Engineering Design ET ZC413 Lecture 3 PDF

Engineering Design ET ZC413 Lecture - 3 BITS Pilani Dr. Glynn John Pilani Campus Mechanical Engineering Product Development Process Factors for success Product and process cycles Org...

Engineering Design ET ZC413 Lecture - 3 BITS Pilani Dr. Glynn John Pilani Campus Mechanical Engineering Product Development Process Factors for success Product and process cycles Organization for product and design development Markets and marketing Technological innovations Case studies for modern product development 10 August 2024 2 Factors for Success Is the product attractive and easy to use? Is it durable and reliable? Does it meet the needs of the customer? Is it better than the products now available in the marketplace? If the answer to all of these questions is an unqualified Yes, the customer may want to buy the product, but only if the price is right. 10 August 2024 ENGINEERING DESIGN 3 Factors for Success 10 August 2024 ENGINEERING DESIGN 4 Factors for Success 10 August 2024 ENGINEERING DESIGN 5 Product life cycle 10 August 2024 ENGINEERING DESIGN 6 Product life cycle 10 August 2024 ENGINEERING DESIGN 7 Product life cycle Product change is rapid. Attempts should be made to rejuvenate the product by the addition of new features. There may be emphasis There is great emphasis on reducing on custom the cost of a mature product tailoring. 10 August 2024 ENGINEERING DESIGN 8 10 August 2024 ENGINEERING DESIGN 9  Technology Development and Insertion Cycle Transferring from one technology growth Simplified technology development cycle. curve (A) to another developing technology (B) The success of a technology-based company lies in recognizing when the core technology on which the company’s products are based is beginning to mature and, through an active R&D program, transferring to another technology growth curve that offers greater possibilities. To do so, the company must manage across a technological discontinuity (the gap between the two S-curves, and a new technology must replace the existing one ( technology insertion ). 10 August 2024 ENGINEERING DESIGN 10 Product Development Organizations Functional Organization Project Organization 10 August 2024 ENGINEERING DESIGN 11 Product Development Organizations Lightweight Project Matrix Heavyweight Project Matrix Organization Organization 10 August 2024 ENGINEERING DESIGN 12  Very Successful Products iPhone (2007) Lipitor (1997) Lipitor, an LDL (bad) cholesterol- The iPhone integrated phone, lowering statin drug with sales over camera, music player, and internet $141 billion, is one of the best-selling access all into one device – and it did products ever. it well. Lipitor survived, thrived, and The iPhone also launched with iOS – ultimately beat out the competition the software platform that makes all because it worked so much better of the magic behind that touchscreen than any other statin drugs on the possible. market. 10 August 2024 ENGINEERING DESIGN 13  Very Successful Products Rubik’s Cube Toyota Corolla (1966) (1980) By 1982, just two years after its international debut, 100 million had Less than ten years after launching, the been sold. Corolla was crowned the best-selling car of 1974. It’s hovered around that spot ever The inventor Erno Rubik patented the since. soon-to-be-iconic puzzle in 1975 and launched it internationally in 1980. He The Corolla’s main selling points have never anticipated the level of success always been its reliability, affordability and his puzzle would enjoy. fuel economy. 10 August 2024 ENGINEERING DESIGN 14 Process Development Cycle Process development is most important in the materials, chemicals, or food processing industries. The process development can be classified as Uncoordinated development: The process is composed of general-purpose equipment with a high degree of flexibility, similar to a batch process. Since the product is new and is developing, the process must be kept flexible. Segmental: The manufacturing system is designed to achieve higher levels of efficiency in order to take advantage of increasing product standardization. This results in a high level of automation and process control. Some elements of the process are highly integrated; others are still loose and flexible. Systemic: The product has reached such a high level of standardization that every process step can be described precisely, as on an assembly line. Now that there is a high degree of predictability in the product, a very specialized and integrated process can be developed. 10 August 2024 ENGINEERING DESIGN 15 Markets and Marketing Marketing is concerned with the interaction between the corporation and the customer. The market is an economic construct to identify those persons or organizations that have an interest in purchasing or selling a particular product As the capability to produce products continued to grow, the markets for those products expanded beyond the borders of one country. Companies then began to think of ways to market their products in other countries. This was the beginning of multinational companies. Another approach to multinational business was developed by the Japanese automakers. These companies designed, developed, and manufactured the product in the home nation and marketed the product in many locations around the world. 