Maintain A Strong Relationship With The Supplier: Tip #4:

Product Development, Leardon Solutions, Manufacturing, San Diego, Southern California

Tip #4: Maintain a Strong Relationship with The Supplier

There is a lot of articles written about the importance of the supplier in new product development and innovation. Most of these articles focus on topics such as supply chain management, supply management, supplier relationship management (SRM), and quality control. While these topics cover important issues such as product quality and continuous improvement plans, there is a lack of research and discussion about the importance of a strong supplier relationship when it comes to new product development.

Leardon Solutions has written about how to achieve strong supplier relationships in past articles focusing on supplier capability and commitment. In order to get the necessary commitment and capability from suppliers, there are Five Vital Characteristics that must be implemented into the relationship. These are:

The relationship:

  • Encourages respect
  • The relationship is a partnership between two trusting parties
  • The relationship supports growth and development of the two parties
  • The relationship consists of managed risk taking
  • Both parties have complementary and balanced capabilities.

Each of these vital characteristics impacts the supplier commitment, capability, or both. If these improve, the relationship will improve to the point of becoming a strong relationship. There are three types of relationships, simply stated as Poor, Fair, and Strong:

POOR RELATIONSHIP: A Poor Relationship exists when the supplier does not commit to the relationship and is not a capable of performing the job at hand. In this case, the supplier must demonstrate some desire to increase their capabilities or their commitment, otherwise another supplier should be chosen.

FAIR RELATIONSHIP: A Fair Relationship exists when the supplier is either fully committed to the relationship or demonstrates good capabilities, but not both. It is possible for this type of relationship to be successful in the short term but typically the relationship will fall apart unless improvement is made.

GOOD RELATIONSHIP: A Strong Relationship exists when the supplier exhibits full commitment to the relationship as well as demonstrates excellent capabilities. This is the pinnacle of supplier management and these strong relationships will become long-term success.

Of course, the goal is to achieve a strong relationship because when this is achieved, there are many benefits including:

  • The supplier feels accountable for the success of the project and acts accordingly.
  • The teams collaborate efficiently on solving issues and defects, even when the supplier didn’t cause the issue.
  • The supplier might give preferential treatment such as payment terms, “jumping the production queue”, allowing lower production volumes, or improved pricing.

These are just a few of the benefits of a strong supplier relationship. Successful product development teams understand that strong supplier relationships are absolutely necessary for success and therefore focus on maintaining and improving these relationships.

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

Tagged , , , ,

How to Avoid Feature Creep and Scope Creep: Tip #3

Product Development, Leardon Solutions, Manufacturing, San Diego, Southern California

Tip #3: How to Avoid Feature Creep and Scope Creep During Product Development Lifecycle

Scope Creep. Feature Creep. Creeping Featurism. Featuritis. Project Creep. These are all terms used to describe the state in a project where the scope or features of the product continually change as the project progresses. Many of the articles written regarding scope/feature creep discuss software feature creep or methods of managing creep. Of course, feature creep is an issue that can adversely impact any project, including software, hardware, or service. If it isn’t avoided and managed properly, the project will end up at the point of no return.

Here are some methods of avoiding feature creep during the product development process.

A. Focus the team on the project priorities. There is always a tradeoff between product cost, program schedule, and product features/scope that cannot be ignored. One objective cannot be changed without affecting the others and a successful team leader is one who will prioritize these objectives. If the team is focused on these priorities then feature creep will take a back seat to proper program management. For example, if Project Scope is prioritized on the program, then it would be acceptable for the program manager to methodically consider new features. But if Product Cost or Program Schedule were the highest priority, changes in features would typically never be considered. One program that was successfully introduced into the market in less than six months was the Floe Winter Drainage System by Apt Innovations located in Northern Ireland, United Kingdom. The Managing Director Jason Paul was very thoughtful in his approach to managing the project. He stated clearly that the priorities of the program were (1) Program Schedule, (2) Program Scope, and (3) Product Cost. This allowed him to make wise decisions about avoiding any creep of the product features when he learned more about new potential customer segments for his product. He left these changes to the next product iteration.

