Product Development. September 27, 2007 Product Design and Development - Chapter 7. September 27, 2007 Product Design and Development - Chapter 7

Transcription

1 Product Development Concept Selection 1 2 Product and Services 1

2 Concept Selection Example: Reusable Syringe 3 Choosing a concept All teams use some method for choosing a concept External decisions: Concepts are turned over to the customer, client, or some other external entity for selection. Product Champion: An influential member of the product development team chooses a concept based on personal preferences. 4 Product and Services 2

3 Choosing a concept (cont) Institution: The concept is chosen on the basis of its feel. Explicit trade-off criteria are not used. Concept just seems better. Multivoting: Each member of the team votes for several concepts. The concept with the most votes wins. 5 Choosing a concept (cont) Pros and cons: The team lists the strengths and weaknesses of each concept and makes a choice based upon group opinion. Prototype and test: The organization builds and tests prototypes of each concept, making a selection based upon test data. 6 Product and Services 3

4 Choosing a concept (cont) Decision matrices: The team rates each concept against prespecified selection criteria, which may be weighted. 7 Concept selection for the reusable syringe There were initially seven distinct concepts for the reusable syringe How can we choose the best? 8 Product and Services 4

5 9 10 Product and Services 5

6 11 12 Product and Services 6

7 Concept selection: Structured method A customer-focused product: Because concepts are explicitly evaluated against customer-oriented criteria, the selected concept is likely to be focused on the customer. 13 A competitive design: By benchmarking concepts with respect to existing designs, designers push the design to match or exceed their competitors' performance along key dimensions. 14 Product and Services 7

8 Better product-process coordination: Explicit product evaluation with respect to manufacturing criteria improves manufacturability and helps match the product to the firm s process capabilities. 15 Effective group decision-making: Within the development team, organizational philosophy and guidelines, willingness of members to participate, and team member s experience may constrain concept selection. A structured method encourages decision-making based on objective criteria and minimizes the likelihood that arbitrary or personal factors are allowed to influence the product concept. 16 Product and Services 8

9 Documenting the decision-making process: A structured method results in a readily understood archive of the rationale behind concept decisions. This record is useful for assimilating new team members and for quickly assessing the impact of changes in customer needs or in the available alternatives. 17 Overview of methodology The concept selection process is based on two methodologies: Concept Screening Concept Scoring Concept screening is just for narrowing the number of concepts For a small number of concepts, go directly to concept scoring 18 Product and Services 9

10 Concept Development Funnel CONCEPT SELECTION PROCESS concept generation concept screening concept scoring 19 concept testing Concept Screening Step 1: Prepare the selection matrix Step 2: Rate the concepts Step 3: Rank the concepts Step 4: Combine and improve the concepts Step 5: Select one or more concepts Step 6: Reflect on results and process 20 Product and Services 10

11 Example: Concept Screening CONCEPT VARIANTS 21 SELECTION CRITERIA A B C D E F G REF. Ease of Handling Ease of Use Number Readability Dose Metering Load Handling Manufacturing Ease Portability PLUSES SAMES MINUSES NET RANK CONTINUE? Yes Yes No No Yes No Yes Prepare the selection matrix Use a reference concept or benchmark Reference is generally either an industry standard or a straight-forward concept with which the team members are very familiar. Rate the concepts Assign relative scores better than (+) same as (0) worse than (-) 22 Product and Services 11

12 Rank the concepts The sum of all the better than same as and worse than Combine and improve the concepts Is there a concept that is generally good but degraded by one bad feature? Can a minor modification improve the overall concept while remaining distinct from the other concepts? 23 Are there two concepts which can be combined to preserve the better than qualities while annulling the worse than qualities? 24 Product and Services 12

13 25 Remember The goal of concept selection is not to select the best concept. The goal of concept selection is to develop the best concept. So remember to combine and refine the concepts to develop better ones! 26 Product and Services 13

