PART - B

ENGINEERING
MANAGEMENT
 Chapter 5. MANAGING
ENGINEERING DESIGN &
DEVELOPMENT
5.1 Product & Technology life cycles

Product life cycle begins with an identification of need

or suggestion of a product opportunity. The product
must be subjected to a screening process to select from
the many ideas available those that are technically and
economically feasible and to propose a program for
their successful design and development.
 5.1.1 Steps or Functions and typical activities
in the product life cycle.
Consume Identificati “Wants or desires for products (because
r on of Need obvious deficiencies/problems are made
evident through basic research results)
Product Marketing analysis; feasibility study;
Planning advanced product planning; planning
function review; proposal
Product Basic research; applied research (“need”
research oriented); research methods; result of
function research; evolution from basic research to
PRODUC product design and development
T LIFE Product Design requirements; conceptual design;
CYCLE Producer design preliminary system design; detailed design;
function design support; engineering
model/prototype development; transition
from design to production
Production Production or construction requirements;
or industrial engineering and operations
Constructio analysis; quality control; production
n function operations

Product Evaluation requirements; categories of test

evaluation and evaluation; test preparation
 5.1.1 Steps or Functions and typical activities
in the product life cycle……
Production Production or construction requirements;
or industrial engineering and operations
Producer Constructio analysis; quality control; production
n function operations

PRODUC Product Evaluation requirements; categories of test

T LIFE evaluation and evaluation; test preparation
CYCLE function phase(planning, resource
requirements,etc);formal test and
evaluation; data collection ,analysis,
reporting and corrective action; retesting
Consume Product useProduct distribution and operational use;
r and elements of logistics and life cycle
Logistic maintenance support; product evaluation;
support modifications, product phase-out; material
function disposal, reclamation, or recycling
5.1.2 Technology Life Cycle
Market volume

Technology Application Applications Mature Technology

development launch growth technology substitution
Time and obsolescence
 Stages in the Product Life Cycle

Introduction Growth Maturity Decline

Digital cameras

Page 336 in 8th Edition

Mini-disc
Electric cars Page 260 in 9th Edition
DVD
VR*

*= virtual reality The time at each stage varies

greatly
 Stages in the Product Life Cycle

Introduction Growth Maturity Decline

Introduction
The seller tries to stimulate demand
Promotion campaigns to get increase public awareness
Explain how the product is used,
• Features Advantages Benefits
You will lose money, but you expect to make profits in the future
 Stages in the Product Life Cycle

Introduction Growth Maturity Decline

Introduction
•Sales are low, and profits are below the line because your costs are greater
than the amount of money you make
•you have “negative” profit
•Need to spend a lot of money on promotion
 Stages in the Product Life Cycle

Introduction Growth Maturity Decline

Growth
A lot is sold - The seller tries to sell as much as possible
Other competitor companies watch, and decide about joining in with a
competitor product
“success breeds imitation” (Text)
Growth will continue until too many competitors in the market - and the market
is saturated
 Stages in the Product Life Cycle

Introduction Growth Maturity Decline

Growth
•At the end of the growth stage, profits start to decline when competition means
you have to spend more money on promotion to keep sales going.
•Spending money on promotion cuts into your profit
 Stages in the Product Life Cycle

Introduction Growth Maturity Decline

Maturity
Many competitors have joined - the market is saturated
The only way to sell is to begin to lower the price - and profits decrease
It is difficult to tell the different between products since most have the same
F.A.B. - Features, Advantages & Benefits
Competition can get “Nasty” and commercials are intense
 Stages in the Product Life Cycle

Introduction Growth Maturity Decline

Maturity
“Persuasive Promotion” becomes more important during this stage
That is to say, you have commercials almost begging the customer to still buy
your product because you still make it just as good.
 Stages in the Product Life Cycle

Introduction Growth Maturity Decline

Decline
Newer products are now more attractive - even a low low price does not make
consumers want to buy.
Profit margin declines - and so the only way to make money is to sell a high
volume
 Stages in the Product Life Cycle

Introduction Growth Maturity Decline

Decline
To increase volume you try to
1. Increase the number of customers - get new customers
2. Increase the amount each customer uses

g the
e n din ife
Ex t d u c t L
Pro le
C yc
5.2 Nature of Research & Development
R & D are commonly used together and definitions
commonly used by National Science Foundation are as follows
5.2.1 Research
Systematic, intensive study directed toward fuller scientific
knowledge of the subject studied.
5.2.2 Basic Research
Research devoted to achieving a fuller knowledge or
understanding, rather than a practical application of the
subject under study may be in the field of present or potential
interest to the company.
5.2 Nature of Research &
Development…..
5.2.3 Applied Research
Directed toward the practical
application of knowledge.
5.2.4 Development
Systematic use of scientific knowledge
directed toward the production of useful
materials, devices, systems, or methods including
design and development of prototypes and
processes.
5.3 Research Strategy and Organization
Ansoff & Stewart suggest four new
product strategies as follows;