B. Create and manage a product requirements document. It is extremely important that a program is initiated with a formal phase of documenting the program requirements. These requirements are driven by the customer and require in depth research to determine exactly what the customer wants and needs. Once the customer requirements are documented, the engineering team can translate these customer requirements into engineering requirements. This allows the engineering team to initiate their work and begin design and qualification. When features are changed or new features are introduced, the engineering team needs to revisit the engineering requirements document and rework many of the designs and qualification tests already performed. This results in wasted time and money.

C. Feature scope, if any, should only be customer driven. If a product program is being managed with a top priority of product scope, changes in the scope or features can be considered. Sometimes it is necessary to make changes to the features based on new learning from the market and customers. It should be noted though that the marketing team needs to be careful that they don’t react too quickly to requests by customers as this will end up whip cracking the engineering and development team. If features changes are going to be made, make sure that the customer was the original reason for the change.

D. Create a process to evaluate all potential changes to the feature list. When changes are going to be seriously considered, it is necessary to have a team process that is used to make a decision to implement or discard the new feature. The program manager should implement a review process that the whole team understands and follows. The evaluation team should consist of all functional members including technical, financial, marketing, and sales so that all member’s needs are considered. The decision criteria should be an objective metric that considers all financial and schedule outcomes of the decision such as net present value (NPV).

Successful product development teams focus on their original product requirements and don’t let scope and feature creep derail their schedule and financial goals.

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

Tagged , , , , ,

The Insider’s Perspective on Product Development: Tip #2

Product Development, Leardon Solutions, Manufacturing, San Diego, Southern California

Tip #2: Do Not Ignore The Balloon Effect

An analogy that best describes the constraints of the product development process is one of a balloon. If a balloon is pressed or squeezed in one place, the fixed volume of air is just displaced and the balloon deforms. Here is how this analogy relates to product development. A program manager or engineer might attempt to squeeze cost or time out of the product development process only to find that there are counter effects to these efforts. These counter effects could be increased schedule, lower quality, or mismatch of customer performance requirements. The product development process is the air in the balloon and the program constraints are the balloon holding the air. If the balloon is pressed too much, expect the balloon to pop! There are no free rides in product development.

The Product Development Balloon EffectHere are some of the mistakes made and product development constraints ignored in the product development process.

  1. There is always a tradeoff between product cost, program schedule, and product features/scope that cannot be ignored without consequences. One objective cannot be changed with affecting the others. This is sometimes referred to as the Project Management Triangle in product development circles. The concept is that cost, schedule, and features are all program objectives that are connected and should be prioritized in a properly managed product development process. Sounds very familiar to the the balloon analogy, doesn’t it? The program objective that has the highest priority must not be compromised. The second program objective must be optimized based on the results of the highest program objective. Finally, the team has no control over the last program objective and it lands where it lands. Here is an example. If a team is developing a product that requires the lowest market price, then it is obvious that product cost is the highest priority objective. If the team requires a faster schedule, then either the cost must go up or product features must be dropped from the plan. In this case, the team would choose to drop product features since the product cost is the highest priority.

