Tools & Trends in Product Development
Percent of Current Sales Contributed by New Products 70% 60%
High Tech
All Firms
Low Tech
50% 40% 30% 20% 10% 0% Bottom Third
Middle Third
Top Third
Self Reported Standing in Industry
Most Successful
Decay Curve 100 90 80 70 60
1990
50
1995
40 30 20 10 0 Ideas
Tested
Launched
Success
Design Processes
NPD Processes in Use in the US Other
3rd Gen. Stage Gate
Facilitated Stage Gate
1
STAGE GATE PROCESSES 56 %
Stage Gate
Functional, sequential
Informal
None
0%
5%
10%
15%
20%
25%
30%
Process Tasks … ►
Product Line Planning Portfolio, Competition
►
Strategy Development Target Market, Needs, Attractiveness
►
Idea/Concept Generation Opportunities and Solutions
►
Idea Screening Sort, Rank, Eliminate
… Process Tasks ►
Business Analysis Business Case, Development Contract
►
Development Convert Concept into Working Product
►
Test & Validation Product Use, Market
►
Manufacturing Development Developing and Piloting Manufacturing Process
► Commercialization
Launch of Full-Scale Production and Sales
Tasks Included in Processes Commercilization Manufacturing Development Test & Validation Development Business Analysis Screening Idea Generation Project Strategy Product Line Planning
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Projects Completing Tasks Commercialization Manufacturing Development Test & Validation Development Business Analysis Screening Idea Generation Project Strategy Product Line Planning
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Average Time Spent on Tasks Product Line Planning Project Strategy Idea Generation Screening Business Analysis Development Test & Validation Manufacturing Development Commercialization
0
5
10
15
weeks
20
25
30
35
Percentage of Projects Using Multifunctional Teams New-to-World
New-to-Firm
Major Revision
Cost Reduction
Repositioning
Minor Improvement
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Tools
Perceived Importance and Use of Marketing Research Tools Voice of Customer
Importance Degree of Use
5
Pre-Test Markets
4
Customer Site Visits
3 2 1
Test Markets
0
Conjoint Analysis
Concept Tests
Focus Groups
Beta Testing
Perceived Importance and Use of Engineering Tools Importance Degree of Use
Rapid Prototyping 5
Virtual Design
4
Concurrent Engineering
3 2
Perfomance Simulation
1
Design for Manufacturing
0
FMEA
Value Analysis
CAD
CAE
Perceived Importance and Use of Organization Tools CPMPERT GANNT 5
Leaderless Teams
4
Importance Degree of Use Champions
3 2
Colocated Teams
Process Owner 1 0
QFD
TeamBuilding Drill
Matrix Organization
Heavyweight Manager Self Directed Teams
Perceived Importance: Top 5 ► ► ► ► ►
Voice of the Customer (4.2) Customer Site Visits (3.9) Rapid Prototyping (3.9) Project Scheduling Tools (3.9) Product Champions (3.9)
Frequency of Use: Top 5 ► ► ► ► ►
Project Scheduling Tools (3.7) Voice of Customer (3.6) Customer Site Visits (3.5) Computer-Aided Design (3.4) Matrix Organizations (3.2)
Performance
Past and Future Impact of New Products 45.0% 40.0%
Percent of Total
35.0%
Past 5 Years Next 5 Years
30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% New Product Sales
New Product Profits
Product Success ► Successful
Products (subjective)
55.9 %
►
Profitable
51.7 %
►
Still on market after 5 years
74.1 %
Performance Criteria Financial Performance
Customer Acceptance
Technical Performance
Repositioning
Incremenatal Improvement
Next Generation
New Product Line
New To World
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Average Length of Development Projects Incremenatal Improvement
Next Generation
New Product Line
New To World
0
5
10
15
20
WEEKS
25
30
35
40
45
Further Reading ►
Rosenau et al. “The PDMA Handbook of New Product Development” Data Source for preceding slides
►
Cooper, Robert G. “Winning at New Products” Stage-Gate Processes
