Transcript Chapters 13, 14, 15.ppt

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 Midterm
 Overview
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 Design
 Team Management
 Testing
 Discussion on Midterm II
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PART FOUR
DEVELOPMENT
McGraw-Hill/Irwin
Copyright ©2006 The McGraw-Hill Companies, Inc. All right reserved.
CHAPTER 13
DESIGN
McGraw-Hill/Irwin
Copyright ©2006 The McGraw-Hill Companies, Inc. All right reserved.
What Is Design?

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Has been defined as “the synthesis of
technology and human needs into
manufacturable products.”
In practice, design can mean many things,
ranging from styling to ergonomics to setting
final product specifications.
Design has been successfully used in a variety
of ways to help achieve new product
objectives.
One thing it is not: “prettying up” a product
that is about to manufactured!
Contributions of Design to the New
Products Process
Figure 13.1
Principles of Universal Design
Figure 13.2

Equitable Use: The design is useful to people with varied abilities.
Flexibility in Use: The design accommodates a wide variety of

Simple and Intuitive to Use: The design is easy for anyone to

Perceptible Information: The design communicates the required

Tolerance for Error: The design minimizes adverse consequences of

Low Physical Effort: The design can be used efficiently by anyone

Size and Space for Approach and Use: The product is easy to

preferences.
understand.
information to the user.
inappropriate use.
with minimal fatigue.
reach, manipulate, and use.
Source: James M. Mueller and Molly Follette Story, “Universal Design: Principles for Driving Growth Into New Markets,” in P. Belliveau, A. Griffin,
and S. Sodermeyer (eds.), The PDMA Toolbook for New Product Development (New York: Wiley, 2002), pp. 297-326.

Range of Leading Design Applications
Figure 13.3
Purpose of Design
Item Being Designed
Aesthetics
Ergonomics
Function
Manufacturability
Servicing
Disassembly
Goods
Services
Architecture
Graphic arts
Offices
Packages
Product Architecture



The process by which a customer need is
developed into a product design.
Solid architecture improves speed to
market, and reduces the cost of changing
the product once it is in production.
Product components are combined into
“chunks,” functional elements are assigned
to the chunks, and the chunks are
interrelated with each other.
Product Architecture Illustration
Figure 13.4
Product Architecture and Product
Platforms



Product architecture development is related
to establishing a product platform.
If chunks or modules can be replaced easily
within the product architecture, “derivative
products” can be made from the same basic
platform as technology, market tastes, or
manufacturing skills change.
Examples: 200 versions of the Sony
Walkman from four platforms.
Assessment Factors for an Industrial
Design
Figure 13.5
Prototype Development


Comprehensive Prototype: complete, fullyfunctioning, full-size product ready to be
examined by customers.
Focused Prototype: not fully functioning or
developed, but designed to examine a
limited number of performance attributes
or features.

Examples: a crude, working prototype of an electric
bicycle; a foam or wood bicycle to determine
customers’ reactions to the proposed shape and form.
Model of the Product Design Process
Figure 13.6
Improving the Interfaces in the Design
Process

Co-location

Digital co-location

Global teams

“Produceability” engineer

Upstream partnering with vendors
Computer-Aided Design (CAD)

Greatly accelerates the design step and allows
assessment of multiple possible designs without
building expensive prototypes.

Design for Manufacturability (DFM): search for
ways to minimize manufacturing costs.

Design for Assembly (DFA): search for ways to
ease assembly and manufacture.

