New Product Development

The Need for New Product Development

1) 2) 3) 4) 5) Requirement of customers Market competition New ideas Removal of problems with previous products New technology advantages and failure of previous products 6) Shorter product lifecycles 7) Increasing technological capabilities 8) Increasingly competitive Markets 9) Grow brand loyalty 10) Diversify into growth areas 11) Increase Market share 12) Production and Research and Development Strategies
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12 Steps of New Product Development

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) Initial Screen Preliminary Market Assessment Preliminary Technical Assessment Detailed Market Study Predevelopment Business and Financial Analysis Product Development In-house Product Tests Customer Product Tests Trial Sell Pre-commercialization Business Analysis Production / Operations Start-up Market Launch
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New Product Development

New Product Development

New Product Development

New Product Development

What are they selling today?

What are they selling today?

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3M
NOTABLE PRODUCTS
Scotch-Brite Brand Cleaning Products Scotch Brand Tapes Nexcare Brand Skincare Products Scotchgard Brand Fabric Protection Microtouch Brand Touch Screens FastBond Brand Adhesives Filtrete Brand Air Filters O-Cel-O Brand Sponges Post-it Brand Notes

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A New Idea
3Ms new Post-it Flag Highlighter

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Stage-Gate Model
A Stage-Gate model, also referred to as a phase-gate process, is a Project Management technique in which an initiative or project (e.g. product development, process improvement, business change, etc.) is divided into stages (or phases) separated by gates.

Product innovation begins with an idea and ends with the successful launch of a new product. The steps between these points can be viewed as a dynamic process. StageGate divides this process into a series of activities (stages) 14

Stage

Activities: The work the project leader and the team must undertake based upon their project plan. Integrated analysis: The project leader and teams integrated analysis of the results of all of the functional activities, derived through cross-functional interaction. Deliverables: The presentation of the results of the integrated analysis, which must be completed by the team for submission to the gate.

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Gates

Deliverables: These are defined in advance and are the results of actions from the preceding stage. A standard menu of deliverables is specified for each gate. Criteria: What the project is judged against in order to make the go/kill and prioritization decisions. These criteria are usually organized into a scorecard and include both financial and qualitative criteria. Outputs: Results of the gate review. Gates must have clearly articulated outputs including: a decision (go/kill/hold/recycle) and a path forward
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Benefit of Stage-Gate Model

1) 2) 3) 4) 5) 6) Accelerates speed-to-market Increases likelihood of product success Introduces discipline into an ordinarily chaotic process Reduces re-work and other forms of waste Improves focus via gates where poor projects are killed Achieves efficient and effective allocation of scarce resources 7) Ensures a complete process no critical steps are omitted

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Introduction
Products follow a life cycle products can be manufactured goods or services Competition in the market is forcing a decrease in new product time-to-market The time between the inception of product idea and its instantiation is the New Product Development (NPD) Cycle Time (CT).

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Introduction (cont.)
Benefits of a shorter NDP CTs Increased competitive advantage from faster response time to market demands Increased profits from premium product prices Increased organization effectiveness and productivity from improved cross functional communication

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Introduction (cont.)
Challenges to NDP CT reduction
Process and organization strategy alignment Organization acceptance of new NDP processes Present organization skill sets

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NPD CT Approach
Nine 1. 2. 3. 4. 5. 6. 7. 8. 9. NPD CT reduction approaches Supplier involvement Lead user involvement Speeding up activities & tasks Reduction of parts and components Training and rewarding employees Implementation of support systems and technique Stimulating inter-functional cooperation Emphasis on customer Simplification of organizational structure

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NPD CT Approach (cont.)

Two benefits linked to the application of NPD CT reduction approaches are:
1. Increased product development speed 2. Increased product profitability

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NPD CT Approach (cont.)

