Implementing virtual reality in the product development process, and estimation of virtual maturity

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School of Innovation, Design and Engineering

IMPLEMENTING VIRTUAL REALITY IN

THE PRODUCT DEVELOPMENT

PROCESS, AND ESTIMATION OF

VIRTUAL MATURITY

Master thesis work

Advanced level, 30 credits

Product and process development

Linnéa Forsgård & Ylva Vabulis

Tutor (Volvo Construction Equipment): Alexandra Teterin Tutor (Mälardalen University): Janne Carlsson

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ABSTRACT

Virtual reality (VR) is one of the new technologies in Industry 4.0 and will influence the industry. If VR is implemented correctly it will lead to higher quality, improved efficiency, and closer customer relationships. The problem with using virtual reality at the company lies both in how these tools shall be used in the product development process and the issue that it is a new tool and a new way of working. The purpose of the thesis is to identify when virtual reality can be used in the early phases of the product development process. The purpose is also to identify how virtual maturity can be measured. The research questions that the study is based on are the following:

RQ 1: Which steps are qualified to implement VR within the early phases of the product development process?

RQ 2: What dimensions need to be taken into consideration when estimating virtual maturity? RQ 3: How can virtual maturity be estimated?

To answer the research questions, primary data such as interviews and a workshop was performed along with a literature review to collect secondary data. A case study lays as a ground for creating a product development process including VR activities, a maturity framework, and a maturity model proposal which are the objectives of the thesis. To analyze the data, methodology triangulation and evaluating patterns between the empirical findings and the literature review were used.

The purpose of the literature review was to contribute to the knowledge of the VR tool, VR in industry, and how the implementation of new tools and technologies influences organizations in different aspects. Since the thesis is divided into both creating a product development process including VR and assessing virtual maturity, a general product development process is described in the literature review.

The interviews and the workshop provided an overview of the current state at the company regarding both the existing product development process and virtual maturity.Based on the current development process a new extended version was developed, where activities that can be done in VR are included. At the beginning of the project no maturity model that described virtual maturity, important dimensions, or VR activities that can be included in the product development process existed. The development of the maturity framework and the maturity model connected to VR is described in the case study, as well as the development process including VR. As a result of the thesis existing research is compared to the empirical findings, where important dimensions for estimating virtual maturity and VR activities are presented.

The analysis of the development process including VR shows that the activities can be found in both literature and empirical findings. However, there was no research found where VR is implemented in a general product development process. The empirical findings also show that there is a need for a tool that can estimate virtual maturity, but there is no such tool directly connected to VR described in the literature. This thesis contributes to this gap by creating a maturity model consisting of five levels, that is based on the 12 identified important dimensions in the framework. Both the framework and the model are divided into the aspects people and technology.

Neither the process nor the model has been tested in reality, which is needed to confirm that both will be suitable for the specific company. This is however proposed strategies that are supposed to work as guidelines for the work towards implementing VR.

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ACKNOWLEDGEMENTS

We would like to start by thanking Dalibor Konjicija and Alexandra Teterin for giving us the opportunity to write this thesis at Volvo Construction Equipment in Eskilstuna. It has been both interesting and enriching. We would like to give you, Alexandra Teterin, an extra thank you for being our tutor and guiding us throughout the thesis by giving advice and answering our million questions.

Thank you to all the participants at the Volvo Group and ESI Group for sharing your expertise and answering our questions. Without you, this would not have been possible.

Last but not least, we would like to thank our tutor at Mälardalen University, Janne Carlsson, for the guidance and continuous feedback during the thesis.

Thank you all!

___________________________ ___________________________

Linnéa Forsgård Ylva Vabulis

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APPENDIX 2: INTERVIEW 1 ... 62 APPENDIX 3: INTERVIEW 2 ... 64 APPENDIX 4: INTERVIEW 3 ... 65 APPENDIX 5: INTERVIEW 4 ... 68 APPENDIX 6: INTERVIEW 5 ... 70 APPENDIX 7: INTERVIEW 6 ... 71 APPENDIX 8: INTERVIEW 7 ... 73 APPENDIX 9: INTERVIEW 8 ... 74 APPENDIX 10: INTERVIEW 9 ... 76 APPENDIX 11: WORKSHOP ... 78

APPENDIX 12: SUMMARIZED FINDINGS ... 83

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LIST OF TABLES

Table 1: Ethical principles ... 9

Table 2: Industry 4.0 Maturity Model Proposal ... 15

Table 3: Scale of Technology Readiness Level ... 18

Table 4: Identified dimensions for maturity ... 38

Table 5: Virtual Maturity Framework ... 39

Table 6: Results of objectives ... 43

Table 7: Result of the literature review regarding the process ... 45

Table 8: Result of the literature review regarding the dimensions... 46

LIST OF FIGURES Figure 1: The Technology Acceptance Model 3 ... 17

Figure 2: The Mechanical Design Process ... 22

Figure 3: Work Process ... 24

Figure 4: General process for developing “Stage A” ... 28

Figure 5: General process for developing “Stage A” including VR ... 32

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1 INTRODUCTION

The following section describes the background to why the thesis came about, the purpose of the thesis, and the problem formulations it emanates from. In addition, the directives must be considered, both from the company’s perspective and the university’s perspective.

1.1 BACKGROUND

New advanced technologies and digitalization have driven development and a change in the industry, which in turn has led to the concept Industry 4.0 – the fourth industrial revolution. Advanced technologies in combination with the internet have led to the term “smart objects”, which both are products but also machines (Lasi, et al., 2014). Industry 4.0 has nine main technologies, where virtual reality (VR) is one of the technologies. Since these nine technologies are new in industries, it means that it both generates challenges and also business opportunities for companies that have to be investigated (Cheng, et al., 2016).

Industry 4.0 and the technologies (for example virtual reality) will affect the industry in many ways. The customer relationship will get closer, the quality will get better, the efficiency will be improved which in turn leads to economic benefits – if it is implemented in the right way. Industry 4.0 also changes the work environment since the processes changes because of the new technologies. Challenges that are related to the work environment are new competencies and a will to change the way to work (Pereira & Romero, 2017). Implementing new incoming technologies can be crucial for companies’ competitiveness, because of the high technological rate. To reduce cost, time, and improving quality, VR is implemented in many industries and processes (Lawson, Salanitri & Waterfield, 2016).