Rational for DFM: A seemingly trivial detail in
design phase might have huge manufacturing
cost consequences later on!
Some of the Uses of CAD in Auto
Industry

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Determining fit of subassemblies: does
the radio/CD player protrude too far into
the engine area?
Facilitating “decking” of cars (attaching
the powertrain to the upper body): do all
the pieces fit together perfectly?
Crashworthiness: can we modify any
aspects of the car’s design to improve its
ability to protect the passengers in a
crash?
CHAPTER 14
DEVELOPMENT TEAM MANAGEMENT
McGraw-Hill/Irwin
Copyright ©2006 The McGraw-Hill Companies, Inc. All right reserved.
Some Terms in New Products
Organization


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Functional: People in business departments or
functional areas are involved, and product
development activity must mesh with their work.
Project: The product innovation activity requires
people who think first of the project.
Matrix: Two people are likely to be involved in any
piece of work: project manager and line function
head.
Options in New Products Organization
1.
2.
3.
4.
5.
Functional
Functional Matrix
Balanced Matrix
Project Matrix
Venture
These are listed in increasing projectization,
defined as the extent to which participants see
themselves as independent from the project or
committed to it.
Figure 14.1
Options in New Products Organization
1. Functional: work is done by the various departments,
very little project focus.


Usually a new products committee or product planning committee.
Does not lead to much innovation.
2. Functional Matrix: A specific team with people from
various departments; project still close to the current
business.


Team members think like functional specialists.
Departments call the shots.
3. Balanced Matrix: Both functional and project views are
critical.

May lead to indecision and delay.
Many firms are making it work successfully.

People may drive the project even against department’s best wishes.

4. Project Matrix: High projectization, team people are
project people first and functional people second.
5. Venture: Team members pulled out of department to
work full time on project.
Operating Characteristics of the Basic
Options
Figure 14.3
Characteristic
Functional <------------->Venture
Decision Power of Leader
Independence of Group
% of time spent on project by member
Importance of Project
Degree of risk of project to firm
Disruptiveness of project
Degree of uncertainty
Ability of team to violate
company policy
Independent funding
Low
Low
Low
Low
Low
Low
Low
High
High
High
High
High
High
High
Low
Low
High
High
Decision Rules for Choosing Among
the Options
Figure 14.4
Score each on a scale of 1 (low) to 5 (high):
1. How difficult is it to get new products in the firm?
2. How critical is it for the firm to have new products at this time?
3. How much risk to personnel is involved?
4. How important is speed of development?
5. Will the products be using new procedures in their
manufacturing?
6. In their marketing?
7. What will be the $ profit contribution from each new item?
8. How much training do our functional people need in the
markets represented by the new products we want?
Rating: Below 15: functional matrix will likely work.
15-30: a balanced matrix will probably work.
Over 30: You need a project matrix or even a venture!
Another View: Home Runs Vs. Singles
 Characteristics of “home run” projects:

Distance from regular business -- markets, technologies,
distribution system.



Conflicts with regular business -- success will threaten people in
the organization’s regular business (production, sales,
technical).
Major financial importance -- dollars, risk, or (especially) both.
Timing -- a project that may be a “single” in normal times -competition, market change, threatened acquisition, insecure
management team, shortage of new product projects.
 (Do the opposite conditions make for singles?)
 The more like a “home run” a project is, the
more suited to a more projectized
organizational structure.
Considerations when Selecting an
Organizational Option
Figure 14.5
High projectization encourages cross-functional integration.
 If state-of-the-art functional expertise is critical to project
success (e.g., in a scientific specialty such as fluid
dynamics), a functional organization might be better, as it
encourages the development of high-level technical
expertise.
 If individuals will be part of the project for only a short
time, it might make more efficient use of their time if they
were organized functionally. Industrial designers may be
involved in any given project for only a short time, so
different projects can simply draw on their expertise when
needed.
 If speed to market is critical, higher projectization is
preferred as project teams are usually able to coordinate
their activities and resolve conflicts more quickly and with
less bureaucracy. PC makers often use project teams, as
they are under severe time pressure.

Who Are the Team Members?

