Customer Needs & Product Specifications PDF

Customer Needs & Product Specifications
Fall2005- ENGR 3200U
Product Planning Process
Planning
Planning
Concept
System-Level
System-Level
Concept
Development
Design
Design
Development
Detail
Detail
Design
Design
Testing
Testingand
and
Refinement
Refinement
Production
Production
Ramp-Up
Ramp-Up
Four Phases of Design Progress
The product planning phase precedes the Design process.
Xerox Lakes Project Example

Xerox Cooperation is a global Enterprise offering a wide range of
documents related products. Its mission is being a leader in the global
document market. Technological innovation in a rapid changing market is
their key element in competitive strategy. Lakes is a project in Xerox that
resulted a product called Centre 265.
Xerox Document
Centre 265
Product Planning Process

Product plan identifies the portfolio of products to be developed by the
organization and the timing of their entering to the market.
Main output of Product Planning Process is Mission Statement
Four Types of Product Planning

Process
Hodaka
New
Platforms
Legend
Project
Lakes
Product
Release
H-Net
Derivatives
L-Net
Improvements
595
6010
Fundamentally New
1996
392
393
Astro
1997
1998
1999
2000
Five Steps of Product Planning

Process
To develop a product plan and a project mission statement a five steps
process is suggested:
1- Identify Opportunities
2- Evaluate and prioritize projects
3-Allocate resources and plan timing
4-Complete Pre-project planning
5- Reflect on the results and the process
Multiple Projects
Identify
Opportunities
Evaluate and
Prioritize
Projects
Portfolio
of
Projects
Allocate
Resources and
Plan Timing
Product
Plan
Complete
Pre-Project
Planning
Mission
Statements
Product
Development
Process

Process
Step 1: Identify Opportunities
Ideas may come from several sources:
Market, sales personnel, R&D, Current Product development team,
Manufacturing, Customer, Third parties such as suppliers, Inventor,
Business partner

Process
Step 2: Evaluate and Prioritize Projects
Selection between hundreds or even thousands opportunities in a year
Competitive strategy
Market segmentation
Technology Trajectories
Product platform planning
Balancing the Portfolio
Market Segment Map

65 ppm
network
$31k
65 ppm
$23k
55 ppm
Department
$20k
40 ppm
60 ppm
network
$35k
Lakes
Project
$16k
Market Segment
25 ppm
$10k
35 ppm
$15k
Lakes
Extensions
40 ppm
$20k
Legend
Xerox
product
Workgroup
30 ppm
$10k
40 ppm
network
$20k
competitor
product
HodakaProject
20 ppm
$8k
25 ppm
$9k
potential
competitor
30 ppm
$10k
Personal
20 ppm
$7k
1997
1998
1999
2000
Xerox B&W digital products and competitors in three market

segments.
Key performance dimensions are pages per minute,
networking capacity and price
Year of
Release
Copier Performance
Technology trajectories (S-Curves)
Digital
Technology
Light-Lens
Technology
Time
10
Technology Roadmap
Functional Elements
Technologies
Photoreceptor
Cylindrical
Drum
Scanner
Layout
2D CCD Array
w/Optical Reduc.
Toner
Type
High
Temperature
Output
Modes
Monochrome: Paper, Fax, Scan,

Local Network, Internet
3-Pitch Belt
Photoreceptor
n-Pitch Belt
Photoreceptor
Full-Width, Linear Array

without Optical Reduction
Low Melting
Point
Low Melting Point,

Low Emission
Color: Paper, Fax, Scan,
Local Network, Internet
User
Interface
Keypad
Touch Screen
Image
Processing
600 dpi
Automatic Image Quality

600/1200 dpi
1200 dpi
Diagnostics
On-Board
Diagnostics
Touch Screen, Remote PC
Remote-Dialup
Diagnostics
1800 dpi
Remote
Repair
Document
Centre
220, 230
Document
Centre
240, 255, 265
Document
Centre
2XX
Document
Centre
3XX
Hodaka
Project
Lakes
Project
Lakes
Extensions
Next
Platform
Time
11
Product platform planning

Research and
Technology
Development
Platform
Product
Development
Platform A
Platform B
Legend
Project
Product
Release
Derivative
Product
Development
time
A Platform development project creates the structure of a

family
of products. Derivative Products may be included in the
initial platform (A) of may follow thereafter (Platform B)
12
Balancing the Portfolio

Product-Process Change Matrix
Extent of Production Process Changes
Extent of Product Changes
Research and
Technology
Development
New
Core
Product
Next
Generation
Product
Addition
to Product
Family
Minor
Product
Enhancement
No
Product
Change
New
Core
Process
Next
Generation
Process
Single
Department
Upgrade
Tuning and
Incremental
Changes
No
Process
Change
Breakthrough
Development
Projects
Platform
Development
Projects
Lakes
Project
Derivative
Product
Development
Current
Product/Process
Support
13

