chapter 3 product develop met handout mba

8/2/2019 Chapter 3 Product Develop Met Handout MBA

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Chapter 3 HandoutProduct Development

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


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Product Development:

A process to generate concepts, designs,

and plans for services and goods that anorganization can provide to its customer.


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An Overview of ProductDevelopment 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-to-market: 3 - 5 years


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New Product Development

(NPD) Practices1. Stage-Gate (Phased-Review) Systems

Stage: Where the work is done

Gate: A set of criteria that the productmust pass before moving to the nextstage

Gate keeper: senior management team

Users: Royal Bank of Canada, Polaroid,Kodak etc.


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Stage0

Idea Validation

* Asssessment Team

* Economic and TechnicalFeasibility* Present Capabilities

* Quanti fy Critical Succes Factors

* Busine ss Plan

Gate 0Go/No-Go

Stage1

Conceptual Design

* Team Selection

* Customer Requi rements* Technology Selection* Final ize Criti cal Succes Factors

* Develop the Action Plan

* Financial Projection

Gate 1

Stage2Specification

and Design

Gate 2

Stage3Prototype

Test and

Validate

Gate 3

Stage4Volume

Manufacturing

FIGURE 1STAGES AND GATES

Source: Northern Telecom, Inc.

Flow of product


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Benefits of using stages and gates

in product development1. Dividing a big product development

project into smaller and more

manageable stages.2. Dividing responsibilities

3. Dividing resources (time, money,

equipment)


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= Initial Assessment

= Idea Validation

= Fuzzy Front-End Activities

Stage 0


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Expected Results of

Front-End Activities (Stage 0)

Clear product concept (aligned with

customer needs). Clear product definition.

Clear project plan (resource requirement,

etc.)


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Front-End Decision at Gate 0

Fund the product development project

OR

Discontinue/kill the product developmentproject


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Mortality Rate of New Products

N P d t D l t


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New Product Development(NPD) Practices (Cont.)

2. Concurrent engineering =simultaneous engineering

The practice of involving teams offunctional disciplines to simultaneouslyplan product and process activities

O h W ll T


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Over-the-Wall vs. TeamApproach 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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New Product Development (NPD)Practices (cont.)

3. Platform productsThe practice of planning multiple generations ofproducts based on a core product and process design

Original concept:Auto industry: platform = chassisComplete platform: Chassis, engine, transmission,axles.

Example: Ford F-150, Ford Expedition, Lincoln

Navigator, Lincoln Blackwood (discontinued), andLincoln 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 andcost

Reducing manufacturing cost (sharingsimilar components, tools, jigs, etc.)

Reducing risk (by using proven technology

and product)


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4. Supplier involvement

The practice of developing on-going

contact/interactions with suppliers toenhance their participation in productdevelopment efforts/decision making


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Benefits of supplier involvement

Borrowing suppliers technologies.

Examples: Auto manufacturers/Original EquipmentManufacturers/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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5. Customer involvement

The practice of developing on-goingcontacts / interactions with customersto 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 customerrequirements into engineering design

History:1. First user: Mitsubishi Kobe Shipyard

(Shipbuilding), Kobe, Japan.

2. Auto industry in Japan

3. Larry Sullivan from Ford Motor Co

4. Auto Industry in the US


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6. Information technology utilization

The practice of employing computerand communication technologies to planand coordinate product developmentactivities


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CAD (Computer Aided Design)

2 Dimension CAD and 3 Dimension CAD Examples:

GM: Electronic Data System (EDS) Unigraphics Chrysler: Frances Dassault Systemes CATIA

Ford: Structural Dynamics Research Corp. (SDRC) IDEAS


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Question:

How do you exchange information amongdifferent CAD systems?

How do you solve incompatibility issues amongdifferent CAD systems?

How do you exchange information between aCAD system, Computer Aided Manufacturing

(CAM), Computer Aided Engineering (CAE) andother computerized systems?

Answer: Next page

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ISO 10303: STEP - Standard for the

Exchange of Product Model Data The official title ofISO (International

Organization for Standardization) 10303 isIndustrial automation systems and integration -

Product data representation and exchange.

ISO 10303 is known as STEP or the Standardfor the Exchange of Product model data. It

is an International Standard for the computer-interpretable representation and exchange ofindustrial product data.
http://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/International_Organization_for_Standardization


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

The objective is to provide a mechanism that is capable ofdescribing product data throughout the life cycle of a product,independent from any particular system. The nature of thisdescription makes it suitable not only for neutral file exchange, butalso as a basis for implementing and sharing product databases andarchiving.

Typically STEP can be used to exchange data between CAD,Computer Aided Manufacturing (CAM), Computer Aided Engineering(CAE) and other systems.

STEP is addressing product data from various industries such asmechanical, automotive, aerospace, building construction, ship, oil &gas, process plants and others.

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http://en.wikipedia.org/wiki/CADhttp://en.wikipedia.org/wiki/CAD


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Question:

Is it possible to predict whether a newproduct 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 productdevelopment 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 successIndependent 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 willbe able to predict the successof your product 68 - 85% of

the time


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THANK

YOU

VERYMUCH

chapter 3 product develop met handout mba

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