Core Team: manage functional clusters
(e.g., marketing, R&D, manufacturing)


Ad Hoc Group: support the core team
(e.g., packaging, legal, logistics)


Are active throughout the NPD process.
Are important at intervals during the NPD
process.
Extended Team Members: less critical
members (e.g., from other divisions)
Participants in the Product
Management Process

Project Manager





Supporter and spokesperson
May be the project manager
Enthusiastic but play within
the rules
Strategist




Senior executive who lends
encouragement and
endorsement to the
champion


Rationalist

The “show-me” person


Longer-range
Managerial -- often the
CEO
Spelled out the Product
Innovation Charter
Inventor
Sponsor


Leader, integrator, mediator,
judge
Translator, coordinator
Project Champion



Figure 14.6
Creative scientist
“Basement inventor” -may be a customer, ad
agency person, etc.
Idea source
Facilitator

Enhance team’s
productivity and output
Myths and Truths About Product
Champions
The Myths:





Champions are associated with
market successes.
Champions are excited about
the idea.
Champions get involved with
radical changes.
Champions arise from high (or
low) levels in the firm.
Champions are mostly from
marketing.
The Truths:




Figure 14.7
Champions get resources and
keep projects alive.
They are passionate,
persuasive, and risk-taking.
Champions work in firms with
or without formal new product
processes. Champions are
sensitive to company politics.
Champions back projects that
align with the firm’s innovation
strategy.
Guiding Principles in New Product Process
Implementation
Figure 14.8
Clarity of Goals and Objectives
Ownership
Leadership, at both senior and team levels
Integration with business processes
Flexibility
Issues in Team Management

Team compensation and motivation



Monetary vs. non-monetary rewards?
Process-based vs. outcome-based
rewards?
Closing the team down
Five Conflict Management Styles
Figure 14.10
Conflict Management Style
Confrontation
Definition
Collaboratively solve the problem
to reach a solution the parties are
committed to.
Give and Take
Reach a compromise solution that
the parties find acceptable.
Withdrawal
Avoid the issue, or the
disagreeable party.
Smoothing
Minimize the differences and find
a superficial solution.
Forcing
Impose a solution.
Example
Debate the issue, conduct
customer interviews, generate
possible solutions, find the one
most supported by customers.
Negotiate a set of features to
build into the product, to keep the
project moving ahead.
Team members with unpopular
positions don't think it's worth the
trouble, and back out of the
decision.
Accommodate to the team
members that are strongly
committed to certain product
features, for the sake of group
harmony.
Project manager steps in and
makes the decisions.
Source: Adapted from David H. Gobeli, Harold F. Koenig, and Iris Bechinger, "Managing Conflict in
Software Development Teams: A Multi-Level Analysis," Journal of Product Innovation Management, Vol.
15, No. 5, September 1998, pp. 423-435.
Some Insights on Global Innovation From Senior
Executives

Idea Generation:



Leverage global knowledge.
Source ideas from customers, employees, distributors,
etc.
Product Development:




Figure 14.11
Focus on incremental vs. home run breakthroughs.
Share development costs.
Use standardization to better manage global
operations.
Commercialization:


Early vs. late entrant decision.
Consider local support/local partner.
Managing Globally Dispersed Teams



Levels of language skills among team
members
Physical distance among team members
Cultural differences among team members
3-Minute Drill

Examine A Product or Service…



Possible Global Implications?
Strengths
Weaknesses
CHAPTER 15
PRODUCT USE TESTING
McGraw-Hill/Irwin
Copyright ©2006 The McGraw-Hill Companies, Inc. All right reserved.
What is Product Use Testing?
 Product use under normal operating
conditions.
 Some terms:


Alpha testing: done in-house.
Beta testing: done at the customer site.
 Typical goals of beta testing: to
determine if the product works and is
free of “bugs.”
The Role of Marketing During
Development




Marketing is involved from the beginning of
the new products process.
Advises the new product team on how the
product development fits in with firm’s
marketing capabilities and market needs.
Early involvement of marketing increases
product’s chances for success.
Think of marketing’s task as more
information coordination than information
gathering.
Marketing Ramp-Up

The “I think we’ve got it” phase.

Once this point is reached, the team’s attitude
toward the project changes.

Marketing’s role increases as marketing people
“rev up” their operations.





