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) Engineers in Society Lecture Series

Product Life Cycle Source: Principles of Marketing, Prentice-Hall International Editions, Philip Kotler (8 th Edition, 1999) Engineers in Society Lecture Series

Fiber Optic Technologies Display Technologies Microelectronics Technologies Packaging Technologies Magnetic/Optical Storage Technologies Consumer Computer Telecom Medical Aerospace Transportation USA Software, Applications Battery Technologies PLC applies to every product & service Engineers in Society Lecture Series

Every part needs product development & innovation Apple ® Computer Nokia ® Cellular Phone Engineers in Society Lecture Series

Product life cycle - a key concept in engineering and product development R & D Introduction Growth Maturity Decline Engineers in Society Lecture Series

Paradigm shift in operating business Changing business models Dynamic market Globalization Maximization of cost-effectiveness Engineers in Society Lecture Series

User Driving Force 1.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 Engineers in Society Lecture Series

Technology Driving Force Engineers in Society Lecture Series 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 Engineers in Society Lecture Series

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 Engineers in Society Lecture Series

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. Engineers in Society Lecture Series

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 Engineers in Society Lecture Series