Concurrent Product Development: Towards DQE

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Concurrent Product DevelopmentTowards DQE?

• Prof. Spyros Lioukas, Dr Irini Voudouris
• Athens University of Economics and Business

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Overview of the lecture

• New product development
• Why, stages, objectives, success factors,
  approaches
• Traditional product development
• Concurrent product development
• Definition
• Benefits
• Influencing agents
• Context
• How to achieve
• Barriers

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Objectives

• Learners will
• Discuss the reasons for New Product Development
  (NPD)
• Understand the approaches of NPD
• Identify the benefits of concurrent product
  development (CPD) versus traditional product
  development
• Identify the CPD as a means of How to achieve
  DQE

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New Product Development(NPD)

• Why?
• The long-term success and viability of a company
  depends on its ability to
• Produce better products than its competitors
• Satisfy the changing market demand
• The development of new products is an important
  strategic option
• The Cycle-Time of new products is reduced
  continuously
• The new products are gaining an increasing market
  share

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NPD Stages

• Stages in New Product Development (NPD)
• 1. Opportunity identification
• 2. Concept development
• 3. Product design
• 4. Process design
• 5. Commercial production

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NPD objectives
DQE
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NPD Success Factors

• Product fit with market needs
• Product fit with internal functional strength
• Technological superiority of the product
• Marketing synergy
• Use of a formal new product process
• Favorable competitive environment
• Design Quality - Environment

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Two approaches of NPD
Opportunity identification
Traditional Product Development
Concept development
Product design
Opportunity identification
Process design
Concept development
Commercial production
Product design
Concurrent Product Development
Process design
Commercial production
Savings
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Traditional product Development (TPD)

• or sequential design
• Each department does its work and passes off the
  product to the next Department for the next step
  in the process
• Common problems
• unsuitable product to be produced
• the necessary equipment is not available
• unsatisfactory design
• assembly problems
• the available equipment, tools and devices are
  not reused

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TPD Arguments against

• Too costly
• Too long
• The design of the product is finalised when it is
  known how it will be made
• Design alternatives are eliminated in the
  interest of time
• one narrow idea is pursued
• Rigid sequence of decisions in the design process
• Information is lost as the design progresses
• Each group sees the other as enemy
• Each group becomes highly specialized in its own
  analytical method
• Resulting poor design, quality, environment

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Concurrent Product Development (CPD)

• or concurrent engineering, integrated product
  development,
• Stylists, designers, marketers,
• economists and engineers
• work together and information flows
• between them, yet their respective roles remain
• distinct

Economics
Marketing
Production
Design
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Concurrent Product development (CPD)

• Definition
• "a systematic approach to integrated product
  development that emphasizes the response to
  customer expectations.
• It embodies team values of cooperation, trust,
  and sharing in such a manner that decision making
  proceeds with large intervals of parallel working
  by all life-cycle perspectives early in the
  process, synchronized by comparatively brief
  exchanges to produce consensus.
• Cleetus (CERC), 1992

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CPD formulation map
Objective
A way of improving Product Introduction
Strategy
Simultaneous consideration of all aspect of NPD
Other equally valid strategies e.g. improved
quality greater creativity/ better
design better specification/
environmental posture
Tactics
A Collection of Tools and Techniques
Company Generic
Company Specific
e.g. Teams Parallels Tasks
e.g. QFD, SPC
N.J. BROOKES, C.J. BACKHOUSE,Understanding
concurrent engineering implementation a case
study approach
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Benefits of CPD based on

• Early Problem-discovery
• Early decision making
• Work structuring
• Teamwork Affinity
• Knowledge Leveraging
• Common-understanding
• Sense of ownership
• Constancy-of-purpose

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CPD Benefits (1)

• Product development cycle time reduction (40-60)
• Quality improvement (200-600)
• Manufacturing costs reduction (30-40)
• Engineering changes reduction (more than 50)
• Scrap and rework reduction (up to 75)
• Error prevention
• Customer satisfaction

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CPD Benefits (2)

• Increased Productivity (20-110)
• Increased Investments return (20-120)
• Reduced risk
• Design compatibility with production facilities
• Enhanced team work, cooperation and collaboration
• Emergence of strong and confident managerial and
  scientific teams