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Types of Prototypes
A Prototype is an early sample or model built to test a concept or process or to act as a thing to be replicated or learned from. Two dimensions Physical vs. Analytical Comprehensive vs. Focused

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Physical vs. Analytical Prototypes

Physical Prototypes Tangible approximation of the product. May exhibit un-modeled behavior. Some behavior may be an artifact of the approximation. Often best for communication. Analytical Prototypes Mathematical model of the product. Can only exhibit behavior arising from explicitly modeled phenomena. (However, behavior is not always anticipated. Some behavior may be an artifact of the analytical method. Often allow more experimental freedom than physical models.

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Focused vs. Comprehensive Prototypes

Focused Prototypes Implement one or a few attributes of the product. Answer specific questions about the product design. Generally several are required. Comprehensive Prototypes Implement many or all attributes of the product. Offer opportunities for rigorous testing. Often best for milestones and integration.

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Prototype Uses
Learning
Will it work? How well does it meet the customer needs?

Communication
Within the company With customers, vendors, and suppliers

Integration
Subsystems and components work together

Milestones
Product achieved a desired level of functionality
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Milestone Prototypes
Alpha Prototypes assess whether the product works as intended Beta Prototypes assess reliability and to identify any bugs in the product Preproduction Prototypes first products produced by the entire production process

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Types of Prototypes
Physical
ball support prototype alpha beta prototype prototype final product

Focused

trackball mechanism linked to circuit simulation Comprehensive

simulation of trackball circuits

not generally feasible

equations modeling ball supports

Analytical 29

Advantages of Prototyping
May provide the proof of concept necessary to attract funding Early visibility of the prototype gives users an idea of what the final system looks like Encourages active participation among users and producer Enables a higher output for user Cost effective (Development costs reduced). Increases system development speed Assists to identify any problems with the efficacy of earlier design, requirements analysis and coding activities Helps to refine the potential risks associated with the delivery of the system being developed Various aspects can be tested and quicker feedback can be got from the user Helps to deliver the product in quality easily User interaction available during development cycle of prototype
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Disadvantages of Prototyping
Producer might produce a system inadequate for overall organization needs User can get too involved whereas the program can not be to a high standard Structure of system can be damaged since many changes could be made Not suitable for large applications Over long periods, can cause loss in consumer interest and subsequent cancellation due to a lack of a market (for commercial products) May slow the development process, if there are large number of end users to satisfy.

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Rapid Prototyping Technique

Selective laser sintering: Selective laser sintering is an additive manufacturing technique that uses a high power laser (for example, a carbon dioxide laser) to fuse small particles of plastic, metal (Direct Metal Laser Sintering), ceramic, or glass powders into a mass representing a desired 3-dimensional object. The laser selectively fuses powdered material by scanning cross-sections generated from a 3-D digital description of the part (for example from a CAD file or scan data) on the surface of a powder bed. After each cross-section is scanned, the powder bed is lowered by one layer thickness, a new layer of material is applied on top, and the process is repeated until the part is completed.

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Rapid Prototyping Technique

Fused deposition modeling: Fused deposition modeling (FDM) is an additive manufacturing technology commonly used for modeling, prototyping, and production applications. FDM works on an "additive" principle by laying down material in layers. A plastic filament or metal wire is unwound from a coil and supplies material to an extrusion nozzle which can turn on and off the flow. The nozzle is heated to melt the material and can be moved in both horizontal and vertical directions by a numerically controlled mechanism, directly controlled by a computer-aided manufacturing (CAM) software package. The model or part is produced by extruding small beads of thermoplastic material to form layers as the material hardens immediately after extrusion from the nozzle.
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Rapid Prototyping Technique

Stereolithography: Stereolithography (SL) is an additive manufacturing technology for producing models, prototypes, patterns, and in some cases, production parts. Stereolithography is an additive manufacturing process using a vat of liquid UV-curable photopolymer "resin" and a UV laser to build parts a layer at a time. On each layer, the laser beam traces a part cross-section pattern on the surface of the liquid resin. Exposure to the UV laser light cures, or, solidifies the pattern traced on the resin and adheres it to the layer below. After a pattern has been traced, the SL's elevator platform descends by a single layer thickness, typically 0.05 mm to 0.15 mm (0.002" to 0.006"). Then, a resin-filled blade sweeps across the part cross section, re-coating it with fresh material. On this new liquid surface, the subsequent layer pattern is traced, adhering to the previous layer. A complete 3-D part is formed by this process. After building, parts are cleaned of excess resin by immersion in a chemical bath and then cured in a UV oven.
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Rapid Prototyping Technique

