School of Business Yonsei University. Product Design. Sung Joo Bae. Assistant Professor Operations and Technology Management

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1 School of Business Yonsei University Product Design Sung Joo Bae Assistant Professor Operations and Technology Management

2 Fuzzy Front End of Innovation Concept Development System-level Design Detail Design Testing & Refinement Production Ramp-up How do we develop new ideas for products?

3 IDEO World s largest and most successful design firm Worked with many Korean firms as well (Samsung, LG, etc.) Well known for their system of innovation

4 Case Study: IDEO Product Development

5 How would you characterize the following elements at IDEO? Process Management Organization Culture

6 VIDEO: Deep Dive

7 Process at IDEO Prototyping 3R: Rough, Rapid, & Right Intense brainstorming Stay focused on the topic Encourage wild ideas Defer judgment to avoid interrupting the flow of ideas Build on ideas of others Only one conversation at a time (esp. for introverts) Be vidual

8 Process at IDEO Structure/Methodology Phase 0: Understand & Observe Understand client s business and find the needs Phase 1: Visualize & Realize Build models with overall product concept Phase 2: Evaluate & Refining Enhance the prototype Focus shifting from human factors to engineering issues Shift from functional model to real model Phase 3: Detailed Engineering Fully functional model Phase 4: Manufacturing Liaison

9 Organization at IDEO Small units (team-oriented) Flat hierarchy Peer pressure Low turnover Diversity in teams

10 Management at IDEO Low key Create the stage upon which designers can play the leading role Lead by example Connecting role with customers Knowledge management (Tech Box)

11 Culture at IDEO Failure & trust Child-like playfulness Attracts creative people Sharing & respect Comfortable with confusion, incomplete information, and paradox/ambiguity Simple rules Fail often to succeed sooner Stay focused Enlightened trail and error

13 Creative Design? Choices from 2010

14 Creative Design? Choices from 2010?

15 Creative Design? Choices from 2009

16 Creative Design? Choices from 2011 Fall (MBA)

17 What aspect of product is valued in your selection? Which product (svc/biz model etc. ) did you choose? Could you describe why you chose that specific product? Aesthetic appeal: color, shape Ease of use Functionality Uniqueness Environmentally friendly Longevity Symbolic status.

18 Recent Changes in Korea Development Focus Engineering oriented Design Oriented Integrated Thinking Product Focus Function Aesthetics (Form) Concepts (e.g. eco-) Product Strategy Single product Product groups Platform (ecosystem)

19 Design User Use Environment Form Function

Credits - Photo / Donna Coveney Multifunction In-Dorm Automation System" (MIDAS)

22 Freshman Zack Anderson can check the weather at the monitor by the sink in his fully automated dorm room. Credits - Photo / Donna Coveney Multifunction In-Dorm Automation System" (MIDAS) Freshman R.J. Ryan hits the 'emergency' button in his automatic dorm room on East Campus. The button activates 'party mode. (relax mode, sleep mode also possible)

23 VIDEO: MIDAS at work &feature=player_embedded

24 The Relationship between Science & Technology a. Assimilation of scientific results into technology b. Recognized need for a device, technique, or scientific understanding c. Technology adoption for use d. Technological need for understanding of physical phenomena and responses

Attributes of Five Development Projects Annual production volume (units/year) Stanley Tools Jobmaster Screwdriver Rollerblade Inline Skate HP Deskjet Printer

130M Part numbers (parts) 3 35 200 10,000 130,000 Development time (years) Internal development team (peak size) External development team (peak size)

25 Attributes of Five Development Projects Annual production volume (units/year) Stanley Tools Jobmaster Screwdriver Rollerblade Inline Skate HP Deskjet Printer Volkswagen New Beetle Automobile Boeing 777 Airplane 100, ,000 4 million 100, Sales lifetime (years) Price (US$/unit) , M Part numbers (parts) , ,000 Development time (years) Internal development team (peak size) External development team (peak size) Development cost (US$) Production investment , , , ,000 50M 400M 3B 150,000 1M 25M 500M 3B (Source: Ulrich & Eppinger)

26 New Product Success Factors Developing a superior, differentiated product with unique benefits and superior value to the customers Having a strong market orientation throughout the development process Getting sharp, early product definition before development begins Quality execution (completeness, consistency, and proficiency) of activities in the development process Having the correct organizational structure (multifunctional, empowered teams) Providing the sharp project selection decisions Top management: specifying new product strategy and providing needed resources Speed to market (Cooper, 1996)

27 New Product Development Process Design Activities: Planning Concept Development System-level Design Detail Design Testing & Refinement Production Ramp-up Consider product platform and architecture Assess new technologies Investigate feasibility of product concepts Develop industrial design concepts Build and test experimental prototypes Generate alternative product architectures Define major subsystems and interfaces Refine industrial design Define part geometry Choose materials Assign tolerances Complete industrial control documentation Reliability testing Life testing Performance testing Obtain regulatory approvals Implement design changes Evaluate early production output

28 New Product Development Process Marketing Activities: Planning Concept Development System-level Design Detail Design Testing & Refinement Production Ramp-up Articulate market opportunity Define market segments Collect customer needs Identify lead users Identify competitive products Develop plan for product options and extended product family Set target sales price points Develop marketing plan Develop promotion and launch materials Facilitate field testing Place early production with key customers (Source: Ulrich & Eppinger)

