9-1

Chapter 9

Developing Products

© David O’Sullivan 2008

9-2

Reflections Outline the key stages of a project life cycle. Explain the issues around planning, scheduling, and

controlling a project. Explain the difference between workpackages, tasks,

and deliverables. Construct a simple cost–benefit analysis for a project. Explain the following expression: Risk = ƒ(event,

probability, impact). What are the six stages of the buyer experience life

cycle? Detail a simple form for capturing critical data for a

project workpackage.

9-3

Activities

[Discussion of selected student ‘Activities’ from previous chapter]

9-4

Learning Targets Outline the key stages in the stage gate

process for new product development Detail project investment issues for new

product innovation Define a number of ways to share

investment in product development Outline a number of ways of protecting

innovations Explain the product exploitation process Discuss the special role of

entrepreneurship in product exploitation

9-5

New Product Development Development leads times can range

from a few months to decades First to market offers monopoly with

premium pricing and ease of marketing

E.g. a 6 month delay can results in 33% reduction in profits

Protection can be important and adds to delay

The Design Process

9-7

Stage Gate Process

9-8

Design Process Effective design can provide a competitive

edge matches product or service characteristics with

customer requirements ensures that customer requirements are met in

the simplest and least costly manner reduces time required to design a new product

or service minimizes revisions necessary to make a design

workable

9-9

Design Process (cont.) Product design

defines appearance of product

sets standards for performance

specifies which materials are to be used

determines dimensions and tolerances

Service design specifies what

physical items, sensual benefits, and psychological benefits customer is to receive from service

defines environment in which service will take place

8-10

New CoreProcess

Next GenerationProcess

SingleDept.Upgrade

Tuning& IncrementalUpgrades

NoChange

New CoreProduct

Next GenerationProduct

Addition toFamily

Add-ons andEnhancements

ComponentChanges

No Change

PROCESS

PRODUCT

Next GenerationDevelopmentProjects

Radical

Incremental

(Source: Wheelwright and Clark, 1992)

9-11

Product Life CycleId

ea G

ener

atio

n St

age

Idea

Eva

luat

ion

Stag

e

Bus

ines

s / T

echn

ical

Feas

ibili

ty A

naly

sis

Stag

e

Tech

bica

l Res

earc

han

d D

evel

opm

ent

Stag

e

Prod

uct (

Mar

ket)

Res

earc

h an

dD

evel

opm

ent S

tage

Prel

imin

ary

Prod

uctio

n St

age

Mar

ket

Test

ing

Stag

e

Com

mer

cial

Pr

ocuc

tion

Stag

e

Intr

oduc

tion

Stag

e

Mar

ket

Dev

elop

men

t Sta

ge

Rap

id G

row

th S

tage

Com

petit

ive

Turb

ulen

ce S

tage

Mat

urity

Sta

ge

Dec

line

Stag

e

Aba

ndom

ent

Stag

e

PremarketPhase

MarketPhase

Sales

Profits

IdeaMortalityRate

NegativeProfits(Investment)

Time

Dol

lars

Idea

s

100

0

R & D

9-12

Feasibility Studies

Marketing Screen Operations Screen Finance Screen Competitor Analysis Price-performance Screening Financial Analysis

9-13

Rapid Prototyping

Build a prototype form design functional design production design

Test prototype Revise design Retest

Quality Function Deployment

Quality Function Deployment

Traditional Approach

An approach to product design that tends to separate design and manufacturing engineering

Product design develops the new design, sometimes with small regard for the manufacturing capabilities possessed by the company

There is little interaction between design engineers and manufacturing engineers who might provide advice on producability

Concurrent Engineering

An approach to product design in which companies attempt to reduce elapsed time to bring a new product to market by integrating design and manufacturing engineering, and other functions

Manufacturing engineering becomes involved early in the product development cycle

In addition, other functions are also involved, such as field service, quality engineering, manufacturing departments, vendors, and in some cases customers