Process
Step 3: Allocate Resources and Plan Timing
Project timing
Product Plan
14
60%
40%
20%
80%
Year 1

Year 2
Industrial Design
Software/ Firmware
Manufacturing Engineering
Electrical Engineering
Mechanical Design
Industrial Design
Software/ Firmware
Mechanical Design
Industrial Design
Software/ Firmware
0%
U
ti
li
z Design
Mechanical
a
t
io
n
C
a
p
a
c
it
y
Aggregate Resource Planning
140%
120%
100%
Year 3
15

Process
Step 4: Complete Pre-Project planning
Project is approved but before substantial resources are applied
A small cross- functional team
The Lakes core team: 30 people with wide range of technological
expertise, marketing, Manufacturing and service functions
16
Mission Statement
17
Lakes Project Mission Statement

Product Description
Networkable, digital machine with copy, print, fax, and scan functions
Key Business Goals
Support Xerox strategy of leadership in digital office equipment
Serve as platform for all future B&W digital products and solutions
Capture 50% of digital product sales in primary market
Environmentally friendly
First product introduction 4thQ 1997
Primary Market
Office departments, mid-volume (40-65 ppm, above 42,000 avg. copies/mo.)
Secondary Markets
Quick-print market
Small satellite operations
Assumptions and Constraints
New product platform
Digital imaging technology
Compatible with CentreWare software
Input devices manufactured in Canada
Output devices manufactured in Brazil
Image processing engine manufactured in both USA and Europe
Stakeholders
Purchasers and Users
Manufacturing Operations
Service Operations
Distributors and Resellers
18

Process
Step 5: Reflect on the Results and Process
Asses the quality of both the process and the results
19
Concept Development; Front-End

Process
Interrelated activities ordered roughly in the front-end process
Identify customer needs
20
Case Study: Design of Screwdriver

A successful hand tool Manufacturer was exploring the growing
market for hand-held power tool. Identification of the customer needs
an adequate process.
Existing product
used to drive the
screw:
-Manual
screwdrivers
-Cordless
screwdrivers
-Screw gun
-Cordless drill with
driver bit
21
Mission Statement: Screwdriver Project

Mission statement identifies a direction to go, but generally dont
specify a precise destination or the particular way to proceed
22
Five Steps of Identifying

customer needs
To Identifying customer needs a five steps process is suggested:
1- Gather raw data from customer
2- Interpret the raw data in terms of customer needs
3-Organize the needs into a hierarchy of primary, secondary and (if
required) tertiary needs.
4- Establish a relative importance of the needs
23

customer needs
One to one interview (One hour)
Focus groups (8 to 10 customers- $2500 each focus group)
Observing the product in use
24

customer needs
25
Visual Information Example: Book Bag Design
26

customer needs
Number of Interviews
Case studies:
-90% of customer needs for picnic coolers were revealed after 30
interviews
-98% of customer needs for a piece of office equipment were revealed
after 25 hours data collection in both focus groups and interviews
General rule: Between 10 to 50 interviews
27

customer needs
Choosing Customers
28

customer needs
The Art of Eliciting customer Needs Data
Documenting Interactions with Customer (Template for the raw data)
29

Customer statements in the template for the Screw Drive (SD) case.
30

customer needs
2- Interpret the raw data in terms of customer needs
31

customer needs
3-Organize the needs into a hierarchy of primary, secondary and (if
required) tertiary needs.
32

Primary and Secondary
Customer needs, * s
indicate the rate of
secondary needs and !
Indicate a latent need
33

customer needs
4- Establish a relative importance of the needs
34

customer needs
35
HINTS
Capture What, Not How.

Meet customers in the use environment.
Collect visual, verbal, and textual data.
Props will stimulate customer responses.
Interviews are more efficient than focus groups.
Interview all stakeholders and lead users.
Develop an organized list of need statements.
Look for latent needs.
Survey to quantify tradeoffs.
Make a video to communicate results.
36
Concept Development; Front-End

Process
Product Specification
37

Specialized Bicycle components was interested in developing a new
suspension fork for the mountain bike market.
Existing Suspension:
It is successful in the highperformance segment of the market
racing cyclist with less concern for
cost or long term durability. The firm
wished to broaden the sales of the
suspension forks and therefore was
interested in developing a product
that would provide high value for the
recreation cyclists
38
Case Study: Customer Needs for the

Suspension
Fork
39
What are Specifications

Language of Customer should be translated
A specification consists of a metric and a value.
For example:
Customer Language
Easy to Install
Specification
Average time to Assemble the Fork to the Frame is Less than 75
Seconds
40
When are specifications established?

