PROTOTYPING, MANUFACUTURING AND ENGINEERING ISSUES FOR INVENTORS

1. PROTOTYPING, MANUFACUTURING AND ENGINEERING ISSUES FOR INVENTORS September 27, 2010 ND Inventors Congress and Marketplace 2010 Reuben Tschritter Institute for Business and Industry Development North Dakota State University

2. QUESTIONS INVENTORS NEED TO ANSWER Is your invention marketable? Does it have mass appeal? Does your product solve a problem? Can your invention be made for the right price? Is your invention easy to understand and are the functions easy to operate?

3. Protecting Your Invention Buy a notebook, preferably bound, and with numbered pages Date each page Describe what your idea is and what it does Include drawings Record all meetings and discussions Have a confidential disclosure agreement

4. Is your idea new or how can I know if it is? Go shopping Check catalogs Search Internet Sales of like products Technical and marketing information Patent search Contact experts Patent attorney Manufacturing Marketing

5. What is the state of the art? Decide how your idea compares to current state of the art

6. Can it be produced? The key question is can it be designed for manufacturing Difficulty to manufacture and assemble will increase production costs

7. Working Model - Prototype What is a prototype? Usually a handmade model of the invention Do I need a prototype? Usually, yes! A prototype, especially in the early phases of evolution, is used for the inventors learning and to evaluate the invention. Often requires several iterations before it represents the final product to be manufactured Drawings or sketches

8. Working Model � Prototype (cont�d) Key decision: Who builds the prototype? What will it cost? Seek professional help if you don�t know NDSU Institute for Business and Industry Development University of North Dakota Center for Innovation Small Business Development Center (SBDC) SCORE

9. Prototyping Principles Allocate money to build your prototype Determine the materials and process to manufacture your invention If you are not well-informed about materials and process, consult a professional

10. Prototyping Principles (cont�d) Make prototypes from short-run processes that produce results nearly identical to high-volume processes When confident that prototype is final one, consider producing a pilot run of products Forecast quantities you need and when you need them Lead time for getting first sample parts Solicit manufacturing price quotations in a professional manner

11. Decision: Manufacture VS LicensingManufacturing Realities Are you prepared for the realities of setting up to manufacture your product? Manufacturing doesn�t need to mean setting up your own factory Questions that need to be asked: What is this leading me into? What kind of money am I talking about going into the manufacturing business? Do you have the time for it?

12. Manufacturing Realities (cont�d) How will it affect your lifestyle? Does it mean giving up other profitable employment? Do you realize how long this takes? BASIC RULE: Relatively simple products take about one year to get into production after the design is finalized Can your company operate as a little endeavor in a garage or as a full scale factory layout?

13. Manufacturing Realities (cont�d) What equipment and tooling is required? Do you have the management and technical skills? Are employment of skilled specialists available? Liability / OSHA / Safety / Quality / Manufacturing

14. Manufacturing Cash Model Estimate the cost of manufacturing � Example Manufacturer Labor, tooling, materials, inbound freight $4.00 Other business expenses (marketing, engineering, salaries, rent, insurance, royalties) 3.50TOTAL MANUFACTURING COST 7.50 Wholesale Price 10.00 MANUFACTURER�S NET PROFIT $2.50 Retailer�s Price Product cost $10.00 Business expenses (salaries, marketing, rent, etc.) 5.00TOTAL COST 15.00RETAILER�S PRICE 20.00RETAILER�S NET PROFIT $5.00 

15. Contract Manufacturing Considerations Get quotations from at least three sources Select best manufacturing source based on reputation, manufacturing capabilities, cost, quality and delivery Use only one manufacturing company to produce your product Get signed purchasing agreement Confidentiality Agreement (if appropriate) Packaging and shipping Inventory

16. Engineering Considerations Are proper materials being used? Is design manufacturable at lowest cost? Engineering drawings

17. Engineering Considerations (cont�d) Are there special design considerations DOT test requirements Special testing by independent labs (UL, ASTM, etc.) Environmental Safety hazards / health factors OSHA Food products

18. Engineering Considerations (cont�d) Finite analysis testing done prior to building final prototypes Appearance: make inventions as appealing as possible Serviceability / Warranty Ease of use Weight Product life cycle

19. Engineering Considerations (cont�d) Advice Research and investigate to learn as much about your product that you�re inventing. You will reduce the amount of risk from knowledge you obtained The adage �1% inspiration, 99% perspiration� is true. Tough persistence is a necessary ingredient for success

20. Inventor Library Books One Simple Ideaby Stephen Key How to License Your Million Dollar Ideaby Harvey Reese From Patent to Profitby Bob DeMatteis Marketing Your Inventionby Thomas E. Mosley

21. Technical Assistance ContactInstitute for Business and Industry Development (IBID)North Dakota State University(701) 231-1001Center for Innovation (CI)University of North Dakota(701) 777-3132 Small Business Development Centers SCORE

22. Helpful Patent Search Sources US Patent Office: www.uspto.gov Chester Fritz LibraryUniversity of North DakotaP.O. Box 9000Grand Forks, ND 58202(701) 777-4888 Micheal Neustel, Patent Attorneywww.neustel.com(701) 281-8822