Product Design

and Development
Fifth Edition

Karl T. Ulrich
University of Pennsylvania

Steven D. Eppinger
Massachusetts Institute of Technology

I McGraw-Hill
I Irwin
Contents
About the Authors iv Product Development Organizations 25
Preface v Organizations Are Formed by Establishing Links
Acknowledgments vii among Individuals 25
Organizational Links May Be Aligned with Functions,
Projects, or Both 25
Chapter 1 Choosing an Organizational Structure 28
Introduction 1 Distributed Product Development Teams 28
Characteristics of Successful Product The Tyco Product Development Organization 30
Development 2 Summary 30
References and Bibliography 31
Who Designs and Develops Products? 3
Exercises 32
Duration and Cost of Product Development 5
Thought Questions 32
The Challenges of Product Development 6
Approach of This Book 6 Chapter 3
• Structured Methods 7 Opportunity Identification 33
Industrial Examples 7
Organizational Realities 7 What Is an Opportunity? 34
Roadmap of the Book 8 Types of Opportunities 34
References and Bibliography 10 Tournament Structure of Opportunity
Exercises 10 Identification 36
Thought Question 10 Effective Opportunity Tournaments 37
Opportunity Identification Process 39
Step 1: Establish a Charter 39
Chapter 2
Step 2: Generate and Sense Many
Development Processes Opportunities 40
and Organizations 11 Techniques for Generating Opportunities 40
The Product Development Process 12 Step 3: Screen Opportunities 46
Concept Development: The Front-End Step 4: Develop Promising Opportunities 47
Process 16 Step 5: Select Exceptional Opportunities 47
Adapting the Generic Product Development Step 6: Reflect on the Results and the Process 49
Process 18 Summary 50
Technology-Push Products 18 References and Bibliography 50
Platform Products 20 Exercises 51
Process-Intensive Products 20 Thought Questions 51
Customized Products 20 Chapter 4
High-Risk Products 21
Product Planning 53
Quick-Build Products 21
Complex Systems 21 The Product Planning Process 54
Product Development Process Flows 22 Four Types of Product Development Projects 55
The Tyco Product Development Process 23 The Process 56
 Contents xi

Step 1: Identify Opportunities 57 Establishing Target Specifications 94

Step 2: Evaluate and Prioritize Projects 57 Step 1: Prepare the List of Metrics 95
Competitive Strategy 58 Step 2: Collect Competitive Benchmarking
Market Segmentation 58 Information 99
Technological Trajectories 59 Step 3: Set Ideal and Marginally Acceptable Target
Product Platform Planning 60 Values 99
Evaluating Fundamentally New Product Step 4: Reflect on the Results
Opportunities 61 and the Process 103
Balancing the Portfolio 63 Setting the Final Specifications 103
Step 3: Allocate Resources and Plan Timing 64 Step I: Develop Technical Models
Resource Allocation 64 of the Product 105
Project Timing 66 Step 2: Develop a Cost Model of the Product 106
The Product Plan 66 Step 3: Refine the Specifications, Making Trade-Offs
Step 4: Complete Pre-Project Planning 66 Where Necessary 108
Mission Statements 67 Step 4: Flow Down the Specifications as
Assumptions and Constraints 68 Appropriate 109
Staffing and Other Pre-Project Planning Step 5: Reflect on the Results
Activities 69 and the Process 111
Step 5: Reflect on the Results and the Process 69 Summary 111
Summary 70 References and Bibliography 112
References and Bibliography 70 Exercises 113
Exercises 72 Thought Questions 113
Thought Questions 72 Appendix
Target Costing 114
Chapter 5
Identifying Customer Needs 73 Chapter 7
Concept Generation 117
Step 1: Gather Raw Data from Customers 76
Choosing Customers 78 The Activity of Concept Generation 118
The Art of Eliciting Customer Needs Data 79 Structured Approaches Reduce the Likelihood
Documenting Interactions with Customers 80 of Costly Problems 119
Step 2: Interpret Raw Data in Terms of Customer A Five-Step Method 119
Needs 81 Step 1: Clarify the Problem 120
Step 3: Organize the Needs into a Hierarchy 83 Decompose a Complex Problem into Simpler
Step 4: Establish the Relative Importance Subproblems 121
of the Needs 86 Focus Initial Efforts on the Critical
Step 5: Reflect on the Results and the Process 87 Subproblems 123
Summary 88 Step 2: Search Externally 124
References and Bibliography 88 Interview Lead Users 124
Exercises 89 Consult Experts 125
Thought Questions 90 Search Patents 125
Search Published Literature 126
Chapter 6 Benchmark Related Products 127
Step 3: Search Internally 127
Product Specifications 91
Both Individual and Group Sessions Can
What Are Specifications? 92 Be Useful 128
When Are Specifications Established? 93 Hints for Generating Solution Concepts 129
xii Contents

