Lecture 2 - Product Development
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Transcript of Lecture 2 - Product Development
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.
• Both should be in response to customer requirements
Product Development (cont.)
• New product development occurs before “job 1” in the life cycle of a product
ProfitEnd of
Product Life Cycle
Job 1
Break Even
Sales
Time
Product 2Product 1 Product 3
grow
th
maturitydecline
Product Development (cont.)
• A manufacturing company must continually introduce new products to remain profitable
Why Rapid?• Products are becoming more complex.
• Intuitively, this would imply a longer product development time.
• Rushing the process could lead to mistakes.
• Why not allow the product development process to continue at its current pace?
Why Rapid (cont.)?• Product life cycles are shortening
Time
Year
Product Life
1970 1980 1990 2000
Why Rapid? (cont.)• More products are needed more often, e.g.
– in 1970s car models could have a ten year life– in 1990s some manufacturers were releasing
new models every two years
• Less time to make profits
• Late entry into market will hit profits, e.g. 6 months late could lose 33% of total profit
• RPD reduces time-to-market
Profits• Early Introduction Increases Market
Share and Hence Extends Product Life
Early Entry
Late Entry
Time
Sales Volume
Longer Sales Life
Larger Market Share
Source: Smith and Reinertsen
Profits• Initially Pricing Premium• Later Lower Manufacturing Costs
Competition Enters Market
Product Introduced
Market Price
Cost Advantage
Pricing Premium
Time
£
How Rapid is Rapid?• Product development times vary greatly
between manufacturing sectors, e.g.– Aircraft - 10 years– Automobile - 3 years– Consumer goods - less than one year
• Need to benchmark against competitors
• Aim for continuous reduction, e.g cut time-to-market by 50% every five years
How to Shorten Time-to-Market?
• Product development process typically covers several stages from concept design through to market launch
• EITHER shorten individual stage - minimal effect and only if on critical path
• OR increase overlap between stages - much more potential for saving time
• Second option is Concurrent Engineering
Concurrent Engineering (CE)
• Concurrent Engineering (CE) is a powerful strategy for reducing Time-to-Market
• CE must be adapted to specific company needs
• Certain critical elements remain constant, e.g. improved communication
Concurrent Engineering (contd)
• Simultaneous execution of product development tasks
• Typically includes design, design analysis, testing, process design, plant layout, production planning and marketing
• Replaces “sequential” engineering
Concurrent Engineering vs. Sequential Engineering
DesignAnalysis
TestingProcess Design
Plant LayoutProd. Planning
Marketing
Product Development using Sequential Engineering
Information
Changes Required
Concurrent Engineering vs. Sequential Engineering
DesignAnalysis
TestingProcess Design
Plant LayoutProd. Planning
Marketing
Product Development using Concurrent Engineering
Shared Two-way
Information
Main Features of Rapid Product Development
• Personnel from different functions work together within product development teams
• Decisions are made much sooner
• Early communication of information is vital
• Many tools (often computer-based) are available to support this process
How does RPD reduce
Time-to-Market?• Design takes into account all subsequent
activities, e.g. manufacture, marketing, etc.
• More people are involved in the early stages of product development
• More design iterations and changes are made during these early stages
• Hence, more time is required for early stages of product development
How does RPD reduce Time-to-Market (contd)? • Fewer design changes in later stages
• Total product development time is reduced
Numberof
Changes
Time
Job 1
With CE Without CE
Job 1
What RPD tools are available to help reducing Time-to-
Market?• Project teams
• Quality Function Deployment
• Engineering data management
• Computer aided design
• Design for manufacture and assembly
RPD Tools (contd)• Rapid prototyping
• Virtual prototyping
• Rapid tooling
• Rapid manufacturing
• High Speed Machining
• Agile Fixturing
Project Teams• Personnel from several disciplines are co-
located (physically or virtually)
• Inputs to designs reflect entire range of requirements
• Decisions can be made more quickly
• Designs satisfy all constraints and thus require fewer late changes
Project Team Members
Quality Function Deployment
• Customer requirements are incorporated directly into product development process
• Responses to customer objectives are prioritised
• “Voice of customer” is disseminated throughout all stages of process
• Much wasted effort is avoided as all activities are correctly focused
Engineering Data Management
• Enterprise-wide database system
• Stores all product-related information
• Version control and access control
• Can be used for work-flow management
• Promotes enterprise-wide communication
• Supports earlier and shared decision making
EDM Database Structure
AssemblyData
FEMFiles
Sub-assembly Part Data
3D CADModels
DataNCFilesFile reference list
Computer Aided Design• Geometric shape is fully defined
• Additional information can be added, e.g. tolerances, material, surface finish
• Changes can be made more quickly
• Data is available to support “downstream activities”, e.g. FEM, NC, RP
• Can act as a communication tool across the whole enterprise
Assembly Model using CAD
Design for Manufacture and Assembly
• Designs are created taking into account the manufacturing and assembly processes to be used
• Avoids late changes in the design
• Shortens time of preparation for manufacture
• Can also shorten manufacturing lead-time
Example of Design for Assembly
good design inferior design
Example of Design for Extrusion
inferior design good design
What experiences have
companies had?• Many companies have implemented rapid
product development
• Typical reduction in Time-to-Market has been from 30% to 70%
• Two examples will be used to illustrate this– Sunstrand Electric Power Systems– 3M
RPD at Sunstrand• Time-to-Market reductions for various
componentsComponents Prior to CE Using CE
Sheet metal parts 2 weeks 1-3 days Printed wiring boards
4-6 weeks 2 weeks
Investment castings
12-16 weeks 5 weeks
Machined plastic parts
2 weeks < 1 week
RPD at Sunstrand (contd)• Other benefits were also realised:
– Design cycle reduced from 7 to 4 months– Design costs reduced by 45%– Engineering changes reduced by 55%– Production cycle reduced from 35 to 18
hours– Mean failure time in field increased from
1800 to 8000 hours
• Improved reliability was attributed to more design iterations giving optimised design
RPD at 3M• 3M set goal of cutting Time-to-Market by 50%
within 5 years
• They achieved this after only 3 years
• Preliminary design time was increased by 300%
• This paid off with a greater time saving later in the product development process
• How?
RPD at 3M (cont.)• Taking previous Time-to-market as 100
units, this was reduced to 50 units:
Activity Prior to CE & RP Using CE & RP Preliminary design
5 20
Detail design 25 10 Build/test process
50 15
Documentation 20 5 Total time 100 50
Conclusions• RPD is an effective strategy for reducing
Time-to-Market
• More effort earlier will produce greater savings later
• There are many RPD tools available
• Selection of tools depends upon company circumstances