Basic principles in product engineering

Professor Y. C. Chan

Chair Professor of Electronic Engineering

Engineers in Society ( EE3014 )

Lecture Series

Product Life Cycle

Figure 1 shows the hypothetical course of a product’s sales and profits from inception to demise. The product life cycle begins when the company finds and develops a new product idea. During product development, the company accumulates increasing investment costs. After the company launches the product, sales pass through an introductory period, then through a period of strong growth, followed by maturity and eventual decline. Meanwhile profits go from negative to positive, peak in the growth or mature sales stages, and then decline.

The product life cycle presents companies with two major challenges. First, because all products eventually decline, the firm must develop a process for finding new products to replace aging ones (the problem of new product development.) Second, the firm must understand how its products age, and adapt its marketing strategies for products as they pass through different life-cycle stages.)Source: Principles of Marketing, Prentice-Hall International Editions, Philip Kotler (8 th Edition, 1999)

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Product Life Cycle

Source: Principles of Marketing, Prentice-Hall International Editions, Philip Kotler (8 th Edition, 1999)

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Fiber O

ptic

Techn

ologie

s

Display

Techn

ologie

s

Micr

oelec

tronic

s

Techn

ologie

sPackaging

Technologies

Magnetic/Optical

Storage Technologies

Consumer

Computer

Telecom

Medical

Aerospace

Transportation

USA

Sof

twar

e, A

ppli

cati

ons

Battery Technologies

PLC applies to every product & service

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Every part needs product development & innovation

Apple® Computer

Nokia® Cellular Phone

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Product life cycle - a key concept in engineering and product development

• R & D• Introduction• Growth• Maturity• Decline

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Paradigm shift in operating business

• Changing business models• Dynamic market • Globalization• Maximization of cost-effectiveness

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User Driving Force1. Portability

– Smaller Dimensions– Low Power

2. Personal Digital Assistant (PDA)– Wireless Communication– Display Technologies

3. Multi-media– Digital Signal Processing, Data, Voice

and Video Compression – Display Technologies– Intelligence on Networking– MPEG, JPEG

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Technology Driving Force

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1. IC design and fabrication technology

- Smallest feature sizes in IC, design rules and reliability, cost etc

2. RF Technology– Wide Band and Digital Communication, Wireless

Revolution

3. Fibre Optics bandwidth, and transmission rates

4. Electronic Design Automation– Moore’s law – Chip complexity increases at the

phenomenal rate of about 2X every two years.– Productivity has to increase by 2X every two years.

Future Trend

1. Convergence of computers, communications and consumer Electronics e.g. Multimedia telecommunications

2. Confluence of technologies driving new products (Video / data compression RF, Handwriting Recognition, wideband transmission, micro fabrication, communication software etc.) e.g. mobile telephone / computer

3. Software and content determining industry growth

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Strength and Weakness of Hong Kong

Strength - Cost efficiency, timely delivery, high quality and market intelligence

- Cosmetics, appearance, user interface & Manufacturability

Weakness - Not enough R & D and after sales services weak in promoting brand name

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Business Model

Partnership

US/Europe/Japan provide R & D (New Product ideas)

China provides Labour and Land for manufacturing

Hong Kong acts as marketing, distribution and financial Centre.

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Challenge and Development

1. Recognize the various threats and opportunities in the rapid changing society. Turn them to advantages

2. Acquire technologies and skills required to participate in the emerging market

3. Be an Entrepreneur with positive attitude

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Lecture Series