Step 4: Explore Systematically 130 Chapter 9

Concept Classification Tree 132 Concept Testing 165
Concept Combination Table 134
Managing the Exploration Process 137 Step 1: Define the Purpose of the Concept Test 167
Step 5: Reflect on the Solutions and the Process 139 Step 2: Choose a Survey Population 167
Summary 140 Step 3: Choose a Survey Format 168
References and Bibliography 141 Step 4: Communicate the Concept 169
Exercises 142 Matching the Survey Format with the Means of
Thought Questions 142 Communicating the Concept 173
Issues in Communicating the Concept 173
Step 5: Measure Customer Response 175
Chapter 8 Step 6: Interpret the Results 175
Concept Selection 143 Step 7: Reflect on the Results
and the Process 178
Concept Selection Is an Integral Part
Summary 179
of the Product Development Process 144 References and Bibliography 179
All Teams Use Some Method for Choosing a Exercises 180
Concept 145 Thought Questions 180
A Structured Method Offers Appendix
Several Benefits 148 Estimating Market Sizes 181
Overview of Methodology 149
Concept Screening 150 Chapter 10
Step 1: Prepare the Selection Matrix 150
Product Architecture 183
Step 2: Rate the Concepts 151
Step 3: Rank the Concepts 152 What Is Product Architecture? 184
Step 4: Combine and Improve the Concepts 152 Types of Modularity 186
Step 5: Select One or More Concepts 152 When Is the Product Architecture Defined? 187
Step 6: Reflect on the Results Implications of the Architecture 187
and the Process 153 Product Change 187
Concept Scoring 154 ,' Product Variety 188
Step 1: Prepare the Selection Matrix 154 Component Standardization 189
Step 2: Rate the Concepts 155 Product Performance 189
Step 3: Rank the Concepts 156 Manufacturability 190
Step 4: Combine and Improve the Concepts 156 Product Development Management 191
Step 5: Select One or More Concepts 156 Establishing the Architecture 191
Step 6: Reflect on the Results Step 1: Create a Schematic of the Product 192
and the Process 157 Step 2: Cluster the Elements of the Schematic 193
Caveats 157 Step 3: Create a Rough Geometric Layout 195
Summary 159 Step 4: Identify the Fundamental and Incidental
References and Bibliography 159 Interactions 196
Exercises 160 Delayed Differentiation 197
Thought Questions 16i Platform Planning 200
Appendix A Differentiation Plan 200
Concept-Screening Matrix Example 162 Commonality Plan 201
Appendix B Managing the Trade-Off between Differentiation
Concept-Scoring Matrix Example 163 and Commonality 202
 Contents xiii

