Transcript Slide 1

The Product Development Process
Activity
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Product Development Process Overview
The product development process is a procedure by which an idea may be
turned into a real product which can be manufactured and eventually sold to a
customer.
The product development process is broken down into the following six steps
called phases:
Phase 1: Proposal
Phase 2: Investigation
Phase 3: Lab Prototype
Phase 4: Production Prototype
Phase 5: Pilot Run
Phase 6: Manufacturing Release
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Product Development Process Overview (continued)
The people involved in these phases come from different departments in a
company. The departments are as follows:
Marketing
Finance
Engineering
Quality
Manufacturing
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Case Study
We will create a company that manufactures and sells portable fuel containers.
Marketing has determined that we need to offer a specialized fuel container that
targets lawn tractors, off-road motorcycles and personal watercraft. After talking
with potential customers, marketing has decided that the fuel container must have
the following features:
Five(5)-gallon capacity
Automatically opening and closing fuel cap
Automatic venting
Automatic fuel stop when tank is full
Will not leak when tipped over
Child-proof fuel cap
Meets current EPA standards
The following activities will lead you through some of the tasks required to turn this marketing request into a real product.
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Phase 1: Proposal Phase – Explanation
Program Definition
Objective:
To create/propose a new product idea
Participants:
Marketing, Finance, Engineering, Quality, Manufacturing
Sample Activities:
Definition of program/product requirements
Checkpoint meeting
Sample Deliverables:
Product Proposal
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Phase 1: Proposal Phase – Key Terms
Proposal
A proposal is a plan prepared by the product development team that outlines the
new product idea, customers, and estimates of the cost and time required to
complete a project. The engineering, marketing, manufacturing, quality and
finance departments are involved in preparing the proposal.
Product Requirements
Product requirements are the features and cost targets that the product must
meet. The product requirements are obtained by marketing research and are
defined in the Market Requirements Document. It is used by everyone involved in
the development process to direct the product design.
Market Requirements Document (MRD)
The market requirements document (MRD) outlines the product requirements. The
marketing department prepares the MRD based on the needs of the end user. The
MRD is used as a reference for all members of the product development team to
ensure that the most important requirements of the product are met. The MRD will
direct how the engineers develop the product.
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Phase 1: Proposal Phase – Key Terms (continued)
Concurrent Product Development
Concurrent product development is the process whereby departments are
involved in the product development process from beginning to end. Concurrent
product development saves time and money. It requires regular review meetings in
which the marketing, finance, engineering, quality, and manufacturing departments
are kept up to date with one another’s progress.
Front-End Research
Front-end research is research done by the marketing group to determine the type
of product customers might buy, what features it must have, and how much
customers would be willing to pay for it. The front-end research results will be
used to help create the MRD.
Review Meeting
A meeting involving all of the departments responsible for the development of the
product is called a review meeting. The group reviews the work completed and
discusses any issues which may affect the development of the product.
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Phase 1: Proposal Phase – Activity
Marketing Activity
Summary:
One of the responsibilities of the marketing department during the proposal
phase is to decide how many units will be sold and what the target price will be.
This information is used to determine how profitable the product will be and
which manufacturing methods will be used.
Activity:
Using the following questions, determine how many units will be sold and, if
possible, the target retail price:
1. Who is the target customer?
2. How much are they willing to pay for this product?
3. Who are the competitors and what do similar products sell for?
4. How many similar units are sold annually?
5. How many products will we sell?
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Phase 2: Investigation Phase – Explanation
Design Concept Cycle
Objective:
To investigate the engineering specifications of the product and verify that they
can be achieved.
Participants:
Marketing, Finance, Engineering, Quality, Manufacturing
Sample Activities:
System architecture
Simulation
Subsystem modeling and analysis
Cross-functional design review
Checkpoint meeting
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Phase 2: Investigation Phase – Explanation (continued)
Sample Deliverables:
Documented feedback from the customer, manufacturing, safety and regulatory
Breadboard designs
Profitability study
Updated schedule and plan
Team assignments (renewed/revised) for the next phase
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Phase 2: Investigation Phase – Key Terms
Feasibility Study
Research done by the engineering department to determine if the product
requirements can be met is a feasibility study. If the engineers determine that the
requirements cannot be met, or if the cost of meeting them is excessive, the
engineering and marketing departments must work together to adjust the product
requirements. The finance department may also be involved and decide at any time
that the project is not worth pursuing.
Back-of-the-Napkin Sketch
A rough sketch of a design concept is sometimes called a back-of-the-napkin
sketch. It is usually prepared by an engineer to communicate an idea. A back-of-thenapkin sketch is not necessarily drawn on a napkin, but the name suggests the
informal and preliminary nature of the sketch.
Bread Board Design
A bread board design is a preliminary functional prototype created by the
engineering department to test a concept's viability. A bread board is not necessarily
intended to meet all of the product requirements or to look like the end product.
