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Overview

Optimize Every Stage of Your Product Development and Commercialization

To remain competitive, companies must become more effective at identifying, developing, and commercializing new products and services. Design for Six Sigma (DFSS) is the most powerful approach available for achieving these goals reliably and efficiently. Now, for the first time, there's a comprehensive, hands-on guide to utilizing DFSS in real-world product development.

Using a start-to-finish case study, a practical roadmap, and easy-to-use templates, Commercializing Great Products with Design for Six Sigma shows how to optimize every stage of product commercialization. Drawing on a combined sixty-five years of product experience, the authors show how to make better product and portfolio decisions; develop better business cases and benefits assessments; create better concepts and designs; scale up manufacturing more effectively; and execute better launches.

Learn how to

  • Establish infrastructure to support successful commercialization
  • Use Stage-Gate® processes to minimize risk and optimize the use of people and resources
  • Create better plans: Segment markets, define product value, estimate financial value, and position new products for success
  • Capture the "Voice of the Customer," analyze it, and use it to drive development
  • Choose the right tools: Ideation, Pugh Concept Selection, QFD, TRIZ, and many more
  • Develop better products and processes: Process Maps, Cause and Effects Matrices, Failure Modes and Effects Analysis, Statistical Design and Data Analysis Tools, and more
  • Test and improve product performance and reliability
  • Perform Post Mortems and apply what you've learned to your next project

Whether you're an executive, engineer, designer, marketer, or quality-control professional, Commercializing Great Products with Design for Six Sigma will help you identify more valuable product concepts and translate them into high-impact revenue sources.

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Product Details

  • ISBN-13: 9780132385992
  • Publisher: Prentice Hall
  • Publication date: 11/7/2006
  • Edition description: New Edition
  • Edition number: 1
  • Pages: 656
  • Product dimensions: 7.32 (w) x 9.50 (h) x 1.49 (d)

Meet the Author

Randy C. Perry is a master consultant and program manager with Sigma Breakthrough Technologies, Inc. (SBTI), one of the world's leading professional services firms specializing in Six Sigma and Lean deployments. He has consulted and trained with Seagate, Eastman Chemical, Tyco, Celanese, BASF, and other leading firms. He is a certified Six Sigma Blackbelt.

David W. Bacon, SBTI master consultant, is responsible for program development and training in SBTI's Master Blackbelt program.

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Read an Excerpt

Commercializing Great Products with Design for Six Sigma is a unique book that demonstrates the business value of DFSS in today's highly competitive business environment. Any business that strives for greatness must offer its customers a portfolio of great products. Successful development and commercialization of new products is required of all companies—not only for their growth, but for their survival. Because all products are subject to a product life cycle, companies not continuously updating product lines to meet the changing needs of key markets are faced with stagnation, diminished profits, and bankruptcy.

Commercializing Great Products with Design for Six Sigma is a complete look at the steps companies must follow in order to successfully bring new products to market. The book answers the following three fundamental questions:

  • Why should Design for Six Sigma (DFSS) be used in a new product commercialization?
  • What steps and tools are required to commercialize products with DFSS and in what sequence should they be executed?
  • How should the DFSS methodology be used to develop and bring new plans to market?

Using the tools of DFSS, the book presents step-by-step instructions for business case development, market analysis, product concept development, product design, manufacturing scale-up, and product launch. This book will help business managers and design teams to identify the product concepts that are important to their customers and to efficiently translate those concepts into high-impact sources of new income. Along with a step-by-step discussion of key DFSS tools and road-maps, the book contains a detailedcase study example that illustrates tool execution and linkages. You can find supplementary materials, including tool application examples in a complete Excel-based commercialization case study and data sets used to perform statistical analysis in Minitab and Crystal Ball, on the book's Web page, http://www.prenhallprofessional.com/title/0132385996. Why We Wrote This Book

Having worked in industry developing new products for many years, we passionately believe that companies must stay on the cutting edge of product design in order to remain competitive in today's global business environment. We wrote this book not only to inspire senior business leaders, marketing staff, and technical staff to expect great results from their new product development programs, but also to demonstrate how these results can be achieved. Through a detailed case study example, we demonstrate to leaders and practitioners alike how to apply the principles of DFSS in the identification and development of new products and services. In the text, we give step-by-step instructions along with easy-to-use templates and examples for the use of required tools. We discuss and demonstrate the use of each tool in sequence, as shown in the DFSS commercialization roadmap presented in the book.

