Managing the Product Development Process

EPSRC

Management of Technology Initiative

Project Number: GR/K/11468

Project Title: RE-ENGINEERING THE

TECHNOLOGY ACQUISITION

PROCESS

Document Title: Managing the Product Development Process

(Part 1: An Assessment)

Document Date: 4 May, 2005

S. Jenkins1, S. Forbes1 T.S. Durrani1 S.K. Banerjee2

University of Strathclyde

Department of Electronic and Electrical Engineering1

and

Department of Design, Manufacture and Engineering Management2

204, George Street

Glasgow, G1 1XW

CONTENTS

1. ABSTRACT 1

2. PREAMBLE 1

3. INTRODUCTION 1

4. METHODOLOGIES FOR PRODUCT DEVELOPMENT 2

4.1 PHASED DEVELOPMENT 2

4.2 STAGE / GATE MODELS 3

4.3 PRODUCT AND CYCLE-TIME EXCELLENCE - PACE 5

4.3.1 The Phase Review Process 5

4.3.2 Core Team Project Organisation 6

4.3.3 Structured Development Process 6

4.3.4 Product Development Strategy 6

4.3.5 Technology Management 8

4.3.6 Design Techniques and Automatic Development Tools 9

4.3.7 Cross Project Management 10

4.4 TOTAL DESIGN 11

5. DISCUSSION AND RECOMMENDATIONS 13

6. CONCLUSIONS 14

7. REFERENCES 15

1. ABSTRACT

Recent studies have indicated that a company's chances of success in launching new products is dependent

upon the management of the new product development process. The increasing rate of technological change coupled with increasing global competition, means that a high rate of new product development and introduction in the marketplace is vital to a company's continued growth and long-term survival. In this paper methodologies for new product development, including: (a) Phased Development, (b) Stage / Gate Models, (c) Product and Cycle-time Excellence - PACE and, (d) Total Design, are investigated. The strengths and weaknesses of each methodology are assessed and proposals for improved management of the new product development process in manufacturing are discussed.

2. PREAMBLE

The paper presents early findings from the work conducted at the University of Strathclyde on 'Re-engineering the Technology Acquisition Process', under a Project sponsored by the EPSRC 'Management of Technology' Initiative.

In order to understand the process of technology acquisition in manufacturing organisations, the project team has studied the product development process and its interactions with the requirements for technology acquisition and management. The acquisition of technology represents a strategic decision, based on the type of products that a company wishes to market in the future. The product development process provides a key link between a company's business strategy and its technology acquisition strategy.

The concepts discussed in this paper are being tested with a number of industrial organisations, and results of the study will be presented at the conference.

3. INTRODUCTION

In today's highly competitive world-wide markets, the future of all firms depends upon their ability to produce a constant stream of quality new products that meet their customers' needs. There is thus a requirement for developing a methodology that will ensure a high rate of new product success. While management initiatives, such as World Class Manufacturing and Total Quality management (TQM), have concentrated on improving the manufacturing process, the recent thrust of management activity is concerned with understanding, speeding up and improving the product development process. This thrust will prevail, in parallel with continuous improvement in manufacturing.

A major problem for management is that technologies, particularly in electronics and materials, are changing faster than ever. Thus reduction of the R&D cycle time can be an important source of competitive advantage. It is a strategy that carries a certain amount of risk. There are no cast iron guarantees of success, and investing in new products now is a considerable drain on capital, whilst the stock market still demands steadily improving quarterly earnings. Even in times of recession, however, there are some companies that still manage to continuously produce new and innovative products, that keep them ahead of the competition.

Successful companies do have elements in common, including a commitment to innovation throughout all levels of the firm, the ability to anticipate future market needs, and a managed new product development process, which is constantly used and continuously improved.

The idea that a the chances of success of a product in the market is linked to the new product development process within the firm is not in itself new. Many studies have focused on the differences between products that were successful and those which failed commercially. (Cooper, 1994) These studies discovered alarmingly high failure rates in new products, but of even greater concern, they discovered that the failure of many of these products had been predictable and even preventable. It has been found that firms that use a formal new product development process have been consistently more successful at new product development than those which do not. (Cooper, Kleinschmidt, 1993). The aim of any new product development