Lecture 2

Product Development
Product Development

Product development needs to be considered at two

levels:

Development of existing products

New product development

The first largely involves design improvement,

while the second involves new design

!oth should be in response to customer

re"uirements
Product Development #cont$

New product development occurs before %&ob '(

in the life cycle of a product
Profit
)nd of
Product
Life *ycle
+ob '
!rea, )ven
Sales
Time
Product 2 Product 1
Product 3
g
r
o
w
t
h
maturity
d
e
c
l
i
n
e
Product Development #cont$

- manufacturing company must continually

introduce new products to remain profitable
.hy /apid0

Products are becoming more complex

1ntuitively, this would imply a longer product

development time

/ushing the process could lead to mista,es

.hy not allow the product development process to

continue at its current pace0
.hy /apid #cont$0

Product life cycles are shortening

Time
Year
Product Life
1970 1980 1990 2000
.hy /apid0 #cont$

2ore products are needed more often, eg

in '345s car models could have a ten year life

in '335s some manufacturers were releasing

new models every two years

Less time to ma,e profits

Late entry into mar,et will hit profits, eg 6

months late could lose 778 of total profit

/PD reduces time9to9mar,et

Profits

)arly 1ntroduction 1ncreases 2ar,et :hare and

;ence )xtends Product Life
Early Entry
Late Entry
Time
Sales
Volume
Longer
Sales
Life
Larger Market
Share
Source: Smith and einertsen
Profits

1nitially Pricing Premium

Later Lower 2anufacturing *osts

!om"etition
Enters
Market
Product
#ntroduced
Market Price
!ost
$d%antage
Pricing
Premium
Time

;ow /apid is /apid0

Product development times vary greatly between

manufacturing sectors, eg

-ircraft 9 '5 years

-utomobile 9 7 years

*onsumer goods 9 less than one year

Need to benchmar, against competitors

-im for continuous reduction, eg cut time9to9mar,et

by <58 every five years
;ow to :horten Time9to92ar,et0

Product development process typically covers

several stages from concept design through to
mar,et launch

)1T;)/ shorten individual stage 9 minimal effect

and only if on critical path

=/ increase overlap between stages 9 much more

potential for saving time

:econd option is *oncurrent )ngineering

*oncurrent )ngineering #*)$

*oncurrent )ngineering #*)$ is a powerful

strategy for reducing Time9to92ar,et

*) must be adapted to specific company needs

*ertain critical elements remain constant, eg

improved communication
*oncurrent )ngineering #contd$

:imultaneous execution of product development

tas,s

Typically includes design, design analysis,

testing, process design, plant layout, production
planning and mar,eting

/eplaces %se"uential( engineering

*oncurrent )ngineering
vs :e"uential )ngineering
Design
Analysis
Testing
Process Design
Plant Layout
Prod. Planning
ar!eting
Product Development using :e"uential )ngineering
"nformation
#$anges
%e&uired
*oncurrent )ngineering
vs :e"uential )ngineering
Design
-nalysis
Testing
Process Design
Plant Layout
Prod Planning
2ar,eting
Product Development using *oncurrent )ngineering
:hared
Two9way
1nformation
2ain >eatures of
/apid Product Development

Personnel from different functions wor, together

within product development teams

Decisions are made much sooner

)arly communication of information is vital

2any tools #often computer9based$ are available

to support this process
;ow does /PD reduce
Time9to92ar,et0

Design ta,es into account all subse"uent

activities, eg manufacture, mar,eting, etc

2ore people are involved in the early stages of

product development

2ore design iterations and changes are made

during these early stages

;ence, more time is re"uired for early stages of

product development
;ow does /PD reduce
Time9to92ar,et #contd$0

>ewer design changes in later stages

Total product development time is reduced

'um(er
of
#$anges
Time
)o( 1
*it$ #+
*it$out #+
)o( 1
.hat /PD tools are available
to help reducing Time9to92ar,et0

Pro&ect teams

?uality >unction Deployment

)ngineering data management

*omputer aided design

Design for manufacture and assembly

/PD Tools #contd$

/apid prototyping

@irtual prototyping

/apid tooling

/apid manufacturing

;igh :peed 2achining

-gile >ixturing
Pro&ect Teams

Personnel from several disciplines are co9located

#physically or virtually$

1nputs to designs reflect entire range of

re"uirements

Decisions can be made more "uic,ly

Designs satisfy all constraints and thus re"uire

fewer late changes
Pro&ect Team 2embers
?uality >unction Deployment

*ustomer re"uirements are incorporated directly

into product development process

/esponses to customer ob&ectives are prioritised

%@oice of customer( is disseminated throughout

all stages of process

2uch wasted effort is avoided as all activities are

correctly focused
)ngineering Data 2anagement

)nterprise9wide database system

:tores all product9related information

@ersion control and access control

*an be used for wor,9flow management

Promotes enterprise9wide communication

:upports earlier and shared decision ma,ing

)D2 Database :tructure
-ssembly
Data
>)2
>iles
:ub9assembly
Part Data
7D *-D
2odels
Data
N*
>iles
>ile reference list
*omputer -ided Design

Aeometric shape is fully defined

-dditional information can be added, eg tolerances,

material, surface finish

*hanges can be made more "uic,ly

Data is available to support %downstream activities(,

eg >)2, N*, /P

*an act as a communication tool across the whole

enterprise
-ssembly 2odel using *-D
Design for 2anufacture
and -ssembly

Designs are created ta,ing into account the

manufacturing and assembly processes to be
used

-voids late changes in the design

:hortens time of preparation for manufacture

*an also shorten manufacturing lead9time

)xample of Design for
-ssembly
good design
inferior design
)xample of Design for
)xtrusion
inferior design good design
.hat experiences have
companies had0

2any companies have implemented rapid

product development

Typical reduction in Time9to92ar,et has been

from 758 to 458

Two examples will be used to illustrate this

:unstrand )lectric Power :ystems

72
/PD at :unstrand

Time9to92ar,et reductions for various components

*omponents Prior to *) Bsing *)
:heet metal parts 2 wee,s '97 days
Printed wiring
boards
C96 wee,s 2 wee,s
1nvestment
castings
'29'6 wee,s < wee,s
2achined plastic
parts
2 wee,s D ' wee,


/PD at :unstrand #contd$

=ther benefits were also realised:

Design cycle reduced from 4 to C months

Design costs reduced by C<8

)ngineering changes reduced by <<8

Production cycle reduced from 7< to 'E hours

2ean failure time in field increased from 'E55 to

E555 hours

1mproved reliability was attributed to more design

iterations giving optimised design
/PD at 72

72 set goal of cutting Time9to92ar,et by <58

within < years

They achieved this after only 7 years

Preliminary design time was increased by 7558

This paid off with a greater time saving later in

the product development process

;ow0
P& at 3M 'cont()

Ta,ing previous Time9to9mar,et as '55 units, this

was reduced to <5 units:
-ctivity Prior to *) F /P Bsing *) F /P
Preliminary
design
< 25
Detail design 2< '5
!uildG test
process
<5 '<
Documentation 25 <
Total time '55 <5

*onclusions

/PD is an effective strategy for reducing Time9to9

2ar,et

2ore effort earlier will produce greater savings

later

There are many /PD tools available

:election of tools depends upon company

circumstances