In Commercializing Great Products with Design for Six Sigma, we provide a practical, "how to" guide for the use of DFSS in product commercialization. The product development techniques and roadmaps presented in this book have evolved throughout our combined 65 years of experience in product commercialization. Many of the fundamental concepts presented were learned, developed, and enhanced during the courses of our individual careers. Randy Perry has worked in product commercialization for 25 years, including 18 years at AlliedSignal (now Honeywell), where, under the leadership of CEO Larry Bossidy, Six Sigma became a weapon to drive growth and productivity improvement. David Bacon, inspired as a graduate student by his former research supervisor George Box, has more than 40 years of experience as an engineering professor and industrial consultant. The tools and roadmaps described in this book continue to be expanded, refined, and improved through work with a diverse array of corporate clients and fellow consultants. An Overview of the Content

Commercializing Great Products with Design for Six Sigma consists of five sections: (I) Getting Started, (II) Preparing the Business Plan, (III) The Voice of the Customer, (IV) Product/Process Development, and (V) Product Launch and Project Post-Mortem Analysis. Within these sections, the book contains 38 chapters and follows the development of a new product or service from busi*ness concept through final product launch. This section provides a brief description of each section and the chapters within it.Section I: Getting Started

In this section, we begin by summarizing the history of Six Sigma and of Design for Six Sigma before quickly moving into a discussion of key business infrastructure needed to support a successful commercialization program. The section begins with a brief overview of how companies, markets, and products are constantly changing, and how these forces of change drive the need for new products. After a detailed discussion of how financial metrics are used to measure the value of DFSS, the first section concludes with a discussion of how to select new projects and manage the company's new-product portfolio.

In Chapter 1, we begin with the overview, "What Is Design for Six Sigma?" In this chapter, we trace the history of Six Sigma and discuss various DFSS roadmaps in use for new product commercialization today.

In Chapter 2, "The Business Case for DFSS," we discuss why business management should aggressively work to implement DFSS in the company's new product development processes. In this chapter, we demonstrate and discuss the devastating consequences of failing to continually replenish the company's pipeline of new products.

In Chapter 3, "Six Sigma Financial Metrics," we present a detailed look at how to place a value on Design for Six Sigma projects. Assessing the financial value of DFSS projects is critical as we track the benefits realized by improving our knowledge of customer needs and reducing product development rework. In this chapter, we introduce the Candy Wrapper Film Case Study, which is used throughout the remainder of the book to illustrate precisely how and when required DFSS tools are to be executed.

In Chapter 4, "Project Identification and Portfolio Management," we discuss the critical need for a dynamic project selection process. The commercialization pipeline of new products represents a company's future. Careful tracking and management of this product portfolio using the methods discussed in this chapter are essential.

In Chapter 5, "Stage-Gate Processes," we discuss the general concept behind the use of Stage-Gate in product commercialization. The benefits of using Stage-Gate to minimize the risk of using people, time, and money inefficiently on projects are examined.

In Chapter 6, "Project Management," we discuss the need for project management discipline to produce the Stage-Gate deliverables. A review of good project management techniques is presented. Section II: Preparing the Business Plan

In Section II, we deal with the preparation of a business plan for a new product. We discuss various key components of a business plan in detail, including performing market segmentation, identifying market opportunities, defining product value, and estimating the financial value of a project. We end this section with a discussion of how to best position a new product for success in the marketplace.

In Chapter 7, "Business Plan Overview," the concept of developing a business plan to describe the business, marketing, and operating strategy for a new product is introduced. The contents of a good business plan are presented and reviewed.

In Chapter 8, "Market Segmentation," the value of strategically grouping customers having similar characteristics and needs with the goal of improving overall business pro*tability is discussed. Methods and techniques for segmenting markets are presented.

In Chapter 9, "Identifying Market Opportunities," two specific tools for examining new market opportunities—the Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis and the Market Failure Modes and Effects Analysis (FMEA)—are discussed. Specific instructions and an example for execution of each of these tools are presented.

In Chapter 10, "Defining Product Value," the concept of customer value is introduced. In this chapter, we discuss how customers buy products based on value, not based on price. A discussion of value chain mapping techniques and how this information can be used in making strategic decisions is presented.

In Chapter 11, "Estimating Financial Value," methods to estimate the financial value for a product under development are discussed. Financial Excel models are constructed and sensitivity analyses using Crystal Ball are conducted.

In Chapter 12, "Product Positioning," two primary tools for product positioning are discussed: the Market Perceived Quality Profile and the Product Positioning Map. The purpose of these tools is to establish what major product and service attributes most influence a customer's decision to purchase products and then to define how our current products are positioned compared to those of competitors in these key requirement areas. Section III: The Voice of the Customer

In Section III, we provide an in-depth discussion of how to gather and analyze "The Voice of the Customer." In this section, we emphasize techniques to identify the business-critical needs of key customers, and then we explore the use of interview techniques that allow us to examine these needs more deeply. We continue our discussion in Section III with a detailed look at the use of KJ Analysis to determine which needs identified during customer interviews are most important. Later in the section, we examine new product ideation and concept generation/selection techniques. We end Section III with a detailed discussion of Quality Function Deployment (QFD) and how this key tool is used to develop key product and process specifications.

In Chapter 13, "Concept Development," we discuss a series of specific tools tied together in a roadmap format with the intent of developing the best product to meet the needs of a given market. Concept development is a unique approach to product or service development and provides a structured methodology for dealing with the "fuzzy front end" of product development.

In Chapter 14, "Developing the Interview Guide," we discuss a well-defined process for developing an interview guide to be used in interviewing customers.

