Rizal Technological University

Brgy. Malamig, Boni Ave., Mandaluyong City

College Of Engineering and Industrial Technology
Industrial Engineering and Industrial Technology Department

Product Planning & Development

SUMMARY OF REPORTS

MODESTO, NATASHA S.
CEIT-06-701P
TF/6:30P-7:30P
CHAPTER 2: PRODUCT DEVELOPMENT PROCESS

A product development process is the sequence of steps or activities that an enterprise

employs to conceive, design, and commercialize a product.

A well-defined development process is useful for the following reasons:

 Quality assurance

 Coordination

 Planning

 Management

 Improvement

Generic development process. The process begins with a planning phase, which is the

link to advanced research and technology development activities. The output of the

planning phase is the project’s mission statement, which is the input required to begin

the concept development phase and which serves as a guide to the development team.

The conclusion of the product development process is the product launch, at which time

the product becomes available for purchase in the marketplace.

Six phases:

 Planning

 Concept development

 System level design

 Detail design

 Testing refinement
  Production rump-up

Concept development: “The Front-end process” The front-end process generally

contains many interrelated activities. Rarely does the entire process proceed in purely

sequential fashion, completing each activity before beginning the next.

The concept development process includes the following activities:

1. Identify customer needs

2. Establishing target specification

3. Concept generation

4. Concept selection

5. Concept testing

6. Setting the final specification

7. Project planning

8. Economic analysis

9. Benchmarking

10. Modelling and prototyping

Adapting the generic product development process. The generic process is most like

the process used in a market-pull situation

Technology-Push Products. In developing technology-push products, the firm begins

with a new proprietary technology and looks for an appropriate market in which to apply

this technology.
Platform Products: a platform products is built around a pre-existing technological sub-

system

High-Risk products: high-risk products are those that entail unusually large uncertainties

related to the technology or market so that there are is substantial technical or market

risk.

Quality Build Products: for the development of some products, such as software and

many electronic products, building and testing prototypes models is such a rapid

process that the design-build-test cycle can be repeated many times.

Complex system: When developing complex systems, modifications to the generic

product development process address a number of system-level issues.

Product Development Organization: In addition to crafting an effective development

process, successful firms must organize their product development staff to implement

the process in an effective manner.

Organization Are Formed by Establishing Links among Individuals: A product

development organization is the scheme by which individual designers and developers

are linked together into groups. The links among individuals may be formal or informal

and include, among others, these types:

 Reporting relationship

 Financial arrangements

 Physical layout
CHAPTER 3: OPPORTUNITY IDENTIFICATION

Opportunity is a favorable set of circumstances that creates the need for a new product,

service, or business idea

There are two types of opportunity: the extent to which the team is familiar with solution

likely to be employed, the extent to which the team is familiar with the need that the

solution is address.

Tournament Structure of Opportunity Identification. Opportunity vary widely in value;

however, that value is plague by uncertainty.

There are three basic ways of effective opportunity tournament:

 Generate a large number of opportunities

 Seek high quality of the opportunities generated

 Create high variance in the quality of opportunities

Effective Opportunities Tournaments

 Establish a charter

 Generate and sense many opportunities

 Screen opportunities

 Developing promising opportunities

 Select exceptional opportunities

 Reflect on the result and the process

CHAPTER 4: THE PRODUCT PLANNING PROCESS

The product plan identifies the portfolio of products to be developed by the organization

and the timing of their introduction to market. The planning process considers product

development opportunities identified by many sources, including suggestions from

marketing, research, customers, current product development teams, and

benchmarking of competitors.

Organization that do not carefully plan the portfolio of development projects to pursue

are often plagued with inefficiencies such as:

 Inadequate coverage of target markets with competitive products.

 Poor timing of market introduction of products

 Poor distribution of resources, with some projects overstaffed and others

understaffed

 Initiation and subsequent cancellation of ill-conceived projects

 Frequent changes in the direction of projects

Product developments can be classified as four types:

 New product platforms

 Derivative of existing product platforms

 Incremental improvements to existing products

 Fundamentally new products

To develop a product plan and project mission statements, we suggest a five-step

process:
  Identify opportunities

 Evaluate and prioritize projects

 Allocate resources and plan timing

 Complete pre-project planning

 Reflect on the result and process

CHAPTER 5: IDENTIFYING CUSTOMER NEEDS

This chapter present a method for comprehensively identifying a set of customer needs.

