PRODUCT

DESIGN AND
DEVELOPMENT
CHAPTER 2 : THE PROCESSES and
THE ORGANIZATIONS

Hambali b. Boejang PhD

 INTRODUCTION
• Inexperience talents will normally have curiosity in mind, how to start?
There are two common issues to start Product Development Process.
• Which development process suits the firm (depends on industrial situation).
• What types of organization structure is the best for the firm (project, functional
or both)
• One might want to ask himself/herself some of the following questions:
• Is there a standard development process?
• What roles do the team members play?
• What achievable milestones can be assigned at every phase of the development
process?
• How the development team should be structured: project based or functional
based?
 LEARNING OBJECTIVES
• At the end of this chapter, student should be able to:
• Explain what constitutes product development
organizations.
• Describe types of organizations that appropriate for
different settings.
• Identify strengths and weaknesses of different
organizational.
• Describe how the project-team structure can be mapped
onto the overall product development organization.
 Applicable Product Developement
Process
• Product development is a process in which decision
making activities are employed by an organization in its
efforts to produce a product for commercialization
purposes.
• Not tinkering.
• Thus product development effort is an intellectual activity
and carried out in a structured manner.
• Not all manufacturers used and implement the same
product development process in their development efforts
- It is solely based on the industrial situations such.
 Applicable Product Developement
Process
• Assuring quality of products: Every phase along
product development process has its own milestones or
check points. It is specified circa the initial stage of the
process. The correct choice of milestones at different
phases would give assurance to the teams that they are
undergoing a right part of product development process.

• Coordinating tasks and responsibility: Coordination

of tasks becomes easy and clear cut as every team
member knows his/her roles at every stage of the
planning or master schedule.
 Applicable Product Developement
Process
• Scheduling: The planning portrays the entire duration to accomplish the
product development project. At each phase certain milestones are determined
and must be achieved.
• Management: A development process can be used as a benchmark in
comparing between one development efforts to the other. This assessment can
be done between ongoing efforts or the one that previously accomplished. It is
also can be used as a reference for future project. Flaws are easily identified by
the project manager and his/her team.
• Improvement: Documented product development process will always is the
best source for reference. New product development efforts can be improved
by avoiding or eliminating unnecessary tasks or activities with reference to the
previous experience.
 Activity 1:.Group discussion
• Form a group of 3, and answer the following questions
• Give three examples of milestones that you can think of for
any different phases in product development process.
• What kind of decisions that you need to decide with regard to
target market for market segment?
• List three criteria or performances that you can compare
between two product development processes?
Applicable Product Developement
Process

NPD of Ulrich and Eppinger

 Applicable Product Developement
Process
• Product Planning (Phase 0): This is also known as
phase zero as the planning takes place before the PD
efforts even started.
• Concept development (Phase 1): During this
phase target market requirements are identified,
several alternatives of product concepts are
generated and evaluated.
 Applicable Product Developement
Process
• System-level design: This is also known as the
configuration design and parametric design phases. The
activities include the determination of the locations and
positions for components, parts and features.
• Detail design: The detail design phase outputs include
the part drawings, sub assembly and assembly drawings,
B.O.M. materials, quantity of parts and components, and
tolerances of parts and components. The standard parts
and special purpose parts are all identified to be purchased
from suppliers.
 Applicable Product Developement
Process
• Testing and refinement: The testing and refinement phase
involves the construction and evaluation of prototypes versions of
the product. Early (alpha) prototypes are usually built with
materials that simulate the actual material. Parts are fabricated via
soft tooling or any rapid tooling method. This is sometimes known
as F-1 prototype. Later (beta) prototypes are usually fabricated
parts supplied by the actual manufacturing processes but may not
be assembled using the actual assembly line facilities.
• Mass Production: In the production ramp-up phase, the product
is made using the actual manufacturing process. This is some time
requires a pilot project where the product is manufactured in actual
production line as if it is a training for production line operators.
Applicable Product Developement
Process

5 Stage-5 Gate/Stage-Gate System of Cooper

 Applicable Product Developement
Process
STAGE ACTIVITY

Stage 1: Scoping A quick investigation and shaping of the project to determine the project’s technical and
marketplace advantages
Stage 2: Build the Detailed upfront investigation tasks are done in terms of market analysis, competitive
business case benchmarking, concept trials, technical assessment, outsourcing assessment, and financial and
business risks analysis.
Stage 3: This stage involves the actual engineering design and development of the product. It includes
Development process engineering as well where both engineering and process engineering are heavily integrated
and communicated to generate the physical development of the product, including the
prototypes.
Stage 4: Testing and This involves the verification, validation, and confirmation of the design, prototype, and process
validation of the proposed new product, together with its marketing and production. This stage tests and
validates the whole viability of the development project.
Stage 5: Launch This stage deals with the launching and commercialization of the product, including mass
production, product launching, and sale.

