1 Instructor:Mr. C. Michael Carolina Industry Relations, OSU Education and Research Foundation...

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Instructor: Mr. C. Michael CarolinaIndustry Relations, OSU Education and Research FoundationAdjunct Professor, OSU College of Engineering, Architectureand Technology

Background: 5 Years in Environmental Enforcement/Consumer Safety5 Years in Education (Physical Sciences, Tulsa CommunityCollege)25 Years in Industry (Western Electric, AT&T and LucentTechnologies)

July, 2001: Retired as Engineering Director, Lucent’s Oklahoma CityFacility. Duties included Product, Process, Current and NPI Engineering

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Associations:CEAT Associates Advisory Board

College of Engineering, Board of Visitors, University of

Oklahoma

Director, Oklahoma Medical Research Foundation (OMRF)

Director, Memorial Institute for the Prevention of Terrorism

(MIPT)

Jim Thorpe All Sports Association and Oklahoma Sports Hall

of Fame

Other Boards of Directors

Education: Bachelor of Science, Oklahoma State University

Master of Science, University of Oklahoma

Post graduate studies, University of Oklahoma and Vanderbilt

University

AT&T Executive Development Program, Princeton, New Jersey

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Assignment “O”

Individual Profile By 6/19

• Company/Affiliation

• Current Assignment

• Where You Are in ETM Program

• Career Aspirations

• Other Pertinent Information

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MSETM 5110 – New Product Development

Class Profile

Students in Six States: CA, IL, NC, OK, TN, UT

Degrees: Range from B.S. to Ph.D

Fields: IT, Biotech/Pharmaceutical, Telecom, Computers/Computer Storage Devices, Energy, Automotive Filtration Systems, Security Systems

Assignments/Positions: Engineers, Team Leaders, Engineering Managers, Engineering Director, Research Technician/Leader, Quality Managers, IT Managers

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Course SyllabusMSETM 5110 – New Product Development

Scope

• The elements of NPI--marketing, design, development, manufacturing, provisioning, and support

• NPI as an integral part of business strategy and business planning• NPI as a vehicle to create competitive advantage for the

organization and its customers• The environment for sustaining NPI consistency and realizing

improvement project after project• The tools and metrics of new product development and

introduction• The order realization infrastructure needed to get new products to

customers in a manner that meets or exceeds their expectations, and that delivers the desired financial and overall business objectives

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Recap of Session I

• NPI the Lifeblood of a Company• The Forces Driving Development

– Intense International Competition– Fragmented, Demanding Markets– Diverse and Rapidly Changing Technologies

• Discontinuous Change or Disruptive Technologies• Defining Core Competence/competencies of an Organization• The Competitive Imperatives

– Speed– Efficiency– Quality

• The Environment for NPI• The NPI Process• The Metrics of NPI

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Recap of Session I (cont’.d)

• Fast Innovators vs. Slow Innovators

• The Customer as a Strategic Partner in NPI

• The Infrastructure for Successful Product Development (From Idea to Volume Production/Order Fulfillment)

– Cross-functional Teams

– Order Realization

• Full Stream Lifecycle Management (D B O D)

• It’s About Choices!

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The Ultimate Creativity Machine: How BMW Turns Art into Profit*

Three Operating Principles

• Protect the creative team, i.e., shield them from unproductive commentary of others in the company.

• Safeguard the artistic process, i.e., “construct a barrier” around model development to prevent time-to-market pressures from disrupting the actual work. (Guarantees that BMW’s design is never compromised.)

• Be an inventive communicator. In any organization dependent on art and commerce finding common ground, managers must use powers of persuasion and mediation to manage at the intersection of art and commerce.

*HBR Article by Chris Bangle, Global Chief of Design for BMW. (Includes the Z3 M-Coupe). January 2001, Reprint R0101B.

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Moore’s Law (Gordon Moore, CEO, Intel)

Transistor Count (Power) Will Double Every 18 Months and Will Continue for Many Years.

2300 Transistors/Chip in ’65; IB Today

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Why Do It?