Laminated object manufacturing: Laminated object manufacturing (LOM) is a rapid prototyping system developed by Helisys Inc. (Cubic Technologies is now the successor organization of Helisys) In it, layers of adhesive-coated paper, plastic, or metal laminates are successively glued together and cut to shape with a knife or laser cutter. The process is performed as follows: 1. Sheet is adhered to a substrate with a heated roller. 2. Laser traces desired dimensions of prototype. 3. Laser cross hatches non-part area to facilitate waste removal. 4. Platform with completed layer moves down out of the way. 5. Fresh sheet of material is rolled into position. 6. Platform moves up into position to receive next layer. 7. The process is repeated.
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Rapid Prototyping Technique

Electron beam melting: Electron beam melting (EBM) is a type of additive manufacturing for metal parts. It is often classified as a rapid manufacturing method. The technology manufactures parts by melting metal powder layer per layer with an electron beam in a high vacuum. Unlike some metal sintering techniques, the parts are fully dense, void-free, and extremely strong. This solid freeform fabrication method produces fully dense metal parts directly from metal powder with characteristics of the target material. The EBM machine reads data from a 3D CAD model and lays down successive layers of powdered material. These layers are melted together utilizing a computer controlled electron beam. In this way it builds up the parts. The process takes place under vacuum, which makes it suited to manufacture parts in reactive materials with a high affinity for oxygen. The melted material is from a pure alloy in powder form of the final material to be fabricated (no filler). For that reason the electron beam technology doesn't require additional thermal treatment to obtain the full mechanical properties of the parts. That aspect allows classification of EBM with LSM where competing technologies like SLS and DMLS require thermal treatment after fabrication. Comparatively to SLS and DMLS, EBM has a generally superior build rate because of its higher energy density and scanning method.

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Rapid Prototyping Technique

3D printing: 3D printing is a form of additive manufacturing technology where a three dimensional object is created by successive layers of material. 3D printers are generally faster, more affordable and easier to use than other additive manufacturing technologies. 3D printers offer product developers the ability to print parts and assemblies made of several materials with different mechanical and physical properties in a single build process. Advanced 3D printing technologies yield models that closely emulate the look, feel and functionality of product prototypes.

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VA / VE
In 1961, Lawrence D Miles in his book 'Techniques of Value Analysis Engineering' defined Value Analysis as "an organized creative approach which has its purpose the efficient identification of unnecessary cost i.e. cost which provides neither quality nor use nor life nor appearance nor customer features." VA is also defined as application of recognized techniques to identify the functions of a product! or service and provide those functions at the lowest possible cost. Value Analysis is a standardized, multi - disciplined team approach that identifies the lowest cost way and ensures the highest worth to reliably accomplish the functions of a product, process or service. Value analysis assesses product functions and value to cost ratios, and explores opportunities for reduction.

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Traditionally Value Analysis (VA) is used to describe the application of the 'techniques to an existing product or services or after the fact. Value Engineering (VE) has been used to refer to the design stage or before the fact. Value Engineering (VE) approach is used for new products, and applies the same principles and techniques to pre-manufacturing stages such as concept development, design and prototyping. Value Analysis and Value Engineering (VE) is a powerful Change Management and Problem Solving' tool with over a century of worldwide application track record. VE is used to create functional breakthroughs by targeting value mismatches during product, process, and project design.

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How is VA different from VE ?

Value Analysis process attacks unnecessary costs and is thus one of the most effective ways to increase an organization's profitability. However that is only doing half the job. A truly effective value improvement program cannot only reduce costs, but also improve operations and product performance. The VA approach can be effectively used to analyze existing products or services offered by manufacturing companies and service providers alike. The VA / VE methodology involves function analysis and everything has a function. Therefore the methodology has universal application. Value Analysis / Value Engineering can be applied with equal success to any cost generating areas.

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