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Longer-Lasting Product
Designs
Cost reductions and more functionality are possible
By: Michael R.
Wilkinson
President
ABSTRACT
Can companies do anything to
give their products a longer life and more functionality, and still
reduce costs? This session offers an inside look into how product
design can improve "shelf life." It also describes how
product re-designs can save money and how a streamlined design
increases functionality – all at the same time. Such an approach
begins with a "manufacturability review." Conducted by an
experienced design engineer, such a review will explore product
development and direction, design opportunities and their effect on
the bottom line. This session will also discuss how the pressure to
"over design" a product and tight development deadlines
push engineers to create "extra robust" versions of
existing products, the resulting negative implications and how to
overcome such situations.
Scope
This paper will cover several
elements of Longer-Lasting Product Designs (LLPD). First,
understanding your environment and communicating effectively will
allow everyone to work less and have more fun. Second, there are
three different methods to produce LLPDs. Next, outsourcing your
LLPD can dramatically improve your chances of achieving LLPD. Last,
a Manufacturability Review is defined, including the people
involved, agenda, and action items from this review.
Who Cares?
The engineering team is
interested in the following:
- Reducing time-to-market (reducing the
R&D cycle (without more work)
- Reducing their sustaining engineering
role
- Limiting or removing late night work
hours
The marketing team is
interested in the following:
- Reducing time-to-market (reducing the
R&D cycle without more work)
- Confidence that the right product will
get designed correctly and on-time
Other departments have their
goals and needs as well. This paper primarily focuses on engineering
and marketing.
Why is LLPD Important?
Product life cycles are
decreasing at an alarming rate. Technology advancements and
competitive pressures have made short life cycles the industry norm.
Also, automation has been the key to shortening the manufacturing
process. Take note of the following chart. Design time is not
decreasing. This implies that all the new design tools are allowing
engineers to produce more complicated designs in the same amount of
time as before, but not significantly reducing the design time to
match the change in product life cycle.
|
Product Example |
Old
Design Time |
Old
Product Life |
New
Design Time |
New
Product Life |
|
PC Desktops |
15 months |
12-15 months |
15 months |
12-15 months |
|
PC Servers |
30 months |
18-24 months |
30 months |
9 months |
|
Disk Drives |
9-12 months |
18 months |
9-12 months |
6 months |
|
BJ Printers |
9 months |
24 months |
9 months |
4-6 months |
Product Life is defined as the
life of the product in the market before being replaced with a new
model. This is not to be confused with reliability.
Typical Product Life Cycle
It will be helpful to
understand a typical product life cycle to determine when and how
LLPD issues must be addressed. Figure 1 shows a very high-level view
of product life cycle for any new product, be it a house or an
embedded system. The job functions that typically participate in the
development and sale of a product are shown with the activities
generally associated with those functions above. In many companies,
the lines between these job functions may be blurred, but the
activities and responsibilities are universal.
Primary Function of Marketing
The primary function of
marketing is to determine or generate a market need for a product.
The marketing job function is primarily to provide the product
concept and to help validate the commercial specification. These
people are responsible for identifying the tradeoffs for additional
feature sets versus time. They are responsible for evaluating
competing products, market share, name recognition, etc. They are
also responsible for working with the media. It is important that
marketing communicates clearly the new product features and
availability. To under-promise and over-deliver is always best.
Remember, the competition is watching your performance as well.
Primary Function of Sales
The role of the sales job
function is to take the final product identified by or created by
marketing to the market place. Sales teams are generally in very
close contact with the client base and can serve to validate the
product concept and assist in the creation and validation of the
commercial specification.
Primary Function of Engineering
Engineering’s role in
product development is to translate the product concept into an
actual product. Engineering can have a valuable role in developing
the commercial specification and validating the technical
assumptions made by the marketing and sales functions. Engineering
is responsible for communicating with the design team, including
which features are easily implemented and which require additional
design costs and/or recurring costs, thus escalating the total costs
and delaying market introduction.
Primary Function of Program Management
The role of program management
is to represent the customer’s interest in the product and to be a
champion for the product within the company. Program management
provides important information concerning the validation of the
design and feedback of information from the product users and
potential users.
Primary Function of Manufacturing
The role of manufacturing is,
obviously, to build and ship the product. Manufacturing also plays a
valuable role in verifying the ability to economically produce and
test the product and determining how to improve the quality of the
product. Its input is vital to the design team to make sure that the
proper test points and materials are used to ensure quality and ease
of manufacturing. Certain component package types and board geometry
can lead to unnecessarily higher costs and longer manufacturing
time.