Product Specification
Establishing the Target Specification is a preliminary specification

Later these specifications will be refined based on the limitations of the
product concept actually selected: Set Final Specification
41
Four Steps of the process of Establishing

the Target Specifications
A four steps process is suggested:
1- Prepare the list of metrics
2- Collect competitive benchmarking
3-Set idea and marginally acceptable target values
42

Metrics should be complete; Several metrics may be
necessary to completely reflect a single customer need.
Metrics should be dependent variables
This is a variation of what-not-how
Dependent variable example: Mass of the fork
Independent variable example: material used for the fork
Mass arises from the other independent decisions
43

The metrics should include the popular criteria.
Many customers buy products based on independently
published evaluations.
Popular Science, Consumer Reports
In case of bicycle: Bicycling and mountain bike magazine
Monster test machine is used by this magazine which measure
of the vertical acceleration of the handlebars as a bicycle
equipped with the fork runs over a block 50 millimeter tall
44
List of Metrics
Spreadsheet
Includes
relative
importance and
the unit
45
Need-Metrics Matrix
46

2- Collect
competitive
benchmarking
(A room of house
of quality)
Based on the
Metrics
47

2- Collect
competitive
benchmarking
(A room of house
of quality)
Based on the
Satisfaction of
Needs
48

3-Set idea and marginally acceptable target values
At least X: the value of the brake mounting stiffness is specified to be at least 325
kilonewtons/meter)
At most X: the value of the mass of suspension forl is set to be at most 1.4 kilograms)
Between X and Y: spring preload between 480 and 800 Newtons
Exactly X: ideal value for the rake offset metric is set to 38 millimeters
A Set of Discrete Values: headset diameters 1.00, 1.125 or 1.250 inches
49

50
Five Steps of the process of Setting the

Final Specifications
As the team finalize the choice of a concept and prepares for subsequent
design and development, the specifications are revised.
A five steps process is suggested:
1- Develop Technical models of the product
2- Develop a cost model of the product
3- Refine the specifications, marking trade-offs where necessary
4-Flow down the specifications as appropriate
51

A technical model is a tool for predicting the values of the metrics for a
particular set of design decisions.
Example: Oil-damped coil spring concept suspension fork
52

53

The goal of this step is to make sure that the product can be
produced at the target cost
A simple method is a bill of material with cost estimates
54

55

Competitive map is the tool for this step. It is also called a trade-off map.
It is simply a scatter plot of competitive products along two dimensions
selected from the set of metrics
56

Competitive map is the tool for this step. It is also called a trade-off map.
It is simply a scatter plot of competitive products along two dimensions
selected from the set of metrics
Regions by the marginal and ideal values are shown in the map.
Armed with technical performance model and a cost model the team can
asses it will be able to beat the trade off exhibited in the map
57

High performance suspensions (low monster score) have high manufacturing cost
58

3- Refine the specifications,
marking trade-offs where
necessary
The final specifications of the
suspension fork
59

4-Flow down the specifications as appropriate
For a complex system, specification should be flow down for the
subsystems and subassemblies.
Example: For an automobile the overall specifications contain metrics like
0-100 KM/hour acceleration time, turning radius and fuel economy.
However, spec. must also be created for the several dozen major
subsystems that make up the automobile including engine, body, breaking
system and
60

61

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Customer Needs & Product Specifications

Fall2005- ENGR 3200U

Product Planning Process

Four Phases of Design Progress

The product planning phase precedes the Design process.

Fall2005- ENGR 3200U

Xerox Lakes Project Example

Fall2005- ENGR 3200U

Product Planning Process

Fall2005- ENGR 3200U

Four Types of Product Planning

Fall2005- ENGR 3200U

Five Steps of Product Planning

Fall2005- ENGR 3200U

Five Steps of Product Planning

Fall2005- ENGR 3200U

Five Steps of Product Planning

Fall2005- ENGR 3200U

Market Segment Map

Xerox B&W digital products and competitors in three market

Technology trajectories (S-Curves)

Fall2005- ENGR 3200U

Monochrome: Paper, Fax, Scan,

Full-Width, Linear Array

Low Melting Point,

Automatic Image Quality

Fall2005- ENGR 3200U

Touch Screen, Remote PC

Product platform planning

A Platform development project creates the structure of a

Balancing the Portfolio

Extent of Product Changes

Five Steps of Product Planning

Fall2005- ENGR 3200U

Fall2005- ENGR 3200U

Aggregate Resource Planning

Five Steps of Product Planning

Fall2005- ENGR 3200U

Fall2005- ENGR 3200U

Lakes Project Mission Statement

Five Steps of Product Planning

Fall2005- ENGR 3200U

Concept Development; Front-End

Identify customer needs

Fall2005- ENGR 3200U

Case Study: Design of Screwdriver

Mission Statement: Screwdriver Project

Fall2005- ENGR 3200U

Five Steps of Identifying

Fall2005- ENGR 3200U

Five Steps of Identifying

Fall2005- ENGR 3200U

Five Steps of Identifying

Fall2005- ENGR 3200U

Visual Information Example: Book Bag Design

Fall2005- ENGR 3200U

Five Steps of Identifying

General rule: Between 10 to 50 interviews

Fall2005- ENGR 3200U

Five Steps of Identifying

Fall2005- ENGR 3200U

Five Steps of Identifying

Fall2005- ENGR 3200U