Virtual reality means that a user experiences another world than the real world – a virtual world. The most common way to experience this is to use VR glasses and controls, to be able to move and see the virtual world. Virtual reality is not only used for games and entertainment, but it can also be used for design and construction applications (NE, 2020).

Volvo Construction Equipment (Volvo CE) was founded in 1832, in Sweden in Eskilstuna – which is more than 180 years ago. Volvo CE manufactures excavators, wheel loaders, frame-controlled dumpers, tipper trucks, asphalt pavers, rollers, plumbers, and demolition equipment. The company is one of the leading manufacturing companies of construction equipment in the world. The machines have been developed during the years, but the most advanced technology changes have been developed during the last decade. Volvo CE is developing machines that are fully automated and driven and controlled by advanced 5G technology, to minimize hazards and risks (Volvo CE, 2020).

Even if Volvo CE is working with continuous improvements and new technologies such as electrification and 5G, some areas need to be investigated further. Virtual reality is one example of this, where the company strives for higher use of it in product development. By using virtual reality, the costs can decrease, and the company can continue being competitive. There are still questions and uncertainties related to virtual reality and those need to be solved. Questions such as when virtual reality should be implemented and how to trust virtual reality tools.

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1.2 PROBLEM FORMULATION

The company describes that there is a problem with the implementation of virtual reality tools in parts of the organization. This problem lies both in when these tools shall be used within the company’s product development process, and also in the issue to make the transition towards using virtual reality. The company has access to the VR technology, but active use is not yet implemented within the area of research and development.

The company also believes that this is a matter of attitude, confidence, and mentality of the employees in terms of new tools and ways of working. The maturity level regarding the use of virtual tools is therefore in need of an investigation to find solutions that increase the virtual maturity of employees. No measures are currently done within the company to measure the maturity or how it can increase.

1.3 PURPOSE & OBJECTIVES

The purpose of the thesis is to identify when virtual reality can be used in the early phases of the product development process. The purpose is also to identify how virtual maturity can be measured.

The thesis is divided into two separate parts. One part is to propose a strategy where virtual reality can be highlighted as a potentially important activity in the early phases of the existing product development process. The other part is to develop a framework for assessing maturity level along with a maturity model proposal to estimate virtual maturity. Based on the purpose and the parts of the thesis, three measurable objectives are described below.

VR development process

Identify VR activities and include them in the original product development process Dimensions

Identify important dimensions for estimating virtual maturity Virtual maturity model

Develop a maturity model proposal that can estimate virtual maturity

Currently, there is no maturity model that describes virtual maturity and there is no existing research to emanate from. This is also applied to the number of dimensions and the VR development process. However, there is a model that describes how to measure maturity within the field of Industry 4.0. One expected improvement is therefore to provide an extended product development process which demonstrates where work with VR can be possible. The other expected improvement by doing the thesis is to provide the opportunity to measure virtual maturity, which currently is not possible at all since no maturity level model linked to virtual reality or dimensions that should be taken into consideration exists. It is not possible to foresee exactly how many dimensions or VR activities can be identified due to the starting point of the thesis.

Developing prototypes are costly and time-consuming and by eliminating these costs a company can make big cost-savings by using virtual reality as a complement to traditional methods for verification. It would however be theoretically possible to estimate both time and cost reduction by replacing a physical build with a virtual build. Due to the time frame and the lack of access to company documentation regarding exact costs and lead times it was not

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possible to calculate exactly how much the lead times could decrease or how much more cost-effective the development process with VR implemented could be.

1.4 RESEARCH QUESTIONS

From the problem formulation, three research questions have been derived, and these will be answered during the thesis. To achieve the purpose and objectives of the thesis three research questions have been developed. These can be read below.

RQ 1: Which steps are qualified to implement VR within the early phases of the product development process?

RQ 2: What dimensions need to be taken into consideration when estimating virtual maturity?

RQ 3: How can virtual maturity be estimated? 1.5 DIRECTIVES & LIMITATIONS

An overall limitation that lays as a ground for the whole thesis is that the work that is done is supposed to be as general as possible without compromising the usefulness of the result for the company. The thesis is also limited to the heavy vehicle industry.

1.5.1 DIRECTIVES FROM COMPANY

The thesis will result in a proposition of where VR can be highlighted as a potentially important activity in the existing product development process, to facilitate future work. The thesis is not supposed to solve the whole problem with maturity level and usage of virtual reality in the development process, since it has to do with a lot of factors, like attitude and willingness to make changes within an organization. However, this thesis will be a guideline on where to implement virtual reality into the company’s development process and to evaluate what is needed for employees to approach virtual reality as a natural part of their work tasks.

1.5.2 DIRECTIVES FROM THE UNIVERSITY

The thesis will in the end describe a result of how the assignment went in report format which needs to follow the university’s guidelines and needs to be related to the student’s education. The thesis comprises 30 credits, which corresponds to the full-time work of a full semester. This is equal to 40 hours per week for 20 weeks. The thesis will be presented at the end of the semester in combination with the opposition of another groups work.

1.5.3 RESEARCH SCOPE & LIMITATIONS

A large part of the process will be to gain an understanding of the company’s way of carrying out projects. This is needed to proceed with when virtual reality is supposed to be carried out in the product development process. Another important part is to investigate the literature to detect what frameworks currently exists that has to do with maturity level in the industry, to later-on be able to create a framework and a model connected to virtual maturity according to the company’s needs.

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An extended version of the current development process will be presented, where VR activities are included. The general product development process is long and complex which limits the thesis to only focusing on a part of the process. The focus will lie on the first phase of the development, up until the first physical prototype is built, which is called Develop “Stage A”. The thesis will not cover the technical aspects of virtual reality, for example how the existing files will be translated to files that can be read by the virtual reality software. Neither will the thesis result in the development of a new product but a process development that includes activities done in virtual reality. Due to the timeframe, the new, updated process is not going to be tested or evaluated over time to detect flaws or needs for change. However, the model will be presented and analyzed during the thesis’ timeframe.

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2 RESEARCH DESIGN & METHODOLOGY

In the following chapter, the methods used to accomplish the thesis are described. It is also included why these are suitable for the thesis and why others are not as suitable.

