1 course syllabus msetm 5110 – new product development instructor: mr. c. michael carolina office:...
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Course SyllabusMSETM 5110 – New Product Development
Instructor: Mr. C. Michael Carolina
Office: ATRC 204
Telephone: 405-744-2446
Email: [email protected]
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.
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Course SyllabusMSETM 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
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Course SyllabusMSETM 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 - 0-02-905515-6.
Stefan Thomke and Eric von Hippel, “Customers as Innovators: A New Way to Create Value.” HBR, April 2002. Reprint Number R02004F.
Robert J. Dolan, “Managing the New Product Development Process.” HBR, August 1991. Product Number 592011.
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Course SyllabusMSETM 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 CreativityAssignment: HBR Cast Study 2 (TBA)
Week V (7/29): Review and Wrap-Up
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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.”
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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?
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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
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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
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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
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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 0029152917
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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
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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
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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.
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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.
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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.”
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MSETM 5110 – New Product Development
A Model for Product Development
$’s R&D New Product
Tech Transfer IP Publication
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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.”
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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, 2002. Reprint Number R0201H.
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MSETM 5110 – New Product Development
Full Stream Lifecycle Management (ISO 15288)
• Design
• Build
• Operate
• Dispose
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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