In Chapter 15, "Conducting Customer Interviews," specific techniques are presented for interviewing customers and collecting needed Voice of the Customer information.

In Chapter 16, "KJ Analysis," we discuss the KJ process for analyzing Voice of the Customer interview results in order to capture the most important customer requirements for our new product or process.

In Chapter 17, "Relative Importance Survey," we review the importance of a follow-up customer survey to confirm or modify the importance ratings of customer requirements resulting from the KJ Analysis. Specific examples of surveys and survey analysis techniques are presented.

In Chapter 18, "Ideation," a method for developing innovative product solution ideas is discussed and demonstrated using the Candy Wrapper Film Case Study.

In Chapter 19, "Pugh Concept Selection," the Pugh Concept method for selecting the best overall product concept is presented. A detailed example of how the Pugh method is executed is discussed.

In Chapter 20, "QFD," the Quality Function Deployment (QFD) tool is reviewed in depth. Specific execution details for QFD are presented and the flowdown nature of QFD is demonstrated.

In Chapter 21, "TRIZ," the use of the TRIZ (pronounced "TREEZ") methodology—developed by the Russian engineer and scientist Genrich Altshuller to resolve significant technical conflicts identified in the QFD roof—is discussed.

In Chapter 22, "Critical Parameter Management," the development and use of critical parameter scorecards to ensure that critical parameters identified through the QFD process meet process capability requirements are presented. Section IV: Product/Process Development

Section IV covers the fundamental technical tools needed for product and process development. This section begins with a discussion of Process Mapping and continues with detailed examination of the use of the Cause and Effects Matrix, Failure Modes and Effects Analysis, basic statistical tools, measurement systems analysis, process capability, tools for data analysis, design of experiments, robust design, mixture experiments, and multiple response optimization. The section ends with a review of how to scale up a process from pilot scale to full-scale production with a well-defined control plan.

In Chapter 23, "Process Mapping," we demonstrate the techniques required to develop good process maps. We also demonstrate how process mapping interfaces with the QFD analysis.

In Chapter 24, "Cause and Effects Matrix," the tools and techniques for development of the C&E Matrix are presented. In this chapter, we show how the C&E Matrix links to the QFD process.

In Chapter 25, "Failure Modes and Effects Analysis," we discuss the process for identifying critical failure modes and their causes for both process design and manufacturing.

In Chapter 26, "Statistical Analysis Tools Overview," we explore key basic statistical analysis techniques. Graphical and numerical analysis approaches using detailed Minitab instructions and output are presented.

In Chapter 27, "Measurement Systems Analysis," we discuss the importance of good measurement systems in product development. In this chapter, we present step-by-step instructions and examples of how assessments of measurement systems are conducted using Minitab.

In Chapter 28, "Process Capability," we discuss methods for determining how well product or process performance satisfies specifications. We present commonly used indices for process capability and demonstrate how process capability analysis is conducted using Minitab.

In Chapter 29, "Tools for Data Analysis," we demonstrate in detail techniques for identifying underlying relationships in data. Using Minitab and the Candy Wrapper Film Case Study, detailed instructions are given for a variety of statistical analysis techniques, including t tests, analysis of variance, correlation, regression, and nonparametric statistical analysis. Discussions of con*dence intervals, sample size calculation, and control charting are also presented.

In Chapter 30, "Design of Experiments," we discuss techniques for conducting commonly used designed experiments. Full Factorial, Fractional Factorial, and Response Surface designs are discussed in detail.

In Chapter 31, "Robust Design," we discuss concepts and methods for designing a product or process to resist the impact of noise. Specific robust design approaches and examples are presented.

In Chapter 32, "Mixture Experiments," we discuss the use of experimental design techniques to determine the optimum formulation for a product that contains multiple components.

In Chapter 33, "Seeking an Optimal Solution," approaches are presented for simultaneously optimizing multiple performance characteristics in product development. Techniques using Minitab, Excel, and Crystal Ball are demonstrated using the Candy Wrapper Film Case Study.

In Chapter 34, "Design for Reliability," we discuss techniques to test, analyze, and improve product reliability.

In Chapter 35, "Statistical Tolerancing," we discuss methods to ensure that multiple components in an assembly or composite product are designed to meet assembled product specifications.

In Chapter 36, "Production Scale-Up," we discuss techniques to ensure that a product meets Design for Manufacturability requirements.

In Chapter 37, "Control Plans," we discuss the process for developing procedures to ensure that optimum product or process performance will be sustained as we move forward. Section V: Product Launch and Project Post-Mortem Analysis

The book ends with Section V, in which several tools are described for execution after Product/Process Launch is completed. In this section, we discuss the generation of a post-launch follow-up report with key customers to ensure that the new product meets their requirements, and the need for a review of production yields compared to project targets. We conclude with a review of the post-mortem analysis process to capture improvement opportunities for future new product development projects.

In Chapter 38, "Product Launch and Project Post-Mortem Analysis," we review the need to track the launch of a product in order to ensure successful commercialization with targeted customers. We also demonstrate techniques for conducting post-mortem project follow-up to ensure that project learnings are captured for use in future projects.

