DMC 4532

PRODUCT DESIGN AND DEVELOPMENT

CHAPTER 3
PRODUCT PLANNING
BY
MUHAMAD ZAKI BIN YUSUP
IAR DEPARTMENT
At the end of this session the students
should be able to :

1. Explain the cross

cross--functional planning
process which develops the product
development team's mission
statement.

2. Discuss the broader, multiple

multiple--
product, multiple-
multiple-project context of
product development in established
firms.
 BEFORE ESTABLISH THE PLANNING:
What type of product? new, platforms, derivative products ?

Project various Timing and sequence?

Market and features?

New technologies used?

Manufacturing and service goals and constraints?

Product development vision

Financial targets ?

Budget and time frame

3.1 The Product Planning Process
3.1 The Product Planning Process
 3.1 The Product Planning Process
A Product Plan
New Hodaka Legend
Platforms Lakes Project
Product
H-Net Release
Derivatives
L-Net

Improvements 595 6010 392 393

Fundamentally New Astro

1996 1997 1998 1999 2000

Four Types of Product Development

Projects
3.1 The Product Planning Process

Product Development Process

Concept System-Level Detail Testing and Production

Planning Development Design Design Refinement Ramp-Up

Four Phases of Product Development

The product planning phase precedes the product development process.

3.1 The Product Planning Process

Identify opportunities

Evaluate and Prioritize Project

Allocate Resources and Plan Timing

Complete Pre Project Timing

Reflect on the Result and Process Multiple Projects

Evaluate and Allocate Complete Product

Identify
Prioritize Resources and Pre-Project Development
Opportunities
Projects Portfolio Plan Timing Product Planning Mission Process
of Plan Statements
Projects
 STEPS 1: Identify opportunities
3.1 The Product Planning Process
PROACTIVE SOURCES
APPROACH
•Marketing and sales personnel.
•Frustrations / •Research and technology
complaints from development organizations.
experience •Current product development
customer teams.
•Interview •Manufacturing and operations
(innovations / organizations.
modifications) •Current or potential customers.
•Consider •Third parties such as suppliers,
implications of inventors, and business
trends partners.
•Gather
suggestions
from sales force
/ customer “Opportunity funnel “
service
•Competitors' RESOURCES : Idea for New
Product
products
(competitive
benchmarking). OPPORTUNITY
Status of
emerging BETTER RELATE WITH
CUSTOMER NEEDS……
technologies
 STEPS 2: Evaluate and Prioritize Project
3.1 The Product Planning Process
COMPETITIVE STRATEGY
 - Technology leadership
 - Cost leadership
4 BASIC PERSPECTIVE
 - Customer focus
 - Initiative
MARKET SEGMENTATION
 actions of competitors and the strength

TECHNOLOGICAL TRAJECTORIES
 when to adopt a new basic technology in a product line

PRODUCT PLATFORM
set of assets shared across a set of products
allow a variety of derivative products to be created
 STEPS 2: Evaluate and Prioritize Project
3.1 The Product Planning Process COMPETITIVE STRATEGY
- Technology leadership - great emphasis on basic research and
development of new technologies
- Cost leadership - to compete on production efficiency (DFMA)
- Customer focus - works closely with new and existing
customers(needs/preference)
- Initiative - fast development process
LBT-ZX6 LBT-ZX8

LBT-ZX99i
 STEPS 2: Evaluate and Prioritize Project
3.1 The Product Planning Process
Market Segment Map

65 ppm 65 ppm
network
$23k $31k
55 ppm 60 ppm
Department Lakes network
$20k
Project
$35k Lakes
40 ppm
Extensions
$16k
Market Segment

25 ppm 35 ppm 40 ppm

$10k $15k $20k
Legend
Xerox
Workgroup product
30 ppm 40 ppm
network competitor
$10k $20k product

HodakaProject potential
20 ppm 25 ppm 30 ppm competitor
$8k $9k $10k
Personal
20 ppm
$7k

1997 1998 1999 2000 Year of

Release
 STEPS 2: Evaluate and Prioritize Project
3.1 The Product Planning Process
TECHNOLOGICAL TRAJECTORIES