Related System-Level Design Issues 202 Chapter 12

Defining Secondary Systems 203 Design for Environment 229
Establishing the Architecture of the Chunks 203
Creating Detached Interface Specifications 204 What Is Design for Environment? 231
Summary 204 Two Life Cycles 232
References and Bibliography 205 Environmental Impacts 233
Exercises 206 History of Design for Environment 234
Thought Questions 206 Herman Miller's Journey toward Design for
Environment 234
The Design for Environment Process 235
Chapter 11 Step 1: Set the DFE Agenda: Drivers, Goals,
Industrial Design 207 and Team 236
Identify the Internal and External Drivers ofDFE 236
What Is Industrial Design? 209
Set the DFE Goals 237
Assessing the Need for Industrial Design 211
Set Up the DFE Team 23 7
Expenditures for Industrial Design 211
Step 2: Identify Potential Environmental
How Important Is Industrial Design to a Product? 211
Impacts 239
Ergonomic Needs 212
Step 3: Select DFE Guidelines 240
Aesthetic Needs 213
Step 4: Apply the DFE Guidelines to the Initial
The Impact of Industrial Design 213 Product Design 242
Is Industrial Design Worth the Investment? 213
Step 5: Assess the Environmental Impacts 243
How Does Industrial Design Establish a Corporate
Compare the Environmental Impacts to DFE Goals 244
Identity? 216
Step 6: Refine the Product Design to Reduce or
The Industrial Design Process 217
Eliminate the Environmental Impacts 244
1. Investigation of Customer Needs 217
Step 7: Reflect on the DFE Process and
2. Conceptualization 217
Results 245
3. Preliminary Refinement 218
Summary 247
4. Further Refinement and Final Concept
References and Bibliography 247
Selection 218
Exercises 248.
5. Control Drawings or Models 220 /
Thought Questions 249
6. Coordination with Engineering, Manufacturing,
Appendix
and External Vendors 220
Design for Environment Guidelines 250
The Impact of Computer-Based Tools on the ID
Process 220 Chapter 13
Management of the Industrial Design Process 221
Design for Manufacturing 253
Timing ofIndustrial Design Involvement 222
Assessing the Quality of Industrial Design 224 Design for Manufacturing Defined 255
1. Quality of the User Interface 224 DFM Requires a Cross-Functional Team 255
2. Emotional Appeal 224 DFMIs Performed throughout the Development
3. Ability to Maintain and Repair the Product 224 Process 255
4. Appropriate Use of Resources 226 Overview of the DFM Process 256
5. Product Differentiation 226 Step 1: Estimate the Manufacturing Costs 256
Summary 226 Transportation Costs 259
References and Bibliography 227 Fixed Costs versus Variable Costs 259
Exercises 228 The Bill of Materials 260
Thought Questions 228 Estimating the Costs of Standard Components 261
xiv Contents

Estimating the Costs of Custom Components 261 Principles of Prototyping 297

Estimating the Cost of Assembly 262 Analytical Prototypes Are Generally More Flexible
Estimating the Overhead Costs 263 Than Physical Prototypes 297
Step 2: Reduce the Costs of Components 264 Physical Prototypes Are Required to Detect
Understand the Process Constraints and Cost Unanticipated Phenomena 297
Drivers 264 A Prototype May Reduce the Risk of Costly
Redesign Components to Eliminate Processing Iterations 298
Steps 265 A Prototype May Expedite Other Development
Choose the Appropriate Economic Scale for the Part Steps 300
Process 265 A Prototype May Restructure Task
Standardize Components and Processes 266 Dependencies 301
Adhere to "Black Box " Component Procurement 267 Prototyping Technologies 301
Step 3: Reduce the Costs of Assembly 268 3D CAD Modeling and Analysis 301
Keeping Score 268 Free-Form Fabrication 302
Integrate Parts 268 Planning for Prototypes 303
Maximize Ease of Assembly 269 Step 1: Define the Purpose of the Prototype 303
Consider Customer Assembly 270 Step 2: Establish the Level of Approximation
Step 4: Reduce the Costs of Supporting of the Prototype 304
Production 270 Step 3: Outline an Experimental Plan 304
Minimize Systemic Complexity 271 Step 4: Create a Schedule for Procurement,
Error Proofing 2 71 Construction, and Testing 304
Step 5: Consider the Impact of DFM Decisions on Planning Milestone Prototypes 305
Other Factors 272 Summary 306
The Impact of DFM on Development Time 2 72 References and Bibliography 307
The Impact of DFM on Development Cost 272 Exercises 308
The Impact of DFM on Product Quality 273 Thought Questions 308
The Impact of DFM on External Factors 273
Results 273 Chapter 15
Summary 275 Robust Design 311
References and Bibliography 276
What Is Robust Design? 312
Exercises 277
Design of Experiments 314
Thought Questions 278
The Robust Design Process 315
Appendix A
Step 1: Identify Control Factors, Noise Factors,
Materials Costs 279
and Performance Metrics 315
Appendix B
Step 2: Formulate an Objective Function 316
Component Manufacturing Costs 280
Step 3: Develop the Experimental Plan 317
Appendix C
Experimental Designs 317
Assembly Costs 286
Testing Noise Factors 319
Appendix D '
Step 4: Run the Experiment 321
Cost Structures 287
Step 5: Conduct the Analysis 321
Chapter 14 Computing the Objective Function 321
Computing Factor Effects by Analysis
Prototyping 289 of Means 322
Understanding Prototypes 291 Step 6: Select and Confirm Factor
Types of Prototypes 291 Setpoints 323
What Are Prototypes Used For? 294 Step 7: Reflect and Repeat 323
 Contents XV

