Knowledge-based development: Introducing portfolio maps and product architecture as basis for implementation

Many companies experience that they use too many new-product development resources in (re-)developing products that are derivatives of previous ones. Product designs are sometimes uncritically copied into new projects and adjusted to match new requirements and needs. Since the products are not developed for reuse and improvement, unexpected modifications drive up the work load, leading to increased cost and lead time, and lower quality. The standardization approach introduced in this paper uses the product architecture as a backbone for knowledge-based development, assuming that value is created within both the traditional product(ion) value stream and the knowledge value stream. Before applying this approach, however, it is necessary to (a) organize the product portfolio, (b) sharpen the product strategy and (c) establish a common product architecture. In this paper, the products of a case company have been analyzed, structured and modeled. The result is a product portfolio map, including variants on functional, physical and architectural levelswithin and across modules. It provides a visual product model on system and module levels, including current and near-future variants.