Fall2005- ENGR 3200U 1

Customer Needs & Product Specifications

Fall2005- ENGR 3200U 2
Product Planning Process
Planning
Planning
Concept
Development
Concept
Development
System-Level
Design
System-Level
Design
Detail
Design
Detail
Design
Testing and
Refinement
Testing and
Refinement
Production
Ramp-Up
Production
Ramp-Up
Four Phases of Design Progress
The product planning phase precedes the Design process.
Fall2005- ENGR 3200U 3
Xerox Lakes Project Example
Xerox Document
Centre 265
Xerox Cooperation is a global Enterprise offering a wide range of
documents related products. Its mission is being a leader in the global
document market. Technological innovation in a rapid changing market is
their key element in competitive strategy. Lakes is a project in Xerox that
resulted a product called Centre 265.
Fall2005- ENGR 3200U 4
Product Planning Process
Product plan identifies the portfolio of products to be developed by the
organization and the timing of their entering to the market.
Main output of Product Planning Process is Mission Statement
Fall2005- ENGR 3200U 5
Four Types of Product Planning
Process
1996 1997 1998 1999 2000
Hodaka
Lakes
H-Net
L-Net
Astro
595 6010 392 393
New
Platforms
Derivatives
Improvements
Fundamentally New
Legend
Project
Product
Release
Fall2005- ENGR 3200U 6
Five Steps of Product Planning
Process
Evaluate and
Prioritize
Projects
Allocate
Resources and
Plan Timing
Portfolio
of
Projects
Multiple Projects
Compl ete
Pre-Project
Pl anni ng
Product
Plan
Mission
Statements
Product
Development
Process
Identify
Opportunities
To develop a product plan and a project mission statement a five steps
process is suggested:
1- Identify Opportunities
2- Evaluate and prioritize projects
3-Allocate resources and plan timing
4-Complete Pre-project planning
5- Reflect on the results and the process
Fall2005- ENGR 3200U 7
Five Steps of Product Planning
Process
Step 1: Identify Opportunities
Ideas may come from several sources:
Market, sales personnel, R&D, Current Product development team,
Manufacturing, Customer, Third parties such as suppliers, Inventor,
Business partner
Fall2005- ENGR 3200U 8
Five Steps of Product Planning
Process
Step 2: Evaluate and Prioritize Projects
Selection between hundreds or even thousands opportunities in a year
Competitive strategy
Market segmentation
Technology Trajectories
Product platform planning
Balancing the Portfolio
Fall2005- ENGR 3200U 9
1998 1999 1997 2000
Department
Workgroup
Personal
40 ppm
network
$20k
30 ppm
$10k
20 ppm
$8k
40 ppm
$16k
65 ppm
$23k
55 ppm
$20k
25 ppm
$9k
30 ppm
$10k
25 ppm
$10k
35 ppm
$15k
20 ppm
$7k
40 ppm
$20k
60 ppm
network
$35k
Legend
Xerox
product
competitor
product
potential
competitor
65 ppm
network
$31k
Year of
Release
HodakaProject
Lakes
Project
Lakes
Extensions
HodakaProject
Lakes
Project
Lakes
Extensions
M
a
r
k
e
t

S
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g
m
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n
t
Market Segment Map
Xerox B&W digital products and competitors in three market
segments. Key performance dimensions are pages per minute,
networking capacity and price
Fall2005- ENGR 3200U 10
Technology trajectories (S-Curves)
Light-Lens
Technology
Digital
Technology
Time
C
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r

