BA 290A-2 and ME290P
Fall 1998

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: Available from University Copies at the Haas School of Business (Helzel Room). Changed slightly from last year.

On-Line Resources: Supplemental on-line readings to support projects.


Class 1: Introduction to New Product Development (NPD)

Wednesday, August 26th

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.

Class 2: Product Development Environment -- Strategic Alignment

Friday, August 28th

Read THE CONCEPT OF A DEVELOPMENT STRATEGY and prepare the NEW PRODUCT DEVELOPMENT AT CANON: THE CONTACT SENSOR PROJECT 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. Canon is one of the leading innovators in the world. This case describes the processes by which Canon manages the flow of ideas from basic science to new products, and how it harnesses product innovation to a strategy of diversification. Its process is an unusual one, meriting close examination. What are the key elements of Canon's new product development process? What are the elements that contribute most to its success? What challenges do you suppose Canon's faces in maintaining its current approach to growth and innovation? How does Canon's approach compare with the mapping processes proposed in today's reading?

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.

Class 3: Delta -- A Design Exercise

Wednesday, September 2nd

ASSIGNMENT DUE IN CLASS TODAY: 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 TODAY'S IN-CLASS EXERCISE: Re-read DELTA -- A DESIGN EXERCISE and prepare 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 ARE TO WRITE UP YOUR OBSERVATIONS ABOUT THE EXERCISE TO BE TURNED IN ON WEDNESDAY, SEPTEMBER 9TH. YOU MAY WANT TO WRITE DOWN SOME NOTES IMMEDIATELY FOLLOWING COMPLETION OF THE EXERCISE WHILE THEY ARE FRESH IN YOUR MINDS. (SEE QUESTIONS UNDER "ASSIGNMENT DUE SEPTEMBER 9TH.)

Due at the end of the Delta Design exercise:

Class 4: Project Proposals and Team Assignments

Friday, September 4th

ASSIGNMENT DUE IN CLASS TODAY: List of product ideas -- see project assignments at the end of the syllabus.

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. See instructions for the design project for more detail. By the end of the class session, you should have full understanding of all of the possible project concepts. NO ADDITIONAL PROJECT PROPOSALS WILL BE ACCEPTED AFTER THE END OF CLASS!!

NOTE: Project preferences are due by 5 p.m Saturday September 5th.

Class 5: Product Development Environment -- The New Product Development Process

Wednesday, September 9th

ASSIGNMENT DUE IN CLASS TODAY: Observations on the Delta Design Exercise. In 2-3 pages, please address the following questions surrounding your experience of the Delta Design Exercise:

Read CHAPTER 12: MANAGING PRODUCT DEVELOPMENT PROJECTS and prepare the HONEYWELL RESIDENTIAL DIVISION -- NEW PRODUCT DEVELOPMENT 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?

Class 6: Product Development Environment -- Project Organization

Friday, September 11th

Read ANOTHER LOOK AT HOW TOYOTA INTEGRATES PRODUCT DEVELOPMENT and THE DISCIPLINE OF TEAMS. 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. Guest Speakers from Quantum.

  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.)

What does the Discipline of Teams 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 in your projects? 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?

The Toyota paper presents a rather contrary view of the use of teams. What arguments do they make that contradict the arguments of the other readings? In what ways are their arguments consistent with those of the other readings?

Class 7: Concept Development -- Customer and User Needs Assessment

Wednesday, September 16th

ASSIGNMENT DUE IN CLASS 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 as described in Chapter 3. Prepare a one-page summary of what you have learned. (You may wish to use this opportunity to capture information for your project -- perhaps interviewing someone about use of a competing product!)

Read CHAPTER 3: IDENTIFYING CUSTOMER NEEDS and SPARK INNOVATION THROUGH EMPATHIC DESIGN by Leonard and Rayport. Consider the thought questions at the end of Chapter 3 and be prepared to discuss them. What is "empathic design?" Is it a technique that will be useful for your projects?

Class 8: Concept Development: An Industry Perspective

Friday, September 18th

PROJECT DELIVERABLE DUE IN CLASS TODAY: Mission Statement -- see project assignments

Read LISTENING TO THE CUSTOMER -- THE CONCEPT OF A SERVICE-QUALITY INFORMATION SYSTEM by Berry and Parasuraman. 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?

Guest Speaker Bob Hull from GVO.

Class 9: LAB -- Mission Statement and Customer/User Needs Assessment Planning

Wednesday, September 23rd

This is the first of five "lab" sessions we will have during the semester. These are times that we are setting aside for work on your product development projects. We expect that you will use this time to meet in your groups, and to interact with the various "coaches" we will make available to you during the semester. In today's lab, we ask that you meet with one of the faculty members to discuss your mission statement and plans for conducting customer/user needs analysis. (We may have other "coaches" available as well.)