5.3.1 First to market

5.3.2 Follow the leader
5.3.3 Me too
5.3.4 Application engineering
5.4 Selecting R & D Projects
Need for selection
Initial Screening
 Screening of research
project ideas
60 unstated new product ideas are screened for
Technical feasibility
Financial feasibility
Suitability to corporate resource and
objectives

12 ideas worthy of further evaluation through

• Preliminary engineering design
to obtain
• Market research and cost/benefit analysis

6 potential products worthy of

to find • Further design development and analysis
resulting in
3 prototypes for physical and market test,
2 prototypes for physical and market test,

1 profitable product
5.5 Protection of Ideas, Creativity
5.5.1 Protection of ideas
There are four legal means to protect an
organization's (or individual’s) ideas and
right to benefit from those ideas which are;
 Patents
Patent is an exclusive property right to an
invention. A design patent is granted to the
inventor on the new, original and
ornamental design of an article of
manufacture for a term of 14 years from the
date of design patent is granted
5.5 Protection of Ideas, Creativity
5.5.1 Protection of ideas……
 Patents….
The utility patent is concerned with how it looks.
The design must be primarily ornamental rather than
functional.
Plant patents are granted to distinct and new variety
of plant for 20 years from date of application
 Copyrights
Copyright is a bundle of rights to reproduce, derive,
distribute, perform and display an original creative
work in a tangible form for the life of the author, plus
70 more years thereafter.
5.5 Protection of Ideas,
Creativity
5.5.1 Protection of
 Copyrights
ideas…..
Copyrights can be given
literary works;
musical works;
pantomimes and choreographic works;
Pictorial, graphic and sculptural works;
motion pictures and other audio visual works;
a copyright protects expressions, not ideas.
5.5 Protection of Ideas,
Creativity
5.5.1secrets
 Trade Protection of
ideas…..
Trade secrets or confidential technological
and commercial information are most
important assets of many business.
The law protects trade secrets as alternatives
to patents and copyrights.
Trade secrets have no precise definition, but
to be protected by the courts, they must be
secret, substantial and valuable
 Trademarks and other marks
A “Trademark” is “used by a
manufacturer or merchant to identify
his goods and distinguish them from
those manufactured and sold by
others”
A trade mark differs from a trade
name.
A “Service mark” is associated
with services rather than goods.
A certification mark – marked
 5.5.2 Creativity

Nature of creativity
The Creative Process
1. Preparation
2. Frustration and incubation
3. Inspiration or illumination
4. Verification
Brainstorming and Other Techniques for
Creativity
 5.5.2 Creativity…..
Characteristics of Creative People
Self Confidence and independence –
Independent in thought & action and tend to
reduce group pressures.
Curiosity –
• Drive for knowledge about how & why things
work
• good observers with good memories
• build broad knowledge about wide range of
subjects
 5.5.2 Creativity…..
Characteristics of Creative People…..
Approach to problems -
Open minded and uncritical in the early stages
of problem solving, generating many ideas.
Enjoy abstract thinking
Employ method, precision and exactness in
their work,
they concentrate intensively on problems
Some Personal attributes-
Some personal attributes – more comfortable
with things than people
5.6 Nature of Engineering Design
Design is the process of creating a
model, described in terms of
drawings and specifications of a
system that will meet an identified
need of customer.

Customer
Engineering design
internal or
process
external
5.6 Nature of Engineering Design…..
Engineering design is a process of
transforming information.
Information provides input to process; A
statement of problem to be solved,
design standards, design methods,
methods of engineering science.
Through Engineering design process,
the engineer performs sequence of
activities, decisions and analysis to
develop a solution to the problem.
5.7 System Engineering / New Product
Development
The Design of a complex engineered
system, from the realization of a need
through production to engineering support
in use is known as systems engineering or
as new product development.
Systems Engineering is a robust approach
to the – Design, Creation & Operation of
systems.
5.7 System Engineering / New Product Development…..
The approach consists of
- Identification and quantification of system goals
- creation of alternative system design concepts
- verification of design
- post implement assessment of meeting the goals
The approach is usually applied repeatedly and recursively.
5.7 System Engineering / New Product
Development…..
Systems engineering process includes
the following activities,
 Requirements Analysis
 Financial Analysis/Allocation
 Synthesis
 System Analysis and Control
5.7 System Engineering / New Product
Development…..
Stages in Systems Engineering or New Product
Development
 Conceptual Stage
 Technical Feasibility Stage
 Development Stage
 Commercial Validation and Production-
Preparation Stage
 Full-Scale production Stage
 Product Support Stage
 Disposal Stage
5.8 Control Systems in Design
Drawing / Design release
Configuration Management
Design Review
Management Audit of the Design Function
5.9 Product Liability & Safety
Development of Product Liability
Reducing Liability
5.10 Designing for Reliability
5.10.1 Significance of Reliability
A. Reliability
Reliability is the probability that a system
will demonstrate specified performance for
a stated period of time when operated
under specified conditions.
B. Risk
Defined as the chance (i,e., probability)
of injury, damage or loss.
5.10.2 Simple reliability models
When designing systems we
estimate the reliability of the individual
components
- Simple Series Model
- Simple Parallel Model
- Series Parallel Model
5.10.3 Bathtub curve model

