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Product Design
Sung Joo Bae
Assistant Professor
Operations and Technology Management
School of BusinessYonsei University
Fuzzy Front End of Innovation
ConceptDevelopment
System-level
Design
Detail
Design
Testing &
Refinement
Production
Ramp-up
How do we develop new ideas for products?
IDEO
• World’s largest and most successful design firm
• Worked with many Korean firms as well (Samsung, LG, etc.)
• Well known for their system of innovation
Case Study: IDEO Product Development
How would you characterize the following elements at IDEO?
Process Management Organization Culture
VIDEO: Deep Dive
Process at IDEO
• Prototyping
– 3R: Rough, Rapid, & Right
• Intense brainstorming
– Stay focused on the topic
– Encourage wild ideas
– Defer judgment to avoid interrupting the flow of ideas
– Build on ideas of others
– Only one conversation at a time (esp. for introverts)
– Be vidual
Process at IDEO
• Structure/Methodology– Phase 0: Understand & Observe
Understand client’s business and find the needs
– Phase 1: Visualize & Realize
Build models with overall product concept
– Phase 2: Evaluate & Refining
Enhance the prototype
Focus shifting from human factors to engineering issues
Shift from functional model to real model
– Phase 3: Detailed Engineering
Fully functional model
– Phase 4: Manufacturing Liaison
Organization at IDEO
• Small units (team-oriented)
• Flat hierarchy
• Peer pressure
• Low turnover
• Diversity in teams
Management at IDEO
• Low key
– Create the stage upon which designers can play the leading role
• Lead by example
• Connecting role with customers
• Knowledge management (Tech Box)
Culture at IDEO
• Failure & trust
• Child-like playfulness
• Attracts creative people
• Sharing & respect
– Comfortable with confusion, incomplete information, and paradox/ambiguity
• Simple rules
– Fail often to succeed sooner
– Stay focused
– Enlightened trail and error
Creative Design? Choices from 2010
Creative Design? Choices from 2010?
Creative Design? Choices from 2009
Creative Design? Choices from 2011 Fall (MBA)
What aspect of product is valued in your selection?
• Which product (svc/biz model etc. ) did you choose?
• Could you describe why you chose that specific product?
• Aesthetic appeal: color, shape
• Ease of use
• Functionality
• Uniqueness
• Environmentally friendly
• Longevity
• Symbolic status
• …………….
Recent Changes in Korea
• Development Focus
Engineering oriented Design Oriented Integrated Thinking
• Product Focus
Function Aesthetics (Form) Concepts (e.g. eco-)
• Product Strategy
Single product Product groups Platform (ecosystem)
Design
Function
Form
UserUse Environment
Freshman Zack Anderson can check
the weather at the monitor by the sink
in his fully automated dorm room.
Credits - Photo / Donna Coveney
Multifunction In-Dorm
Automation System"
(MIDAS)
Freshman R.J. Ryan hits the
'emergency' button in his
automatic dorm room on
East Campus. The button
activates 'party mode.‘
(relax mode, sleep mode
also possible)
VIDEO: MIDAS at workhttp://www.youtube.com/watch?v=wsPQWz9CWuA
&feature=player_embedded
a. Assimilation of scientific results into technology
b. Recognized need for a device, technique, or scientific understanding
c. Technology adoption for use
d. Technological need for understanding of physical phenomena and
responses
The Relationship between Science & Technology
Attributes of Five Development Projects
Stanley Tools Jobmaster Screwdriver
Rollerblade In-line Skate
HP Deskjet Printer
Volkswagen New Beetle Automobile
Boeing 777 Airplane
Annual production volume (units/year)
100,000 100,000 4 million 100,000 50
Sales lifetime (years) 40 3 2 6 30
Price (US$/unit) 3 200 300 17,000 130M
Part numbers (parts) 3 35 200 10,000 130,000
Development time (years)
1 2 1.5 3.5 4.5
Internal development team (peak size)
3 5 100 800 6,800
External development team (peak size)
3 10 75 800 10,000
Development cost (US$)
150,000 750,000 50M 400M 3B
Production investment
150,000 1M 25M 500M 3B
(Source: Ulrich & Eppinger)
New Product Success Factors
• Developing a superior, differentiated product with unique benefits and superior value to the customers
• Having a strong market orientation throughout the development process
• Getting sharp, early product definition before development begins
• Quality execution (completeness, consistency, and proficiency) of activities in the development process
• Having the correct organizational structure (multifunctional, empowered teams)
• Providing the sharp project selection decisions
• Top management: specifying new product strategy and providing needed resources
• Speed to market
(Cooper, 1996)
New Product Development Process
Design Activities:
• Consider product platform and architecture
• Assess new technologies
• Investigate feasibility of product concepts
•Develop industrial design concepts
•Build and test experimental prototypes
• Generate alternative product architectures
•Define major subsystems and interfaces
• Refine industrial design
• Define part geometry
• Choose materials
• Assign tolerances
• Complete industrial control documentation
• Reliability testing
•Life testing
•Performance testing
• Obtain regulatory approvals
• Implement design changes
• Evaluate early production output
PlanningConcept
Development
System-level
Design
Detail
Design
Testing &
Refinement
Production
Ramp-up
New Product Development Process
PlanningConcept
Development
System-level
Design
Detail
Design
Testing &
Refinement
Production
Ramp-up
Marketing Activities:
• Articulate market opportunity
• Define market segments
• Collect customer needs
• Identify lead users
• Identify competitive products
• Develop plan for product options and extended product family
• Set target sales price points
• Develop marketing plan
• Develop promotion and launch materials
• Facilitate field testing
• Place early production with key customers
(Source: Ulrich & Eppinger)
New Product Development Process
PlanningConcept
Development
System-level
Design
Detail
Design
Testing &
Refinement
Production
Ramp-up
Manufacturing Activities:
• Identify production constraints
• Estimate manufacturing cost
• Assess production feasibility
• Perform make-buy analysis
• Define final assembly scheme
• Set target costs
• Define piece-part production processes
• Design tooling
• Define quality assurance processes
•Facilitate supplier ramp-up
• Train workforce
• Refine assembly processes
• Begin operation of production system
(Source: Ulrich & Eppinger)
New Product Development Process
PlanningConcept
Development
System-level
Design
Detail
Design
Testing &
Refinement
Production
Ramp-up
Product planning is an activity that considers the portfolio of projects that an organization might pursue and determines what subset of these projects will be pursued over what time period
Which product development projects will be undertaken? How do the various projects relate to each other as a portfolio Timing and sequence of the projects?
