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EDP 3 Product Development
EDP 3 Product Development
EDP 3 Product Development
Successful product development results in product that can be produced and sold
profitably.
Dimensions (important five) commonly used to assess the performance of a
product development effort- which ultimately relate to profit.
Dimensions:
1) Product Quality : How good is the product- does it satisfy customer needs- is it
robust and reliable ?
2) Product Cost : What is the manufacturing cost of the product,it includes spending on
capital equipment, tooling and incremental cost of producing each unit.
3) Development Time: How quickly did the team complete the product development
effort.
Is usually a significant
fraction of the investment
required
5) Development Capacity: Is the team/firm better able to develop future products
(as a result of their experience with a product
development project?).
There are other performance criteria at times; for example: third party may
demand that the product make ecologically sound case of resources and create
minimal hazardous waste products.
Product development is an interdisciplinary activity requiring contributions from
nearly all the functions of the firm; however three functions are always central to
a product development profit:
That is
1. Marketing
2. Design
3. Manufacturing
Marketing :
a) Mediates interaction between the firm and its customers
b) Facilitates the identification of product opportunities.
c) defines market segment
d) identifies customer needs
e) sets the target price
f) co-ordinates the launch and promotion of the products.
Design :
a) Define the physical form of the product to meet the need
b) Includes (i) Engineering Design ( Mechanical, Electrical, Software
etc)
and (ii) Industrial Design (aesthetics ergonomics, user interface
etc)
Manufacturing:
a) Responsible for designing and operating the product system (in order
to produce the product)
b) Includes usually the supply chain, comprising of purchasing,
distribution and installation.
a) Trade-offs : A car can be better fuel efficient but the cost will go up. (
Recognising; understanding and managing such trade-offs to maximise the
success of the product)
b) Dynamics: => changes
1. Technologies improve
Decision
2. Customer preferences change (evolve)
making in
3. Competitors introduce new products
changing
environment is
4. Macro economic environment changes
a formidable
task
Assessing
opportunity
&
Product
Planning
Phase 2 Phase 3
Phase 1
System Detail
Concept
Design
development level
Design
Phase 4
Phase 5
Testing
Prod.
And
Ramp-Up
refinement
Identifying
Customer
needs
Product
Specifications
Concept Gen.
Concept
Selection
Concept
Testing
Product Architecture
Industrial
Design
Design
For
Prototyping
Robust Design
Manufacturing
Identify
opportunity
Evaluate
and
Prioritize
projects
Portfolio of
project
Allocate
Resources
and Plan
Timing
Product plan
Mission statement
Complete
pre-project Concept development
phase
planning
Concept development
phase
Identify
customer
needs
Establish
target
Spec.
Generate
Product
Concepts
Select
product
concepts
Test
product
concept
Set
final
spec.
Plan
down
stream
development
System level
design phase
System level design phase includes the description of
Product Architecture
The documentation of the into subsystem and
components
Assembly
Input for
Detail
Design
addressed in this
phase :
Product cost
Robust
performance
Testing and
refinement phase
Production Ramp-Up
To train work force
Workout problems in production process