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Phase 2: Investigation Phase – Key Terms (continued)
System Architecture
A conceptual overview of what elements are needed in a system and how they will
fit together is called the system architecture. It is performed by the engineering
department and will be reviewed by the marketing and manufacturing
departments.
Ergonomics Study
An ergonomics study is a design study involving the interaction of humans with a
product. The engineers who design keyboards, door handles, telephones and
other products need to consider the human body and behaviors to ensure that the
product can be used easily, safely, and comfortably.
Profitability Study
A profitability study examines the costs and benefits of developing a product. The
finance department will consult with the marketing, engineering, and
manufacturing departments to determine the profitability of a product. As the
development process proceeds and more information becomes available, the
finance department will reassess the profitability of the product.
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Phase 2: Investigation Phase – Activity
Finance Activity
Summary:
The most important consideration for a company developing a new product is
profitability. The finance department must weigh the costs and benefits of
proceeding with the product development process. It will try to determine
whether or not this product will be a good investment.
Activity:
Use the following questions to try to determine whether or not the product will be
a good investment for the company.
1. What are some of the costs associated with developing the product?
2. What are some of the costs associated with manufacturing the product?
3. What are some of the costs associated with selling the product?
4. Based on the marketing information determined in the proposal phase, what is
the gross annual revenue?
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Phase 3: Lab Phase, Part 1 – Explanation
Engineering Prototype Cycle
Objective:
To develop and document a product that meets customer, engineering,
manufacturing, quality, and business specifications.
Participants:
Marketing, Finance, Engineering, Quality, Manufacturing
Sample Activities:
Functional prototypes
Design verification testing
Safety regulatory compliance testing
Cross-functional design review
Checkpoint meeting
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Phase 3: Lab Phase Part 1 – Explanation (continued)
Sample Deliverables:
Part and assembly databases
Bill of materials
Marketing literature
Product manuals
Schedule update
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Phase 3: Lab Phase, Part 2 – Explanation
Lab Prototype Builds
Description:
Prototype builds are designated as LP1, LP2, LP3, etc. with the number of builds
(and quantity of parts/units) determined during the proposal and investigation
stages based on the complexity of the program. The lab prototype builds are
executed during the lab phase of the process.
Objectives:
To verify the design assumptions (including any unit testing required).
To verify proper operation of all hardware, software, and mechanical systems.
To examine the product for manufacturability and assembly optimization.
To examine the product for cost optimization and common part utilization.
To provide units based on customer requirements.
To confirm manufacturing target costs have been met.
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Phase 3: Lab Phase; Key Terms
Lab Prototype
A preliminary build of a product to make sure that it meets the product
requirements is a lab prototype. The engineering department usually oversees the
design, fabrication and testing of a lab prototype.
Bill of Materials (BOM)
A list created by the engineering department which specifies the parts and
hardware needed to assemble a product is a bill of materials. The manufacturing
department will use the BOM when they are looking for suppliers.
Design for Manufacturability (DFM)
Design for manufacturability is a method used by the engineers to ensure that the
product can be manufactured in a cost-effective way. The manufacturing
department can review the design and provide feedback on its manufacturability.
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Phase 3: Lab Phase – Activity
Engineering Activity
Summary:
Engineers must create a prototype product which meets customer specifications at
the given price point. The first thing they need to do is to brainstorm possible
solutions.
Activity:
Engage in a brainstorming session and try to come up with at least five(5) possible
designs for a fuel container filler cap. Vote to see which design solution the class
thinks might be the best. The design must meet the following specifications:
1. The nozzle opens and closes without reconfiguring.
2. It will not leak when tipped over.
3. It must have a filler cap which is child-proof.
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Phase 4: Production Prototype Phase, Part 1 – Explanation
Manufacturing Prototype Cycle
Objective:
To design, test, and verify all in-house manufacturing and external supplier
processes required to build the product at production volumes.
Participants:
Marketing, Finance, Engineering, Quality, Manufacturing
Sample Activities:
Fabrication and assembly processes checked
Definition and implementation of assembly lines and processes
Checkpoint meeting
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Phase 4: Production Prototype Phase, Part 1 – Explanation (cont’d)
Manufacturing Prototype Cycle:
Sample Deliverables:
Manufacturing plan
Final production costs
First article inspection reports
Completed tooling
Completed product manuals
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Phase 4: Production Prototype, Part 2 – Explanation
Production Prototype Build
Description:
Prototype builds are designated as PP1, PP2, PP3, etc. with the number of
builds (and quantity of parts/units) determined during the proposal and
investigation stages based on the complexity of the program. The Production
Prototype build is performed using all established internal and external sources.
Sample Objectives:
To test and verify all manufacturing tooling.
To test and verify all processes that will be required to build production volumes.
To perform qualification testing on finished product.
