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2.5 Product Life Cycle Phases: Basic Concepts and Activities 27<br />

Technology assessment<br />

and forecasting<br />

Standardization and<br />

identity assessment<br />

Market assessment<br />

and forecasting<br />

Technology<br />

strategy<br />

Product platform<br />

strategy<br />

Market<br />

strategy<br />

Product<br />

strategy<br />

Laws, standards,<br />

and directives<br />

Business<br />

objective<br />

Competitive<br />

pressure<br />

Resources<br />

Figure 2.3. Factors influencing business objective<br />

Customer Requirements<br />

For consumer durables, customer requirements, wants, and preferences (what the<br />

product should do for the customers) are identified through market research. A problem<br />

of concern is that customers often state the requirements in a vague manner. This<br />

represents a great challenge when conducting market studies and in translating the<br />

vague requirements into specific product characteristics. 8 For custom-built products,<br />

the customer usually defines the requirements, wants, and preferences in detail.<br />

Concept Generation and Screening<br />

The process of generating feasible concept specifications is concerned with<br />

1. Identifying the possible concepts that can be pursued to meet the business objective<br />

and the customer requirements<br />

2. Evaluating the most likely candidates in terms of performance<br />

3. Deciding on preferred concept(s)<br />

The concept generation process starts with determining the overall functions (and<br />

sub-functions) of the product. What the product should do, is defined through these<br />

functions, prior to exploring product concepts and solutions. 9 Next, solution principles<br />

for the sub-functions are generated. A solution principle is<br />

“An idealized (schematic) representation of the structure of a system or a<br />

subsystem in which the characteristics of the elements, and the relations<br />

8 See Urban and Hauser (1993) for the tools and techniques for identifying customer requirements.<br />

The quality function deployment (QFD) method is widely used for translating the<br />

requirements into specific product characteristics, see ReVelle et al. (1998).<br />

9 For further discussion, see Blanchard (2004); Fox (1993); Pahl and Beitz (1996); Pugh<br />

(1990); Suh (2001); Ullman (2003).

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