Transcript Document

Product Family and Product Portfolio design
Product Portfolio
A set of different products offered by a company
at a given point of time.
Product architecture
A hierarchical, structural description of each product,
Often based on functional decomposition
Product Portfolio Architecture
Description of components/modules/systems of a set of
products (past, present, future) offered by the company
Product Family and Product Portfolio design
Single
Fixed unshared
Adaptable
Modular family
Modular generations
Modular
Consumable
Standard
Parametric
Bespoke
Customized
Parametric
Different products do not share
any components or modules
[High sales volume]
Product Family and Product Portfolio design
Single
Fixed unshared
Adaptable
Modular family
Modular generations
Modular
Consumable
Standard
Parametric
Bespoke
Customized
Parametric
Products do not share components,
Have adjustable input parameters
Product Family and Product Portfolio design
Single
Fixed unshared
Adaptable
Modular family
series of products that share some
modules (software, hardware)
Modular generations
Modular
Consumable
Standard
Parametric
Bespoke
Customized
Parametric
Images (c) Krups
Product Family and Product Portfolio design
Single
Fixed unshared
Adaptable
Modular family
Each subsequent model
enhances only some subset of
the modules of the
previous generation
Modular generations
Modular
Consumable
Standard
Parametric
Bespoke
Customized
(a) Canon®Parametric
IXUS 700, Feb 05
(b) Canon® IXUS 750, Aug 05
 Same CCD, Lens; Different LCD, controls
Product Family and Product Portfolio design
Single
Fixed unshared
Adaptable
Architecture differentiates
modules based on
“module is consumable” or not
Examples:
Modular family
Modular generations
Modular
Consumable
Standard
Parametric
Bespoke
Customized
Parametric
Ink-cartridges for ink-jet printers
film for film cameras, …
Product Family and Product Portfolio design
Single
Fixed unshared
Adaptable
Modular family
Modular generations
ATI Radeon X300 (LE)
Modular
Nvidia GeForce PCX 5750
Consumable
Standard
Interface (mech, elec, software)
follows a published standard
Parametric
Canon EF-lens mount system
Bespoke
Bus-architecture in PC’s
Customized
Parametric
Product Family and Product Portfolio design
Single
Fixed unshared
Adaptable
MICRON 1GB DDR2 533MHZ DIMM MODULE
Modular family
Modular generations
Modular
MICRON 256MB DDR2 533MHZ DIMM MODULE
Consumable
Standard
Parametric
Bespoke
Customized
Parametric
modules may be parametrically
modified and fit into the product
at the time they are ordered
Examples:
PC modules
Product Family and Product Portfolio design
Single
Fixed unshared
Adaptable
Modular family
Modular generations
Modular
Consumable
Standard
Parametric
Bespoke
Product designed and made
Based on customer-provided Engg spec
Parametric
Example: Tsing Ma Bridge
Customized
Product Family and Product Portfolio design
Single
Fixed unshared
Adaptable
Modular family
Modular generations
Modular
Consumable
Standard
Parametric
Customer configures product
by selecting a series of
different modules that make up
the product
Bespoke
Customized
Parametric
Dell PCs, Automobiles, Swatch,
MyBarbie, NIKEiD, …
Designing Portfolios with multiple products
1. Statistical method: the customer-market model
Interview customers  identify reqts
SURVEYS:
 Importance of each reqt
 Identify target values (m, s) for each reqt
 Identify time-variations of reqts
Segregate customer-base into segments (factor analysis)
Analyze specs for each segment for each requirement
m1 m2 … mk
mpop
s1 s2 … sk
spop
Designing Portfolios with multiple products
1. Statistical methods: demand assessments via customer surveys
Possible decision tree
N
m constant over time?
modular generations
Y
spop is large ?
N
fixed unshared portfolio
Y
segment s’s ≈ population s ?
N
modular families
Y
parametric/adjustable portfolio (e.g. car seats)
How to design Portfolios with multiple products
2. Functional Architecture: Break the product into functional modules
power saw
screwdriver
scumbuster
How to design Portfolios with multiple products
2. Functional Architecture: Break the product into functional modules
How to design Portfolios with multiple products
3. Systematic Design Approach for size-ranging (Pahl and Beitz)
Advantages of scaling:
(a) The products are geometrically similar
(b) We may use the same design drawings/models (change scale)
(c) Manufacturing benefits: e.g. pantographs, tooling design
Pahl and Beitz:
Optimal schemes use geometric scaling
Systematic Design Approach for size-ranging..
Scaling and Non-dimensional techniques
Length of a feature in the base design = L0,
Length of the same feature in a different size of model = L1
Two products are geometrically similar if, for each feature,
the ratio fL = L0 / L1
fL is non-dimensional
Systematic Design Approach for size-ranging..
Scaling and Non-dimensional techniques
Step 1. Find the functional characteristic
Step 2. Find a non-dimensional constant related to the characteristic
Step 3. Define size steps for functional characteristic in geometric series
Step 4. Scale all geometric features to maintain same non-dimensional
constant value (functionality).
heat dissipation = K ( surface area)
scale factor fL  area increases by fL2
increase in heat generation = K(fL )
A simple heat sink
=> heat sink may be scaled up by fL0.5
How to design Portfolios with multiple products
4. Taguchi’s Loss Function
Men’s dress shirts: 10 sizes
Each size: neck (collar length) and sleeve (arm length).
neck sizes increments: 1 cm
sleeve lengths increments: 2 cm.
Person size ≠ nearest shirt size  “Loss of Quality”
4. Taguchi’s Loss Function
Men’s dress shirts
Neck size = y
Target = m
If y ≠ m, there is a loss
Loss = L(y) = L( m + (y-m))
Using Taylor-series expansion:
L(m) + (y-m) L’(m)/ 1! + (y – m)2 L”(m)/ 2! + …
4. Taguchi’s method: Loss function..
Loss = L(y) = L( m + (y-m))
= L(m) + (y-m) L’(m)/ 1! + (y – m)2 L”(m)/ 2! + …
Ideally:
(a) L(m) = 0 [if actual size = target size, Loss = 0], and
(b) When y = m, the loss is at its minimum, therefore L'(m) = 0
Taguchi’s Approximation: L(y) ≈ k( y – m)2
4. Taguchi’s Method: Loss Function…
Assume
tolerance limits : D1 and D2
neck size in range: [ m – D1, m + D2].
out-of-tolerance losses: D1 and D2
Assume over-size/under-size loss = $ 400
L(y) = k( y – m)2
y < m, k1 = 400/ D12
y > m, k2 = 400/ D22 .
[out-of-limit]
4. Taguchi’s Method: Loss Function Example
Let
D1 = 0.5 cm, and D2 = 1 cm,
k1 = 400/ 0.52 =1600, and k2 = 400/ 1.02 = 400,
loss function :
2

