BA 296-1 and ME290P
Fall 1997

Managing the New Product Development Process: Design Theory and Methodology


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COURSE READINGS

Required Textbook: Product Design and Development, Karl T. Ulrich and Steven P. Eppinger, available at the UC bookstore, Ned's and Campus Textbook Exchange (and also used in last year's class). In the outline below, CHAPTER X always refers to the readings from the text.
Required Course Reader: Also available from the Ned's (across the street from the ASUC bookstore); radically changed from last year.
Library Reserves: Additional reading supplementing that provided in class can be found on reserve in the Engineering and Business libraries.
On-Line Resources: Supplemental on-line readings to support projects.


Class 1: Introduction to New Product Development (NPD)
Wednesday, August 27th

We will cover course logistics and requirements and then develop the motivation and framework for the course. Read the December 13, 1993 Fortune article, PAYOFF FROM THE NEW MANAGEMENT (accessible through the Melvyl network in the library), which describes a successful product development effort at Thermos, CHAPTER 1: INTRODUCTION and CHAPTER 2: DEVELOPMENT PROCESSES AND ORGANIZATIONS. Consider thought question 1 at the end of Chapter 1 and thought question 4 at the end of Chapter 2.

Visit the following web sites to learn about some of the resources on product design and development that are available:

(NOTE: If you have not used the Melvyl network before, here is one way you can access the article. Log on to the network in the library or from a terminal in the computer center. Go to the business catalog by typing "bus" and then to the magazines and journals database by typing "mags". There are numerous ways to find the article at this point. One approach is to type "find xt payoff" which will give you a list of items that have the word payoff in the title. Then type "display text 7" which will display the text for the seventh article, which is the assigned article. Note that both find and display can be shortened and represented by their first letters, f and d, respectively.)


Class 2: Choosing the Right NPD Process: Matching Process to Needs
Friday, August 29th

Prepare the HONEYWELL RESIDENTIAL DIVISION - NEW PRODUCT DEVELOPMENT case for class discussion by reading the case, answering the following study questions, and, if possible, meeting with other students in the class to discuss the case. This case examines three product development projects conducted at Honeywell Residential Division. Two of the projects undertaken followed the long-established "green book" set of procedures within the division, while the third followed a new "tiger team" approach involving corporate resources and division personnel. The three projects represent different philosophies, technologies and results. The case raises issues regarding the match between the problems the development approach is intended to solve and the nature of the approach. The following questions will guide your analysis of the case:
  1. Compare the three development projects discussed in the case. What explains the differences in performance you observe? (In doing this, it might be useful to think about how one ought to compare projects. That is, what are the relevant dimensions and criteria for comparison?)
  2. What are the salient features of the traditional development process at Honeywell Residential? What have been some of the underlying drivers and incentives in this approach? What strengths and weaknesses does it have?
  3. What is your evaluation of the new direction suggested for product development (for example, new procedures for product sourcing and product certification as well as the tiger team approach)? What should Molson do?

Read DELTA -- A DESIGN EXERCISE and come to class prepared with any questions you may have about the exercise. We will assign roles in class and "train" you to play your role.

Assignment due in Class on Wednesday, September 3rd: During the next few class sessions, we will talk about team dynamics and interactions as being critical to new product development success. You will have a chance to observe first-hand the difficulties in team formation and process during the Delta Design Exercise. To provide another dimension to understanding team dynamics, complete a simplified version of the Myers-Briggs test, the Kiersey test, available on the WWW. (MBA students may use the results of the test they took last year, if available.)

For other reading on new product development processes, see:


Class 3: Delta -- A Design Exercise
Wednesday, September 3rd

Re-read the role assignment you were given in class. Make sure that you thoroughly understand the role you are to play. If you do not, please ask questions of your trainer to clarify your position. Prepare any materials you believe you will need to play the role. DO NOT discuss the other three roles with others in the class. On the day of class, come to C110 for your room assignment, go straight to that room and convene your team as quickly as possible, as you will find that 1 1/2 hours is quite short for accomplishing this work. YOU MAY WISH TO LEAVE SOME EXTRA TIME AT THE END OF THE CLASS TO COMPLETE THE EXERCISE, or you may have to arrange with your group to meet again before Friday's class.

Your Delta Design Team will receive another assignment on Friday, September 5th when you will be given the design and videotape from another design team to analyze. It would be appropriate to schedule time to do this analysis (sometime between Friday, September 5th and Friday, September 12th) while you are together doing the design exercise.

Due at the end of this class session:

Assignment due in class on Friday, September 5th includes:

NOTE: Project Proposals are due on Thursday, September 4th at 3 p.m. (unless you want to bring copies to class yourself.) E-mail submission is fine.


