The document discusses various aspects of product design and development including brainstorming techniques, the product design process, contract manufacturing, core competencies, quality function deployment, designing for customers, value analysis/engineering, concurrent engineering, and measuring product development performance through metrics like time to market, productivity, quality, development costs, and financial analysis. It provides information on each stage of the product development lifecycle from planning and concept development through testing, production ramp-up, and measuring performance.

1. Product Design

2. Brainstorming
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Defer judgment
Build on ideas of others
Stay focussed
One person at a time
Go for quantity
Encourage wild ideas
Be Visual
• Rapid prototyping (Rough, Rapid and Right)

3. Product Design Process
• Contract manufacturers
– An organization capable of manufacturing and / or
purchasing all the components needed to produce
a finished product or a device
• Core competency
– One thing that the company can do better than its
competitors (e.g. Honda engines, Volvo safety

4. Examples of Highly Successful
Companies
• Samsung screens for iPod
• GE engines for Airbus
• Japanese components for US defense

5. Product Development Process ... 1
• Phase 0 - Planning
– Corporate strategy, technology assessment
– Target market, business goals, key assumptions
and constraints
• Phase 1 – Concept development
– Identify target market, evaluate alternative
concepts, select a concept for further
development

6. Product Development Process ... 2
• Phase 2 – System-level design
– Definition of product architecture
– Decomposition of the product in to sub-systems
– Functional specification and preliminary process
flow diagram
• Phase 3 – Design Detail
– Complete specification
– Drawings, computer files

7. Product Development Process ... 3
• Phase 4 – Testing and refinement
– Test the prototype to determine whether the system
would work
– Test whether customer requirements would be met
• Production ramp-up
– Intended production system is used
– Training
– Gradual transition from ramp-up to regular
production

8. Designing for Customers
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Does the customer need all the features
Is it easy to operate
Is it easy to maintain
Is it safe to use
Are the instructions clear
How is the after sales service
What is the life of the product

9. Quality Function Deployment
• Quality is meeting customer requirements
• QFD is a process that helps a company
determine the product characteristics
important to the customer and to evaluate its
own product in relation to others
• House of Quality – A matrix that helps a
product design team translate customer
requirements in to operating and engineering
goals

10. Types of Customer Information
• Solicited, Measurable, Routine
– Customer & Market Surveys, Trade Trials
• Unsolicited, Measurable, Routine
– Customer Complaints, Lawsuits
• Solicited, Subjective, Routine
– Focus Groups
• Solicited, Subjective, Haphazard
– Trade & Customer Visits, Independent Consultants
• Unsolicited, Subjective, Haphazard
– Conventions, Vendors, Suppliers

11. Building a House of Quality
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List Customer Requirements (What’s)
List Technical Descriptors (How’s)
Develop Relationship (What’s & How’s)
Develop Interrelationship (How’s)
Competitive Assessments
Prioritize Customer Requirements
Prioritize Technical Descriptors

12. Value Analysis / Value Engineering
• While designing a product, see the value as seen
by the customer in the product
• Purpose is to simplify the products and processes
• Achieve equivalent or better performance at a
lower cost
• Typically purchase department use VA as cost
reduction measure
• VE, performed before the production phase is a
cost avoidance measure

13. VE Definition
• Value Engineering is the systematic
application of recognized techniques by multidisciplined team(s) that identifies the function
of a product or service; establishes a worth for
that function; generates alternatives through
the use of creative thinking; and provides the
needed functions, reliably, at the lowest
overall cost.

14. VA / VE Approach
• Value = Function/Cost
• Does the item have any design features that
are not necessary?
• Can two or more parts be combined in to
one?
• How can we cut down the weight?
• Are there non-standard parts that can be
eliminated?

15. Designing Products for Manufacture
and Assembly
• Design could mean aesthetics like
shape, colour, texture etc.
• Or establishing characteristics of various
components like generators, pumps etc.
• Also Detailing of material, shapes, tolerance
etc.

16. From Design to Manufacturing
• Design documents are passed on to the assembly
line for optimizing and making of final product
• Manufacturing and assembly problems require
changes in design that could be very expensive
• One way out is to consult the manufacturing
engineers during the design phase
• Concurrent engineering – Emphasizes crossfunctional integration and concurrent
development of a product and its associated
processes

17. Measuring Product Development
Performance ... 1
• New products are very critical for being
competitive
• Companies must respond to changing customer
needs
• New products and processes must be brought
efficiently
• Companies need to bring in many more projects
just to retain the market share
• Smaller volume per model and shorter design life
mean resource requirements must drop
dramatically

18. Measuring Product Development
Performance ... 2
• Speed and frequency of bringing new
products
• Productivity of actual development process
• Quality of actual products introduced

19. Time to Market
• Frequency of new product introduction
• Time from initial concept to market
introduction
• Number started and number completed
• Actual vs. Plan
• % of sales coming from new products

20. Productivity
• Engineering hours per project
• Cost of materials and tooling per project
• Actual vs. Plan

21. Quality
• Conformance – reliability in use
• Design – performance and customer
satisfaction
• Yield – factory and field

22. Development Cost
Development time
Ramp-up cost
marketing and Support Cost per year
Costs in INR
2,00,000
2 years
7,50,000
5,00,000
Unit production cost
75
Unit price
175
Sales and Production Volume
Year 3
40,000
Year 4
50,000
Year 5
40,000

23. Project schedule
Development
Ramp-up
Marketing and Support
Production and Sales
Year 1
Year 2
Year 3
Year 4
Year 5

24. Costs in INR '000
Project Schedule
Development cost
Ramp-up
Marketing and
Support
Production Volume
Unit production cost
Sales volume
Unit price
Sales revenue
Period cash flow
PV year 1 at 12 %
Project NPV
Year 1
-1000
Year 2
Year 4
Year 5
-1000
-750
-500
-1000
-1000
1492
Year 3
-2250
-2009
-500
40
-75
40
135
5400
1900
1515
-500
50
-75
50
135
6750
2500
1779
-500
40
-75
40
135
5400
1900
1207