P
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a
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c
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Fall2005- ENGR 3200U 11
Technology Roadmap
Functional Elements
Photo-
receptor
Scanner
Layout
Toner
Type
Output
Modes
User
Interface
Cylindrical
Drum
2D CCD Array
w/Optical Reduc.
Keypad
3-Pitch Belt
Photoreceptor
Full-Width, Linear Array
without Optical Reduction
Touch Screen, Remote PC
Color: Paper, Fax, Scan,
Local Network, Internet
Document
Centre
220, 230
Document
Centre
240, 255, 265
Document
Centre
2XX
Hodaka
Project
Lakes
Project
Lakes
Extensions
Document
Centre
3XX
Next
Platform
Technologies
n-Pitch Belt
Photoreceptor
High
Temperature
Low Melting
Point
Low Melting Point,
Low Emission
Touch Screen
Image
Processing
Automatic Image Quality
Diagnostics
On-Board
Diagnostics
Remote-Dialup
Diagnostics
Remote
Repair
Time
1200 dpi 600/1200 dpi 1800 dpi 600 dpi
Monochrome: Paper, Fax, Scan,
Local Network, Internet
Fall2005- ENGR 3200U 12
Product platform planning
time
Platform B
Platform
Product
Development
Derivative
Product
Development
Legend
Project
Product
Release
Research and
Technology
Development
Platform A
A Platform development project creates the structure of a
family of products. Derivative Products may be included in the
initial platform (A) of may follow thereafter (Platform B)
Fall2005- ENGR 3200U 13
Balancing the Portfolio
Product-Process Change Matrix
Extent of Production Process Changes
E
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C
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New
Core
Process
Next
Generation
Process
Single
Department
Upgrade
Tuning and
Incremental
Changes
No
Process
Change
New
Core
Product
Next
Generation
Product
Addition
to Product
Family
Minor
Product
Enhancement
No
Product
Change
Lakes
Project
Research and
Technology
Development
Breakthrough
Development
Projects
Platform
Development
Projects
Derivative
Product
Development
Current
Product/Process
Support
Fall2005- ENGR 3200U 14
Five Steps of Product Planning
Process
Step 3: Allocate Resources and Plan Timing
Project timing
Product Plan
Fall2005- ENGR 3200U 15
Aggregate Resource Planning
0%
20%
40%
60%
80%
1 0 0 %
120%
140%
Year 1 Year 2 Year 3
Capacity Utilization
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Fall2005- ENGR 3200U 16
Five Steps of Product Planning
Process
Step 4: Complete Pre-Project planning
Project is approved but before substantial resources are applied
A small cross- functional team
The Lakes core team: 30 people with wide range of technological
expertise, marketing, Manufacturing and service functions
Fall2005- ENGR 3200U 17
Mission Statement
Fall2005- ENGR 3200U 18
Lakes Project Mission Statement
Product Description

Networkable, digital machine with copy, print, fax, and scan functions
Key Business Goals

Support Xerox strategy of leadership in digital office equipment

Serve as platform for all future B&W digital products and solutions

Capture 50% of digital product sales in primary market

Environmentally friendly

First product introduction 4thQ 1997
Primary Market

Office departments, mid-volume (40-65 ppm, above 42,000 avg. copies/mo.)
Secondary Markets