2.1 CASE STUDY

Saunders, Lewis & Thornhill (2016) explains that a case study is where a topic or phenomenon is examined deeper in a real-life setting. The case study can refer to either an event, a person, or an organization to name a few. To do the in-depth inquiry several methods can be used, for example by doing observations, interviews, or surveys depending on the character of the study. It is stressed that case studies are criticized because they lack the ability to be generalizable since they focus on one specific topic/phenomenon within one specific real-life setting.

The current thesis is executed by researching the company’s willingness to implement virtual reality as well as the challenges that hold the company back. The thesis will result in a VR product development proposal, which means the thesis will suggest where and when VR can be used in the company’s current general product development process. This means that the case study is the chosen method of the current thesis since the thesis investigates one specific company.

2.2 QUALITATIVE OR QUANTITATIVE DATA

According to Saunders, Lewis & Thornhill (2016), it is important to differentiate quantitative and qualitative research. Depending on what type of research it is, it is either quantitative or qualitative. The difference between qualitative and quantitative data is that qualitative data is non-numeric data. The non-numeric data is for example words, videos, pictures, or any other kind of similar data. Quantitative data is, compared to qualitative data, based on numeric data. Quantitative is often referred to as data collection techniques such as questionnaires. Qualitative is instead often referred to as the data collection technique interviews. It is important to have a methodological choice of what type of research the researcher will conduct. However, research can combine qualitative and quantitative data, which is important to mention, but the researcher still needs to be aware of the difference (Saunders, Lewis & Thornhill, 2016).

2.3 DATA COLLECTION

According to Saunders, Lewis & Thornhill (2016), it is preferable to be using both primary and secondary sources for collecting data during a thesis.

In this thesis, the primary data will be collected through interviews and a workshop, and the secondary data will be collected through researching existing literature.

2.3.1 SECONDARY DATA

Data that is described as secondary is everything that is not considered primary data, hence data that have been analyzed and evaluated, according to Bell (2016). Secondary data is for example course literature, social media, and websites that do not contain first-hand information.

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6 (89) 2.3.2 LITERATURE REVIEW

The purpose of a literature review is to gain a deeper understanding within a certain area of interest and is done by examining existing literature, which is an important part of a well-executed project (Bell, 2016).

The literature in this context refers primarily to scientific articles and original work, but also other sources Saunders, Lewis & Thornhill (2016) explain.

The purpose of the literature review was to find virtual reality in the industry, trust (in an organization, in technology, in people), implementation of new technologies within an organization and organizational culture, etc. The literature review was performed primarily at the beginning of the work of the thesis to collect an understanding of the subjects, but also continuously during the thesis to find additional needed information.

To find the information the search engines Scopus, Google Scholar, NE, ScienceDirect, Primo and IEEE Explore was mainly used. The keywords used to search for data were: Virtual reality (combined with applications, interface, manufacturing, assembling, interference), Industry 4.0, maturity model, maturity level, virtual reality in industry, trust, organizational behavior, technology acceptance and product development process.

To evaluate the source Alexanderson (2012) explains that there are traditionally four criteria concepts that need to be looked at to determine whether a source is reliable or not. These are authenticity, time, dependence, and tendency.

Authenticity

In this aspect, the reader needs to review if the source is an original or if it is copied. It also needs to be determined if the source is what it presents itself to be (Alexanderson, 2012). In this thesis, this has been taken into consideration by investigating the origin of the sources. Well established encyclopedias, scientific papers, and information from employees have mainly been used.

Time

Here it needs to be evaluated whether the information the source represents is up-to-date or if there is newer information available since more current sources often are more reliable (Alexanderson, 2012).

During the thesis, it has been reflected on what year the publications have been published to be as up to date as possible within the area of interest. The information has mainly been gathered from sources published during the 21st century, even if there are a few exceptions.

Dependence

Is the information from the source dependent on other sources? In that case, it needs to be reviewed if this has any importance before using the source (Alexanderson, 2012).

The largest part of the data that was gathered during the thesis came from primary sources. In a few cases, secondary data was used if they passed as dependable.

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Alexanderson (2012) explains that one important aspect to look at is if the source is biased and if the information is beneficial for the author of the source.

To avoid biased sources the information in them has been compared with other sources to see if they correspond with each other.

2.3.3 PRIMARY DATA

According to Bell (2016), there is often a misunderstanding between the concept of primary data and secondary data. Primary data are everything that is developed during a project's course and has not been analyzed by anyone earlier, as well as data that have been collected throughout a project that comes from a primary source. Examples of this type of information are interviews, surveys, and e-mails, but also documents from government offices, material from national databases, and manuals.

Interview

The three types of interviews that exist are structured interviews, semi-structured interviews, and unstructured interviews (Saunders, Lewis & Thornhill, 2016).

A structured interview means that the questions are pre-determined, and all interviewees get the same set of questions. In a semi-structured interview, Saunders, Lewis & Thornhill (2016) explains that the researcher originates from a theme and in some cases uses a few key questions that need to be answered. The unstructured interview is an informal interview, where no questions have been pre-determined. Interviews are a great way to gain in-depth information Saunders, Lewis & Thornhill (2016) explains.

Within this study, the interviews have been semi-structured. Some of the questions have been equal for all interviewees and some have been different. However, the topic of the interviews has been the same for all participants, namely virtual reality and the function it has/can have for the specific role the interviewee withholds.

Workshop

According to Michanek & Breiler (2013), a workshop is a work process where a group of people concentrates on a specific subject (often in a specific project). The time and place are determined before starting the workshop. A facilitator is often chosen since a workshop often needs guidance which in turn leads to a more successful workshop with a facilitator.

When having a workshop the aim often is to have a creative idea process. A workshop is a good tool in the development process puzzle, but it is important to mention that it is often just a small piece of the whole process. A workshop can be done in different ways, depending on the facilitator, the aim, and the participants. It is important to develop a specific plan and version for each workshop that is planned. The workshop method allows collecting data from many sources, compared with for example single interviews. It is a good tool to explore the participants' opinions and knowledge in a creative environment (Michanek & Breiler, 2013). The use of a workshop in this thesis was needed to get a broader picture of the employees' thoughts and feelings towards virtual reality without having to interview each person separately. The participants could come up with new thoughts by listening to each other which was an advantage in this case.

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8 (89) 2.3.4 METHODOLOGY TRIANGULATION

When using methodological triangulation, the purpose is often to ensure that the results for a research problem are correct. To be sure – as a researcher – that the results are not biased, more than one method for collecting data needs to be used (Cunningham, Young & Lee, 2000). According to Russell (2012) triangulation is also one form of pattern analysis.

