Concept Selection2

7/27/2019 Concept Selection2

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TMI

Integrated ProductIntegrated Product

DevelopmentDevelopmentnn Concept SelectionConcept Selection

nn Teaching ObjectivesTeaching Objectives

Understand the overall design processUnderstand the overall design process

Understand how to go about conceptUnderstand how to go about concept

selectionselection

TMITwin StreamsTwin Streamsproductproduct

evolutionevolutionoriginal conceptoriginal concept

concept testingconcept testing

productproduct

testingtesting

market testingmarket testing

full launchfull launch

protocolprotocol

market planmarket plan

evolutionevolution

prototypeprototype

pilot plantpilot plant

manufacturedmanufactured

productproduct

basic strategybasic strategy

tactical planstactical plans

complete finalcomplete final

planplan

revised finalrevised final

planplan


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TMIObjectiveObjectivenn maximizemaximize

nn profit = p min(D,Q) - cQ - Fprofit = p min(D,Q) - cQ - F

nn given product feasibilitygiven product feasibility

nn You choose or controlYou choose or control p, Q, c, Fp, Q, c, F

nn Market choosesMarket chooses DD

nn You cannot build every possible productYou cannot build every possible productto evaluateto evaluate

TMIControlling Your OutcomeControlling Your Outcome

nn Select your product attributesSelect your product attributes

nn Design to produce attributesDesign to produce attributes

nn Execute prototype manufactureExecute prototype manufacture

nn Design mass production process =Design mass production process = c , Fc , F

nn Understand your place in the market =Understand your place in the market =p , Qp , Q


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TMIDescriptive ModelingDescriptive Modelingnn Typical OR/OM modeling isTypical OR/OM modeling is prescriptiveprescriptive::

model returns optimal controlsmodel returns optimal controls

nn (p,Q,c,F)(p,Q,c,F) is a complex relationshipis a complex relationship

nn Build model so that givenBuild model so that given p,Q,c,Fp,Q,c,F, can, can

predictpredict

nn Discover surface throughDiscover surface through

experimentation =experimentation = descriptivedescriptive modelingmodeling

TMIBeginningBeginning

focus groupsfocus groups

product classproduct class

(aux. cup holder)(aux. cup holder)

potentialpotential

attributesattributes


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TMIAttributes to DAttributes to Dpotentialpotential


conjoint studyconjoint study

estimate ofestimate ofDD asas

function of attributefunction of attribute

conceptconcept

TMIChoosing Q and pChoosing Q and p

p , c , Fp , c , F

newsvendornewsvendor

modelmodel

QQ


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TMIPure Attribute ModelPure Attribute Modelproduct classproduct class

focus groupfocus group

conjointconjointattributeattribute

cost est.cost est.


profitprofit What are advantagesWhat are advantages

and disadvantages?and disadvantages?

TMIEvaluationEvaluation

nn Advantages: contained, repeatableAdvantages: contained, repeatable

nn Disadvantages:Disadvantages:

Lacks real customer feedback on conceptsLacks real customer feedback on concepts

Lacks engineering detailLacks engineering detail

No measure of nonattribute drivers -No measure of nonattribute drivers -

fashionfashion

No interactions modeledNo interactions modeled


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TMIEvidenceEvidence

ProductProduct Adj- RAdj- R22

Bike lightBike light .31.31

Travel mugsTravel mugs .61.61

TMICost EstimationCost Estimation

ProductProduct Adj- RAdj- R22 Correct SignCorrect Sign

JuicersJuicers .58.58 5/65/6

Bike lightBike light .90.90 2/52/5

Travel mugsTravel mugs .28.28 3/43/4


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TMIMultiple ConceptsMultiple Concepts

Carry multiple conceptsCarry multiple concepts

through early developmentthrough early development

TMIControlled ConvergenceControlled Convergenceoriginal setoriginal set

eliminateeliminate

expandexpand

eliminateeliminate

expandexpand

eliminateeliminate

expandexpand

select conceptselect concept

timetime


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TMICumulative ExpendituresCumulative Expenditures

