New Product Development

1、New Product Development Some products What is product development all about? “Product development is the set of activities beginning with the perception of a market opportunity and ending in the production, sale, and delivery of the product” Ulrich Select several product concepts for further develop

2、ment and testing Example Needs of target market: The nailer inserts nails in rapid succession. The nailer is lightweight. The nailer has no noticeable nailing delay after starting tool. Product concepts: Rotary motor with spring and single impact Rotary motor with spring and multiple impacts Linear

3、motor with a moving mass and single impact Product Development Process Phase 0Phase 1Phase 2Phase 3Phase 4Phase 5 Planning Concept Development System-level Design Detail DesignTesting and Refinement Production Ramp-Up Ulrich and Eppinger 2004Define product architecture Decompose product into subsyst

4、ems and components Define final assembly scheme Product Development Process Phase 0Phase 1Phase 2Phase 3Phase 4Phase 5 Planning Concept Development System-level Design Detail DesignTesting and Refinement Production Ramp-Up Ulrich and Eppinger 2004Complete specification of geometry, materials and tol

5、erances of all parts List of standard parts to be purchased Detailed drawings Process plans for fabrication and assembly Product Development Process Phase 0Phase 1Phase 2Phase 3Phase 4Phase 5 Planning Concept Development System-level Design Detail DesignTesting and Refinement Production Ramp-Up Buil

6、ding of alpha- and beta- prototypes alpha: same material and geometry - does it work? - does it satisfy customer needs? beta: parts supplied by production process - tested internally and by customers - tested for performance and reliability Product Development Process Phase 0Phase 1Phase 2Phase 3Pha

7、se 4Phase 5 Planning Concept Development System-level Design Detail DesignTesting and Refinement Production Ramp-Up Small volume production to train workforce and work out any remaining problems. Finally LAUNCH! Variations to Product Development Process Market pull products Market opportunity to tec

8、hnology, e.g. sporting goods, furniture Uses generic process Technology push products Technology to market opportunity, e.g. teflon, gore-tex Concept development takes technology as given Platform products Built around existing platform, e.g. consumer electronics, printers Concept development assume

9、s proven technology platform Process intensive products Product constrained by production process, e.g. semiconductors, chemicals Product and process developed from start Quick build products Rapid modeling and prototyping, e.g. software, cell phones Many design-build-test cycles Complex systems Sys

10、tem includes many subsystems and components, e.g. airplanes, jet engines System and subsystems developed by many teams working in parallel Cost and Duration of NPD Projects Stanley Tools Jobmaster Screwdriver Rollerblade In- Line Skate HP DeskJet Printer VW New Beetle Automobile Boeing 777 Airplane

11、Annual Production volume Sales lifetime Sales price Number of unique parts Development time Internal development team (peak size) External development team (peak size) Development cost Cost and Duration of NPD Projects Stanley Tools Jobmaster Screwdriver Rollerblade In- Line Skate HP DeskJet Printer

12、 VW New Beetle Automobile Boeing 777 Airplane Annual Production volume100,000/year100,000/year4M/year100,000/year50/year Sales lifetime40 years3 years2 years6 years30 years Sales price$3$200$300$17000$130M Number of unique parts33520010,000130,000 Development time1 year2 years1.5 years3.5 years4.5 y

13、ears Internal development team (peak size) 3 people5 people100 people800 people6800 people External development team (peak size) 3 people10 people75 people800 people10,000 people Development cost$150,000$750,000$50M$400M$3B Cost and Duration of NPD Projects Plot development cost against the other ro

14、ws and see if there is any correlation. Why or why not? Cost and Duration of NPD Projects What drives product development costs? # parts development cost What drives product development costs? Internal team size x duration development cost What drives product development costs? Total team size x dur

15、ation development cost Design Changes over Time What drives product development costs? Quality Function Deployment A method to translate customer requirements into engineering specifications Aims to get design, engineering and production people involved early on in the process Quality Function Deplo

16、yment Quality Function Deployment (QFD) Quality Function Deployment (QFD) Quality Function Deployment (QFD) Quality Function Deployment (QFD) Quality Function Deployment (QFD) Marketing Mediates interactions between firm and customers Identifies product opportunities Defines market segments Identifi

17、es customer needs Oversees launch and promotion of product Design Lead role in defining physical form of product to best meet customer needs Includes engineering design and industrial design Manufacturing and supply chain Designs and operates the supply chain in order to produce the product from pro

18、curement to distribution Who is Involved in Product Development? Organizational challenges How should the product development team operate? Project-Based Organization MarketingEngineeringOperations Project Manager Project Manager Project Managers have more power “Heavy Weight” Project Manager Projec

19、t 1 Project 2 Functional-Based Organization Marketing managerEngineering Functional managers have more power Operations manager Project 1 Project 2 Project 3 Project 1 Project 2 Project 1 Project 2 Project 3 Project 4 Matrix Organization Marketing managerR&D manager Project 1 Project 2 Engineering Project ManagerProject Manager Pros and cons FunctionalMatrixProject StrengthFosters specialization and expertise Provides integration and speed benefits Optimal resource allocation, quick trade-off resolution WeaknessCoordination among groups can be slow Requires more manager