The goals of the methods are to:

 Ensure the products is focused on the customer needs

 Identifying latent or hidden needs as well as explained needs

 Provide a fact base for justifying the product specification

 Create an archival records of the needs activity of the development process

 Ensure that no critical customer need is missed or forgotten

 Develop a common understanding of customer needs among the members of the

development team

Needs: are largely independent of any particular product we might develop; they are not

specific too the concept we eventually choose to pursue. A team should identify

customer needs without knowing of or how it will be address those needs.

Mission Statement: specifies which direction to go in but generally does not specify a

precise destination or a particular way.

Five steps in identifying customer needs:

Step 1: Gather raw data from the customer

Three methods are commonly used

o Interview

o Focus group

o Observing the product

Choosing Customer, How many customer to interview in order to reveal most of the

customer? Needs can be identified more efficiently but interviewing lead users and/or

extreme users.

The art of eliciting customer needs data

 When and why do you use this type of products?

 Walk us through a typical session using the product

 What do you like about the existing product?

 What do you dislike about the existing product?

 What issues do you consider when purchasing a product?

 What improvement would you make to the product?

Here some hints for effective interaction on the customer needs

 Go with the flow

 Use visual stimuli and props

 Suppress preconceived hypotheses about the product technology

 Have the customer demonstrate the product and/or typical task related to the

product
  Be alert for surprises and expression of the latent need

 Watch for nonverbal information

Documenting interactions with the customer

 Audio recording

 Notes

 Video recording

 Still photography

Step 2: interpret raw data in terms of customer needs

Step 3: interpret the data in terms of hierarchy

 Print or write each statement on the separate card or self-stick note

 Eliminate redundant stamens

 Group cards according to the similarity of the needs they express

 For each group, choose a label

 Consider creating super groups consisting of the five groups

 Review and edit the organized needs statements

Steps 4: establish the relative importance of needs

Steps 5: reflect on the result and the process

CHAPTER 6: PRODUCT SPECIFICATION

What are specification? Products specs spell out in precise, measurable detail what the

product has to do. Product specification do not tell the team how to address the

customer needs.

When are specification established? Immediately after identifying the customer needs,

the team seats target specification.

Four steps of the process of establishing the target specification:

 Prepare the list of matrix

 Collect the competitive benchmarking information

 Set ideal and marginally acceptable target values for each metrics

 Reflect on the result and the process

Setting the final specification. As the team finalizes the choice of concept and prepares

for subsequent design and development, the specification are revitalized.

Setting final specs: a five step process

 Develop technical models of the product

 Develop a cost model of the product

 Refine the specifications, making trade-offs where necessary

 Flow down the specification as appropriate

 Reflect on the result and the process

CHAPTER 7: CONCEPT GENERATION

The activity of concept generation, a product concept is an approximate description of

technology, working principles, and form of the product.

A five-step method

1. Clarify the method

 Decompose a complex problem into simpler sub problem

 Focus initial efforts on the critical sub problems

2. Search externally

 Interview lead user

 Consult expert

 Search patents

 Search published literature

 Benchmarking related products

3. Search internally

 Both individual and group session can be useful

 Hints of generating solution concepts

4. Explore systematically

 Concept classification tree

 Concept combination table

 Managing the exploration process

5. Reflect on the result and the process

CHAPTER 8: CONCEPT SELECTION

Concept Selection is the process of evaluating concepts with respect to customer needs

and other criteria, comparing the relative strengths and weaknesses of the concepts, and

selecting one or more concepts for further investigation, testing, or development.

All team uses some method for choosing a concept

The methods vary in their effectiveness and include the following:

 External decision

 Product champion

 Intuition

 Multi-voting

 Web-based survey

 Pros and cons

 Prototype and test

 Decision matrices

Overview of methodology

Two-stage concept of selection methodology:

 Concept screening

 Concept scoring

Concept screening. The purposes of this stage are to narrow the number of concepts

quickly and to improve the concepts

Step 1: prepare the selection matrix

Step 2: rate the concept

Step 3: rank the concept

Step 4: combine and improve the concepts

Step 5: select one or more concepts

Step 6: reflect on the result and the process

Concept scoring is used when increased resolution will better differentiate among

competing concepts.

Step 1: prepare the selection matrix

Step 2: rate the concept

Step 3: rank the concepts

Step 4: combine and improve the concept

Step 5: select one or more concept

Step 6: reflect on the result and the process

Caveats

With experience, users of the concept selection methods will discover several subtleties.

Here we discuss some of these subtleties and point out a few areas for caution.