0

10

20

30

40

50

60

70

80

90

100

0 20 40 60 80 100

% of concepts kept

cumulative cost

% of development time

TMIReality Check - PrototypesReality Check - Prototypes

nn Engineering feasibility - BDI will let youEngineering feasibility - BDI will let you

do a lot that the machining faculty wontdo a lot that the machining faculty wont

nn Repeat focus groups with physicalRepeat focus groups with physical

prototypes of various conceptsprototypes of various concepts

nn Repeat conjoint study with onlyRepeat conjoint study with only

attributes price and part-worth ofattributes price and part-worth ofvarious products (include commercial)various products (include commercial)


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TMIImproved ModelImproved Model

Move from pure attribute to engineeringMove from pure attribute to engineering

analysis of various conceptsanalysis of various concepts

TMIAttributes to SpecsAttributes to Specs


QFDQFD

engineering specsengineering specs

high qualityhigh quality

constant bodyconstant body

panel gapspanel gaps


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TMIProduct ArcheologyProduct Archeologyspecsspecs

BDIBDI

c , Fc , F

TMIDescriptive ModelDescriptive Modelproduct classproduct class

focus groupfocus group

conjointconjoint

QFDQFD

BDIBDI


profitprofit

prototypeprototype

focusfocus


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TMIPotholesPotholesnn Bias the evaluation process to test forBias the evaluation process to test for

areas of particular riskareas of particular risk

nn Example: Camera holders, risk factorsExample: Camera holders, risk factors

were adjustability and stability. Dowere adjustability and stability. Do

special focus groups or technicalspecial focus groups or technical

evaluations on these items up front toevaluations on these items up front to

evaluate various concepts.evaluate various concepts.

TMIFormal ApproachesFormal Approaches

nn Bean - HomartBean - Homart

View products as portfolio during selectionView products as portfolio during selection

nn Pollock - UpjohnPollock - Upjohn

DSS for choosing and cutting off productDSS for choosing and cutting off product

development projects as a portfoliodevelopment projects as a portfolio

nn

LovejoyLovejoy Carry forward multiple conceptsCarry forward multiple concepts

nn Analog to genetic algorithmsAnalog to genetic algorithms


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TMIConcept SelectionConcept Selectionnn ProcessProcess of design concept evaluationof design concept evaluation

and selectionand selection

runs throughout the development processruns throughout the development process

carry multiple concepts, reduce number ascarry multiple concepts, reduce number as

costs increasecosts increase

make prototypes of multiple conceptsmake prototypes of multiple concepts

return to the customer - run new conjoint toreturn to the customer - run new conjoint toestimate profitestimate profit

Get engineering detail into evaluationGet engineering detail into evaluation

TMIFirst Design ReviewFirst Design Review

nn October 14 in classOctober 14 in class

nn 10 min presentation on product plans10 min presentation on product plans

nn bring physical prototype (from lab orbring physical prototype (from lab or

rapid)rapid)

nn Product Innovation CharterProduct Innovation Charter

nn Must prove out engineering feasibility ofMust prove out engineering feasibility ofconceptconcept

nn Have thoughts on materials/cost andHave thoughts on materials/cost and

plans for refinementplans for refinement


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TMIScheduleSchedulenn 6:00 Team 16:00 Team 1

nn 6:25 Team 26:25 Team 2






nn Arrive 5 minutes early, can leaveArrive 5 minutes early, can leave

when donewhen done

TMIReferencesReferences

nn Crawford,Crawford, New Products ManagementNew Products Management,,

Irwin, Burr Ridge, IL, 1994.Irwin, Burr Ridge, IL, 1994.

nn Pugh,Pugh, Total Design: Integrated Methods forTotal Design: Integrated Methods for

Successful Product EngineeringSuccessful Product Engineering, Addison-, Addison-

Wesley, Wokingham, England, 1990.Wesley, Wokingham, England, 1990.

nn Srinivasan, Lovejoy and Beach, IntegratedSrinivasan, Lovejoy and Beach, Integrated

Product Design for Marketability andProduct Design for Marketability andManufacturing,Manufacturing, Journal of MarketingJournal of Marketing

ResearchResearch24, 1997, 154-163.24, 1997, 154-163.

Documents

Concept Selection2