Product Design & Development

Module no. (Lecture No 4)

BITS Pilani Ven Holalkere
Mechanical Engineering
Pilani Campus
Identifying Customer Needs

Product Design and Development

Chapter 5
Karl T. Ulrich and Steven D. Eppinger
5th Edition, Irwin McGraw-Hill, 2012.
Identifying Customer Needs

Customer Needs Example: Cordless Screwdrivers

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 Identifying Customer Needs
Customer Needs Example: Cordless Screwdrivers
• A successful hand tool manufacturer’s failed attempts at identifying
customer needs for a power tool
• Need a method to comprehensively identifying customer needs to
accomplish the following:
• To ensure that the product design is focused on customer
needs
• Identify latent (hidden) needs and explicit needs
• Provide a fact base for justifying the product specs
• Create an archival record of the needs activity of the
development process
• Ensure that no critical customer needs is missed or forgotten
• Develop a common understanding of customer needs among
members of the development team
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Identifying Customer Needs

• Identifying customer needs process goals:

• Create high quality information channel between the
customers and the product developers
• Create a “Use environment” for product developers
• Technical trade-offs made correctly
• Facilitate discovery of innovative solutions to
customer needs

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

 Identifying Customer Needs
Customer needs activity in relation to other concept development activities

Establish Generate Select

Mission Identify
Target Product Product
Statement Customer
Specifications Concepts Concept(s)
Needs

Development
Set Plan Plan
Test
Final Downstream
Product
Specifications Development
Concept(s)

Perform Economic Analysis

Benchmark Competitive Products
Build and Test Models and Prototypes
Identifying Customer Needs

Product Specs Customer Needs

Specs depend on technical and Independent of any particular
economic feasibility product development

Specs depend on the selected To be identified and recorded

concept without knowing how to
implement the needs or concept
to be developed
Specs depend on the customer Customer needs are independent
needs of product specs

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Identifying Customer Needs
Customer Needs Process
1. Gather Raw Data
– Interviews
– Focus Groups
– Observation
2. Interpret Raw Data
– Need Statements
3. Organize the Needs
– Hierarchy
4. Establish Importance
– Surveys
– Quantified Needs
5. Reflect on the Process & Results
– Continuous Improvement
Mission Statement
Example: Screwdriver Project
Product Description
•A hand-held, power-assisted device for installing threaded fasteners
Key Business Goals
•Product introduced in 4th Q of 2000
•50% gross margin
•10% share of cordless screwdriver market by 2004
Primary Market
•Do-it-yourself consumer
Secondary Markets
•Casual consumer
•Light-duty professional
Assumptions
•Hand-held
•Power assisted
•Nickel-metal-hydride rechargeable battery technology
Stakeholders
•User
•Retailer
•Sales force
•Service center
•Production
•Legal department
Identifying Customer Needs
Step 1: Gather Raw Data
• Interviews: Product development team members meet
with a select customer in customer environment for 1-2
hours
• Focus Groups:
• Product team moderator facilitates 2-hour discussion with 8-
12 customer group
• Total cost per meeting $5000 (approx.)
• Observe the product usage
• May reveal new usages
• One two-hour focus group discussions equivalent to a two-
one hour interviews with one select customer (as shown in
the plot)
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
How Many Customers?
100

80
Percent of Needs Identified

60
One-on-One Interviews (1 hour)
Focus Groups (2 hours)
40

20

0
0 1 2 3 4 5 6 7 8 9 10
Number of Respondents or Groups

From: Griffin, Abbie and John R. Hauser. “The Voice of the Customer”,
Marketing Science. vol. 12, no. 1, Winter 1993.
Identifying Customer Needs
Step 1: Gather Raw Data (Continued)
• Choosing Customers
• Number of customer interviews to be between 10-50 to
capture most of the needs for a single market
• Needs identification efficiency increases with lead users and
extreme users
• Lead users constantly working on emerging needs and are
struggling with the current product inadequacies
• Lead users may already have invented solutions to meet their
needs
• Extreme users use products in unusual ways and hence have
special needs
• Extreme users may help leapfrog technology barriers and
provide competitive advantage
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Identifying Customer Needs
Step 1: Gather Raw Data (Continued)
• Choosing Customers
• Customer selection matrix is useful for both market and
customer variety
Retailer or
Lead Users Users Service Centers
Sales Outlet
Homeowner
0 5
(Occasional use)
Handy person
3 10 2 3
(Frequent use)
Professional
3 2
(Heavy-duty use)

Customer selection matrix for the cordless screwdriver project

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Identifying Customer Needs

Step 1: Gather Raw Data (Continued)

• Art of eliciting customer needs data
• Let the customers discuss freely their needs
• Do not try to convince the customers on what they need
• Conduct effective interaction with the customers
• Go with the flow
• Use visual stimuli and props
• Suppress preconceived hypothesis about the product technology
• Have the customer demonstrate the product and/or typical tasks
related to the product
• Be watchful for expressions of latent needs
• Watch for non-verbal information

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Identifying Customer Needs

Step 2: Interpret Raw Data in Terms of Customer Needs

• Express the need in terms of what the product has to do, not in terms of how
it might do it
• Express the need as specifically as the raw data
• Use positive, not negative, phrasing
• Express the need as an attribute of the product
• Avoid the words MUST and SHOULD

Discuss Exhibit 5-6: Customer data template

Discuss Exhibit 5-7: Guidelines for writing need
statements

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Exhibit 5-7: Five Guidelines for Writing Needs Statements
Guideline Customer Statement Need Statement-Wrong Need Statement-Right
“Why don’t you put The screwdriver battery The screwdriver battery
What Not
protective shields around contacts are covered by is protected from
How the battery contacts?” a plastic sliding door. accidental shorting.