Tools For Innovation: The Design Structure Matrix Thomas A. Roemer Spring 06, PD&D
Outline ►
Overview Traditional Project Management Tools and Product Development
►
Design Structure Matrix (DSM) Basics How to create Classification
►
The Iteration Problem: Increasing Development Speed Sequencing, Partitioning and Simulation
►
The Integration Problem: DSM Clustering Organizational Structures & Product Architectures
►Gantt
Charts
►Graph-based:
Activity
Classical Project Management Tools
PERT, CPM, IDEF
Time
Characteristics ► Complex
Depiction ► Focus on Work Flows DSM focuses on Information Flows ► Ignore
Iterations & Rework
Test results, Planned design reviews, Design mistakes, Coupled nature of the process ► Decomposition
& Integration
Assume optimal Decomposition & Structure Integration of Tasks not addressed
Design Iteration ► Iteration:
The repetition of tasks due to new information. Changes in input information (upstream) Update of shared assumptions (concurrent) Discovery of errors (downstream)
► Fundamental
in Product development
Often times hidden ► Understanding
Iterations requires
Visibility of information flows
A Graph and its DSM B A
C D
E F G H
I
A B C D E F G H I
A A
B B X
C X
D
E
F
G
H
I X
C D
X E
X X
F X
X G H
X
I
Creating a DSM ► Design
manuals ► Process sheets ► Structured expert interviews
Interview engineers and managers Determine list of tasks or parameters Ask about inputs, outputs, strengths of interaction, etc Enter marks in matrix Check with engineers and managers
► Questionnaires
Four Types of DSMs Iteration Activity based DSM Parameter based DSM
Sequencing Partitioning Simulation
Integration Team based DSM Product Architecture DSM
Clustering
Iteration Focused Tools Concepts, Examples, Solution Approaches
Sequencing Tasks in Projects Possible Relationships between Tasks
A
A
A
B
B
Independent (Parallel)
Interdependent (Coupled)
B
Dependent (Series)
DSM: Information Exchange Model A B C D E F G H I J K L A B C D E F G H I J K L
Interpretation: ► Rows: Required Information D needs input from E, F & L.
• •
►
•
Columns: Provided Information B transfers info to C,F,G,J & K.
•
Note: ► Information flows are easier to capture than work flows. ► Inputs are easier to capture than outputs.
• • • • • • • •
DSM: Partitioned or Sequenced B C A K L J F I E D H G
Task Sequence
B C A K L J F I E D H G
•
Series
• Parallel
• • •
Coupled
• • • •
• • •
Sequencing Algorithm ► ► ► ► ► ► ►
Step 1: Schedule tasks with empty rows first Step 2: Delete the row and column for that task Step 3: Repeat (Go to step 1) Step 4: Schedule tasks with empty columns last Step 5: Delete the row and column for that task Step 6: Repeat (Go to step 4) Step 7: All the tasks that are left unscheduled are coupled. Group them into blocks around the diagonal
Example: Brake System Design Customer_Requirements Wheel Torque Pedal Mech. Advantage System_Level_Parameters Rotor Diameter ABS Modular Display Front_Lining_Coef._of_Friction Piston-Rear Size Caliper Compliance Piston- Front Size Rear Lining Coef of Friction Booster - Max. Stroke Booster Reaction Ratio
1 2 1 1 2 2 3 X 4 X 5 X X 6 X 7 8 X 9 10 X 11 12 13 X
3 4 5 6 7 8 9 10 11 12 13 X 3 X X 4 X X 5
X
X
X
X X
X
X X 9 X X 10 X X 11
X
X X 6
X X X X X X X X X X X X X
X 7 X 8
X
X 12 X X X X X X X 13
Partitioned DSM: Brake Design Customer_Requirements System_Level_Parameters Wheel Torque Piston- Front Size Piston-Rear Size Pedal Mech. Advantage Rear Lining Coef of Friction Front_Lining_Coef._of_Friction Booster Reaction Ratio Rotor Diameter Booster - Max. Stroke Caliper Compliance ABS Modular Display
1 4 1 1 4 X 4 2 X 10 X 8 X 3 X X 11 X 7 X 13 X 5 X X 12 9 X 6
2 10 8 3 11 7 13 5 12 9 6
2 X 10 X X X 8 X X X X X X X X X X X X X
3 X X X 11 X X X 7 X X X X X 13 X X X X X 5 X 12 X X 9 X 6
