chapter 2 pdd

1. DEPARTMENT OF
MANUFACTURING AND
MATERIALS ENGINEERING
MME 4116
PRODUCT DESIGN AND
DEVELOPMENT
BY:
DR MOHD RADZI BIN HAJI CHE DAUD

2. CHAPTER 2
PRODUCT DEVELOPMENT
PROCESS

3. 2.1 Introduction
What is the product development
process?
3
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

4. 2.2 Product Development Process
in Stage-Gate Format
4
• A generally accepted model of the product
development process:
 An important reason for using the stage-gate process is to
“quickly get it right”.
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

5. Phases of PDP (0 to 2)
5
• Phase 0:
The planning that should be done before the
approval of the product development project.
• Phase 1:
Concept development considers the different ways
the product and each subsystem can be designed.
• Phase 2:
System-Level Design is where the functions of the
product are examined, leading to the division of the
product into various subsystems.
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

6. Phases of PDP (3 to 5)
6
• Phase 3:
Detail Design is the phase where the design is
brought to the state of a complete engineering
description of a tested and producible product.
• Phase 4:
Testing and Refinement is concerned with making
and testing many preproduction versions of the product.
• Phase 5:
Production Ramp-Up is when the manufacturing
operations begins to make and assembly the product
using the intended production system.
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

7. Factors for Success
7
𝑃𝑟𝑜𝑓𝑖𝑡 = 𝑃𝑟𝑜𝑑𝑢𝑐𝑡 𝑃𝑟𝑖𝑐𝑒 − 𝑃𝑟𝑜𝑑𝑢𝑐𝑡 𝐶𝑜𝑠𝑡 (2.1)
______________________________________________________
• Four Key Factors of Success:
– 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.
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

8. Sales & Revenue versus Time
8
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©2013. The McGraw-Hill Companies

9. Cost & Price versus Time
9
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©2013. The McGraw-Hill Companies

10. Static Versus Dynamic Products
10
• Static Product: The changes in their design take place
over long time periods through incremental changes
occurring at the subsystem and component levels.
– Automobiles
– Appliances: refrigerators, dishwashers
• Dynamic Products: Customers are willing to, and may
even demand, change.
– Wireless mobile phones
– Digital video recorders and players
– Software
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

11. Variations on the Generic PDP
11
• Platform Product is built around a preexisting
technological subsystem.
– Apple Macintosh operating system
– Black & Decker doubly insulated universal motor
• Customized Products are those in which variations
in configuration and content are created in
response to a specific order of a customer.
• In a highly competitive world marketplace, mass
customization appears to be one of the future
trends.
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

12. 2.3 Product And Process Cycles
What are the stages of product and
process cycles?
12
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13. Product Life Cycle
13
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©2013. The McGraw-Hill Companies

14. Product Development Cycle
14
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©2013. The McGraw-Hill Companies

15. Technology Development
15
Transferring Technology Development CycleSimplified Technology Development Cycle
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

16. 2.4 Organization For Design and
Product Development
How can an organization affect the
design and product development?
16
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

17. Organization’s Effect on Design &
Product Development
17
• The organization of a business enterprise can
have a mjor influence on how effectively design
and product development are carried out.
Fundamental ways for organizing a business
FUNCTION PROJECTS
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©2013. The McGraw-Hill Companies

18. Engineering Functions
18
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

19. Links Between Individuals
19
• Reporting Relationships:
A subordinate is concerned about who his or her
supervisor is, since the supervisor influences evaluations,
salary increases, promotions, and work assignments.
• Financial Arrangements:
Another type of link is budgetary. The source of funds to
advance the project, and who controls these funds, is a vital
consideration.
• Physical Arrangements:
Studies have shown that communication between individuals is
enhanced if their offices are within 50 feet of each other!
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

20. Example of a functional organization
20
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©2013. The McGraw-Hill Companies

21. Simplified Project Organization
21
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©2013. The McGraw-Hill Companies

22. Hybrid Organization(matrix
Organization)
22
Functional Organization Project Organization
Hybrid Organization
• In the lightweight project organization the
functional links are stronger than the project links.
• In the heavyweight matrix organization the project
manager has complete budgetary authority, makes
most of the resource allocation decisions, and plays
a strong role in evaluating personnel.
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

23. Lightweight & Heavy Weight
Project Organizations
23
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©2013. The McGraw-Hill Companies

24. 2.5 Markets and Marketing
How can we describe the market and
marketing for engineered products?
24
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

25. Markets
25
• Marketing is concerned with the interaction between the
corporation and the customer.
• We need to differentiate between the customer and the
user of the product.
• Market is an economic construct to identify those
persons or organizations that have an interest in
purchasing or selling a particular product, and to create
an arena for their transactions.
– Stock Market: Prototypical Market
• Strong brand names evolved as a way of building
customer recognition and loyalty.
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

26. Market Segmentation
26
• Cooper suggests that four broad categories of variables are:
– State of Being:
 Sociological factors: age, gender, income
 For industrial products: company size, industry classification,
 Location: urban, suburban, rural
– State of Mind:
 Attitudes
 Values
 Life styles
– Product Usage:
 Heavy User
 Loyalty
– Benefit Segmentation
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

27. Marketing Department
27
• Function:
– The marketing department in a company creates and
manages the company’s relationship with its customers.
• Expected Tasks:
– Preliminary marketing assessment
– Quick scoping of the potential sales
– Competition
– Market share at the early stages of the product planning
– Detailed market study
– Assisting with the introduction of the product into the
marketplace
– Providing product support system
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

28. Marketing Plan
28
• Identifying the target market
• Product strategy
• Expressing product benefits
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

29. Marketing Plan(2)
29
• Marketing plan should contain:
 Evaluation of market segments
 Identification of competitive products
 Identification of early product adopters
 Clear understanding of benefits of product to customers
 Estimation of the market size in terms of dollars and units
sold
 Determination of the breadth of the product line
 Estimation of product life
 Determination of the product volume/price relationships
 Complete financial plan including time to market
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

30. 2.6 Technological Innovation
How does technological innovation
happen?
30
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

31. Invention, Innovation, and
Diffusion
31
• Invention:
– The creative act whereby an idea is conceived,
articulated, and recorded.
• Innovation:
– The process by which an invention or idea is brought
into successful practice and is utilized by the
economy.
• Diffusion:
– The successive and widespread implementation and
adoption of successful innovations.
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

32. Technologically Inspired Product
32
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

33. Business Strategies Related to
Innovation and Product Development
33
• Star businesses:
– High sales growth potential, high market share
potential
• Wildcat businesses:
– High sales growth potential, low market share
• Cash-cow businesses:
– Low growth potential, high market share
• Dog businesses:
– Low growth potential, low market share
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

34. Characteristics of Innovative
People
34
• Idea generator:
– The creative individual
• Entrepreneur:
– The person who “carries the ball” and takes the risks
• Gatekeepers:
– People who provide technical communication from
outsife to inside the product development
organization.
• Program manager:
– The person who manages without inhibiting
creativity
• Sponsor:
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

35. Types of Technology Innovation
35
• Need-driven innovation:
– where the development team seeks to fill an
identified gap in performance or product cost
(technology pull)
• Radical innovation:
– which leads to widespread change and a whole new
technology, and arises from basic research
(technology push)
Dieter/Schmidt, Engineering Design 5e.
©2013. The McGraw-Hill Companies

36. THANK YOU