Product Design & Development

Process
Product Design & Process Selection - defined
Product design – the process of defining all of the company's product
characteristics
 Product design must support product manufacturability (the ease with
which a product can be made)
 Product design defines a product’s characteristics of:
•appearance,
•materials,
•dimensions,
•tolerances, and
•performance standards.

Process Selection – the development of the process necessary to produce

the designed product.
Design of Services versus Goods

 Service design is unique

 must define both the service and concept
- Physical elements, aesthetic & psychological benefits
e.g. promptness, friendliness, ambiance
 Product and service design must match the needs and preferences of
the targeted customer group
Production Development Process -Definition

“The process that provides a firm the capability to have

distintictivness in its offerings by rolling out new products and
services faster and at lower cost”
Product Development Process

• A broad set of tools, techniques and concepts that

• Enables firms to bring out new products & services
• faster and at a lower cost
Organizations have experienced several tangible benefits from a good product
development process.
• While Japanese manufacturers such as Honda and Toyota introduced as much
as 85 models between 1982 and 1989, the American counterparts were able
to introduce only 49 models.
• By introducing products six months ahead of the competitors, a firm can
gain as much as three times of the cumulative profit over the life of the
product, compared to introducing the product along with the competitors
Potential Benefits/Outcomes
Potential Benefits/Outcomes
Provides unique benefits and features for the
customers
Meets customer expectations better than existing
Customer
products
Dimensions
Provides better quality as perceived by the
customers
Results in innovative offerings to the customers
Simplifies product use and maintenance
Sustained Reduces the cost of use over the life time
Performance Addresses environmental issues pertaining to
manufacture, use and disposal
Simplifies the manufacturing process
Operational Simplifies the assembly process
Advantages Minimises the need for revisions and changes
after introduction
Enables faster new product introduction
Strategic
Reduces the cost of the product
Advantages
Provides capabilities for mass customisation
Four Stages
• Concept Generation: understanding what the customer needs are and
translating them into alternative ideas for products that services that
can be developed
• Design: detailed specifications are first drawn about the product/service
• Development: physical development of the product; during this stage,
the details arrived at the drawing board are physically transferred to
reality (Prototype product)
• Production: Transfer of know-how to production personnel and
establishing the system for volume production. Typically, a few pieces of
the product are manufactured for the purpose of testing.
 The Product Design Process
Idea development: all products begin with an idea whether from:
 customers,
 competitors or
 suppliers
 Reverse engineering: buying a competitor’s product
Idea developments selection affects
 Product quality
 Product cost
 Customer satisfaction
 Overall manufacturability – the ease with which the product can be made
Product Design Process
Step 1 - Idea Development - Someone thinks of a need and a
product/service design to satisfy it: customers, marketing,
engineering, competitors, benchmarking, reverse engineering
Step 2 - Product Screening - Every business needs a
formal/structured evaluation process: fit with facility and labor
skills, size of market, contribution margin, break-even analysis,
return on sales
Step 3 – Preliminary Design and Testing - Technical specifications are
developed, prototypes built, testing starts
Step 4 – Final Design - Final design based on test results, facility,
equipment, material, & labor skills defined, suppliers identified
Sequential Decision Points
Design
Concept Generation

Idea Feasibility Preliminary

Generation Study Design No
Yes
Product Process Design
feasible? Planning OK?
Yes
No Cost
Planning
Production
Final Yes Prototype
Prototype
Design & Manfg. Development
OK?
Specifications & Testing
No
Commercial
Development
Production
 Stage Gates

Gate 1 Gate 2 Gate 3

Concept Product Development Prototype

Generation Design Testing Production

0 7 12 20 24
Time (Months)
 Traditional Approach to Product Development
Process

Customers Suppliers

Marketing Design Planning Procurement Production Finance

Modern Approach

e rs Planning Pro
m cur
u sto em
C en
t

Concurrent Engineering
Marketing

Production
Team Structure
Des
ig n a n ce
Suppliers Fin
Quality Function Deployment

5. Tradeoffs
House of Quality

3. Product
2. Importance
characteristics

1. Customer 4. Relationship 6. Benchmarks

requirements matrix

7. Technical assessment &

target values
House of Quality : An Illustration for Restaurant
Correlation:
++: Strong Positive
+: Positive
+ -: Negative
-- --: Strong Negative

T im e t a k e n t o c o o k t h e

O rd e r p ro c e s s in g t im e

c o u n t e rs in p e a k t im e
T h ic k n e s s o f p a c k in g
+
+ + +

N u m b e r o f s e rv ic e

N u m b e r o f t a b le s
T e m p e ra t u re o f
Competitive Evaluation
Technical

c o o k e d it e m
Characteristics
X- Own Company

a v a ila b le
m a t e ria l
A - Competitor A
Customer B - Competitor B

fo o d
Requirements (5 is best)
1 2 3 4 5
Steaming hot 7 ++ ++ A B X
Enough space to sit & eat 4 - ++ ++ X A B
Less time during peak hours 6 - -- ++ + X B A

R e d u c e t im e t o 2 m in u t e s
2 ++

I n c re a s e t h e c o u n t e rs b y
Easy to carry home A X B

R e d u c e it b y 1 0 % o f t h e
2 - -- + +

M a in t a in c u rre n t L e v e l
Quick order processing X A B

M a in t a in c u rre n t le v e l

M a in t a in c u rre n t le v e l
Importance Weighting 7 6 9 4 6 4 Importance Scale:
Strong: 9
Medium: 3
Small: 1

c u rre n t le v e l
Target Values

one
5
4 X A,B A,B X
Technical Evaluation
3 A X B X,B X,A,B
(5 is best)
2 B X A A
1
Performance Measures
Target costs achievement status
Cost based Quantum of value engineering efforts
measures Cost of first production run
Cost overrun of prduct development project
Percentage of standard parts & processes
Time to return to normal quality
Design Number of Revisions in the product design
effectiveness Cost of field repair/service during first year after
introduction
Time overrun of product development project
Time to market
Concept to market
Strategic
Number (or rate) of new products introduced
Measures
Percent of new products in the overall product
portfolio
Total Product Cost
Market share of the new product
Market impact
Total Product Sales in the first two years after
introduction