Semiconductor Design Example Set customer target Estimate sales volumes Establish pricing direction Schedule project timeline Development methods Macro targets/constraints Financial analysis Develop program map Create initial QFD matrix Set technical requirements Write customer specification High-level modeling Write target specification Develop test plan Develop validation plan Build base prototype Functional modeling Develop product modules Lay out integration Integration modeling Random testing Develop test parameters Finalize schematics Validation simulation Reliability modeling Complete product layout Continuity verification Design rule check Design package Generate masks Verify masks in fab Run wafers Sort wafers Create test programs Debug products Package products Functionality testing Send samples to customers Feedback from customers Verify sample functionality Approve packaged products Environmental validation Complete product validation Develop tech. publications Develop service courses Determine marketing name Licensing strategy Create demonstration Confirm quality goals Life testing Infant mortality testing Mfg. process stabilization Develop field support plan Thermal testing Confirm process standards Confirm package standards Final certification Volume production Prepare distribution network Deliver product to customers
S E E x x •
• x • x
x x x x x
S D M x x x • x x • x x • x x x x x x x
x x x
x
x x x
x x
x x x x x x
F D C
S W H W D D B
F D L
I
R D F V R C C D D G V R
Concurrent Activity Blocks x
x x
x x
x x
x
• x x • x x • x x x x • ³ ³ ³ ³ ³ x x • x x x x x x x x • x x x x x • x x x • x x x x x • x x x x x • x x x x x x x x x x x x x x x x • x x x x x x x x • x x x x x x • x x x x x x x • x x x x x x x x • x x x x x x x x • x x x x x x x x x • x x x x x x x • x x x x x x • x x x x x x x x • x x x • x x x x x • x x x x x x
x
x
Sequential Activities x
x x
x
x
x x x
³
³
³
³
³
³
³
³ • x x • x • x • x x
³
³
³
³
³ ³
³
³
³
³
x
x
• x • ³ ³ ³ x • x x • x • x • x • x x • x x • x x x x • • x x x • x •
x
x
x
x x x
x x x
x x
³
³
³
³
³
³
³
³
³
x x
x
•
x
• x x
• x x x • x x x •
x
x x
³
• x
x
³
³
Parallel Activity Blocks x
³
³
x x x
F V P D
Potential Iterative Loops
x
x
x x x x
M D T C C
•
x x
I
Generational Learning Feedback
x x
x
S C D P F S F V A E C D D D L C C L ³ ³ ³
x x
x
x
³
³
•
x x x
x x
x x
x x
x x
x
x
x x
x x
x x x x
• x x x x
x x
• x x x • x x x • x x • x
x • x •
Task Sequencing Example
Space Shuttle Main Engine
Engine Components
Dependency Relations in Conceptual Design Block ACTIVITIES SSP Engine Balanc e
1
CMT Mak e Pr eliminar y Mat er ial Selec t ions
2
CST Assess Pump Housing
3
Design Pump Housing
4
CST Assess Tur bine Housing
5
1
2
4
0.15 1
0.5
3
4
5
7
7
0.1
0.1
8
1
0.2
4
CST Ev aluat e Rot or Siz ing
10
11
12
13
14
15
16
17
18
19
0.1
1
0.1
1
1
22
1
0.1
1
0.1
1
0.1
6
0.2
0.5
0.1
1
25
26
27
0.1
0.2
1
1
0.1
6
0.2
1
8
0.3
1
1
0.1
0.1 1 2
CDE Design Rot or
14 15
CDE Posit ion Bear ings and Selec t ion
16
0.2
CDE Design Tur bine
17
0.2
CDE Int egr at e Rot or and St r uc t ur e Lay out
18
0.2
1 0.1
1 1
1
1
1 2 0.2
1 4
0.2
1
0.3
1
0.2
0.1
8
0.1 1
0.2
0.1
1
1
0.3 0.1
CDE Dev elop Thr ust Balanc e 22
0.2
0.1
4 2
1
0.3
0.1
1
0.1
6
1 1
1 1
1
1
CRD Ev aluat e Design 25
2 1
26
1 0.5
0.1
1
1
1
1
1
0.2
CRD Def ine Linear Rot or dy namic Behav ior 24
0.1
4
1
CSL Def ine Indiv idual Sealing Element s 21
0.1
2 0.1
1
0.1
1
CDE Inc or por at e Seal Dimensions 19
Design Tur bine Housing 27
24
1
CBR Det er mine Bear ing Geomet r y
CDE Analy z e Weight
23
1 1
CDE Inc or por at e Bear ing Dimensions 13
CRD Build Finit e Element Model 23
21
0.1
12
CSL Def ine Seal Sy st em 20
20
4
CST Compar e Design Impeller Tip Speed… 9
CDE Design Pumping Element s 11
9
0.1 0.1
CST Compar e Design Pit c hline Veloc it ies… 8
CHX Det er mine Pumping Component s 10
8
0.1
CST Compar e Design Annulus Ar ea… 6 CAX Det er mine Opt imum Tur bine St aging
6
0.2
1 0.2
1
0.1
4 4
Block Decomposition min ∑ aij nij yij ij∈A
M
∑x
s.t.