“I drop my screwdriver all The screwdriver is The screwdriver

Specificity
the time.” rugged. operates normally after
repeated dropping.

Positive “It doesn’t matter if it’s The screwdriver is not The screwdriver
Not raining, I still need to disabled by the rain. operates normally in
Negative work outside on the rain.
Saturdays.”

Attribute “I’d like to charge my An automobile cigarette The screwdriver battery

of the battery from my cigarette lighter adapter can can be charged from an
Product lighter.” charge the screwdriver automobile cigarette
battery. lighter.

Avoid “I hate it when I don’t The screwdriver should The screwdriver

“Must” know how much juice is provide an indication of provides an indication
and left in the batteries of my the energy level of the of the energy level of
cordless tools.” battery. the battery.
“Should
Identifying Customer Needs

Step 3: Organize the Needs in to a Hierarchy

• Print or write each need statement on a separate card
• Eliminate redundant statements
• Group the cards according to the similarity of the needs
• Label each group
• Create supergroups consisting of 2-5 groups
• Review and edit the organized needs statements

Discuss Exhibit 5-8: Hierarchical list of primary and

secondary customer needs for the cordless screwdriver

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

 Exhibit 5-8: Organized List of Customer Needs
The SD provides plenty of power to drive screws.
* The SD maintains power for several hours of heavy use.
** The SD can driv e screws into hardwood.
The SD driv es sheet metal screws into metal ductwork.
*** The SD driv es screws faster than by hand.
The SD makes it easy to start a screw.
* The SD retains the screw before it is driv en.
!* The SD can be used to create a pilot hole.
The SD works with a variety of screws.
** The SD can turn philips, torx, socket, and hex head screws.
** The SD can turn many sizes of screws.
The SD can access most screws.
The SD can be maneuvered in tight areas.
** The SD can access screws at the end of deep, narrow holes.
The SD turns screws that are in poor condition.
The SD can be used to remov e grease and dirt from screws.
The SD allows the user to work with painted screws.
The SD feels good in the user's hand.
*** The SD is comfortable when the user pushes on it.
*** The SD is comfortable when the user resists twisting.
* The SD is balanced i n the user's hand.
! The SD is equall y easy to use in right or l eft hands.
The SD weight is just right.
The SD is warm to touch in cold weather.
The SD remains comfortable when left in the sun.
The SD is easy to control while turning screws.
*** The user can easil y push on the SD.
*** The user can easil y resist the SD twisting.
The SD can be locked "on."
!** The SD speed can be controll ed by the user whil e turning a screw.
* The SD remains aligned wit h the screw head without slipping.
** The user can easil y see where the screw is.
* The SD does not strip screw heads.
* The SD is easily re ve rsible.
The SD is easy to set-up and use.
* The S D is e asy to turn on.
* The S D pre vents inadvertent switching o ff.
* The u se r ca n se t th e maximum t orque of the SD.
!* The S D pro vide s re ady access to bits o r acces so ries.
* The S D can be atta ched t o the use r for temporary stor ag e.
The SD power is convenient.
* The S D is e asy to recharge.
The S D can be used while re charging.
*** The S D recharges quickly.
The S D batteries a re rea dy to use when new.
!** The u se r ca n apply torque ma nually to the SD to drive a screw .
The SD lasts a long time.
** The S D tip surv ives hea vy use.
The S D can be ham mere d.
* The S D can be dropped fro m a ladder without dama ge.
The SD is easy to store.
* The S D fits in a toolbox easily.
** The S D can be charged while in sto ra ge.
The S D resists corrosion when left ou tside or in damp place s.
!* The S D maintai ns its charge after long periods of stor age.
The S D maintai ns its charge w he n wet.
The SD prevents damage to the work.
* The S D pre vents da mage t o the scre w hea d.
The S D pre vents scrat ching of finishe d surface s.
The SD has a pleasant sound when in use.
The SD looks l ike a professional quality tool.
The SD is safe.
The S D can be used on electrica l dev ice s.
*** The S D does no t cut t he u se r's hands.
Identifying Customer Needs

Step 4: Establish the Relative Importance of the Needs

• Relative importance of the needs identified in steps 1 to 3
• Two approaches
• Team members’ consensus
• Conduct further customer surveys
• Limit further customer surveys to needs that are difficult
technical trade offs and/or costly features in product design
• No latent need is a critical need

Discuss Exhibit 5-9: Importance Survey

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Identifying Customer Needs

Step 5: Reflect on the Results and the Process

• Customer interactions
• Are latent needs captured?
• Any further surveys/interviews necessary?
• Choose customers for product development efforts
• Any surprise “needs”?
• Did we include all pertinent customers and/or product team
members?
• How can we improve on the process?

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

 Caveats
• 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.