  2. Proper product development is a process that must be followed with the main objective of shipping products to customers and achieving “first customership.” The best product development teams follow this process to the letter and don’t attempt to skip steps in order to save money or speed up the schedule. This will only result in failure and a popped balloon.
  3. The cost of a part or product is driven by the complexity as well as the quantity produced. Some people ignore economies of scale and believe that pure negotiation or playing one supplier off of another will result in a part cost that is below market price. Economies of Scale is the economic principle that the cost of something will decrease as the purchased quantity increases. This makes sense in manufacturing since efficiency increases and raw material prices decrease as higher quantities are produced. The best process to follow to get the best price for a product or part is to get multiple quotations from suppliers in the same country. When these quotations are received, have a meeting to work through the details of the quotation and break out costs that are bucketed together in one number. Don’t try to use quotations or prices from other countries to negotiate as this is like comparing apples to oranges. Also remember that if you are able to negotiate what you believe is a “below market” price for your part or product, changes are high that this lower cost will be the result of skipped steps resulting in lower quality.
  4. The relationship between fabrication tooling cost and part cost is an interesting tradeoff that is typically overlooked. When determining the cost of a part, it is important to consider the cost of the tooling required to make the part. If a very low part cost is required, it is necessary not only to order a high quantity but also to invest in high-volume tooling to bring the cost of the product down. Here is the rule of thumb. If you need low tooling costs, then the part cost will be higher. If you need low part cost, then the tooling cost will be higher. Here is an example. If you only needed ten pieces of a part, it is very unlikely that a production tool would be made. If you needed ten thousand pieces of this part, there is no doubt that a production tool would be required. It would cost more per part to make ten pieces versus ten thousand but the tooling cost would be higher for ten thousand. Remember that if you push hard on the part price, changes are high that it will bulge out in the price of the production tooling.

Smart product development teams don’t ignore the balloon effect and understand that there are constraints that mandate that nothing comes for free.

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

Tagged , , , ,

The Insider’s Perspective on Product Development: Tip #1

Product Development, Leardon Solutions, Manufacturing, San Diego, Southern California

At Leardon Solutions, we are starting a new blog series to help provide more information on the product development process. Our new series is called “The Insider’s Perspective” and will focus on tips and teaching that we have learned along the way that we want to share with you. It is our hope that these tid bits of valuable product development knowledge will help you succeed as you begin your journey into the product development lifecycle. If you have a suggestion for one of these blog posts, please contact us, We would love to hear from you.

Tip #1: Avoid Design Changes When Possible

Product development is a creative team process. Engineers and designers take on the difficult task of creating a product that meets all the customer’s needs and wants. The team typically strives for product perfection but unfortunately perfection can never be achieved due to time and money constraints. Therefore, in order to get the product shipped and into the hands of customers, it is important to prevent unnecessary product design changes so the team can go out and manufacture the product for sale.

Product design change is sometimes seen as the enemy of an efficient and cost effective product development process. Of course, change is inevitable and necessary but minimizing unnecessary product change is important to keep the project on schedule and within budget while continuing to meet all the product specifications. Here is the insider’s perspective on why a product development team should avoid design changes when possible.

  1. The objective of the product development team is to deliver a product to a target customer. If change isn’t managed properly, the team members will each make “required” changes based on their own opinions and needs. This will result in change chaos.
  2.  

  3. In order to validate that the product design meets the customer’s quality requirements, the product must be tested. If changes are continually being made in the background, there will never be a stable design that can be formally qualified.
  4.  

  5. If engineers and designers were allowed to continuously change the product design, it would be almost impossible to know what design was qualified and which to manufacture.
  6.  

  7. Changes should only be made if product defects and issue arise. A defect or issue can be raised by anybody on the product development team and the program manager can determine if it is worthy of making a change based on change management rules. Why change if there isn’t a defect?
  8.  

  9. If the product development team has a rigorous defect review process and change system, then only necessary changes will result from the product change management system.
  10.  

  11. Changes cost money and take time. When a change is made, the product development team must make the modifications to the product and qualify the change. This sometimes requires that fabrication tools are scrapped or test data is retaken. This can take significant time and delay the product sale.

Avoid making unnecessary changes to be part of a successful product development team.

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

Tagged , , , ,

End-to-End Product Development And 4 Reasons You May Want It

Leardon Product DevelopmentAt Leardon Solutions we specialize in end-to-end product development and we’re often asked why the end-to-end product development solution is ideal for small businesses and entrepreneurs. Below are 4 reasons why you and your organization may consider end-to end-product development. It could save you a significant amount of time an money.

