Payloads Drop Outcome

1. Web Site Attachment 5(Material not intended for print in DSJIE but will be available on a web site)Payloads 9.8 Discussion

2. Payloads Drop Outcome Small Product Large Product . Distance from Distance from Drop Time Bulls Eye Break? Drop Time Bulls Eye Break? Team(seconds)(meters)(yes or no)(seconds)(meters)(yes or no) 1 2 3 4 5 6 7  Free Fall

3. Payloads 9.8 Performance Summary #Part Mtls. Devel. Time Total Revenue . Team#PartsTypesCostTimeCostCostSmallLargeProfit 1 2 3 4 5 6 7 A big hand for the winner!

4. Fabulous Prizes: Egg Coloring Kits for Function Representatives • Manufacturing Engineering: Which team had the lowest part cost? • Business Development: Which team had the highest revenue? • Marketing: Which team had the shortest development time?

5. Mindmap Game Outcomes Leadership Cross functional issues Social Issues Reflections Team Process Product Performance Technical Issues Materials Time

6. NPD Performance RelationshipsCommunication Problems?Let’s review the criteria and who knew it! Development Speed Product Cost Development Program Expense Product Performance

8. Cost Structure and Parts Worksheet Discrete Parts Number of Units Used 1 2 3 4 5 6 7 8 Cost/Unit $20,000 10,000 5,000 2,000 2,000 2,000 2,000 2,000 Cumulative Costs eggs $20,000 30,000 35,000 37,000 xx xx xx xx newspaper sections $20,000 30,000 xx xx xx xx xx xx styrofoam cups $20,000 30,000 35,000 37,000 39,000 41,000 43,000 45,000 popsickle stks $20,000 30,000 35,000 37,000 39,000 41,000 43,000 45,000 typing paper $20,000 30,000 xx xx xx xx xx xx plastic straws $20,000 30,000 35,000 37,000 39,000 41,000 xx xx pipe cleaners $20,000 30,000 35,000 37,000 39,000 41,000 xx xx rubber bands $20,000 30,000 35,000 37,000 39,000 xx xx xx sticks/bubble gum $20,000 30,000 35,000 37,000 39,000 41,000 xx xx paper clips $20,000 30,000 35,000 37,000 xx xx xx xx balloons $20,000 30,000 35,000 37,000 39,000 41,000 xx xx hole reinforcers $20,000 30,000 35,000 37,000 39,000 41,000 43,000 45,000 sections of plastic $20,000 30,000 xx xx xx xx xx xx Non-Discrete Parts The above cost structure applies to discrete parts only. A non-discrete part will cost $20,000, no matter how much of each is used. These include: duct tape $20,000 rubber cement $20,000 string $20,000 Tools There is no charge for the scissors, ruler, markers, or bag, but they must not be used in the product.

9. Development Time as a Performance Factor  • Shorter development times have numerous benefits related to overhead costs, team morale, bonuses from NASA, and follow-on work. • The company has done a careful analysis of time-to-market costs for the Payloads Project. The results of these analyses are shown in Exhibit 3. • Teams will be measured on the amount of time they use to complete their designs and submit them with the appropriate paperwork for review.

10. Lesson from Prior Games Work Quickly, but Carefully, Keep it Simple and Good Things will Follow! Product Development Field of Dreams

11. Cost Drivers --Keep it Simple!

12. Product Performance -- Revenue Drivers

13. How about new product development in the electronics industry?

14. Pareto never rests! Product Costs:Involve Key Personnel Early % Product Cost Committed % Design Cost Incurred 3-5 5-8 8-10 10-15 15-100 40-60 60-80 80-90 90-95 95-100 90%

15. McKinsey Study:“Better Expensive Than Late” Percent Loss in Total Profit 33% 22% 3.5% Product Cost 9% Too High Ship Product 6 Months Late 50% Development Cost Overrun Source: Electrical Engineering Times, August, 1989.

17. Payloads 9.8 Discussion • Technical Issues • Seek out part commonality opportunities. • Short time-to-market has many advantages. • Feature creep plagues many NPD efforts. • Modularity has advantages. • Use and timing of beta tests = important.

18. Payloads 9.8Discussion • Social Issues • Teams tend to “jump in” without discussing process. • Cross-functional communication can be incomplete. • Time pressure influences group behavior (half life rule). • Modularity allows for concurrent development work. • Functional rewards can lead to suboptimal designs. • It is useful to see, touch materials (Apollo 13 advantage). • Success is rewarding in itself.

19. Selected References Clark, K.B. and Fujimoto, T. Product Development Performance. Boston: Harvard Business School Press, 1991. DeMarco, T. & Lister, T. Peopleware: Productive Projects and Teams. New York: Dorset House, 1987. Fine, C. Clockspeed, MIT Press, 1998. Goldratt, E. The Critical Chain. North River Press, 1997. King, Bob, Better Designs in Half the Time. Goal/QPC, 1989. Marks, Peter and Riley, Kathleen, Aligning Technology, Design Insight, 1995. To order: 404-395-4001. Marsh, S., Moran, J.W., Nakui, S., and Hoffherr, G., Facilitating and Training in Quality Function Deployment., Goal/QPC, 1991. Norman, Donald, The Design of Everyday Things. Doubleday Currency, 1988. Owen, Don M., Achieving Rational Process Control Plans in Process Industries Through Quality Function Deployment. Quality Integrity Systems, 1994. To order, call 615-671-8413. Pugh, Stuart, Total Design: Integrated Methods for Successful Product Engineering. Addison-Wesley, 1991. Shiba, Shoji, Graham, Alan, and Walden, David, A New American TQM. Productivity Press, 1993. ISBN#: 1-56327-032-3. To order, call: 503-235-0600. Shirley, D. Managing Martians. Broadway Books, 1998. Smith, Preston and Reinertsen, Donald, Developing Products in Half the Time: New Rules, New Tools. Van Nostrand Reinhold, 1997. Utterback, James .M. Mastering the Dynamics of Innovation. Harvard Business School Press, 1994.