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Influencing agents of CPD 7Ts
Prasad, CE Fundamentals Book 1997
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Influencing agents of CPD 7Ts

• Tasks - Parallel tasks
• Teams - Inter-disciplinary work groups,
  decomposition of tasks
• Techniques - Design-for-manufacture techniques
• Technology - PDM, EDI etc.
• Time reduction of the product design and
  manufacturing cycle time
• Tools - software, hardware, and networks
• Talents Learning the new work model

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The Context of CPD
The big picture view of the CE model
Supply Chain Context
Supply Chain Context
Company Context
Environmental Context
MITCHELL FLEISHER and JEFEREY K. LIKER,
CONCURRENT ENGINEERING EFFECTIVENESS
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The context of CPD (1)

• The internal company context
• People
• skills, job design, reward systems, motivation
• Organization
• relationships, project management structure, job
  description, coordination mechanisms, performance
  measurement systems
• Technology
• communication technology, design technology,
  program management technology, environmental
  tecchnology

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The context of CPD (2)

• The environmental context
• Industry
• Macro-environment
• PESTEL framework
• Global environment
• The supply chain context
• Customers and suppliers have critical role in
  development of new products

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How to Achieve CPD?Change Methodology
The CE Change Methodology a process for
changing the context in your company to make it
easier to do Concurrent Development
Assess the AS - IS situation
Design the new system
Implementing the New CPD system
Scope the Project
MITCHELL FLEISHER and JEFEREY K. LIKER,
CONCURRENT ENGINEERING EFFECTIVENESS
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CPD change methodology(1) Scope the project
Clarify Project Concept
Secure Sponsorship from Top Management
Develop Vision Boundaries
Develop Project Action Plan
MITCHELL FLEISHER and JEFEREY K. LIKER,
CONCURRENT ENGINEERING EFFECTIVENESS
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CPD change methodology (2) Assessment of the
AS - IS situation
Measure Performance
Measure Process Structure
Consolidation
Benchmark others
MITCHELL FLEISHER and JEFEREY K. LIKER,
CONCURRENT ENGINEERING EFFECTIVENESS
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CPD change methodology (3) Design the new CE
system
Characterize Environment
Consolidate Feedback
CE Work Process
Internal Organization
Supplier Relations
People Systems
Technology
Develop Design Principles
Design Process Structure
MITCHELL FLEISHER and JEFEREY K. LIKER,
CONCURRENT ENGINEERING EFFECTIVENESS
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CPD change methodology (4) Implementation
MITCHELL FLEISHER and JEFEREY K. LIKER,
CONCURRENT ENGINEERING EFFECTIVENESS
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Implementing CPD to SMEs

• Create a cross-disciplinary team (5-20 members)
• Teams feature high-bandwidth technical
  communication
• Trade-offs should be resolved by mutual
  understanding
• Design and production issues should be
  considered simultaneously
• Teams should have common goals

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Management initiatives for a successful
implementation

• Improving cross-functional integration
• Setting and analysing goals
• Directing and controlling integration
• Encouraging communication and awareness
• Fostering design for excellence
• Applying best design practices
• Facilitating design generation analysis
• Encouraging DQE

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Barriers to Implementation

• Barriers to implementation come from two fronts
• The natural resistance of organizations to change
• The lack of information available to assist in
  implementing that change
• Common errors
• Information waves
• Time loss risk
• Repetition cost augmentation
• Concurrent chaos
• Accumulation of errors

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References

• Mitchell Fleisher and J. K. Liker, Concurrent
  engineering effectiveness, Hanser Gerner
  Publications.
• A. Gunasekaran, (1998), Concurrent engineering
  a competitive strategy for process industries ,
  Journal of the Operational Research Society, 49.
• Suk-Ki Hong and Marc J, Schniederjans, Balancing
  concurrent engineering environmental factors for
  improved performance, Int. J. Prod.Res., 38(8)
• Bob Filipczak, (1996), Concurrent engineering A
  team by any other name?, Training (Minneapolis,
  Minn.) 33
• N. J. Brookes C. J. Backhouse, Understanding
  concurrent engineering implementation A case
  study approach, Int. J. Prod. Res., 36 (11).
• D.N. Ford and D. Sterman, Overcoming the 90
  Syndrome Iteration Management in Concurrent
  Development Projects, Concurrent Engineering
  Research and Applications.