In the product development world where service providers are specialized and fragmented, entrepreneurs and the like will often find it necessary to play the role of Product Development Manager and integrate all aspects of the product development life cycle. Who else is going to pull all of this together if it is difficult to find a service provider that can provide an end-to-end product development solution, fulfilling all the needs of the company from the product idea all the way through manufacturing? In fact, there are service providers that can provide an end-to-end solution to micro-enterprises, thereby providing a more effective solution than one where the entrepreneur plays program manager. Below are four reasons why it is best for entrepreneurs and small/medium enterprises to work with a team that is capable of developing your product from beginning to end.

A “big picture” perspective
There are many tradeoffs and compromises that must be made during product development as it isn’t always possible to meet each and every product objectives. One of the first tasks that a program manager performs when starting a project is to prioritize the program objectives. This involves determining if product features, product schedule, or product cost has higher priority. This prioritization gives the product development team a “big picture” perspective which allows them to optimize the complete program rather than just optimizing certain aspects of the project.

The product development process is like a balloon. When the balloon is pressed down in one place, it bulges in another place since there is a set volume of air in the balloon. The constraints and objectives of product development are similar to the volume of air in the balloon. For example, part cost can be lowered by investing in high-volume production tooling. This tooling is expensive but necessary if a low part cost is required. Pushing in one area (lower part costs) causes bulging in another area (higher tooling cost). In product development, it is important to see the big picture by understanding how the product objectives are affected by the constraints of the program. An end-to-end service provider who understands that ownership is required across all phases of the project will provide the big picture perspective and optimize the complete program rather than optimizing specific parts of the program.

Nothing “falls through the cracks”
Typically, service providers specialize in some aspect of the product development life cycle. This could be mechanical design, prototype fabrication, injection molding tools, or production parts. This service provider specialization creates a fragmented industry that doesn’t satisfy the needs of micro-enterprises. Therefore, it is helpful to have a program manager on the team who not only understands the product development life cycle but also knows how to direct and manage the service providers. When somebody who hasn’t worked completely through the product development life cycle manages a project, it is very likely that some deliverables will be forgotten or overlooked which will make program continuity difficult.

When deliverables and program objectives end up “falling through the cracks”, the team becomes inefficient, wasting time and money. Avoid this by either hiring an experienced product development program manager to integrate the fragmented service providers or hiring a service provider who can seamlessly use their team from the start of the program through the end to fulfill all the needs.

“Built in” accountability
Accountability diminishes as more service providers are added to work on a project. Here is a very common example. A product designer from one company might be hired to design a part that will be handed off to another company who will fabricate the part. The outcome is typically a less than optimal design since designers and fabricators typically have conflicting goals and objectives. This scenario usually results in multiple redesigns and requires more time and money than necessary to complete the task.

The idea of using many different service providers on a program could result in wasted time and money. A more efficient team is one where one service provider is accountable for the product, from the idea all the way through production. In the above example, if the designer and the fabricator worked for the same service provider, a discussion on tooling and fabrication would take place at the start and during the design of the part.

Lower overall cost
Product development efficiency results in faster time to market and lower overall cost. This in return leads to profit which can be reinvested for new products or product improvements. If external service providers are being used for product development, an end-to-end service provider will result in the most efficient and effective solution.

Images courtesy of:

Equus Athletics

Bomber

Ecoleeser

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

Tagged , , , , ,

8 Product Development Myths to Know…..Part 2

Product Development MythsPart one of this blog series outlined hardware product development myths, basically it was four misconceptions that many entrepreneurs believe are true and hence prevent them from starting down the product development path. To recap, the myths were (1) Hardware development is prohibitively expensive, (2) Service providers and suppliers do not want to work with small companies or Entrepreneurs, (3) My idea will be stolen by my suppliers, and (4) I need to manufacture in China to be successful.  We know you’re eager to read the last four on our list. Also, if you have some of you’re own, don’t hesitate to include them in our comment section below.