Primary Function of Purchasing
Almost all new projects are on
an accelerated schedule in order to make it into the shrinking
market window. Purchasing needs to identify exactly what the process
is to make purchasing requests and, in turn, for those requests to
become purchase orders. Purchasing can provide formidable
information regarding vendor and component selection, second
sourcing and scheduling. Often engineers select wonderful components
only to find out that the product availability really isn’t what
was promised or that "in stock" means the material to make
the electronic components are co-located on earth. This kind of
problem ends up in a re-design of the circuit, further delaying the
project. If we had only known…
Primary Function of Customer Support
After the product is sold, the
customer support team actually becomes the "sales force"
for future sales. No matter how great the product is, people will
remember service for a long time. The customer support team has a
great deal of valuable experience and ideas to make sure that future
projects and versions can be serviced quickly and inexpensively.
This group is responsible for conveying these ideas to the design
team.
The diagram below shows the
flow of activities from one to the next without any backtracking. If
this was used as an actual implementation model, the resulting
product is not likely to meet the customer needs, not likely to be
reliable and will probably be short lived in the market place. All
departments need to be involved in each step, however, the chart
outlines the principle players at each stage.

Figure
1: Simplified Product Life Cycle
The remainder of this paper
will discuss a more detailed view of the activities shown in Figure
1 and how these activities can be structured to ensure high
reliability products.
What is LLPD?
It is the methodology used to
produce products that fit not only into today’s market, but also
into the future. Future-proof. (Schedule: normal vs. LLPD market
life)
Benefits of LLPD
- Less sustaining engineering
- Company can generate more revenue early on
and establish firm position in market
- Employees can be part of a more successful
less stressful product-design process and work environment
Cons of LLPD
- Tendency for creeping elegance, over design
under the name of "LLPD"
Why is it important?
Research and Development costs
are at an all-time high. In the past, a particular R&D expense
could be amortized over a longer product life, therefore reducing
the R&D cost associated with each unit. Now R&D departments
have to work harder at creating LLPD cycles to stay competitive.
Every time a new product is
created, a significant number of steps, amount of cost and degree of
risk are in order. Marketing must be educated to the pros and cons
of the new product features. Sales must begin to sell the new
product at the risk of not selling remaining inventory of the prior
product. Manufacturing has to re-tool (even with simple EPROM/Flash
changes). In some cases, each of the steps may be minimal, but in
every case there is an expense. Each new product, no matter how
extensive the design process is, will need to be tested in the field
for reliability, functionality and user acceptance. "Bigger,
better and faster" isn’t always better in the customer’s
eyes.
Recently, the chief
information officer of Netscape Communications said, "Netscape
generates 100 percent of its revenues from products released in the
last 12 months." He has witnessed that product life cycle is
shrinking at an alarming rate. In other words, all the engineering
effort expended over one year is not directly toward a product in
the marketplace.
What demand is there for LLPD?
Every product that has a
product life cycle is decreasing faster relative to the development
time.
Driving Forces
Competition is the driving
force. (If you won’t, they will!) Look at PCs, cellular phones,
DSS, DVD players, etc. The printed price is very seldom correct. The
price has been reduced since the brochure artwork went to the
printer. Those who enter the market early get to sell their product
at higher margins and therefore recover the R&D expense earlier,
which in turn allows more money to be expended on R&D the next
time around.
How do you create LLPD?
There are 3 methods to create
Longer-Lasting Product Designs.
- Decrease development time on the front
end
- Increase the product life
- Modularize the product so that the next
product is an extension of the first. I know that everyone
re-uses some part of the previous product to make the next,
but that is not what I am talking about. I am talking about a
conscious effort in the requirements-specification stage to
allow for the expansion of the product. Sometimes it is a fine
line between designing for expansion and creeping elegance.
In each method above, the
starting point is communication. Next, assemble the team and get
agreement and buy-in on the goals. Consider everyone’s input and
opinions and think them through before rejecting any bad ideas.
Also, keep in mind that other departments have other goals and
objectives that are completely understood by the other groups. Build
trust with other departments. Nobody wins if marketing and
engineering and other departments are at each other’s throats.
Determine if the time and personnel resources with on-time and
on-budget experience are available. If not, consider outsourcing
your LLPD project.
Where does it begin?
LLPD begins with the product
specification phase. At this point, all departments need to
determine the requirements and define the statement of work. Each
department’s input is very important to obtain a LLPD.
Special attention must be
taken to ensure that the product is not over-designed or
under-designed.