Quick-print market

Small satellite operations
Assumptions and Constraints

New product platform

Digital imaging technology

Compatible with CentreWare software

Input devices manufactured in Canada

Output devices manufactured in Brazil

Image processing engine manufactured in both USA and Europe
Stakeholders

Purchasers and Users

Manufacturing Operations

Service Operations

Distributors and Resellers
Fall2005- ENGR 3200U 19
Five Steps of Product Planning
Process
Step 5: Reflect on the Results and Process
Asses the quality of both the process and the results
Fall2005- ENGR 3200U 20
Concept Development; Front-End
Process
Interrelated activities ordered roughly in the front-end process
Identify customer needs
Fall2005- ENGR 3200U 21
Case Study: Design of Screwdriver
Existing product
used to drive the
screw:
-Manual
screwdrivers
-Cordless
screwdrivers
-Screw gun
-Cordless drill with
driver bit
A successful hand tool Manufacturer was exploring the growing
market for hand-held power tool. Identification of the customer needs
an adequate process.
Fall2005- ENGR 3200U 22
Mission Statement: Screwdriver Project
Mission statement identifies a direction to go, but generally dont
specify a precise destination or the particular way to proceed
Fall2005- ENGR 3200U 23
Five Steps of Identifying
customer needs
To Identifying customer needs a five steps process is suggested:
1- Gather raw data from customer
2- Interpret the raw data in terms of customer needs
3-Organize the needs into a hierarchy of primary, secondary and (if
required) tertiary needs.
4- Establish a relative importance of the needs
5- Reflect on the results and the process
Fall2005- ENGR 3200U 24
Five Steps of Identifying
customer needs
1- Gather raw data from customer
One to one interview (One hour)
Focus groups (8 to 10 customers- $2500 each focus group)
Observing the product in use
Fall2005- ENGR 3200U 25
Five Steps of Identifying
customer needs
1- Gather raw data from customer
Fall2005- ENGR 3200U 26
Visual Information Example: Book Bag Design
Fall2005- ENGR 3200U 27
Five Steps of Identifying
customer needs
1- Gather raw data from customer
Number of Interviews
Case studies:
-90% of customer needs for picnic coolers were revealed after 30
interviews
-98% of customer needs for a piece of office equipment were revealed
after 25 hours data collection in both focus groups and interviews
General rule: Between 10 to 50 interviews
Fall2005- ENGR 3200U 28
Five Steps of Identifying
customer needs
1- Gather raw data from customer
Choosing Customers
Fall2005- ENGR 3200U 29
Five Steps of Identifying
customer needs
1- Gather raw data from customer
The Art of Eliciting customer Needs Data
Documenting Interactions with Customer (Template for the raw data)
Fall2005- ENGR 3200U 30
Case Study: Design of Screwdriver
Customer statements in the template for the Screw Drive (SD) case.
Fall2005- ENGR 3200U 31
Five Steps of Identifying
customer needs
2- Interpret the raw data in terms of customer needs
Fall2005- ENGR 3200U 32
Five Steps of Identifying
customer needs
3-Organize the needs into a hierarchy of primary, secondary and (if
required) tertiary needs.
Fall2005- ENGR 3200U 33
Case Study: Design of Screwdriver
Primary and Secondary
Customer needs, * s
indicate the rate of
secondary needs and !
Indicate a latent need
Fall2005- ENGR 3200U 34
Five Steps of Identifying
customer needs
4- Establish a relative importance of the needs
Fall2005- ENGR 3200U 35
Step 5: Reflect on the Results and Process
Asses the quality of both the process and the results
Five Steps of Identifying
customer needs
Fall2005- ENGR 3200U 36
HINTS
Capture What, Not How.
Meet customers in the use environment.
Collect visual, verbal, and textual data.
Props will stimulate customer responses.
Interviews are more efficient than focus groups.
Interview all stakeholders and lead users.
Develop an organized list of need statements.
Look for latent needs.
Survey to quantify tradeoffs.
Make a video to communicate results.
Fall2005- ENGR 3200U 37
Concept Development; Front-End
Process
Interrelated activities ordered roughly in the front-end process
Product Specification
Fall2005- ENGR 3200U 38
Case Study: Design of Screwdriver
Existing Suspension:
It is successful in the high-
performance segment of the market
racing cyclist with less concern for
cost or long term durability. The firm
wished to broaden the sales of the
suspension forks and therefore was
interested in developing a product
that would provide high value for the
recreation cyclists
Specialized Bicycle components was interested in developing a new
suspension fork for the mountain bike market.
Fall2005- ENGR 3200U 39
Case Study: Customer Needs for the
Suspension
Fork
Fall2005- ENGR 3200U 40
Language of Customer should be translated
A specification consists of a metric and a value.
For example:
Customer Language
Easy to Install
Specification
Average time to Assemble the Fork to the Frame is Less than 75
Seconds
What are Specifications
Fall2005- ENGR 3200U 41
When are specifications established?
Interrelated activities ordered roughly in the front-end process
Product Specification
Establishing the Target Specification is a preliminary specification
Later these specifications will be refined based on the limitations of the
product concept actually selected: Set Final Specification
Fall2005- ENGR 3200U 42
Four Steps of the process of Establishing
the Target Specifications
A four steps process is suggested:
1- Prepare the list of metrics
2- Collect competitive benchmarking
3-Set idea and marginally acceptable target values