Methodological triangulation can be divided into simultaneous triangulation and sequential triangulation. Simultaneous triangulation refers to the action of collecting data from two or more sources simultaneously, with limited interactions between the two sets of data. The findings during triangulation should be similar to each other to be considered accurate in working with triangulation. Sequential triangulation is however when the results from one source are needed to continue developing the next part of the research and collecting data from another source (Netanda, 2012).

Methodology triangulation was used during the thesis as a tool to analyze the data, to both ensure that the data collected was reliable and to analyze the data by finding patterns between the literature and the empirical findings. A piece of information was perceived as useless until it had been confirmed by at least one other source that expressed the same set of information. 2.3.5 REVIEW OF METHOD

The used method in the thesis is a case study, as mentioned above. The reason why a case study is chosen is because of the thesis’ purpose, scope, and limitations. The thesis’ main focus is to identify where VR activities can be included in the product development process and investigate how it is possible to assess virtual maturity, a case study is most preferable since the thesis investigates a specific company’s possibilities due to the purpose, and not companies in the industry in general.

A method that could have been used is multiple case study but was not chosen in the thesis. The thesis investigates a specific company, and not multiple companies, which means that case study is most suitable. If different companies’ attitudes towards virtual reality would have been investigated and compared with each other, a multiple case study had been preferable.

Since the purpose of the thesis is to identify when virtual reality can be used in the early phases of the product development process and to identify how virtual maturity can be measured, a deeper understanding of both the company and the tool is needed. This means that qualitative research is needed, which in turn means that the quantitative methods are not used. Bell (2016) describes that surveys can be used as a method in research, but the method does not gain a deeper understanding of a specific problem. The method is a good strategy to use when the aim is to gather a big amount of information from many people in a short time. The method on the other hand does not gain a deep understanding or detailed information about specific subjects (Bell, 2016). For this reason, the specific method was not chosen, since it was of great importance to gain a deep understanding.

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2.4 ETHICS

Ethical concerns will emerge when doing research. When getting access to an organization it is important to be aware of ethical concerns, what it is, and how it affects the organization. To overcome ethical concerns there are a number of ethical principles in order to help the researcher. The ethical principles are developed to recognize ethical issues that may occur in research. Examples of important ethical principles are listed in Table 1 and are based on Saunders, Lewis & Thornhill (2016).

Table 1: Ethical principles

ETHICAL PRINCIPLE DESCRIPTION OF PRINCIPLE

Respect for others The research must be based on respect and trust. There is a social responsibility to the participating individuals, and it is important to be aware of how individuals may be affected.

Privacy of those taking part Privacy is important and a key principle – it links to the other principles such as voluntary participation,

anonymity, informed consent, etc.

Voluntary nature of participation and right to withdraw

The participating individual always has a right to decide whether to participate or not. The participating

individual always has a right to not be harassed to participate.

Ensuring the confidentiality of data and maintenance of anonymity of those taking part

Research should not focus on the individuals or the organization that helps to provide the research answer. The research should answer the questions “who”, “when”, “what” etc. without focusing on the people involved. This means it is important to assure anonymity and confidentiality of the people and organization.

Responsibility in the analysis of data and reporting of findings

Privacy, anonymity, and confidentiality are also important when analyzing the data and reporting the findings. The primary data should not be changed or made up and the results have to be reported accurately and fully.

Bell (2016) describes that anonymity and confidentiality are two words that often are mixed. Both words mean different to different people, which means that it is important to differentiate the words and describe what the words mean. Confidentiality is a promise, where a person or an organization should not be identified or described in any circumstances. This means that information should be described in a way so that the reader can understand what the person or organization it is written about. Anonymity, on the other hand, means that not even the researcher knows who answered what and which respondents that undertook the questionnaire, for example.

There are ethical dilemmas to be aware of when undertaking interviews as well. It is important to talk about consent with the interviewee, which means that the interviewee has to get consent before undertaking the interview. However, this means that the interviewer should inform the interviewee about the interview. This could for example be to explain what the research is about,

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why there is an interest to interview the specific person, what kind of questions will be asked, and what the result will be of it. It is often better to inform this before the interview begins, preferably a few days ahead of time (Bell, 2016).

2.5 RELIABILITY & VALIDITY

According to Saunders, Lewis & Thornhill (2016), reliability and validity are central concepts when judging the research quality. Bell (2016) describes that the research always has to be critically reviewed, in order to know how reliable and trustworthy the gathered data is.

2.5.1 RELIABILITY

If a researcher can replicate the conducted research, and if it results in the same findings, the research has reliability (Saunders, Lewis & Thornhill, 2016). Bell (2016) describes that reliability is a measurement of to what extent the research will get the same result when measuring different days and a different time. A question that has one answer in one type of situation, and another answer in another situation, is not reliable. When asking opinions, reliability is hard since an answer to a question often is different depending on when it is asked. For example, the interviewee may recently have seen a tv-program that affects the person’s opinion. These types of situations are difficult to anticipate. However, it is important to be aware of it (Bell, 2016).

2.5.2 VALIDITY

According to Saunders, Lewis & Thornhill (2016) validity means the accuracy of the results and analysis, and how generalizable the findings are. Bell (2016) describes that validity is a more complex concept compared with reliability. It is a measurement of how well a certain question describes or measures what it is supposed to measure or describe. As can be seen, this is a vague definition and it often leads to further questions about the concept validity. Another definition is that validity means trustworthy conclusions in specific research. The data measures and describes exactly what it is supposed to measure (Bell, 2016).

2.6 THE THESIS IN PERSPECTIVE OF RELIABILITY, VALIDITY & ETHICS

The interviews were held in physical meetings and via Skype. The reason why the interviews were done via Skype was because of the geographical distance. One interviewee for example worked at Volvo CE in Braås which is a long distance from Eskilstuna. The interviewee in Braås had specific expertise within the field of virtual reality, which added to the importance to have interviews with the specific person. Since some of the interviews had to be held via Skype and not in physical meetings, the research quality may be inadequate in a particular matter. On the other hand, it was needed to have interviews with the specific interviewees, even though it had to be held via a digital meeting. However, the situation and the premises were still the same regardless of whether the interview was held physically or via a digital meeting, which means that the purpose of the interview for example was sent before the interview with the interviewee. The reliability of the interviews was ensured by asking the same questions to the people where it was possible. For example, questions about virtual reality, role, and background were the same even though it was different interviewees. This means that the repeatability of the research is high. On the other hand, Bell (2016) states that reliability is difficult when asking about opinions in interviews. This is often dependent on what type of situation it is, for example, what time it is or what day it is. When asking for opinions about virtual reality the reliability is lower

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since the answers are affected by the interviewee’s thoughts and beliefs (Bell, 2016). However, since the interviewers asked the same questions about virtual reality to different persons the reliability is still high.