In summary, Commercializing Great Products with Design for Six Sigma contains a broad spectrum of valuable insights for improving the product commercialization process. The book is intended to:


  • Appeal to business management by providing a discussion of the business value of DFSS
  • Address both marketing and technology activities in an integrated DFSS roadmap
  • Provide a detailed step-by-step discussion of how to use each key DFSS tool
  • Demonstrate tool usage with a complete case study utilized throughout the book
  • Provide an easy-to-use DFSS tool template in Excel format for each key tool

By applying the methods presented in this book and illustrated by the case study examples, significant improvement in a company's product development process can be quickly achieved. Case Study

Commercializing Great Products with Design for Six Sigma demonstrates the product development process through the use of a detailed step-by-step case study. The case study begins with the identification of a new Candy Wrapper Film product idea. The case study is then used to illustrate detailed steps for assessing the business opportunity, gathering the Voice of the Customer, and technically designing and manufacturing the product. The case study contains over 100 easy-to-use design templates and analysis files that can be modified for use in the development of any product. About the Web Site

The examples and templates discussed in this book are available at the book's Web page, http://www.prenhallprofessional.com/title/0132385996. You will be able to download the Excel-based Candy Wrapper Film case study, consisting of more than 100 worksheet templates. The case study file, with linked worksheets, provides an excellent platform for a product development team beginning a new project. Simply overtype the Candy Wrapper Film data with data from your own project and you are using the DFSS roadmap to develop your product! The Web page also provides links to free downloadable trial versions of Minitab and Crystal Ball so that readers can analyze the statistical data sets described in the text.

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Table of Contents

Preface ix Acknowledgments xvii About the Authors xix Section I Getting Started 1 Chapter 1 What Is Design for Six Sigma? 3