4- Reflect on the results and the process
Fall2005- ENGR 3200U 43
Four Steps of the process of Establishing
the Target Specifications
1- Prepare the list of metrics
Metrics should be complete; Several metrics may be
necessary to completely reflect a single customer need.
Metrics should be dependent variables
This is a variation of what-not-how
Dependent variable example: Mass of the fork
Independent variable example: material used for the fork
Mass arises from the other independent decisions
Fall2005- ENGR 3200U 44
Four Steps of the process of Establishing
the Target Specifications
1- Prepare the list of metrics
The metrics should include the popular criteria.
Many customers buy products based on independently
published evaluations.
Popular Science, Consumer Reports
In case of bicycle: Bicycling and mountain bike magazine
Monster test machine is used by this magazine which measure
of the vertical acceleration of the handlebars as a bicycle
equipped with the fork runs over a block 50 millimeter tall
Fall2005- ENGR 3200U 45
List of Metrics
Spreadsheet
Includes
relative
importance and
the unit
Fall2005- ENGR 3200U 46
Need-Metrics Matrix
Fall2005- ENGR 3200U 47
Four Steps of the process of Establishing
the Target Specifications
2- Collect
competitive
benchmarking
(A room of house
of quality)
Based on the
Metrics
Fall2005- ENGR 3200U 48
Four Steps of the process of Establishing
the Target Specifications
2- Collect
competitive
benchmarking
(A room of house
of quality)
Based on the
Satisfaction of
Needs
Fall2005- ENGR 3200U 49
Four Steps of the process of Establishing
the Target Specifications
3-Set idea and marginally acceptable target values
At least X: the value of the brake mounting stiffness is specified to be at least 325
kilonewtons/meter)
At most X: the value of the mass of suspension forl is set to be at most 1.4 kilograms)
Between X and Y: spring preload between 480 and 800 Newtons
Exactly X: ideal value for the rake offset metric is set to 38 millimeters
A Set of Discrete Values: headset diameters 1.00, 1.125 or 1.250 inches
Fall2005- ENGR 3200U 50
Step 4: Reflect on the Results and Process
Asses the quality of both the process and the results
Four Steps of the process of Establishing
the Target Specifications
Fall2005- ENGR 3200U 51
As the team finalize the choice of a concept and prepares for subsequent
design and development, the specifications are revised.
A five steps process is suggested:
1- Develop Technical models of the product
2- Develop a cost model of the product
3- Refine the specifications, marking trade-offs where necessary
4-Flow down the specifications as appropriate
5- Reflect on the results and the process
Five Steps of the process of Setting the
Final Specifications
Fall2005- ENGR 3200U 52
1- Develop Technical models of the product
A technical model is a tool for predicting the values of the metrics for a
particular set of design decisions.
Example: Oil-damped coil spring concept suspension fork
Five Steps of the process of Setting the
Final Specifications
Fall2005- ENGR 3200U 53
1- Develop Technical models of the product
Five Steps of the process of Setting the
Final Specifications
Fall2005- ENGR 3200U 54
2- Develop a cost model of the product
The goal of this step is to make sure that the product can be
produced at the target cost
A simple method is a bill of material with cost estimates
Five Steps of the process of Setting the
Final Specifications
Fall2005- ENGR 3200U 55
2
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Five Steps of the process of Setting the
Final Specifications
Fall2005- ENGR 3200U 56
Five Steps of the process of Setting the
Final Specifications
3- Refine the specifications, marking trade-offs where necessary
Competitive map is the tool for this step. It is also called a trade-off map.
It is simply a scatter plot of competitive products along two dimensions
selected from the set of metrics
Fall2005- ENGR 3200U 57
3- Refine the specifications, marking trade-offs where necessary
Competitive map is the tool for this step. It is also called a trade-off map.
It is simply a scatter plot of competitive products along two dimensions
selected from the set of metrics
Regions by the marginal and ideal values are shown in the map.
Armed with technical performance model and a cost model the team can
asses it will be able to beat the trade off exhibited in the map
Five Steps of the process of Setting the
Final Specifications
Fall2005- ENGR 3200U 58
3- Refine the specifications, marking trade-offs where necessary
High performance suspensions (low monster score) have high manufacturing cost
Five Steps of the process of Setting the
Final Specifications
Fall2005- ENGR 3200U 59
3- Refine the specifications,
marking trade-offs where
necessary
The final specifications of the
suspension fork
Five Steps of the process of Setting the
Final Specifications
Fall2005- ENGR 3200U 60
4-Flow down the specifications as appropriate
For a complex system, specification should be flow down for the
subsystems and subassemblies.
Example: For an automobile the overall specifications contain metrics like
0-100 KM/hour acceleration time, turning radius and fuel economy.
However, spec. must also be created for the several dozen major
subsystems that make up the automobile including engine, body, breaking
system and
Five Steps of the process of Setting the
Final Specifications
Fall2005- ENGR 3200U 61
Step 5: Reflect on the Results and Process
Asses the quality of both the process and the results
Five Steps of the process of Setting the
Final Specifications