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Unformatted text preview: Chapter 3 Handout
Product Development Ahmad Syamil, Ph.D., CFPIM, CIRM, CSCP 1 Product Development:
A process to generate concepts, designs, and plans for services and goods that an organization can provide to its customer. 2 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) Timetomarket: 3 5 years
3 New Product Development (NPD) Practices
1. StageGate (PhasedReview) Systems
Stage: 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. 4 FIGURE 1
STAGES AND GATES Gate 0
Go/No-Go Gate 1 Stage 0
Idea Validation * Team Selection
* Customer Requirements
* Technology Selection
* Finalize Crit ical Succes Factors
* Develop the Action Plan
* Financial Projection Gate 3 Stage 1
Conceptual Design * Asssessment Team
* Economic and Technical
* Present Capabilit ies
* Quantify Critical Succes Factors
* Business Plan Gate 2 Stage 2
and Design Stage 3
Validate Stage 4
Manufacturing Flow of product
Source: Northern Telecom, Inc.
5 Benefits of using stages and gates in product development
3. Dividing a big product development project into smaller and more manageable stages.
Dividing resources (time, money, equipment) 6 Stage 0
= Initial Assessment
= Idea Validation
= Fuzzy FrontEnd Activities 7 Expected Results of FrontEnd Activities (Stage 0) Clear product concept (aligned with customer needs).
Clear product definition.
Clear project plan (resource requirement, etc.) 8 FrontEnd Decision at Gate 0 Fund the product development project OR Discontinue/kill the product development project 9 Mortality Rate of New Products 10
10 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 11
11 OvertheWall vs. Team Approach to Product Development 12
12 Effect of Concurrent Work Scheduling on Completion Time 13
13 Main Benefit of Concurrent Engineering Reducing product development time 14
14 New Product Development (NPD) Practices (cont.) 3. 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 F150, Ford Expedition, Lincoln Navigator, Lincoln Blackwood (discontinued), and Lincoln Mark LT use the same platform.
New Users: IBM, Toshiba, Sony (e.g. walkman) , etc.
15 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) 16
16 New Product Development (NPD) Practices (cont.) 4. Supplier involvement The practice of developing ongoing contact/interactions with suppliers to enhance their participation in product development efforts/decision making 17
17 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
18 New Product Development (NPD) Practices (cont.) 5. Customer involvement The practice of developing ongoing contacts / interactions with customers to better understand their needs. 19
19 Main benefit of customer involvement Increasing the probability of customer acceptance and product success 20
20 Quality Function Deployment (QFD) Benefit: Translating customer requirements into engineering design
4. First user: Mitsubishi Kobe Shipyard (Shipbuilding), Kobe, Japan.
Auto industry in Japan
Larry Sullivan from Ford Motor Co
Auto Industry in the US 21
21 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 22
22 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 23
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
24 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 .
ISO 10303 is known as STEP or the Standard for the Exchange of Product model data. It is an International Standard for the computer
interpretable representation and exchange of industrial product data. 25
25 ISO 10303: STEP Standard for the ISO 10303: STEP 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, 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. 26 Question:
Is it possible to predict whether a new product will be a successful product in the market? 27
27 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) 28
28 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 29
29 If you use NewProd, you will be able to predict the success of your product 68 85% of the time 30
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This note was uploaded on 01/22/2012 for the course 2341 13314 taught by Professor Camus during the Spring '11 term at Central Luzon State University.
- Spring '11