Product Family and Product Portfolio design

Product PortfolioA set of different products offered by a companyat a given point of time.

Product architecture A hierarchical, structural description of each product,Often based on functional decomposition

Product Portfolio ArchitectureDescription of components/modules/systems of a set ofproducts (past, present, future) offered by the company

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Product Family and Product Portfolio design

Different products do not shareany components or modules[High sales volume]

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Product Family and Product Portfolio design

Products do not share components,Have adjustable input parameters

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Product Family and Product Portfolio design

series of products that share somemodules (software, hardware)

Images (c) Krups

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Product Family and Product Portfolio design

Each subsequent model enhances only some subset ofthe modules of theprevious generation

(a) Canon® IXUS 700, Feb 05 (b) Canon® IXUS 750, Aug 05

Same CCD, Lens; Different LCD, controls

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Product Family and Product Portfolio design

Architecture differentiatesmodules based on“module is consumable” or not

Examples:

Ink-cartridges for ink-jet printersfilm for film cameras, …

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Product Family and Product Portfolio design

Interface (mech, elec, software)follows a published standard

Canon EF-lens mount system

Bus-architecture in PC’s

Nvidia GeForce PCX 5750 ATI Radeon X300 (LE)

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Product Family and Product Portfolio design

modules may be parametricallymodified and fit into the productat the time they are ordered

Examples:PC modules

MICRON 1GB DDR2 533MHZ DIMM MODULE

MICRON 256MB DDR2 533MHZ DIMM MODULE

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Product Family and Product Portfolio design

Product designed and madeBased on customer-provided Engg spec

Example: Tsing Ma Bridge

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Fixed unsharedSingle

Adaptable

Modular

Modular family

Modular generations

Consumable

Standard

Parametric

CustomizedBespoke

Parametric

Product Family and Product Portfolio design

Customer configures productby selecting a series ofdifferent modules that make upthe product

Dell PCs, Automobiles, Swatch,MyBarbie, NIKEiD, …

Designing Portfolios with multiple products

1. Statistical method: the customer-market model

Interview customers identify reqts

SURVEYS: Importance of each reqt Identify target values (, ) for each reqt Identify time-variations of reqts

Segregate customer-base into segments (factor analysis)

Analyze specs for each segment for each requirement

1 2 … k pop

1 2 … k pop

Designing Portfolios with multiple products

1. Statistical methods: demand assessments via customer surveys

Possible decision tree

constant over time? modular generations

pop is large ? fixed unshared portfolio

segment ’s ≈ population ? modular families

parametric/adjustable portfolio (e.g. car seats)

N

Y

N

Y

N

Y

power saw

screwdriver

scumbuster

How to design Portfolios with multiple products

2. Functional Architecture: Break the product into functional modules

How to design Portfolios with multiple products

2. Functional Architecture: Break the product into functional modules

3. Systematic Design Approach for size-ranging (Pahl and Beitz)

How to design Portfolios with multiple products

Advantages of scaling:

(a) The products are geometrically similar

(b) We may use the same design drawings/models (change scale)

(c) Manufacturing benefits: e.g. pantographs, tooling design

Pahl and Beitz:

Optimal schemes use geometric scaling

Systematic Design Approach for size-ranging..

Scaling and Non-dimensional techniques

Length of a feature in the base design = L0,

Length of the same feature in a different size of model = L1

Two products are geometrically similar if, for each feature,

the ratio fL = L0 / L1

fL is non-dimensional

Systematic Design Approach for size-ranging..

Scaling and Non-dimensional techniques

Step 1. Find the functional characteristicStep 2. Find a non-dimensional constant related to the characteristicStep 3. Define size steps for functional characteristic in geometric seriesStep 4. Scale all geometric features to maintain same non-dimensional

constant value (functionality).

