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Development Processes
&
Organizations
Hapsoro Agung Jatmiko
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 Product Development Process
 A Process is, a sequence of steps that transforms a set of inputs
into a set of outputs
 One of the most common and known process is baking a cake
 A Product Development Process is the sequence of steps or
activities that an organizations employ to conceive, design and
commercialize a product
 Many of these steps and activities are intellectual and
organizational, rather than physical activities, some organizations
define and follow precise and detailed development process,
while others may not even be able to describe their process
 Furthermore, every organization employs a process at least
slightly different from that of every other organization

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 Product Development Process
 A well defined development process is useful for the following
reasons :
1. Quality Assurance : Development process specifies the phases a development
project will pas through and checkpoints along the way. When these phases and
checkpoints are chosen wisely, the development process is one way of assuring
the quality of the product
2. Coordination : A Clearly articulated development process acts as a master plan
that defines the roles of each player on the development team. This plan informs
the team members when their contributions will be needed and with whim they
need to exchange both information and materials
3. Planning : Development process includes milestones corresponding to the
completion of each phase. The timing of these milestones anchors the schedule of
the overall dev. Project
4. Management : A development process is a benchmark for assessing the
performance of an ongoing development effort. By comparing the actual events
to the established process, a manager can identify possible problem areas
5. Improvement : the careful documentation and ongoing review of an
organization’s development process and its results may help to identify
opportunities for improvement
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 Product Development Process
 The generic product development process, consists of six phases
(shown in the next slide, and discussed in the next also)
 The process begins with a planning phase, which is the link to
advanced research and tech development activities
 The output of the planning phase, is the Project’s Mission
Statement, which is the input required to begin the concept
development phase and which serves as a guide to the Dev team
 The conclusion of the product development process, is the product
launch, at which time the product becomes available for purchase in
the marketplace

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 Six Phases of Generic Development
Process
 0 – Planning : This step, is often referred to as “phase zero” because it precedes
the project approval and launch of the actual dev process. This phases starts with
opportunity identification, guided by corporate strategy and includes
assessment of technology and market objectives
 1- Concept Development : In this phase, the needs of the target market are
identified, several alternate product concepts are generated and evaluated, and
one or more concept are selected for further development and testing. A
concept is a description on the form, function, and features of a product and
usually accompanied by a set of specifications, an analysis of competitive
products and an economic justifications ( We are going to talked about this
part today)
 2- System-Level Design : the system level design phase includes the definition of
the product architecture, decomposition of the product into subsystems and
components and preliminary design of key components. Output? → a geometric
layout of the product, functional specification of each product subsystems and
preliminary process flow diagram for final assembly process

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 Six Phases of Generic Development
Process
 3- Detail Design : The detail design phase includes the complete
specification of the geometry, materials, and tolerance of all of the
unique parts in the product and also the identification of all of the
standard parts to be purchased from suppliers
 4- Testing and Refinement : The testing and refinement phase
involves the construction and evaluation of multiple pre-
production versions of the product
 5- Production Ramp-up : in this phase, the product is made using
the intended production system. The purpose of this phase is to
train the workforce and to work out any remaining problems in the
production processes. Product produced during production ramp-
up are sometimes supplied to preferred customers and are
carefully evaluated to identify any remaining flaws

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 Concept Development
 Because the concept development phase of the development
process demands perhaps more coordination among function
than any other
 Rarely, does the entire process proceed in purely sequential,
completing each activity before beginning the next
 In practice, the front end activities may be overlapped in time and
iteration is often necessary
 In almost any stage, new information may become available or
results learned that can cause the team to step back to repeat an
earlier activity before proceeding
 This repetition, of normally complete activities is known as
development iteration