The literature was critically reviewed. When reviewing the literature (such as conference papers, articles, books) it was checked if the same conclusions could be drawn by other authors. If the answer was yes, the literature could be considered reliable.

The validity of the research was ensured by for example using the same interviewers, take notes during the interviews and the interviews were also semi-structured. However, Bell (2016) explains that validity is a vague concept where it is difficult to measure how well the validity is ensured. Validity means the accuracy of the results and how generalizable the findings are (Bell, 2016). This was considered during the whole research, especially during the interviews. The findings are generalizable for the company in the matter since the selection of participants were from different departments across Sweden. The interviewers wanted to ensure a wide range of answers, which was done by selecting participants from different departments (such as project managers, managers, designers, etc.) and different cities at Volvo CE. The departments did not have the same knowledge about VR, and it was a big difference in how much VR was used at Volvo CE. Regarding the accuracy of the results of interviews and workshop, it is important to mention that the answers have been interpreted by the authors of this thesis, which means that the validity can be affected.

Ethics concerns were considered throughout the research, but especially when interviews were held. The interviewers informed the interviewee why the research was done, what it was about, and why the specific person was interesting. It was voluntary to participate in the interview and it was always possible to cancel before or during the interview. The confidentiality was also ensured since the answers often were confidential and were not allowed to be read by individuals outside the Volvo Group.

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3 FRAME OF REFERENCE

In this part of the thesis, all theoretical information has been gathered. Topics, such as virtual reality, trust, and technology readiness level are being presented as support for the research. The information in the frame of reference is necessary to understand the forthcoming chapters. 3.1 INDUSTRY 4.0

The concept of Industry 4.0 stands for the fourth industrial revolution. Industry 4.0 is the current paradigm in the industry and differs from former industrial revolutions in many ways. The 1st industrial revolution was mechanization. The 2nd_{revolution had to do with the usage of}

electrical energy and the 3rd industrial revolution had its focus on widespread digitalization. The 4th and current revolution is based on new, fast-developing, and advanced technologies (Lasi, et al., 2014). Industry 4.0 is an umbrella phrase that refers to key concepts such as Internet of Things, machine learning, virtual reality, etc. (Piccarozzi, Aquilani & Gatti, 2018).

3.1.1 VIRTUAL REALITY

The phrase virtual reality (VR) is based on the word “virtual” which is a philosophic perspective that means that something is existing potentially, and the word “reality”. The term was firstly used in 1986 and has since then become established. From an engineers’ perspective, the term often refers to a situation where human senses can be replaced by technology. Its purpose is to simulate a reality that isn’t real so that it can be experienced without actually existing (Yoh, 2001). The basis of VR is a simulation, but the virtual world should also give the impression of being real, which means that the simulation tries to imitate reality (Hammerschmid, 2018). VR can be used differently in different situations, depending on the goal. VR can be used in computer or video games but is also used for construction applications (NE, 2020). It has also been reported that VR applications have been used while treating psychological and physical disorders (Hodges et al., 2001).

Within the concept of VR, there are a lot of words and phrases to understand. In the list below a selected few are described.

HMD

The shortening stand for Head-Mounted Display and is an interactive technology that VR often revolves around. The HMD is the connection between the VR software and the experience for the user within the virtual environment (Lantz, 1996).

Mannequin

The mannequin (also called an avatar) represents the self in VR. According to Lugrin et al, (2018), there are different levels of the representation of the mannequin. “None” means that the body is invisible, often the controllers are the only thing seen. “Low” represents hands and underarms, but not much more, and “medium” is a visible body with features like the neck, head, torso, for example (Lugrin et al, 2018).

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It is a suit that captures a persons’ motions by help from sensors, put on a full-body suit. The sensors feel the movement of the person in the suit and translate it to an avatar in a virtual environment and were originally developed to revolutionize the gaming industry (Berezniak, 2018)

Haptics

Manual interactions with environments are often referred to as haptics. The interactions can both be accomplished by machine or human hands and can take place in both virtual and real environments. Within VR the interactions are often shown as tactile feedback for the user (Srinivasan & Basdogan, 1997).

Latency

In VR the time difference between a motion and the showing of this motion on the display is called latency and the goal is to have as low latency as possible to prevent motion sickness for the user. People react very differently to latency depending on the person's sensitivity. Some people don’t notice a latency of 100 ms, while others can notice a delay of 4 ms (Raaen & Kjellmo, 2015).

Immersion

The goal with immersion is to provide the user with the impression of being fully inside of a synthetic world, which is often done by the usage of HMDs (Springer, 2008). While in a virtual environment seeing, hearing, and being able to touch and/or manipulate objects gives the user a higher sense of immersion according to Srinivasan & Basdogan (1997).

MoCap

According to Qvortrup, (2001), Motion Capture (MoCap) is formally the process of capturing motions, often from humans, by using a device that can do this. All devices that do this are however not considered MoCap devices. An example of a device that does capture motion but is not a MoCap device is the computer mouse, while devices that store/register human motion and does not have a predefined purpose are MoCap devices.

DHM

The definition of Digital Human Modeling (DHM) is that it is a methodology used to perform an ergonomic assessment with the help of a digital manikin. The manikin is placed in a virtual environment to simulate the performance of a worker without putting the actual worker to risk. That means that DHM is a mathematical model that represents human behavior according to Ahmed, et al., (2019).

3.1.2 VIRTUAL REALITY IN INDUSTRY

The fast and competitive market requires companies to implement new technologies and methods in the processes, to be able to keep up with the requirements. This has to be done by the same time reducing costs, time, and improving the quality (Choi & Cheung, 2008).