m =1
im
= 1, ∀ i
N
∑ xim ≤ C , ∀ m i =1
xim −
M
∑x
h = m +1
jh
− yij ≤ 0, ∀ i, j , m
xim , yij ∈ {0,1}, ∀ i, j , m
i,j = index for activities, i,j = 1,2,…,N; m = index for stages, m = 1,2,…,M; A = the set of directed arcs in the design graph; aij = the level of dependency of activity i on j
⎧1 if activity i is assigned to stage m xim = ⎨ ⎩0 otherwise ⎧0 if arc ij is a feed back between stages yij = ⎨ ⎩1 otherwise ⎧W nij = ⎨ ⎩1
(a large number) if aij = 1 otherwise
Resulting Structure for Conceptual Design Block ACTIVITIES
1
10
1
4
0.1
CHX Det ermine Pumping Component s 10
1
6
0.1
1
1
SSP Engine Balance
CST Compar e Design Impeller Tip Speed… 9 MT Make Preliminar y Mat erial Select ions
2
CAX Det ermine Opt imum Tur bine St aging
7
9
1
7
CDE Design Turbine
CST Evaluat e Rot or Sizing
1 0.1
11
12
6
0.1
0.1
16
21
19
17
6
0.2 1
0.1 0.2
1
1
1
0.2
1
1
0.2
1
0.3
0.1
0.3
0.1
1
1
2
1
0.3
1
1
0.1 0.2
1
4
0.5
0.5
14
0.2
DE Int egrat e Rot or and St ruct ure Layout
18
1
23
24
25
26
1 1
1
0.1
0.1
0.1 0.2
0.1
2 1
1
1
1
1
4
0.2
1
8 4
1
1
0.1
0.1
0.2
0.1
2
0.1 0.2
1
8
0.2
1
5
1
CRD Build Finit e Element Model 23
0.1 1
1
1
0.1 0.1 0.1
6 4
1
0.3
1
1 1
CRD Evaluat e Design 25 26
5
1
1
CDE Design Rot or
CDE Analyze Weight
22
0.1
2 1
15
RD Def ine Linear Rot or dynamic Behavior 24
18
0.2 4
0.1
Design Tur bine Housing 27
CST Assess Tur bine Housing
14
0.1
CDE Incorporat e Bearing Dimensions 13
CDE Develop Thrust Balance 22
27
0.1
CDE Incorpor at e Seal Dimensions 19
3
3
1
CSL Def ine Individual Sealing Element s 21
4
4
8
1
16
Design Pump Housing
13
0.1
4
0.5
12
CST Assess Pump Housing
15
0.2
0.1
CSL Def ine Seal Syst em 20
CBR Det er mine Bearing Geomet ry
20
1
CST Compare Design Annulus Ar ea… 6 CDE Posit ion Bear ings and Select ion
17
0.1 0.2
ST Compare Design Pit chline Velocit ies… 8
CDE Design Pumping Element s 11
8
0.15 0.1
0.1 1
2
2 1
1
1 0.2
4
STC’s Existing Process Conceptual Design Negotiation Detail Design Manufacturing & Testing
Program Office
Project Team Functional Departments
Proposed Process Conceptual Design Negotiation Detail Design Manufacturing & Testing
Core Design Team Program Office Functional Departments
Pilot Project Performance Conceptual Design Detail Design As-Is
9d
To-Be
20 days
0
Fabrication & Test
39 days
10
20
68 days
25 days
30
40
27% Savings
40 days
50
60
70
80
90
Project Completion Time [days]
100
110
DSM Simulation
X
Task A Task B
X
Task C
► Task
A requires input from task C ► Perform A by assuming a value for C’s output ► Deliver A’s output to B ► Deliver B’s output to C ► Feed C’s output back to A Check initial assumption (made by A) ► Update
assumption and repeat task A.
X
Simulating Rework R
Task A Task B Task C
X X
R is the probability that Task A will be repeated once task C has finished its work. R = 0.0 : There is 0 chance that A will be repeated based on results of task C. R = 1.0 : There is 100% probability that A will be repeated based on results of task C.
Simulating
nd 2
Order Rework X
Task A Task B Task C
R2
X
Second Order rework is the rework associated with forward information flows that is triggered by feedback marks. First order rework: Output of task C causes task A to do some rework 2nd order rework: Consequently there is a chance tasks depending on A (e.g. task B) will also be repeated.
