Chapter 3 Handout Product Development

Ahmad Syamil, Ph.D., CFPIM, CIRM, CSCP

Product Development: A process to generate concepts, designs, and plans for services and goods that an organization can provide to its customer.

An Overview of Product Development in the Auto Industry



Number of parts in a car: 8,000 20,000 Cost:

Ford Escort: $5 billion (1980s) Dodge Neon: $1.3 billion (1990s)

Time-toTime-to-market: 3 - 5 years
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New Product Development (NPD) Practices

1. Stage-Gate (Phased-Review) Systems Stage(PhasedStage: Where the work is done  Gate: A set of criteria that the product must pass before moving to the next stage Gate keeper: senior management team Users: Royal Bank of Canada, Polaroid, Kodak, etc.


FIGURE 1 STAGES AND GATES

Gate 0 Go/No-Go Stage 0 Idea Validation * Asssessment Team * Economic and Technical Feasibility * Present Capabilities * Quantify Critical Succes Factors * Business Plan Stage 1 Conceptual Design

Gate 1

Gate 2

Gate 3

* Team Selection * Customer Requirements * Technology Selection * Finalize Critical Succes Factors * Develop the Action Plan * Financial Projection

Stage 2 Specification and Design

Stage 3 Prototype Test and Validate

Stage 4 Volume Manufacturing

Flow of product
Source: Northern Telecom, Inc.
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Benefits of using stages and gates in product development

1.

2. 3.

Dividing a big product development project into smaller and more manageable stages. Dividing responsibilities Dividing resources (time, money, equipment)

Stage 0
= Initial Assessment = Idea Validation = Fuzzy Front-End Activities Front-

Expected Results of FrontFront-End Activities (Stage 0)



 

Clear product concept (aligned with customer needs). Clear product definition. Clear project plan (resource requirement, etc.)

FrontFront-End Decision at Gate 0



Fund the product development project OR

Discontinue/kill the product development project

Mortality Rate of New Products

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New Product Development (NPD) Practices (Cont.)

2. Concurrent engineering = simultaneous engineering The practice of involving teams of functional disciplines to simultaneously plan product and process activities

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Over-theOver-the-Wall vs. Team Approach to Product Development

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Effect of Concurrent Work Scheduling on Completion Time

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Main Benefit of Concurrent Engineering



Reducing product development time

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3.

New Product Development (NPD) Practices (cont.)

Platform products The practice of planning multiple generations of products based on a core product and process design

Original concept: Auto industry: platform = chassis Complete platform: Chassis, engine, transmission, axles. Example: Ford F-150, Ford Expedition, Lincoln FNavigator, Lincoln Blackwood (discontinued), and Lincoln Mark LT use the same platform. New Users: IBM, Toshiba, Sony (e.g. walkman) , etc.
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Benefits of using platform products



Reducing product development time and cost Reducing manufacturing cost (sharing similar components, tools, jigs, etc.) Reducing risk (by using proven technology and product)

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New Product Development (NPD) Practices (cont.)

4. Supplier involvement The practice of developing on-going oncontact/interactions with suppliers to enhance their participation in product development efforts/decision making

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Benefits of supplier involvement



  

Borrowing suppliers technologies. Examples: Auto manufacturers/Original Equipment Manufacturers/OEMs and their main suppliers  Toyota and Denso (formerly known as Nippon Denso)  BMW and Robert Bosch  Chrysler and Dana Corporation  GM and Delphi Automotive  Ford and Visteon Shifting product development workload to suppliers Reducing product development time and cost Developing good supplier relationship
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New Product Development (NPD) Practices (cont.)

5. Customer involvement The practice of developing on-going oncontacts / interactions with customers to better understand their needs.

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Main benefit of customer involvement



Increasing the probability of customer acceptance and product success

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Quality Function Deployment (QFD)



Benefit: Translating customer requirements into engineering design History:

1.

2. 3. 4.

First user: Mitsubishi Kobe Shipyard (Shipbuilding), Kobe, Japan. Auto industry in Japan Larry Sullivan from Ford Motor Co Auto Industry in the US
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New Product Development (NPD) Practices (cont.)

6. Information technology utilization The practice of employing computer and communication technologies to plan and coordinate product development activities

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CAD (Computer Aided Design)

 

2 Dimension CAD and 3 Dimension CAD Examples:

  

GM: Electronic Data System (EDS) Unigraphics Chrysler: France s Dassault Systemes CATIA Ford: Structural Dynamics Research Corp. (SDRC) IDEAS

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Question:


How do you exchange information among different CAD systems? How do you solve incompatibility issues among different CAD systems? How do you exchange information between a CAD system, Computer Aided Manufacturing (CAM), Computer Aided Engineering (CAE) and other computerized systems? Answer: Next page
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ISO 10303: STEP - Standard for the Exchange of Product Model Data


The official title of ISO (International Organization for Standardization) 10303 is Industrial automation systems and integration Product data representation and exchange. exchange. ISO 10303 is known as STEP or the Standard for the Exchange of Product model data. It data. is an International Standard for the computercomputerinterpretable representation and exchange of industrial product data.

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ISO 10303: STEP - Standard for the Exchange of Product Model Data (cont).


The objective is to provide a mechanism that is capable of describing product data throughout the life cycle of a product, independent from any particular system. The nature of this description makes it suitable not only for neutral file exchange, but also as a basis for implementing and sharing product databases and archiving. Typically STEP can be used to exchange data between CAD, CAD, Computer Aided Manufacturing (CAM), Computer Aided Engineering (CAE) and other systems. STEP is addressing product data from various industries such as mechanical, automotive, aerospace, building construction, ship, oil & gas, process plants and others.

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Question: Is it possible to predict whether a new product will be a successful product in the market?

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NewProd System: Tool for Predicting New Product Success

 

 

Inventor: Robert G. Cooper, Ph.D. Using historical data from hundreds of product development successes and failures Users: Procter and Gamble, Exxon, etc. Using a multiple regression analysis
Y = a + b1 (X1) + b2 (X2) + + b9 (X9) Dependent variable: Y = degree of product success Independent variables: X1, X2, , X9 (next page)

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NewProd Questionnaire (Independent or X variables)

        

1. Product superiority/quality 2. Economic advantage to the user 3. Overall company/project fit 4. Technological compatibility 5. Familiarity to the company 6. Market growth & need 7. Competitive situation 8. Defined opportunity 9. Project definition
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If you use NewProd, you will be able to predict the success of your product 68 - 85% of the time

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THANK YOU VERY MUCH

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