ch 4 ced (concept in engineering design)
TRANSCRIPT
CHAPTER FOUR
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Lecture notes of Concepts in Engineering Design
Chapter 4
Prepared by Prem Kumar Soni1
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Lecture notes of Concepts in Engineering Design
Chapter 4
Prepared by Prem Kumar Soni2
LECTURE NOTE
ON
CHAPTER FOUR
PREPARED BY
PREM KUMAR SONI
ASST. PROF.
LNCTS
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Lecture notes of Concepts in Engineering Design
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Prepared by Prem Kumar Soni3
PRODUCT
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An article or substance that is manufactured or refined for sale.
Such as "dairy products“
A good, idea, method, information, object or service created as a
result of a process and serves a need or satisfies a want. It has a
combination of tangible and intangible attributes (benefits, features,
functions, uses) that a seller offers a buyer for purchase.
For example a seller of a toothbrush not only offers the physical
product but also the idea that the consumer will be improving the
health of their teeth.
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Product (business): an item that ideally satisfies a market's
want or need
Product (project management): a deliverable or set of
deliverables that contribute to a business solution
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Product Life-Cycle
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Product life cycle (PLC) is the course that a product’ssales and profits take over its lifetime
Product development
Introduction
Growth
Maturity
Decline
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Product life cycle (PLC) describes:
• Product class
• Product form
• Brand
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Product classes have the longest life cycles, with sales ofmany product classes in the mature stage for a long time
Product forms have the standard PLC— shape, introduction,rapid growth, maturity, and decline
Brands have changing PLCs due to competitive threats
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Adoption : the action or fact of adopting or being
adopted.
Product Life-Cycle
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Introduction stage is when the new product is first
launched
Takes time
Slow sales growth
Little or no profit
High distribution and promotion expense
Product Life-Cycle
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Growth stage is when the new product satisfies the market• Sales increase
• New competitors enter the market
• Price stability or decline to increase volume
• Consumer education
• Profits increase
• Promotion and manufacturing costs gain economies of scale
• Product quality increases
• New features
• New market segments and distribution channels are entered
Product Life-Cycle
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Maturity stage is a long-lasting stage of a product that hasgained consumer acceptance
Slowdown in sales
Many suppliers
Substitute products
Overcapacity leads to competition
Increased promotion and R&D to support sales andprofits
Product Life-Cycle
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Decline stage is when sales decline or level off for
an extended time, creating a weak product
Maintain the product
Harvest the product
Drop the product
Additional Product and Service
Considerations
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Product Decisions and Social Responsibility
Public policy and regulations regarding developing and
dropping products, patents, quality, and safety
Additional Product and Service
Considerations
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International Product and Service Marketing
Challenges
• Determining what products and services to
introduce in which countries
• Standardization versus customization
• Packaging and labeling
• Customs, values, laws
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Identification of customer needs
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Why identify customer needs?
Ensure that the product customer-focused and no
critical needs are missed or forgotten
Identify latent (hidden) and explicit needs
Fact base for justifying the product specs.
Archival record of the customer needs
Develop a common understanding of customer
needs among members of the development team
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Concept Development Plan
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Subtle Distinction: Needs & Product
Specs.
Needs are largely independent of any particularproduct we might develop; a team should be ableto identify customer needs without knowing if orhow it will eventually address those needs.
Specifications do depend on the concept we select.The specifications for the product we finallychoose to develop will depend on what istechnically and economically feasible and on whatour competitors offer in the marketplace, as well ason customer needs.
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Similar Terms
Other terms used for Customer Needs in industrial
practice:
Customer attributes
Customer requirements
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Five-Step method to Identify
Customer Needs
1. Gather raw data from customers
2. Interpret the raw data in terms of customer needs
3. Organize the needs into a hierarchy of primary,
secondary, and (if necessary) tertiary needs
4. Establish the relative importance of needs
5. Reflect on the results and the process
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Mission Statement
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Step 1: Gather Raw Data from
Customers
1. Interviews
2. Focus groups
3. Observing the product in use
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1.Interviews
Development team members discuss needs with a
single customer.
Interviews usually conducted in the customer’s
environment and typically last 1-2 hours.
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2. Focus Groups
A moderator (a team member or a professionalmarket researcher) facilitates a two-hourdiscussion with a group of 8 to 12 customers
Typically conducted in a special room equippedwith 2-way mirror and videotaped
Participants are usually paid a modest fee ($50 to$100 each); total cost about $2500
Firms that recruit participants, moderate focusgroups an/or rent facilities are listed in thetelephone book under “market research”
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3. Observing the Product in Use
Reveals important details about customer behavior
For example, a customer painting a house may usea screwdriver to open paint cans in addition todriving screws.
Observation may be completely passive, withoutany direct interaction with the customer, or mayinvolve working side by side with a customer,allowing members of the team to develop firsthandexperience using the product
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3. Observing the Product in Use
For some products such as do-it-yourself tools,
actually using the products is simple and natural
For others, such as surgical instruments, the team may
have to use the products on surrogate tasks (e.g.,
cutting fruit instead of human tissue when developing
a new scalpel)
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Choosing Customers
Griffin and Hauser estimated that 90 percent of thecustomer needs for picnic coolers were revealedafter 30 interviews.
