Towards Managing Long-Term Uncertainties in Product Development

Author(s):  
Whitfield J. Fowler ◽  
Kos Ishii

Under increasingly uncertain environment of long term life-cycle costs arising from such causes such as material price increases and carbon regulation, product development design decision makers need an improved method for evaluating project net present value under significant risks. This paper seeks to expose this need for an interdisciplinary design method capable of proactively managing long-term uncertainties and risks. First, the paper provides an overview of trends and uncertainties in material prices and environmental regulations. Second, we highlight a variety of existing work relevant to this research. The third section describes Customer Value Chain Analysis and Quality Function Deployment exercises towards addressing the nature of the challenge at hand. The study found that the primary customers for this research are engineering managers involved in strategic product development decisions. The most important aspects of a new methodology are to identify and characterize the uncertainties specific to a project, and to facilitate modeling. The final section describes a research path leading towards the development of a new design methodology. The paper concludes that a new framework will draw upon a variety of fields including Design For Reliability, Decision Analysis, Industrial Ecology, and Informatics.

Author(s):  
Krista M. Donaldson ◽  
Kosuke Ishii ◽  
Sheri D. Sheppard

Customer Value Chain Analysis (CVCA) is an original methodological tool that enables design teams in the product definition phase to comprehensively identify pertinent stakeholders, their relationships with each other, and their role in the product’s life cycle. By performing CVCA, design teams are better able to recognize diverse product requirements and their relative priority for undertaking Product Definition Assessment and downstream Design for X (DfX) tools, such as Quality Function Deployment (QFD) and Failure Modes and Effects Analysis (FMEA). This paper discusses the evolution of the CVCA in response to the need for a DfX tool which is able to delineate customer needs early in the product development process. A step-by-step guide clarifies the implementation of CVCA with an example. Further, three case studies highlight the tool’s broad utility and important features to support design decision-making, including: 1) confirmation of the product’s business model, 2) recognition of the critical stake-holders, and 3) clarification of the value proposition to be embedded in the product.


Author(s):  
Karthik Manohar ◽  
Kosuke Ishii

This paper describes the first phase of the authors’ Design for Supply Chain research that seeks to address supply chain excellence the product design process. In a global economy, companies must address supply chain issues beyond the traditional viewpoint of logistics, trucking, warehousing and include other considerations that affects design and manufacturing decisions. To include supply chain perspectives in the design of products and manufacturing processes, supply chain performance data play a critical role. This paper examines the source of data pertinent to design for supply chain using methods such as Customer Value Chain Analysis and Quality Function Deployment. A multi-industry benchmarking study also highlights the different approaches to Design for Supply Chain and emerging challenges of Social and Environmentally Responsible Supply Chains. The study revealed that lead time, quality and social/environmental metrics are the most important metrics for design for supply chain. Future research will address the refinement of metrics, the definition of the relevant data for product design, and effective approaches to incorporate the information into the product definition process.


The ultimate goal of price value chain analysis is building an organizational capability for developing sustainable response in the market as well as among the consumers. This chapter highlights that the price-value chain is directly associated with the profit and growth of the company that is stimulated by customer preferences on price and brand loyalty. The customer satisfaction is largely influenced by the quality of price, perceived use value of products and services, and the value for money with reference to the prices offered by the firm. Hence, the price-value chain is created by customer satisfaction, perceived use value, loyalty, productive employees of the firm, and competitive advantage in price offerings. Approaches for measuring the customer value as an intangible factor, which has a significant role in influencing the buying decisions is also discussed in this chapter.


