1 Course Syllabus MSETM 5110 – New Product Development Instructor: Mr. C. Michael Carolina Office: ATRC 204 Telephone: Prerequisite: Graduate Standing or By Permission of Instructor Objective: By focusing on the New Product Introduction (NPI) process and the role of the design/product/process engineer—from both a traditional and an emerging perspective—the student will gain a better appreciation and understanding of NPI as a business imperative and a necessary core competency of a successful organization.

2 Course Syllabus MSETM 5110 – New Product Development Scope The elements of NPI--marketing, design, development, manufacturing, provisioning, and support NPI as an integral part of business strategy and business planning NPI as a vehicle to create competitive advantage for the organization and its customers The environment for sustaining NPI consistency and realizing improvement project after project The tools and metrics of new product development and introduction The order realization infrastructure needed to get new products to customers in a manner that meets or exceeds their expectations, and that delivers the desired financial and overall business objectives

3 Course Syllabus MSETM 5110 – New Product Development Reference Materials Steven C. Wheelwright and Kim B. Clark, “Revolutionizing Product Development: Quantum Leaps in Speed, Efficiency, and Quality.” The Free Press. ISBN Stefan Thomke and Eric von Hippel, “Customers as Innovators: A New Way to Create Value.” HBR, April Reprint Number R02004F. Robert J. Dolan, “Managing the New Product Development Process.” HBR, August Product Number

4 Course Syllabus MSETM 5110 – New Product Development Summer 2002 Schedule Week 1 (6/10): Introduction, Objectives, Class Profile, Technology Evolution, Current Engineering vs. New Product Engineering, and Review of Strategic and Business Planning Processes Week II (6/24): The NPI Process: Traditional vs. Contemporary Approach Assignment: HBR Case Study 1 (TBA) Week III (7/01): Benchmarking, Project Planning, Cross-functional Integration, Systems and Tools Week IV (7/15): Building Development Capability, and Creating an Environment for Innovation and Creativity Assignment: HBR Cast Study 2 (TBA) Week V (7/29): Review and Wrap-Up

5 MSETM 5110 – New Product Development The Four Disciplines of a Healthy Organization Build and Maintain a Cohesive Leadership Team Create Organizational Clarity Over-Communicate Organizational Strategy Reinforce Organizational Clarity Through Human Systems Source: Patrick Lencioni, “The Four Obsessions of an Extraordinary Executive.”

6 MSETM 5110 – New Product Development Context Don Tapscott, “Growing Up Digital: The Rise of the Net Generation” The N-Generation Mind N-Generation Learning The N-Generation at Play The N-Generation at Work The “Bitslingers” Stephen Hawking, “A Brief History of Time” “…at some point in the future, all scientific knowledge may be completed.” What then?

7 MSETM 5110 – New Product Development New Product Development vs. Current Engineering Moore’s Law -2X Every 18 Months -More Gates Per Chip -More Transistors Per Chip Retrofits/Conversions Agency Requirements -UL -NEBS -CE MARK -ETSI -EMC/EMI

8 Disruptive Technologies (Some Examples) - Analog to Digital- Wireline to Wireless - Cu to Fiber- Albums/Tapes to CDs - Voice to Data- VHS/VCRs to DVD Improved Productivity/Efficiency

9 MSETM 5110 – New Product Development Competing Through Innovation Changing Business Climate Globalization Increased Competition Technology Revolution/Evolution Fragmented, Demanding Markets Shorter Product Lifecycles Virtual Organizations E-Business Competitive Factors Speed Efficiency Quality/Reliability Supply Chain/Distribution Channels Translation: Creating Value for Customers