10 August 2024 ENGINEERING DESIGN 16 Market Segmentation State of Being Sociological factors—age, gender, income, occupation For industrial products—company size, industry classification, nature of the buying organization Location—urban, suburban, rural; regions of the country or world State of Mind— This category attempts to describe the attitudes, values, and lifestyles of potential customers. Product Usage— looks at how the product is bought or sold Heavy user; light user; nonuser Loyalty: to your brand; to competitor’s brand; indifferent Benefit Segmentation— attempts to identify the benefits people perceive in buying the product. This is particularly important when introducing a new product. When the target market is identified with benefits in mind, it allows the product developers to add features that will provide those benefits. 10 August 2024 ENGINEERING DESIGN 17 Elements of a Marketing Plan Evaluation of market segments, with clear explanation of reasons for choosing the target market Identify competitive products Identify early product adopters Clear understanding of benefits of product to customers Estimation of the market size in terms of dollars and units sold, and market share Determine the breadth of the product line, and number of product variants Estimation of product life Determine the product volume/price relationships Complete financial plan including time to market, ten-year projection of costs and income 10 August 2024 ENGINEERING DESIGN 18  Business Strategies Related to Innovation and Product Development 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 10 August 2024 ENGINEERING DESIGN 19 Technological Innovation Invention, Innovation, and Diffusion Generally, the advancement of technology occurs in three stages: 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. 10 August 2024 ENGINEERING DESIGN 20 Types of Technology Innovation Need-driven innovation - the development team seeks to fill an identified gap in performance or product cost (technology pull) Radical innovation - leads to widespread change and a whole new technology, and arises from basic research (technology push) 10 August 2024 ENGINEERING DESIGN 21  Charge Coupled Device In the late 1960s Willard Boyle worked in the division of Bell Laboratories concerned with electronic devices. In late 1969, Boyle and his collaborator George Smith sat down and in a one- hour brainstorming session came up with the basic design for a new memory chip they called a charge- coupled device or CCD. The CCD worked well for storing digital data, but it soon became apparent that it had outstanding potential for capturing and storing digital images. CCD was a good digital storage device, it never became a practical storage device because it was expensive to manufacture, 10 August 2024 ENGINEERING DESIGN 22  Charge Coupled Device Various kinds of disks coated with fine magnetic particles, and finally the hard drive went on to capture the digital storage market. two space-related applications created the market pull to develop the CCD array to a point where it Magnetic disc was a practical device for digital photography. The critical issues were decreasing the size and the cost of a CCD array that captures the image. The technology advances achieved in these application areas made it possible for digital still and video cameras to become a commercial success roughly thirty years after the invention of the CCD. Digital Camera 10 August 2024 ENGINEERING DESIGN 23  Opportunity Identification In the context of product development, an opportunity is an idea for a new product. An opportunity is a product description in embryonic form, a newly sensed need, a newly discovered technology, or a rough match between a need and a possible solution. An opportunity can be thought of as a hypothesis about how value might be created Product Design DE CA ZG541 8/10/2024 24 BITS Pilani Opportunity Identification The tournament structure of the opportunity identification process. Product Design DE CA ZG541 8/10/2024 25 BITS Pilani Opportunity Identification Process We divide the opportunity identification process into six steps as follows: 1. Establish a charter. 2. Generate and sense many opportunities. 3. Screen opportunities. 4. Develop promising opportunities. 5. Select exceptional opportunities. 6. Reflect on the results and the process. Product Design DE CA ZG541 8/10/2024 26 BITS Pilani  Establish a charter. Organizations create new products to achieve goals such as growing revenues from existing customers, filling a hole in a product line, or entering new market segments. Entrepreneurs starting new organizations also have goals like creating a new product related to an area of personal interest. The innovation charter articulates these Create a physical product in the goals and establishes the boundary cat toy category that we can conditions for an innovation effort. launch to the market within Charters are closely analogous to about a year through our (although somewhat broader than) the existing retail sales channel. mission statement for a new product. Product Design DE CA ZG541 8/10/2024 27 BITS Pilani  Generate and sense many opportunities. About half of innovation opportunities are generated internally to an organization and about half are recognized from customers and other external sources Typically, the team will want to identify dozens if not hundreds of raw opportunities. Product Design DE CA ZG541 8/10/2024 28 BITS Pilani The distribution of sources of opportunities in innovation Product Design DE CA ZG541 8/10/2024 29 BITS Pilani Techniques for Generating Opportunities Follow a