Development Processes and Organizations

1. Development Processes and Organizations Chapter 2

2. Questions • What are the key product development activities that must be included in every project? • What project milestones and review gates can be used to manage the overall development process by phases? • Is there a standard development process that will work for everyone? • What role to experts from different functional areas play in the development process?

3. The Product Development Process • Sequence of steps that an enterprise employs to conceive, design, and commercialize a product. • Usefulness of a well-defined product development process • Quality assurance • Coordination • Planning • Management • Improvement

4. Six Phases of Generic Product Development 0 = Planning 1 = Concept development 2 = System level design 3 = Detail design 4 = Testing and refinement 5 = Production ramp-up • Used for market-pull products • Identify market opportunity and use whatever technologies are available to satisfy need

5. Concept Development: The Front End Process • Identifying customer needs • Establishing target specifications • Concept generation • Concept selection • Concept testing • Setting final specifications • Project planning • Economic analysis • Benchmarking of competitive products • Modeling and prototyping

6. Adapting the Generic Product Development Process • Technology –push products • Start with proprietary technology and identify appropriate market to apply the technology • Platform built around preexisting technological subsystem • Intel chipset, iPhone operating system, Gillette razor blade • Process-Intensive Products • Food, chemicals, paper • Production process constrains the product properties

7. Adapting the Generic Product Development Process • Customized products • light variations of standard configurations • High-Risk Products • technical risk – will product function properly? • market risk – will customer like the product? • budget and schedule risk – can team complete product on time and within budget? • Quick Build Products • software and electronics – design-build-test cycle is repeated several times • rapid iteration = spiral product development process

8. Adapting the Generic Product Development Process • Complex systems • larger scale products such as automobiles and planes • concept development phase considers the architecture of the entire system • system is decomposed into subsystems and components • detail design is a parallel process in which many teams operate separately.

9. Product Development Process Flows

10. Tyco Product Development Process

11. Exhibit 2-7

12. Product Development Organizations • Organizations are formed by establishing links among individuals. • reporting relationships • financial arrangements • physical layout • Organizational links may be aligned with functions, projects, or both

14. Choosing an Organizational Structure – Functional, Project, Matrix • How important is cross-functional integration? • How critical is cutting-edge functional expertise to business success? • Can individuals from each function be fully utilized for most of the duration of a project? • How important is product development speed? • Exhibit 2-9

15. Distributed Product Development Teams – Virtual Teams • Access to information about regional markets • Availability of technical expertise • Location of manufacturing facilities and suppliers • Cost saving through lower wages • Outsourcing to increase product development capacity • Warning – no shortcuts, no magic solution