100327-product develop met in automobile industry

8/9/2019 100327-Product Develop Met in Automobile Industry

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Product Development

in Automobile IndustryEngr SHAHRUKH

AU-411

Product Development


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An Overview of ProductDevelopment in the Auto

IndustryNumber of parts in a car: 8,000 - 20,000

Cost:Ford Escort: $5 billion (1980s)

Dodge Neon: $1.3 billion (1990s)

Time-to-market: 3 - 5 years


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New Product Development

(NPD) Practices1. Stage-Gate (Phased-Review) Systems

Stage: Where the work is done

Gate: A set of criteria that the product must passbefore moving to the next stage

Gate keeper: senior management team

Users: Royal Bank of Canada, Polaroid, Kodak, etc.


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S t a g e0

I d e a V a l i d a t i o n

* A s s s e s s m e n t T e a m

* E c o n o m i c a n d T e c h n i c a lF e a s i b i l i t y

* P r e s e n t C a p a b i l i t i e s

* Q u a n t i f y C r i t i c a l S u c c e s F a c t o r s

* B u s i n e s s P l a n

G a t e 0G o / N o - G o

S t a g e1

C o n c e p t u a l D e s i g n

* T e a m S e l e c t i o n

* C u s t o m e r R e q u i r e m e n t s* T e c h n o l o g y S e l e c t i o n

* F i n a l i z e C r i t i c a l S u c c e s F a c t o r s

* D e v e l o p t h e A c t i o n P l a n

* F i n a n c i a l P r o j e c t i o n

G a t e 1

S t a g e2

S p e c i f i c a t i o n

a n d D e s i g n

G a t e 2

S t a g e3

P r o t o t y p e

T e s t a n d

V a l i d a t e

G a t e 3

S t a g e4

V o l u m e

M a n u f a c t u r i n g

F I G U R E 1

S T A G E S A N D G A T E S

S o u r c e : N o r t h e r n T e l e c o m , I n c .

F l o w o f p r o d u c t


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Benefits of using stages andgates in product development

1. Dividing a big product developmentproject into smaller and more

manageable stages.2. Dividing responsibilities

3. Dividing resources (time, money,equipment)


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= Initial Assessment

= Idea Validation

= Fuzzy Front-End Activities

Stage 0


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Expected Results of

Front-End Activities (Stage0)Clear product concept (aligned with

customer needs).Clear product definition.

Clear project plan (resource

requirement, etc.)


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Front-End Decision at Gate 0

Fund the product development project

OR

Discontinue/kill the productdevelopment project


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Mortality Rate of New

Products


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Question:

Suppose you are a productdevelopment manager, what are your

main jobs?

1111


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New Product Development(NPD) Practices (Cont.)

2. Concurrent engineering =simultaneous engineering

The practice of involving teams offunctional disciplines to

simultaneously plan product andprocess activities

O h ll


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Over-the-Wall vs. TeamApproach to Product

Development


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Effect of Concurrent WorkScheduling on Completion Time


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Main Benefit of ConcurrentEngineering

Reducing product development time


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New Product Development(NPD) Practices (cont.)

3. Platform productsThe practice of planning multiple generations of

products based on a core product and process design

Original concept:Auto industry: platform = chassis

Complete platform: Chassis, engine, transmission,axles.

Example: Ford F-150, Ford Expedition, Lincoln Navigator,

Lincoln Blackwood (discontinued), and Lincoln Mark LTuse the same platform.

New Users: IBM, Toshiba, Sony (e.g. walkman) , etc.


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Question:

If I give you $1 billion to develop a newcar with a totally new platform/chassis.

How much money (on average) willyou spend on creating a totally newplatform including new engine,

transmission, axles?

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Benefits of using platformproducts

Reducing product development timeand cost

Reducing manufacturing cost (sharingsimilar components, tools, jigs, etc.)

Reducing risk (by using proven

technology and product)


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4. Supplier involvement

The practice of developing on-going contact/interactions withsuppliers to enhance theirparticipation in product development

efforts/decision making


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Benefits of supplierinvolvement

Borrowing suppliers technologies.

Examples: Auto manufacturers/Original Equipment Manufacturers/OEMs andtheir main suppliers

Toyota and Denso (formerly known as Nippon Denso)BMW and Robert Bosch

Chrysler and Dana Corporation

GM and Delphi Automotive

Ford and Visteon

Shifting product development workload to suppliers

Reducing product development time and cost

Developing good supplier relationship


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Main benefit of customerinvolvement

Increasing the probability of customeracceptance and product success


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Quality Function Deployment(QFD)

Benefit: Translating customerrequirements into engineering design

History:1. First user: Mitsubishi Kobe Shipyard

(Shipbuilding), Kobe, Japan.

2. Auto industry in Japan

3. Larry Sullivan from Ford Motor Co4. Auto Industry in the US


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6. Information technology utilization

The practice of employingcomputer and communicationtechnologies to plan and coordinateproduct development activities


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CAD (Computer AidedDesign)

2 Dimension CAD and 3 Dimension CAD

Examples:

GM: Electronic Data System (EDS) Unigraphics

Chrysler: Frances Dassault Systemes CATIA

Ford: Structural Dynamics Research Corp. (SDRC) IDEAS


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Question:

How do you exchange information amongdifferent CAD systems?

How do you solve incompatibility issues amongdifferent CAD systems?

How do you exchange information between aCAD system, Computer Aided Manufacturing

(CAM), Computer Aided Engineering (CAE) andother computerized systems?

Answer: Next page

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ISO 10303: STEP - Standard forthe Exchange of Product

Model DataThe official title ofISO (InternationalOrganization for Standardization) 10303 isIndustrial automation systems and integration -

Product data representation and exchange.

ISO 10303 is known as STEP or the Standardfor the Exchange of Product model data. It

is an International Standard for the computer-interpretable representation and exchange ofindustrial product data.
http://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/International_Organization_for_Standardization


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ISO 10303: STEP - Standard for theExchange of Product Model Data

(cont).The objective is to provide a mechanism that is capable of describingproduct data throughout the life cycle of a product, independent fromany particular system. The nature of this description makes it suitablenot only for neutral file exchange, but also as a basis for implementingand sharing product databases and archiving.

Typically STEP can be used to exchange data between CAD, ComputerAided Manufacturing (CAM), Computer Aided Engineering (CAE) andother systems.

STEP is addressing product data from various industries such asmechanical, automotive, aerospace, building construction, ship, oil &gas, process plants and others.

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http://en.wikipedia.org/wiki/CADhttp://en.wikipedia.org/wiki/CAD


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Question:

Is it possible to predict whether a new

product will be a successful product inthe market?


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NewProd System:Tool for Predicting New Product

SuccessInventor: Robert G. Cooper, Ph.D.

Using historical data from hundreds of product development successesand failures

Users: Procter and Gamble, Exxon, etc.

Using a multiple regression analysis

Y = a + b1 (X1) + b2 (X2) + + b9 (X9)

Dependent variable: Y = degree of product success

Independent variables: X1, X2, , X9 (next page)


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NewProd Questionnaire(Independent or X variables)

1. Product superiority/quality

2. Economic advantage to the user

3. Overall company/project fit

4. Technological compatibility

5. Familiarity to the company

6. Market growth & need

7. Competitive situation

8. Defined opportunity

9. Project definition


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If you use NewProd, youwill be able to predict the

success of your product 68- 85% of the time


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THANKYOU

VERYMUCH

100327-product develop met in automobile industry

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