New Product Development

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New Product Development
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Issues in Product Design

• User Centered design
• Group technology, part modularization,
  standardization, simplification, and
  specialization.
• Design for manufacture and automatic assembly.
• Value Analysis.
• Product evaluation and configuration management.
• Marketing and ongoing development.

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Business Task Hierarchy
Design Profession
Work Task
Generalist
Soft
Policy
Design Producer
Corporate Planning
Business Development
Strategy
Design Director
Concept Creation
Tactics
Design Manager
Modeling Researching
Designer
Design Actualization
Hard
Specialist
Field of Design
Architectural, Interior, Product, Visual
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CI Corporate Identity
BI Brand Identity
HI Human Identity
VI Visual Identity
PI Product Identity
Corporate Design Policy
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Shared Product Development Responsibility
General Manager
RD
Sales Marketing
Production Logistics
Steering Committee
Dept 01
Dept 01
Dept 01
Project Team 03
Dept 11
Dept 11
Dept 11
Project Team 02
Dept 110
Dept 110
Dept 110
Project Team 01
Project Manager Pool
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User centered design Establishing contacts with
customers

• Many large, high-tech companies consciously or
  unconsciously isolate their creative people and
  their RD departments from direct contact with
  customers. This is wrong since the voice of the
  customer can actually be used as a strategic edge
  for breakthroughs in innovation.
• Usually customer contact is relegated exclusively
  to the marketing department. A little later
  after-sales-service is attached to the marketing
  department. A small personal conflict between the
  RD manager and marketing manager could lead to
  the total isolation of RD personnel from the
  customer.

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Use of beta-sites
Microsoft has devised a very attractive method to
maintain close contact with its worldwide
customers. Every new, innovative software package
it develops is first distributed, free of charge,
to a network of enthusiastic customers willing to
serve as Beta-sites for Microsoft realizing that
the best way of creating a bug-free product is
to subject it to a statistically significant
quantity of real-life testing. Microsoft collects
fixes the bugs based on the feedback received
from these real-life users. The feedback also
usually contains a bonanza of comments,
suggestion, and proposals for improvements. These
drive future innovations.
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Red Competitor Representative

• Red competitor is the strongest real (external)
  competitor. An internal expert is selected to
  gather intelligence about the competitor,
  anticipate their moves and periodically challenge
  the internal Blue Team.

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Product Life Cycle
Adult
Aged
Infant
Revenue
Time
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• The growth in a new technological capability
  typically follows an Sshaped logistic curve,
• The curve can be divided into three stages
• (i) slow initial growth till the technology
  has
• demonstrated superiority over existing
  technologies,
• (ii) rapid explosive growth after
  superiority is
• demonstrated, and
• (iii) leveling off due to technological or
  socioeconomic
• factors.
• Commercially successful exploitation of
  technology often depends upon the astute
  perception and exploitation of the Sshaped
  growth trend. Hence much research has been done
  on how the curve may be modeled.

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Envelope Curves and Trend Exploitation

• Technological evolutions typically progress
  through successive substitutions of new
  approaches. Whereas individual technological
  capabilities (A, B, C, etc.) follow the S-shaped
  curves, each current technology is superceded by
  the next significantly superior technology so
  that the envelope curve can be used for trend
  exploitation.

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Some technology trends that have been modeled

• Efficiency of light bulbs since 1850
• log(lumens/watt) -128.715110.0685t
• (t is in years since 1850)
• Top speed of US combat aircraft since 1909
• log(speed mph) -118.30568 0.0640t
• Capacity of Random Access Storage/Random Access
  Time since 1951
• log(bits/microsec) -1080.81958 0.55125t
• Exercise Test each forecast against current
  value.

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Basic Research and Invention
The Process of Technological Innovation
Concept Design
Market Res. and Testing
Prototype Development and Testing
Final Product or Design Engg
Test Mktg
Tooling and Industrial Engg
Marketing Start-up
The Design and Development Activity
Manufacturing Start-up
Prodn, Mrktg, Sales
After-Sales Service and Trouble-shooting
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Managing Design 11 Phases

• 1. Identify need or want
• 2. Specification
• 3. Relevance of Product
• 4. Conceptual design
• 5. Preliminary cost estimate
• 6. Evaluation
• 7. Detail design
• 8. Prototype
• 9. Manufacture
• 10. Product launch
• 11. Product review

• Mrktg with Engg assistance
• Mrktg and Engg
• Mrktg, Prdn, Fin. and Legal
• Engg
• Prdn
• Fin. and Mrktg
• Engg
• Engg
• Prdn
• Mrktg
• Mrktg, Engg and Fin.

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Design is Interdisciplinary
Mech/Elec Eng.
Business Mgmt
Design for function
Design for Market
Design for Manufacture
Design for Appearance
Industrial Art
Manufacturing Eng..
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Objectives of Design

• Aim To make profits for the manufacturer while
  satisfying the customer within the constraints
  imposed by society (e.g. environmental effects,
  patents, intellectual property.
• Some objectives Simplicity, Lightness, Use of
  standard parts.

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Where should Design be located?

• Part of Production department Conflicts may
  arise because design changes disrupt production.
• Parallel with Production department.
• Temporary project team for each design project.
  Team drawn from various departments. Lying
  outside the normal line structure. Reporting to
  someone higher up. (Matrix Organization)

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Traditional Sequential Approach to Designing and
Manufacturing/Operating
Product/Service Decision Making
Design
Communication (final stage only)
Product/Service Specification
Operations
Process Decision Making
Time
Process Specification
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False Simultaneous Approach to Designing and
Manufacturing/Operating
Design
Weak, One-Way Communications
Operations
Time
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True Modern Simultaneous Approach to Designing
and Manufacturing/Operating
Design
Strong, Two-Way Communications
Operations
Visit the case study on Sun Microsystems here.
Time
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• Study the following chapters now
• Project Management Issues
• Value Analysis
• QFD
• DFX, etc.
• Patenting, etc.