Class 4: Project Proposals and Team Assignments
Friday, September 5th

We will use this class session to review in some detail the various proposals that have been put forth for design projects. See instructions for the design project for more detail. Students who wish to sell their design ideas to the rest of the class will be allotted time to do so during this class session. By the end of the class session, you should be prepared to submit your top three choices for projects on which you wish to participate.

Assignment due today: List of product ideas (see instructions for project) - everyone must produce one regardless of whether or not you propose one to the class.

In addition to discussing the projects, we will briefly discuss your experience in the Delta Design Exercise. At the end of class, you will be given a copy of another group's design and videotape, and asked to analyze them for class on Friday, September 12th.

Assignment due in class on September 12th: Read A MODEL OF THE MECHANICAL DESIGN PROCESS BASED ON EMPIRICAL DATA. Meet with your Delta Design Team (including observers) to review the tapes and design documents from another team. (You will have received these in class on Friday, September 5th.) View the tapes, analyze them, and answer the following questions:

NOTE: Project preferences are due by 5 p.m today.


Class 5: Concept Development: Customer and User Needs Assessment
Wednesday, September 10th

Read CHAPTER 3: IDENTIFYING CUSTOMER NEEDS and LISTENING TO THE CUSTOMER - THE CONCEPT OF A SERVICE-QUALITY INFORMATION SYSTEM by Berry and Parasuraman. Consider the thought questions at the end of Chapter 3 and be prepared to discuss the chapter material. Berry and Parasuraman describe an approach to assessing service quality. What are the salient elements of their system? Could the system be used to generate new service concepts as well? Are there lessons from their work that apply to the development of new products in non-service environments? Bill Rus, Market Research Manager at Autodesk, will join us during class to discuss approaches to gathering information on customer and user needs.

Assignment due today: Choose a product, and interview someone about what they like and dislike about the product. (This interview can be done very informally in 5-10 minutes.) Record what they say and interpret the data in terms of customer needs. Prepare a one-page summary of what you have learned.

Note that there will also be a speaker on this subject in the evening program on September 24th. Tapan Bhat, Product Manager at Intuit, will describe Intuit's approach to understanding customer and user needs. You are welcome to join that session in C135 from 6 - 7:30 p.m.

For additional information on the front end of the development process see:

For those of you wishing additional information on customer and user needs assessment, the following papers are on reserve:
And, if you wish further depth in the market aspects of new product development there are two Management of Technology classes that cover marketing issues:


Class 6: Descriptive Studies of the Design Process
Friday, September 12th

Bring your videotape analyses to class. We will discuss your findings and observations about the teams you observed. In addition, read THE DISCIPLINE OF TEAMS. What does the paper say about using information from tests such as the Myers-Briggs (Kiersey) test? What roles does the paper suggest that the course faculty (Agogino and Beckman) should play? What role should your coaches play? How would you have changed your Delta Design Exercise experience were you to have read this paper ahead of time? Would discussing your Myers-Briggs profiles with your Delta Design team members have helped you work better with one another?

Regarding the Ullman article: Does the "task/episode accumulation" (TEA) model developed by the authors do a good job of capturing the design process? What do you like and dislike about the model? How would you change it? What does the authors' approach to modeling tell you about the mechanical design process itself?


Class 7: Concept Development: Translating the Voice of the Customer
Wednesday, September 17th

Read CHAPTER 4: ESTABLISHING PRODUCT SPECIFICATIONS, and HOUSE OF QUALITY. Prepare the SWEETWATER case for class discussion. The SweetWater case will allow us to understand how the "voice of the customer" must be chased back to clearly stated needs that vividly incorporate the user experience with the product, and will provide a structured way of thinking about stratifying user needs. The following questions should guide your case preparation:

(You should start applying some of the methods you are learning in class to your design project. Note that you will have to select from among many methods the ones that are most appropriate to your development project.)

For information on mapping product technologies across members of a product family, see:


Class 8: Project Lab -- Mission Statement, Customer and User Needs Analysis
Friday, September 19th

This class session will be dedicated to working with your project team and a coach to refine your mission statement and plan for assessing customer and user needs. See project instructions for more details.


Class 9: Concept Development: Concept Generation
Wednesday, September 24th

This class session will focus on brainstorming and "ideation" techniques used by new product development teams to generate product ideas from their understanding of customer wants and needs and of the available technologies. Read CHAPTER 5: CONCEPT GENERATION. Consider thought questions 2, 3, and 5. We will use the Vizability Software in class to show additional concept generation techniques. This will launch the next phase of your projects' development efforts as you begin to translate customer needs into various product concepts.