Caveats 324 When Should Economic Analysis Be Performed? 355

Summary 324 Economic Analysis Process 356
References and Bibliography 325 Step 1: Build a Base-Case Financial Model 356
Exercises 326 Estimate the Timing and Magnitude of Future Cash
Thought Questions 326 Inflows and Outflows 356
Appendix Compute the Net Present Value of the Cash
Orthogonal Arrays 327 Flows 358
The Base-Case Financial Model Can Support
Chapter 16 Go/No-Go Decisions and Major Investment
Patents and Intellectual Property 331 Decisions 359
Step 2: Perform Sensitivity Analysis 359
What Is Intellectual Property? 332 Development Cost Example 360
Overview ofPatents 333 Development Time Example 361
Utility Patents 334 Step 3: Use Sensitivity Analysis to Understand
Preparing a Disclosure 334 Project Trade-Offs 363
Step 1: Formulate a Strategy and Plan 336 Six Potential Interactions 364
Timing ofPatent Applications 336 Trade-OffRules 365
Type of Application 337 Limitations of Quantitative Analysis 366
Scope ofApplication 338 Step 4: Consider the Influence of the Qualitative
Step 2: Study Prior Inventions 338 Factors on Project Success 367
Step 3: Outline Claims 339 Projects Interact with the Firm, the Market, and the
Step 4: Write the Description of the Macro Environment 367
Invention 340 Carrying Out Qualitative Analysis 369
Figures 341 Summary 370
Writing the Detailed Description 341 References and Bibliography 371
Defensive Disclosure 342 Exercises 372
Step 5: Refine Claims 343 Thought Questions 372
Writing the Claims 343 Appendix A
Guidelines for Crafting Claims 346 Time Value of Money and the Net Present Value
Step 6: Pursue Application 346 / Technique 373
Step 7: Reflect on the Results Appendix B
and the Process 348 Modeling Uncertain Cash Flows Using Net
Summary 348 Present Value Analysis 375
References and Bibliography 349
Exercises 349
Thought Questions 349 Chapter 18
Appendix A Managing Projects 379
Trademarks 350
Appendix B Understanding and Representing Tasks 380
Advice to Individual Inventors 350 Sequential, Parallel, and Coupled Tasks 380
The Design Structure Matrix 382
Chapter 17 Gantt Charts 383
PERT Charts 384
Product Development Economics 353
The Critical Path 384
Elements of Economic Analysis 354 Baseline Project Planning 385
Quantitative Analysis 354 The Contract Book 385
Qualitative Analysis 354 Project Task List 385
xvi Contents

Team Staffing and Organization 387 Postmortem Project Evaluation 398

Project Schedule 388 Summary 399
. Project Budget 389 References and Bibliography 400
Project Risk Plan 389 Exercises 402
Modifying the Baseline Plan 391 Thought Questions 402
Accelerating Proj ects 3 91 Appendix
Project Execution 394 Design Structure Matrix Example 403
Coordination Mechanisms 394
Assessing Project Status 396
Index 405
Corrective Actions 396