One of the industries where VR can be implemented is within the product development and design industry. Fiorentino et al. (2002) state that the product development process takes time and the design phase is one of the biggest bottlenecks in the process. Reasons for this are often misunderstandings and costs, both because of long lead times and customer requirements.

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Building physical mock-ups are both costly and take time, which is one of the reasons why the design phase is a bottleneck. When building physical mock-ups, the builds often needs reverting and repeating, which means that physical mock-ups often are built more than ones, which in turn leads to high costs and long lead times. This works against the fact that the market is fast and requires a high technology rate (Fiorentino, et al., 2002). According to Mujber, Szecsi & Hashimi (2004) VR can be used in many phases in the industry processes, for example in planning (for all big areas), design, simulation, operations management, manufacturing, assembling, inspection, etc. If VR is implemented in the design phase in the product development process, it is possible to, for example:

• Work as a whole design team. One big opportunity with VR is that the team can work together in virtual environments. This enables multidisciplinary teams that enable the team to work together rather than individually (Mujber, Szecsi & Hashimi, 2004). • Create virtual builds instead of physical mock-ups. The most common way is to rely upon physical mock-ups, but with the VR tool, it is possible to replace it with virtual builds. Since it is common in the earlier steps in the design phase to do a lot of adjustments, modifications, and changes before the product release, VR allows “trial-and-error” without big costs and long lead times (Shao & Robotham, 2012). • Create 1:1 scales of prototypes, compared with other tools that often don’t allow that. This creates another dimension for the user and adds more information early in the development. The user can experience it as it is in the real world, which permits the user to identify possible issues and visual constraints (Noon, et al., 2012).

VR holds an important potential role in industries mainly to solve problems. However, VR is applicable in many areas in industries and comes with a lot of opportunities, which makes it important to know when to use VR and how (Mujber, Szecsi & Hashimi, 2004).

3.1.3 SENSES IN VIRTUAL REALITY

The purpose of VR is to give the user a feeling of being in a real world without actually being there. The goal of the virtual world is to mimic a real situation to fool the human senses. Using a VR tools puts the user into a psychological conflict, where the brain takes in the visual information of a virtual room and understands that it is virtual at the same time as it gets fooled into thinking it is real. There are often common traits between the virtual and the real world, such as the shape of the floor, to make the transition into the virtual world smoother (Lécuyer, 2017)

Psychological conflicts can be seen in various ways. For example, users often refuse to jump into a pit in the virtual world, even if they know that they are located in a room without a pit in the floor. The brain takes over and the visual of the virtual pit wins over the actual knowledge, according to Lécuyer, (2017).

There are however senses that are excluded from the virtual world. Vision is the primary sense that is stimulated in VR, but sometimes other senses are necessary to stimulate. The sense of touching can be simulated with the help of haptics, even if it is not close to the real feeling of touching an object. The feeling of weight can however not be simulated (Lécuyer, 2017).

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3.2 INDUSTRY 4.0 MATURITY MODEL PROPOSAL

This is a model that has combined four key elements to creating a proposal for how companies can work within the industry 4.0 area (Santos & Martinho, 2019). The key components in the “Industry 4.0 maturity model proposal” are dimensions, transformation capabilities, maturity levels, and measurement instruments. The dimensions used in the model are Organizational strategy, Structure and culture, Workforce, Smart factories, Smart processes, and Smart products and services. Transformations capabilities are described as areas of interest, which creates the ability to measure the maturity of a company while using the model. The third key component – maturity levels – describes a ladder of six levels (where the lowest level is 0 and the highest level is 5) that evaluates the dimensions along with the transformation capability. In Table 2, the levels are generally described, and the information is derived from Santos & Martinho (2019).

Table 2: Industry 4.0 Maturity Model Proposal

LEVEL DESCRIPTION

0 Low or none degree of implementation

1 Pilot actions being planned or being developed

2 Implementation of actions initiated, with some benefits being observed

3 Partial implementation of actions, that enhance the competitiveness of the company

4 Advanced implementation of actions, with clear economic returns

5 Reference in applying the concepts and implementing the technologies of Industry 4.0

Companies within the field of industry or service are preferable candidates to work with the model. However, the purpose of the model is not to address what actions are needed to increase a company’s level of maturity but to evaluate what state the company is currently at. The model proposal was being validated at a company within the field of the automotive industry and was well succeeded, according to Santos & Martinho (2019).

3.3 THE TECHNOLOGY ACCEPTANCE MODEL

The concept of the technology acceptance model (TAM) has its origin in a thesis written by Davis (1985) and has been widely used since then. The model has evolved throughout the years and is no longer in its original form (Lee, Kozar & Larsen, 2003).

The aim of the original technology acceptance model was divided into two parts, where the first part was to understand the process of accepting a technology, while the other was to implement an acceptance test for the users. The factors composing technology are perceived usefulness along with perceived ease of use. The definition of perceived usefulness is that the user believes that the technology will be helpful to enhance their performance. Perceived ease of use is defined as the belief that it will be effortless to use the technology, according to Davis (1985).

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To accept technology has been proven to be fundamental when implementing a new system according to Venkatesh & Davis (2000), since it explains the intention users have to use the system and has therefore developed the TAM further, to what is called TAM2. The primary TAM is still central as a model, but some factors have been added. From this point, the model has been evolved once more, to TAM3 (Venkatesh & Bala, 2008), and is a more intricate model than TAM.

The factors that have been added from TAM to TAM2 are Voluntariness and social compliance, Image, Job relevance, and Output quality to name a few (Salanitri, 2018). Voluntariness and social compliance are explained as the need for subjective norms to positively influence the user's intention of using the technology if it is mandatory. Image has to do with the fact that people often behave in certain ways within a group to maintain or gain a good image. If the job someone does is relevant for their work tasks, it is called job relevance, which is an important factor for motivation to learn and use a newly implemented technology. Output quality is a factor that represents how good a system or new technology performs a task, which is important to motivate the user to work with it (Salanitri, 2018).

As earlier mentioned, additional factors have been added between the second and the third version of the TAM. These are, according to Salinitri (2018), Computer self-efficacy, Computer anxiety, Perceived enjoyment, and Computer playfulness which are all important factors to take into consideration when implementing a new technological system. Computer self-efficacy is described as the ability a user has to perform a task by using the technology or to understand how to perform the task. Computer anxiety is the user's perceived anxiety to start working with a new system and is related to the lack of belief in their self-efficacy. Perceived enjoyment regards the enjoyment a user feels while working within the new system, but has nothing to do with how well the task is performed. Regarding Computer playfulness, the goal is to get the user to work with the new technology solely because it is fun and this should happen spontaneously, rather than because it is mandatory. The factors that have been added from TAM to TAM3 by Venkatesh & Bala (2008) can be seen in Figure 1.

