Chapter 2 2

2.1
INTRODUCTION
PRODUCT DEVELOPMENT
PROCESS
Having defined the engineering design process in detail in Chap. 1
The development of a product is undertaken by a company to make a
profit for its shareholders.
Many business issues, desired outcomes, and accompanying strategies
that influence the structure of the product development process (PDP).

This chapter presents:

organizational structures for the design
product development functions
 2.2
PRODUCT
DEVELOPMENT
PROCESS

A generally accepted model of the product development

Diagram generally agree with those proposed by Asimow for the design
process with the exception of the Phase 0, Planning, and the omission of
Asimows Phases VI and VII.
Note that each phase narrows down to a point.
This symbolizes the "gate or review that the project must
successfully pass through before moving on to the next stage or phase
of the process
 Stage-gate of PDP encourage rapid progress in
developing a product.
To cull out the least promising projects before large
sums of money have been spent.
The amount of money to develop a project increases
exponentially.
Money spent in PDP is small compared to cost in sunk
capital and lost brand reputation if a defective product
has to be recalled from the market.
Important reason for using the stage-gate process is to
get it right.
 should
should be
be done
done before
before the
the approval
approval of
of the
the product
product development
development project.
project.

to determine the possible markets

and whether product is in alignment
with the corporate strategic plan.
Quick preliminary
technical and manufacturing feasibility investigation engineering a month
scoping assessment
business case marketing
identify the target market, the Detail
analysis several months
product positioning, and the investigation
market
product benefits. scoping
segmentation

predict the profitability of the technical capability

project.
to project the effects of possible risks. proof-of-concept analysis costs
decision of whether to proceed is
made in a formal and deliberate supply chain strategy production constraints
manner
discounted cash
flow analysis
financial analysis
multifunctional team with a sensitivity
designated leader is established analysis
considers the different ways the product and each subsystem can be designed.

takes what is known about the potential customers from Phase 0, adds its own
knowledge base and fashions this into a carefully crafted product design
specification (PDS).

determining the needs and wants of the customer is more detailed

using tools such as surveys and focus groups, benchmarking, and quality function
deployment (QFD).

tools are used to assist in the development of promising concepts.

The concepts best suited for development into a product must be determined using
selection methods.

Conceptual design is the heart of the product development process

without an excellent concept you cannot have a highly successful product.

 product
function architecture
subsystem

System
form and
level
embodiment features
design
design
Materials
selection
s ergonomic geometrical
s model
design
Manufacturing robustnes
Process s prototyping

patent set a price

licensing target
issues
 complete engineering description of a
tested and producible product

arrangement, form, dimensions,

tolerances, surface properties,
materials, and manufacturing

Internal specification for each special-purpose

part to be manufactured outsourced
manufacturing

issue of product robustness and

define the quality assurance
processes

CAD
Detailed The output of the detail design phase is
plan the control documentation for the
product.
fine-tune the fabrication
marketing

assembly processes
promotional materials

train the workforce

sales plan

alpha Beta

major review is carried out to determine whether the work has been done in a quality way
and whether the developed product is consistent with the original intent.
careful update is made of the financial estimates and the market prospects before funds are
committed for production.
 Factors for
Success
The product cost includes the cost
of:-

prorated costs of
materials capital equipment
components (the plant and its
manufacturing machinery),
assembly tooling cost
development cost
inventory costs
warranty costs

The price is the amount of money that a customer is willing to pay to buy
the product.

The difference between the price and the cost is the profit per unit.

Profit = Product Price - Product Cost

Profit = Product Price - Product Cost
What happen If a corporation cannot make a pro

bankruptcy

employees lose their positions

stockholders lose their investment

Everyone employed by a corporation seeks to

maximize this profit while maintaining the strength and
vitality of the product lines.
Four key factors that determine the
success of a product in themarket
place.

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.
Being First In The Market

First, the products life is extended.

A second benefit of early product release is increased market share.

A third advantage of a short development cycle is higher profit margins .

The team that brings the product first to market enjoys an initial price advantage and
subsequent cost advantages from manufacturing efficiencies.
 STATIC PRODUCT
PRODUCT
design change take long time periods
through incremental changes at the
subsystem and component levels.
automobiles and consumer appliances
like refrigerators and dishwashers.
market where customer is not eager
to change, technology is stable, and
fashion or styling play little role.
stable number of producers with high
price competition and little product
research
mature, stable technology, with
competing products similar to each
other.
More emphasis is placed on
manufacturing research than on
product research.
VS DYNAMIC
change the basic design concept
as often as the underlying
technology changes.
Wireless mobile phones, digital
video recorders and players, and
software
customers are willing to, and may
even demand, change.
many small producers, doing
active market research and
seeking to reduce product cycle
time.
Companies actively seek new
products employing rapidly
advancing technology.
More emphasis is placed on
product research than on
manufacturing research.
 Factors serve to protect a
product from competition

A product that requires high capital investment to

manufacture or requires complex manufacturing processes
tends to be resistant to competition.

The need for an extensive distribution system may be a barrier

to entry.

A strong patent position may keep out competition.

strong brand identification and loyalty on the part of the

customer.
Product life
cycle
Expanded view of product development cycle.
(a) Simplified technology development cycle. (b) Transferring from one technology growth
curve (A) to another developing technology (B).
ORGANIZATION FOR DESIGN AND PRODUCT DEVELOPMENT

Spectrum of engineering functions.

A Typical Organization by Functions
Organization by Projects
Hybrid
Organizations