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Phase 4: Production Prototype Phase – Key Terms
First Article Inspection
A first article inspection is a check performed by the quality department to ensure
that the first production parts meet the specifications of the design.
Production Volume
The number of products that will typically be built when the product is in
production is called the production volume. The marketing, manufacturing, and
finance departments will determine the production volume.
Tooling
Tooling is special tools that are needed to manufacture a product. Certain
manufacturing processes require special tooling, such as mold-injected plastics,
aluminum extrusions, metal die-casts and composites. Additionally, special tooling
may be required for manufacturing assembly processes.
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Phase 4: Production Prototype Phase – Key Terms (continued)
Production Prototype
A production prototype is a manufacturing build of the product that tests the
manufacturing systems.
Supplier
A supplier is an outside company which provides parts or services in the
production of a product. The manufacturing department oversees the selection of
suppliers based on their ability to provide parts or services that meet the design
specifications at a competitive price.
In-House Manufacturing
A manufacturing process which uses a company's own resources is called inhouse manufacturing. Many companies today have moved away from in-house
manufacturing in favor of using external suppliers.
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Phase 4: Production Prototype Phase – Activity
Manufacturing Activity
Summary:
The production prototype phase helps the manufacturing department build and
test their manufacturing system. They will also try to reduce the cost and time to
manufacture the product during this phase.
Activity:
Brainstorm five(5) ways to reduce assembly time. Use the following information
to discover where to begin:
1. Using a stopwatch, record the time required to assemble the product.
2. Marketing predicts that you will have to build 10,000 units per month. Given
that one person works 40 hours per week, decide how many people you will
need to hire to build this product at the required volumes.
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Phase 5: Pilot Phase – Explanation
Pre-Production Cycle
Objective:
To perform final manufacturing system qualification testing and test/fill distribution
pipeline.
Participants:
Marketing, Finance, Engineering, Quality, Manufacturing
Sample Activities:
Volume product build
Distribution testing and verification
Supply chain testing and verification
Checkpoint meeting
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Phase 5: Pilot Phase – Explanation (continued)
Sample Deliverables:
Distribution test report
Supply chain test report
Completed checkpoint signoff sheet
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Phase 5: Pilot Phase – Key Terms
Distribution Pipeline
A distribution pipeline is the chain of organizations or companies responsible for
the distribution of the product to the end user. This includes shipping/receiving,
trucking companies, distributors and retailers.
Supply Chain
The group of organizations or companies responsible for supplying parts or
products to the manufacturer is called a supply chain.
Pre-Production Build
A pre-production build is a final test-run performed to verify manufacturing
consistency, supply chains, and distribution systems. It is the culmination of the
efforts that lead up to a full Manufacturing Release of the product.
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Phase 5: Pilot Phase – Activity
Quality Activity
Summary:
The quality department is responsible for making sure that the product is made
correctly. They measure sample parts for dimensional accuracy and perform tests
on completed assemblies. If any problems are discovered the quality department
will determine how to correct it.
Activity:
Test the functionality of the product to decide if it will work properly for the
customer.
1. Does the valve open and close reliably?
2. Fill the jug to the top with water and install the cap.
3. Turn the jug upside down and check for leaks.
4. Using a stopwatch, record the time the jug takes to empty. Does it take less
than one minute?
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Phase 6: Manufacturing Release – Explanation
Production
Objective:
To release the product to manufacturing for volume production.
Participants:
Marketing, Finance , Engineering, Quality, Manufacturing
Sample Activities:
Transfer all product databases to production control
Manufacturing Release meeting
Sample Deliverables:
Schematics
Part and assembly databases
Bill of materials
Product manual databases
Release meeting signoff sheet
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Phase 6: Manufacturing Release – Key Terms
Marketing Literature
Marketing literature is material which announces or promotes a product. It includes
brochures, flyers and advertisements.
Company Product List
A company product list is a list of products that a company sells and the prices.
Product Support
Product Support is a method a company uses to answer the customer’s questions
and to help them resolve problems that they may have with the product. It can
include phone support, web site support, and utilizing retail outlets.
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Phase 6: Manufacturing Release – Activity
Administrative Activity
Summary:
The product development process has been completed and all related documents
are ready to be handed over to the manufacturing department. The company’s
owner or general manager will meet with department heads and project
managers to confirm that everyone involved is ready to begin production.
The company’s owner or general manager may hold a site-wide meeting to build
excitement and cooperation among employees. Presentations may be made
describing the new product, the company’s hopes for it in the marketplace, and
the importance of the employees in making the product a success.
Some activities beyond the product development process:
1. Product added to company product list
2. Distribution of marketing literature
3. Product support comes on line
This work was funded through the California Community College Chancellor’s Office grant #07-171-002 (SB1133) and the Sierra College CTE Community
Collaborative (Sierra STEM) project.
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