Design for Six Sigma Defined 3

The Risk of Development 4

A Little History 5

An Overview of the Methodology 7

Chapter 2 The Business Case for DFSS 11

The Product Life Cycle 11

Where Have All the Vacuum Tubes Gone? 13

Understanding Dynamic Markets: The Kano Model 15

The Role of DFSS 18

Chapter 3 Six Sigma Financial Metrics 21

Candy Wrapper Film: A DFSS Case Study 21

How to Measure Success in a DFSS Project 22

The Cost of Long-Term Variation 33

Chapter 4 Project Identification and Portfolio Management 41

Linking Projects to Strategy 41

The Project Charter 42

DFSS Projects Linked to Financial Results 43

Project Hopper and Pipeline Management 46

Managing the Commercialization Pipeline 48

Technology Platform Projects 48

Project Pipeline Scorecard 48

Chapter 5 Stage-Gate Processes 51

The Stage-Gate Structure 51

Stage-Gate 1: Opportunity Assessment 53

Stage-Gate 2: Market Analysis and Product Definition 55

Stage-Gate 3: New Product Concept Finalized 55

Stage-Gate 4: Design of the New Product and Supporting Manufacturing Process 58

Stage-Gate 5: Validate Product and Process Design 58

Stage-Gate 6: Product Launch Plan 60

Managing the Stage-Gate Process 62

Chapter 6 Project Management 67

DFSS Project Roadmaps 67

Developing the Project Schedule 69

Project Schedule Management 73

Good Project Management 74

Section II Preparing the Business Plan 75 Chapter 7 Business Plan Overview 77

Review of the Business Plan at Gate 3 77

Components of the Business Plan 77

Chapter 8 Market Segmentation 83

The Financial Value of Market Segmentation 83

Developing the Segmentation Strategy 89

Chapter 9 Identifying Market Opportunities 93

The SWOT Analysis 93

Developing the Ratings by Market Segment 95

SWOT Analysis Results 97

The Market FMEA 98

Chapter 10 Defining Product Value 101

The Value Concept 101

Making Quality a Weapon 102

Mapping the Value Chain 105

Tools for Defining Value 107

Chapter 11 Estimating Financial Value 109

Calculating the Project Value 109

How to Handle Fixed Costs 110

Examining the Project Returns 115

Chapter 12 Product Positioning 123

The Market Perceived Quality Profile 123

Product Positioning Maps 129

Section III The Voice of the Customer 131 Chapter 13 Concept Development 133

The Concept Development Process 133

Concept Development Applications 135

Advantages of the Concept Development Process 135

Chapter 14 Developing the Interview Guide 139

Developing a Purpose Statement 139

Identifying and Listing Five to Ten Bullet-Point Interview Objectives 140

Developing a Customer Selection Matrix 141

Creating the Interview Guide Questions 143

Chapter 15 Conducting Customer Interviews 151

Preparing for the Interviews 151

Interview Team Roles 152

Conducting the Interview 153

Debriefing the Interview 155

Good Project Management of the Interview Process 155

Practice, Practice, Practice 156

Chapter 16 KJ Analysis 157

An Overview of the KJ Process 158

The Image KJ 158

The Requirements KJ 168

The Next Steps 178

Chapter 17 Relative Importance Survey 179

Designing and Conducting the Survey 179

Analyzing the Survey Results 183

Identifying Requirements in Kano Terms 185

Chapter 18 Ideation 187

The Ideation Process 187

Ideation in the Candy Wrapper Film Case Study 190

Chapter 19 Pugh Concept Selection 193

The Pugh Concept Selection Process 194

Pugh Concept Selection in the Candy Wrapper Film Case Study 198

Chapter 20 QFD 199

The Value of QFD 199

Executing the QFD 201

The QFD Flowdown 206

QFD across the Value Chain 209

Some Final Thoughts 215

Chapter 21 TRIZ 217

Technical Contradictions 218

The TRIZ Methodology 218

Some Final Thoughts on TRIZ 229

Chapter 22 Critical Parameter Management 231

Documenting Critical Information from the QFD 232

The Critical Parameter Scorecard 232

The Benefits of Using Critical Parameter Scorecards 236

Section IV Product/Process Development 239 Chapter 23 Process Mapping 241

Types and Uses of Process Maps 241

The Process Variables Map 241

The "As-Is/Can-Be" Process Map 247

Some Final Thoughts on Process Mapping 249

Chapter 24 Cause and Effects Matrix 251

Comparing C&E Matrix and QFD3 251

Developing the C&E Matrix 252

Using the C&E Matrix Output 257

Chapter 25 Failure Modes and Effects Analysis 263

Two Types of FMEA in New Product Development 263

The Design FMEA 264

The Process Design FMEA and the Process Manufacturing FMEA 271

Chapter 26 Statistical Analysis Tools Overview 275

Variation in Product and Process Development 275

Some Basic Statistics 279

Graphical Analysis Techniques 282

Numerical Descriptive Statistics 301

A Look Ahead 303

Chapter 27 Measurement Systems Analysis 307

Measurement System Error 307

The Impact of Measurement Error in Development 308

Assessing Measurement System Usefulness 309

Conducting a Measurement System Study 316

Long-Term Measurement System Assessments 322

Chapter 28 Process Capability 323

Using the Normal Distribution Curve to Estimate Waste 323

Short-Term Process Capability Analysis 325

Long-Term Process Variation: The Shift 326

Designing for Six Sigma Performance 329

Revisiting the Cp Statistic 330

The Cpk Statistic 332

Long-Term Process Capability Analysis 335

Interpreting the Capability Indices 336

Capability Analysis in Minitab 337

Ensuring Measurement System Adequacy 341

Process Capability for Attribute Data 343

The Importance of Process Capability 344

Chapter 29 Tools for Data Analysis 347

General Methods of Data Analysis 347

Hypothesis Testing 348

Sample Size Calculation 350

Comparing a Process Mean to a Target Value 352

Comparing Means and Standard Deviations from Two Film Samples 359

Comparing Two Variances 364

Comparing Two Means: 2-Sample t-test 364

Comparing 2 Medians: The Mann-Whitney Test 367

Comparing Two Means: Paired Comparisons 367

Assessing Means and Standard Deviations: Con*dence Interval 371

Comparing Means and Standard Deviations from More Than Two Samples 374

Comparing Variance 377

Comparing Means: One-Way ANOVA 379

Comparing Medians: Kruskal-Wallis Test 384

Data Comparison Tools Summary 385

Correlation Analysis 385

Regression Analysis for a Single Input Variable 388

Multiple Regression Analysis 394

Correlation and Regression Analysis Summary 400

References 400

Chapter 30 Design of Experiments 401

Full Factorial Designs 401

Fractional Factorial Designs 415

Response Surface Designs 424

Choosing an Experimental Design 430

References 432

Chapter 31 Robust Design 433

Quantifying Robust Design Performance 433

The Taguchi Approach to Robust Design 435

Robust Design Example 438

Alternative Approaches to Robust Design 442

Dealing with Variation 447

Chapter 32 Mixture Experiments 449

Mixture Equations 449

Mixture Designs 451

Creating Mixture Designs in Minitab 451

Analyzing a Mixture Design Experiment 455

Response Surface Study for a Mixture Investigation 458

Choosing a Mixture Design 466

References 468

Chapter 33 Seeking an Optimal Solution 469

The Multiple Response Optimization Process 470

Three-Response Optimization 477

Monte Carlo Simulation in Optimization 481

Multiple Response Optimization Final Thoughts 488

Chapter 34 Design for Reliability 491

A Roadmap for Reliability 491

Design for Reliability 493

Identifying Reliability Requirements: VOC 493

Reliability Expectations and the Kano Model 494

Customer Reliability Expectations 495

Typical Reliability Metrics 495

The Hazard Function 498

Types of Reliability Tests 503

Reliability and Failure Modes and Effects Analysis 506

Reliability Functions and Mathematical Models 508

Types of Distributions and the Hazard Function 511

Reliability Modeling Using Minitab Software 512

The Implications of Product Reliability on Warranty Costs 516

Chapter 35 Statistical Tolerancing 519

Worst Case Analysis 520

Root Sum of Squares Analysis 521

Six Sigma Tolerance Analysis 525

Chapter 36 Production Scale-up 541

Confirming the Product 542

Design for Manufacturability Assessment 550

Scaling up the Product 553

Chapter 37 Control Plans 559

Developing a Control Plan 560

The Final Control Plan Package 572

Section V Product Launch and Project Post-Mortem Analysis 575 Chapter 38 Product Launch and Project Post-Mortem Analysis 577