Concurrent Engineering All of these functions can contribute to a

product design that performs well functionally, and is also manufacturable, assembleable, inspectable, testable, serviceable, maintainable, free of defects, and safe All viewpoints have been combined to design a

product of high quality that will deliver customer satisfaction

Through early involvement of all interested parties, the total product development cycle time is reduced

Design for Manufacturing and Assembly

Estimated that 70% of the life cycle cost of a product is determined by basic decisions made during product design Decisions include material for each part,

part geometry, tolerances, how parts are organized into subassemblies, and assembly methods

Once these decisions are made, the ability to reduce manufacturing cost of the product is limited

How Design Affects Process Planning Example: If the product engineer designs an

aluminum sand casting with features that can be achieved only by machining Then the process planner must specify sand casting

followed by the necessary machining operations The manufacturing engineer might advise the

designer that a plastic molded part would be superior It is important for the manufacturing engineer to

have an opportunity to advise the design engineer as the product design is evolving

Design for Manufacturing and Assembly

An approach to product design that systematically includes considerations of manufacturability and assembleability in the design

DFM/A includes: Organizational changes Design principles and guidelines that

should be implemented during product design

Organizational Changes in DFM/A To implement DFM/A, a company must make

organizational changes to provide closer interaction between design and manufacturing personnel Often done by forming design project teams

consisting of product designers, manufacturing engineers, and other specialties

In some companies, design engineers must spend some career time in manufacturing to learn about the problems encountered in making things

DFM/A Principles and Guidelines DFM/A includes principles and guidelines that

indicate how to design a given product for maximum manufacturability

Many of these principles and guidelines are universal Rules of thumb that can be applied to nearly any

product design situation

In addition, DFM/A includes principles that are specific to given manufacturing processes

Examples of DFM/A Principles Minimize number of components in the product Use standard commercially available components

wherever possible Use common parts across product lines Design parts with tolerances that are within process

capability Design product for foolproof assembly Use modular design Shape parts and products for ease of packaging Eliminate or reduce adjustments

Other Product Design Objectives Design for quality

Principles and procedures to ensure that the highest possible quality is designed into the product

Design for product cost Efforts to specifically identify how design decisions

affect product costs and to develop ways to reduce cost through design

Design for life cycle Gives consideration to costs associated with

reliability, maintainability, serviceability, etc., which may be a significant portion of the total cost of the product

9-27

Product Funding

9-28

Protecting New Products

patents copyright design rights trademarks

9-29

Commercializing New Products Compliance with industry standards Compatibility with existing products Production costs Distribution capability After-sales service

Production Plan Market Launch Plan

9-30

Feasibility Studies

Marketing Screen Operations Screen Finance Screen Competitor Analysis Price-performance Screening Financial Analysis

9-31

Linkages with Marketing Relative advantage of the new offering over its

predecessors and competitors Compatibility of the new offering with existing skills,

technological platforms, and industrial standards Complexity, relating to how easily the offering can

be understood and used by the customer Trialability, relating to the amount of opportunity

that the potential customers have to test the offering, to learn more and reduce their risk perception

Observability, which reduces risk perception and relates to the degree to which potential customers can see other consumers use and benefit from the offering

9-32

Adoption of New Products

9-33

Entrepreneurship

Entrepreneurial zeal Business planning Exit strategy

9-34

Summary Outline the key stages in the stage gate

process for new product development Detail project investment issues for new

product innovation Define a number of ways to share

investment in product development Outline a number of ways of protecting

innovations Explain the product exploitation process Discuss the special role of

entrepreneurship in product exploitation

9-35

Activities

9-36

Search Online

http://mitworld.mit.edu/ Democratizing Innovation (E. von Hippel) A Conversation with Jack Welch Innovation at the Interface:

Technological Fusion at MIT - Edward B. Roberts, Rodney A. Brooks