Personnel issues
The product team must be a
TEAM. This includes all the departments together. Any error along
the way will delay market introduction, whether it be a software bug
or product packaging problem.
Process issues
There must be a process to
differentiate and communicate design-change requirements from wish
list items. It is sometimes confusing which features change along
the way because they are required for market introduction are
included just for fun.
Departmental issues
(engineering/sales/marketing)
Communications between
departments is essential. It is here that the real product is
defined and the feature set is weighed against time to market.
Outsourcing of LLPDs
Rationale
Every day a product is late to
market is a direct reduction in the life of the product, especially
in the early days of product introduction. This is where name
recognition, market share and maximum sales prices are obtained. DSS
systems were introduced at $900 with no discounts. Now you can
purchase the same system for under $99.
By outsourcing, the product
requirements must be defined in order to communicate them to an
outside firm. If any changes or additions are discovered later, they
must be internally and externally evaluated before allowing the
product development to stop and shift gears. The outsourced partner
is focused on meeting the requirements and careful not to deviate
just because someone "suggested" a new feature.
Selecting a development
outsourced partner is very much like selecting a manufacturing
partner. The same pros and cons apply.
Benefits
- Outsourcing creates LLPD and an internal
team ready to roll out the product that is not burnt out
- Outsourcing product development is often
less expensive than in-house resources. For example, most
companies do not consider the costs of sustaining and clean-up
work or the costs of "down time" when analyzing
outsourced vs. internal costs. Our experience shows that these
areas may increase internal costs by 20 percent.
- Outsourcing partners typically can juggle
resources more effectively in the event that the project
requires temporary resource adjustments.
- Outsourcing partners are not involved in
other aspects of the company and are therefore not lured into
meetings, discussions and other details that, although
interesting, may not be important to the mission.
Cons
- Selecting a bad outsourcing partner could
mean late product delivery, poor quality and workmanship and a
lack of documentation.
- If the outsourcing partner and the existing
engineering staff cannot work together and communicate freely,
the cost and schedule will definitely suffer.
Example
Many medical equipment
companies design products with disposable components such as
catheters, tubing, barriers, etc. These companies’ core competency
is designing, manufacturing and cost reducing these disposables rather than focusing on the instrument (electronic box). Therefore,
the development team may not be up-to-date on the newest GUI or
development tools and processes. Because the time between
development cycles is long, experienced engineers get bored with
sustaining work and tend to move on to other divisions or different
companies. Outsourcing the embedded electronic and software
development will keep the in-house team focused on the disposable
development while the outsourcing partner focuses on the instrument
itself.
Consulting role
How is the consulting role
different from outsourcing? Consultants have a purpose in this
world. Getting the work done is not one of them. I am talking about
true consultants. These are people who can teach and train people to
be more focused and teach people new processes, but are rarely
involved in getting the product developed. Contractors, on the other
hand, are simply temporary employees (even though the IRS has
separate rules).
LLPD for existing and new designs
Longer-Lasting Product Designs
can be accomplished for new designs as well as for existing products
and designs.
Existing Products: Locate multiple-tier
markets for the products
Example: Cable Set-Top Boxes (STBs)
The newest fanciest STBs end
up in the best, busiest and big-name hotels that cater to the
traveling businessperson. When replaced, they can be placed into
other hotels, sold to private hotel owners who wish to manage their
own Pay-Per-View (PPV) system, or sold to foreign countries, nursing
homes, etc.
Also, take a step back and
think about the product that you have in front of you. Is this a
cable television PPV system? The answer is yes and no! A cable STB
system is much more. It is a computer network capable of A/V
distribution, two-way data communications between thousands of nodes
that operates perfectly in a noisy environment. The host software
application could be written or edited to install or monitor
movie-channel selections, but turn on/off devices remotely, monitor
remote sensors, etc. Keep in mind that all the true embedded
software can be re-used. Only the application layer software should
be changed.
Example: Hospital Equipment
Hospital equipment entails the
same process. In the end, it moves to smaller private hospitals,
small-budget county hospitals, foreign countries, universities,
veterinarians, etc.
New Products and Designs
Engineering can take features
and turn them into future options in order to enter the market
sooner and extend the life of the product with upgrades. For
example, NorTel PBX systems have several upgrades that are available
after password entry. Also, the advent of FLASH memory allows
products of all sizes and shapes to accept upgrades. Some companies
would rather introduce products with known and unknown bugs, but
meet the feature list. These companies assume that they will send
out bug fix releases later. The better plan is to release a smaller
feature set now fully debugged with the system-designed hooks
available to introduce the upgraded feature list later. The end user
will associate your product with quality.