Hazard
rate λ

Infant
Useful life Wear-out
mortality
Life
Figure : The “bathtub
curve”
5.10.4 Developing reliability over the
Product life cycle
- Planning and Apportionment
- Designing for reliability
- Flattening the Bathtub Curve
- Reliability Growth
- The Reliability Profession
5.11 Other ability in Design
- Maintainability
- Availability
- Human factors
- Standardization
- Producibility
- Value Engineering / Analysis
 Chapter 6. MANAGING
PRODUCTION OPERATIONS
6.1 Assuring Product Quality
Some Definitions
Quality - has been described as fitness for
use or customer satisfaction.
Quality has two parts –
Quality of design
Quality of conformance
Quality Costs
 Prevention Costs
Incurred in advance of manufacture to
prevent failures
Ex:- quality planning, training, data analysis,
process control & motivation programs
 Appraisal costs
Include the costs of inspection of
incoming parts and materials,
inspection and test of product in
process and finished product and
maintenance of test equipment
 Internal failure costs
Those that would not appear if there were no defects in
the product before shipment to the customer. They
include scrap, rework, down time and yield losses caused
by defects, cost of material review and disposition of
defectives.
 External failure costs
caused by defects found after the customer
receives the replacing the product.
Ex:- Cost of investigating and adjusting
complaints, the costs of replacing defective
product returned by customer
 Total Quality cost

Failure
cost
Quality Costs

Appraisal
cost

Prevention
cost

Figure : Effect of quality improvement on

quality costs
Statistics of Quality
Process Control Chart
Upper
Control
limit
Sample mean

Central line

Lower
Control
limit

1 2 3 4 5 6 7 8 9
Figure: Process control chart
Sample number
Inspection and Sampling
Taguchi Methods

Figure : Taguchi loss factor

6.2 Productivity
Definition of Productivity
= Output/ Input
6.3 Work Measurement
Work measurement is the art of
determining reasonable and fair times
for performing various work tasks. These
are called time standards.
Informal Time Standards
Engineered Time Standards
6.4 Maintenance & Facilities(Plant) Engineering
Scope of Maintenance
 Maintenance of existing plant equipment.
 Maintenance of existing plant buildings and
grounds.
 Equipment inspection and lubrication.
 Utilities generation and distribution.
 Alterations to existing equipment and buildings.
 New installations of equipment and buildings.
6.4.1 Types of Maintenance
Corrective – Simply repair and work

Preventive - Establishment of most cost-

effective schedule for inspection

Predictive – Preventive type of

maintenance that involves the use of
sensitive instruments to predict trouble.
6.4.2 Some Maintenance Management
Considerations
Size of Maintenance Staff
Work orders
Work Scheduling
Repair parts inventory
6.5 Other Manufacturing Functions
Human Resources (personnel)
Management
Purchasing and Materials
Management
 Chapter 7. ENGINEERING IN
MARKETING & SERVICE
ACTIVITIES
7.1 Marketing & The Engineer
Types of Marketing Relationships
Transaction-Based Relationships
More sustained Relationships
Highly committed Relationships
Engineering Innovation in Marketing
Industrial Products
After-sales services
Introducing New technology into the Market
7.2 Engineers in Service Organizations
Importance of Service-Producing
Industries
Characteristics of the Service
Sector
Some Specific Service industry examples
-Computer Applications

Semi conductors

Transistors

Computer
appliance Integrated circuits
controls
Increased Medical

Financial and capability;

Banking decreased cost, Telecommunica
size, power tion
requirement for
COMPUTERS
Business
Government

Manufacturing
Transportation

Figure : Impact of computer technology on service-

producing industry
 -Government Service
-College teaching and
Research
-Biomedical Engineering and
the health services
Chapter 8. PROJECT PLANNING
& ACQUISITION
8.1 Characteristics of a project
A Project represents a collection of
tasks aimed toward a single set of
objectives, culminating a definable
end point and having a finite life
span and budget.
Figure: The “Three legged Stool”
of successful project management
8.2 The Project Proposal Process
Preproposal Effort
Proposal preparation
Proposal contents
8.3 Project Planning Tools
Scope
Schedule
costs
8.4 Types of Contracts
Fixed Price contracts
- Firm fixed price

Cost Contracts
Cost plus incentive fee
Cost plus fixed fee
Time & materials
 Chapter 9. FINANCIAL
MANAGEMENT FOR ENGINEERS
9.1 Overview of tools for financial
performance measurement