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 Concept Development
 The concept development process includes the following activities :
1. Identification of Customer Needs : The goal of this activity is to understand customers’
needs and to effectively communicate them to the development team. The output of
this process is a set of carefully constructed customer need statements, organized in a
hierarchical list, with importance weightings for many or all of the needs
2. Establishing target specifications : Specifications provide a precise description of what a
product has to do. They are the translation of the customer needs into technical terms.
Target for the specifications are set early in the process and represent the hopes of
the dev team
3. Concept Generation : The goal of this phase, is to thoroughly explore the space of
product concepts that may address the needs. Concept Generation includes a mix of
external search, creative problem solving process, systematic exploration of various
solution fragment that team generates. The output of this process usually a set of 10-20
concept (sketch and brief description)
4. Concept selection : several generated concepts are then analyzed and sequentially
eliminated to identify most promising concept. It takes several iterations to do so
5. Concept testing : one (or more) concept are then tested to verify that, customer needs
have been met. If cust response is poor, the development project may be terminated, or
several previous action may be repeated as necessary

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 Concept Development
6. Setting final specifications : target specifications set earlier in the process are
revisited after a concept has been selected. At this point, the team must commit to
specific values of the metric reflecting the constraints inherent in the product
concept, limitation, and trade offs between cost and performance
7. Project planning : in this final activity of concept development, the team creates a
detailed development schedule, devises a strategy to minimize dev time, and
identifies the resources required to complete the project
8. Economic analysis : the team often with the support of financial analyst, builds an
economic model for new product. This model is used to justify continuation of the
overall development program and to resolve specific trade-offs between → dev cost
and manufacturing cost as example
9. Benchmarking of competitive products : an understanding of competitive products
is critical to successful of a new product and can provide rich source of idea for the
product and production process design
10. Modeling and prototyping : Every stage of the concept dev process involves various
forms of models and prototypes.

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 Adapting the Generic
Product Development
Process
• The generic process is most like the
process used in a market pull
situation, where “the firm begins a
product dev with a market
opportunity and then uses whatever
available technologies are required
to satisfy the market need” (see next
picture)
• In addition to market-pull, several
variants are common and correspond
to the following namely :
1. Technology-Push Products
2. Platform Products
3. Process-intensive products
4. Customized products
5. High risk products
6. Quick build products
7. Complex system
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 Technology-Push Products
 In developing technology-push products, the firm begins
with new patent technology and looks for an appropriate
market in which to apply this technology
 Many successful technology push products, involve basic
materials or basic process technologies
 This may be because basic materials and process are
deployed in thousands of applications
 There is therefore a high likelihood that new and unusual
characteristics of materials and processes can be
matched with an appropriate application

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 Platform Products
 A Platform product is built around a preexisting technological
subsystem
 Huge investment are made in developing such platform, and
therefore every attempt is made to incorporate them into several
different products
 Product built on technology platforms are much simpler to develop
than if the technology were developed from scratch
 For this reason, and because of the possible sharing of costs several
products, firm may be able to offer a platform product in markets
that could not justify the development of a unique technology

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 Process-Intensive Products
 Examples of process-intensive products include semiconductors,
foods, chemicals and paper
 For these products, the productions process places strict
constraints on the properties of the product, so that the product
design cannot be separated, even at the concept phase from the
production process design
 In many cases, this method are produced a very high volumes
and bulk, as opposed to discrete, goods
 In some situations, a new product and new process are
developed simultaneously

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 Customized Products
 Customized products are slight variations of standard configurations and are
typically developed in response to a specific order by customers
 Example of this products such as : motors, batteries, containers
 Development of customized products consists primarily of setting values of
design variables such as physical dimensions and materials
 When a customer orders a new product, the firm executes a structured design
and development process to create the product to meet the customer’s needs

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 High-Risk Products
 Product development process, address many types of risk
 These include technical risk, market risk (will the cust. like it?) and budget &
schedule risk
 High-risk products are those that entail unusually large uncertainties related to t
technology or market, so that there is substantial technical or market risk
 If there is high uncertainty related to technical performance of the produc