Plan field sales and service availability.
Begin work on packaging and branding.
Begin work with advertising agency reps.
etc.
Marketing “ramps up” for the product launch.
Arguments Against Product Use Testing






A fortune has already been spent on the
product.
Market research says the product is a
winner.
Competitor is working on a similar product.
May suggest lack of faith in product.
Customers have to learn how to use the
product.
Competitor may steal our idea and beat us
to the market.
One Argument For Product Use Testing:
Dry Idea Deodorant
Figure 15.1



Process was anything but linear.
Gillette discovered flaws in product design
through in-house “alpha testing” and beta
testing with users.
Gillette got some surprises in terms of
benefits sought -- “back to the drawing
board” near end of process! (Luckily,
quick fix was available.)
Arguments For Product Use Testing



Better to build off a technology base that
provides some insulation from competitive
copying than to worry about such copying.
Customer needs are complex sets -- use testing
would have identified problems with GTE
Airfone, Apple Newton, P&G Olestra.
Delivering a total quality product -- avoiding
"horror stories" of poor product quality before
product is marketed.
Knowledge Gained From Product Use
Testing
Figure 15.4




Pre-use sense reactions.
Early use experiences ("Does it
work?").
Major benefits results (beta tests).
Diagnostic information.
Common Pitfalls of Beta Testing
Figure 15.5





Beta test site firm has no internal capacity to test the performance of
the product at the required level and lacks the funding to hire an
outside firm to do the test.
Developer puts in a wishy-washy performance requirement like
"user-friendly" which is meaningless without a measurable
specification.
Testing is done too late in the new products process, which almost
ensures that development time will be extended and production
delays will occur. Doing testing in increments throughout the
process can avoid this pitfall.
Developers attempt to beta-test their own products. By definition
they are too close to the product to critically test it and find
problems.
Developers ignore early negative results, hoping that the product will
improve by itself during the new products process. All beta test
results, whether positive or negative, need to be honestly evaluated.
Gamma Testing

Beta testing may not meet all the product
developer’s requirements.




Does the new product meet customers’ needs?
Is it cost-effective for them?
Gamma testing involves thorough use and
evaluation of the new product by the end user.
It’s an ideal product use test -- but in many
cases firms go with beta testing.


Cost and time considerations
Keeping ahead of competitors
Some Key Testing Dimensions






User groups to contact (lab personnel, experts,
employees, stakeholders).
Mode of contact (mail vs. personal, individual vs.
group, point of use vs. central location).
Identity disclosure (avoid halo-image effects).
Degree of use explanation (no comment, some,
full explanation).
Degree of control over use (supervised vs.
unsupervised)
Singularity (monadic usually less sensitive than
paired or triangular comparison).
More Key Testing Dimensions






Duration of use (single use vs. extended periods).
Source of product (batch, pilot plant, final
production).
Product form (single product vs. variants).
Mode of recording reaction (like/dislike,
preference, descriptive information).
Source of norms (past experience, market
research firms).
Research service (internal vs. outside personnel).
Types of Product Use Tests
Figure 15.6
Type
Monadic
Products
The new product alone.
Paired comparison
The new product and another
one: the market leader, the leader
in a key segment, the "best."
The new product and two others,
or two variants of the new
product and one other.
Triangular
Instructions
"Try this new toothbrush, and tell
me how you like it."
"Try these, and tell me how you
like them and which you prefer."
Same as above.
Multiple-product techniques can use side-by-side or staggered (sequential monadic) product-use
approaches.
Data Formats: Like/Dislike
Figure 15.7
Data Formats:
Preference and Descriptive
Figure 15.7
(cont.)
Midterm II
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E-mailed last Week, Let me Know if You Need It…
How Will Your Group Do This?
Prototypes
Forecasting
Screening
Midterm II
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Midterm II Topics…
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A-T-A-R
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Awareness
Trial
Availability
Repeat
Concept Statement
Full Screen
Forecast
Product Protocol