Also Scott Luebking will give a short presentation on Designing Web Sites.

Class 10: Concept Development: Translating the Voice of the Customer

Friday, September 25th

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:

  1. Using your own perspective, what are the most important user needs in the water purifier market? You might want to interview a few wilderness enthusiasts to help answer this question.

  2. How can you structure this users needs data to assist Sandy Platter in creating his product concept?

  3. How do competitors' products meet those needs?

  4. What characterizes an outstanding concept for a water purification device for backpackers and other outdoor enthusiasts?

Class 11: Concept Development -- Concept Generation

Wednesday, September 30th

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.

Slides on Conceptual Blockbusting and Slides on Brain Storming

Class 12: Successive Concept Generation

Friday, October 2nd

Guest Speaker: Prof. Jami Shah, Arizona State University. Note, this is a change from the original schedule. The Concept Selection readings and assignments have been moved to Class 15, Oct. 14, 1998.

Class 13: Voice of the Customer Presentations

Wednesday, October 7th

PROJECT DELIVERABLE DUE IN CLASS TODAY: Customer/user needs assessment -- see project instructions.

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 9th

See Class 13.

Class 15: Concept Selection and Tools Used in NPD -- Economics of Product Development

Wednesday, October 14th

ASSIGNMENT DUE IN CLASS TODAY: Complete exercises 3 and 4 at the end of Chapter 6.

Concept Selection: 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.

Economics of Product Development: We will spend the next four class sessions talking about specific tools that are used in the new product development process. These range from economic analysis tools to information systems and prototyping. 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 16: Tools Used in NPD -- Product Architecture and Positioning

Friday, October 16th

Read CHAPTER 7: PRODUCT ARCHITECTURE and THE PRODUCT FAMILY AND THE DYNAMICS OF CORE CAPABILITY 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. What do Meyer and Zack mean by a product platform? What are the benefits of having product platforms? What is the connection between product platforms and the development of core capabilities? 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 and Discman products. The following addresses will get you in the general vicinity.

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?

General Electric Circuit Breaker Case.

Class 17: Tools Used in NPD -- CAD Systems

Wednesday, October 21st

PROJECT DELIVERABLE DUE IN CLASS TODAY: Concept sketches -- see project instructions.

Read HOW TOOLS AND TECHNIQUES IN CONCURRENT ENGINEERING CONTRIBUTE TOWARDS EASING COOPERATION, CREATIVITY AND UNCERTAINTY. Examine the CAD products offered by:

What do these products do? What are the implications of their use for a product development team?

We'll focus our class discussion on the various CAD tools available and on planned advances in their functionality.

Also see Introductory Slides, Lecture Slides on Rapid Prototyping for the Boeing 777 Project and associated Boeing 777 Case Study.

Class 18: Tools Used in NPD -- Physical Prototypes

Friday, October 23rd

Read CHAPTER 10: EFFECTIVE PROTOTYPING and THE CULTURE(S) OF PROTOTYPING. In addition, the supplemental reading today has been changed to the BMW: The 7-Series Project (A) case. You are to prepare it in lieu of reading the Schrage article for Friday's class, as it will allow us to bring alive the issues surrounding prototyping in a real setting. The following is the background and some questions to go with the case:

The case focuses on a decision about how to prototype a product in development. The prototyping issue is a microcosm of a broader strategic dilemma facing BMW. Specifically, BMW's position relative to Japanese luxury cars is called into question. We'll discuss this broader strategic context as well as the specific issues associated with prototyping.

Prepare the following questions for discussion.

  1. What are the causes and consequences of BMW's quality problems with newly launched product? 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 vonKuenheim regarding BMW's strategy to compete against new Japanese entrants into the luxury car market?

Class 19: LAB -- Concept Development and Selection

Wednesday, October 28th

This lab will focus on concept prototyping with a guest from GVO. Also see Notes on Prototyping.

Class 20: Concept Peer Review Tradeshow

Friday, October 30th

PROJECT DELIVERABLE DUE: Concept selection matrices and final product sketch -- see project instructions.

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

Class 21: Design for Usability -- Role of Industrial Design and User Interface Design

Wednesday, November 4th

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 each 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, the OXO INTERNATIONAL case and GETTING A GRIP ON KITCHEN TOOLS which is in the @Issue journal handed out in class. Consider thought questions 1 and 3. The OXO International case provides a good overview of the tactical concerns of actually bringing a new product to market. What role does "design" play in the OXO product lines? What strategy do you recommend that Alex Lee pursue? What will he have to do to maintain the OXO image?