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 Complex Systems Product
 Larger scale product such as auto mobiles and airplanes are complex systems,
comprising many interacting subsystems and components
 When developing complex systems, modifications to generic product
development process address a number of system-level issues
 The concept development phase considers the architecture of the entire system,
and multiple architecture may be considered as competing concepts for overall
system
 Detail design of the components is a highly parallel process in which the many
development teams work at once, usually separately

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Product Development Process Flows

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 Product Development Organizations
 Instead of a good development process, successful firms must organize their
product dev staff to implement the process in an effective manner
 The type of organizing method used for product development and offer
guidelines for choosing among these options
 A Product development organization is the scheme by which individual
designers and developers are linked together into groups
 The link, among individuals, may be formal or even informal and include among
others, these types are :
1. Reporting relationships : a classing relationships between supervisor and subordinate. These
are the formal links that most frequently used in organization charts
2. Financial Arrangements : individuals are linked by being part of the same financial entities →
business department within firm
3. Physical Layout : Links are created between individuals when they share the same office,
floor, building or site. This kind of relations, mostly an informal relations
 Any particular individual may be linked in several different ways to other
individuals
 The strongest organizational links are typically those involving performance
evaluation, budgets and other resources allocations
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 Product Development
Organizations
 Regardless of their organizational links, particular individuals can be classified in
2 different ways : a) according to their function b) according to their project
they work on
 A function, in organizational terms, refers to an area of responsibility usually
involving specialized education, training or experience
 Several classic function examples in product development such as : marketing,
design and manufacturing
 Regardless of their function, some people apply their area of expertise to a
specific projects
 In product development project, we define projects as a “set of activities in the
development process for a particular product and includes”
 Identifying customers needs, generating product concepts are several examples of
project in a product development process

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 Product Development
Organizations
 In Functional Organizations, the organizational links are primarily among those
who perform similar functions
 On the other, Project Organizations, the organizational links are primarily
among those who work on the same project
 A Heavyweight Project Organization, contains strong project links. The
Heavyweight PM, has a complete budget authority, is heavily involved in
performance evaluation of the team members, and makes most of the major
resource allocation decisions
 A heavyweight project team in various industries may be called an integrated
product team (IPT), a design-build team (DBT), or simply a product development
team (PDT)
 A Lightweight Project Organization, contains a weaker project links, and
relatively
 In this scheme, the PM is more of a coordinator and administrator, several
tasks for the PM such as : arranging meetings, managing schedule, but, the PM
has no real authority and control over the project
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 Choosing an Organizational
Structure
 The most appropriate choice of Organizational structure, depends on which
organizational performance factors are most critical to success
 Functional Organization tends to breed specialization and deep expertise in
functional area
 Project Organization, tends to enable rapid and effective coordination among
diverse functions
 Matrix Organizations (Both Heavy Weight and Light), have a potential to
exhibit some different characteristics
 So, how should we design the proper Organizational Structure?
 As a future Project Management in Product Development, you could see this
following questions to help you guide yourself for the right organizational
choice

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 Choosing an Organizational
Structure
1. How Important is cross functional integration? : Functional
organizations may exhibit difficulty in coordinating project
decisions, that span the functional area. Project Organizations,
tend to enable strong cross functional integration because of the
organizational links of the team members across function
2. How Critical is cutting-edge functional expertise to business
success? : When disciplinary expertise must be developed and
retained over several product generations, then some functional
links are necessary
3. Can individuals from each function be fully utilized for most of
the duration of a project?
4. How important is product development speed? : Time to
market vs Time to develop
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 TUGAS
1. Apa yang dimaksud dengan :
a) Produk sukses
b) Produk tidak sukses
Berikan contoh dari masing-masing kategori
tersebut!
2. Berikan contoh-contoh produk yang
termasuk dalam :
a) Technology push products
b) Platform products
c) High-risk products
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Thank You!