Product Launch Planning 577

Project Post-Mortem Analysis 583

Conclusions 588

Appendix A Glossary 589 Appendix B Abbreviations 599 Index 601

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Preface

Commercializing Great Products with Design for Six Sigma is a unique book that demonstrates the business value of DFSS in today's highly competitive business environment. Any business that strives for greatness must offer its customers a portfolio of great products. Successful development and commercialization of new products is required of all companies—not only for their growth, but for their survival. Because all products are subject to a product life cycle, companies not continuously updating product lines to meet the changing needs of key markets are faced with stagnation, diminished profits, and bankruptcy.

Commercializing Great Products with Design for Six Sigma is a complete look at the steps companies must follow in order to successfully bring new products to market. The book answers the following three fundamental questions:

  • Why should Design for Six Sigma (DFSS) be used in a new product commercialization?
  • What steps and tools are required to commercialize products with DFSS and in what sequence should they be executed?
  • How should the DFSS methodology be used to develop and bring new plans to market?

Using the tools of DFSS, the book presents step-by-step instructions for business case development, market analysis, product concept development, product design, manufacturing scale-up, and product launch. This book will help business managers and design teams to identify the product concepts that are important to their customers and to efficiently translate those concepts into high-impact sources of new income. Along with a step-by-step discussion of key DFSS tools and road-maps, the book contains a detailed case study example that illustrates tool execution and linkages. You can find supplementary materials, including tool application examples in a complete Excel-based commercialization case study and data sets used to perform statistical analysis in Minitab and Crystal Ball, on the book's Web page, http://www.prenhallprofessional.com/title/0132385996.

Why We Wrote This Book

Having worked in industry developing new products for many years, we passionately believe that companies must stay on the cutting edge of product design in order to remain competitive in today's global business environment. We wrote this book not only to inspire senior business leaders, marketing staff, and technical staff to expect great results from their new product development programs, but also to demonstrate how these results can be achieved. Through a detailed case study example, we demonstrate to leaders and practitioners alike how to apply the principles of DFSS in the identification and development of new products and services. In the text, we give step-by-step instructions along with easy-to-use templates and examples for the use of required tools. We discuss and demonstrate the use of each tool in sequence, as shown in the DFSS commercialization roadmap presented in the book.

In Commercializing Great Products with Design for Six Sigma, we provide a practical, "how to" guide for the use of DFSS in product commercialization. The product development techniques and roadmaps presented in this book have evolved throughout our combined 65 years of experience in product commercialization. Many of the fundamental concepts presented were learned, developed, and enhanced during the courses of our individual careers. Randy Perry has worked in product commercialization for 25 years, including 18 years at AlliedSignal (now Honeywell), where, under the leadership of CEO Larry Bossidy, Six Sigma became a weapon to drive growth and productivity improvement. David Bacon, inspired as a graduate student by his former research supervisor George Box, has more than 40 years of experience as an engineering professor and industrial consultant. The tools and roadmaps described in this book continue to be expanded, refined, and improved through work with a diverse array of corporate clients and fellow consultants.

An Overview of the Content

Commercializing Great Products with Design for Six Sigma consists of five sections: (I) Getting Started, (II) Preparing the Business Plan, (III) The Voice of the Customer, (IV) Product/Process Development, and (V) Product Launch and Project Post-Mortem Analysis. Within these sections, the book contains 38 chapters and follows the development of a new product or service from busi*ness concept through final product launch. This section provides a brief description of each section and the chapters within it.

Section I: Getting Started

In this section, we begin by summarizing the history of Six Sigma and of Design for Six Sigma before quickly moving into a discussion of key business infrastructure needed to support a successful commercialization program. The section begins with a brief overview of how companies, markets, and products are constantly changing, and how these forces of change drive the need for new products. After a detailed discussion of how financial metrics are used to measure the value of DFSS, the first section concludes with a discussion of how to select new projects and manage the company's new-product portfolio.

In Chapter 1, we begin with the overview, "What Is Design for Six Sigma?" In this chapter, we trace the history of Six Sigma and discuss various DFSS roadmaps in use for new product commercialization today.

In Chapter 2, "The Business Case for DFSS," we discuss why business management should aggressively work to implement DFSS in the company's new product development processes. In this chapter, we demonstrate and discuss the devastating consequences of failing to continually replenish the company's pipeline of new products.

In Chapter 3, "Six Sigma Financial Metrics," we present a detailed look at how to place a value on Design for Six Sigma projects. Assessing the financial value of DFSS projects is critical as we track the benefits realized by improving our knowledge of customer needs and reducing product development rework. In this chapter, we introduce the Candy Wrapper Film Case Study, which is used throughout the remainder of the book to illustrate precisely how and when required DFSS tools are to be executed.

