1. The information contained in this document is Volvo Aero Corporation Proprietary Information and it shall not – either in its original or in any modified form, in whole or in part – be reproduced, disclosed to a third party, or used for any purpose other than that for which it is supplied, without the written consent of Volvo Aero Corporation. Any infringement of these conditions will be liable to legal action. Technology development and concepts Ulf Högman

2. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 2 Structure of presentation  Discussion regarding technology and its development  Examples from VAC on technology development in practice  Experience from applying a normative stage-gate model to technology development Flygteknik 2010

3. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 3 The relation between innovation and technology ”Innovations are the outcome of the innovation process, which can be defined as the combined activities leading to new, marketable products and services and/or new production and delivery systems.” ”Technology refers to the theoretical and practical knowledge, skills, and artefacts that can be used to develop products and services as well as their production and delivery systems. Technology can be embodied in people, materials, cognitive and physical processes, plant, equipment, and tools.” (Burgelman, R.A., et.al., ”Strategic Management of Technology and Innovation”, 2004, Ed.4, pg.4) Flygteknik 2010

4. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 4 Technology development Flygteknik 2010 Applied Research Product / Process development Production & Aftermarket Pre-development Basic Research Technology Development (Adapted from Martin Karlsson, 2004) (From Wheelwright and Clark, 1992, and Aalto et al, 2003)

5. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 5 Examples of models and perspectives from Engineering Design Flygteknik 2010 Domains in Axiomatic design (Suh, 1990). Notice the zigzagging Function-means tree (from Svendsen and Hansen, 1993) Generic product development process (from Ulrich and Eppinger, 2000)

6. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 6 Total lead time [years] from idea to product Flygteknik 2010 Climatewell Talkback Design VAC3 Volvo Penta Ericsson2 ProLiff Cellartis Autoliv Volvo Trucks Ericsson1 Q-Sense Volvo Powertrain Mälardalens Högskola Bentech Maquet Nobel Biocare VAC1 Volvo Construction VAC2 Haldex VAC4 Ø 9.8 SKF Volvo 3P Craft Animations RQ1: What is the time duration of the R&D process for different innovations and companies in differentiating industries?

7. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 7 Flygteknik 2010 Lead-time [years] for the software cases Lead-time [years] for the hardware cases From start to TRL 3 From TRL4 to TRL 6 From TRL7 to TRL8 VAC 3 1.09.5Climatewell 0.33.3Volvo 3P 1.04.0Bentech 3.07.0Autoliv 8.3 7.5ProLiff 2.08.0Ericsson 2 2.3 15.0VAC 2 5.018.0Volvo Construction 10.520.5Nobel Biocare Ø 10 2.0 3.0 Lead time of different development stages RQ1: What is the time duration of the R&D process for different innovations and companies in differentiating industries?

8. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 8 Systems Engineering at NASA NASA Systems Engineering Handbook, SP-2007-610S, p.296 Flygteknik 2010 Require- ments Concepts Architectural studies System design TRL/AD² assessment Technology maturation TRL = Technology Readiness Level AD² = Advancement Degree of Difficulty assessment ”It is impossible to understand the magnitude and scope of a development program without having a clear understanding of the baseline technological maturity of all elements of the system.”

9. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 9 Case: Sandwich in rocket engine nozzles Flygteknik 2010 Behovet 1996: “Hitta en lösning för att reducera tillverknings- kostnaden för munstycken med 50%, utan att för den skull försämra produktegenskaperna.”

10. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 10 Case: Sandwich in rocket engine nozzles Analytical/experimental proof-of-concept Breadboard validation in laboratory environment Breadboard validation in relevant environment 199519961997199820022009 Ready for PD implementation = TRL 6 Engine1 (Vinci, Snecma, F) Engine2 (RL60, P&W, USA) Engine3 (Vulcain 2+, Snecma, USA) New technologies: -Material -Real time X-ray -Automated joint follower -NDT inspection of all welds -Bell forming -Regen A/T code development -… New technologies: -Material -Real time X-ray -Automated joint follower -NDT inspection of all welds -Bell forming -Regen A/T code development -… New technologies: -Material (Ni.base) -Thin wall milling -Deep channel milling -Larger scale -Weld simulation tools -Metal Deposition -… New technologies: -Material (Ni.base) -Thin wall milling -Deep channel milling -Larger scale -Weld simulation tools -Metal Deposition -… Concept studies New technologies: -Laser welding New technologies: -Laser welding Prototype demonstration in relevant environment Market need and technology selection

11. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 11 The technology tree Flygteknik 2010 Resulting technology trees Technology 1 Technology 1.1 Technology 1.1.1 Technology 1.1.2 Technology 1.1.2.1 Technology 2.1 Technology 2.2 Technology 2.2.1 Technology 2.2.2 Technology 3.1 Technology 3.1.1 Technology 3.1.2 Technology 3.2 Technology 3.2.1 Technology 3.2.2 Technology 3.2.3 Time Concepts Technology 1 Technology 1.1 Technology 1.1.1 Technology 1.1.2 Technology 2.1 Technology 2.2 Technology 1 Technology 1.1 Technology 1.1.1 Technology 1.1.2 Technology 2.1 Technology 2.2 Need Vision

12. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 12 The Spiral Model Flygteknik 2010 From ”A spiral model of software development and enhancement”, Barry W. Boehm, 1988

13. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 13 How to manage uncertainty? Flygteknik 2010 Delivery project Maintenance and technical service project Derivative project Platform project Breakthrough project Research and advanced development project Technology uncertainty increases Ways to cope with uncertainty: Technology and product roadmapping Product and technology platforms Managed transititions across R&D phases Implementing R&D as process Using early prototypes, testing Freezing the design late Enhancing flexibility Increasing design cycles Increasing communication (From Kähkönen et al., 2006, based on project categorization of Wheelwright and Clark, 1992)

14. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 14 Synchronizing technology and product development at VAC Flygteknik 2010 Dedicated stage-gate model for product development. Dedicated stage-gate model for technology development based on the NASA TRL scale. In operation the two models overlap. Rule of thumb to have reached TRL 6 prior to entry into ”Preliminary Design” in product development.

15. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 15 Flygteknik 2010 TRL review at Gate X In principle the same questions are asked at all gates but… … quality and detail in the answer is expected to increase for every step.

16. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 16 Follow individual technologies based on the TRL scale Flygteknik 2010 TechnologyTRL 1TRL 2TRL 3TRL 4TRL 5TRL 6 Technology 1 Sub-technology 1.1Ref.dok. Sub-technology 1.2Ref.dok. Sub-technology 1.3Ref.dok Sub-technology 1.3Ref.dok Technology 2 Sub-technology 1.1Ref.dok Sub-technology 1.2Ref.dok Sub-technology 1.3Ref.dok The list of needed new technologies change over time with regard to What technologies to pursue TRL-status per technology The model is used recursively to build the technology tree.

17. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 17 Some experience from use so far Flygteknik 2010 Day month year In general, the projects have been quite satisfied with the model, even though improvements can be made. Advantages Achieved results and challenges explicitly expressed and adjustments to meet product/process plans can be made pro-actively. Clear structure makes it possible to better link to overall strategies and adapt to changing circumstances. Disadvantages Risk of burdening projects with too much administration. A reasonable balance has to be found.

18. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 18 Flygteknik 2010 Thank You for your attention and welcome to

19. Volvo Aero Corporation Proprietary Information. This information is subject to restrictions on first page. Advanced Engineering, Ulf Högman 10110 Utg. 12 Slide 19 Technology Readiness Levels Subject Day month year From ”Technology Readiness Levels”, John C. Mankins, 1995, Advanced Concepts Office, Office of Space Access and Technology, NASA, a white paper