Transcript Developing a New Product

Developing a New
Product
Dr. Omer L Hageniers, P Eng.
February 2012
© 2011 MSCI Limited
Developing a New Product
What is the Process?
1st you need a PLAN.
Idea
To
Product
Developing a New Product
Product Development Needs:
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A Product Concept
Skilled, Qualified Staff
Necessary Prototype Materials
Resources – Facility, $s, etc.
A Defined Customer Need to Fulfill
A Market
Sales Channels (Access to the Market)
A Development Plan
Developing a New Product
So; You Want to Develop a New
Product.
Why? How? When?
The Answers to These Three Questions
are Very Important and Must be
Answered Before You Start.
Developing a New Product
Why Develop a New Product?
Potential Answers to This Question Include:
My Competition has One of These!
The World Needs This Product!
I Have a Great Idea!
It’s Going to Sell Millions!
We Have the Cash to Spend!
It’s Part of Our Strategic Plan!
Developing a New Product
If Your Answer is Anything Other Than
It’s Part of Our Strategic Plan!
You Had Better Get Started on That Strategic Plan.
All of the Other Possible Answers Could be Part of
Your Strategic Plan; But if You do Not Have a
Strategic Plan You Will Never Know.
Developing a New Product
Strategic Planning
Mission &
Objectives
Who are You & What do You Want to Do?
Environmental
Scan
Regulations, Competition, Economy, Market Size, Etc.
Strategy
Formulation
A Good Strategic Planning
Process Requires That You Look at All
of The Possibilities for Your Business.
A Good Guide to the Preparation of a
Strategic Plan is Provided in the
Books by Michael E. Porter (Harvard
Business School).
Plan How to Achieve Your Goals
Strategy
Implementation
Work Your Plan
Evaluation &
Control
Developing a New Product
Developing a New Product
Risk Analysis
New
Technology
Caution
Danger
Existing
Technology
Safe
Caution
Existing
Market
New
Market
Developing a New Product
Types of Products:
1) Improvement on an Existing Product (Progress)
2) Replacement of an Existing Product (Evolution)
3) A New Product in an Existing Market (Growth)
4) A New Product in a New Market (Risky)
5) A Pioneering Product (Very Risky)
6) A Commodity Product (Cost is King)
7) A Prestige Product (Image is Everything)
Developing a New Product
How to Develop a New Product.
Potential Answers to this Question Include:
Copy an Existing Competitive Product!
Adapt One of Your Existing Products!
Build a Prototype & Test it in the Market!
The Process Is Part of Our Strategic Plan!
Copy?
Adaptation?
Prototype?
Developing a New Product
Making a Product Development Plan
First Establish the Following:
• Functional Statement – What is the Product
Supposed to do?
• Design Requirements – Specification, Standards,
Safety, Production Quantity, Duty Cycle, Efficiency,
Cost, Etc.
• Evaluation Criteria – How Will You Know When
the Product is Finished?
Developing a New Product
Example:
• Functional Statement: A Small, Low Cost Toy to
Entertain Kids Under 5 Years Old
• Design Requirements: Manufacturing Cost < 5¢
per for 100,000 Units, Weight <1 Oz., Shatter
Resistant, Cannot be Swallowed or Eaten by a 5
Year Old.
Evaluation Criteria: Child Appeal Testing (>90%),
Field Trial @ a Day Care (>85%)
Developing a New Product
Create the Step by Step Plan in the Form
of a Gantt Chart
- Each Step Should Represent a Task
- Each Task Must Have an Outcome
- An Outcome can be a Deliverable or the
Achievement of a Goal
Each Task has Resources Assigned and Has its Cost
Calculated
The Cost of the Individual Tasks are Summed to get
the Total Development Cost.
Developing a New Product
Development Plan
• In Addition to the Gantt Chart, Create a
Written Document That Lays Out the
Development Plan Milestone by Milestone.
This Document Details Resources, Method,
and Objectives. Everyone Involved in the
Project Should Have Access to This Document.
It is a Roadmap Designed to get You to Your
Destination “The Product”.
• Keep All Parties to the Project Informed of
Where You are in Your Development Plan.
Monitor & Report Progress or its Lack.
Developing a New Product
Intellectual Property (IP)
• Prior To & During the Product Development
Project Make Every Effort to Identify IP and Keep
it Confidential.
• When the Time is Right, File for Patent
Protection, it is a Strategic Advantage.
• You Have Invested Heavily in Product
Development, Protect Your Investment.
• Involve a Professional in Your IP Strategy (Which
is More Than Just Patents).
Developing a New Product
Comments on Development Personnel
Do You Have Personnel With the Required Skills
on Staff?
You May Need to Add
Staff in the Form of
Consultants or
University Professors.
Specialists in Areas of
Knowledge Where
Your Own Staff Does
Not Have the Required
Skills.
Developing a New Product
The Role of Innovation in Product
Development
Innovation is an Overworked Word
What is Innovation?
My Definition is “The Incorporation of Technology
From one Area of Endeavour into Another Area.”
A Product Break-Through Requires Innovation
Inventors Trained or Experienced in MultiDisciplinary Product Development are Most Likely
to Innovate.
Developing a New Product
The Role of Product Knowledge
• If Your Company is Selling a Product in a Market
Place – You & Your Staff Have Product
Knowledge.
• This Knowledge is Crucial to Successful New
Product Development.
• This Knowledge Can Also be a Barrier to Creating
a New Product.
• A Balance Between the Existing Product
Knowledge & An Improved Product Must be
Achieved.
Developing a New Product
The Role of the Customer
• Your Customer (Existing or Potential) is the only
One Who can Judge the Value of Your Product.
