to meet needsFeatures: Uses standard development processExamples: Sporting goods; Furniture

Technology-Push Find an application for a proprietary technologyFeatures: Assumes technology will be used; PerilousExamples: Gore-Tex; Tyvek; Post-Its

Market-Pull: Tennis Racket

Technology-Push: Tyvek House Wrap




Process Description

Platform Products Develop new product around common platformFeatures: Assumes proven technology platformExamples: Printers; Consumer electronics; PCs

Process-Intensive Design new product around manufacturing processFeatures: Process dictates product design attributesExamples: Semiconductors; Breakfast cereals

Process Intensive: Semiconductor Wafer

Platform: Computer Printer Samsung 100/200/300




Process Description

Customized Products Tailor products to meet unique specificationsFeatures: Similarity of products can streamline processExamples: Motors; Switches; Dell PCs

High-Risk Products Risk failure due to market or technical unknownsFeatures: Risks are identified and tracked in processExamples: Pharmaceuticals; Aerospace systems

High-Risk Product: Space Satellite

Customized Product: Motor: Many variants available




Process Description

Quick-Build Products Build many trial versions to determine final designFeatures: Multiple design-build-test cyclesExamples: Computer software; Cellular phones

Complex Systems Decompose complex system into subsystemsFeatures: Multiple teams working in parallelExamples: Airplanes; Jet engines; Automobiles

Complex System: Jet Engine

Quick-Build Product: Computer Software


Product Development Process Flow Diagrams



System-LevelDesign

DetailDesign

TestingandRefining

ProductionRamp-Up

MissionApproval

ConceptReview

Cycle PlanReview

Design TestBuild

ProductionApproval

Multiple Iterations


System-LevelDesign

ProductionRamp-Up

MissionApproval

ConceptReview

System SpecReview

ProductionApproval

Critical Design Review (CDR)

A: Standard Product Development Process


System-LevelDesign

ProductionRamp-Up

MissionApproval

ConceptReview

SystemReview

Design Test

ProductionApproval

B: Quick-Build Product Development Process

Design Test

Design Test

C: Complex Systems Development Process

Integrateand Test


Organizational Structure: Links Among People


Link Description

Reporting Formal reporting relationships in organizational chartExample: Engineer A reports to VP Engineering B

Financial Linked as part of same financial groupExample: Marketer A in Business Unit X

Physical Layout Shared physical space: Office, Floor, BuildingExample: Team A co-located in Floor 1 of Building Y

Reporting Structure: Formal

Engineering Business Unit

Engineer A Engineer B Engineering Marketing Production

Marketer A Marketer B

Building 4,3rd Floor

Scorpio Team

Marketer AEngineer BProduction CMarketer DEngineer EFinance F

Financial Structure: Formal Co-location Structure: Informal


Organizational Structure: Functional vs. Project


Link Description

Functional Organized by function: Marketing, Engineering, etc.Advantage: Develop deep expertise over timeDisadvantage: Slow projects; Bureaucracy of functionsExample: Aerospace fluid dynamics group; advanced

Project Organized by project: Project 1, Project 2, etc.Advantage: Personnel dedicated to projects over timeDisadvantage: Personnel do not develop new skillsExample: Lockheed’s “Skunk Works” in 1960s

Functional Organization Project Organization

General Manager

EngineeringVP Eng.

MarketingVP Mktg.

ManufacturingVP Manuf.

Marketer A Marketer B

General Manager

Project 1Project Mgr

Project 2Project Mgr.


Engineer Marketer Manufacturing


Organizational Structure: Matrix Organization


Link DescriptionMatrix Hybrid of functional and project organizations

Advantage: Functional management AND project mgt.Disadvantage: Two Bosses!

Lightweight Matrix Functional org’n. with dedicated project managersAdvantage: Adds project focus, while maintaining skillsExample: Traditional high-tech companies

Heavyweight Matrix Project org’n. with dedicated functional managersAdvantage: Adds functional focus to project org’n.Example: Some newer high-tech companies

Lightweight Matrix Organization Heavyweight Matrix Organization

General Manager

EngineeringVP Eng.

MarketingVP Mktg.

ManufacturingVP Manuf.

Engineer A Marketer B

General Manager

Project 1Project Mgr



Marketer AManuf. C

Project Manager

Marketer CMarketer Marketer B

Functional Manager


Development Processes and Organizations · Development Process Steps to conceive, design, and...

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