Note that there will be a guest speaker in the Evening version of this class who will cover this topic, and lead an "ideation" exercise. You are welcome to attend that session. (See the end of the syllabus for details.)

Additional references for those of you interested in techniques for stimulating creativity:

Both books have a number of exercises intended to stimulate creativity, similar to some of those used in class.


Class 10: Concept Development: Concept Selection
Friday, September 26th

Once you have generated a set of possible product concepts, you must identify the one or ones that you will actually work on. During this class session, we review methodologies for choosing from among the options. Read CHAPTER 6: CONCEPT SELECTION. Complete exercises 3 and 4 at the end of the chapter. Bring your results to class. During class we will review these concepts as well as the application of probability theory and decision analysis to concept selection. Proceed to apply these methodologies to your design projects.

Assignment due: Complete exercises 3 and 4 at the end of Chapter 6.

For a concise and brief review of probability theory, some of you may wish to refer to the following materials which are on reserve: Agogino, A.M., "The Logic of Probability Theory," October 1992.


Class 11: System Level Design: Product Architecture and Product Partitioning
Wednesday, October 1st

Read CHAPTER 7: PRODUCT ARCHITECTURE and THE DESIGN AND DEVELOPMENT OF INFORMATION PRODUCTS by Meyer and Zack. Complete exercise 2 or 3 at the end of the chapter and be prepared to discuss thought questions 1 and 2. Those of you developing web-based products may find the Meyer and Zack article particularly applicable. What do Meyer and Zack mean by a product platform? What is an "information product?" What are the key elements of the "platform" of an information product? Why does understanding the elements of a "platform" matter? We will discuss the importance of good product architecture and its relationship to the organizational design of a new product development effort as well as to the overall product strategy of a firm.

To bring these papers alive, visit Sony's web site which shows the various models of Walkman cassette players: How many models are displayed? What are the differences among them from a customer perspective? How different do you expect they are from a design perspective? What would you expect Sony's production system to look like?

Should you wish to read additional material on product architecture and the implications of modular design, look at the following articles on reserve:


Class 12: Project Lab -- Customer and user needs and concept development
Friday, October 3rd

This lab will provide you an opportunity to review what you have learned about your customer and user needs and your first pass at concept generation with your project coach. See project instructions for more detail.


Class 13: Voice of the Customer Presentations
Wednesday, October 8th

This will be the first of three peer review opportunities you will have for your project. See project instructions for more detail. Come to class prepared to actively listen to your peers talk about their projects, ask them constructive questions and provide them feedback on the direction their projects are taking.


Class 14: Voice of the Customer Presentations
Friday, October 10th

See Class 13.


Class 15: Design for Usability: Role of Industrial Design and User Interface Design
Wednesday, October 15th

This class launches a three-session module on "design for x," where x refers to many aspects of design from manufacturability to serviceability to usability. We have chosen to focus on product usability, with one session on industrial design and user interface design, manufacturability and designing for environmental soundness. Each company chooses to focus on the specific "design for x" issues that are important in its industry.

Read CHAPTER 8: INDUSTRIAL DESIGN. Consider thought questions 1 and 3. In preparation for the OXO case, interview at least five users with experience using these three kitchen gadgets: peeler, can opener, pizza cutter. Ask the product users to describe what they like and don't like about the gadgets they use. List the specific responses to your questions on a piece of paper. At the bottom of the page, produce a summary of the important features of these products. Bring this paper and your favorite kitchen gadget to class for discussion.

Assignment due: Kitchen gadget assessment

Reference On-Line Case Study in Industrial Design: Cyclone Grinder Case with Ingersoll Rand.

While the case focuses on physical design principles (e.g., ergonomics), many of the same basic principles apply to design of software user interfaces. In preparation for class discussion, choose three of the user interface design rules listed below. First, interpret what they mean, and then use your favorite software package(s) to find examples of their implementation (or lack of implementation.)

Following is a list of user interface design rules that you may find helpful in your team's work:

(Note: This list was generated through an extensive survey of people working in the human-computer interface design field. Results of the survey are reported more extensively by Arnold M. Lund of Ameritech in "Expert Ratings of Rules of Thumb for Usability.")

Other rules: These rules should prove useful as you take your product prototypes out and test them with users. For a deeper understanding of design (industrial design, product design, architecture) and its role in business development, take Management of Technology course BA 296: Design as a Strategic Business Issue. You can find examples of great designs on the IDSA web site which shows winners of their annual design awards. A number of these designs are shown in the Business Week issue distributed in class. Examples of bad design can be found at www.baddesigns.com/index.shtml. Other Web and Interface Design resources can be found at: http://best.me.berkeley.edu/~aagogino/me290p/f97/resources.html/.