1600
(
y

m
'
)
, y  m'

L( y )  
2

400
(
y

m
'
)
, y  m'

If a person has a neck size = 40.2,
Or
(i) Buy a size 40, => Loss of value = 1600 ( 40.2 – 40)2 = $64,
(ii) Buy a size 41, => Loss of value = 400 ( 41 – 40.2)2 = $256.
4. Taguchi’s method: determination of size ranges
Break even point for customers:
1600( y – 40)2 = 400 ( 41 – y)2
y* = 40.33
40.33
41
Net loss to community: L 1600  ( x  40) dx  400  (41 x) 2 dx  $59.3
2
40
40.33
If manufacturer offers only even sizes (40, 42, 44,…):
Break even point: 1600( y – 40)2 = 400 ( 42 – y)2, or y* = 40.67
40.67
42
40
40.67
Net loss to community: L 1600  ( x  40) 2 dx  400  (42  x) 2 dx  $237
4. Taguchi’s method: determination of size ranges
Break-even model:
Compare
total consumer loss with manufacturer benefit/order
Estimate of manufacturer benefit: (retail price – production cost)
Example:
(retail price – production cost) = $180
Consumer loss on size ranges (40, 41, …) = $59.3 < $180
Consumer loss on size ranges (40, 42, …) = $237 > $180
40.6
41.8
40
40.6
L 1600  ( x  40) 2 dx  400  (41.8  x) 2 dx  $180
Break even point: steps of 1.8cm
How to design Portfolios with multiple products
5. Systematic, Intuitive Methods
5.1. SCAMPER
5.2. Orthographic analysis
Step 1. List independent attributes
Step 2. Coordinate system, one axis per attribute
Step 3. List values along each axis
Step 4. Combine, Permute, Interpolate, Extrapolate
Orthographic analysis: Food Manufacturer Example
current products
current clients
frozen vegetables

frozen mashed potatoes
department stores
restaurants
fried potato chips 
department stores
Supermarket
Restaurant
Fry
Vegetable
Mash
Potato
Freeze
Orthographic analysis: Food Manufacturer Example
Supermarket
Restaurant
Fry
Vegetable
Mash
Potato
Freeze
Combine (processes): “fry” + “mash”  hash-browns
Combine (materials): potato + vegetable  vegetarian patty
Permute: fry vegetables  vegetable chips
Extrapolate: add fruits  banana chips
Interpolate: half cooked potato chips  refry-to-eat