Author(s):  
Ben Clegg ◽  
Boon Tan

This article reports on a framework that has been successfully used to analyze the e-business capabilities of an organization with a view to developing their e-capability maturity levels. This should be the first stage of any systems development project. The framework has been used widely within start-up companies and well-established companies both large and small; it has been deployed in the service and manufacturing sectors. It has been applied by practitioners and consultants to help improve e-business capability levels, and by academics for teaching and research purposes at graduate and undergraduate levels. This article will provide an account of the unique e-business planning and analysis framework (E-PAF) and demonstrate how it works via an abridged version of a case study (selected from hundreds that have been produced). This will include a brief account of the three techniques that are integrated to form the analysis framework: quality function deployment (QFD) (Akao, 1972), the balanced scorecard (BSC) (Kaplan & Norton, 1992), and value chain analysis (VCA) (Porter, 1985). The case study extract is based on an online community and dating agency service identified as VirtualCom which has been produced through a consulting assignment with the founding directors of that company and has not been published previously. It has been chosen because it gives a concise, comprehensive example from an industry that is relatively easy to relate to.


2013 ◽  
Vol 4 (1) ◽  
Author(s):  
Raffaela Leane Zenni Tanure ◽  
Aline Marian Callegaro ◽  
Amanda Sória Buss ◽  
Márcia Elisa Soares Echeveste ◽  
Istefani Carísio de Paula ◽  
...  

Author(s):  
Sun K. Kim ◽  
Kosuke Ishii ◽  
Kurt A. Beiter

Designing amorphous systems is difficult. Not only does the design team have to deal with various building blocks, such as hardware, software, service, infrastructure, and policy, but there are communication challenges among team members with different domain-expertise. This research begins with the observation that, at the onset of an amorphous system-oriented project, design teams struggle because they are limited to knowledge of less than 4 W’s of the 6 W’s (Where, What, Who, When, Why, How) rather than detailed functional or structural specifications. The proposed scenario-based approaches enable design teams to effectively deal with ambiguity and to communicate their ideas among the team as well as with customers and managers through a common language. The framework is based on conventional dfX (Design for X), but new methods such as the Scenario Graph, the Scenario Menu, and Dynamic-Customer Value Chain Analysis (D-CVCA) help design teams through the exploration stage of a new system development. The integrated framework guides the design teams in visualizing scenarios, making decisions, and building a sound business model for an amorphous system.


2006 ◽  
Vol 16 (4) ◽  
pp. 174-183 ◽  
Author(s):  
Krista M. Donaldson ◽  
Kosuke Ishii ◽  
Sheri D. Sheppard

2013 ◽  
Vol 2013 ◽  
pp. 1-7 ◽  
Author(s):  
Chang-Tzuoh Wu ◽  
Tien-Szu Pan ◽  
Ming-Hui Shao ◽  
Chang-Shiann Wu

In this paper, a systematic innovation procedure has been developed based on quality function deployment and extension method. Besides, the evaluation method for design decision making has also been discussed and developed. The major procedure of QFD is to identify the customers’ needs for the product and then convert into appropriate technical measures to fulfill the needs based on the company’s competitive priorities. The priorities of product characteristics can be obtained by translating important technical measures. According to their characteristics, the prior engineering parameters will be identified and selected as the key requirements to redesign. This paper will focus on the integration of QFD and extension method. With the help of “matter element theory and extension method,” customer requirements (CRs) can be transferred into product design attributes more comprehensively and deeply. According to the idea of loss function of Taguchi quality design method, the criteria for design decision making have also been developed in this paper. An innovative design case, bicycle, successfully demonstrates that the proposed design process is feasible and efficient.


2007 ◽  
Vol 04 (03) ◽  
pp. 241-265 ◽  
Author(s):  
BOON L. TAN ◽  
DAVID J. BENNETT

With a wide diversity of available technologies, it is extremely problematic for SMEs to identify, plan, prioritize and use the correct strategy. Electronic-manufacturing has been evolving for some time, but currently an effective planning framework to assist managers with implementing electronic-manufacturing planning is still lacking. A framework, built around three elements: the Balanced Scorecard, Quality Function Deployment and Value Chain Analysis, is proposed here to assist SMEs in managing complexity in e-manufacturing planning. A case study, carried out in Singapore, demonstrates the practicality and utility of the framework in the context of a real business environment.


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