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Chapter 2 2014

  1. 1. DEPARTMENT OF MANUFACTURING AND MATERIALS ENGINEERING MME 4116 PRODUCT DESIGN AND DEVELOPMENT BY: DR MOHD RADZI BIN HAJI CHE DAUD
  2. 2. CHAPTER 2 PRODUCT DEVELOPMENT PROCESS
  3. 3. 2.1 Introduction What is the product development process? 3 Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  4. 4. 2.2 Product Development Process in Stage-Gate Format 4 • A generally accepted model of the product development process:  An important reason for using the stage-gate process is to “quickly get it right”. Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  5. 5. Phases of PDP (0 to 2) 5 • Phase 0: The planning that should be done before the approval of the product development project. • Phase 1: Concept development considers the different ways the product and each subsystem can be designed. • Phase 2: System-Level Design is where the functions of the product are examined, leading to the division of the product into various subsystems. Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  6. 6. Phases of PDP (3 to 5) 6 • Phase 3: Detail Design is the phase where the design is brought to the state of a complete engineering description of a tested and producible product. • Phase 4: Testing and Refinement is concerned with making and testing many preproduction versions of the product. • Phase 5: Production Ramp-Up is when the manufacturing operations begins to make and assembly the product using the intended production system. Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  7. 7. Factors for Success 7 𝑃𝑟𝑜𝑓𝑖𝑡 = 𝑃𝑟𝑜𝑑𝑢𝑐𝑡 𝑃𝑟𝑖𝑐𝑒 − 𝑃𝑟𝑜𝑑𝑢𝑐𝑡 𝐶𝑜𝑠𝑡 (2.1) ______________________________________________________ • Four Key Factors of Success: – The quality, performance, and price of the product. – The cost to manufacture the product over its life cycle. – The cost of product development. – The time needed to bring the product to the market. Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  8. 8. Sales & Revenue versus Time 8 Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  9. 9. Cost & Price versus Time 9 Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  10. 10. Static Versus Dynamic Products 10 • Static Product: The changes in their design take place over long time periods through incremental changes occurring at the subsystem and component levels. – Automobiles – Appliances: refrigerators, dishwashers • Dynamic Products: Customers are willing to, and may even demand, change. – Wireless mobile phones – Digital video recorders and players – Software Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  11. 11. Variations on the Generic PDP 11 • Platform Product is built around a preexisting technological subsystem. – Apple Macintosh operating system – Black & Decker doubly insulated universal motor • Customized Products are those in which variations in configuration and content are created in response to a specific order of a customer. • In a highly competitive world marketplace, mass customization appears to be one of the future trends. Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  12. 12. 2.3 Product And Process Cycles What are the stages of product and process cycles? 12 Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  13. 13. Product Life Cycle 13 Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  14. 14. Product Development Cycle 14 Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  15. 15. Technology Development 15 Transferring Technology Development CycleSimplified Technology Development Cycle Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  16. 16. 2.4 Organization For Design and Product Development How can an organization affect the design and product development? 16 Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  17. 17. Organization’s Effect on Design & Product Development 17 • The organization of a business enterprise can have a mjor influence on how effectively design and product development are carried out. Fundamental ways for organizing a business FUNCTION PROJECTS Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  18. 18. Engineering Functions 18 Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  19. 19. Links Between Individuals 19 • Reporting Relationships: A subordinate is concerned about who his or her supervisor is, since the supervisor influences evaluations, salary increases, promotions, and work assignments. • Financial Arrangements: Another type of link is budgetary. The source of funds to advance the project, and who controls these funds, is a vital consideration. • Physical Arrangements: Studies have shown that communication between individuals is enhanced if their offices are within 50 feet of each other! Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  20. 20. Example of a functional organization 20 Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  21. 21. Simplified Project Organization 21 Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  22. 22. Hybrid Organization(matrix Organization) 22 Functional Organization Project Organization Hybrid Organization • In the lightweight project organization the functional links are stronger than the project links. • In the heavyweight matrix organization the project manager has complete budgetary authority, makes most of the resource allocation decisions, and plays a strong role in evaluating personnel. Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  23. 23. Lightweight & Heavy Weight Project Organizations 23 Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  24. 24. 2.5 Markets and Marketing How can we describe the market and marketing for engineered products? 24 Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  25. 25. Markets 25 • Marketing is concerned with the interaction between the corporation and the customer. • We need to differentiate between the customer and the user of the product. • Market is an economic construct to identify those persons or organizations that have an interest in purchasing or selling a particular product, and to create an arena for their transactions. – Stock Market: Prototypical Market • Strong brand names evolved as a way of building customer recognition and loyalty. Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  26. 26. Market Segmentation 26 • Cooper suggests that four broad categories of variables are: – State of Being:  Sociological factors: age, gender, income  For industrial products: company size, industry classification,  Location: urban, suburban, rural – State of Mind:  Attitudes  Values  Life styles – Product Usage:  Heavy User  Loyalty – Benefit Segmentation Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  27. 27. Marketing Department 27 • Function: – The marketing department in a company creates and manages the company’s relationship with its customers. • Expected Tasks: – Preliminary marketing assessment – Quick scoping of the potential sales – Competition – Market share at the early stages of the product planning – Detailed market study – Assisting with the introduction of the product into the marketplace – Providing product support system Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  28. 28. Marketing Plan 28 • Identifying the target market • Product strategy • Expressing product benefits Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  29. 29. Marketing Plan(2) 29 • Marketing plan should contain:  Evaluation of market segments  Identification of competitive products  Identification of early product adopters  Clear understanding of benefits of product to customers  Estimation of the market size in terms of dollars and units sold  Determination of the breadth of the product line  Estimation of product life  Determination of the product volume/price relationships  Complete financial plan including time to market Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  30. 30. 2.6 Technological Innovation How does technological innovation happen? 30 Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  31. 31. Invention, Innovation, and Diffusion 31 • Invention: – The creative act whereby an idea is conceived, articulated, and recorded. • Innovation: – The process by which an invention or idea is brought into successful practice and is utilized by the economy. • Diffusion: – The successive and widespread implementation and adoption of successful innovations. Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  32. 32. Technologically Inspired Product 32 Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  33. 33. Business Strategies Related to Innovation and Product Development 33 • Star businesses: – High sales growth potential, high market share potential • Wildcat businesses: – High sales growth potential, low market share • Cash-cow businesses: – Low growth potential, high market share • Dog businesses: – Low growth potential, low market share Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  34. 34. Characteristics of Innovative People 34 • Idea generator: – The creative individual • Entrepreneur: – The person who “carries the ball” and takes the risks • Gatekeepers: – People who provide technical communication from outsife to inside the product development organization. • Program manager: – The person who manages without inhibiting creativity • Sponsor: Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  35. 35. Types of Technology Innovation 35 • Need-driven innovation: – where the development team seeks to fill an identified gap in performance or product cost (technology pull) • Radical innovation: – which leads to widespread change and a whole new technology, and arises from basic research (technology push) Dieter/Schmidt, Engineering Design 5e. ©2013. The McGraw-Hill Companies
  36. 36. THANK YOU

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