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Abstract The method of “Key Characteristics” (KCs) is gaining popularity in many US companies as a way to focus the organization on important product features that have a significant impact on product and customer requirements. (Lee et al., 1995; Lee and Thornton, 1996) Research was undertaken at several major US corporations to understand the current and best-practice use of key characteristics. The methods in use were found to be lacking in formality and ease of application. Our observations and subsequent research has resulted in the enhanced key characteristic definitions, categorization, prioritization, and identification methodology presented in this paper. Two case studies using an automotive and an aircraft product are used to illustrate the key characteristic identification method. A high risk key characteristic (referred to as “StatKCs” in this paper) identification technique was also developed that establishes a quantitative relationship between customer requirements and manufacturing costs. The methods presented in this paper can be used to support efficient and effective strategic and operational decisions during the product realization process.
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