Development Processes and Organizations.pptx

Development Processes and Organizations

1. Generic Development Process

2. Generic Development Process - Advantages Quality Assurance (Development process specifies the phases a project will pass through and the checkpoints along the way thus ensuring the quality of the resulting product.) Coordination (A well defined development process acts as a master plan which defines the role of each player on the development team.) Planning (Development Process contains natural milestones corresponding to the completion of each phase. Timing of each milestone fixes the schedule of the project). Management (Development process is a benchmark for assessing the performance of an on going development effort. Problem areas will be highlighted by comparing with the actual). Improvement (Careful documentation of an organization’s development process helps to identify opportunities for improvement).

3. Generic development process - Phases Concept development System level design Detail design Testing & refinement Production ramp-up

4. Concept Development Identifying customer needs Establishing target specifications Analysis of competitive products Concept generation Concept selection Refinement of specifications Economic analysis Project planning

5. Generic Product Development - Variants Technology-Push Products Platform Products Process-intensive Products Customized Products

6. Summary of Variants of generic development process   Generic (Market Pull) Technology- Push Platform Products Process- Intensive Customization Description The firm begins with a market opportunity, then finds an appropriate technology to meet customer needs. The firm begins with a new technology, then finds an Appropriate market. The firm assumes that the new product will be built around the same technological subsystem as an existing product. Characteristics of the product are highly Constrained by the production process. New products are slight variations of existing configurations Distinctions with respect to generic process Additional initial activity of matching technology and market. Concept development assumes a given technology. Concept development assumes a technology platform. Both process and product must be developed together from the very Beginning, or an Existing production process. must be specified from the beginning. Similarity of projects allows a highly structured development process. Development process is almost like a Production process Example Sporting goods, furniture, tools.  Teflon Sheet – for fabrics (water proof Rain coats , insulation for cables etc. Consumer electronics, computers, printers. Snack foods, cereal, chemicals, semiconductors. Switches, motors, batteries, containers.

7. Product Development Organizations A scheme by which individual designers and developers are linked together into groups. Examples of links are: Reporting relationship Financial arrangements Physical layout

8. Formal Linkages Reporting Relationships (supervisor & subordinate relationships shown formally on an organization chart) Financial Arrangements (Being part of the same financial entity, defined by a particular budget category) Physical layout (Sharing the same office, floor, building or site)

9. Type of Organizations Pure functional organization (Organizational links are primarily among those who perform similar functions) Pure project organization (Organizational links are primarily among those who work on the same project) Matrix organization (Hybrid of functional & project. Each individual is linked to others according to both the project they work on & their function) Heavy weight Project Matrix Organization (contains strong project links, with manager responsible for budget, performance evaluation etc) Light weight Project Matrix Organization (project manager is more of a coordinator & administrator. Updates schedules, arranges meetings, and facilitates coordination. Has no real authority or control in the project organization).

10. Organizational Structure - Selection Importance of cross functional integration Criticality of cutting edge functional expertise to business success Utilization of individuals (drawn from the functional groups) for the duration of the projects Importance of product development speed

11. New Product Transfer - Benefits Competitive advantage Responsiveness to customer needs Increase in profitability Increase in total quality Decreased cycle time for bringing new product to the market Company wide feeling of accomplishment Continuously improving company

12. Seven Keys to Successful Product Transfer Clear Objectives Cross functional team approach Top management support Customer supplier involvement Robust design and product Structured process methodology Economic justification

13. Successful Product Transfer Tools Clear Objectives Smart Objectives Group Consensus Cross functional team approach Selecting a cross functional team Existence of a Champion Productive meetings Robust design and product Fit for use/ Deliverables checklist Pareto’s law Value added flow analysis DFM, DFA, DFE, DFT, DFX Structured process methodology Stage Gate Methodology Process metrics Process audit Economic justification Cost estimating Economic measures of merit & Project priorities

14. Communication Tools Clear Objectives Cross functional team approach - Communications - Collaboration - Resources - Decisions - Commitment - Quality and accuracy Selecting a cross functional team Existence of a Champion Productive meetings

15. Performance Measures for Development Projects Performance Dimension Measures Impact on Competitiveness Time to market Frequency of new product introductions Time from initial concept to market introduction Number started and number completed Actual versus plan Percentage of sales coming from new products Responsiveness to customers / competitors Quality of design – close to market Frequency of projects – model life Productivity Engineering hours per project Cost of materials and tooling per project Actual versus plan Number of projects-freshness and breadth of line Frequency of projects – economics of development Quality Conformance – reliability in use Design – performance and customer satisfaction Yield –factory and field Reputation – customer loyalty Relative attractiveness to customers- market share Profitability – cost of ongoing services SOURCE: S.C. WHEELWRIGHT AND K.B. CLARK, REVOLUTIONIZING PRODUCT DEVELOPMENT (NEW YORK: THE FREE PRESS, 1992), PP6-8.