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Rose-Hulman ME 470 - Development Processes and Organizations

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Chapter 2: Development Processes and OrganizationsPowerPoint PresentationSlide 4Slide 5Slide 6Slide 7Slide 8Slide 9Platform ProductsRiskFrom the 2011 SEC 10K filingSlide 14Slide 15Xerox Lakes Project ExampleThe Product Planning ProcessA Product PlanMarket SegmentationMarket Segment MapTechnology S-CurvesTechnology RoadmapSegmentation ExamplesSlide 24Chapter 2: Development Processes and OrganizationsProduct Design and DevelopmentFourth Editionby Karl T. Ulrich and Steven D. EppingerChapter 1: IntroductionChapter 3: Product PlanningFunctions – Could be Design, Manufacturing, Marketing, etc.This represents cross-funtional teamsProcess Type Description ExamplesMarket Pull Team begins with market opportunity and selects technology to meet customer needs.Fuel efficient carsTechnology Push Team begins with a new technology, then finds an appropriate market.VelcroPlatform Products The team assumes that the new product will be built around an established technological subsystem.Many new cars share the same chassis (Civic and CRV) (Nissan Ultima and Maxima –just laser blank different wheel base)Process-Intensive ProductsCharacteristics of the product are highly constrained by the production process.CokeCustomized ProductsNew products are slight variations of existing configurations.Boiling water reactor pressure vesselsHigh-Risk Products Technical or market uncertainties create high risks of failure.Nuclear power plants, drug delivery devicesQuick-Build Products Rapid modeling and prototyping enables many design-build-test cycles.SoftwareComplex Systems System must be decomposed into several subsystems and many components.Space shuttleMost designs are one of these two, with Market pull as the primary.More than one of these may apply.http://en.wikipedia.org/wiki/Technology_push http://cleantechnica.com/files/2009/02/ls.jpg Aerogel is a technology looking for commercial applicationshttps://www.besttvbuys.com/loudandclear/index.asp?did=978&refcode=lnc4 Aging Baby Boomers have created a number of marketing opportunitieshttp://www.pacific-bearing.com/default.aspx Customized ProductsWhile Pacific Bearing has a large number of stock choices, they also sell unique combinations and modifications of existing designsPlatform Productshttp://www.unplggd.com/uimages/unplggd/james_dyson_sz.jpg Dyson Vacuum cleaners are all built around the same “Cyclone”RiskCompanies face many forms of risk which they need to report in an SEC filing.We will look at the issues raised by Medtronic (a medical device company) in their SEC filing.Name the risks you expect Medtronic to list.From the 2011 SEC 10K filing•Market competition, Price Risk•Supply Chain•Government Regulation•Reimbursement Rates•Quality Issues•Intellectual Property•Product Liability•Obamacare Tax•R&D Pipeline•Customer Relations•Credit Markets•Clinical Trials•Business Acquisitions•Global Business•Tax Law (International)PlanningPlanningProduct Development ProcessConceptDevelopmentConceptDevelopmentSystem-LevelDesignSystem-LevelDesignDetailDesignDetailDesignTesting andRefinementTesting andRefinementProductionRamp-UpProductionRamp-UpFour Phases of Product DevelopmentThe product planning phase precedes the product development process.GM sees Energy Crisis, needs better gas mileageFor transmissions, more speeds = better mileage3 speed to 4 speedorContinuously variable(GM Tech Center)e.g. Find clutch area needed for full throttle upshift with current engine.(Division Level)ZF’s 8-Speed Automatic Transmission - Tech Dept.BY K.C. COLWELL December 2009Xerox Lakes Project ExampleXerox Document Centre 265The Product Planning ProcessEvaluate and Prioritize Projects Allocate Resources andPlan TimingPortfolioof ProjectsMultiple ProjectsComplete Pre-Project PlanningProduct PlanMission StatementsProduct Development ProcessIdentify OpportunitiesA Product Plan1996 1997 1998 1999 2000HodakaLakesH-NetL-NetAstro595 6010 392 393New PlatformsDerivativesImprovementsFundamentally NewLegendProjectProduct ReleaseMarket Segmentation•A market segment is a group of actual or potential customers who can be expected to respond in a similar way to a product or service offer. They want the same types of benefits or solutions to problems from a product or service, or they respond in a similar way to a company’s promotional programs.•Successful segmentation:–Heterogeneity of wants and needs. Customers will actively seek and pay a premium for products and services that better meet their wants/needs.–Customers do cluster into specific groups whose members’ needs are more similar to those of other customers in that groups than they are to the needs of customers in other groups. (Tennis shoes)–The costs of serving a customer in a segment must be no more than they are willing to pay.When successful segmentation conditions exist, a firm that does not segment the market presents its competitors with an opportunity to enter the market.Market Segment Map1998 19991997 2000DepartmentWorkgroupPersonal40 ppm network $20k30 ppm $10k20 ppm $8k40 ppm $16k65 ppm $23k55 ppm $20k25 ppm $9k30 ppm $10k25 ppm $10k35 ppm $15k20 ppm $7k40 ppm $20k60 ppm network $35kLegendXerox productcompetitor productpotential competitor65 ppm network $31kYear ofReleaseHodaka ProjectLakes ProjectLakes ExtensionsHodaka ProjectLakes ProjectLakes ExtensionsMarket SegmentTechnology S-CurvesLight-LensTechnologyDigitalTechnologyTimeCopier PerformanceTechnology RoadmapFunctional ElementsPhoto- receptorScanner LayoutToner TypeOutput ModesUser InterfaceCylindrical Drum2D CCD Array w/Optical Reduc.Keypad3-Pitch Belt PhotoreceptorFull-Width, Linear Array without Optical ReductionTouch Screen, Remote PCColor: Paper, Fax, Scan, Local Network, InternetDocument Centre 220, 230Document Centre 240, 255, 265Document Centre 2XXHodaka ProjectLakes ProjectLakes ExtensionsDocument Centre 3XXNext PlatformTechnologiesn-Pitch Belt PhotoreceptorHigh TemperatureLow Melting PointLow Melting Point, Low EmissionTouch ScreenImage ProcessingAutomatic Image QualityDiagnosticsOn-Board DiagnosticsRemote-Dialup DiagnosticsRemote RepairTime1200 dpi600/1200 dpi 1800 dpi600 dpiMonochrome: Paper, Fax, Scan, Local Network, InternetSegmentation ExamplesCummins Peerless PumpClass 3-4 Truck IndustrialClass 5-7 Truck AgriculturalSchool Bus MunicipalRV Chassis ChemicalConstruction EquipmentBuilding Trades/New ConstructionDell computers http://www.dell.com/ Apple Computers


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