Note: There will be a guest speaker in the Evening class addressing this topic. You are welcome to join that session. See the end of the syllabus for details.


Class 16: Design for Manufacturability
Friday, October 17th

Read CHAPTER 9: DESIGN FOR MANUFACTURABILITY and prepare the case DESIGN FOR MANUFACTURABILITY AT MIDWEST INDUSTRIES. This case examines the implementation of design for manufacturability (DFM) at Midwest Industries, a $4 billion manufacturer of retail and self-service vending equipment. The case presents the experience of three different Midwest sites in using DFM tools and methods, and offers an opportunity to identify DFM and how a corporate staff group has tried to implement it in a decentralized company. Come to class prepared to discuss the following questions:
  1. What does DFM mean at Midwest? What is your evaluation of Thurlow's approach to implementing DFM at Midwest?
  2. Compare and evaluate the experience of Raleigh, Coventry, and Chicago in implementing DFM. What explains the outcomes you observe? What lessons should Midwest senior management draw from those experiences?
  3. Suppose you were given the job as Thurlow's replacement and charged with moving DFM off its plateau at Midwest. What would you do? Develop a plan of action.

To understand more about the manufacturing implications of new product designs, take Management of Technology course BA 296/ME 221: Intelligent Manufacturing Systems.

Reference On-Line Case Study in Design for Assembly and Manufacture: Mattel Color Spin and IBM Proprinter.


Class 17: Design for Environmental Soundness
Friday, October 22nd

Read EVALUATION FOR POST-MANUFACTURING ISSUES IN LIFE-CYCLE DESIGN and DESIGN FOR ENVIRONMENTABILITY. Come prepared to discuss the key issues in designing environmentally sound products and the means by which environmental considerations can be built into the design process. Observe examples in your everyday life of products that were and were not designed for environmental soundness. Would using environmental design principles make any difference to your projects?

Professor Paul Sheng will lead the class discussion. Dr. Sheng is currently Associate Professor in Mechanical Engineering, where his research interests are in laser material processing and green design and manufacturing. Dr. Sheng formed the Consortium on Green Design and Manufacturing in 1993 to develop multidisciplinary collaborations in product design-for-environment, manufacturing planning and organizational issues. Prior to arriving at Berkeley, Dr. Sheng served as Senior Project Engineer in the Advanced Manufacturing Staff at General Motors Corporation. Dr. Sheng received his Ph.D. in Mechanical Engineering from MIT in 1991.


Class 18: Project Lab: Concept development and selection
Friday, October 24th

This lab will focus on your concept selection process and the final product concept you have chosen. See project instructions for more detail.


Class 19: Prototype Development and Trade show Booth Preparation
Wednesday, October 29th

This class time is set aside for finalization of your product prototypes and trade show booths for Friday's class.


Class 20: Concept and Preliminary Prototype Peer Review
Friday, October 31st

We will conduct this class session in a "trade show" format. See project instructions for more detail.


Class 21: Economics of Product Development
Wednesday, November 5th

Read CHAPTER 11: ECONOMICS OF PRODUCT DEVELOPMENT PROJECTS and THE RETURN MAP by Price and House in Harvard Business Review (copies on reserve). Consider thought questions 1 and 2 at the end of the chapter. What do you like and dislike about the "return map?" We will discuss performance measurement, investment justification and cost accounting implications of new product development activities.


Class 22: Project Lab: Prototype review and product testing
Friday, November 7th

At this lab, you will present your final prototype design and discuss work you have already done, or plans you have to do work, in testing your prototype design with prospective users. See project instructions for more detail.


Class 23: Testing and Refinement: Taguchi Method and Failure Mode Analysis
Wednesday, November 12th

Read ROBUST QUALITY and THE TAGUCHI APPROACH TO PARAMETER DESIGN. What does "robust quality" mean? How does a good new product development team go about achieving it? Don Clausing has written a book called Total Quality Development. What do you suppose the title means? We will introduce the notion of failure mode analysis as well as review the Taguchi Method.

For your design project, make a list of key design parameters. (Note that these are the parameters you set through the details of your design . They are the elements of your project that most influence the performance of your product relative to the specifications you have established.) Bring your list to class.

Assignment due: Taguchi exercise handed out in class.