Technology S-
S-Curves

Digital
Technology
Copier Performance

Light-Lens
Technology

Time
 STEPS 2: Evaluate and Prioritize Project
3.1 The Product Planning Process
PRODUCT PLATFORM

Platforms vs. Derivatives

Research and
Technology
Development

Legend
Platform
Product Platform A Platform B Project
Development Product
Release

Derivative
Product
Development

time
 STEPS 2: Evaluate and Prioritize Project
3.1 The Product Planning Process
PRODUCT PLATFORM
 STEPS 3: Allocate Resources and Plan Timing
3.1 The Product Planning Process
- Resource Allocation

- Project Timing
-called pipeline management
-Timing of product introductions
-Technology readiness
-Market readiness
-Competition

-The Product Plan

-The set of projects approved by the
planning process, sequenced in time
-updated on a periodic basis, perhaps
quarterly or annually, as part of the
firm's strategic planning activity.
 3.1 The Product Planning Process

0%
100%

20%
40%
60%
80%
120%
140%
Mechanical Design
Electrical Engineering
Manufacturing Engineering

Y e ra1
Software/ Firmware
Industrial Design

Mechanical Design
Electrical Engineering
Manufacturing Engineering

Year 2
Software/ Firmware
Industrial Design

Mechanical Design
Aggregate Resource Planning

Electrical Engineering
Manufacturing Engineering
Year 3

Software/ Firmware
STEPS 3: Allocate Resources and Plan Timing

Industrial Design
 STEPS 4: Complete Pre project Planning
3.1 The Product Planning Process
Involves a small, cross-functional team of people, often known as
the core team
rewritten as a product vision statement
more detailed definition of the target market and of the
assumptions under which the development team will operate

1. Brief (one-sentence) description of the product

key customer benefit
2. Key business goals
include goals for time, cost, and quality
3. Target market(s) for the product
identifies the primary market , secondary markets
4. Assumptions and constraints that guide the development effort
to maintain a manageable project scope
5. Stakeholders
begins with the end user , to consider the needs of everyone influenced by
the product.
 STEPS 4: Complete Pre project Planning
3.1 The Product Planning Process
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
Example:
Assumptions and Constraints Lakes
• New product platform
• Digital imaging technology
Project
• Compatible with Centre Ware software Mission
• Input devices manufactured in Canada
• Output devices manufactured in Brazil
Statement
• Image processing engine manufactured in both USA and Europe
Stakeholders
• Purchasers and Users
• Manufacturing Operations
• Service Operations
• Distributors and Resellers
 STEPS 5: Reflect on the result and process
3.1 The Product Planning Process
Questions to assess the quality of both the process and the results

Is the opportunity diverse set of product opportunities?

Does the product plan competitive ?

Does the product plan address important current
opportunities firm?

Are the total resources allocated to product development
sufficient strategy?

Have creative ways of leveraging finite resources been
considered, such as the use of product platforms, joint
ventures, and partnerships with suppliers?

Does the core team accept the challenges of the resulting
mission statement?

Are the elements of the mission statement consistent?

Are the assumptions listed in the mission statement really
necessary or is the project over constrained? Will the
development team have the freedom to develop the best
possible product?

How can the product planning process be improved?
SUMMARY
Product planning - periodic process of product development projects.
Product planning - involves a five
five--step process:

Identify opportunities.
Evaluate and prioritize projects.
Allocate resources and plan timing.
Complete pre-
pre-project planning.
Reflect on the results and the process.

The opportunity funnel collects possibilities for new product platforms,

enhancements, and fundamentally new products from several sources within
and outside the firm.
Potential product development projects - evaluated based on organization's
competitive strategy, technological trajectories and product platform plans.
A balanced portfolio of development projects may include investments in
breakthrough products, new platforms, derivatives, and current product
support.
Aggregate planning – ensures projects have adequate resources to complete
A mission statement for each product development project documents the
product vision, business goal, target markets, critical assumptions, and the
product's stakeholders.
 SEKIAN
TERIMA KASIH