Performing action...
Performing action...
- Peter Drucker
Discoveries: Galileo, Copernicus, Newton, Einstein, Pasteur, and Columbus
Inventions: Printing Press, Automobile, Airplane, Light Bulb, Computers
Communication: Mobile Phones, The Internet
Paradigm Shift in Product Development
Throughout engineering and manufacturing, a paradigm shift is impacting how products are planned, designed, tested and built. Undertaking this, the most challenging and rewarding changes relate to moving from traditional serial process with multiple design-build-test development programs to concurrent process, simulation-led design programs where first physical prototypes meet targets when tested. This change yields breakthrough levels of improvement in both time to market and productivity (Figure 1).
The key Best Practices required to provide such significant changes include:
Product development is often still driven by a perceived need to quickly complete detailed designs so the manufacturer can validate new designs by building and testing physical prototypes. This typically means a significant number of design decisions occur as a result of prototype testing, rather than before (i.e. during planning and concept design) and during design. Additional development cycles are often the result of introducing new technology that has not been previously validated.
Even more risky is the desire of development teams to meet schedules, often releasing a product to market before proper validation is completed --- leaving the end-user to discover undetected problems.
CAE tools are commonly used to check new designs before prototypes are built. Some companies employing this "Digital Engineering" approach have had success in applying models to make better decisions while improving communication with manufacturing. In many cases, such companies have partially leveraged these tools but have not changed many of their traditional development processes. Consequently, prototypes continue to be used as a means of uncovering problems, often requiring additional design and test cycles.
Figure 1: Comparison of Serial and Concurrent Product Development Paradigms.
While the new paradigm fully leverages "Digital Engineering" it also employs multiple simulations up-front and trade-off studies that optimize product and manufacturing process and design alternatives related to new content, new processes or problem-solving allowing the best design to be moved forward: one that meets customer needs, including achieving performance, quality / reliability, cost and weight targets. A "hit product" is assured before detail design is started and costly prototypes and tooling are built.
The primary business benefits of this approach are realized in reduced cost of change and risk. For development and manufacturing organizations this further translates into reduced time-to-market, lower product costs, higher revenues, more satisfied customers and increased market share.
Culture Change
True paradigm shifts represent drastic, sometimes uncomfortable change. It's not surprising, therefore, that these events can be met with resistance as organizational leaders step outside of their comfort zone. Not every organization will take advantage of this paradigm shift and many will fade away --- like 381 from the Fortune 500 list between 1955 and 1990.
This approach is best integrated into strategic business planning and deployment. Success is attained by applying new best practices on manageable yet important development projects that will yield measurable results, and building on these achievements. Facilitation of these changes using qualified third parties is generally recommended.
Embracing Change
The message is simple and painfully clear --- product development organizations not taking steps in the direction of simulation-driven product development are behind and falling further back every day. The key is an understanding of the enormous return on investment and a willingness to embrace change.
Development leadership is not achieved from a "leap of faith" but rather by adopting tried and true simulation-driven development methodologies. For many companies, implementing such an approach could mean strengthening their position in brutal markets that otherwise will eat them alive.
Successful Examples of the New Paradigm
Organizations currently taking advantage of the new paradigm have achieved some impressive results:
Aerospace
As competitors struggled in the wake of the post-911 industry recession, a
global aircraft engine manufacturer continued to gain market share and in fact
generated record profits, largely by continuing to deploy continuous
development process improvement, and concurrent and simulation-led development
practices. The company has opened up a full year advantage in
time-to-market over its closest competitors.
Agricultural
An Asian agricultural equipment manufacturer entering the established North
American market develops a new tractor in half the time of traditional
methods with a 30% product cost reduction. The result is a tractor
that also sets best-in-class performance standards in noise, turning radius and
reliability.
Power
Tools
On its initial systems engineering and simulation-driven development program, a
power tools manufacturer increased its market share 63%, due
to improved performance and faster release of innovation. The development
methodology has been applied to other tool programs with similar results and is
being implemented throughout the extended organization.
Engine
An engine manufacturer reduced warranty claims 33% while doubling market
share. These objectives were achieved by applying systems
engineering and analysis led design with a focus on reliability growth.