29 New Product Development Process Manufacturing Activities: Planning Concept Development System-level Design Detail Design Testing & Refinement Production Ramp-up Identify production constraints Estimate manufacturing cost Assess production feasibility Perform make-buy analysis Define final assembly scheme Set target costs Define piecepart production processes Design tooling Define quality assurance processes Facilitate supplier rampup Train workforce Refine assembly processes Begin operation of production system (Source: Ulrich & Eppinger)

30 New Product Development Process Planning Concept Development System-level Design Detail Design Testing & Refinement Production Ramp-up Product planning is an activity that considers the portfolio of projects that an organization might pursue and determines what subset of these projects will be pursued over what time period Which product development projects will be undertaken? How do the various projects relate to each other as a portfolio Timing and sequence of the projects? (Source: Ulrich & Eppinger)

31 New Product Development Process Planning Concept Development System-level Design Detail Design Testing & Refinement Production Ramp-up Identify Customer Needs Establish Target Specification Generate Product Concepts Select Product Concepts Test Product Concepts Set Final Specification Plan Downstream Development Benchmark Competitive Products Perform Economic Analysis Build and Test Models and Prototypes 1. Define the scope 2. Gather raw data from customers (interviews, focus groups, observation) 3. Interpret the raw data in terms of customer needs 4. Organize the needs into a hierarchy of primary, secondary, and tertiary needs 5. Establish the relative importance of the needs 6. Reflect on the results and the process (Source: Ulrich & Eppinger)

32 Defining the scope (Mission Statement) Mission Statement: Screwdriver Project Product Description A hand-held, power assisted device for installing threaded fasteners Key Business Goals Product introduced in fourth quarter of % gross margin Primary Markets 10% share of cordless screwdriver market by 2008 Do-it-yourself consumer Secondary Markets Assumptions Stakeholders Casual consumer Light-duty professional Hand-held Power-assisted Rechargeable battery User, retailer, sales force, service center, production, legal department (Source: Ulrich & Eppinger)

33 Raw Data from the Customers (Source: MIT s Product Design and Development Course Material)

34 Number of Analysts (Source: MIT s Product Design and Development Course Material)

35 Customer Data into Interpreted Needs (Source: Ulrich & Eppinger)

36 Some Guidelines for Need Interpretation (Source: Ulrich & Eppinger)

37 Exercises: Need Translation (Source: MIT s Product Design and Development Course Material)

38 Exercises: Need Translation (Source: MIT s Product Design and Development Course Material)

39 Hierarchical List of Needs (Source: Ulrich & Eppinger)

40 New Product Development Process Planning Concept Development System-level Design Detail Design Testing & Refinement Production Ramp-up Identify Customer Needs Establish Target Specification Generate Product Concepts Select Product Concepts Test Product Concepts Set Final Specification Plan Downstream Development What are specifications? - Customer needs are expressed in the language of the customers. - Specifications are the language of the manufacturer/service provider - Measurable detail of what the product has to do - Product requirements (Source: Ulrich & Eppinger)

41 Target Specification For your class projects, measurable metric may not exist. In this case, just describe the specification of the final product/service/business model in terms of feature requirements (Source: Ulrich & Eppinger)

42 New Product Development Process Planning Concept Development System-level Design Detail Design Testing & Refinement Production Ramp-up Identify Customer Needs Establish Target Specification Generate Product Concepts Select Product Concepts Test Product Concepts Set Final Specification Plan Downstream Development What are specifications? - Customer needs are expressed in the language of the customers. - Specifications are the language of the manufacturer/service provider - Measurable detail of what the product has to do - Product requirements (Source: Ulrich & Eppinger)

43 Five-step Concept Generation Method (Source: Ulrich & Eppinger)

44 Example of Problem Decomposition (Source: Ulrich & Eppinger)

45 Five-step Concept Generation Method (Source: Ulrich & Eppinger)

46 Solutions to Sub-Problems (Source: Ulrich & Eppinger)

47 Concept Classification Tree Division of the entire space of solutions into several distinct classes Identification of independent approaches to the problem Pruning of less promising branches Refinement of the problem decomposition for a particular branch (Source: Ulrich & Eppinger)

48 Concept Combination Table Concept Combination Table: A way to consider combinations of solution fragments systematically < Concept combination table for the hand-held nailer & one possible combination > (Source: Ulrich & Eppinger)

49 Selection of Product Concepts The goal of concept selection is NOT to select the best concept The goal of the concept selection is to DEVELOP the best concept Combine and refine the concepts to develop better ones Selection Methods External decision Intuition Multivoting Pros and cons Prototype and test Decision matrices (Source: Ulrich & Eppinger)

50 Concept Generation, Selection, & Testing (Source: Ulrich & Eppinger)

51 Concept Screening & Scoring Concept Screening + Better than 0 Same as - Worse than Concept Scoring (Source: Ulrich & Eppinger)

52 Key Points Capture what not how Try to meet customers in user environment Collect visual, verbal, or textual data Props will stimulate customer responses Interviews are more efficient than focus groups Interview stakeholders and lead users, not just average users if possible Look for latent needs (Source: Ulrich & Eppinger)

School of Business Yonsei University. Product Innovation. Sung Joo Bae. Assistant Professor Operations and Technology Management

School of Business Yonsei University Product Innovation Sung Joo Bae Assistant Professor Operations and Technology Management What we will do today Product Innovation Bang & Olufsen Samsung s Approach