EUT 441E NPD2

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Global Manufacturing & Trade Co.

requires anIndustrial Designer

Multi-skilled

Fanatically µcustomer/user oriented¶

Deeply committed to creative design solutions

Knowledgeable about a wide range of manufacturing business

Comfortable in marketing, design and engineering disciplines

Knowledgeable about new design & visualization technologies

Send your resume to [email protected]

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NPD is interdisciplinary!

New Product Development is aninterdisciplinary activity requiring

contributions from nearly all the functionsof a firm, such as finance, sales, legalfunction.

However, three functions are central to NPD!

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3Main Functions of

NPD

Marketing

Manufacturing/Engineering

Design

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Marketing: involves in the interactions between

the firm and its customers. Such as:

identification of customer needs,

identification of product opportunities,

definition of market segments,

arrangements of communication,

set prices,

oversees the launch and the promotion of

the product.

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Manufacturing is responsible for designing

and operating the production system in

order to manufacture the product.

It also includes;

Purchasing

and Installation

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Design involves in the definition of the

function and physical form of the product to

meet the customer needs.

It includes engineering design (mechanical¶electrical and software interaction)

and I ndustrial Design (user interaction).

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NPD Team

Few products are developed by a single

person, but by a collection of individuals

called the project team.

Teams have members from the 3 main

functions + other functions, if necessary.

Every team has a leader, and consisted of a

core and extended sub-teams.

NPD teams operates through a process

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NPD

Process

A process is a sequence of steps that

transforms a set of inputs into a set of

outputs.

A NPD process is the sequence of steps or

activities that a firm employs to conceive,

design and commercialize a new product.

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Some facts about NP

D process Some firms define and follow a precise and

detailed NPD process.

Others may not even be able to describe their processes.

Every firm employs a process at least slightly

different from that of every other firm.

The same firm may follow different processes for

each of different types of development processes.

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A well-defined NPD process is

useful because it helps in Quality Assurance: it specifies the phases and

checkpoints along the way,

Coordination: It acts as a master plan which defines theroles of each players in the NPD team (when, with whom,what interaction)

Planning:It contains milestones corresponding to thecompletion of each phase. Timing of the schedule

Management: It is a benchmark for assessing the performance of ongoing NPD effort.

Improvement: documentation of NPD process identifyopportunities for improvement.

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5 P

hases of Generic NP

DP

rocess Concept Development

System-level Design

Detail Design

Testing and Refinement

P

roduction ramp-up.

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Planning

Product Development

Process

Concept

DevelopmentSystem-Level

Design

Detail

Design

Testing and

Refinement

Production

Ramp-Up

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Concept Development A Product Concept is a description of the form,

function, and features of a product, accompanied

by a set of specifications, an analysis of competitive products, and an economic

justification of the project.

In the Concept Development phase, needs of

target market are identified, alternative productconcepts are generated and evaluated, and a single

concept is selected for further development.

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System-Level Design This phase includes the definition of the

product into subsystems and components.

The output is a geometric µlayout¶ of the

product, a functional specifications of each

of the product¶s subsystems.

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Detail Design This phase includes the complete

specifications of geometry, materials and

tolerances of all of the unique parts in the

product and the identification of all of the

standard parts to be purchased from

suppliers. The output is the control documentation for

the product.

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Testing and Refinement The phases involves the construction and

evaluation of multiple pre-production

versions of the product.

Alpha Prototypes

Beta Prototypes

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Production Ramp-up

In this phase, the product is made using the

intended production system.

µPilot Production¶

The purpose is to train work force and work

out any remaining problems in the

production process.

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Variants of

NPD

Process

Generic (market-pull)

Technology Push

Platform Products

Process-Intensive

Customization

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Generic (MarketP

ull)

NPD starts with a market opportunity and,

seeks out whatever technologies are

required to satisfy the market need.

Thus, the market pulls the NPD decision!

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Technology-P

ush NPD starts with a new technology, and

Looks for an appropriate market in which to

apply this technology.

That is, technology pushes NPD!

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Platform

Products

A platform-product is developed around a pre-

existing technological subsystem (a technology

platform). Similar to technology-push

But a technology platform has already proved its

usefulness in the market.

Therefore, it¶s more simple and cheaper to

develop new products based on existing platforms.

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Process-Intensive

For process-intensive products, the production

process places strict constraints on the properties

of the product, so that the product design cannot be separated, even at the concept phase, from the

production process design.

First a production method is decided upon, then

product design is limited by the capabilities of this process.

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CustomizedP

roducts When a customers requests a new product,

the firm executes a structured design and

development process to create the productto meet the customers¶ needs.

Highly structured and detailed NPD process

with a series of well defined stages.

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NPD Organizations

In addition to an effective NPD process,

successful firms also organize their NPD

staffs effectively.

An NPD organization is the scheme by

which individual designers, engineers and

marketers are linked together into groups.

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Links in NPD Organizations

These links among individuals in NPD process may be

formal or informal, but mostly include:

R eporting R elationships: The classic notion of supervisor

and subordinat e. Formal links shown on organizational

charts.

Financial Arrangements: Being part of the same

financial entity, such as defined by a particular budget

category or profit-and-loss statement.

Physical Layout: Links created when individuals sharethe same office, floor, building or site. Informal and

spontaneous.

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Organizational Links Individuals in NPD organizations can be classified

by

Function ± area of responsibility involving specializededucation, training, or experience. Main functions in NPD

± marketing, design and manufacturing.

Project ± the set of activities in the development process

for a particular product and includes, for example,identifying customer needs, generating product concepts,

etc.

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NPD Organizations

Functional Organization: the organizational

links are among those who perform similar

functions.

Project Organization: the organizational

links are among those who work on thesame project.

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Functional Organization Individuals share similar training and experience,

They all report to the same manager who would

evaluate tem and set their salaries,

The group has its own budget,

Generally, they share the same physical location.

They would be involved in many different projects, but with no strong organizational links to

other member of each project team.

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Functional Organization

design 3

design 2

design 1

design manager

marketing 2

marketing 1

marketing manager

manufacturing 2

manufacturing 1

manufacturing manager

General Manager

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P r o j e c t O r g a n i z a t i o n

M a n u f a c t u r i n g

D e s i g n

M a r k e t i n g

P r o j e c t M a n a g e r I

M a r k e t i n g

D e s i g n

M a n u f a c t u r i n g

F i n a n c e

P r o j e c t M a n a g e r 2

D e s i g n

M a r k e t i n g

L o g i s t i c s

P r o j e c t M a n a g e r 3

G e n e r a l M a n a g e r

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Two variants in Matrix Organization

H eavyweight Project Organization

Contains strong project links

Manager has complete budget authority, S/he is heavily involved in performance evaluation of the

team members and,

takes most of the major resource allocation decisions.

Although each individual also belongs to a functionalorganization, functional managers have relatively little

authority and control.

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GeneralManager

Heavyweight ProjectManagers

Functional Managers

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Two variants in Matrix Organization

Lightweight Project Organization

Contains weaker project links

Project manager is more of a coordinator and

administrator. S/he is involved in updating schedules, arranging

meetings, and facilatating coortdination.

But has no real authority and contral in project

organization.

Functional managers are responsible for budgets,hiring and firing and performance evaluation.

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General

Manager

Lightweight Project Managers

Functional Managers

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Choosing an NPD Organizational Structure

Questions to ask:

How important is cross-functional integration?

How Critical is cutting-edge functional expertise

to business success?

Can individuals from each function be utilized for

most of the duration of a project?

How important is NPD speed?

EUT 441E NPD2

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