Personal Passion Compile Bug Lists Pull Opportunities from Capabilities Study Customers Consider Implications of Trends Imitate, but Better – Media and marketing activities of other firms. – De-commoditize a commodity. – Drive an innovation “down market.” – Import geographically isolated innovations. Mine Your Sources – Lead users – Representation in social networks. – Universities and government laboratories. – Online idea submission. Product Design DE CA ZG541 8/10/2024 30 BITS Pilani  Techniques for Generating Opportunities Follow a Personal Passion List your passions—endeavors that keep you awake with excitement—and then consider how emerging technologies, trends, and business models might influence them. Identify unmet needs that you have in connection with a personal interest. Nutrient delivery system worn during Compile Bug lists testing by the inventor, Matt Kressy Successful innovators are often chronically dissatisfied with the world around them. They notice unmet needs of users, including themselves. List (or photograph) every annoyance or frustration you encounter over a period of days or weeks and then pick the most universal and vexing ones and dream up solutions. Any problem is an opportunity. Product Design DE CA ZG541 8/10/2024 31 BITS Pilani  Techniques for Generating Opportunities Pull Opportunities from Capabilities firms achieve above-average profits by exploiting unique resources. a resource must be: Valuable. To be valuable, a resource must either allow a firm to achieve greater performance than competitors or reduce a weakness relative to competitors. Rare. Given competition, a valuable resource must be rare. Inimitable. For value and rarity to persist, a resource must not be easily imitated. Non substitutable. Even if valuable, rare, and inimitable, a resource providing advantage can’t be easily substituted. Product Design DE CA ZG541 8/10/2024 32 BITS Pilani  Techniques for Generating Opportunities Study Customers Opportunities can be identified by studying customers in a selected market segment. These studies (also called user anthropology or consumer ethnography) The Trek Lime bicycle incorporating the provide a deeper understanding of the true Shimano Coasting component group customer needs than you can obtain through surveys. Consider Implications of Trends Changes in technology, demography, or social norms often create innovation opportunities. Ubiquitous mobile telephone service, for example, enables a wide variety of information delivery services. Product Design DE CA ZG541 8/10/2024 33 BITS Pilani  Techniques for Generating Opportunities Imitate, but Better – Media and marketing activities of other firms. – De-commoditize a commodity. – Drive an innovation “down market.” – Import geographically isolated innovations. Mine Your Sources – Lead users. – Representation in social networks. – Universities and government laboratories. – Online idea submission. Dell runs a Web site IdeaStorm for soliciting innovation opportunities from customers. Product Design DE CA ZG541 8/10/2024 34 BITS Pilani  Screen Opportunities The goal of screening is simply to eliminate opportunities that are highly unlikely to result in the creation of value and to focus attention on the opportunities worthy of further investigation. The aim is not to pick the single best opportunity. Given many opportunities to be screened, the process must be relatively efficient, even at the expense of perfect accuracy For this step, a very effective screening criterion is the holistic judgment by a group of individuals of whether or not the opportunity is worthy Two methods are effective approaches to screening: Web-based surveys and workshops with “multivoting.” Both methods rely on the independent judgments of a group of people. You can also use an in-person workshop to evaluate opportunities. In a format we have used frequently, each participant presents one or more opportunities to the group. Product Design DE CA ZG541 8/10/2024 35 BITS Pilani  Develop Promising Opportunities Rarely does it make sense to bet on a single opportunity. Too much uncertainty clouds the prospects for success. After screening opportunities, the team should invest modest levels of resources in developing a few of them. At a minimum, an opportunity passing the initial screen warrants an Internet search for existing solutions and an informal discussion with a few potential customers. In developing promising opportunities, the goal is to resolve the greatest uncertainty surrounding each one at the lowest cost in time and money. One way to structure this step is to list the major uncertainties regarding the success of each opportunity, the tasks you could take to resolve the uncertainties, and the approximate cost of each task. Product Design DE CA ZG541 8/10/2024 36 BITS Pilani  Select Exceptional Opportunities Once a handful of opportunities have been developed with modest investment of resources, enough uncertainty should be resolved in order to pick the exceptional few opportunities that warrant a significant investment in product development. Product Design DE CA ZG541 8/10/2024 37 BITS Pilani  Select Exceptional Opportunities Real-Win-Worth-it, summarizes the three questions an organization should attempt to answer when screening opportunities: Is the opportunity real? Is there a real market that you can serve with the product? Criteria here include market size, potential pricing, availability of technology, and the likelihood the