In Chapter 4, "Project Identification and Portfolio Management," we discuss the critical need for a dynamic project selection process. The commercialization pipeline of new products represents a company's future. Careful tracking and management of this product portfolio using the methods discussed in this chapter are essential.

In Chapter 5, "Stage-Gate Processes," we discuss the general concept behind the use of Stage-Gate in product commercialization. The benefits of using Stage-Gate to minimize the risk of using people, time, and money inefficiently on projects are examined.

In Chapter 6, "Project Management," we discuss the need for project management discipline to produce the Stage-Gate deliverables. A review of good project management techniques is presented.

Section II: Preparing the Business Plan

In Section II, we deal with the preparation of a business plan for a new product. We discuss various key components of a business plan in detail, including performing market segmentation, identifying market opportunities, defining product value, and estimating the financial value of a project. We end this section with a discussion of how to best position a new product for success in the marketplace.

In Chapter 7, "Business Plan Overview," the concept of developing a business plan to describe the business, marketing, and operating strategy for a new product is introduced. The contents of a good business plan are presented and reviewed.

In Chapter 8, "Market Segmentation," the value of strategically grouping customers having similar characteristics and needs with the goal of improving overall business pro*tability is discussed. Methods and techniques for segmenting markets are presented.

In Chapter 9, "Identifying Market Opportunities," two specific tools for examining new market opportunities—the Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis and the Market Failure Modes and Effects Analysis (FMEA)—are discussed. Specific instructions and an example for execution of each of these tools are presented.

In Chapter 10, "Defining Product Value," the concept of customer value is introduced. In this chapter, we discuss how customers buy products based on value, not based on price. A discussion of value chain mapping techniques and how this information can be used in making strategic decisions is presented.

In Chapter 11, "Estimating Financial Value," methods to estimate the financial value for a product under development are discussed. Financial Excel models are constructed and sensitivity analyses using Crystal Ball are conducted.

In Chapter 12, "Product Positioning," two primary tools for product positioning are discussed: the Market Perceived Quality Profile and the Product Positioning Map. The purpose of these tools is to establish what major product and service attributes most influence a customer's decision to purchase products and then to define how our current products are positioned compared to those of competitors in these key requirement areas.

Section III: The Voice of the Customer

In Section III, we provide an in-depth discussion of how to gather and analyze "The Voice of the Customer." In this section, we emphasize techniques to identify the business-critical needs of key customers, and then we explore the use of interview techniques that allow us to examine these needs more deeply. We continue our discussion in Section III with a detailed look at the use of KJ Analysis to determine which needs identified during customer interviews are most important. Later in the section, we examine new product ideation and concept generation/selection techniques. We end Section III with a detailed discussion of Quality Function Deployment (QFD) and how this key tool is used to develop key product and process specifications.

In Chapter 13, "Concept Development," we discuss a series of specific tools tied together in a roadmap format with the intent of developing the best product to meet the needs of a given market. Concept development is a unique approach to product or service development and provides a structured methodology for dealing with the "fuzzy front end" of product development.

In Chapter 14, "Developing the Interview Guide," we discuss a well-defined process for developing an interview guide to be used in interviewing customers.

In Chapter 15, "Conducting Customer Interviews," specific techniques are presented for interviewing customers and collecting needed Voice of the Customer information.

In Chapter 16, "KJ Analysis," we discuss the KJ process for analyzing Voice of the Customer interview results in order to capture the most important customer requirements for our new product or process.

In Chapter 17, "Relative Importance Survey," we review the importance of a follow-up customer survey to confirm or modify the importance ratings of customer requirements resulting from the KJ Analysis. Specific examples of surveys and survey analysis techniques are presented.

In Chapter 18, "Ideation," a method for developing innovative product solution ideas is discussed and demonstrated using the Candy Wrapper Film Case Study.

In Chapter 19, "Pugh Concept Selection," the Pugh Concept method for selecting the best overall product concept is presented. A detailed example of how the Pugh method is executed is discussed.

In Chapter 20, "QFD," the Quality Function Deployment (QFD) tool is reviewed in depth. Specific execution details for QFD are presented and the flowdown nature of QFD is demonstrated.

In Chapter 21, "TRIZ," the use of the TRIZ (pronounced "TREEZ") methodology—developed by the Russian engineer and scientist Genrich Altshuller to resolve significant technical conflicts identified in the QFD roof—is discussed.

In Chapter 22, "Critical Parameter Management," the development and use of critical parameter scorecards to ensure that critical parameters identified through the QFD process meet process capability requirements are presented.

Section IV: Product/Process Development

Section IV covers the fundamental technical tools needed for product and process development. This section begins with a discussion of Process Mapping and continues with detailed examination of the use of the Cause and Effects Matrix, Failure Modes and Effects Analysis, basic statistical tools, measurement systems analysis, process capability, tools for data analysis, design of experiments, robust design, mixture experiments, and multiple response optimization. The section ends with a review of how to scale up a process from pilot scale to full-scale production with a well-defined control plan.