In another case study , they estimated that 98percent of the customer needs for a piece of officeequipment were revealed after 25 hours of datacollection in both focus groups and interviews.
As a practical guideline for most products,conducting fewer than 10 interviews is probablyinadequate and 50 interviews are probably toomany.
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Interview Logistics
For example, if a 10-person team is divided into five
pairs and each pair conducts 6 interviews, the team
conducts 30 interviews in total
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Lead Users
Needs can be identified more efficiently by
interviewing a class of customers called lead users.
Lead users are customers who experience needs
months or years ahead of the majority of the market
and stand to benefit substantially from product
innovations.
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Lead Users These customers are particularly useful sources of data for
two reasons:
1. They are often able to articulate their emerging needs, because they have had to struggle with the inadequacies of existing products.
2. They may have already invented solutions to meet their needs.
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Which customer to select?
The choice of which customers to interview iscomplicated when several different groups ofpeople can be considered “ the customer.”
For many products, one person (the buyer) makesthe buying decision and another person (the user)actually uses the product.
A good approach is to gather data from the enduser of the product in all situations, and in casewhere other types of customers and stakeholdersare clearly important, to gather data from thesepeople as well.
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Customer Selection Matrix
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The Art of eliciting Customer Needs
Data
Gathering needs data is very different from a sales
call: the goal is to elicit an honest expression of
needs, not to convince a customer of what he or she
needs.
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Interview Questions
When and why do you use this type of product?
Walk us through a typical session using the product
What do you like about the existing products?
What do you dislike about the existing products?
What issues do you consider when purchasing the
product?
What improvements would you make to the product?
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General Hints for Effective Interaction
with Customers
Go with the flow.
Use visual stimuli and props.
Suppress preconceived hypotheses about the product technology.
Have the customer demonstrate the product and/or typical tasks related to the product.
Be alert for surprises and the expression of latent needs.
Watch for nonverbal information.
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Documenting interactions with
Customers
1. Audio recording
2. Notes
3. Video recording
4. Still photography
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Audio Recording
Making an audio recording of the interview is very
easy.
Transcribing the recording into text is very time
consuming, and it can be expensive to hire someone to
do it.
Could be intimidating to some customers
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Notes
Most common method for documenting
Designate one person as the primary note-taker andhave the other person concentrate on effectivequestioning.
Notetaker should strive to capture some of thewording of every customer statement verbatim.
Transcribe notes immediately after the interview tocreate a description of the interview that is veryclose to an actual transcript; sharing of insightsbetween the interviewers.
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Video Recording
Almost always used to document a focus group session.
Useful for documenting observations of the customer in the use equipment and/or using existing products.
Useful for bringing new team members “ up to speed” and as raw material for presentations to upper management.
Multiple viewings of video recordings of customers in action often facilitate the identification of latent customer needs.
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Still Photography
Taking photographs provides many of the benefits of video
recording.
The primary advantages of still photography are ease of
display of the photos, excellent imagine quality, and readily
available equipment.
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Final Result of Data Gathering Phase
A set of raw data, usually in the form of customer statements
but frequently supplemented by video recordings or
photographs.
Please remember to: write thank-you notes to the customers
involved in the data gathering process.
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Step 2: Interpret Raw Data in terms of Customer Needs
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Customer Data Template
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Step 3: Organize the Needs into a
Hierarchy
The result of step 1 and 2 should be a list of 50 to
300 need statements.
The goal of step 3 is to organize these needs into a
hierarchical list: Primary needs
Secondary needs
Tertiary needs
Organizing the needs into hierarchical list is
intuitive
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Needs Organization Procedure
1. Print or write each need statement on a separatecard or self-stick note.
2. Eliminate redundant statements.
3. Group the cards according to the similarity ofthe needs they express.
4. For each group, choose a label.
5. Consider creating super groups consisting of twoto five groups.
6. Review and edit the organized needs statements.
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Hierarchical List
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Step 4: Establish the Relative Importance
of the Needs
Useful in making trade-off decisions
Assign numerical importance weights for needs
Two basic approaches to the task:
1.Consensus of the team members based on their
experience with customers
2. Importance assessment based on further customer
surveys
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Importance Weights: Consensus or
Customer Survey?
Obvious trade-off between the two approaches iscost and speed versus accuracy.
Few customer will respond to a survey askingthem to evaluate the importance of 100 needs.
Typically the team will work with only subset ofthe needs. A practical limit on how many needscan be addressed in a customer survey is about50.
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Example
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Step 5 : Reflect on the Results and the
Process
Some question to ask include:
Have we interacted with all of the important types of
customers in our target market?
Are we able to see beyond needs related only to existing
products in order to capture the latent needs of our target
customers?
Are there areas of inquiry we should pursue in follow-up
interviews or surveys?
Which of the customers we spoke would be good
participants in our on-going development efforts?
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Step 5 : Reflect on the Results and the
Process
Some question to ask include:
What do we know now that we didn’t know when we
started? Are we surprised by any of the needs?
Did we involve everyone within our organization who
needs to deeply understand customer needs?
How might we improve the process in future efforts?
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THE END
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