Simulating Rework Impact I
Task A Task B Task C
X X
I = 0.0 : If task A is reworked due to task C results, then 0% of task A’s initial duration will be repeated I = 1.0 : If task A is reworked due to task C results, then 100% of task A’s initial duration will be repeated
Simulation Results Impact Rework Information Flow
.5 .5 .5 .9 .5 .9 .9 X .5 .5 .5 .9 .5 X X .5 .9 .9 .5 .9 X .9 .9X X .9X X X X Target
►
1.0
►
0.8
►
0.6
0.4 0.2
0.0 120
126
132
138
144
150
156
162
168
174
180
►
DSM contains rework probabilities and impacts Cost and time add up Many runs produce a distribution of total time and cost Different task sequences can be tried
Schedule (days)
Source: “Modeling and Analyzing Complex System Development Cost, Schedule, and Performance” Tyson R. Browning PhD Thesis, MIT A&A Dept., Dec 99
Activity
Gantt Chart with Iteration
0
20
40
60
80
100
Ela p s e d T im e (Da ys )
2 3 4 5 6 7 8 9 10 11 12 13 1 41 2 0 15 16 17
14 140
113 60
Typical Gantt chart shows monotone progress ► Actual project behavior includes tasks stopping, restarting, repeating and impacting other tasks ►
Source: “Modeling and Analyzing Complex System Development Cost, Schedule, and Performance” Tyson R. Browning PhD Thesis, MIT A&A Dept., Dec 99
13
Lessons Learned: Iteration ► ► ► ►
Development is inherently iterative Understanding of coupling is essential Iterations improve quality but consumes time Iteration can be accelerated through
►
Information technology (faster iterations) Coordination techniques (faster iterations) Decreased coupling (fewer iterations)
Two Types of Iteration
Planned Iterations (getting it right the first time) Unplanned iterations (fixing it when it’s not right)
Integration Focused Tools Concepts, Examples, Solution Approaches
Team Selection ► Team
assignment is often opportunistic
“We just grab whoever is available.” ► Not
easy to tell who should be on a team ► Tradition groups people by function ► Info flow suggests different groupings ► Info gathered by asking people to record their interaction frequency with others
Clustering a DSM A B C D E F G A A B B C C D D E E F F G G
A F E D B C G A A F F E E D D B B C C G G
No Dependency
Hi
Low
Alternative Arrangement Overlapped Teams
A F E D B C G A A F F E E D D B B C C G G
No Dependency
Low
A F E D B C G A A F F E E D D B B C C G G
Hi
GM’s Powertrain Division ► 22
Development Teams into four System Teams
Short block: block, crankshaft, pistons, conn. rods, flywheel, lubrication Valve train: cylinder head, camshaft and valve mechanism, water pump and cooling Induction: intake manifold, accessory drive, air cleaner, throttle body, fuel system Emissions & electrical: Exhaust, EGR, EVAP, electrical system, electronics, ignition
Existing PD System Teams A
Engine Block A Crankshaft F Flywheel G Pistons D Connecting Rods E Lubrication I Cylinder Heads B Camshaft/Valve Train C Water Pump/Cooling J Intake Manifold K Fuel System P Accessory Drive H Air Cleaner N A.I.R. O Throttle Body Q Exhaust E.G.R. EVAP Ignition E.C.M.
F
G
z
z
D
E
I
B
C
J
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z
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M
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Electrical System U
z
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Engine Assembly V
z z
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z
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R
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U
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Level of Dependence
z High
z
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L z
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U
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N
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P
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H
z z z H z z z N z z z
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L
P
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z
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Proposed PD System Teams Crankshaft F
F
z z z z z
Flywheel G
z z
G
Connecting Rods E Pistons D Lubrication I Engine Block A Camshaft/Valve Train C Cylinder Heads B1
z
z
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E
z
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D
z
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I
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Intake Manifold K1 Water Pump/Cooling J
z
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z
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Level of Dependence
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Lessons Learned: Integration ► Large
development efforts require multiple activities to be performed in parallel. ► The many subsystems must be integrated to achieve an overall system solution. ► Mapping the information dependence reveals an underlying structure for system engineering. ► Organizations and architectures can be designed based upon this structure.
Conclusions ► The
DSM supports a major need in product development: documenting information that is exchanged
► It
provides visually powerful means for designing, upgrading, and communicating product development activities ► It has been used in industry successfully
Additional Material ► Eppinger,
S.D., "Innovation at the Speed of Information," Harvard Business Review, January, 3-11, 2001.
