New Product Development Lecture13

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    New ProductNew Product

    DevelopmentDevelopment

    Hammad AshrafHammad Ashraf

    Crawford, New Products Management, 2003Crawford, New Products Management, 2003

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    DevelopmentDevelopment

    Development stage; role ofDevelopment stage; role ofmanagement.management.

    D

    evelopment team management.D

    evelopment team management.Structuring the development team.Structuring the development team.

    Design of the new product.Design of the new product.

    Managerial role in productManagerial role in productarchitecture.architecture.

    Role of computer aided design/Role of computer aided design/manufacturing in development stage.manufacturing in development stage.

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    New Product Development ProcessNew Product Development Process

    Marketing is involved from theMarketing is involved from thebeginning of the process.beginning of the process.

    Role of information coordination:Role of information coordination:OpportunityOpportunity identification & selection.identification & selection.

    Concept generation.Concept generation.

    Concept/project evaluation.Concept/project evaluation.

    Development.Development.Launch.Launch.

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    Role of Management inRole of Management in

    Development StageDevelopment StageTop managements support in newTop managements support in new

    product development.product development.

    Strategic decisions, key checkpoints toStrategic decisions, key checkpoints towatch, managing ongoing operations.watch, managing ongoing operations.

    Establishing a culture ofEstablishing a culture of

    collaboration.collaboration.The team assignment & ownership.The team assignment & ownership.

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    Development Team ManagementDevelopment Team Management

    One of the crucial decision makingOne of the crucial decision makingunits:units:Baseball teams: like assembly lineBaseball teams: like assembly line

    teams. Generally work as individuals,teams. Generally work as individuals,work is normally in series.work is normally in series.

    Football teams: players with fixedFootball teams: players with fixedpositions. Work is parallel. Japanese carpositions. Work is parallel. Japanese car

    teams.teams.TennisTennis--doubles: partners are dedicated.doubles: partners are dedicated.

    Players work with and support eachPlayers work with and support eachother. Some call it volleyother. Some call it volley--ball teams.ball teams.

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    Development Team ManagementDevelopment Team Management

    SomeSome believe that volleyball teams arebelieve that volleyball teams arebest, more players, skill developmentbest, more players, skill developmentat different levels..at different levels..

    NPD teams are different fromNPD teams are different from the otherthe otherteams,teams, shortage of experiencedshortage of experiencedworkers.workers.

    Performance appraisal is tough as onlyPerformance appraisal is tough as onlythe teams performance matters.the teams performance matters.

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    Structuring the TeamStructuring the Team

    One of the strategies to structure theOne of the strategies to structure thedifficult task of developing NPD teams:difficult task of developing NPD teams:

    Functional.Functional.

    Functional matrix.Functional matrix.

    Balanced matrix.Balanced matrix.

    Project matrix.Project matrix.

    Venture.Venture.

    According to the commitment of staffAccording to the commitment of staff

    to new product project (loyalty to theto new product project (loyalty to theproject).project).

    Organizations use these according toOrganizations use these according totheir own requirements and existingtheir own requirements and existing

    structures.structures.

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    Structuring the TeamStructuring the Team

    Functional:Functional:

    Work done by departments with veryWork done by departments with verylittle project focus.little project focus.

    Normally results in new productNormally results in new productcommittee.committee.

    Functional groups working together butFunctional groups working together butnot as a team (functional head.projectnot as a team (functional head.project

    manager).manager).

    Low riskfocus on present line ofLow riskfocus on present line ofproducts onproducts on--going concerngoing concern..(..(improvements).improvements).

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    Structuring the TeamStructuring the Team

    Functional matrix:Functional matrix:

    Specific team with people from variousSpecific team with people from various

    departments, but the project is stilldepartments, but the project is stillclose to the running business.close to the running business.

    Requires more focus than just productRequires more focus than just productimprovements.improvements.

    The departments call the shots.The departments call the shots.

    Team members think as functionalTeam members think as functionalspecialists.specialists.

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    Structuring the TeamStructuring the Team

    Balanced matrix:Balanced matrix:

    Situations where both functional andSituations where both functional andproject views are critical.project views are critical.

    Using 50/50 thinking results in delaysUsing 50/50 thinking results in delaysand indecision.and indecision.

    HeldHeld in disfavor of the new products.in disfavor of the new products.

    TexasTexas Instruments used it and laterInstruments used it and laterdiscarded it for the same reason.discarded it for the same reason.

