GOM 3Product Design and Process SelectionThe Product Design ProcessMajor Business Functions Involved in the Product Development ProcessCustomer Market systemMarketingSales Advanced researchProduct designProcess planningproductionCustomer Market systemNeedsCustomer ordersCalls PromotionNew Product ideasProduct specificationsTechnical conceptsProduction ordersProducts Marketinga product concept in digital form can be worked on from anywhere by anyone.New Global Process of NPDlThe Evolution of NPD1960s to 1970s:lThe process sequential and longlRelatively straight-forwardAll aspects have changed:lAn increasing number of “design for” initiatives Design for manufacturability Design for reliability (quality assurance engineers entered the design process Design for serviceability Design for usability: anthropologists entered the process, along with artists and designers New: design for recyclabilityNew Global Process of NPDlEach new player wants to enter as early as possible to influence original processlFrom sequential to simultaneousExternal Players:lEarly supplier involvementlCustomerTime-to-Volume shortenedlPressures for Global ProductsThe capture of economies of scalelRising R&D costslReduction of product life cycleThe reduction in fixed costs associated with reducing the number of products, packages, and ads.New Global Process of NPDlBlack & DeckerlProcter & Gamble, a leader in simplifying its product lines.Convergence of preferences and tastes around the worldlGlobal Development ProcessPlatformslComputer: hardware nearly the same, software to accommodate local languageslHondas flexible framePostponementlDelay in the differentiation of a product for a particular country or customer to the last possible step in the supply chainlDelay in freezing the product design or concept until the last momentNew Global Process of NPDTwo Models of Effective Product Development with Delay in Freezinga. Traditional ModelProjectConcept MarketStart FreezeIntroductionConcept Product Development DevelopmentConcept Lead TimeDevelopment Lead Timeb. Flexible ModelProjectConcept MarketStart FreezeIntroductionConcept DevelopmentImplementationConcept Lead TimeDevelopment Lead TimeWorks fine when implementation time is short and when there are few changes to the technology the market, and the internal prioritiesPostponing decisions about the most volatile and costly product components. It also Involves frequent, early test of the concept itself. The customer is brought in from the beginning and exposed to prototype.New Global Process of NPDComputer-aided Design (CAD)lFrequent testing possiblelThree-dimensional representationlSimulationlRapid prototypingModular Product ArchitecturelThe rate of innovation increases because each unit can independently experiment the design concurrentlylOnce the architecture is decided on, each unit can implement the design concurrentlylWith the greatly reduced need for communication across groups, a company can locate design efforts in the best places globally