mse-415: product design

MSE-415: B. Hawrylo 1

9/4/07

MSE-415: Product Design

MSE-415: Product Design

Chapter 3

Product Planning


9/4/07

Website

Website

http://www.csun.edu/msem/

or

http://www.csun.edu/~rsh12598/•Course Description – Syllabus•Lecture notes and slides•Additional readings


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Lecture Objectives:

Lecture Objectives:

•Syllabus Review•Complete student bio-handouts

•Discuss types of product development projects New product platforms Derivatives of existing product platforms Incremental improvements to existing products Fundamentally new products

•Discuss the Product Planning process Identify opportunities Evaluate and prioritize projects Allocate resources and plan timing Complete pre-project planning Reflect on the results of the process


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Project PlanningProject

Planning•The Project Planning process takes place before:

a product development project is formally approved. substantial resources are applied. the larger development team is formed.

•Product planning ensures that product development projects support the broader business strategy of the company and addresses: What product development projects will be undertaken? What mix of fundamentally new products, platforms, and

derivative products should be pursued? How do the various projects relate to each other as a portfolio? What will be the timing and sequence of the projects?


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Planning•Each of the selected projects is then completed

by a product development team. In order for the team to complete the project they need to know the following: What market segments should be considered in designing the

product and developing its features? What new technologies (if any) should be incorporated into the

new product? What are the manufacturing and service goal constraints? What are the financial targets for the project? What are the budget and time frame for the project?


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Planning•So what is a project plan?

A project plan identifies the portfolio of products to be developed and the timing of their introduction to market.

Opportunities are identified from many sources including:– Marketing– Research– Customers– Current product development teams– Benchmarking of competitors

• A project plan breaks projects into four types: New product platforms Derivatives of existing product platforms Incremental improvements to existing products Fundamentally new products


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Planning•New product platforms

Major development effort Something totally new

– Digital copier platform (instead of light-lens)

•Derivatives of existing product platforms Extension of an existing product platform to better address

familiar markets with one or more new products.– A new light-lens copier.

•Incremental improvements to existing products Addition or modification of features on existing products in

order to keep product line competitive.– A slight change to remedy minor flaws.

•Fundamentally new products Radically different products or production technologies.


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DiscussionDiscussion

•What is the difference between New Platforms and Fundamentally New Products?

Provide Examples


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A Typical Project Plan

A Typical Project Plan

New Platforms

Derivatives

Improvements

Fundamentally New

2006 2007 2008 2009 2010 2011

Project

Product Release

Key-type lock

Value-lock: Lock Manufacturer

Waterproof

Lubricated

Bio-scan Type

CRES


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Create a Project Plan

Create a Project Plan

New Platforms

Derivatives

Improvements

Fundamentally New

2006 2007 2008 2009 2010 2011

Project

Product Release

Break into groups and create a projectplan for a product of your choice.


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Planning

Inadequate coverage of target markets with competitive products.

Poor timing of market introductions of products. Mismatches between aggregate development capacity and the

number of projects pursued. Poor distribution of resources, with some projects overstaffed

and others understaffed. Initiation and subsequent cancellation of ill-conceived products. Frequent changes in the direction of products.

•What happens if the organization does not carefully create the project plan?


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Project Planning – The Process

Project Planning – The Process

•The Project Planning Process

Identify opportunities Evaluate and prioritize projects Allocate resources and plan timing Complete pre-project planning Reflect on the results and the process

Identify opportunities

Evaluate and prioritize projects

Allocate resourcesAnd plan timing

Complete pre-project

planning

Productdevelopment

process

Scoping

Launch

Discovery Stage 1 Stage 2 Stage 3 Stage 4 Stage 5Gate

2Gate

1Gate

5Gate

4Gate

3

Idea Scree

n

Second Screen

Build Business

Case

Development Testing & Validation

Go to Development

Go to Testing

Go to Launc

h


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Planning•Step 1: Identify Opportunities

Ideas for new products and/or features can come from:– Marketing and sales personnel– Research and technology development organizations– Current product development teams– Manufacturing and operations organizations– Current/potential customers– Third parties such as suppliers, inventors, business partners

Opportunities can be collected passively or actively.


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Planning•What are some active approaches to identify

opportunities?