In Chapter 23, "Process Mapping," we demonstrate the techniques required to develop good process maps. We also demonstrate how process mapping interfaces with the QFD analysis.

In Chapter 24, "Cause and Effects Matrix," the tools and techniques for development of the C&E Matrix are presented. In this chapter, we show how the C&E Matrix links to the QFD process.

In Chapter 25, "Failure Modes and Effects Analysis," we discuss the process for identifying critical failure modes and their causes for both process design and manufacturing.

In Chapter 26, "Statistical Analysis Tools Overview," we explore key basic statistical analysis techniques. Graphical and numerical analysis approaches using detailed Minitab instructions and output are presented.

In Chapter 27, "Measurement Systems Analysis," we discuss the importance of good measurement systems in product development. In this chapter, we present step-by-step instructions and examples of how assessments of measurement systems are conducted using Minitab.

In Chapter 28, "Process Capability," we discuss methods for determining how well product or process performance satisfies specifications. We present commonly used indices for process capability and demonstrate how process capability analysis is conducted using Minitab.

In Chapter 29, "Tools for Data Analysis," we demonstrate in detail techniques for identifying underlying relationships in data. Using Minitab and the Candy Wrapper Film Case Study, detailed instructions are given for a variety of statistical analysis techniques, including t tests, analysis of variance, correlation, regression, and nonparametric statistical analysis. Discussions of con*dence intervals, sample size calculation, and control charting are also presented.

In Chapter 30, "Design of Experiments," we discuss techniques for conducting commonly used designed experiments. Full Factorial, Fractional Factorial, and Response Surface designs are discussed in detail.

In Chapter 31, "Robust Design," we discuss concepts and methods for designing a product or process to resist the impact of noise. Specific robust design approaches and examples are presented.

In Chapter 32, "Mixture Experiments," we discuss the use of experimental design techniques to determine the optimum formulation for a product that contains multiple components.

In Chapter 33, "Seeking an Optimal Solution," approaches are presented for simultaneously optimizing multiple performance characteristics in product development. Techniques using Minitab, Excel, and Crystal Ball are demonstrated using the Candy Wrapper Film Case Study.

In Chapter 34, "Design for Reliability," we discuss techniques to test, analyze, and improve product reliability.

In Chapter 35, "Statistical Tolerancing," we discuss methods to ensure that multiple components in an assembly or composite product are designed to meet assembled product specifications.

In Chapter 36, "Production Scale-Up," we discuss techniques to ensure that a product meets Design for Manufacturability requirements.

In Chapter 37, "Control Plans," we discuss the process for developing procedures to ensure that optimum product or process performance will be sustained as we move forward.

Section V: Product Launch and Project Post-Mortem Analysis

The book ends with Section V, in which several tools are described for execution after Product/Process Launch is completed. In this section, we discuss the generation of a post-launch follow-up report with key customers to ensure that the new product meets their requirements, and the need for a review of production yields compared to project targets. We conclude with a review of the post-mortem analysis process to capture improvement opportunities for future new product development projects.

In Chapter 38, "Product Launch and Project Post-Mortem Analysis," we review the need to track the launch of a product in order to ensure successful commercialization with targeted customers. We also demonstrate techniques for conducting post-mortem project follow-up to ensure that project learnings are captured for use in future projects.

In summary, Commercializing Great Products with Design for Six Sigma contains a broad spectrum of valuable insights for improving the product commercialization process. The book is intended to:

  • Appeal to business management by providing a discussion of the business value of DFSS
  • Address both marketing and technology activities in an integrated DFSS roadmap
  • Provide a detailed step-by-step discussion of how to use each key DFSS tool
  • Demonstrate tool usage with a complete case study utilized throughout the book
  • Provide an easy-to-use DFSS tool template in Excel format for each key tool

By applying the methods presented in this book and illustrated by the case study examples, significant improvement in a company's product development process can be quickly achieved.

Case Study

Commercializing Great Products with Design for Six Sigma demonstrates the product development process through the use of a detailed step-by-step case study. The case study begins with the identification of a new Candy Wrapper Film product idea. The case study is then used to illustrate detailed steps for assessing the business opportunity, gathering the Voice of the Customer, and technically designing and manufacturing the product. The case study contains over 100 easy-to-use design templates and analysis files that can be modified for use in the development of any product.

About the Web Site

The examples and templates discussed in this book are available at the book's Web page, http://www.prenhallprofessional.com/title/0132385996. You will be able to download the Excel-based Candy Wrapper Film case study, consisting of more than 100 worksheet templates. The case study file, with linked worksheets, provides an excellent platform for a product development team beginning a new project. Simply overtype the Candy Wrapper Film data with data from your own project and you are using the DFSS roadmap to develop your product! The Web page also provides links to free downloadable trial versions of Minitab and Crystal Ball so that readers can analyze the statistical data sets described in the text.

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