(5) Hardware development takes too long
All types of new product development, including software and hardware, require considerable amounts of time for innovation and invention. Hardware development is different than software development in that tangible tools, fixtures, and automation are required but that doesn’t always mean that hardware development takes longer than software development. To minimize the amount of wasted time in any new product development project, it is best to follow a product development life cycle. With the proper deliverables in each phase and checkpoints prior to exiting and entering phases, the overall process will be streamlined using less time and less money.

(6) I need to buy a large quantity of products from my supplier
The misconception is that all suppliers require that the entrepreneur buy tens of thousands or even hundreds of thousands of products on their first order. For a custom product, we recommend that the entrepreneur only buy as many products as needed to fulfill the immediate customer demand of the product. There is a high chance that changes will be required as sales begin so keeping the inventory low will minimize the financial pain of any design changes, reworks or repairs.

There are many entrepreneurs who are “up-sold” to higher quantity orders for a lower product price. There are other entrepreneurs who are shocked to learn that a supplier is unwilling to take a low quantity order and will not to work with the customer unless a large order is placed. It is important to know the prices at all order quantities early in the relationship with the supplier. If the supplier is unwilling to fulfill low quantities in the range of 1,000 products, it might be best to switch to another supplier. Chances are high that there are hundreds of other suppliers that are capable of supplying the product and willing to work with entrepreneurs.

(7) I can’t afford to hire all the individuals on a product development team
A hardware product development team consists of development engineers, tool makers, process engineers, software engineers, technicians, fabricators, procurement engineers, buyers, program managers, among others. Many entrepreneurs try to piece together the product development team with service provides or suppliers that perform only one aspect of the product development life cycle. Since these service providers and suppliers do not provide an end-to-end product development solution from product conceptualization to manufacturing, it forces the entrepreneur to take on the burden of managing all the suppliers and the work performed. If the entrepreneur is unfamiliar with the product development life cycle, this creates an inefficient team without accountability or visibility to the tradeoffs between cost, schedule, and scope.

To create an efficient system with full accountability of the work performed, an entrepreneur should minimize the number of hand-offs throughout the cycle by hiring an end-to-end engineering, prototype, and manufacturing firm that internally handles all the hands-offs without dropping or losing any of the knowledge gained throughout phase.

(8) Hardware development isn’t as cool as software development
Without hardware, there would be no use for software. Without software, most hardware would be boring. Both hardware and software development are challenging and fun so go ahead and pursue your product idea!

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

Tagged , , ,

8 Product Development Myths To Know

Product Development MythsMany people who hear the word “entrepreneur” or “start-up” typically think of a software team that came up with the latest and greatest app or web-based solution.  Most people don’t correlate the word entrepreneur with somebody developing hardware or physical products but the fact is that many aspiring entrepreneurs migrate towards software rather than hardware due to some false beliefs or myths.  In the next two blog posts, we will discuss eight common hardware product development myths that are commonly discussed in entrepreneur circles. Don’t believe the hype, get the facts and build something you’re passionate about.

(1) Hardware development is prohibitively expensive

Hardware and software product development are not easy and both have more similarities than differences in terms of the cost.  Both require engineers, tools, computers, time, and money, all of which are hard to come by as an entrepreneur.  If you are developing a hardware product for the first time, here are some hints on how to minimize your burn rate as you proceed along the product development life cycle .

  • Work with an engineering services company that has flexible billing arrangements such as amortization of engineering cost into product manufacturing or fixed total engineering costs. Avoid the hourly engineering rate which requires you hand over a blank check to an engineering services team.
  • There is usually no need to spend money on any expensive production tooling in the early prototyping phases. Even if a production-like method must be used to produce a part in a prototype, the cost can be minimized by fabricating only what is absolutely necessary to make the parts.
  • Only fabricate the quantity of prototypes sufficient to meet the needs of the team plus a small number of replacements. Do not fall victim to prototype companies that demand a minimum order quantity (MOQ) of prototypes. You run the risk of filling your garage with units that will never see the light of day.
  • Use the early prototypes for as much qualification testing as possible. Many times, there is no need to use production parts from expensive production tools for early qualification tests. Work with your end to end service team to map out a test and qualification strategy that allows you to test as much as possible on early prototypes.
  • Once you enter into the production qualification phase, try not to lock up cash in expensive inventory by purchasing large quantities of your product. Work with your team and supplier to get a smaller volume, say 1000 production products, that will allow you to test out the market prior to ordering more. This will also prevent expensive inventory reworks.

