Chapter 2

Development Processes and
Organizations
A Generic Development Process
Concept Development
Adapting the generic development process
Product Development Process Flows
AMF Development Process
Product Development Organizations
AMF Organization
AMERICAN MACHINE and Foundry
A Manufacturing company
TO DO BUSINESS IN THE
MARKET EFFECTIVELY WITH
OTHER COMPETETORS
Development Processes and
Organizations
Is there a standard development process that
will work for every company?
 what role do experts from different functional
areas play in the development process
 What milestones can be used to divide the
overall development process into phases?
 Should the development organization be
divided into groups corresponding to projects
or to development functions?
• PD process is the sequence of steps or activities
which an enterprise employs to conceive, design
and commercialize a product
A well defined development process is useful for
following reasons:
• Quality assurance: A development process
specifies the phases a development project will
pass through and the check points along the way
• Coordination:
– A clearly articulated development process acts as
master plan which defines the roles of each of the
players on the development team
• Planning:
– A development process contains natural
milestones corresponding to the completion of
each phase.
• Management:
– A development process is a benchmark for
assessing the performance of an ongoing
development effort
• Improvement:
– The careful documentation of an organization’s
development process often helps to identify
opportunities for improvement
• Morale and satisfaction:
– The above listed benefits of well defined
development process show the progress of project
and the outcome of efforts by all team members
– It provides the vital basis for maintaining as well as
enhancing the enthusiasm, morale and
satisfaction of team members
Concept Development
System Level Design
Detail Design
Testing and Refinement
Production Ramping
Identifying customer needs
Establish target specifications
Precise description of what a product has to do:
Concept generation
• Mix of External search

• Creative problem solving within the team
• Systematic exploration of various solution
fragments
Concept selection and concept testing
• Activity in which various product concepts are analyzed and sequentially
eliminated to identify the most promising concepts
• Requires several iterations and may initiate additional concept generation and
refinement
• one or more concepts are then tested to verify that the customer needs have been
met
• assess the market potential of the product and identify any shortcomings which must
be remedied during further development.
Setting final specifications:
• The target specifications set earlier in the process
are revisited after a concept has been selected
and tested
•At this point team must commit to specific values
of the metrics reflecting the constraints
inherent in the product concept
Project planning:
The team creates a detailed development schedule
devises strategy to minimize development time
identifies the resources required to complete the project
Economic analysis:
With the help of financial anlayst builds economic model
justify continuation of overall development program
Adapting the generic product development process
Market Pull
The term 'Market Pull', refers to the need/requirement for a

new product or a solution to a problem, which comes from
the market place. The need is identified by potential customers
or market research. A product or a range of products are
developed, to solve the original need.
Technology Push
Plat form products
In short, a product is something you sell. A platform is common
infrastructure that you build products on. In the physical world, car
companies are a great example.
Process intensive
Customized products
1. Functional organizations: organizational links are
primarily among those who perform similar
functions.
2. A strict functional organization might include a
group of marketing professionals all sharing
similar training and expertise.
3. These people would all report to the same
manager who would evaluate them and set their
salaries
4. The group will have its own budget and people
would sit in the same part of a building
1. Project organizations: the organizational links are
primarily among those who work on the same project
2. Strict project organization would be made up of
groups of people from several different functions
with each group focused on the development of a
specific product
3. These groups would each report to an experienced
project manager, who might be drawn from any of the
functional areas
4. New ventures or start ups are among the most
extreme examples of project organizations.
1. The matrix organizations was conceived as a hybrid of functional
and project organizations.
2. In the matrix organization individuals are linked to others
according to both the project they work on and their function.
3. Typically each individual has two supervisors one a project
manager and one a functional manager.
4. Two variants of the matrix organization are called the heavy weight
project organizations and light weight project organization.
5. A heavyweight project organization contains strong project links
6. The heavy weight project manager has complete budget authority.
7. A heavy weight 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)
1. A light weight project organization contains
weaker project links and relatively stronger
functional links.
2. In this scheme he is more of a coordinator and
administrator.
3. The light weight project manager updates
schedules, arranges meetings and facilitates co-
ordination but the manager has no real authority
and control in the project organization
4. Functional managers are responsible for budget
hiring and firing and performance evaluation
Choice of organizational structure

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Development Processes and

• Mix of External search

The term 'Market Pull', refers to the need/requirement for a

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