INSE 6411 Product Design Theory and Methodology

Product planningLecture 2Lecture 2

Andrea Schiffauerova, PhD.

Lecture outline

• Introduction to the design problemsProduct planning• Product planning

Reading material

• Most commonly used books:• The Mechanical Design Process (3rd ed ) by David G Ullman• The Mechanical Design Process (3rd ed.) by David G. Ullman• Product Design and Development (4th ed.) by Karl T. Ulrich and Steven D. Eppinger

• Course lecture notes + your own notes taken during the class sufficient!sufficient!

Th f t tiThemes for your presentations• Introduction to mechanical design problems and the design process• Design project definition and planningDesign project definition and planning• Introduction to design theory and methodologies• Customer needs and product specifications• Design concept generationg p g• Design problems, resolution of design conflicts• Design concept evaluation• Design concept selection• Design concept testing• Product design and generation, product architecture• Design evaluation for performance and the effects of variations, robust designrobust design• Design for X (cost, manufacture, assembly, etc.)• Prototyping and product launching, intellectual property rights• Design project management and economics• Design project management and economics• Guest lectures

Design problemg p

All design problems are ill‐definedAll design problems are ill defined• An analysis problem▫ Clear need▫ Problem easily understood▫ Just find correct formula

“What size SAE grade 5 bolt should be used to fasten together 2 pieces of 1045 sheet steel, each 4 mm thick and 6 cm wide, whichpieces of 1045 sheet steel, each 4 mm thick and 6 cm wide, which are lapped over each other and loaded with 100 N?”

• A design problem▫ Not enough information▫ Potential solutions not given▫ Constraints are incomplete

“Design a joint to fasten 2 pieces of 1045 sheet steel each 4 mmDesign a joint to fasten 2 pieces of 1045 sheet steel, each 4 mm thick and 6 cm wide, which are lapped over each other and loaded with 100N.”

Design problem

Design problems have many satisfactory solutions and no clear best solutionno clear best solution.

A design paradoxA design paradox• The more you learn the less freedom you have to use what you know

• The goal is to learn as much as early as possible in the design process, because later the changes will be more expensive.

Types of mechanical design problems

• Selection design▫ Simplest design problem▫ Simplest design problem▫ Selection of one (or more) items from a list of similar items

Example:

Types of mechanical design problems

• Configuration design▫ All the components have been designed▫ All the components have been designed▫ How to assemble them into the completed product▫ Some components may need to be altered in size,Some components may need to be altered in size, shape or function

Components:Components:

Possible configurations:

Types of mechanical design problems

• Parametric design▫ Finding values for the features that characterize the▫ Finding values for the features that characterize the studied objects Design a cylindrical storage tank that must hold 4 m3 of g y gliquid. The tank is described by parameters r, its radius, and l, its length.The volume is determined by lrV 2π=The volume is determined byGiven a volume equal to 4 m3

An infinite number of values for r and l will satisfy the 

lrV π=273.12 =lr

equation

Types of mechanical design problems

• Original design▫ If the design problem requires the development of a▫ If the design problem requires the development of a new process, assembly or component

▫ Each design problem represents something new and g p p gunique

Types of mechanical design problems

• Redesign▫ Most design problems solved in industry▫ Most design problems solved in industry▫ The modification of an existing product to meet new requirementsq

▫ Many redesign problems are routine▫ Mature design is a design which has remained unchanged over long period of time (examples include pencil sharpeners, staplers, hole punchers, etc.)

Mature design

Even mature designs change !    

Product design and development• Product development is a set of activities starting with the perception of a market opportunity and ending with the sale of a product• Product design is one aspect of the development process▫ Engineering design specifies how the technical systems will work

▫ Industrial design specifies the aesthetics, ergonomics, and user interface

• Other development activities include marketing and manufacturing• Success of the product typically depends on the success of all three development activities

Product design and development• Marketing▫ (pre‐design) Identification of market opportunities▫ (pre‐design) Identification of customer needs▫ (pre‐design) Identification of target pricing▫ (post‐design) Promotion of productD i• Design▫ Product quality▫ Product cost (includes development cost)▫ Development time▫ Development time▫ Development capability• Manufacturing▫ Production system▫ Production system▫ Supply chain

E lExamplesGood market research and bad design:A h A l

• Archos 20GBR l d O b 2001

• iPod 5GB▫ Released November 2001

Archos vs. Apple

▫ Released October 2001▫ 350 g, 1.3” thick▫ File‐based organization system▫ Ugly interface

▫ Released November 2001▫ 184 g, 0.78” thick▫ ID3‐based organization systemP tt i t f▫ Ugly interface ▫ Pretty interface

Product planning

Product planning

• Corporations typically plan products many years in advanceadvance• Product planning ensures that products support overall business strategyoverall business strategy• Product planning:▫ Establishes which market segments to targetg g▫ Determines which PD projects will be undertaken▫ Decides on the mix of new products vs. upgrades▫ Determines the timing and sequence of the projects

The product planning process

E l t d All t

Multiple Projects

C l t P d tEvaluate and Prioritize Projects

Allocate Resources and

Plan TimingPortfolioof

Projects

Complete Pre-Project PlanningProduct

PlanMission

Statements

Product Development

Process

Identify Opportunities

• The outcomes of the product planning process:The outcomes of the product planning process:▫ Portfolio of projects▫ Product planp▫ Mission statements

Identify opportunities

• Idea sources for new products▫ Marketing and sales personnel▫ Marketing and sales personnel▫ Research and technology development organizations▫ Current product development teamsCurrent product development teams▫ Manufacturing and operation organizations▫ Current or potential customers▫ Third parties such as suppliers, inventors, and business partners.