product can be delivered in the required volume at the required cost. Can you win with this opportunity? Can you establish a sustainable competitive advantage? Can you patent or brand the idea? Are you more capable of executing it than competitors? For example, do you have superior engineering talent in this field? Is the opportunity worth it financially? Do you have the resources needed (financial and developmental) and are you confident that the investment will be rewarded with appropriate returns? Product Design DE CA ZG541 8/10/2024 38 BITS Pilani  The Product Planning Process The product plan identifies the portfolio of products to be developed by the organization and the timing of their introduction to the market. This plan divides projects into four categories: new platforms, derivatives of existing platforms, product improvements, and fundamentally new products. Product plans are developed with the company’s goals, capabilities, constraints, and competitive environment in mind. Product Design DE ZG541 BITS 8/10/2024 39 Pilani  Four Types of Product Development Projects Product development projects can be classified as four types: New product platforms: This type of project involves a major development effort to create a new family of products based on a new, common platform. The new product family would address familiar markets and product categories. Derivatives of existing product platforms: These projects extend an existing product platform to better address familiar markets with one or more new products. Incremental improvements to existing products: These projects may only involve adding or modifying some features of existing products in order to keep the product line current and competitive. Fundamentally new products: These projects involve radically different product or production technologies and may help to address new and unfamiliar markets. Such projects inherently involve more risk; however, the long-term success of the enterprise may depend on what is learned through these important projects. Product Design DE CA ZG541 8/10/2024 40 BITS Pilani The Product Planning Process To develop a product plan and project mission statements, we suggest a five-step process: Identify opportunities. Evaluate and prioritize projects. Allocate resources and plan timing. Complete pre-project planning. Reflect on the results and the process. Product Design DE CA ZG541 8/10/2024 41 BITS Pilani Step 1: Identify Opportunities The planning process begins with the identification of product development opportunities. This step can be thought of as the opportunity funnel because it brings together inputs from across the enterprise. Product Design DE ZG541 BITS 8/10/2024 42 Pilani Step 2: Evaluate and Prioritize Projects If managed actively, the opportunity funnel can collect hundreds or even thousands of opportunities during a year. Some of these opportunities do not make sense in the context of the firm’s other activities, and in most cases, there are simply too many opportunities for the firm to pursue at once. The second step in the product planning process is therefore to select the most promising projects to pursue. Product Design DE ZG541 BITS 8/10/2024 43 Pilani Competitive Strategy An organization’s competitive strategy defines a basic approach to markets and products with respect to competitors. The choice of which opportunities to pursue can be guided by this strategy. Most firms devote much discussion at senior management levels to their strategic competencies and the ways in which they aim to compete. Several strategies are possible, such as: Technology leadership: To implement this strategy, the firm places great emphasis on basic research and development of new technologies and on the deployment of these technologies through product development. Cost leadership: This strategy requires the firm to compete on production efficiency, either through economies of scale, use of superior manufacturing methods, low-cost labor, or better management of the production system. Design for manufacturing methods are therefore emphasized in the product (and process) development activities under this strategy. Customer focus: To follow this strategy, the firm works closely with new and existing customers to assess their changing needs and preferences. Carefully designed product platforms facilitate the rapid development of derivative products with new features or functions of interest to customers. This strategy may result in a broad product line featuring high product variety in order to address the needs of heterogeneous customer segments. Imitative: This strategy involves closely following trends in the market, allowing competitors to explore which new products are successful for each segment. When viable opportunities have been identified, the firm quickly launches new products to imitate the successful competitors. A fast development process is essential to effectively implement this strategy. Product Design DE ZG541 BITS 8/10/2024 44 Pilani  Market Segmentation Customers can be usefully thought of as belonging to distinct market Location segments Dividing a market into segments allows the firm to consider the behavior actions of competitors and the patterns strength of the firm’s existing products with respect to each well defined group of customers. By mapping competitors’ products and the firm’s own products onto segments, the firm can assess Lifestyle, which product opportunities best attitude, address