Product Design & Development

Module no. (Lecture No 5)

BITS Pilani Ven Holalkere
Mechanical Engineering
Pilani Campus
BITS Pilani
Pilani Campus

Product Planning
Product Planning: What?, When? and How?

What will be the timings

How do they relate to and sequence of projects?
each other?

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Product Planning Process

Concept System-Level Detail Testing and Production

Planning Development Design Design Refinement Ramp-Up

Four Phases of Product Development

The product planning phase precedes the product development process.

• Product planning is key to PD success

• Poor planning results in:
• Inadequate coverage of markets
• Poor timing
• Mismatch of PD capacity and the number of PD projects
• Poor distributing of resources
• Poor decisions on PD cancellations
• Frequent changes in PD strategy
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Xerox Lakes Project Example

Xerox Document Centre 265

The Product Planning Process

Ability of a corporation to adjust the product

plan to accommodate for inconsistencies,
infeasibilities and market demands is vital to the
long term success of the enterprise
The Product Planning Process

• Step 1: Identify Opportunities

• Step 2: Evaluate and Prioritize Projects
• Step 3: Allocate Resources & Plan Timing
• Step 4: Complete Pre-Project Planning
• Step 5: Reflect on the Results & the Process

Planning Process is explained with reference to XEROX

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Step 1: Identify Opportunities

• Review and put in to practice the learnings from

“Opportunity Identification” chapter!
• XEROX collected and managed a data base of
opportunities from product enhancements to new
technologies
• Opportunities examples at XEROX:
1. Create a document distribution system for the whole
office
2. Create a document delivery software that allows the
digital delivery and storage of most intraorganizational
documents via a worker’s PC

Creation of product opportunities data base is key to a

successful product planning
Step 2: Evaluate and Prioritize Projects

• Four perspectives useful to evaluating and

prioritizing product opportunities:
1. Competitive Strategy
2. Market Segmentation
3. Technological Trajectories
4. Product Platforms
Step 2: Evaluate and Prioritize Projects
Step 2: Evaluate and Prioritize Projects

• Market Segmentation
• Customers are divided in to distinct market
segments
• Map all products on to the market segments
• Evaluate strengths and weaknesses of firm’s
products versus competitive products
• Prioritize PD efforts
Step 2: Evaluate and Prioritize Projects
Market Segment Map
65 ppm 65 ppm
network
$23k $31k
55 ppm 60 ppm
Department Lakes network
$20k
Project
$35k Lakes
40 ppm
Extensions
$16k
Market Segment

25 ppm
$10k
35 ppm
$15k
40 ppm
$20k
Legend
Xerox
Workgroup product
30 ppm 40 ppm
network competitor
$10k $20k product

Hodaka Project potential

20 ppm 25 ppm 30 ppm competitor
$8k $9k $10k
Personal
20 ppm
$7k

1997 1998 1999 2000 Year of

Release
Step 2: Evaluate and Prioritize Projects

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Step 2: Evaluate and Prioritize Projects

Technological Trajectories: When to adopt technology?

• Use of S-curves to adopt new technologies

• S-curves are very useful but, difficult to predict
• S-curves defined with time versus some important
performance parameter/s
• Cost is also an important parameter to be included in
the S-curve construction
Step 2: Evaluate and Prioritize Projects
Technology S-Curves
Copier Performance

Digital
Technology

Light-Lens
Technology

Time
Step 2: Evaluate and Prioritize Projects

• Product Platform Planning

• Developing new product platform is 2-10 times more
expensive and time consuming than developing new products
in the same platform
• Technology roadmaps used for coordinating technology
development with product planning
• Technology roadmap augmented with product development
resulting in product-technology roadmap
• Evaluation of New Product Opportunities
• Market size and growth
• Competition
• Knowledge of the existing market & technology
• Good fit with firm’s other products
• Good fit with firm’s capabilities
• Potential for patents, trade secrets, other barriers to
competition
• NEED A PRODUCT CHAMPION IN THE FIRM!
Step 2: Evaluate and Prioritize Projects
Technology Roadmap: XEROX
Functional Elements Technologies

Photo- Cylindrical 3-Pitch Belt n-Pitch Belt

receptor Drum Photoreceptor Photoreceptor

Scanner 2D CCD Array Full-Width, Linear Array

Layout w/Optical Reduc. without Optical Reduction

Toner High Low Melting Low Melting Point,

Type Temperature Point Low Emission

Output Monochrome: Paper, Fax, Scan, Color: Paper, Fax, Scan,

Modes Local Network, Internet Local Network, Internet

User Keypad
Interface Touch Screen Touch Screen, Remote PC

Image Automatic Image Quality

Processing 600 dpi 600/1200 dpi 1200 dpi 1800 dpi

Diagnostics On-Board Remote-Dialup Remote

Diagnostics Diagnostics Repair

Document Document Document Document

Centre Centre Centre Centre
220, 230 240, 255, 265 2XX 3XX
Hodaka Lakes Lakes Next
Project Project Extensions Platform
Time
Extent of Production Process Changes
Research and New Next Single Tuning and No
Technology Core Generation Department Incremental Process
Development Process Process Upgrade Changes Change
New Breakthrough
Core Development
Product Projects
Extent of Product Changes

Platform
Next Development
Generation Projects
Product
Lakes
Project
Addition
to Product
Family Derivative
Product
Minor Development
Product
Enhancement

Current
No
Product Product/Process
Change Support
The Product Planning Process
• Step 3: Allocate Resources & Plan Timing
• Careful evaluation and selection of PD projects and
allocate resources optimally
• Timing must consider:
• Timing of product introductions
• Technology readiness
• Market readiness
• Competition
Lakes Project Mission Statement
Product Description
 Networkable, digital machine with copy, print, fax, and scan functions
Key Business Goals
 Support Xerox strategy of leadership in digital office equipment
 Serve as platform for all future B&W digital products and solutions
 Capture 50% of digital product sales in primary market
 Environmentally friendly
 First product introduction 4thQ 1997
Primary Market
 Office departments, mid-volume (40-65 ppm, above 42,000 avg. copies/mo.)
Secondary Markets
 Quick-print market
 Small ‘satellite’ operations
Assumptions and Constraints
 New product platform
 Digital imaging technology
 Compatible with CentreWare software
 Input devices manufactured in Canada
 Output devices manufactured in Brazil
 Image processing engine manufactured in both USA and Europe
Stakeholders
 Purchasers and Users
 Manufacturing Operations
 Service Operations
 Distributors and Resellers