lecture 2 - product development
TRANSCRIPT
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Lecture 2
Product Development
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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
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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
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Sales
Time
Product 2Product 1 Product 3
grow
th
maturitydecline
Product Development (cont.)
• A manufacturing company must continually introduce new products to remain profitable
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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?
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Why Rapid (cont.)?• Product life cycles are shortening
Time
Year
Product Life
1970 1980 1990 2000
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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
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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
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Profits• Initially Pricing Premium• Later Lower Manufacturing Costs
Competition Enters Market
Product Introduced
Market Price
Cost Advantage
Pricing Premium
Time
£
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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
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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
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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
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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
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Concurrent Engineering vs. Sequential Engineering
DesignAnalysis
TestingProcess Design
Plant LayoutProd. Planning
Marketing
Product Development using Sequential Engineering
Information
Changes Required
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Concurrent Engineering vs. Sequential Engineering
DesignAnalysis
TestingProcess Design
Plant LayoutProd. Planning
Marketing
Product Development using Concurrent Engineering
Shared Two-way
Information
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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
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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
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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
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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
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RPD Tools (contd)• Rapid prototyping
• Virtual prototyping
• Rapid tooling
• Rapid manufacturing
• High Speed Machining
• Agile Fixturing
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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
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Project Team Members
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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
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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
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EDM Database Structure
AssemblyData
FEMFiles
Sub-assembly Part Data
3D CADModels
DataNCFilesFile reference list
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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
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Assembly Model using CAD
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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
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Example of Design for Assembly
good design inferior design
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Example of Design for Extrusion
inferior design good design
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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
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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
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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
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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?
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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
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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