 Decomposition of concept quality

 Subjective criteria
 To facilitate improvement of concept

 Where to include cost

 Selecting elements of aggregate concepts

 Applying concepts selection throughout the development process

CHAPTER 9: CONCEPT TESTING

Concept testing. In a concept test, the development team solicits a response to a

description of the product concept from potential customers in the target market.

7 methods for testing the products concepts

Step 1: Define the purpose gg of the concept test. Knowing the purpose of the

experiment is essential to designing an effective experimental method.

Step 2: Choose a survey population. An assumption underlying the concept test is that

the population of potential customers surveyed reflects that of the target market for the

product.

Step 3: Choose a survey format

o face to face interaction

o telephone

o postal mail

o electronic mail

o internet
Step 4: Communicate the concept. The choice of survey format is closely linked to the

way in which the concept will be communicated.

Step 5: Measure customer response. When a concept test is performed early in the

concept development phase, customer response is usually measured by asking the

respondent to choose from two or more alternative concepts.

Step 6: Interpret the results

Step 7: Reflect on the results and the process

CHAPTER 10: PRODUCT ARCHITECTURE

Product architecture. A product can be thought of both functional and physical term

Type of modularity:

Slot-modular architecture- Each of the interfaces between chunks in a slot-modular

architecture is of a different type from the others, so that the various chunks in the

product cannot be interchanged.

Bus-modular architecture- There is a common bus to which the other chunks connect

via the same type of interface. A common example of a chunk in a bus-modular

architecture would be an expansion card for a personal computer.

Sectional-modular architecture- All interfaces are of the same type, but there is no

single element to which all other chunks attached. The assembly is built up by

connecting the chunks to each other via identical interfaces.

Implication of the Architecture

Product- changing an integral chunk may influence many functional elements and

requires change to several related chunks

Product variety- refers to the range of product models the firm can produce within a

particular time period in response to market demand.

Component standardization- is the use of the same components or chunk in multiple

times.

Product performance- as how well a product implements its intended functions.

Manufacturability- the product architecture also direct affects the ability of the team to

design each chunk to be produced at low cost.

Product development management- responsibility for the detail design of each chunk is

usually assigned to a relatively small group within the firm or to an outside supplier.

Establishing Architecture

We recommend a four-step method to structure the decision process. The steps are:

1. create the schematic of the product

2. cluster the elements of the schematic

3. create a rough geometric layout

4. identify the fundamental and incidental interaction

Delayed differentiation- postponing the differentiation of a product until late in the supply

chain is called delayed differentiation or simply postponement and may offer substantial
reductions in the cost of operating the supply chain, primarily through reductions in

inventory requirements.

Platform planning- the collection of assets, including components designs, shared by

these product is called platform.

CHAPTER 11: INDUSTRIAL DESIGN

Industrial design is a process of design applied to products that are to be manufactured

through techniques of mass production

Success can be attributed to several factors:

 small size and weight

 performance features

 superior ergonomics

 durability

 materials

 appearance

Five critical goals that industrial designers can help a team to achieve when developing

new products:

 utility

 appearance

 ease of maintenance

 low costs

 communication
A particular product is to characterize importance along two dimensions: ergonomics

and aesthetics.

Direct cost- is the cost of the ID services

Manufacturing cost- is the expense incurred to implement the product details created

through ID

Time cost is the penalty associated with extended lead time.

To explain the timing of the ID effort it is convenient to classify products as technology-

driven products and user-driven products.

Assessing the Quality of Industrial Design

1. Quality of Users Interface

2. Emotional Appeal

3. Ability to Maintain and Repair the Product

4. Appropriate Use of Resources

5. Product Differentiation

CHAPTER 12: DESIGN FOR ENVIRONMENT

Design for environment provides organizations with a practical method to minimize

these impacts in an effort to create a more sustainable society.

Environmental Impacts

 Global warming

 Resource depletion
  Solid waste

 Water pollution

 Air pollution

 Land degradation

 Biodiversity

 Ozone depletion

Design for experiments provides organizations with a practical method to minimize

these impacts in an effort to create a more sustainable society.

Step 1: Set the DFE agenda: drivers, goals and team

Internal drivers are the DFE objectives within the organization

 Product quality

 Public image

 Cost reduction

 Innovation

 Operational safety

 Employee motivation

 Ethical responsibility

 Consumer behavior

External drivers of DFE typically include environmental regulations, customer

preferences, and the offerings of competitors

 Environmental legislation
  Market demand

 Competition

 Trade organization

 Suppliers

 Social pressure

The typical composition of a DFE team (often a sub team within the overall project

team) consists of a DFE leader, an environmental chemistry and materials expert, a

manufacturing engineer, and a representative from the purchasing and supply chain

organization.

