Product development Introduction. Olaf Diegel

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1 Product development Introduction Olaf Diegel

2 From A to Z

3 Life before academia

4 Contents Today Project management crash course Product development process part 1 Next Week Product development process part 2 A closer look at concept development

5 Project Management in 5 minutes My house has 3 floors All of them need to be vacuumed and the 2 nd floor mopped The 2 nd floor must be vacuumed before it can be mopped. I help my wife with the housework by mopping the 2 nd floor What order should my wife vacuum in?

6 What is Project Management Project Management includes the following functions and areas of management: 1. Integration Management 2. Scope Management 3. Time Management 4. Cost Management 5. Quality Management 6. Human Resource Management 7. Communication Management 8. Risk Management 9. Procurement Management Project Planning & control Project context Project life cycle

7 Which car is the best? Every project MUST be undertaken in the right context:

8 Design for X Every product must be designed for a specific function, characteristic, or market. Depending on the intended purpose, Every product has to be designed to optimize certain characteristics. 8

9 Everything you need to know about management The Deming wheel / Shewhart cycle Almost every other management model in the world is based on this

10 And now, onto product development! So, what is a product?

11 What is a product A product is any set of benefits offered for exchange. It can be tangible (physical product) or intangible (service). A successful product is typically characterised by: Innovation in the features it offers or how it reaches an outcome Innovation in the processes through which it was created Innovation in how it is manufactured and how the engineering challenges are resolved. Has aesthetic qualities that are pleasing to the intended customer (it is beautiful!)

12 Some physical products

13 Types of Products Market Established New Derivative Me too with a twist First of a kind Next generation Familiar New Product Concept So, what is product development? 13

14 Evolution of PD & mechatronics

15 What is product development? Product development is the set of activities beginning with the perception of a market opportunity and ending in the production, sale, and delivery of the product. (U&E2002) Product development is the complete and systematic process of bringing a new product to market.

16 What is product development? It s about managing all the activities involved in PD to achieve the best possible outcome in the most efficient way It s about understanding how all the disciplines in any project work together and affect each other To do this effectively one needs a good knowledge of all the disciplines. The best product developer is simultaneously a manager and a doer.

17 Product Development Engineer Manager Understands process Understands how one discipline affects another Is good at managing team dynamics Understands the business side of things Sees the whole picture Understands design Doer Has technical knowledge Understands how things are made Specializes in solving technical problems Communicates visually Can transform ideas into reality Does design

18 Product Development knowledge Technical Knowledge Manufacturable, reliable, quantifiable, simple, defectfree, future-proof Innovation Processes, deadlines, resources, budgets, profits Process Knowledge User Knowledge Useful, usable and desirable

19 The Project Life Cycle Concept and Initiation Planning and Development Implementation Commis and Hando Potential for AddingValue Cost toch 19

20 The golden rule The further you get into the project, the less effect any changes you make have and the more they cost So get it right from the start!!! 20

21 Who Designs and Develops Products? Product design is an interdisciplinary activity requiring contributions from nearly all the functions of a firm A function (in organizational terms) is an area of responsibility usually involving specialized education, training, or experience Three functions are almost always central to a product development project: - Market Research & Marketing - Design - Manufacturing

22 The Challenge: Innovation vs Engineering vs Design Don t be stupid! You cant do that What do you mean you can t make it like this? Engineer Designer/Artist Product Development Engineer

23 How the client described it How it was planned How it was designed How it was constructed How it was documented How it was costed How it was supported What the client really needed

24 Characteristics of Successful Product quality How good is the product? Product cost What is the capital equipment cost and unit production cost? Development cost How much did the firm have to spend to develop the product? Development capability Are the team and firm better able to develop other products? Development time Product Development How quickly did the team complete the effort?

