ToolsTools && TrendsTrends inin ProductProduct DevelopmentDevelopment 1 PercentPercent ofof CurrentCurrent SalesSales ContributedContributed byby NewNew ProductsProducts 70% High Tech All Firms Low Tech 60% 50% 40% 30% 20% 10% 0% Bottom Third Middle Third Top Third Most Successful Self Reported Standing in Industry 2 DecayDecay CurveCurve 100 90 80 70 60 1990 1995 50 40 30 20 10 0 Ideas Tested Launched Success 3 DesignDesign ProcessesProcesses 4 NPDNPD ProcessesProcesses inin UseUse inin thethe USUS Other 3rd Gen. Stage Gate Facilitated Stage Gate STAGE GATE PROCESSES 56 % 1 Stage Gate Functional, sequential Informal None 0% 5% 10% 15% 20% 25% 30% 5 ProcessProcess TasksTasks …… ►► ProductProduct LineLine PlanningPlanning Portfolio,Portfolio, CompetitionCompetition ►► StrategyStrategy DevelopmentDevelopment TargetTarget Market,Market, Needs,Needs, AttractivenessAttractiveness ►► Idea/ConceptIdea/Concept GenerationGeneration OpportunitiesOpportunities andand SolutionsSolutions ►► IdeaIdea ScreeningScreening Sort,Sort, Rank,Rank, EliminateEliminate 6 …… ProcessProcess TasksTasks ► BusinessBusiness AnalysisAnalysis Business Case, Development Contract ► DevelopmentDevelopment Convert Concept into Working Product ► TestTest && ValidationValidation Product Use, Market ► ManufacturingManufacturing DevelopmentDevelopment Developing and Piloting Manufacturing Process ► CommercializationCommercialization Launch of Full-Scale Production and Sales 7 TasksTasks IncludedIncluded inin ProcessesProcesses Commercilization Manufacturing Development Test & Validation Development Business Analysis Screening Idea Generation Project Strategy Product Line Planning 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 8 ProjectsProjects CompletingCompleting TasksTasks Commercialization Manufacturing Development Test & Validation Development Business Analysis Screening Idea Generation Project Strategy Product Line Planning 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 9 AverageAverage TimeTime SpentSpent onon TasksTasks Product Line Planning Project Strategy Idea Generation Screening Business Analysis Development Test & Validation Manufacturing Development Commercialization 0 5 10 15 20 25 30 35 weeks 10 PercentagePercentage ofof ProjectsProjects UsingUsing MultifunctionalMultifunctional TeamsTeams New-to-World New-to-Firm Major Revision Cost Reduction Repositioning Minor Improvement 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 11 ToolsTools 12 PerceivedPerceived ImportanceImportance andand UseUse ofof MarketingMarketing ResearchResearch ToolsTools Importance Voice of Customer Degree of Use 5 4 Pre-Test Markets Customer Site Visits 3 2 1 Test Markets 0 Concept Tests Conjoint Analysis Focus Groups Beta Testing 13 PerceivedPerceived ImportanceImportance andand UseUse ofof EngineeringEngineering ToolsTools Importance Rapid Prototyping Degree of Use 5 Virtual Design 4 Concurrent Engineering 3 2 Perfomance Simulation 1 Design for Manufacturing 0 FMEA CAD Value Analysis CAE 14 PerceivedPerceived ImportanceImportance andand UseUse ofof OrganizationOrganization ToolsTools Importance CPM PERT GANNT Degree of Use 5 Leaderless Teams 4 Champions 3 2 Colocated Teams Process Owner 1 0 QFD Team Building Drill Matrix Organization Heavyweight Manager Self Directed Teams 15 PerceivedPerceived Importance:Importance: TopTop 55 ►► VoiceVoice ofof thethe CustomerCustomer (4.2)(4.2) ►► CustomerCustomer SiteSite VisitsVisits (3.9)(3.9) ►► RapidRapid PrototypingPrototyping (3.9)(3.9) ►► ProjectProject SchedulingScheduling ToolsTools (3.9)(3.9) ►► ProductProduct ChampionsChampions (3.9)(3.9) 16 FrequencyFrequency ofof Use:Use: TopTop 55 ►► ProjectProject SchedulingScheduling ToolsTools (3.7)(3.7) ►► VoiceVoice ofof CustomerCustomer (3.6)(3.6) ►► CustomerCustomer SiteSite VisitsVisits (3.5)(3.5) ►► ComputerComputer--AidedAided DesignDesign (3.4)(3.4) ►► MatrixMatrix OrganizationsOrganizations (3.2)(3.2) 17 PerformancePerformance 18 PastPast andand FutureFuture ImpactImpact ofof NewNew ProductsProducts 45.0% 40.0% 35.0% Past 5 Years Next 5 Years 30.0% 25.0% 20.0% 15.0% Percent of Total 10.0% 5.0% 0.0% New Product Sales New Product Profits 19 ProductProduct SuccessSuccess ►►SuccessfulSuccessful ProductsProducts (subjective)(subjective) 55.955.9 %% ►► ProfitableProfitable 51.751.7 %% ►► StillStill onon marketmarket afterafter 55 yearsyears 74.174.1 %% 20 PerformancePerformance CriteriaCriteria Customer Acceptance Financial Performance Technical Performance Repositioning Incremenatal Improvement Next Generation New Product Line New To World 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 21 AverageAverage LengthLength ofof DevelopmentDevelopment ProjectsProjects Incremenatal Improvement Next Generation New Product Line New To World 0 5 10 15 20 25 30 