Applicable Areas Business Logic Case Presentation Cost Design Overall Program Management

It’s All about the Business The FSAE competition – beyond design to how Engineers integrate into the business Adding Value Selling your ideas

The most important skills beyond Engineering Customer knowledge Financial Acumen Marketing Human Relations Communication

The Key Stages for New Products There are 5 key steps that must be addressed by almost all businesses for the development and introduction of new products. Step 1. Conception and Creation Step 2. Achieving Market Driven Products Step 3. Achieving an acceptable Product/Business Equation Step 4. Developing the Product Step 5. Managing the Implementation.

Company Profit Gov’t. Regulations Company Standards Internal Customers Industry Standards Time & Resources Sustainability Cost Targets External Customers

Company Profit FSAE RULES Company Standards Internal Customers Gov’t. Regulations FSAE RULES Company Standards Internal Customers Company Profit Industry Standards Time & Resources Sustainability Cost Targets External Customers

Generic Product Development for Manufacturing Concept to Definition to Design to Verification to Introduction Initial Ideas Specific Data. Creating the Making sure it In Production or detail. works. Customers’ hands. New Products Lists of Objectives. Lines on Paper. Measure results Competitition against objectives. Applying new Describing it so (End Game - too ideas from others understand. Models made. Hardware Testing Late for any other industries. changes!) Last Year’s Benchmark Equal but Allow enough Competition top cars. different. time!! Thursday

Product Targets Cost – Variable & Fixed Function Timing Plan System Target Deployment Trade Offs Commitment (Firm Objectives)

Comparison Methods – Pugh S = Same: + = Better: - = Worse Design Alternatives Design Criteria Alt 1 Alt 2 Alt 3 Criterioon A Criterion B Criterion C Criterion D Crit. E,F,G.H,J etc. S + - _ Total + Total -

Weighted Rating Method This method can be used for establishing relative importance and Ratings for alternative designs or functions in the Trade-Off , Value Management and Decision Making processes.  List all the Musts and Wants or the Vehicle Functions Apply Weighting Factors to each of the Musts and Wants or Vehicle Function. These Weightings will be assigned a number from 1 to 10, with 10 being the most important. If the Musts are all truly Musts, they should all be assigned weighting factors of 10. Priority Ranking Lists can be used to help set the relative weighting of the other functions (1 - 10.) Check that the relative Weighting ratings appear reasonable. Recognise the Sensitivity of the result to the Relative Weighting you have assigned to the functions - particularly the higher priority items. . Adjust if necessary.  Generate ideas for Alternative solutions (Brainstorming; team groups; similar products;) Estimate a Raw Value ( from 1 to 10 ) for how well each Alternative will perform the function. Enter the Raw Values into the table and then compute the Weighted Value Score. Total the scores for each Alternative and select the nominal winner. Assess the risks potentially arising from selection of this Alternative. If the potential risks appear too large, then move to the next best Alternative and repeat the process.

Decision Analysis Weighted Rating Method Alternative 1 Alternative 2 Alternative 3   Function # Weighting Raw Value Weighted Value Weighted Value 1 4 3 12 1 4 7 28 2 2 6 8 5 10 3 6 2 42 4 1 etc Total - 41 60 82

Generic Product Development for Manufacturing Concept to Definition to Design to Verification to Introduction Initial Ideas Specific Data. Creating the Making sure it In Production or detail. works. Customers’ hands. New Products Lists of Objectives. Lines on Paper. Measure results Competitition against objectives. Applying new Describing it so (End Game - too ideas from others understand. Models made. Hardware Testing Late for any other industries. changes!) Last Year’s Benchmark Equal but Allow enough Competition top cars. different. time!! Thursday

Technical Applications Variability Data Driven decisions. Dig beneath the surface. It’s best to Avoid rather than Fix Problems. The value of a well defined project plan covering all required activities.

Operational Factors Everything is Part of a System Teamwork works Organise People as well as Processes Clearly Define “Who”. Two way checks. A WHAT for every WHO and a WHO for every WHAT. Clear Delegation

TIME The Most Valuable Item Meeting dates is the most important aspect of project management Teams which meet dates tend to also meet their other objectives (assuming realistically set) It is often better to meet the completion date with a less than “perfect” design than to keep designing “The enemy of Good is Better An undeveloped “perfect” design will usually be beaten by a well developed satisfactory design

Risk Management Determine the Potential Sources of Risk and Categorise the potential sources. Recognise the different types - K/K; K/U; U.    Determine the Potential Impact of each Risk - Quantify the impact and then Prioritise   Determine if there is any potential to compound the risk. Develop Plans to Avoid incurring Risk wherever possible. Develop Plan to Minimise the Potential Risks (Prioritised) Develop Plans to ensure Detection of Risks. (Avoiding new ones) K/K - Known or understood Risk and Impact if it occurs. K/U - Known Risk or Source but Impact Unknown U - Recognition that there is an risk but both its source and Impact are Unknown. (EV teams please note)

Program Profit Annual Profit = Volume x $(Price – Variable Cost) - $Investment/Life Cycle (Years) - $Annual Fixed Costs

PRICE VOLUME Profit Matrices -10% -6% -3% 0 +3% +6% +10% +10% +6% +3% -10% -6% -3% 0 +3% +6% +10% +10% +6% +3% VOLUME -3% -6% -6% -10% Base $

INVESTMENT Profit Matrices -15% -10% -5% 0 +5% +10% +15% - 10% - 6% -15% -10% -5% 0 +5% +10% +15% - 10% - 6% - 3% Var Cost + 3% + 6% + 10% Base $

Value Definitions Value - That property of something that makes it esteemed, desirable or useful; - The relative worth of an object.    VALUE = FUNCTION COST Value Planning - The approach to establishing and maximising the Relative Value of a product prior to commencement of design. Value Benchmarking - The establishment of Comparative Value or a range of similar or competitive Products and/or Systems   Value Engineering - The process that applies cost and function analysis to develop Design Alternatives, to maximise Final Value..

Value Process for other Attributes Value - The value process can also be used to optimise other attributes beyond Cost. Weight could be the value currency, so that the process can also be used to optimise your vehicle for weight if you decided that was more important than cost (e.g. NASA going to Mars)    VALUE = FUNCTION WEIGHT Similarly, the process can be used to help optimise fuel consumption of a vehicle relative to the other attributes, although Cost and Weight are the most common application of the process.