10 MSETM 5110 – New Product Development Time and Innovation Innovation is key to the long-term vitality of all enterprises Innovation means more than just new products; it also means new services and ways of doing business While the challenge to innovation is originating new ideas, time is at the core of an innovation’s success Timely execution is very demanding Examples of fast, time-based innovators (Honda, Ford, GM, Sun Microsystems, Cisco, Toys “R” Us, UPS) Roughly right vs. “final product” The “hollowing of America” - transfer of manufacturing - long new product development and introduction cycles The price for being a slow innovator The rewards for being a fast innovator Becoming a fast innovator Source: George Stalk & Thomas Hout, “Competing Against Time.” The Free Press. ISBN

11 MSETM 5110 – New Product Development Four Types of Product/Process Development Projects 1.Research or Advanced Development Projects 2.Breakthrough Development Projects 3.Platform or Generational Development Projects 4.Derivative Development Projects

12 MSETM 5110 – New Product Development Organization Vision/Mission/Strategy Business Model/Architecture Development Portfolio and Development Teams Functional Integration (Wheelwright and Clark, Exhibit 8-1, p. 191) - Functional Team Structure - Lightweight Team Structure - Heavyweight Team Structure - Autonomous Team Structure Tools and Methods

13 MSETM 5110 – New Product Development Becoming a Fast Innovator I.Time is the key performance variable to be managed to attain improved cost and quality. II.Time benchmarks are set by the performance of competitors and, if faster, by what is technologically possible. III.The support functions necessary to advance the development process are actively managed to be “invisible.” Their need is to be anticipated; they are to be invested in and kept up-to- date. They are never to be allowed to slow the development process. IV.Each program is to be managed and executed by a small, dedicated, decision-empowered, and experienced team. Team members have common goals and are measured and evaluated as part of a team.

14 MSETM 5110 – New Product Development (cont’d.) Becoming a Fast Innovator (cont’d.) V.The development programs are to have four steps, and company will organize itself around these steps: 1.Planning and preparation 2.Product definition 3.Design development 4.Manufacturing ramp-up 5.Product Improvement VI.The objective of planning and preparation is to avoid having to invent in the middle of the development process—make unknowns be knowns. VII.After definition, the product specification is frozen. The definition is committed to and not allowed to be changed. The improvement phase is to be used for costs and feature enhancements.

15 MSETM 5110 – New Product Development (cont’d.) Becoming a Fast Innovator (cont’d.) VIII.Functional expertise resides in the development program. Manufacturing and design resources are full-time participants in the definition team. Manufacturing resources are full-time participants in the design team. IX.Team members are collocated. X.Senior management reviews are few. The role of senior management is to ensure that the program teams have the appropriate resources, incentives and environment to execute their tasks quickly. XI.New programs are generated continuously, at regular market- driven intervals, and incorporate more incremental advances and fewer “great leaps forward.”

16 MSETM 5110 – New Product Development A Model for Product Development $’s R&D New Product Tech Transfer IP Publication

17 MSETM 5110 – New Product Development Typical Events (Delays Can Occur at Virtually Any Point in the Process) Idea FPR Approval Design specification Approval Preliminary transfer price Approval Vendor selection Approval of quote Engineering sample approval Initial production Production sample approval Customer trials Approval Production ramp Source: Stalk and Hout, “Competing Against Time.”

18 MSETM 5110 – New Product Development Customer Input and Product Innovation: How to Focus on Desired Outcomes vs. Solutions Step 1: Plan outcome-based customer interviews Step 2: Capture desired outcomes Step 3: Organize the outcomes Step 4: Rate outcomes for importance and satisfaction Step 5: Use the outcomes to jump-start innovation Anthony W. Ulwick, “Turn Customer Input into Innovation.” HBR, January, Reprint Number R0201H.

19 MSETM 5110 – New Product Development Full Stream Lifecycle Management (ISO 15288) Design Build Operate Dispose

20 MSETM 5110 – New Product Development The Role of the Engineer in Product Development (Traditional vs. Emerging) D B O D Create Sustained Value for Customers Do the Right Things to Meet Objectives for Top-line Revenue and Bottom-line Profitability