Lecture - 01 - Slides - First Lecture
Lecture - 01 - Slides - First Lecture
Dr Sikiru O. ISMAIL
ND, BEng (Hons), MSc, PhD, PGCE, MASME, MASC, CEng MIET, MIMechE, FRSA, FHEA.
Number of Credits – 15
Module Assessments:
Vth
Vth
Vth
Process Engineering
Vth Vth
Vth
Production Engineering
Production Engineering
Vth Vth
Vth
Definitions of a Product, Product Design and Product
Development
– Equipment required
– Facility arrangement
– Organisational structure
Product Design Process
Customers,
Competitors, or
Suppliers
Product quality
Product cost
Customer’s satisfaction
• It is “big business”.
• Marketing?
• Design?
• Manufacturing?
Who ‘owns’ the problem?
Marketing: Mediates the interactions between the firm and its customers.
Marketing often facilitates the identification of product opportunities, the definition of
market segments, and the identification of customer needs. Marketing also sets
target prices, and oversees the launch and promotion of the product.
Design: Plays the lead role in defining the physical form of the product to best meet
customer needs. Includes engineering design (mechanical, electrical, software,
etc.) and industrial design (aesthetics, ergonomics, user interfaces).
• Product quality
How good is the product resulting from development?
Does it satisfy customer’s needs?
Is it robust and reliable?
Product quality is reflected in market share?
• Product cost
What is the manufacturing cost?
It includes capital equipment and tooling?
Characteristics of Successful Product Development
• Development time.
How long did the PD effort take?
• Development cost.
How much spent on PD effort?
• Development capabilities.
Did the team/firm acquire any experience for future
projects?
Challenges
• Trade-offs.
• Dynamics.
• Details.
• Time pressure.
• Economics.
• Creation.
• Team diversity.
• Team spirit.
Challenges
Trade-offs: An airplane can be made lighter, but this action will probably increase
manufacturing cost. One of the most difficult aspects of product development is
recognising, understanding, and managing such trade-offs in a way that
maximises the success of the product.
Watch:
https://www.youtube.com/watch?v=w2m5eU8XDVI
Products vs. Development Effort
Screwdriver Rollerblade DeskJet printer VW Beetle Boeing 777
Annual production
volume
(Units/year)
Sales lifetime
(Years)
Sales price
(£)
Development time
(Years)
Internal development
team
(Peak size)
External development
team
(Peak size)
Development cost
(£)
Production investment
(£)
Products vs. Development Effort
Decision Making Unit (DMU)
Additional influences:
Quality department
Design engineers
Manufacturing engineers
Finance department
Machine operator
Maintenance engineer
Project manager, among others
Who is involved in new product introduction?
Product Development Issues:
• Intelligent refrigerators will track food inventories, and will either provide
a hard-copy shopping list or send an electronic list to a home-delivery
service.
• Robotic lawn mowers will tend the grass within any specified boundary.
• “Smart” vest.
Not All New Products Are Planned
• Microwave ovens
• Aspartame (NutraSweet)
• Teflon
• Penicillin
• X-rays
• Dynamite
In each case, an accidental discovery -- but someone knew they had something when they saw it!
What Is a New Product?
• New-to-the-world (10% really-new) products: Inventions that create a whole new market.
Ex.: Polaroid camera, Sony Walkman, Rollerblade skates.
• New-to-the-firm products (20%): Products that take a firm into a category new to it. Ex.:
P&G brand shampoo or coffee, AT&T Universal credit card, Canon laser printer.
• Additions to existing product lines (26%): Line extensions in current markets. Ex.: Apple’s
iMac, HP LaserJet 7P.
• Improvements and revisions to existing products (26%): Current products made better.
Ex.: P&G’s continuing improvements to Tide detergent, Ivory soap.
• Repositioning (7%): Products that are retargeted for a new use or application. Ex.: Aspirin
repositioned as a safeguard against heart attacks.
• Cost reductions (11%): New products that provide the customer similar performance but
at a lower cost. May be more of a “new product” in terms of design or production.
Breakthrough Innovations that Changed Our Lives
• Personal Computer
• Microwave Oven
• Photocopier
• Pocket Calculator
• Bar coding
• Laser Surgery
• Organ Transplanting
• Fibre-Optic Systems
• Disposable Diaper
Watch: https://www.youtube.com/watch?v=mXQutmXtZ9g
Read
You should:
• Read BS7000 (BS Online) look at the management structure and the
suggested product development phases.
Re-watch:
• https://www.youtube.com/watch?v=mXQutmXtZ9g
• https://www.youtube.com/watch?v=w2m5eU8XDVI
Thank
you