While the case and associated article focus 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 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. Examples of bad design can be found at www.baddesigns.com/index.shtml.

Class 22: LAB -- Finalize Prototype Development and Plan for Test with Customers

Friday, November 6th

PROJECT DELIVERABLE DUE: Final product specifications -- see project instructions.

Class 23: Design for Manufacturability

Wednesday, November 11th

Read CHAPTER 9: DESIGN FOR MANUFACTURABILITY and prepare the case INTEL SYSTEMS GROUP. Intel's Systems Group is seeking to respond to a major change in strategic objectives. The case provides an opportunity to analyze the impact of this shift at several different levels, and investigate the tensions that are arising in the product development and manufacturing organizations. Address the following questions as you read the case:

  1. Intel recently has made a strategic shift towards high volume personal computer manufacturing. What are the reasons for the shift? What is your evaluation of their progress to date in operationalizing the new objectives?

  2. What is your evaluation of the performance of the X-2 project so far?

  3. What would you recommend concerning the transfer of the X-4 into production? What are your realistic alternatives, as vice president of manufacturing?

  4. Prepare a specific set of recommendations and an implementation plan to present to Intel top management concerning improvements in Intel Systems Group operations.

You might also want to check out the Mattel toy case in our Multimedia Case Studies library.

Fred Rosenzweig, Executive VP of Operations, from EPI (Electronics for Imaging) spoke to the evening class on Design for Manufacturability. His slides cover DFM and prototype testing at EPI.

Class 24: Design for Environmental Soundness

Friday, November 13th

Read QUANTITATIVE EVALUATION OF PRODUCT DISASSEMBLY FOR RECYCLING. 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?

Guest Speaker: Tse-Sung Wu from the Consortium for Green Design and Mfg at UC Berkeley.

Class 25: Intellectual Property Rights

Wednesday, November 18th

We have shifted the schedule to accommodate a guest speaker on the issue of intellectual property and patent rights. On Wednesday, November 18th, Anthony deAlcuaz, a partner at Howard, Rice, Nemerovski, Canady, Falk & Rabkin, will join the class to talk about these issues. The Testing and Refinement readings have been moved to Friday, Nov. 20.

Class 26: Testing and Refinement: Taguchi Method and Failure Mode Analysis

Friday, November 20th

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.

Slides on Airplane Experiments using an Orthogonal Array.

Class 27: Testing and Refinement: A Case Study

Wednesday, November 25th

Prepare TEAM NEW ZEALAND (A). The focus of this case is on the role of experimentation in new product development. It exposes the subtle challenges of using simulation as an experimentation tool. It also highlights issues associated with integrating knowledge gained through experimentation with knowledge gained from experience. Address the following questions as you read the case:

  1. How would you evaluate Team New Zealand's use of simulation in the design process? What are its advantages and disadvantages? How did their approach to simulation differ from that used by other syndicates?

  2. Which yacht construction strategy should Team New Zealand follow? Why? How much improvement would you expect from each?

  3. What would you advise Team New Zealand to do: Two similar boats now, two different boats now, or one boat now and one boat later?

PROJECT DELIVERABLE DUE: Financial analysis -- see project instructions.

Class 29: Class Summary -- Putting the Projects Back in Context

Wednesday, December 2nd

In the last two class sessions, we will return to a broad view of the product development process. Prepare the SILICON GRAPHICS, INC. case for class discussion. The case closely examines a "flexible" product development process and the supporting organizational culture and structure. Answer the following questions

  1. Put yourself in Ron Bernal's position. Would you commit to shipping Challenge by the end of March? Why or why not?

  2. How would you characterize SGI's development process, strategy and culture?

  3. Is the approach SGI follows sustainable? Why, why not?

Silicon Graphics Web Site: http://www.sgi.com/

Class 30: Class Summary -- A View of the Future

Friday, December 4th

Prepare LIVING ON INTERNET TIME: PRODUCT DEVELOPMENT AT NETSCAPE, MICROSOFT, YAHOO! AND NETDYNAMICS. What are the similarities and differences among the four approaches to product development? What drives these differences?

Final Tradeshow

Saturday, December 12th, 8:00 a.m. - 12:00 p.m.

This final class session requires you to prepare a tradeshow booth to present your 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: 2 December1998
Send Comments to: Alice Agogino, aagogino@me.berkeley.edu
Copyright © 1998 Alice Agogino and Sara Beckman; All Rights Reserved.