(2) Service providers and suppliers don’t work with entrepreneurs

Many entrepreneurs have the false believe that all suppliers only want to work with companies that have lots of money and large production quantities.  The real truth is that suppliers really just want to be involved in successful products.  Your success equates to their success.  In order to find suppliers who work with micro-enterprises or entrepreneurs, network at entrepreneur and start-up groups and ask for recommendations.   Entrepreneurs shouldn’t just try to find a service provider or supplier that is willing to accept them as a client.  The entrepreneur should strive to work with a world-class supplier who is capable of fulfilling all their end-to-end product development needs.  This includes services starting at the idea stage all the way through the manufacturing demand fulfillment.

At first, it can be difficult to get the attention of a supplier when you are an entrepreneur with a product idea and without much money.  In the end, you need to convince the supplier that it is worth their time to team up with you to help get your product onto the shelves and into the hands of customers.   This requires that you show them the dedication and persistence you have for your vision.  Show them prototypes, customer data, letters from distributors, and the business plan.  This will provide proof that you are a devoted entrepreneur who wants to team with a world class supplier.

(3) My idea will be stolen by my suppliers

There are just too many stories being told of entrepreneurs who have had their ideas stolen by service providers or suppliers.  This has created an entrepreneur paranoia that prevents open communication with suppliers and sometimes prevents the entrepreneur from developing their product idea.  As a general rule of thumb, suppliers have no desire to steal ideas.  Suppliers know just as well as entrepreneurs that executing an idea is extremely difficult.  These suppliers are focused on running a business and your product will help them grow the business.

Aside from the legal protection of non-disclosure agreements, patents, trademarks, and copyrights, the entrepreneur should follow these words of advice if they are concerned about intellectual property theft:

  • Try to avoid working with suppliers who have direct access into the market you plan on selling.  For example, don’t work with a flashlight supplier who sells to the largest retailers in the world if you have a unique flashlight design.
  • Break up the product design and manufacturing into separate suppliers who don’t work with each other.  This will prevent any one supplier from having all the pieces to the puzzle.  A good end to end solutions service can help you with this strategy.
  • Trust your vendor and develop a long-term relationship.

(4) I need to manufacture in China to be successful

There is a myth that product manufacturing must be done in China or another low wage country if an entrepreneur wants to have any chance of success.  Fortunately, this myth is untrue and there are cost-effective and technically advanced suppliers located throughout the world, serving local markets.  For example, the United States still has an extremely large manufacturing base and in particular Southern California has one of the largest manufacturing bases in the United States.  As written in the report Southern California is the nation’s largest manufacturing economy, if Southern California were a state, it would be considered the third largest manufacturing “state” with 765,000 people employed behind California and Texas.

When entrepreneurs are first starting out to develop their product, think about local service providers before picking up the phone to speak with a supplier half way around the world.  Entrepreneurs do not need to travel to China or another low wage country to successfully manufacture their product.

To Be Continued……..

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

Tagged , , , ,

The Entrepreneur And Product Development : Lessons Learned

Inventor, Product Development, Prototype, Lawn MowerYou might remember that we helped Entrepreneur Steve Hartman with the product development on his Cyclemower, a product that eventually ended up being featured in the Inventors Spotlight at the Las Vegas National Hardware Show. It’s time to check back in with the Entrepreneur Mr. Hartman and the Cyclemower to ask a few questions pertaining to product development and lessons learned along the way.

Q: Steve, what have you learned about product development?

