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9 Δεκ 2012 (πριν από 4 χρόνια και 11 μήνες)

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R&D Management

Henry C. Co

Technology and Operations Management,

California Polytechnic and State University

Issues in R&D Management


Why does a company undertake R&D?


Defend, support, expand business


Drive new business


Broaden and deepen technological capabilities


Problems faced by R&D managers?


What, when, why, how much?

R&D Management (Henry C. Co)

2

1 Market Pull

2.Technology Push

3. Platform products

4. Process intensive

5. Customized


1.
Market Pull: Market needs
create new product
opportunities which in turn
stimulate R&D to determine if
a solution is possible


Market Need


Marketing


R&D


Production


Problem: Find new
technology to fit need!

2.
Technology Push: New
discovery triggering a
sequence of events


R&D


Production


Marketing


Market Need


Some innovations may
have no market potential.


Problem: Find or create a
market!

3

Types of Development


3.
Platform products


Build new products around
same technological
expertise

4.
Process intensive


Product that is highly
constrained by process

5.
Customized


Family of products


4

1 Market Pull

2.Technology Push

3. Platform products

4. Process intensive

5. Customized


Types of Development


R&D Organizations


Functional organizations


Centered around functions (plastics, chemistry, material
science, manufacturing)


Can be a barrier to innovation


Project organizations


Organized around a project


May not have deep specializations


Matrix organizations


Hybrid of previous two


Requires many managers

5

Locating R&D Activities


Corporate level


Time horizons are long,


Learning feedback loops slow,


Internal linkages (with production and marketing) weak,


Linkages to external knowledge sources strong, and


Projects relatively cheap


Business
-
unit level


Time horizons are short,


Learning feedback loops fast,


Internal linkages (with production and marketing) strong,


Projects relatively expensive

6

Locating R&D Activities


A Rule of Thumb


R&D supporting existing business (products, processes,
divisions) should be located in established divisions;


R&D supporting new business (i.e., products, processes,
divisions)


should initially be located in central laboratories,
then transferred to divisions (established or newly created) for
exploitation;


R&D supporting foreign production should be located close to
that foreign production, and concerned mainly with adapting
products and processes to local conditions.

7

Two Dimensions in Locating R&D
Activities


Physical location, determined mainly by the importance of
the main organizational interface: the corporate
laboratory towards the general development of
fundamental fields of science and technology, and the
divisional laboratories towards present
-
day businesses.


Its funding, determined by where the potential benefits
will be captures: by the established divisions or by the
corporate as a whole.

8

9

Corporate-level
performance:
Where important interfaces
are with general advances in
generic science and
technologies
Divisional-level
performance:
Where important interfaces
are with production,
customers, and suppliers
Quadrant 1
Quadrant 2
Scanning, external
research threats and
opportunities
Commercializing radical
new technologies
Corporate-level
funding: When
potential benefits
are corporate-
wide
Assimilating and
assessing radical new
technologies
Exploiting
interdivisional synergies
(e.g., production and
materials technologies)
Quadrant 3
Quadrant 4
Exploratory
development of radical
new technologies
Mainstream product
and process
development
Divisional-level
funding: When
potential benefits
are division-
specific
Contract research for
specific problem-solving
for established divisions
Incremental
improvements.
Location and Funding of R&D

Location and Funding of R&D


Four categories of R&D activities


Quadrants 1 and 4


activities funded and performed by
corporate
-
level laboratories, and those funded and performed by
division
-
level laboratories.


Activities in Quadrant 3 reflect the attempt to ensure stronger
linkages between the central and divisional laboratories by
strengthening the financial contribution of the divisions to the
corporate laboratory, thereby encouraging the interest of the
former in the later, and the sensitivity of the later to the former.


Activities in Quadrant 2 recognize that the full
-
scale
commercial exploitation of radically new technologies do not
always fit tidily within established divisional structures, so
that central funding and initiative may be necessary.

10

Factors Influencing R&D Location


The firm’s major technological trajectory.


The degree of maturity of the technology


Corporate strategic style

11

Locating R&D


Global versus
Local

The geographic location oaf large firms’ innovative activities
leading to patenting in the U.S.A., 1985
-
90.