Evaluate and Prioritize Projects

• A firm can collect 100s or even 1000s of opportunities during a yearopportunities during a year.• Select the most promising projects to pursue.• Four useful perspectives to prioritize:• Four useful perspectives to prioritize:▫ Competitive Strategy▫ Market segmentationg▫ Technological trajectories▫ Product platforms

Competitive StrategyAn organization’s competitive strategy defines a basic• An organization’s competitive strategy defines a basic approach to markets and products with respect to competitors.• Possible competitive strategies:• Possible competitive strategies:▫ Technology leadership

Emphasis on basis research and development▫ Cost leadershipp

Focus on production efficiency (economies of scale, manufacturing methods, low‐cost labor, better management)

▫ Customer focusF ll l l t ’ d d fFollows closely customers’ needs and preferencesMay result in a broad product line with high product variety

▫ ImitativeAllows competitors to explore the productsAllows competitors to explore the productsIf their products are successful, the firm quickly launches  its imitations

Market Segmentation

• Dividing a market into segments allows the firm to consider the actions of competitors and the strengthconsider the actions of competitors and the strength of the existing products of the firm within each well defined group of customers.g p

Market SegmentationMarket Segmentation65 ppm

$23k65 ppm network

$31k

Department40 ppm

$16k

55 ppm $20k

60 ppm network

$35kLakes Project Lakes

Extensions

men

t

Workgroup40ppm30ppm

25 ppm $10k

35 ppm $15k

40 ppm $20k

LegendXerox

product

rket Segm

40 ppm network

$20k30 ppm $10k

20 ppm $8k

25 ppm $9k

30 ppm $10k

competitor product

potential competitor

Hodaka Project

Ma

Personal$8k $9k $10k

20 ppm $7k

Product segment map for Xerox

1998 19991997 2000 Year ofRelease

Technological Trajectories

• In technology intensive businesses, a key product decision is when to adopt a new technology in adecision is when to adopt a new technology in a product line.• Technology S‐curves are conceptual tool to help toTechnology S curves are conceptual tool to help to think about such decisions.

Technology S‐Curves Technology S‐Curves

DigitalTechnology

rman

cepi

er P

erfo

r

Light-LensTechnology

Ti

Cop

Time

Xerox expected that digital copier technologies were just emerging and that it could develop a full‐featured digital copier in the near future.

Product Platform Planning

• A platform development project▫ Creates the architecture for a family of products▫ Creates the architecture for a family of products▫ Involves major development effort• Derivative ProductsDerivative Products ▫ Extend an existing product platform to better address familiar markets

▫ May be included in the initial platform development effort or derivative products may follow thereafter.

Research and

Platforms versus Derivatives

Technology Development

Platform BPlatform Product

Development

LegendProjectProduct Release

Platform A

Derivative

time

Derivative Product

Development

time

Platforms versus DerivativesBalancing the portfolio

• The firm usually benefits from a diverse set of projectsprojects• The choice of competitive strategy should affect the shape of the product development portfolio• Many methods for balancing the portfolio of development projects• Product process change matrix• Product‐process change matrix▫ Plots the portfolio of projects along two dimensions:

A change in the product lineA change in production processes

Product‐Process Change MatrixProduct Process Change MatrixExtent of Production Process Changes

New NextG i

Single Tuning andl

NoResearch andh l Core

ProcessGenerationProcess

DepartmentUpgrade

IncrementalChanges

ProcessChange

NewCore

Product

TechnologyDevelopment

BreakthroughDevelopmentProjects

Changes Product

NextGenerationProduct

k

Projects

PlatformDevelopmentProjects

f Produ

ct 

Additionto ProductFamily

LakesProject

Derivatived

Extent of

MinorProduct

Enhancement

ProductDevelopment

NoProductChange

CurrentProduct/Process

Support

Allocation of resources and time planning

• A firm cannot invest in every product development opportunityopportunity• Prioritization of the projects based on the limited resources (budget and time)resources (budget and time)

Estimation of the time requiredEstimation of the time requiredBased of the complexity of  the product’s function