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    Structuring the TeamStructuring the Team

    Project matrix:Project matrix:Projectization is high.Projectization is high.

    Team people are ranked first and thenTeam people are ranked first and thenfunctional people.functional people.

    More decision making powers in theMore decision making powers in thehand of NPD team.hand of NPD team.

    Departments heads complaint that theirDepartments heads complaint that theirstaff is driving the project against thestaff is driving the project against thedepartments interests.departments interests.

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    Structuring the TeamStructuring the Team

    Venture:Venture:Team members are pulled out of theTeam members are pulled out of the

    departments to work full time on NPD.departments to work full time on NPD.

    Full autonomy and no influence ofFull autonomy and no influence ofdepartments on NPD process.departments on NPD process.

    Venture may well work in sameVenture may well work in sameorganization or get a new office.organization or get a new office.

    Ford sent its new Mustang team to aFord sent its new Mustang team to aconverted furniture warehouse.converted furniture warehouse.

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    Design of the New ProductDesign of the New Product

    the synthesis of technology andthe synthesis of technology andhuman needs into manufacturinghuman needs into manufacturingproductsproducts.. (Crawford, 2003)(Crawford, 2003)

    One of the most important aspects ofOne of the most important aspects ofNPD from managerial aspect.NPD from managerial aspect.

    Designers take rigorous training toDesigners take rigorous training tolearn how to design products thatlearn how to design products thatfunction well.function well.

    A tool for boosting competitiveness.A tool for boosting competitiveness.

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    Design of the New ProductDesign of the New Product

    Contribution of design to NPD goals:Contribution of design to NPD goals:Design for speed to market.Design for speed to market.

    Design for ease of manufacture.Design for ease of manufacture.

    Design for differentiation.Design for differentiation.Design to meet customer needs.Design to meet customer needs.

    Design to build or support corporateDesign to build or support corporateidentity.identity.

    Design for the environmentDesign for the environment..

    Article for discussion:Article for discussion:

    Using Product Designs Strategically toUsing Product Designs Strategically to

    CreateD

    eeper Consumer Connections.CreateD

    eeper Consumer Connections.

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    Product ArchitectureProduct Architecture

    Product consists of components:Product consists of components:CD player: chassis, motors, diskCD player: chassis, motors, disk

    drives, speakers, combined indrives, speakers, combined inchunks (sound system).chunks (sound system).

    Product also consists of functionalProduct also consists of functionalelements:elements:CD player: reading disks, producingCD player: reading disks, producing

    sounds, adjusting sound quality.sounds, adjusting sound quality.Product architecture is how theseProduct architecture is how these

    functional elements are assignedfunctional elements are assignedto chunks and how the chunks areto chunks and how the chunks are

    interrelated.interrelated.

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    Product ArchitectureProduct Architecture

    Stepwise process:Stepwise process:

    Create the product schematic:Create the product schematic:

    Shows the components and functionalShows the components and functionalelements of the product and how theyelements of the product and how theyare interconnected.are interconnected.

    Cluster the schematic elements:Cluster the schematic elements:

    Chunks or modules are defined.Chunks or modules are defined.Interaction between these chunks isInteraction between these chunks isplanned.planned.

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    Product ArchitectureProduct Architecture

    Create Geometric Layout:Create Geometric Layout:

    Using simulations, product is arrangedUsing simulations, product is arrangedin several configurations to find bestin several configurations to find best

    solution. Should the disk load in thesolution. Should the disk load in thefront or back?front or back?

    Check Interaction between Chunks:Check Interaction between Chunks:

    understanding of what happens at theunderstanding of what happens at theinterfaces between chunks. Sound flowsinterfaces between chunks. Sound flowsas a digital signal to disk duringas a digital signal to disk duringrecording!recording!

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    Computer Aided Design/Computer Aided Design/

    Manufacturing (CAD/

    CAM)Manufacturing (

    CAD/

    CAM)

    Identifying and solving design andIdentifying and solving design andmanufacturing problems in earliermanufacturing problems in earlier

    stages of the NPD process.stages of the NPD process.Design of simple products to BoeingsDesign of simple products to Boeings777.777.

    Virtual crashing by BMW led to 30%Virtual crashing by BMW led to 30%improvement in design.improvement in design.

    Digital preassembly by Chrysler.Digital preassembly by Chrysler.

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    The End.The End.