12

Firm
Nationality
% Share
Home
from:
Aboard
U.S.
Abroad
Europe
of which:
Japan
Other
Japan (143)
98.9
1.1
0.8
0.3

0.0
U.S. (249)
92.2
7.8

6.0
0.5
1.3
Canada (17)
66.8
33.2
25.2
7.3
0.3
0.5
Italy (7)
88.1
11.9
5.4
6.2
0.0
0.3
France (26)
86.6
13.4
5.1
7.5
0.3
0.5
Germany (43)
84.7
15.3
10.3
3.8
0.4
0.7
Finland (7)
81.7
18.3
1.9
11.4
0.0
4.9
Norway (3)
68.1
31.9
12.6
19.3
0.0
0.0
Sweden (13)
60.7
39.3
12.5
25.8
0.2
0.8
U.K. (56)
54.9
45.1
35.4
6.7
0.2
2.7
Switzerland (10)
53.0
47.0
19.7
26.1
0.6
0.5
Netherlands (9)
42.1
57.9
26.2
30.5
0.5
0.6
Belgium (4)
36.4
63.6
23.8
39.3
0.0
0.6
All firms (587)
89.0
11.0
4.1
5.6
0.3
0.9

The world’s large firms performed about 11% of their
innovative activities outside their home country. The
equivalent share in production was about 25%.


Firms based in the leading R&D spending countries (U.S.A.,
Japan, Germany) perform more than 80% of their innovative
activities at home.


Most of the foreign innovative activities reflect their own and
their home country’s strengths in specific technologies, and
not host country’s strengths.


Increases in large firms’ foreign innovative activities in the
late 1980s came mostly from the acquisition of foreign firms


especially, U.S. IT and biotechnology firms by large
European and Japanese firms.

13


With the exceptions of pharmaceuticals and
chemicals, industrial sectors with relatively high
degrees of internationalization of their firms’ R&D
activities, were on average in traditional sectors,
whereas those in aircraft, motor vehicles,
computer, and electrical products have a relatively
low degree of internationalization of their R&D
activities.


Within each industrial sector, business firms’
innovation intensity was negatively correlated with
the share that was located in a foreign country.

14

Length of R&D Cycle


Size of innovative leap desired.


Experience and talent available.


Risk & Uncertainty

15

Risk & Uncertainty

1.
Technological Uncertainty & Innovation Risk

2.
Supply of Critical Materials & Parts

3.
Bottlenecks in the R&D Organization

1.
Technological Uncertainty &
Innovation Risk


Early identification of risk areas.


Reducing risk by measuring and monitoring.


Parallel development.


Simulation and rapid prototyping.

R&D Management (Henry C. Co)

17

Identification of Risk Areas


At the end of the concept definition phase, the following are
roughly known:


Product architecture,


Its work structure,


List of components and materials,


Processes, and technologies

1.
At this time, managers should establish a formal list of
uncertainties and risk that have a strong impact on the
product’s performance, compared to that of the competition.

2.
Make a critical examination of the resulting list of
uncertainties. Identify alternatives for each item on the list.

3.
Quantify risk areas by subjective probabilities.

18

Measuring and Monitoring

Formal tracking and monitoring of risk until it is decreased
to zero.

The total project success probability is the joint probability
of being able to resolve the problems in all risk areas.

19

Formal
Risk Management

A formal risk
-
management procedure allow the company to
cut investment in projects that remain risky too long.

20

A Non
-
successful risk reduction:

Parallel Development


Sony reportedly launched 10 different options in
developing the VTR program.

21


The Mitsubishi “ESR”


Mitsubishi tried a number of parallel approaches in its
work to develop an environmentally “clean” car.


An improved vertical vortex engine.


An innovative electronic control engine with modulated
displacement.


An efficient electric power engine.


“When we set out to create an extremely low
-
emission,
energy efficient car to meet 21st century standards, we
knew there were many obstacles ahead. So we tried many
approaches. What we found, after years of researching
and testing various technologies, was that not one of them
worked. All of them worked. Together. The result is a high
performance, spacious car that is practically as clean as
an all
-
electric vehicle. An infinitely more practical.”


22

Simulation and Rapid Prototyping


CAD (Computer
-
Aided Design)


Computer modeling and simulation


Usually done by one group of people under the close
supervision of the chief designer.


During the simulation process, if some parameters need to
be relaxed to optimize others and achieve optimum product
performance, the decision can be made on the spot.


Computer modeling and simulation generates, as
by
-
products, all the tools necessary for the
manufacturing and testing of the elements designed.

23


Semiconductor R&D


Thousands of miniaturized components (complex ICs,
mass memories, and microprocessors) packed into a
minuscule surface.


Computer simulation take into account a huge amount
of information about the


Electrical performance of different components,


Possible couplings and resulting interference between
a number of elements on a given substrate, and


Other effects.

24

2.
Supply of Critical Materials &
Parts


Basic Difference Between R&D and Mass Production


In R&D, many steps are being performed for the first
time. Nothing is stable, and changes and variations are
not only permitted but necessary.


In R&D, the product consists of a few prototypes and a
considerable amount of information and documentation.
Labor cost is much higher.


