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Managing the Design Factory
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Table of Contents

INTRODUCTION

Revolution in the Factory

Into the Witch Doctor's Tent

There Are No Best Practices

Where Ideas Come From

The Organization of This Book

PART ONE: THE DESIGN FACTORY

1. INTO THE DESIGN FACTORY

Our Goals Are Economic

Products vs. Designs

Design-in-Process Inventory

Rising Cost of Change

Late-Breaking News

One-Time Processes

Expanding Work

Summary

PART TWO: THINKING TOOLS

2. MAKING PROFITS NOT PRODUCTS

Project Models

Application Models

Models of Process Economics

Tactical vs. Strategic Decisions

Some Practical Tips

Summary

3.ENTERING THE LAND OF QUEUES

An Introduction to Queueing Theory

The Economics of Queues

Depicting Queues

Implications of Queuing Theory

Dealing with Queues

Increasing Capacity / Managing Demand / Reducing Variability / Using Control Systems

The Location of Batch Queues

Little's Law

Typical Queues

Summary

4. IT'S ALL ABOUT INFORMATION

Information Theory

Efficient Generation of Information

Maximizing Information: The Magic Number 50 Percent

Information Differs in Value

Timing: Earlier Is Better / Batch Size Affects Timing / Iterations Generate Early Information / The Potential Profit Impact

Do It Right the First Time?

Communicating Failures

Protecting Against Failure

Task Sequencing

Monitoring

Summary

5. JUST ADD FEEDBACK

Systems Theory

Systems with Feedback
Properties of Systems with Feedback

Difficulty in Troubleshooting / Instability and Chaos / Accuracy and Feedback / Variability Within a System

More Complex Control Systems

Summary

PART THREE: ACTION TOOLS

6. CHOOSE THE RIGHT ORGANIZATION

The Organization as a System

Assessing Organizational Forms

Efficiency: The Functional Organization

Speed: The Autonomous Team

Performance and Cost: Hybrid Organizations

Dividing Responsibilities

Communications

Old Communications Tools / New Communications Technologies

Colocation

Summary

7. DESIGN THE DESIGN PROCESS

Combining Structure and Freedom

One-Time Processes / Modular Processes / A Pattern Language

Designing Process Stages

Input Subprocesses / Technology vs. Product Development / Controlling Queues / Subprocess Design / Output Processes

Key Design Principles

Sequential vs. Concurrent Processes / Managing Information Profiles / Decentralizing Control and Feedback / Location of Batch Queues

Specific Process Implementations

Evolving the Process

Summary

8. PRODUCT ARCHITECTURE: THE INVISIBLE DESIGN

Underlying Principles

Modularity Segregating Variability/ Interface Management

Specific Architectural Implementations

Low-Expense Architectures / Low-Cost Architectures / High-Performance Architectures / Fast-Development Architectures

Who Does It?

Summary

9. GET THE PRODUCT SPECIFICATION RIGHT

It Starts with Strategy

Selecting the Customer

Understanding the Customer

Customer Interviews / Meticulous Observation / Focus Groups

Creating a Good Specification

The Minimalist Specification / A Product Mission / The Specification Process

Using the Specification

Specific Implementations

Summary

10. USE THE RIGHT TOOLS

The Use of Technology

Accelerated Information Flow / Improved Productivity / Reduced Delays

Implementation Principles

Technology Changes Process / Pay Attention to Economics Technologies

Design Automation / Prototyping and Testing / Communications / Information Storage and Retrieval

Summary

11. MEASURE THE RIGHT THINGS

General Principles

Drive Metrics from Economics / The Control Triangle / Decentralizing Control / Selecting Metrics

Project-Level Controls

Expense-Focused Controls / Cost-Focused Controls / Performance-Focused Controls / Speed-Focused Controls

Business Level Controls

Expense-Focused Controls / Cost-Focused Controls / Performance-Focused Controls / Speed-Focused Controls

Summary

12. MANAGE UNCERTAINTY AND RISK

Market and Technical Risk

Managing Market Risk

Use a Substitute Product / Simulate the Risky Attribute / Make the Design Flexible / Move Fast

Managing Technical Risk

Controlling Subsystem Risk / Controlling System Integration Risk / Back-up Plans

World-Class Testing

Cheap Testing / Low Unit Cost Impact/Maximizing Performance / Fast Testing / Continuous Improvement

Summary

PART FOUR: NEXT STEPS

13. NOW WHAT DO I DO?

Do Your Math

Use Decision Rules

Pay Attention to Capacity Utilization

Pay Attention to Batch Size

Respect Variability

Think Clearly About Risk

Think Systems

Respect the People

Design the Process Thoughtfully

Pay Attention to Architecture

Deeply Understand the Customer

Eliminate Useless Controls

Get to the Front Lines

Avoid Slogans

Selected Bibliography

Index

About the Author

About the Author

Donald G. Reinertsen is head of Reinertsen & Associates, a firm that specializes in new product development. He also teaches at the California Institute of Technology and has attracted a worldwide following among managers, designers, and engineers. He holds an engineering degree from Cornell and an MBA from Harvard. He and his family live in Redondo Beach, California.

Reviews

Warren S. Nix President and CEO, Lumonics Corporation This book is absolutely essential reading for product team leaders who must "do" rather than debate. I will require that all senior executives at Lumonics read this book.
Neil Hagglund Corporate Vice President and Director of Corporate Technology Planning, Motorola, Inc. A valuable and much needed view of the product development process. Engrossing and stimulating reading flill of excellent tools and firmly anchored on the basic reality of why we do product development -- to make a profit!
Art Lane General Manager, Hewlett-Packard Enterprise Storage Solutions Division At Hewlett-Packard we continuously strive to improve our product development methods, but too often only look internally for ideas. I would recommend this book because it impresses me as a source of sound, practical advice from Don's broad industry experience.
Kevin Sharer President and COO, Amgen Provides real world, usable advice and challenges managers to think about issues of enduring importance.
Robert T. Franzo Manager, Messaging and Digital Mobile Radio, Wireless Communications Products, IC Group, Lucent Technologies A compelling new model for profitable product development. Don Reinertsen reveals some of the best kept secrets to running a decision and profit based development process. This book will be a key resource for organizations using product development to compete in the competitive dynamic market we all encounter.
Dr. Paul Borrill Chief Scientist, Sun Microsystems A brilliant and unique perspective on the economic and business dimensions of product design. Reinertsen's insights into the human and economic dimensions of product design are outstanding.

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