14 Concept Scoring Step 1: Prepare the selection matrix Step 2: Rate concepts Step 3: Rank concepts Step 4: Combine and improve concepts Step 5: Select one or more concepts Step 6: Reflect on results and process 27 Example: Concept Scoring Concepts A DF E G+ Master Cylinder Lever Stop Swash Ring Dial Screw+ Selection Criteria Weight Rating Weighted Score Rating Weighted Score Rating Weighted Score Rating Weighted Score Ease of Handling 5% Ease of Use 15% Readability of Settings 10% Dose Metering Accuracy 25% Durability 15% Ease of Manufacture 20% Portability 10% Total Score Rank Continue? No Develop No No 28 Product and Services 14

15 ... but remember Subjective criteria may be important Keep an open mind on improvements Decide where to include costing Select elements of aggregate concepts Apply concept selection throughout the process 29 but remember Beware of best "average" product. Perform concept selection for each different customer group and compare results. Check sensitivity of selection to weightings and ratings. Consider using detailed requirements in final stages of selection. Note features applicable to other concepts. 30 Product and Services 15

16 Product Development Concept Testing Product and Services 16

17 Concept Testing: What is it? Concept testing is: closely related to concept selection different from concept selection in that it is based on data gathered directly from potential customers and relies to a lesser degree on judgments made by the development team. concept generation concept screening concept scoring concept testin 33 Concept Testing: What for? Go/no-go decisions What market to be in? Selecting among alternative concepts Confirming concept selection decision Benchmarking Soliciting improvement ideas Forecasting demand Ready to launch? 34 Product and Services 17

18 A seven-step method Step 1: Step 2: Step 3: Step 4: Step 5: Step 6: Step 7: Define purpose Choose a survey population Choose a survey format Communicate the concept Measure customer response Interpret results Reflect on results and process 35 Define purpose of concept test Write down the questions the team wishes to answer with the test: Which of several alternative concepts should be pursued? How can the concept be improved to better meet customer needs? Approximately how many units are likely to be sold? Should development be continued?.. 36 Product and Services 18

19 Choose a survey population The underlying assumption is that the survey population reflects the target market. Ex.: empower scooter has two main markets: urban consumer college students 37 Choose a survey format Face-to-face interaction Stopping people at the street Telephone May be targeted to specific individuals Postal mail Somewhat slower than other methods, often poor response 38 Product and Services 19

20 Similar to postal mail except respondents seem slightly more likely to reply than via postal mail Internet A team may create a Web site for virtual concept testing 39 Document the concept Written or verbal description Sketch Photos and renderings Storyboards Video Simulation Interactive multimedia Physical appearance models Working prototypes 40 Product and Services 20

21 Verbal description The product is a lightweight electric scooter that can be easily folded and taken with you inside a building or on public transportation. The scooter weighs about 25 pounds. It travels at speeds of up to 15 miles per hour and can go about 12 miles on a single charge. The scooter can be recharged in about two hours from a standard electric outlet. The scooter is easy to ride and has simple controls just an accelerator button and a brake. 41 Price Include price in concept description? 42 Product and Services 21

22 Measure customer response Definitely would buy Probably would buy Might or might not buy Probably would not buy Definitely would not buy 43 Concept Testing Example: Electric Scooter 44 Product and Services 22

23 Sketch 45 Rendering 46 Product and Services 23

24 3D Solid CAD model 47 Storyboard 48 Product and Services 24

25 Resemblance to marketing Appearance model 50 Product and Services 25

26 Working Prototype 51 Beta Prototype 52 Product and Services 26

27 Production Product 53 empower s Market Decision: Factory Transportation 54 Product and Services 27

28 Sources of Forecast Error Word-of-Mouth Effects Fidelity of Concept Description Pricing Level of Promotion Competition 55 Discussion Why do respondents typically overestimate purchase intent? Might they ever underestimate intent? How to use price in surveys? How much does the way the concept is communicated matter? When shouldn t a prototype model be shown? How do you increase sales? Price: to include or not to include? What is the importance of quality of the description? 56 Product and Services 28

29 Discussion (cont) Is there a situation where the team should just go for it without any formal concept test? 57 Product and Services 29