1. Chapter 42 Special Design Tools

2. Objectives Describe Porter’s 5 forces analysis used in strategic design and planning. Describe the theory of inventive problem solving (TRIZ).

3. Strategic Planning Strategic plans look at 3 to 5 year horizon: 1. Study the current state 2. Envision the ideal future state 3. Plan the path Senior management must be actively engaged in the process.

4. Porter’s Five Forces Porter’s 5 forces that affect the success of an enterprise: 1. The bargaining power of customers – to drive prices down. 2. The bargaining power of suppliers – to drive prices up. 3. The threat of new entrants – competitors can enter the market and drive prices down. 4. The threat of substitute products – products and services that can be substituted for your own 5. The intensity of competitive rivalry – strength of competition in your industry.

5. Portfolio Architecting Portfolio architecting is the process of determining which products to produce. The strategic advantage is that a product family will have common modules that will decrease costs. Form a matrix of products (fig 42.1, page 426) Study which products to build.

6. Hoshin Planning Steps: 1. Statement of organizational goals. 2. Strategies that support those goals. 3. Tactics that support strategy. 4. Metrics that measure progress towards strategy. 5. Assignment of accountability for strategies and tactics. 6. Regular reviews to assess actual performance. 7. Recovery plan or adjustment of strategy and tactics as necessary.

7. Tactical Planning Tactical Planning covers 1 to 3 years. They are designed to support strategic plans.

8. TRIZ TRIZ is an acronym for a Russian word meaning theory of inventive problem solving. 1. Contradiction – Solving the problem consists of resolving the contradiction – example: better product is more expensive. 2. Resources – analysis of items, information, energy, or material properties to determine what can be useful in resolving the contradiction. 3. Ideality – The ideal solution is defined. 4. Patterns of Evolution – Integrating a device or idea with others to form a new device or idea. 5. Inventive Principles – Review of worldwide patents.

9. Axiomatic Design 1. Customer Domain – list the features customers want (concept designers). 2. Functional Domain – list the way a product must work to meet the customer domain requirements (product designers). 3. Physical Domain – List design that satisfies functional domain (process designers). 4. Process Domain – list the processes that satisfy the physical domian.

10. Pugh Analysis Pugh Analysis is a decision matrix when a single option must be selected from several options (fig 42.2, page 429). Used in design of products and processes. Assign each criterion a weight (fig 42.3). Multiply criteria weights by each cell value and calculate common totals (fig 42.5, page 430). This will generate discussion and debate regarding which option is most appropriate.

11. Summary Strategic plans look at 3 to 5 year horizon. Porter’s 5 forces that affect the success of an enterprise. Portfolio architecting is the process of determining which products to produce. Tactical Planning covers 1 to 3 years. TRIZ is an acronym for a Russian word meaning theory of inventive problem solving. Pugh Analysis is a decision matrix when a single option must be selected from several options.Used in design of products and processes.

12. Home Work 1. How long are strategic plans and what are the 3 steps of strategic planning? 2. What are Porter’s 5 forces that affect the success of an enterprise? 3. How long are tactical plans and why are they necessary? 4. What is a Pugh analysis and where is it used?