5 Stage-5 Gate/Stage-Gate System of Cooper

 Applicable Product Developement
Process

A key focus in this model is on how relevant information is

integrated into the decision-making at critical evaluation
points (gates), when the progress status is reported and
evaluated, but also during specific development phases
(stages).
Different evaluation criteria become relevant for assessing
each stage. In the following table, Tzokas et al. (2004)
report their use in practice.

5 Stage-5 Gate/Stage-Gate System of Cooper

 Applicable Product Developement
Process
Table 1: Evaluation criteria (Tzokas et al., 2004).

5 Stage-5 Gate/Stage-Gate System of Cooper

 Applicable Product Developement
Process
The NPD process

• Phase 0: Market and Product PHASE MAIN ACTIVITIES

Feasibility; Technology; Concept Market & Product Identification of target market and market size, financial
Development Phase. Feasibility, Technology & commitment, benchmarking, business case & risks study. Product
Concept development. alternative concept development (styling), product specifications,
master schedule, product packaging, project strategy, manufacturing
• Phase 1: Product and Process (Phase 0)
strategy, bill of material (BOM) cost, carry over identification.
Development; Prototype Build and
Design Validation. Product & Process Engineering design and development, prototype fabrications and
Development and testing and product validation, quality assessment,
• Phase 2: Process Validation and Product Prototype Build & Design
Validation
Confirmation, and
(Phase 1)
• Phase 3: Production and Process Process Validation & Production preparation & production trial, assembly verification,
Product Confirmation quality verification and improvement, pre-production build-up,
Improvement. launching plan and homologation.
(Phase 2)

Production & Process Mass production & ramp-up product volume, production control,
Improvement. launching preparation, project review, project budget allocation
review, project closeout.
(Phase 3)
 Applicable Product Developement
Process
The NPD process

PHASE GATEWAY GATEWAY DESCRIPTION (Go/No-Go decisions)

PHASE 0 G1 Go/No-Go for product concepts initiation, product
launch concept, business strategy, project business case,
project’s timeline, financial commitments, technology
development, project organizational structure, project
strategy, vendor involvement, and general packaging of
product.
G2 Go/No-Go for concept selection, product packaging,
master schedules, and product technical specifications.
This includes the design contents and overall package
versus competitors.
G3 Go/No-Go for the design concept for the full model
scale. Evaluating criteria such as weight, cost, design,
and detailed product packaging. Design concept based
on results from simulations with respect to safety,
performance, and handling.
G4 Go/No-Go for engineering design of the vehicle,
including freeze of exterior and interior styling, final
packaging, equipment level, product specifications,
quality target, manufacturing plan, BOM cost, and
risks.
PHASE 1 G5 Go/No-Go for production trial to signify the completion
of Phase 1 and the commencing of Phase 2 of pilot trial.
PHASE 2 G6 Go/No-Go for mass production to begin.
PHASE 3 G7 Go/No-Go for product launch.
G8 Go/No-Go for project close-out.
Applicable Product Developement
Process
 Activity 2:.Group discussion

• Form a group of 5, and answer the following

questions

• Compare the development phase with the design phase.

Present your findings to the rest of the class (5 minutes is
given for you to complete this tasks).

• Refer design phase

 Adapting The Applicable Product
Development Process
• Technology-push products: It involves many basic materials or
basic technologies. An organization with strong R&D activities.
Examples are PC plastic materials use as roof. Composite
material in making car components, Bluetooth technology in
data transfer, etc.
• Generic (market-pull) products: This product development
process is applied when a product is produced based on what
customer required. It begins with market opportunities or
design problems and use technologies available to satisfy
customer needs.
• Platform product: This is where a new product is developed
using the existing product platform. Platform sharing.
 Adapting The Applicable Product
Development Process
• Process intensive: In this product development process both
product and process designs are closely related, and each action
must be followed in step-by-step procedures. Example the chemical
and food industries.
• Customized products: An alteration of existing products. Normally
it is minor improvement, and incurring development cost in this
development process is not that high compare to platform product.
Example, a face-lift or cosmetic change of an existing car model.
• High-risk product: It addresses many types of risks such as product
functions, safety issues with regard to the product, end-user and the
developer, Other than that it may involve the study of risks
pertaining to customer acceptance due to market and technical
uncertainties.
 Adapting The Applicable Product
Development Process
• Quick build products: The product development
process involves a lot of iterations. Product is built
and immediately undergoes testing. This is repeated
several times.
• Complex system: The system must be decomposed
into subsystem and components for better
understanding of the functions and ease of assembly.
It is known complex development process.
 Activity 3: Individual
• What would be the best product development process for a
platform product?