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The large dotted box in Figure 1 is how the original TAM was designed, and all the squares outside the box, with arrows pointing towards it, are the extended version of the model. The TAM3 is developed as a more specific way to gain technology acceptance and all the factors that need to be taken into consideration when implementing a new system or technology (Venkatesh & Bala, 2008).

3.4 TECHNOLOGY READINESS LEVEL

To estimate the technological maturity of something the system called Technology Readiness Level (TRL) is often used. The system is commonly used by NASA and is based on a scale from 1 to 9. On this scale 9 is the most mature technology and 1 is the least mature technology (Neill & Hashemi, 2018).

The movement from TRL 4 and upwards is the place where technologies most often fail and also the level where the technology goes from the laboratory into a pilot scale in a relevant environment. The capital investment is high, and there is very little chance of returning after

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this point, according to Armstrong (2015). A further description of the different levels within the scale, by Armstrong (2015), can be read in Table 3.

Table 3: Scale of Technology Readiness Level

TRL 1 Basic principles observed and reported

TRL 2 Technology concept and/or application formulated

TRL 3 Analytical and experimental critical function and/or characteristic proof-of-concept

TRL 4 Technology basic validation in a laboratory environment

TRL 5 Technology basic validation in a relevant environment

TRL 6 Technology model or prototype demonstration in a relevant environment

TRL 7 Technology prototype demonstration in an operational environment

TRL 8 Actual technology completed and qualified through test and demonstration

TRL 9 Actual technology qualified through successful mission operations

3.5 TRUST

Trust in organizations is a complex concept and widely discussed – how trust should be created. There is no single definition of what trust is and what it is not in organizations, because of the big debate between researchers. The term trust does also mean different depending on when it is used, which means it could be divided into situational trust and personal trust for example. If trust exists or not in an organization is depending on several factors in the organization, such as organizational structure, communication, commitment, and job satisfaction. However, trust is important and must be considered in organizations to attain success and change (Connell & Ferres, 2003).

3.5.1 TRUST IN PEOPLE

It is worth mentioning again – trust is important in organizations and situations, especially in situations when there is an uncertainty with the possible outcome. The term trust is often used in terms of “trust in people”, without any regard for the trust in technology, but there is a difference. It is also important to mention that there are different types of trust. The different types of trust evolve when the development of trust evolves. For example, there are initial trust, calculus-based-trust, knowledge-based trust. The difference between the different types of trust is if an individual feels instant trust or if it takes a longer time. Calculus-based-trust is for example when an individual calculates based on time and cost if it is “worth” trusting the person. This means that trust can evolve in many ways and is dependent on the situation and the people involved (McKnight, et al., 2011).

As mentioned above there is a difference between trust in people and trust in technology. Trust in technology is often more complex since it depends on both persons’ and the technology – what kind of technology it is. Different technologies have different issues that affect trust (McKnight, et al., 2011). Lippert & Swiercz (2005) states that there are four aspects that are

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important to note when discussing trust in people and technology (both similarities and differences), which are:

• It is impossible for a technology to trust in return, but a trust toward a system is possible. There is in other words a one-way trust.

• The measure of trust is different when evaluating trust in technology and trust in people. • The trust evolves when an interaction occurs, in both types.

• There is a perception of the object (either a person or a technology) of trust, for both types

McKnight, et al. (2011) compared the two types of trust, where one big difference between the types is that individuals expect emotional feelings with the term trust in people. The trustor’s expectation of the trustee is for example a caring, considering, moral, and helping the individual. Compared to the term trust in technology, the trustor’s expectations are that the trustee provides effective help, rather than empathy and caring actions (McKnight, et al., 2011). 3.5.2 TRUST IN TECHNOLOGY

McKnight et al. (2011) describe that trust has an important role, but there is a difference between trust in people and trust in technology, which is important to clarify. One explanation of why technology is harder to trust is that it is more natural for an individual to trust in a person. However, it is important to be aware of the difference between trust in people and trust in technology, to be able to develop a trust for both. The definition of trust is still the same since the situations when trust arises is when an individual relies on a person or object.

Trust in technology is characterized by how the individual behaves with certain technology. In a specific technology, trust will positively affect individuals. This means that individuals’ have a will to explore the specific technology and a will to explore more features of the technology. Another important aspect if the individual is more prone to use technology is to what extent the technology provides help when the user needs it. If technology can help the user in an effective way an individual is more prone to use it, compared with if the technology isn’t helping the user with a certain task. This means that technology has to be reliable and help a user when needed with specific tasks (McKnight, et al., 2011).

3.6 ORGANIZATIONAL BEHAVIOR

In more than 20 years the term organizational behavior has been deeply researched. Organizational behavior means that individuals' personalities effects organizations in different ways. Individuals' behaviors, personalities, and the nature of people create new terms within organizations which in turn leads to important situations in organizations that are important to be aware of (Judge, et al., 2008).

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20 (89) 3.6.1 WORK MOTIVATION

Pinder (2014) describes that work motivation is different compared to motivation, and it is important to separate the terms. The word work motivation has many definitions, but there is a traditional definition that often is used. Work motivation means “a set of forces” that comes from an individual’s being, that initiates a work-related behavior. In more simple words the term work motivation means that productive and independent work behavior often is based on a high motivation (Pinder, 2014).

3.6.2 LEADERSHIP

NE (2020) describes leadership as having a controlling position but depending on the situation the control can be different. There is also a difference between informal leadership and formal leadership. Informal leadership is not directly connected to tasks and goals, which formal leadership is. Formal leadership is common in companies and organizations and requires performing tasks and achieving goals. There is also a difference between a manager and a leader, a manager could for example also be a leader but doesn’t have to be. If leadership is a personality or something that can be learned is widely discussed and there is still no scientific evidence that a leader is born to be a leader because of personality traits (NE, 2020).

According to Miner (2005), there are different types and theories for leadership, which means it is a broad topic and widely discussed. Some claim that it is not possible to divide leadership into different categories since individuals are more complex. For example, one leadership style is charismatic leadership, which is when a leader can affect the followers to a high degree, influence behaviors and beliefs (Miner, 2005).