35 40 45 WEEKS 22 FurtherFurther ReadingReading ►► RosenauRosenau etet al.al. ““TheThe PDMAPDMA HandbookHandbook ofof NewNew ProductProduct DevelopmentDevelopment”” DataData SourceSource forfor precedingpreceding slidesslides ►► Cooper,Cooper, RobertRobert G.G. ““WinningWinning atat NewNew ProductsProducts”” StageStage--GateGate ProcessesProcesses 23 ToolsTools ForFor Innovation:Innovation: TheThe DesignDesign StructureStructure MatrixMatrix ThomasThomas A.A. RoemerRoemer SpringSpring 06,06, PD&DPD&D 24 OutlineOutline ► Overview Traditional Project Management Tools and Product Development ► Design Structure Matrix (DSM) Basics How to create Classification ► The Iteration Problem: Increasing Development Speed Sequencing, Partitioning and Simulation ► The Integration Problem: DSM Clustering Organizational Structures & Product Architectures 25 ClassicalClassical ProjectProject ManagementManagement ToolsTools y t ►►GanttGantt ChartsCharts i v i t Ac ►►GraphGraph--based:based: PERT,PERT, CPM,CPM, IDEFIDEF Time 26 CharacteristicsCharacteristics ► ComplexComplex DepictionDepiction ► FocusFocus onon WorkWork FlowsFlows DSM focuses on Information Flows ► IgnoreIgnore IterationsIterations && ReworkRework Test results, Planned design reviews, Design mistakes, Coupled nature of the process ► DecompositionDecomposition && IntegrationIntegration Assume optimal Decomposition & Structure Integration of Tasks not addressed 27 DesignDesign IterationIteration ► Iteration:Iteration: TheThe repetitionrepetition ofof taskstasks duedue toto newnew information.information. Changes in input information (upstream) Update of shared assumptions (concurrent) Discovery of errors (downstream) ► FundamentalFundamental inin ProductProduct developmentdevelopment Often times hidden ► UnderstandingUnderstanding IterationsIterations requiresrequires Visibility of information flows 28 AA GraphGraph andand itsits DSMDSM B E ABCDEFGH I A A X B B X A C I CXC F D D X E E FX F X D G G G HXX H IXI H 29 CreatingCreating aa DSMDSM ► DesignDesign manualsmanuals ► ProcessProcess sheetssheets ► StructuredStructured expertexpert interviewsinterviews Interview engineers and managers Determine list of tasks or parameters Ask about inputs, outputs, strengths of interaction, etc Enter marks in matrix Check with engineers and managers ► QuestionnairesQuestionnaires 30 FourFour TypesTypes ofof DSMsDSMs Iteration Activity based DSM Sequencing Parameter based DSM Partitioning Simulation Integration Team based DSM Clustering Product Architecture DSM 31 IterationIteration FocusedFocused ToolsTools Concepts,Concepts, Examples,Examples, SolutionSolution ApproachesApproaches 32 SequencingSequencing TasksTasks inin ProjectsProjects Possible Relationships between Tasks A A A B B B Dependent Independent Interdependent (Series) (Parallel) (Coupled) 33 DSM:DSM: InformationInformation ExchangeExchange ModelModel Interpretation: ABCDEFGHIJKL ► Rows: Required Information A • D needs input from E, F & L. B • ► Columns: Provided Information C • D • B transfers info to C,F,G,J & K. E • Note: F • ► Information flows are easier to G • capture than work flows. H • I • ► Inputs are easier to capture than J • outputs. K • L • 34 DSM:DSM: PartitionedPartitioned oror SequencedSequenced BGCDA KLFEHJ I B • Series Task C • Sequence A • Parallel K • L • Coupled J • F • I • E • D • H • G • 35 SequencingSequencing AlgorithmAlgorithm ► Step 1: Schedule tasks with empty rows first ► Step 2: Delete the row and column for that task ► Step 3: Repeat (Go to step 1) ► Step 4: Schedule tasks with empty columns last ► Step 5: Delete the row and column for that task ► Step 6: Repeat (Go to step 4) ► Step 7: All the tasks that are left unscheduled are coupled. Group them into blocks around the diagonal 36 Example:Example: BrakeBrake SystemSystem DesignDesign 12345678910111213 Customer_Requirements 1 1 Wheel Torque 2 2 X Pedal Mech. Advantage 3 X 3 XX X X X System_Level_Parameters 4 X 4 Rotor Diameter 5 XXXX5 XX XX X ABS Modular Display 6 X 6 X Front_Lining_Coef._of_Friction 7 XXX 7 XX X Piston-Rear Size 8 XX 8 X Caliper Compliance 9 XX 9 XX Piston- Front Size 10 XX X10 Rear Lining Coef of Friction 11 XXX X X11 X Booster - Max. Stroke 12 12 X Booster Reaction Ratio 13 XXXX XXXXXX13 37 PartitionedPartitioned DSM:DSM: BrakeBrake DesignDesign 1 4 210831171351296 Customer_Requirements 1 1 System_Level_Parameters 4 X 4 Wheel Torque 2 X 2 Piston- Front Size 10 XX10 X Piston-Rear Size 8 XXX8 Pedal Mech. Advantage 3 XX XX3 XX Rear Lining Coef of Friction 11 XXXX11 XX Front_Lining_Coef._of_Friction 7 XXXX7 XX Booster Reaction Ratio 13 XXXXXXX13 X Rotor Diameter 5 XXXXXXXXX5 Booster - Max. Stroke 12 X 12 Caliper Compliance 9 XXX X 9 ABS Modular Display 6 X 6 38 SemiconductorSemiconductor DesignDesign ExampleExample SEE SDMFDC