Document complaints about current products. Interview lead users with attention devoted to innovations. Consider new trends in lifestyles, demographics, and

technology. Systematically gather suggestions from current customers. Carefully study competitors products. (Benchmarking) Track the status of emerging technologies


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Planning•Step 2: Evaluate and Prioritize Projects

Competitive Strategy Market Segmentation Technological Trajectories Product Platforms


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Planning•Competitive Strategy

An organization’s competitive strategy defines a basic approach to markets and products with respect to competitors.

Technology LeadershipEmphasis on basic R/D of new technologies and the deployment of these technologies.

Cost LeadershipCompete on production efficiency, either through economies of scale, superior manufacturing methods, low-cost labor, or better management.

Customer FocusClose work with new and existing customers to assess their changing needs and preferences.

ImitativeAllow competitors to explore the market. Once a viable market is identified, firm quickly develops and launches product into that market.


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Planning•Market Segmentation

Divide the market into segments. Evaluate which market segments current products cover. Address which new products can best cover weakly covered

market segments.


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Planning•Technological Trajectories

Used to evaluate when to make a transition from one technology to the next.

Pro

duct

Per

form

ance

Time Today

Rotary

Bio-scanMaturity


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Planning

time

Platform BPlatform Product

Development

Derivative Product

Development

Legend

Project

Product Release

Research and Technology

Development

Platform A

Product Platform Planning

Bio-scan Voice-Recognition

What could some product derivatives be?


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PlanningEvaluating Fundamentally New Product Opportunities

•Market Size (units/year x average price)•Market Growth Rate (%/year)•Competitive Intensity (# of competitors and their strength)•Depth of the firm’s existing knowledge of market.•Depth of the firm’s existing knowledge of technology.•Fit with the firm’s other products.•Fit with the firm’s other capabilities.•Potential for patents, trade secrets, or other barriers for competition.•Existence of a product champion within the firm.


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PlanningExtent of Production Process Changes

Ext

ent o

f P

rodu

ct C

hang

es

NewCore

Process

NextGeneration

Process

SingleDepartment

Upgrade

Tuning andIncremental

Changes

NoProcessChange

NewCore

Product

NextGeneration

Product

Additionto Product

Family

MinorProduct

Enhancement

NoProductChange

Bio-scan

Research andTechnology

Development

BreakthroughDevelopment

Projects

PlatformDevelopment

Projects

DerivativeProduct

Development

CurrentProduct/Process

Support

Product Process Change Matrix


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Planning•Step 3: Allocate Resources and Plan Timing

It is likely that a firm cannot afford to invest in every product development opportunity in its desired balanced portfolio of projects.

– Allocate Resources– Project Timing


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PlanningAllocate Resources

. .

0%

20%

40%

60%

80%

100%

120%

140%

Year 1 Year 2 Year 3

C a p a c i t y U t i l i z a t i o n

Mech

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Indust

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Mech

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PlanningProject Timing

Determining the timing and sequence of projects must considera number of factors:

1. Timing of product introductions2. Technology readiness3. Market readiness4. Competition


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Planning•Step 4: Complete Pre-Project Planning

Core Team– Small, cross-functional team

Creates the Mission Statement


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Planning•Effective Mission Statement

Brief description of product. Key business goals. Target Market Assumptions and constraints that guide the development

effort. Stakeholders


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Valu-Lock Mission Statement

Valu-Lock Mission Statement

Product Description

Key Business Goals

Primary Market

Secondary Markets

Assumptions and Constraints

Stakeholders

Fill in information for mission statement.


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Planning•Step 5: Reflect on the Results and the Process

What are some questions that should be asked at this step to assess the quality of both the process and the results?

See page 49


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Next WeekSeptember 12,

2007

Next WeekSeptember 12,

2007Homework• Thought Question #1 on Page 52 of “Product Design and development”• Identify two (2) potential design and development ideas for use as a group project.

A brief, descriptive project title (2-4 words). This is critical! The two (2) nearest competitors (existing solutions) and price. A description of the product opportunity you have identified. Your description may include any of the

following: Documentation of the market need, shortcomings of existing competitive products, and definition of the target market and its size.

Ideas can make a job; faster, safer, less labor intensive, less expensive, improve on an existing design, solve a problem, simplify a task, etc. But ultimately the product MUST be profitable.

Examples: – Can opener for someone with arthritis– Flashlight for firemen– Method for securing luggage when traveling– Tool to determine when a fruit/vegetable is optimal ripeness– Cell phone operated without fingers (used in cold weather)

Read Chapter 16 – Gantt, PERT charts, managing projects, etc

mse-415: product design

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