1. Development Processes and Organizations
Chapter 2

2. Questions
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?

3. The Product 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

4. Six Phases of Generic Product Development
0 = Planning
1 = Concept development
2 = System level design
3 = Detail design
4 = Testing and refinement
5 = Production ramp-up
Used for market-pull products
Identify market opportunity and use whatever technologies are available to satisfy need

5. Concept Development: The Front End Process
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

6. Adapting the Generic Product Development Process
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

7. Adapting the Generic Product Development Process
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

8. Adapting the Generic 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.

9. Product Development Process Flows

10. Tyco Product Development Process

11. Exhibit 2-7

12. Product Development Organizations
Organizations are formed by establishing links among individuals.
reporting relationships
financial arrangements
physical layout
Organizational links may be aligned with functions, projects, or both

14. Choosing an Organizational Structure – Functional, Project, Matrix
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

15. Distributed Product Development Teams – Virtual Teams
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