Step 2: Identify the potential environmental impacts

Step 3: Select DFE guidelines

Step 4: Apply the DFE guidelines to the initial product design

Step 5: Assess the environmental impacts

Step 6: Refine the product design to reduce or eliminate the environmental impacts

Step 7: Reflect on the DFE process and result

CHAPTER 13: DESIGN FOR MANUFACTURING

Customer needs and product specification useful for guiding the concept phase of

product development.
Manufacturing cost is a key determinant of the success of a product.

Our DFM method consists of five steps:

Step 1: Estimate the manufacturing cost

 Component cost

 Assembly cost

 Overhead cost

Two types of overhead cost:

Support cost- material handling, quality assurance, purchasing

Indirect allocation- are the cost of manufacturing that cannot be directly linked to a

product but that must be paid for to be in business

 Transportation cost

 Bill of materials

 Estimating the cost of custom components

 Estimating the cost of assembly

 Estimating the overhead cost

Step 2: Reduce the cost of components

 Understand the process constraints and cost drivers

 Redesign components to eliminate processing steps

 Choose the appropriate economic scale for the part process

 Standardize components and processes

  Adhere to “black box” components procurement

Step 3: Reduce the cost assembly

(𝑇ℎ𝑒𝑜𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝑚𝑖𝑛𝑖𝑚𝑢𝑚 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑎𝑟𝑡𝑠)(3 𝑠𝑒𝑐𝑜𝑛𝑑𝑠)

𝐷𝐹𝐴 𝑖𝑛𝑑𝑒𝑥 =
𝑒𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑚𝑏𝑙𝑦 𝑡𝑖𝑚𝑒

 Integrate parts

 Maximize ease of assembly

 Part is self-aligning

 Part does not need to oriented

 Part requires only one handed for assembly

 Part requires no tool

 Part is assembled in a single, linear motion

 Part secured immediately upon insertion

 Consider customer assembly customers

Step 4: Reduce the cost of supporting production

 Minimize systemic complexity

 Error proofing

Step 5: Consider the impact of DFM decision on other factors

 The impact of DFM on development time

 The impact of DFM on development cost

 The impact of DFM on product quality

 The impact of DFM on external factors

 o Component reuse

o Life cycle cost

CHAPTER 14: PROTOTYPING

Prototyping refers to an initial stage of a software release in which developmental

evolution and product fixes may occur before a bigger release is initiated

Types of prototype

 First Dimension

o Physical prototypes

o Analytical prototypes

 Second Dimension

o Comprehensive prototype

o Focused prototype

What are prototypes used for?

 Learning

 Communication

 Integration

 Milestone

Principle of prototypes

 Analytical prototypes are generally more flexible than physical prototypes

 Physical prototypes are required to detect unanticipated phenomena

  A prototype may reduce the risk of costly iterations

 A prototype may expedite other development steps

 A prototype may restructure task dependencies

Prototyping Technologies

 3D CAD modeling and analysis

 Free-form fabrication

Planning for prototypes

Step 1: Define the purpose of the prototype

Step 2: Establish the level of approximation of the prototype

Step 3: Outline an experimental plan

Step 4: Create a schedule for procurement, construction, and testing

Alpha prototypes are typically used to assess whether the product works as intended

Beta prototypes are typically used to assess reliability and to identify remaining bugs in

the product

Preproduction prototypes are the first products produced by the entire production

process

CHAPTER 15: ROBUST DESIGN

Robust Design is the product development activity improving the desired performance

of the product while minimizing the effect of noise.

Design of experiments

The team identifies the parameters that can be controlled and the noise factors it wishes

to investigate. The team then designs, conducts, and analyze experiments to help

determine the parameter set points to achieve robust performance.

There are 7-steps in robust design

Step 1: Identify control factor, noise factor, and performance metrics

Step 2: Formulate an objective function

Step 3: Develop the experimental plan

Step 4: Run the experiment

Step 5: Conduct the analysis

Step 6: Select and confirm factor set points

Step 7: Reflect and repeat

CHAPTER 16: PATENTS AND INTELLECTUAL PROPERTY

Intellectual property refers to creation of the mind, such as invention; literary and artistic

work; designs; and symbols, names and images used in commerce.

