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Chapter 3 Handout Product Development

Chapter 3 Handout Product Development. Ahmad Syamil, Ph.D., CFPIM, CIRM, CSCP. Product Development: A process to generate concepts, designs, and plans for services and goods that an organization can provide to its customer. An Overview of Product Development in the Auto Industry.

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Chapter 3 Handout Product Development

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  1. Chapter 3 HandoutProduct Development Ahmad Syamil, Ph.D., CFPIM, CIRM, CSCP

  2. Product Development: A process to generate concepts, designs, and plans for services and goods that an organization can provide to its customer.

  3. 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) • Time-to-market: 3 - 5 years

  4. New Product Development (NPD) Practices 1. Stage-Gate (Phased-Review) 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.

  5. Benefits of using stages and gates in product development • Dividing a big product development project into smaller and more manageable stages. • Dividing responsibilities • Dividing resources (time, money, equipment)

  6. Stage 0 = Initial Assessment = Idea Validation = Fuzzy Front-End Activities

  7. Expected Results of Front-End Activities (Stage 0) • Clear product concept (aligned with customer needs). • Clear product definition. • Clear project plan (resource requirement, etc.)

  8. Front-End Decision at Gate 0 • Fund the product development project OR • Discontinue/kill the product development project

  9. Mortality Rate of New Products

  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. Over-the-Wall vs. Team Approach to Product Development

  12. Effect of Concurrent Work Scheduling on Completion Time

  13. Main Benefit of Concurrent Engineering • Reducing product development time

  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 F-150, 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. New Product Development (NPD) Practices (cont.) 4. Supplier involvement The practice of developing on-going contact/interactions with suppliers to enhance their participation in product development efforts/decision making

  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 on-going contacts / interactions with customers to better understand their needs.

  19. Main benefit of customer involvement • Increasing the probability of customer acceptance and product success

  20. Quality Function Deployment (QFD) • Benefit: Translating customer requirements into engineering design • History: • First user: Mitsubishi Kobe Shipyard (Shipbuilding), Kobe, Japan. • Auto industry in Japan • Larry Sullivan from Ford Motor Co • Auto Industry in the US

  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. 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. ISO 10303: STEP - Standard for the 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. 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. 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. If you use NewProd, you will be able to predict the success of your product 68 - 85% of the time

  30. THANK YOU VERY MUCH

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