• Give two examples of technology push product.

• SMI/SME(s) which participate in the localization of a component

or part of a product, what is the product development process suits
them best.

• How technological advancement of RP processes and their

material enables for spiral product development process?
 Activities and Information Flows
• The product development process goes together with information
and activities. The generic product development process suits
technology push, market pull, platform, high-risk, process
intensive and customized product.
Activities and Information Flows
The spiral product development process is used
for quick build product.

The complex product development process is

applied in the development of complex product
Product Development Organizations
• People involvement is one of the interesting and vital criteria in
product development process. People are always the main
driving factor for an effective modern business strategy. A
successful organization knows how to utilize its staffs
effectively. Therefore, organization structure is important to
product development
• How Organizations Are Formed?
• An organization is formed by integrating a link between people. Link
can be established between individual or group of people. The status
of the link could be formal or vice versa.
• Three types of links: reporting relationship (supervisor and
subordinate), financial arrangement (through financial entity), and
physical layout (sharing office/building or site).
 Product Development Organizations
• An individual can be either:
• A function (in organizational terms) is an area of responsibility, normally the personnel
who fall into this classification has same backgrounds in terms of education, training,
and experience..
• Regardless of their functions, individuals contribute and apply their knowledge to
specific projects.
The organizational links could be aligned with:
• Function
• Project or
• Both
• A finance staff who reports to a finance manager is considered as functional
organization. If he/she is attached to a project and reports to the project
manager, then it is project organization link. Supposed he/she reports to the
finance manager as well as to the project manager, it is considered to be both
organization link. This individual could be reporting to any of those managers
either on part-time or full time basis.
Product Development Organizations
• Both organization can be divided into two other organization
structures known as the Matrix organization (hybrid).

• Lightweight Project Matrix Organization( weak project link)

• Heavyweight Project Matrix Organization (strong project link).

• The differences between these two matrix organizations can be

seen through the authorization of the project managers and the
functional managers, and the link between those managers with the
projects.
 Product Development Organizations
Stockholders

Board of Directors

President

Purchasing Manufacturing Research & Development Sales & Marketing Finance

Purchasing Production Operations Design Engineering Sales Accounting

Estimating Quality Control Industrial Design Customer Service Budgeting
Expediting Industrial Engineering Prototyping Marketing Planning
Manufacturing Engineering Testing Advertising
Production Planning Materials Research
Tooling

Functional organization structure

Product Development Organizations

Integrated product development organization

Selecting an Organizational Structure
• The functional organization produces specialization and expertise in
the functional area.
• The project organization leads to effective coordination and structured
distribution of tasks among different functions.
• The Matrix one blends both characteristics.
• Some of the questions that might help in the selection of
organizations:
• 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?
Selecting an Organizational Structure
 Activity 4: Group discussion

• What is the best type of organizational structure to

be applied in a development of a new car? Explain
your decision.
• How about product that is less complex than a car
like a thermo flask? Why?
• Tips and Hints: A full model change type of project
in developing a car usually requires more than 200
engineers. A car has approximately around 10,000
parts.
 SUMMARY

• An enterprise must make two important decisions about the

way it carries out product development. It must define both a
product development process and a product development
organization.
• A product development process is a decision making activities.
A well-defined development process helps is essential.
• The generic process presented in this chapter includes six
phases: planning, concept development, system-level design,
detail design, testing and refinement, and mass production
(ramp-up).
• The generic product development process is widely used mainly
by the market pull product. Spiral product development and
complex suit quick build product and complex product
relatively.
 SUMMARY

• Regardless of the development process, people are the key element

to a success of a product development process. They are link
together in an organization through reporting relationships,
financial relationships, and/or physical layout.
• Functional organizations are those in which the organizational links
correspond to the development functions. Project organizations are
those in which the organizational links correspond to the
development projects. Two types of hybrid, or matrix, organization
are the heavyweight project organization and the lightweight
project organization.
• The classic trade-off between functional organizations and project
organizations is between deep functional expertise and
coordination efficiency.