Example: Cable Set-Top Boxes
Before the advent of FLASH
memory and other new technology, some Cable Set-Top Box
manufacturers made a common and substantial design flaw. They placed
significant intelligence -- and therefore more chance for design
flaws and reliability problems -- in the Set-Top Box instead of at
the head end or centralized server computer system. The problem
could have been avoided with adequate communication. In the case of
one company, the engineering department had no idea that the cost to
update software in the Set-Top Boxes was enormous, especially in a
1,000-room hotel. Below is a list of all the problems:
- Access to every room is not easy. Many
hotel guests do not allow maintenance people in the room
during their entire stay and hotel management always obliges.
Flight crew rooms are reserved by contract and often have
sleeping people during the day and night.
- Gaining access to units that are often
bolted down permanently to furniture often with different
security style screws isn’t easy.
- Asking contract maintenance people to
remove a 64-pin, ROM-based microprocessor and replace it with
another one without bending the pins while observing ESD
precautions is a difficult proposition. And when is Quality
Control performed?
- Re-programming features to match the room
number, feature setups, attachments to in-room bar, etc. also
must be undertaken.
Engineering did not design a
less-than-perfect product on purpose. They just didn’t have all
the input from the other departments to make the difference. All
departments are to blame for not communicating. Some possible
solutions below can help each department understand the relationship
with the other departments.
- Send engineers out in the field for a new
installation or a retrofit. Engineers
are bright people with awesome
ideas if they understand the problem.
- Marketing, manufacturing and customer
service should attend design reviews.
Although marketing
people may not fully understand schematic, controlled
impedance, and other technical jargon, they will begin to
understand the complexities of a given feature or provide an
opinion about whether or not path A or path B is better. Care
should be taken to make sure that the design review does not
migrate to a new system-level design meeting. The
specification should be frozen before a detailed engineering
design review.
- Other departments should learn more about
the engineering process. For example, if a design change is
necessary, it is far better and less costly to make that
change one day before PCB fabrication than afterwards. The
cost to rebuild a PCB fabrication is very expensive in time
and money. Unfortunately, the speed-turn cost of the new PCB
fabrication is the least expensive component to the design
change. Last-minute changes delay other departments such as
manufacturing, marketing demonstrations, potential stock
impacts for delayed introduction and a lot of labor being
expended to make last-minute changes. Finally, the chance for
error is greater.
Manufacturability Review
What is it?
A manufacturability review is
a meeting to review all aspects of the product development cycle to
ensure that the product can not only be manufactured, but will live
through the market window and potentially give a head start into the
next product cycle.
When should it be conducted and with whom?
Preferably, the first meeting
should be conducted early in the project. At least one subsequent
meeting should be scheduled to address all the issues. Remember,
LLPD is a process that continues from the start of one
project/product to the next project/product. If the project goals
change considerably, or if the development cycle is delayed due to
external influences such as competitor product introductions and
material shortages, the manufacturability review should be conducted
again. The product development team should lead the meetings and
personnel from manufacturing, purchasing, shipping, program
management, customer support, sales and marketing need to attend.
How is the meeting conducted?
The meeting format is designed
to maximize the time spent together as a diverse group and to keep
focused. Attracting this many people to a meeting is often difficult
to schedule. Additionally, longer meetings tend to have people
coming and going and lots of information not being communicated or
being repeated. The first meeting purpose is primarily an
introduction of key players, an overall review of the project and an
assignment of tasks. The second meeting, and potentially other
meetings, are designed to coordinate and communicate information
followed by decision making on the approach. Depending on the size
of the project, additional meeting(s) may be required to perform the
decision making. It is very important not to schedule meetings just
for the sake of another meeting. Often a quick conference call from
one department to another can resolve an action item from the
previous meeting.
First Meeting
1st Meeting Agenda
Prepare in advance. Send out a
notice for the meeting and include enough in the agenda so everyone
else can be prepared. It is difficult to keep on schedule if someone
attends a meeting totally unprepared.
Make sure an assistant to a
technician or engineer is assigned to be scribe for the meeting so
that everyone can be notified with the meeting results. If not, a
week after the meeting, there will be several opinions about what
was decided in the meeting and the action item list will be foggy.
Review the rules of conduct
for the meeting. With so many people and approaches to the same
project goals, it is difficult to keep staff members focused during
the meeting and not step on any toes in the process. Typically, some
people are more vocal than others.
