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Chapter 2 What are the key product development activities that must be included in every project? What project milestones and review gates can be used to manage the overall development process by phases? Is there a standard development process that will work for everyone? What role to experts from different functional areas play in the development process? Sequence of steps that an enterprise employs to conceive, design, and commercialize a product. Usefulness of a well-defined product development process ◦ ◦ ◦ ◦ ◦ Quality assurance Coordination Planning Management Improvement 0 1 2 3 4 5 = = = = = = Planning Concept development System level design Detail design Testing and refinement Production ramp-up Used for market-pull products ◦ Identify market opportunity and use whatever technologies are available to satisfy need Identifying customer needs Establishing target specifications Concept generation Concept selection Concept testing Setting final specifications Project planning Economic analysis Benchmarking of competitive products Modeling and prototyping Technology –push products ◦ Start with proprietary technology and identify appropriate market to apply the technology Platform built around preexisting technological subsystem ◦ Intel chipset, iPhone operating system, Gillette razor blade Process-Intensive Products ◦ Food, chemicals, paper ◦ Production process constrains the product properties Customized products ◦ light variations of standard configurations High-Risk Products ◦ technical risk – will product function properly? ◦ market risk – will customer like the product? ◦ budget and schedule risk – can team complete product on time and within budget? Quick Build Products ◦ software and electronics – design-build-test cycle is repeated several times ◦ rapid iteration = spiral product development process Complex systems ◦ larger scale products such as automobiles and planes ◦ concept development phase considers the architecture of the entire system ◦ system is decomposed into subsystems and components ◦ detail design is a parallel process in which many teams operate separately. Organizations are formed by establishing links among individuals. ◦ reporting relationships ◦ financial arrangements ◦ physical layout Organizational links may be aligned with functions, projects, or both 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? Exhibit 2-9 Access to information about regional markets Availability of technical expertise Location of manufacturing facilities and suppliers Cost saving through lower wages Outsourcing to increase product development capacity Warning – no shortcuts, no magic solution