Time = A*PC*D0.85Time   A PC Dwhere     • A…constant based on past projects: A=30 for a small 

ith d i ti A 150 f lcompany with good communication, A=150 for a large company with average communication• D…product difficulty: D=1 if not too difficult (using well‐p y ( gknown technologies), D=2 if difficult (some new technologies), D=3 if extremely difficult (many new technologies)technologies)• PC…product complexity

f h dEstimation of the time required

• PC is based on the functions of the product• PC is based on the functions of the product

The space shuttle aft field joint functional decomposition

f h dEstimation of the time required

• The product complexity is estimated by ∑= jFjPC *• where j…the level in the function diagramF the number of functions at that level

∑ jj

Fj…the number of functions at that level• For the example above: PC=1*1+2*4+3*3=18

Estimation of the time required

• Time estimation is very difficult and subject to errorIt is recommended to base the estimation on 3• It is recommended to base the estimation on 3 estimates▫ o an optimistic estimateo…an optimistic estimate▫ m…most likely estimate▫ p…pessimistic estimate

64. pmoestimateTime ++

=

Development of the sequence for the tasksDevelopment of the sequence for the tasks• For each task it is essential to identify its predecessors (tasks done before it) and its successors (tasks done after it)

• CPM (Critical Path Method)▫ The Critical Path Method is a mathematically based algorithm for scheduling project activities. It is a network analysis technique.scheduling project activities. It is a network analysis technique.

▫ The Critical Path Method (CPM) enables the project Critical Path to be determined. This is a sequence of activities through a project network from start to finish.

Determines the time to complete the project and key milestonesDetermines the time to complete the project and key milestonesAllows tracking of critical activitiesProvides a visual presentation of the project

Development of the sequence for the tasks

• PERT (Program Evaluation and Review Technique)Very similar to CPM, except that every activity in a PERT network also has a variance associated with its completion timehas a variance associated with its completion time.

• Gantt chart▫ A bar chart that illustrates the project schedule

Development of the sequence for the tasks

• DSM (Design Structure Matrix)▫ A compact matrix representation of a system or projectA compact, matrix representation of a system or project

xxx x

C and D are coupled activities (should be executed at the same time)x

xx x

▫ Very useful when the order of the tasks is not evident

(should be executed at the same time)x

Aggregate resource planning

• Helps an organization make efficient use of its resources by pursuing only those projects which canresources by pursuing only those projects which can be completed with the budgeted resources

Aggregate resource planning. .

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Project timing

• Factors to consider:▫ Timing of product introductionsTiming of product introductions

The sooner the better▫ Technology readiness

h b f h l lThe robustness of technologies is critical!▫ Market readiness

The sequence of product introductionsq pNot too quickly, not too slowly

▫ CompetitionThe anticipated release of competing products mayThe anticipated release of competing products may accelerate the timing of development projetcs

The product plan

• The product plan identifies the portfolio of projects to be pursued by the development organization andto be pursued by the development organization and the timing of their introduction• The plan may divide projects into 4 categories:The plan may divide projects into 4 categories: ▫ New platforms▫ Derivatives of existing platforms ▫ Product improvements▫ Fundamentally new products

The product plan

HodakaNew Platforms

LegendLakes

H-Net

L-Net

Platforms

Derivatives

ProjectProduct Release

L Net

Astro

595 6010 392 393Improvements

Fundamentally New

1996 1997 1998 1999 2000

Astroy

The product plan of Xerox

Product mission statement

• The Mission Statement provides a detailed definition of the assumptions under which the product will be developeddeveloped• It includes:▫ Brief (one sentence) description of the product (avoid implying a specific product concept)implying a specific product concept)

▫ Benefit proposition▫ Key business goals (time, cost, quality)▫ Target market(s) for the productTarget market(s) for the product▫ Target price▫ Assumption and constraints that guide the development effort (manufacturing, service, environment)effort (manufacturing, service, environment)

▫ Stakeholders

Product mission statement

• Exhibit 3‐10

Next lecture

• Customer needsEngineering specifications• Engineering specifications

• Presentations of opportunity statements• Presentations of opportunity statements

DESIGN PROJECTOpportunity Statementpp y

• An opportunity statement is a 1‐ or 2‐sentence description of a product or market opportunitydescription of a product or market opportunity• Should not imply the use of any particular technologytechnology• Should not imply a specific product concept• Example:p▫ “Create a simple bedside device that displays internet weather forecasts so you can see what the weather will be when you wake up in the morning.”

DESIGN PROJECTOpportunity Statement

How to Identify OpportunitiesPotential sources:

pp y

• Potential sources:▫ Think about the frustrations and complaints your friends have about existing productsfriends have about existing products

▫ Think about inefficiencies in your daily routine▫ Scan the Table of Content of Proc. IEEE for the past few months to get an idea of emerging trends

DESIGN PROJECTOpportunity Statement – due next week!

• Each should make a very short presentation (max 3 slides):

pp y

slides):▫ Explain problem, need, or motivation▫ Explain necessary elements in solutionExplain necessary elements in solution▫ Summarize with opportunity statement

▫ You need to e‐mail me your presentations before next Thursday (Wednesday midnight is the deadline)