A simple heat sink

heat dissipation = K ( surface area)

scale factor fL area increases by fL2

increase in heat generation = K(fL )

=> heat sink may be scaled up by fL0.5

How to design Portfolios with multiple products

4. Taguchi’s Loss Function

Men’s dress shirts: 10 sizes

Each size: neck (collar length) and sleeve (arm length).

neck sizes increments: 1 cm sleeve lengths increments: 2 cm.

Person size ≠ nearest shirt size “Loss of Quality”

4. Taguchi’s Loss Function

Men’s dress shirts

Neck size = yTarget = m

If y ≠ m, there is a loss

Loss = L(y) = L( m + (y-m))

Using Taylor-series expansion:

L(m) + (y-m) L’(m)/ 1! + (y – m)2 L”(m)/ 2! + …

4. Taguchi’s method: Loss function..

Loss = L(y) = L( m + (y-m))

= L(m) + (y-m) L’(m)/ 1! + (y – m)2 L”(m)/ 2! + …

Taguchi’s Approximation: L(y) ≈ k( y – m)2

Ideally:(a) L(m) = 0 [if actual size = target size, Loss = 0], and

(b) When y = m, the loss is at its minimum, therefore L'(m) = 0

4. Taguchi’s Method: Loss Function…

Assume

tolerance limits : 1 and 2

neck size in range: [ m – 1, m + 2].

out-of-tolerance losses: 1 and 2

Assume over-size/under-size loss = $ 400 [out-of-limit]

L(y) = k( y – m)2y < m, k1 = 400/ 1

2

y > m, k2 = 400/ 22 .

4. Taguchi’s Method: Loss Function Example

Let 1 = 0.5 cm, and 2 = 1 cm,

k1 = 400/ 0.52 =1600, and k2 = 400/ 1.02 = 400,

loss function :

',)'(400

',)'(1600)(

2

2

mymy

mymyyL

If a person has a neck size = 40.2,

(i) Buy a size 40, => Loss of value = 1600 ( 40.2 – 40)2 = $64, Or (ii) Buy a size 41, => Loss of value = 400 ( 41 – 40.2)2 = $256.

4. Taguchi’s method: determination of size ranges

Break even point for customers:

1600( y – 40)2 = 400 ( 41 – y)2

y* = 40.33

Net loss to community:

If manufacturer offers only even sizes (40, 42, 44,…):

Break even point: 1600( y – 40)2 = 400 ( 42 – y)2, or y* = 40.67

Net loss to community:

3.59$)41(400)40(160041

33.40

233.40

40

2 dxxdxxL

237$)42(400)40(160042

67.40

267.40

40

2 dxxdxxL

4. Taguchi’s method: determination of size ranges

Break-even model:

Compare total consumer loss with manufacturer benefit/order

180$)8.41(400)40(16008.41

6.40

26.40

40

2 dxxdxxL

Estimate of manufacturer benefit: (retail price – production cost)

Example:

(retail price – production cost) = $180

Consumer loss on size ranges (40, 41, …) = $59.3 < $180

Consumer loss on size ranges (40, 42, …) = $237 > $180

Break even point: steps of 1.8cm

How to design Portfolios with multiple products

5. Systematic, Intuitive Methods

5.1. SCAMPER

5.2. Orthographic analysis

Step 1. List independent attributes

Step 2. Coordinate system, one axis per attribute

Step 3. List values along each axis

Step 4. Combine, Permute, Interpolate, Extrapolate

Orthographic analysis: Food Manufacturer Example

department storesrestaurants

frozen vegetablesfrozen mashed potatoes

fried potato chips department stores

Vegetable

Potato

Restaurant

Supermarket

Freeze

Mash

Fry

current products current clients

Orthographic analysis: Food Manufacturer Example

Combine (processes): “fry” + “mash” hash-browns

Combine (materials): potato + vegetable vegetarian patty

Permute: fry vegetables vegetable chips

Extrapolate: add fruits banana chips

Interpolate: half cooked potato chips refry-to-eat

Vegetable

Potato

Restaurant

Supermarket

Freeze

Mash

Fry