Types of intellectual property

 Patent
  Trademark

 Trade secret

 Copyright

Intellectual property code of the Philippines

Republic Act No. 8293

Intellectual property rights under the I.P. Code: the intellectual property rights under the

intellectual property code are as follows:

1. Copyright and related rights;

2. Trademarks and service marks;

3. Geographic indications;

4. Industrial design;

5. Patents;

6. Layout designs (topographies) of integrated circuits; and

7. Protection of undisclosed information

Preparing a disclosure

Step 1: Formulate a strategy and plan

Step 2: Study prior inventions

Step 3: Outline claims

Step 4: Write the description of the invention

Step 5: Refine claims

Step 6: Pursue application

Step 7: Reflect on the result and the process

CHAPTER 17: PRODUCT DEVELOPMENT ECONOMICS

Elements of economic analysis

 Quantitative analysis

 Qualitative analysis

Economic analysis process

Step 1: Build a base-case financial model

Step 2: Perform sensitivity analysis

External factor

 Product price

 Sales volume

 Competitive environment

Internal factor

 Development speed

 Product performance

 Production cost

 Development program expense

Step 3: Use sensitivity analysis to understand project trade-offs

Trade-off rules

The near linearity of many sensitivity analysis allows the team to compute some trade-

off rules to inform day-to-day decision making. These rules take form of the cost per unit

change in the internal and external factors.

Limitation of quantitative analysis

 It focuses only on measurable quantities

 It depends on validity of assumptions and data

 Bureaucracy reduces productivity

Step 4: Consider the influence of the qualitative factors on project success

The most basic approach to qualitative analysis is to consider

 The interaction between the project and the firm as a whole

 The interaction between the project and the market in which the product will be

sold

 The interaction between the project and the macro environment

CHAPTER 18: MANAGING PROJECTS

Project management the activity of planning and coordinating resources and tasks to

achieve these goals

Project planning involves scheduling the project task and determining resource

requirements
Project execution involves coordinating and facilitating myriad task required to complete

project in the face of inevitable unanticipated events and the arrival of new information.

Understanding and Representing Task

Sequential task always have only one active task at a time.

Parallel task focuses on distributing task –concurrently performed by processes or

threads –across different processor.

Coupled task belongs to the class of multi-operation task, where two consecutive

operations are separated by a certain time interval or fixed duration.

The design structure matrix

It is the equivalent of an adjacency matrix in graph theory, and is used in systems

engineering and project management to model the structure of complex systems or

processes, in order to perform system analysis, project planning and organization

design.

Gantt chart a chart in which a series of horizontal lines shows the amount of work done

or production completed in certain periods of time in relation to the amount planned for

those periods.

Pert chart A PERT chart is a project management tool that provides a graphical

representation of a project's timeline. The Program Evaluation Review Technique

(PERT) breaks down the individual tasks of a project for analysis.

Critical path The critical path method, or critical path analysis, is an algorithm for

scheduling a set of project activities. It is commonly used in conjunction with the

program evaluation and review technique.

Baseline project planning

 The contract book

 Project task list

Team staffing and organizing

Seven criteria as determinants of the speed.

1. There are 10 of fewer members of the team.

2. Members volunteer to serve on the team.

3. Members serve from the team from the time of concept development until

product launch.

4. Members are assigned to the team full-time.

5. Members report directly to the team leader.

6. The key function, including at least marketing, design, and manufacturing, are on

the team.

7. Members are located within conversational distance of each other.

Project scheduling
The project schedule should reflect all of the work associated with delivering

the project on time.

Project budget

A 'risk management plan or plan risk management is a document that

a project manager prepares to foresee risks, estimate impacts, and define responses

to risks.

Modify the baseline plan

A baseline is a reference point for the project schedule.

Accelerating Projects

- Strat the project early

- Manage the project scope

- Facilitate the exchange or essential information

- Complete individual tasks on the critical path more quickly

- Aggregate safety times

- Eliminate some critical path entirely

- Eliminate waiting delays for critical path resources

- Overlap selected critical tasks

- Pipeline large tasks

- Outsource some tasks

- Perform more iterations quickly

- Decouple tasks to avoid iterations

 - Consider test of solution

Project Execution

- Coordination Mechanics

1. Information communication

2. Meetings

3. Schedule display

4. Weekly updates

5. Incentives

6. Process documents

Corrective Action

- Changing the timing or frequency of meetings

- Changing the project staff

- Locating the team together physically

- Focusing more effort on the critical tasks

- Engaging outside resources

- Changing the project scope or schedule