25 The Product Development Life-Cycle High-tech products that come to market six months late but on budget will earn 33% less profit over 5 years. In contrast, coming out on time and 50% over budget cuts profit by only 4% Getting to market a month earlier improves profits an average 3.1%. Beating the competition by six months improves profits by nearly 12%

26 Challenges of Product Development Trade-offs Lightweight vs costly Dynamics Technologies, customer tastes, competition change environment Details Screws vs snap fits on enclosure of computer Time pressure Decisions made quickly and without complete information Economics Large investment will it pay off? Organizational realities Team composition, empowerment, functional allegiance, resources

27 The Development Process According to Ulrich and Eppinger

28 Product Development Process Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Concept System-level Detail Design Testing and Production Planning Development Design Refinement Ramp-Up Generate mission statement (target market, business goals, key assumptions and constraints) Ulrich and Eppinger 2004 Example Mission: design a better hand-held roofing nailer Assumptions: The nailer will use nails (as opposed to adhesives, screws, etc.) The nailer will be compatible with nail magazines on existing tools The nailer will nail through roofing singles into wood The nailer will be handheld.

29 Product Development Process Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Concept System-level Detail Design Testing and Production Planning Development Design Refinement Ramp-Up Identify needs of target market; Select several product concepts for further development and testing Ulrich and Eppinger 2004 Example Needs of target market: The nailer inserts nails in rapid succession. The nailer is lightweight. The nailer has no noticeable nailing delay after starting tool. Product concepts: Rotary motor with spring and single impact Rotary motor with spring and multiple impacts Linear motor with a moving mass and single impact

30 Concept Development & Prototyping

31 Types of Prototyping Virtual Sketching CAD Physical Handmade Technology

32 Golden Rule #1 Who is the prototype for? You need entirely different types of prototypes depending who they are for and what their purpose is

33 Sketching Hand drawn representation of what you are trying to achieve.

34 Levels of Sketching From crude napkin sketches

35 Levels of Sketching To more detailed sketches

36 Sketching To rendered felt-pen drawings

37 CAD Using computer software to generate representations of your ideas (usually in 3D)

38 Physical Prototyping Takes virtual prototyping to the next level as you can use it not only see how the real product might look, but also to try out mechanisms, etc.

39 Cardboard

40 Wood

41 Rapid Prototyping Use technologies that print the part out layerupon-layer

42 Golden Rule #2 Prototyping is almost always a progression from one medium to another There is little point doing a high-end prototype until you are sure your ideas will work

43 The progression

44 The progression

45 Early prototype of mouse for Lisa computer, based on the Alto Xerox PARC mouse, designed for apple by Hovey Kelley (later IDEO) in 1983

46 The birth of the mouse Dean Hovey, the mouse project s informal head, says he hacked together the first conceptual prototype in a weekend using the ball from a bottle of Ban Roll-On deodorant and a butter dish purchased at the Palo Alto Walgreens ( the mouse parts store, he calls it). That wasn t the only unusual source of components: one morning, his wife discovered that their refrigerator no longer worked because portions of the motor had gone into a mouse prototype. Not to be outdone, David Kelley took the stick shift off his BMW when he was experimenting with mouse shapes. We all did the same thing, explains Sachs, who with Rickson Sun focused on the electrical and optical components. We sacrificed circuitry, we sacrificed anything. The idea of [formally] designing something and having everything fabricated to your specifications was simply too long, slow and expensive. Better to take apart something else, or find something similar, and glue it together or cut it in half.

47

48 Product Development Process Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Concept System-level Detail Design Testing and Production Planning Development Design Refinement Ramp-Up Define product architecture Decompose product into subsystems and components Define final assembly scheme Ulrich and Eppinger 2004

49 Product Development Process Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Concept System-level Detail Design Testing and Production Planning Development Design Refinement Ramp-Up Complete specification of geometry, materials and tolerances of all parts List of standard parts to be purchased Detailed drawings Process plans for fabrication and assembly Ulrich and Eppinger 2004

50 Product Development Process Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Concept System-level Detail Design Testing and Production Planning Development Design Refinement Ramp-Up Ulrich and Eppinger 2004 Building of alpha- and beta- prototypes alpha: same material and geometry - does it work? - does it satisfy customer needs? beta: parts supplied by production process - tested internally and by customers - tested for performance and reliability

51 Product Development Process Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Concept System-level Detail Design Testing and Production Planning Development Design Refinement Ramp-Up Ulrich and Eppinger 2004 Small volume production to train workforce and work out any remaining problems. Finally LAUNCH!!