Personnel working in R&D are highly qualified and hold
academic degrees.


R&D Management (Henry C. Co)

25


Points to consider when establishing an inventory policy for
R&D:

1.
Low % cost of components and materials: 15% in R&D
versus 85
-
95% in typical manufacturing environment.

2.
Lead time of nonstandard components is long and
uncertain.

3.
The R&D cycle is not finished until the last product
component is assembled and successfully tested.

4.
Cost of waiting for the last component can easily exceed
the component cost by a factor of 100, 1000, or more!

26

R&D Inventory Policy

1.
Maintain in stock all inexpensive, frequently used standard
components. An R&D project should never have to wait for
such components.

2.
Keep a reasonable, minimum amount of more expensive,
but “moving,” non
-
obsolescent components in stock. Adjust
the quantity to keep the holding cost low, but monitor the
stock to ensure that no shortage of such components
occurs.

3.
Order as soon as practicable all state
-
of
-
the
-
art components
and any other component with uncertain delivery time.

4.
Periodically dispose of all stock that is not moving or is
“dead.”

27

3.
Bottlenecks in the R&D
Organization


Output of any organization is no greater than the
throughput of its most stringent bottleneck.


In R&D, often the critical bottleneck is not a machine or a
process, but the know
-
how and the particular experience
of specific individuals.


Methods to open know
-
how bottlenecks


Add people with similar knowledge and skills.


Relieve the ‘bottleneck specialists’ from routine tasks
that can be performed by others.

28

From R&D to Production

Classical
Transition Problems


A product goes through 5 stages:

1.
Concept definition
of a product is accomplished by close
collaboration between marketing and R&D.

2.
Production development
: R&D, in close cooperation with
the reliability and quality department, is responsible for
producing working prototypes & documentation;

3.
Manufacturing

is responsible for mass
-
producing the
product, overseen by the reliability and quality department.

4.
Marketing is responsible for
distribution and sales
, and

5.
After
-
sales service and support
.


Organizational “walls” of responsibilities exist between
R&D and manufacturing:


Frequently causing delays in the introduction of a new
product to the market.


29

Quarrels and Disputes


Often, R&D lose interest in a product once the prototype
successfully demonstrate the principle of operation and
reached the desired level of performance.


They see the subjects of cost of fabrication, the use of readily
available parts and materials, etc. as of secondary importance.


They see work related to problem
-
free manufacturing as trivial,
that all tasks related to manufacturing are none of their
business.


Manufacturing expects to receive a fully developed and de
-
bugged product from R&D, with all necessary error
-
free
documentation and drawings


Any mistake in the documentation or inconsistencies in the
drawings provided by R&D can be a major cause in interrupting
the manufacturing process.


30

Case: Intel, the Pentium flaw


Driven by the desire to meet a promised delivery date to
a customer or by the need to make best use of the
window of market opportunity, many high
-
technology
companies launch their new product prematurely.


Often as a result, a large number of engineering changes
are necessary before the manufactured product reaches
the degree of performance and reliability required.

31

Smoothing the Transfer


Organizational methods.


CAD and manufacturing methods.


Adapting OPT and JIT methods to high technology.


Concurrent engineering.


Kaizen.


TQM.


32

Classical

1.
Specialization/division of labor

2.
Specialists coordinated by a weak leader

3.
Specialists have individual bosses & loyalty

Toyota


1.
Teams with all relevant expertise under a
shusa

(Big Boss)

2.
Rewards team players rather than geniuses
in single area of product or process


Honda

1.
Tateomi

Miyoshi
= large project leader
(LPL)
--

not to coordinate, but to manage

2.
Matrix approach, each project member on
loan from functional department for life of
project, under direct control of
Tateomi


R&D Organizations

Shusa


Leadership
--

shusa

= big boss/ project named after
shusa


Teamwork
--

member assigned to project for its life (continuity)/
retain ties with functional area but under control of
shusa
. How
they performed will be evaluated by
shusa
, & will determine
their next assignment.


Communication
--

team members signed pledges to do exactly
what everyone has agreed upon as a group/ resolve critical
design trade
-
off early.


Organization
--

number of team members are highest at outset
of project. As development proceeds, number dwindles as
specialties (e.g., market assessment) are no longer needed.


Concurrent engineering (CE)

34

Concurrent Engineering at Honda,
Marysville


Honda at Marysville, Ohio designs & cuts dies of stamping
steel sheets into car bodies


Die production begins at same time as body production


Die designers & body designers in direct, face
-
to
-
face contact/
most likely have worked together in previous product
-
development teams.


Die designers know approximate size of new car, number of
panels (thus can begin to make rough cuts)/ they understand
body design process & can anticipate final design (sometimes
incorrectly).

35