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 (Source: Wheelwright and Clark, 1992)

9-11 Product Life Cycle

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

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  Democratizing Innovation (E. von Hippel) A Conversation with Jack Welch Innovation at the Interface: Technological Fusion at MIT - Edward B. Roberts, Rodney A. Brooks