1 Introduction
1 Introduction
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Research and Development
R T D
Basic Technology Product
Research Development Development
•Discovery process •Loosely structured •Structured methods
•No set timing •Difficult to plan •Planned timing
•Unpredictable returns •Less predictable •Predictable outcome
•Long term •Medium term •Short term
Changing Dimensions of
Competition
10
Lessons learned from the
stories
• It is products like these that make companies
successful
– and competitors retreat.
• What in common is that their developers
understood their customers and their
competitors
• They created products that met or exceeded
their customers’ expectation
• With these products, these companies
became competitive at that time.
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Characteristics of successful
product development
• Product quality (features and value)
• Development lead time
• Product cost
• Development cost
• Accumulation of development capability and
experience of the team.
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Today’s business environment
– Innovation
• Be the first in the market
– Shortened product life cycle & shortened product
development cycle
• concurrent engineering/operation
– Frequent changes & agile operations
• mass customization
– Smaller lots and just-in-time production
• lean manufacturing/thinking
– Core business and supply network
– Global economy and corporate intelligence
– Internet and wireless integration
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Scope of development efforts
• The team
– Development time: 1-5 years
– Development cost: US$100K-3B
– Team size (internal): 3-10K
– Team size (external): 3-10K
• The product
– Product cost: US$1-200M
– Numbers of parts: 3-130K
– Annual production volume: 50-50M
– Sales lifetime: 1-40 years
– Initial production cost: US$100K-3B
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Product development team –
core team
• Marketing professional
• Design professionals
– ME
– EE
– Industrial designer
• Manufacturing professionals
– Manufacturing engineer (manufacturability)
– Purchasing specialist (supply chain)
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Product development team –
extended team
• Legal, sales, finance professionals
• Consulting firms
• Government agencies
• Universities
• Environmental groups
• Professional regulatory groups (such as the
ASME)
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Benefits of integration
• The best practice is to involve a team of
people representing the necessary
disciplines and skills (a cross-functional
team)
• Note:
– Assemble your project team of multi-
disciplinary backgrounds as required.
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Challenges of product
development
• Trade-off
• Dynamics in the environment
• Tremendous amount of design details
• Time pressure
• Satisfaction of societal and individual needs
• Team diversity & spirit
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Organizational realities
– leading to dysfunctional product development team