Class 24: Testing and Refinement: A Case Study
Friday, November 14th

Read CHAPTER 10: EFFECTIVE PROTOTYPING and prepare the case BMW: THE R-SERIES PROJECT for class discussion. This case focuses on a decision about how to prototype a product in development. Discussion of the alternatives provides insight into the different roles that prototyping can play in product development and why different prototyping approaches may be more or less appropriate within specific organizational and strategic contexts. The prototyping decision allows you to examine how the product development process influences product quality along such dimensions as conformance, performance and appearance.
  1. What are the causes and consequence of BMW's quality problems with newly launched products? What should be done to improve "launch quality?"
  2. What are your recommendations to Carl-Peter Forster concerning the 7-series prototypes? What should he do regarding future development projects?
  3. What changes would you recommend in the way BMW develops new models? What attributes of newly launched products would you expect to improve as a result of these recommendations? Which attributes might deteriorate?
  4. What recommendations would you make to Chairman von Kuenheim regarding BMW's strategy to compete against new Japanese entrants into the luxury car market?

Some of you may also be interested in reading


Class 25: Tools for Managing NPD Projects
Wednesday, November 19th

Read CHAPTER 12: MANAGING NEW PRODUCT DEVELOPMENT PROJECTS. Complete exercises 1, 2 and 3 at the end of the chapter and consider thought questions 3 and 4. List at least five lessons you have learned about project management based on your experience in this course. Bring them to class for discussion.

Assignment due: Exercises 1, 2 and 3 at the end of Chapter 12.


Class 26: Final Product Specification and Prototype
Friday, November 21st

This will be your last lab session with your project coach before the final trade show. See project instructions for more detail.


Class 27: Project Lab: Financial Analysis
Wednesday, November 26th

This lab will not involve your IDEO coaches, but rather will entail a review of your financial analyses to date. See project instructions for more detail.


Class 29: Class Review: NPD Team Management
Wednesday, December 3rd

Prepare QUANTUM CORPORATION -- BUSINESS AND PRODUCT TEAMS for class discussion. This case describes the multi-year effort at Quantum Corporation, a Silicon Valley-based disk drive company, to develop distinctive capability in new product development. That capability, based on heavyweight product teams under the direction of cross-functional business teams, has been the basis for success in the corporation's efforts to gain a commanding position in the 3.5" disk drive market. The case reviews the company's experience on a number of development teams and the evolution of business teams for each of its three primary businesses.
  1. What is required to be successful in the Winchester disk drive industry? What do you think accounts for Quantum's success?
  2. What is your evaluation of Quantum's progress to-date in developing and applying team concepts?
  3. How effective have the major teams been? What accounts for their primary differences in effectiveness?
  4. How would you recommend that Dave Brown address the team-related issues raised at the end of the case? Why? Are there other team issues that you would add as high priority on his list?
  5. Develop an overall plan of action for addressing these issues. How should they be linked to other aspects of Quantum's management approach? How should they measure and track their progress in implementing that plan? (Be specific as to actions taken, their timing, and the results expected.)


Class 30: Class Summary: Strategic Role of NPD
Friday, December 5th

Prepare the NEC case for class discussion. NEC competes in a variety of technology-intensive businesses by effectively leveraging its R&D resources. The case describes a series of projects that build capability in the development of supercomputers and mainframes. The projects highlight NEC's emphasis on discovering the system-level impact of technical choices and its focus on increasing capability by managing a coherent stream of projects that effectively build on each other. The impending emergence of new computer architectures is now threatening NEC's approach, however, because the company's existing capability base may soon become obsolete. Prepare the following question for class discussion:
  1. Analyze NEC's approach to the development of products based on advanced technologies. What are its critical elements?
  2. What are the advantages of NEC's approach? What are the drawbacks?
  3. There are three basic options for future projects to be performed by NEC's packaging engineering group. The first two focus on the requirements of developing a new traditional vector supercomputer by 1993 and a new mainframe by 1995. The third deals with the development of new parallel computer concepts. These efforts would precede a formally approved parallel computer project which would probably begin around the middle of 1992. The options focus on the bipolar packaging group which currently consists of 36 engineers. The CMOS packaging group is already stretched to its limit in developing packaging systems for laptops, personal computers, and workstations over the next three to four years.

As Watari, which of the above options would you choose and why?


Final Trade show
Saturday, December 13th, 12:30 - 3:30 p.m.

This final class session requires you to prepare a trade show booth to present you project to people who may wish to purchase rights to the product or fund its final development. See project instructions for more detail. Please note that this event will be held in the Wells Fargo Room on the 5th floor of Cheit Hall.


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Last updated: 26 October 97
Send Comments to: Alice Agogino, aagogino@euler.me.berkeley.edu
Copyright © 1997 Alice Agogino and Sara Beckman; All Rights Reserved.