52 Adapting the Generic PDP The process shown so far is generic, and particular processes will differ in accordance with a firm s unique context It is vital that you see the process only as a guide and that you adapt it to your particular context

53 Cost and Duration of NPD Projects

54 Cost and Duration of NPD Projects Stanley Tools Jobmaster Screwdriver Rollerblade In- Line Skate HP DeskJet Printer VW New Beetle Automobile Boeing 777 Airplane Annual Production volume Sales lifetime Sales price Number of unique parts Development time Internal development team (peak size) External development team (peak size) Development cost

55 Cost and Duration of NPD Projects Stanley Tools Jobmaster Screwdriver Rollerblade In- Line Skate HP DeskJet Printer VW New Beetle Automobile Boeing 777 Airplane Annual Production volume 100,000/year 100,000/year 4M/year 100,000/year 50/year Sales lifetime 40 years 3 years 2 years 6 years 30 years Sales price $3 $200 $300 $17000 $130M Number of unique parts , ,000 Development time 1 year 2 years 1.5 years 3.5 years 4.5 years Internal development team (peak size) External development team (peak size) 3 people 5 people 100 people 800 people 6800 people 3 people 10 people 75 people 800 people 10,000 people Development cost $150,000 $750,000 $50M $400M $3B

56 Overall Product Manufacturing Cost Design 5% Labor 15% Overhead 30% Materials 50% Based on Ford Motor Company Data 56

57 Effect of Design and Mfg Quality on Mfg Cost Efficient Mfg Avg Mfg Poor Mfg Good Design $.50 $.75 $.94 Avg Design $.75 $1.00 $1.25 Poor Design $.94 $1.25 $1.50 From a study of 18 different automatic coffeemakers, 1993, Sloan School of Management 57

58 The cost of an extra bolt size Storage space increases for two sizes Office/ Ordering time Entering invoices Placing orders Stock take The price for double the quantity of one bolt would be much reduced Automation becomes more difficult Manual labour becomes more complex Twice as likely to run out (specially with JIT) 58

59 Why is manufacturing so important? You, as an engineer, must have a working knowledge of manufacturing so you can design your products for the most suitable technology. If you design for the right manufacturing process from the start it saves you the time of having to redesign it later. The best method depends on many factors including part cost (both part cost and setup costs), quality/function, availability of process, and time to produce. 59

60 Setup Costs Choice of manufacturing method Pressure Diecasting Injection Molding Blow molding Rotational molding Forging Extrusion Sand/Investment Casting Milling & Turning Laser or waterjet cutting Additive manufacturing Sheet metal CNC turret punching 0 Hundreds Thousands Tens of thousands Hundreds of thousands Manufacturing Quantity 60

61 Part Cost Choice of manufacturing method Additive manufacturing Sand/Investment Casting Note: The part cost for most manufacturing technologies decreases as the quantity increases! Milling & Turning Forging Extrusion Pressure Diecasting Laser or waterjet cutting Sheet metal CNC turret punching Rotational molding Blow molding Injection Molding 0 Hundreds Thousands Tens of thousands Hundreds of thousands Manufacturing Quantity 61

62 Final Remarks It is extremely important to follow a structured process to develop a new product or a new idea A structured process and creativity are by no means mutually exclusive We have presented a generic product development process which must be fine tuned for the particular types of products that your team (or company) develops There are opportunities for creative, innovative solutions at ALL phases of the product development process! A poor concept, flawlessly executed, will never be competitive!

63 Next Week: A deeper look at Concept Development arguably the most critical stage of the process!