2
                   Chapter 4
            Product Design
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                                                         3
       OBJECTIVES 
       Product Development Process
       Economic Analysis of 
         Development Projects
       Designing for the Customer
       Design for Manufacturability 
       Measuring Product Development 
         Performance
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                               Rights Reserved.
                                                            4
        Typical Phases of Product 
                   Development
         Planning
         Concept Development
         System-Level design
         Design Detail
         Testing and Refinement
         Production Ramp-up
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                                Rights Reserved.
                                                          5
           Economic Analysis of 
     Project Development Costs
      Using measurable factors to help 
        determine:
         –Operational design and development 
           decisions
         –Go/no-go milestones
      Building a Base-Case Financial Model
         –A financial model consisting of major 
           cash flows
         –Sensitivity Analysis for “what if” questions
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                               Rights Reserved.
                                                                           6
         Designing for the Customer 
                                House of Quality
                                   Ideal 
       Quality Function         Customer             Value Analysis/
       Deployment                                    Value Engineering
                                 Product
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                                         Rights Reserved.