Integrated Product Development

Concept Selection n Teaching Objectives

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TMI

Understand the overall design process Understand how to go about concept selection

Twin Streams
product evolution original concept concept testing protocol product testing

TMI market plan evolution basic strategy

prototype

tactical plans

pilot plant

market testing

complete final plan revised final plan

manufactured product

full launch

Objective
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maximize n profit = p min(D,Q) - cQ - F n given product feasibility n You choose or control p, Q, c, F n Market chooses D n You cannot build every possible product to evaluate

Controlling Your Outcome

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Select your product attributes n Design to produce attributes n Execute prototype manufacture n Design mass production process = c , F n Understand your place in the market = p,Q

Descriptive Modeling
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Typical OR/OM modeling is prescriptive: prescriptive: model returns optimal controls n (p,Q,c,F) is a complex relationship n Build model so that given p,Q,c,F, p,Q,c,F, can predict n Discover surface through experimentation = descriptive modeling

Beginning
product class (aux. cup holder)

TMI

focus groups

potential attributes

Attributes to D
potential attributes conjoint study

TMI

estimate of D as function of attribute concept

Choosing Q and p
p,c,F

TMI

newsvendor model

Pure Attribute Model

product class focus group attribute cost est. conjoint

TMI

newsvendor profit What are advantages and disadvantages?

Evaluation
Advantages: contained, repeatable n Disadvantages:
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Lacks real customer feedback on concepts Lacks engineering detail No measure of nonattribute drivers fashion No interactions modeled

Evidence
Product Bike light Travel mugs Adj- R 2 .31 .61

TMI

Cost Estimation
Product Juicers Bike light Travel mugs Adj- R 2 .58 .90 .28

TMI

Correct Sign 5/6 2/5 3/4

Multiple Concepts
Carry multiple concepts through early development

TMI

Controlled Convergence
original set time eliminate expand eliminate expand eliminate expand select concept

TMI

Cumulative Expenditures
100 90 80 70 60 50 40 30 20 10 0 0 20 40 60

TMI

% of concepts kept

cumulative cost

80

100

% of development time

Reality Check - Prototypes

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TMI

Engineering feasibility - BDI will let you do a lot that the machining faculty wont n Repeat focus groups with physical prototypes of various concepts n Repeat conjoint study with only attributes price and part-worth of various products (include commercial)

Improved Model

TMI

Move from pure attribute to engineering analysis of various concepts

Attributes to Specs
high quality

TMI

attributes QFD
constant body panel gaps

engineering specs

Product Archeology
specs

TMI

BDI

c,F

Descriptive Model
product class focus group QFD prototype focus conjoint newsvendor profit

TMI

BDI

Potholes
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TMI

Bias the evaluation process to test for areas of particular risk n Example: Camera holders, risk factors were adjustability and stability. Do special focus groups or technical evaluations on these items up front to evaluate various concepts.

Formal Approaches
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Bean - Homart
View products as portfolio during selection

Pollock - Upjohn
DSS for choosing and cutting off product development projects as a portfolio

Lovejoy
Carry forward multiple concepts

Analog to genetic algorithms

Concept Selection
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TMI

Process of design concept evaluation and selection

runs throughout the development process carry multiple concepts, reduce number as costs increase make prototypes of multiple concepts return to the customer - run new conjoint to estimate profit Get engineering detail into evaluation

First Design Review

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TMI

October 14 in class n 10 min presentation on product plans n bring physical prototype (from lab or rapid) n Product Innovation Charter n Must prove out engineering feasibility of concept n Have thoughts on materials/cost and plans for refinement

Schedule
6:00 Team 1 n 6:25 Team 2 n 6:50 Team 3 n 7:15 Team 4 n 7:40 Team 5 n 8:05 Team 6 n 8:30 Team 7 n Arrive 5 minutes early, can leave when done
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References
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Crawford, New Products Management, Irwin, Burr Ridge, IL, 1994. Pugh, Total Design: Integrated Methods for Successful Product Engineering, AddisonWesley, Wokingham, England, 1990. Srinivasan, Lovejoy and Beach, Integrated Product Design for Marketability and Manufacturing, Journal of Marketing Research 24, 1997, 154-163.