weaknesses in its own Age, interests product line and which exploit Gender, weaknesses in the offerings of Income competitors. Product Design DE ZG541 BITS 8/10/2024 45 Pilani Technological Trajectories The product planning decision is when to develop a product with a new technology, as opposed to developing another product based on existing technology. Technology S-curves are a conceptual tool to help think about such decisions. Product Design DE ZG541 BITS 8/10/2024 46 Pilani Case Study - Renault Duster This case study looks at what contributed to the car's success. Renault Duster Source: https://www.businesstoday.in/magazine/case-study Product Design DE ZG541 BITS 8/10/2024 47 Pilani Case Study - Renault Duster When French automotive giant Renault first entered India through a joint venture with Mahindra & Mahindra, it placed high hopes on its maiden product offering Logan - a mid-sized sedan launched in 2007. But the car with its dated looks and high pricing failed to strike a chord with Indian consumers. Such was the scale of the failure that it ended up killing the joint venture in 2010. Source: https://www.businesstoday.in/magazine/case-study Product Design DE ZG541 BITS 8/10/2024 48 Pilani Case Study - Renault Duster Renault desperately needed a "volume driver" to shore up its operations. It identified a gap in the SUV segment. "There were SUVs costing Rs 20 lakh and above manufactured by global players and those priced from Rs 6 lakh to Rs 10 lakh produced by Indian companies. The company launched the Duster priced between Rs 8 lakh and Rs 12 lakh in July 2012. The Duster's success was such that Renault had to triple production within months of its launch from seven per hour to 20 per hour. Source: https://www.businesstoday.in/magazine/case-study Product Design DE ZG541 BITS 8/10/2024 49 Pilani Case Study - Renault Duster How did a predominantly European car win the hearts and minds of difficult Indian customers? The company went back to the drawing board to understand the Indian customer. It identified a focus group of about 200 people whose profile matched the potential buyer of the Duster. It then short-listed 30 families from this focus group across five Indian cities for an ethnographic study spread over two months. During this period members of the product development team lived with their target customers to observe them, understand their lives and needs. They also spent time with the customers to know what they liked and did not like about their vehicles. Source: https://www.businesstoday.in/magazine/case-study Product Design DE ZG541 BITS 8/10/2024 50 Pilani Case Study – Indian Customer? The study threw up 41 modifications that the European Duster needed. (Guerin says the exercise enabled the company to understand what a car should have to meet an Indian customer's needs). "We understood that a critical purchasing factor of a car in India is the exterior design," "People loved an SUV with rugged looks that stood out in a crowd, but at the same time wanted it to operationally perform like a sedan - easy to drive and offering good fuel efficiency.“ The study revealed that Indian consumers liked a strong dose of chrome on their cars, especially the exterior. They liked body-coloured bumpers. Inside the car they preferred a dual-tone interior, and wanted the switches for power windows on the door rather than in the central console. Indians preferred inclined seats for greater comfort. Rear air-conditioning was critical and so was the armrest, a mobile charger and a reading light. Some storage space was also welcomed. Source: https://www.businesstoday.in/magazine/case-study Product Design DE ZG541 BITS 8/10/2024 51 Pilani  Case Study The European Duster did not have these attributes. Renault made several changes in the car to suit Indian conditions. These included reinforcing the suspension to tackle rough Indian roads and offering a higher ground clearance. It added more brackets to the car's doors as they tended to be used roughly. The engine was tuned to meet the quality of the fuel in India and deliver high efficiency of at least 20 km per litre. The tuning of the engine was done in Paris; the company shipped diesel from India to get the tuning right. Source: https://www.businesstoday.in/magazine/case-study Product Design DE ZG541 BITS 8/10/2024 52 Pilani Customer clinic In early 2011 the company conducted a customer clinic in New Delhi to validate its learning. It put the prototype of the European Duster, after the necessary changes, alongside rival cars in a price range of Rs 7 lakh to Rs 12 lakh, and asked a few potential customers and car experts for their views. All of them had to also sign a confidentiality agreement with Renault. "What we got was a 'wow'," recalls Guerin. "The feedback we got showed us that we were on the right track." Product Design DE ZG541 BITS 8/10/2024 53 Pilani  ? Product Design DE CA ZG541 8/10/2024 54 BITS Pilani Thank You References: ▪ George E. Dieter, Linda C. Schmidt, "Engineering Design", 6/e (Indian Edition), McGraw Hill Education (India) Pvt. Ltd., New Delhi, 2021. ▪ David G. Ullman, “The Mechanical Design Process”, McGraw-Hill Inc., Singapore, 1992 ▪ Kevin Otto and Kristin Wood, “Product Design: Techniques in Reverse Engineering and New Product Development”, 1/e, Pearson Education, New Delhi, 2004. ▪ N. J. M. Roozenburg, J. Eekels, Roozenburg N. F. M., “Product Design: Fundamentals and Methods”, John Wiley and Sons, 1995 10 August 2024 55