Session 3 Product selection and Design Product selection Product Mix Selection of products we desire to produce - Factors to be considered

ed Sales reports, forecasts Design Specifications Product characteristics Relation to other products/models Type of labour force available Financial resources Space limitations Availability of Raw materials Availability of processes Product selection Process - Continuous activity Search, screen, develop, commercialize New products, modify existing lines, phase out the marginal or unprofitable lines. Idea Generation sources Organized consumer, laboratories, work place (in the field) scientists and technologists Unorganized from any where competitors, salesmen, distributors, consultants, bankers, administrators et Attribute listing Morphological analysis Brain-storming session Delphi method Problem inventory analysis

Idea Generation Special techniques

Product selection process Screening critical evaluation of ideas Feasible ? Suitable ? Viable ? Satisfy consumer needs ? Generate sales volume ? Profitability ? Objectives of the company?

 Methods of screening Check-list Rating method Break-even analysis Discounted cash flow Risk analysis Prototype development Drawings and designs Testing Pilot production Field trials Test marketing commercialization

Detailed business analysis

Product development

Product Development and Design Customer requirements ranked in order of importance Technical specifications evolved Involve customer into design specifications - Quality Function Deployment Product design Process Design and Manufacturing outsourced Companies specialize in product design Core competency characteristics Provides potential access to wide variety of markets It increases perceived customer benefits It is hard for competitors to imitate.

Typical Phases of Product Development Planning Concept Development System-Level design Design Detail Testing and Refinement Production Ramp-up

N o 0

Phase

Input

Output

Planning

Corporate strategy, technology development, Market objectives

Project mission target market, business goal, key assumptions, constraints Product concepts with each giving form, function, features of product, set of specifications, analysis of competitive products, economic justification

Concept Market needs, alternative development concepts, evaluation, select and short list for further development and testing

System Level Define product architecture, sub-systems, components, final assembly design scheme. Provide geometric layout, functional specification of each subsystem and preliminary process flow diagram for final assembly.

N o 3

Phase

Input

Output

Design details

Unique parts - Complete geometric specification, materials and tolerances. Identify all standard parts. Process plan and tooling for each part to be manufactured in-house

Drawing of each part and toolings for manufacture, specification of purchased parts and process plans for fabrication and assembly of product.

Testing and Refinement

construction and evaluation of multiple preproduction / prototype versions - manufactured to the same size and material specifications but not with the same production process to be employed. Prototypes tested to see whether the product will work as designed and will satisfy customer needs. Product is made using intended production system to train the workers and work out remaining problems in the production process. Products sometimes supplied to preferred customers to evaluate and identify remaining flaws. Gradual transition from ramp-up to regular production. At some point the product launched and available for widespread distribution.

Production Ramp-up

Variants of Generic Development Process technology push products, platform products, process intensive products, customized products,

 high-risk products, quick build products and complex systems.

Process Examples Process Description Characteristics Distinct features specified Breakfast cereal, noodles, Existing process Type Intensive constrained by or both product and designer paper production process. process to be developed Market pull Begin with market Process includes all Sporting goods, furniture, tools Produced at high from start (Generic) opportunity. Select phases volume appropriate technology to meet Customize Slight variations of Streamlined and highly Motors, switches, batteries, customer needs d Products existing structured process containers configurations Technology New proprietary Planning involves Teflon sheet insulation for push technology or market Risks identified and finds matching technology and cables, artificial veins, fabric High risk Technical Pharmaceuticals, space for systems outer wear, dental floss products appropriate market market. Concept uncertainties with tracked during development assumes PVC - foot ware, tiles, high risk of failure development. Early proven technology. coatings, bags analysis and testing Platform build Rapid modeling /Similar to Technology testing Software, cellularoperating Built around Polaroid film, Apple phones Quick Detail design and Products preexisting push. But platform has system, transport mechanism products prototyping many phases repeated till technological already demonstrated its of walkman, design build test budget runs out subsystem usefulness to customers. cycles simpler to develop. Complex systems Decomposed into Subsystems built by several subsystems many teams in parallel and components followed by integration and validation Airplanes, jet-engines, automobiles

Economic Analysis of Project Development Costs

Using measurable factors to help determine:

Operational design and development decisions Go/no-go milestones A financial model consisting of major cash flows Sensitivity Analysis for what if questions Quality Function Deployment

Building a Base-Case Financial Model

Designing for the Customer:

Interfunctional teams from marketing, design engineering, and manufacturing Voice of the customer House of Quality

Designing for the Customer:

The House of Quality

Customer requirements information forms the basis for this matrix, used to translate them into operating or engineering goals. Designing for the Customer: Value Analysis/Value Engineering Achieve equivalent or better performance at a lower cost while maintaining all functional requirements defined by the customer Does the item have any design features that are not necessary? Can two or more parts be combined into one? How can we cut down the weight? Are there nonstandard parts that can be eliminated?

Design for Manufacturability

Traditional Approach

We design it, you build it or Over the wall Concurrent Engineering

Lets work together simultaneously

Design for Manufacturing and Assembly Greatest improvements related to DFMA arise from simplification of the product by reducing the number of separate parts: 1. During the operation of the product, does the part move relative to all other parts already assembled? 2. Must the part be of a different material or be isolated from other parts already assembled? 3. Must the part be separate from all other parts to allow the disassembly of the product for adjustment or maintenance?

Measuring Product Development Performance Performance Dimension Time-to-market Measures Freq. Of new products introduced Time to market introduction Number started and number completed Actual versus plan Percentage of sales from new products Engineering hours per project

Productivity

Cost of materials and tooling per project Actual versus plan Quality Conformance-reliability in use Design-performance and customer satisfaction Yield-factory and field Typical Costs of New Product Development
Development cost ( design, testing and refinement cost up to

production ramp-up)

Ramp-up cost Marketing and support cost Production cost Sales revenue

Analysis of development Costs Estimate time and magnitude of future cash flows and then compute NPV (Net Present Value). Inputs - Project schedule, Project Budget, Sales volume forecast and estimated production costs Sensitivity analysis to understand trade-offs
What If questions to consider changes in factors considered.