3.6.3 TEAMS

Katzenbach & Smith (2015) describes that a team is a group of individuals that are gathered for a variety of reasons, to perform tasks and achieve goals. Why teams work or do not work is depending on a large number of reasons, which can be called “team basics”. This is important to understand when creating a successful team. There is a need for understanding skills, commitment, emotions, and performance. High-performance individuals are for example highly committed to the goals and purpose. It is important to understand these types of personality traits to be able to create a well-functioning team.

One important thing to mention is that behavioral change occurs easily and to a greater extent in the team context, compared with individual change. One reason for this is the collective commitment that teams have. This means that the team can act differently just because the individuals are in a team and not alone. A team is not as threatened as when the individuals are alone, which means that team members can “hide” behind the group instead of standing up for their opinions alone. However, this is not a well-functioning team and not a desirable situation. When a team works, the members encourage each other, supporting and allow different opinions (Katzenbach & Smith, 2015).

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21 (89) 3.6.4 DECISION MAKING IN ORGANIZATIONS

Fox (2006) describes that analyzing decision making is important to the future study of the organization’s management and behavior. Decisions are based on psychological and social factors, which means that both have an effect on the decision. Individuals both take a decision based on feelings, mental sets, and emotions. Decisions are also based on rationality which is the opposite of feelings and emotions.

There is a difference between making decisions individually and in a group. Group decision making is the most common way to make decisions in an organization, which could be between managers. Taking decisions between managers is not necessarily always the case, that depends on the organization's structure and what type of decision the group needs to take. A group decision can lead to a lower quality of decision but can also lead to a higher quality – compared with individual decisions. There is a large amount of both advantages and disadvantages with group decision making – which is highly dependent on well the group work (Fox, 2006). 3.6.5 ORGANIZATIONAL CULTURE

The phrase organizational culture can be seen as an umbrella concept to describe a way of thinking within an organization. This way of thinking lays as a foundation for how the organization is functioning depending on different situations. Experience among the employees, rituals that are re-occurring within the organization, and what behaviors are preferred during events within the organization are examples of what culture within an organization contains. It also includes values and assumptions, and the managers have a greater influence on the culture within an organization than a newly hired person has (Alvesson, 2012). Organizational culture can be both beneficial for the people working within an organization, but it can also be negative. Organizational culture as a positive thing can for example be if the culture is to cheer on each other and encourage everyone to think outside the box. Being supportive and believing in one another is a positive cultural approach. However, the culture of an organization can also be toxic. If there is a clear hierarchy among the employees it is easy to feel left out as a newly hired person, a younger person, or a person that does not claim the same traits as a person who is high in rank in the hierarchy (Alvesson, 2012).

3.7 PRODUCT DEVELOPMENT PROCESSES

Depending on which product development process a project chooses to follow, the process is different. For example, David G. Ullman proposes a process named “The mechanical design process”.

3.7.1 THE MECHANICAL DESIGN PROCESS

Ullman (2010) describes that there are 4 areas that a product goes through life. “The life of a product” contains product development, production, and delivery, use, and end of life. The phases within the area “product development” is:

Identify need → Plan for the design process → Develop engineering specifications → Develop concepts → Develop product

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This can be translated into a more general process that can be applied to both new innovative products and existing products. Depending on how much change a product needs, the details within the process can be changed. A general mechanical design process is according to Ullman (2010) can be seen in Figure 2.

Figure 2: The Mechanical Design Process

Product Discovery

It is important to identify a need before a product is designed or redesigned. This is often divided into technology push, market pull, and product change. The phase often contains defining potential projects by writing a list of ideas. Companies have not unlimited money and people, which means a project must be chosen before the “project planning” can begin (Ullman, 2010). Project Planning

The second phase is called “project planning” and means that the company has to plan the resources for the project. The resources are often money, people, and equipment. With a new innovative product, the resources are more unknown and more difficult to determine, compared with the development of a product that is similar to the earlier one. In phase two the design team is formed since a product development process rarely is done by one person (Ullman, 2010).

Product Definition

Phase three, the product definition phase, it is important to understand the problem. The “understanding the problem” task is a difficult and complex task and takes time. It is important not to underestimate the time that it takes to get a clear picture of the problem. Depending on whether the product is new or further developed the customer requirements for example can be more difficult to understand with a new product. The result of phase three is an understanding of how the design problem looks like and how it can be decomposed into smaller sub-problems (Ullman, 2010).

Conceptual Design

Phase four, “conceptual design” means generating concepts, evaluating concepts, make decisions, and approving concepts. It also includes refining the plan since it common that the concepts need to be refined. It is important to mention that this is an iterative phase since everyone both inside and outside the team (including customers) must agree with the result. The customer is often involved in this phase which means that the customer requirements have to be fulfilled too (Ullman, 2010).

Product

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When the concepts are evaluated phase four can begin. In the “product development” phase the concepts need to be refined into products. It is important to mention that it is not a good idea to start the project in this phase since that often leads to costly changes later in the project. The earlier phases are very important and each of the individuals has to agree with every part of the project. If this is neglected costly changes are needed later in the project, which can be avoided if the earlier phases are done carefully. At the end of phase four, the product is released for production (Ullman, 2010).

Product Support

Usually, the project isn’t over when the product is released for production. Engineers’ responsibility often includes supporting customers, vendors, assembling, etc. Introducing customers to the product is also an important and common task which shouldn’t be forgotten. The “product support” phase is the last in the mechanical design process and often ends with the retirement of the product (Ullman, 2010).

3.8 FORM FIT FUNCTION

The three F’s stands for Form, Fit, and Function (often called FFF) and are the basics when products are being developed and/or manufactured. The analysis of the three F’s is used by engineers to examine whether parts match each other and withholds their form, fit, and function even when they for example are assembled (Beck, 2019).

The F that stands for Form explains the appearance of the part. This can include color, size, and weight for example. Fit describes if a part fits as it should if it for example is supposed to be assembled with other components. This can for example be the size of a hole that will hold a screw. If the hole fits the screw, the fit is proper. Fit is the relationship between different parts. Regarding Function, it describes whether a part or assembly does what it is supposed to. For example, if a hinge connects two parts as well as performs the task it is needed (Beck, 2019).