Include an introduction of
attendees. Often, people within different departments have not met
other team members. Everyone should introduce themselves and their
responsibility in the project. Make sure everyone has telephone
numbers, fax numbers, e-mail addresses, pagers, etc., to stay in
touch. Each person should express the best method to receive
communication. Not everyone has access to or responds well to all
forms of communication.
Assign someone or some e-mail
address to be the default routing address for all communications so
that everyone is kept abreast of the message traffic.
Care must be taken by the
facilitator to get input from everyone including those that are shy
and reserved. Often they are the ones listening and compiling the
most information.
Discuss, in general, the
nature of the project and the information to be gathered before the
second meeting, and how that information impacts the project.
In turn, each department
should enlighten the rest of group to the concerns and issues that
its department is facing. A short amount of time should be allocated
for the group to probe and make suggestions. Between the first and
second meeting is the time to think ideas and concerns through
completely and make suggestions. Otherwise, the meeting could go on
for hours. Let’s review the following two examples of potential
issues that affect multiple departments.
- To match the new lower-voltage technology
components, engineering would like to use a new input power
supply for a new cellular phone design. While this potential
cost reduction might be a great idea, other departments need
to review and resolve any issues. For example, marketing may
have determined that the attraction to their product line is
due to a significant line of accessories including wall
chargers, cigarette lighter power cords and aircraft power
plugs. This idea may require a whole new set of products to be
re-designed and confused with the previous series.
Manufacturing may have to re-tool its burn-in and factory test
fixtures. Until now, manufacturing has been able to share its
floor space, tooling, burn-in equipment, etc., among multiple
products being manufactured. If the change is approved,
customer service may want the new "cable" or
"connector" to be used differently or use a
different connector. They may also suggest adapters for
existing model chargers.
A better approach may
have been to anticipate the change to lower-voltage parts and
design chargers (typically lower volume, higher margins) with
another terminal for the other voltage requirement. While
hindsight is 20/20, some companies are blind even today about
mixed voltage designs. Mixed voltage logic issues have been
around since ECL and CMOS were introduced. Furthermore,
three-volt logic has been around for almost a decade. After
all, tomorrow’s logic is not going to run at higher voltages
- Marketing has suggested a new packaging
design. Manufacturing should leave the meeting to determine
the cost impact, if any. Engineering should leave the meeting
to research whether the product will fit and be secure in the
container. Manufacturing may be able to save money and time by
using very similar packaging from another product but with
different graphics applied.
Define action items for everyone
Each department should leave
with action items specific to their department and how they can
address the concerns and issues of the other attendees.
Lastly, with everyone present,
determine the second meeting time.
Second Meeting
The second meeting, and
potentially subsequent meetings are needed to communicate
information and make decisions based on the action items and
research after the first meeting. Group buy-in and acceptance is
very important. Depending on the size of the project, additional
meeting(s) may be required to perform the decision making.
2nd Meeting Agenda
As before, always prepare in
advance. Even though most people will remember everyone’s name
involved, other will not. Let everyone introduce themselves again.
This also avoids embarrassment to those who forgot someone’s name
or position. Lastly, remind everyone of the rules of conduct for the
meeting.
Define action items for everyone
Each department should leave
with action items specific to their department and how they can
address the concerns and issues of the other attendees.
Lastly and as before, with
everyone present, determine the second meeting time.
Documentation is the Key
Managing reliability means
managing documentation and the validation of that documentation. All
documentation must be thoroughly reviewed by those who have a stake
in the resulting product.
Companies that establish sound
documentation and validation procedures have consistently better
performance to schedule and budget. Resulting products are more
easily maintained and more reliable in the consumer’s application.
Companies are also given more flexibility to outsource if there are
sound documentation practices. If the documentation for a project is
complete and validated, then it is easier to make the choice to use
a services company or independent contractor because all of the
valuable intellectual property is left in the company in a useable
form.
Conclusions
Longer-lasting product design
is a process, not an end in itself. One does not set out to create
longer lasting products and one day say, "I have finished
making this product." This goal is best achieved by documenting
and validating during every step of the development cycle.
This paper diagrammed one
method of breaking down the steps in a project and validating
through documentation and review. There are many other procedures
and groups of documents that can achieve the same purpose. The key
to developing longer lasting product designs is to follow the
following three steps through every phase of development and
understand that the road is not always straight. The reason for
validation is that we all make mistakes. When validation uncovers a
problem, we must be willing to go back to the drawing board and try
again.
Research - Document - Validate |