(Source: Ulrich & Eppinger)
New Product Development Process
PlanningConcept
Development
System-level
Design
Detail
Design
Testing &
Refinement
Production
Ramp-up
1. Define the scope2. Gather raw data from customers (interviews, focus groups, observation)3. Interpret the raw data in terms of customer needs4. Organize the needs into a hierarchy of primary, secondary, and tertiary needs5. Establish the relative importance of the needs6. Reflect on the results and the process
(Source: Ulrich & Eppinger)
Identify
Customer
Needs
Establish
Target
Specification
Generate
Product
Concepts
Select
Product
Concepts
Test
Product
Concepts
Set
Final
Specification
Plan
Downstream
Development
Benchmark Competitive Products
Perform Economic Analysis
Build and Test Models and Prototypes
Defining the scope (Mission Statement)
(Source: Ulrich & Eppinger)
Mission Statement: Screwdriver Project
Product Description • A hand-held, power assisted device for installing threaded fasteners
Key Business Goals • Product introduced in fourth quarter of 2006
• 50% gross margin
• 10% share of cordless screwdriver market by 2008
Primary Markets • Do-it-yourself consumer
Secondary Markets • Casual consumer
• Light-duty professional
Assumptions • Hand-held
• Power-assisted
• Rechargeable battery
Stakeholders • User, retailer, sales force, service center, production, legal department
Raw Data from the Customers
(Source: MIT’s Product Design and Development Course Material)
Number of Analysts
(Source: MIT’s Product Design and Development Course Material)
Customer Data into Interpreted Needs
(Source: Ulrich & Eppinger)
Some Guidelines for Need Interpretation
(Source: Ulrich & Eppinger)
Exercises: Need Translation
(Source: MIT’s Product Design and Development Course Material)
Exercises: Need Translation
(Source: MIT’s Product Design and Development Course Material)
Hierarchical List of Needs
(Source: Ulrich & Eppinger)
New Product Development Process
PlanningConcept
Development
System-level
Design
Detail
Design
Testing &
Refinement
Production
Ramp-up
Identify
Customer
Needs
Establish
Target
Specification
Generate
Product
Concepts
Select
Product
Concepts
Test
Product
Concepts
Set
Final
Specification
Plan
Downstream
Development
What are specifications?- Customer needs are expressed in the “language of the customers.”- Specifications are the language of the manufacturer/service provider- “Measurable detail of what the product has to do”- Product requirements
(Source: Ulrich & Eppinger)
Target Specification
(Source: Ulrich & Eppinger)
For your class projects, measurable metric may not exist. In this case, just describe the specification of the final product/service/business model in terms of feature requirements
New Product Development Process
PlanningConcept
Development
System-level
Design
Detail
Design
Testing &
Refinement
Production
Ramp-up
Identify
Customer
Needs
Establish
Target
Specification
Generate
Product
Concepts
Select
Product
Concepts
Test
Product
Concepts
Set
Final
Specification
Plan
Downstream
Development
What are specifications?- Customer needs are expressed in the “language of the customers.”- Specifications are the language of the manufacturer/service provider- “Measurable detail of what the product has to do”- Product requirements
(Source: Ulrich & Eppinger)
Five-step Concept Generation Method
(Source: Ulrich & Eppinger)
Example of Problem Decomposition
(Source: Ulrich & Eppinger)
Five-step Concept Generation Method
(Source: Ulrich & Eppinger)
Solutions to Sub-Problems
(Source: Ulrich & Eppinger)
Concept Classification Tree
(Source: Ulrich & Eppinger)
• Division of the entire space of solutions into several distinct classes
• Identification of independent approaches to the problem
• Pruning of less promising branches
• Refinement of the problem decomposition for a particular branch
Concept Combination Table
(Source: Ulrich & Eppinger)
Concept Combination Table:A way to consider combinations of solution fragments systematically
< Concept combination table for the hand-held nailer & one possible combination >
Selection of Product Concepts
• The goal of concept selection is NOT to select the best concept
• The goal of the concept selection is to DEVELOP the best concept
• Combine and refine the concepts to develop better ones
• Selection Methods– External decision– Intuition– Multivoting
– Pros and cons– Prototype and test– Decision matrices
(Source: Ulrich & Eppinger)
Concept Generation, Selection, & Testing
(Source: Ulrich & Eppinger)
Concept Screening & Scoring
(Source: Ulrich & Eppinger)
Concept Screening
+ Better than
0 Same as - Worse than
Concept Scoring
Key Points
• Capture “what” not “how”
• Try to meet customers in user environment
• Collect visual, verbal, or textual data
• Props will stimulate customer responses
• Interviews are more efficient than focus groups
• Interview stakeholders and lead users, not just average users if possible
• Look for latent needs
(Source: Ulrich & Eppinger)