• Competitive Advantage• Short-term and Long-Term Viability/Sustainability• Fund More Research• New Platforms and Derivative Products• Improve Productivity and Efficiency• Protect Installed Base• Protect Customer’s Investment• Create Brand Loyalty• Vehicle for Strategic Partnership• Meet Stakeholders’ Expectations

– Customers– Employees– Investors

• Renewal and Transformation of the Organization

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Applying Development Strategy and Resources to Stay Ahead of the Power Curve

Preemptive

Proactive

Maximum Value

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The Role of the Engineer in Product Development

D B O D

• Create Sustained Value for Customers and Stakeholders

• Do No Harm (Product Safety and Environmental Protection)

• Do the Right Things to Meet Objectives for Top-line Revenue and Bottom-line Profitability

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A Model for Product Development

Inv. $’s R&D New Product

Tech Transfer IP Publication

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The Essentials of NPD/NPI

• NPI in Strategic Terms/Linkage (What)

• NPI in Tactical Terms (How)

• The Entrepreneurial/Intrapreneurial Mindset (Innovation)

• Baselining/Benchmarking (Continuum)

• The New Product Development Game (Competition)

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The Essentials of NPD/NPI (cont’d.)

• An Imperative for a High Performance Team Recognition

(Excellence)

• DFX (Manufacturability, Testability, Installation, Supply Chain, E-Business, Environment) (Integration)

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Business Planning and Business Case

• Marketing Decisions

• Risk Analysis/Mitigation

• Project’s Resource Requirement

• Financial Projections

• Production Demands

• Supply Chain/Provisioning

• Product Support/Technical Assistance

• Personnel Needs

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New Marketing Paradigms

• Fit Both “Old World” and “New World” Economy

• Total Access

• IP/Networked World

• Globalization

• Hypercompetition

• Virtual “Always On” Presence (Anywhere/Anytime)

• Relationship Marketing

• Delivering Value to Customers, Collaborators, Company

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Design and Development Methodologies

• Quality Function Deployment (QFD)

• Design for Manufacturability (DFM)

• Computer-aided Design (CAD)

• Computer-aided Engineering (CAE)

• Computer-aided Manufacturing (CAM)

• Total Quality Management (TQM)

• System of Systems

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The Continuum Exercise

Checklist

• Are strategy and goals clearly defined, understood, communicated, aligned, executed?

• Are there the right metrics around the process?– Time to market/development cycle (e.g., concept to customer, design freeze to

ready-to-order)

– Status vs. project schedule

– Recovery plan in place

– Quality and reliability

– Change activity

– Target cost

– Percent revenue from new products

Poor

0

Average

5

Flawless Execution

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The Continuum Exercise (cont’d.)

• Is there a mechanism to capture learnings from each introduction that can be used to improve project after project?

• Are the right tools available for project tracking?

• Is there effective integration and communication across the functional teams (design, mfg., marketing)?

• Are there the right skills on the team?

• Is there the right commitment and passion for flawless execution?

Poor

0

Average

5

Flawless Execution

10

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Creating Breakthroughs at 3M

Step-by-Step Process

• Phase 1: Laying the Foundation– Identify target markets and involve key stakeholders in the company

• Phase 2: Determining the Trends– Identify experts in the field—people who have a broad view of

emerging technologies and leading-edge applications in the area being studied

• Phase 3: Identifying Lead Users– Identify and learn from users at the leading edge of the target

market and related markets to shape preliminary product ideas and to assess the business potential and how they fit with the mission of the company

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Creating Breakthroughs at 3M (cont’d.)

• Phase 4: Developing the Breakthroughs

– Move preliminary concepts toward completion…host workshops with several lead users, marketing and technical people to arrive at final design that fits customer’s and company’s needs. At conclusion, design team may disband; however, one team member should stay involved for continuity and help with related products and services.

Source: von Hippel, Thomke, and Sonnack, Creating Breakthroughs at 3M. HBR, October, 1999. Reprint 99510.

1 Instructor:Mr. C. Michael Carolina Industry Relations, OSU Education and Research Foundation...

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