Chapter 2 2014

DEPARTMENT OF
MANUFACTURING AND
MATERIALS ENGINEERING
MME 4116
PRODUCT DESIGN AND
DEVELOPMENT
BY:
DR MOHD RADZI BIN HAJI CHE DAUD

CHAPTER 2
PRODUCT DEVELOPMENT
PROCESS

2.1 Introduction
What is the product development
process?
3
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

2.2 Product Development Process
in Stage-Gate Format
4
• A generally accepted model of the product
development process:
 An important reason for using the stage-gate process is to
“quickly get it right”.

Phases of PDP (0 to 2)
5
• Phase 0:
The planning that should be done before the
approval of the product development project.
• Phase 1:
Concept development considers the different ways
the product and each subsystem can be designed.
• Phase 2:
System-Level Design is where the functions of the
product are examined, leading to the division of the
product into various subsystems.

Phases of PDP (3 to 5)
6
• Phase 3:
Detail Design is the phase where the design is
brought to the state of a complete engineering
description of a tested and producible product.
• Phase 4:
Testing and Refinement is concerned with making
and testing many preproduction versions of the product.
• Phase 5:
Production Ramp-Up is when the manufacturing
operations begins to make and assembly the product
using the intended production system.

Factors for Success
7
𝑃𝑟𝑜𝑓𝑖𝑡 = 𝑃𝑟𝑜𝑑𝑢𝑐𝑡 𝑃𝑟𝑖𝑐𝑒 − 𝑃𝑟𝑜𝑑𝑢𝑐𝑡 𝐶𝑜𝑠𝑡 (2.1)
______________________________________________________
• Four Key Factors of Success:
– The quality, performance, and price of the product.
– The cost to manufacture the product over its life cycle.
– The cost of product development.
– The time needed to bring the product to the market.

Sales & Revenue versus Time
8

Cost & Price versus Time
9

Static Versus Dynamic Products
10
• Static Product: The changes in their design take place
over long time periods through incremental changes
occurring at the subsystem and component levels.
– Automobiles
– Appliances: refrigerators, dishwashers
• Dynamic Products: Customers are willing to, and may
even demand, change.
– Wireless mobile phones
– Digital video recorders and players
– Software

Variations on the Generic PDP
11
• Platform Product is built around a preexisting
technological subsystem.
– Apple Macintosh operating system
– Black & Decker doubly insulated universal motor
• Customized Products are those in which variations
in configuration and content are created in
response to a specific order of a customer.
• In a highly competitive world marketplace, mass
customization appears to be one of the future
trends.

2.3 Product And Process Cycles
What are the stages of product and
process cycles?
12

Product Life Cycle
13

Product Development Cycle
14

Technology Development
15
Transferring Technology Development CycleSimplified Technology Development Cycle

2.4 Organization For Design and
Product Development
How can an organization affect the
design and product development?
16

Organization’s Effect on Design &
Product Development
17
• The organization of a business enterprise can
have a mjor influence on how effectively design
and product development are carried out.
Fundamental ways for organizing a business
FUNCTION PROJECTS

Engineering Functions
18

Links Between Individuals
19
• Reporting Relationships:
A subordinate is concerned about who his or her
supervisor is, since the supervisor influences evaluations,
salary increases, promotions, and work assignments.
• Financial Arrangements:
Another type of link is budgetary. The source of funds to
advance the project, and who controls these funds, is a vital
consideration.
• Physical Arrangements:
Studies have shown that communication between individuals is
enhanced if their offices are within 50 feet of each other!

Example of a functional organization
20

Simplified Project Organization
21

Hybrid Organization(matrix
Organization)
22
Functional Organization Project Organization
Hybrid Organization
• In the lightweight project organization the
functional links are stronger than the project links.
• In the heavyweight matrix organization the project
manager has complete budgetary authority, makes
most of the resource allocation decisions, and plays
a strong role in evaluating personnel.

Lightweight & Heavy Weight
Project Organizations
23

2.5 Markets and Marketing
How can we describe the market and
marketing for engineered products?
24

Markets
25
• Marketing is concerned with the interaction between the
corporation and the customer.
• We need to differentiate between the customer and the
user of the product.
• Market is an economic construct to identify those
persons or organizations that have an interest in
purchasing or selling a particular product, and to create
an arena for their transactions.
– Stock Market: Prototypical Market
• Strong brand names evolved as a way of building
customer recognition and loyalty.

Market Segmentation
26
• Cooper suggests that four broad categories of variables are:
– State of Being:
 Sociological factors: age, gender, income
 For industrial products: company size, industry classification,
 Location: urban, suburban, rural
– State of Mind:
 Attitudes
 Values
 Life styles
– Product Usage:
 Heavy User
 Loyalty
– Benefit Segmentation

Marketing Department
27
• Function:
– The marketing department in a company creates and
manages the company’s relationship with its customers.
• Expected Tasks:
– Preliminary marketing assessment
– Quick scoping of the potential sales
– Competition
– Market share at the early stages of the product planning
– Detailed market study
– Assisting with the introduction of the product into the
marketplace
– Providing product support system

Marketing Plan
28
• Identifying the target market
• Product strategy
• Expressing product benefits

Marketing Plan(2)
29
• Marketing plan should contain:
 Evaluation of market segments
 Identification of competitive products
 Identification of early product adopters
 Clear understanding of benefits of product to customers
 Estimation of the market size in terms of dollars and units
sold
 Determination of the breadth of the product line
 Estimation of product life
 Determination of the product volume/price relationships
 Complete financial plan including time to market

2.6 Technological Innovation
How does technological innovation
happen?
30

Invention, Innovation, and
Diffusion
31
• Invention:
– The creative act whereby an idea is conceived,
articulated, and recorded.
• Innovation:
– The process by which an invention or idea is brought
into successful practice and is utilized by the
economy.
• Diffusion:
– The successive and widespread implementation and
adoption of successful innovations.

Technologically Inspired Product
32

Business Strategies Related to
Innovation and Product Development
33
• Star businesses:
– High sales growth potential, high market share
potential
• Wildcat businesses:
– High sales growth potential, low market share
• Cash-cow businesses:
– Low growth potential, high market share
• Dog businesses:
– Low growth potential, low market share

Characteristics of Innovative
People
34
• Idea generator:
– The creative individual
• Entrepreneur:
– The person who “carries the ball” and takes the risks
• Gatekeepers:
– People who provide technical communication from
outsife to inside the product development
organization.
• Program manager:
– The person who manages without inhibiting
creativity
• Sponsor:

Types of Technology Innovation
35
• Need-driven innovation:
– where the development team seeks to fill an
identified gap in performance or product cost
(technology pull)
• Radical innovation:
– which leads to widespread change and a whole new
technology, and arises from basic research
(technology push)

Chapter 2 2014

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Chapter 2 2014