• Knowing or Learning Your Customer’s Needs is
Critical to New Product Development.
• For Small Production Volume Products it is Easier
to Determine Customer Needs.
• For Mass Produced Products, Customer Needs
May be Very Diffuse and Unfocused.
Developing a New Product
When to Develop a New Product
Potential Answers to this Question Include:
When we need one!
Next Week!
When Our Strategic Plan Tells Us!
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Comments on When
• Since Product Development is a Process That Takes
Time – Development Must Start Long Before the
Need for a New Product is Clear.
• Product Development Outcomes are Often Not
Certain – Remember Thomas Edison’s Statement to
Shareholders “I have not failed. I've just found 10,000
ways that won't work.
• “We will sell no wine before its time.” The slogan of a
famous Paul Masson winery advertising campaign.
Developing a New Product
Further Comments on When
• Having a Product Development Pipeline is
Essential to the Steady Creation of New Products.
• Introduction of New Products Must be Paced to
Prevent Consumer Confusion.
• If a New product is Being Planned to Replace an
Existing Product, it Must be Discernibly Superior.
Developing a New Product
Product Development
Examples
From My Experience
Developing a New Product
New Product – New Market
New Laser Cladding Nozzle
Traditional Designs
Cannot Control Size of
Laser Spot or Powder
Spread.
Developing a New Product
2D Nozzle Testing
No Vacuum
With Vacuum
Developing a
New Product
Computer Simulation
of Particle Flow and
Pressure Distribution
at the Exit of the
Nozzle.
Developing a New Product
Product Concept was for a new Nozzle That
Used a Vacuum Port to Control Powder Spread
Government Funding was
Used – IRAP
• Computer Simulation
Study & 2D model Study
Showed Idea Worked.
• US Patent Has Been
Issued.
• Nozzle will be Integrated
With a Variable Spot Size
Laser Beam Generator.
• Idea May be Licensed.
Developing a New Product
Variable Spot Size Optics
Lens Train with Variable Collimator
Zoom Collimator
2
Lens 1
Lens 3
1
w
f
A
o
d1
dA
d2
f’
dw
ds
Custom Optics
Commercial Product
The Next Stage in This Project is to Combine the
New Nozzle with Variable Spot Size Optics.
Developing a New Product
Applications of a New Material
• To Self Limiting Heating Applications
• The New Plastic Formulation is a Conductor that
has its Resistance Increase as it Heats up –
Thereby Limiting its Upper Temperature
• This Material Is Injection Mouldable
• The Company in Question Has a License to Use
the Material
• The Company is a Seat Heater Manufacturer
New Product – Existing Market
Developing a New Product
6 Provisional US Patent Applications Were Filed
for Various Products – Including Heated Steering
Wheel.
Developing a New Product
Sensor Evolution – Goal Cost Reduction
Existing Product – Existing Market
From Generation I to Generation III
Manufacturing Cost Reduced from $5,000 to
$800 – No Performance Impact!
Continuous Improvement in Action!
Developing a New Product
Car Body Being Measured
in Vigo- Spain.
• Two Competitors –
Share Market ≈ 50/50.
• Technological
Improvements Were
Continually Carried out
By Both Companies.
• Annual In-Line Vision
Gaging Sales ≈ $20M to
$30M
Developing a New Product
Skate Sharpening Project – Consumer Product
• Company Manufactured Professional Skate
Sharpening Equipment
• Wanted to Make a Consumer Skate
Sharpening System – Issues: Cost (<$1000),
Ease of Use (Wheel Dressing Too Complicated)
New Product - Existing Market
Government R&D Funding Used - IRAP
Developing a New Product
Original Concept for Wheel Dressing Failed!
Modified Concept Worked so Well that it is Now
Retrofitted to all Company Products!
4 US Patents Have Been Granted, 2 more in the
Pending File, 2 Canadian Patents Pending
Two Whole New Shapes Invented: The FBV, and
the A-Trap
Competition is Playing Catch-Up and is Losing
Market Share
Developing a New Product
Traditional
Circular Arc
FBV
A-Trap
Two New Shapes Have Been Developed to
Replace the Traditional Circular Arc
Developing a New Product
Black Stone X-02
Consumer Portable
Ice Skate Sharpener
Spinner Magazine
In Use
Developing a New Product
Programmable Airfoil Contouring System- PACS
New Product – New Market
Only 8 Systems Were Ever Sold
• High Price Tag – $300K
• Traditional CMMs – Large
Entrenched Companies
• Development Cost Never
Recovered
Developing a New Product
D Sight™
This is a Technique for Visualizing Surface Defects
New Product – New Market
This Was a True Inspirational Discovery
3 US Patents, A Canadian Patent, A Euro Patent
Euro Patent was Contested by Siemens Based on
Prior Art. Siemens Lost Their Objection.
Developing a New Product
Total Sales Volume - $8M.
The Audit Station
Was Developed for
the Auto Industry –
45 Units Were Sold.
A Less Capable
Portable System was
Also Developed – 40
Units Sold. A
Specialized Unit was
Developed for the
Plastics Industry to
do Test Plaques. An
even more
Specialized Unit –
DIAS was Developed
for the Aircraft
Industry.
Developing a New Product
D Sight™ Images of
the Sides of two
Different Cars.
This Tool Was Very
Useful in Die TryOut Prior to
Acceptance by the
Customer.
The Ultimate Goal
was to Convert the
Image into Surface
Dimensions. This
Goal was Never
Really Achieved.
Developing a New Product
Two Pertinent Sayings for
Product Development
Programs:
Plan Your Work & Work Your Plan.
O’Toole’s Commentary: Murphy
was an Optimist.
Developing a New Product
Any Questions?