A: The learning curve on prototype development is a long one, which I am still going through. At first, I had a design in mind, which I though I could just kick out and be done with it. I soon learned that there were a number of design details, at least with a relatively complex product like Cyclemower, that caused one problem to exacerbate another. With my first prototype, I was looking to prove that I could achieve my expected blade speed, which I succeeded in doing. I was unable to cut grass with it, and the design was really ugly. When we finally got to our current design, it was still not what I initially envisioned, but it had all the functional elements. It not only spun the blade at speed, but we eventually were able to cut grass. It has a cool look as well, but we also have found a number of weaknesses that makes it unsuitable for a final product. Notably, its too heavy, and the bottoms of the sideplates drag on uneven terrain. This causes the blade to stop spinning. We also can’t seem to get the back roller to function, so we can’t establish an even cutting height. For demonstration purposes, we are basically limited to perfectly flat and well tended lawns, which are hard to come by. To summarize, I think the biggest thing I learned is that the details never stop, and you can never assume that you have figured them all out.

Q: What did you learn from attending the Las Vegas Hardware show?

A: I learned from the hardware show that it is not necessarily a good place to find manufacturers who want to invest design and engineering resources into a new product. The hardware show is a good place for existing manufacturers to show their products to distributors and retailers.

Q: When building a product again, what will he do different next time?

A: If we need to develop another prototype, it will become all about the details. We will want to take all the shortcomings we have learned from our current design, and eliminate them, one by one. We will also want to directly compare ourselves to our competitors, in order to point out the superior aspects of our design. This is a long and tedious process, but one where nothing can go unaccounted for, no matter how seemingly insignificant. We will want our design to be perfect, from form and function all the way to packaging and shipping.

Q: Suggestions for others building hardware for the first time?

A: My suggestion for others would be to take a long, hard look at what you are trying to accomplish, and identify potential shortcomings in a brutally honest and thorough way. I can’t overstress the issue of details, as it only takes a small malfunction to make your whole design look bad. Have faith in your convictions, but take all the advice you can and apply good ideas that make sense to you. One thing I learned along the way is that there will always be people who will tell you how stupid your idea is. Most of the time, these people should be ignored. On occasion however, someone will come up with a legitimate criticism which should be considered and applied to improve your design. Inventing is hard work, and most people can’t do it. Quitting is easy, and most people do that all the time. There are so many obstacles to overcome in creating a new product, but you have to keep at it while maintaining faith in yourself. No one is going to succeed for you.

We would like to thank Steve for taking the time out for our Q&A. If you are an Entrepreneur entering the product development cycle, it’s great to hear from people that have been there and done that. They can help shed some light on the process of product development, prototyping and product marketing.

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

Tagged , , ,

Product Development Considerations for 2012

Now that 2011 is ending and the New Year is upon us, you might be making New Year resolutions that include advancing your product to the next level of development. This could include creating a prototype of your product idea, taking your design into production tooling, or starting to make inventory that will be sold in 2012. No matter how you plan on advancing your product, it is important to consider these best product development tips for your 2012 development activities.

If you are creating a prototype from your product idea….

If you are taking your product design into production tooling….

If you are starting to produce inventory of your product….

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

Tagged , ,

Pitfalls of Manufacturing : Entrepreneur Beware!

When working with outside suppliers and vendors to take your idea into manufacturing, there are many pitfalls that can hurt your chances as an Entrepreneur for a successful product introduction. Manufacturing a product is a process that must be followed with rigor. There are five common pitfalls that entrepreneurs encounter when taking their product into production. Review the advice below and improve your chances of a successful manufacturing introduction.

Take Ownership of the Design and Manufacturing Tooling

When working with outside suppliers to design and manufacturing a product, it is important that you maintain ownership of the product design as well as any manufacturing tooling. For example, the supplier might be hired to design and prototype the product per your specifications. If you are paying this supplier, it is important that you make it clear that you own the product design, intellectual property, and the entire computer aided design (CAD) files generated. Be wary when a supplier performs all the design work for free but will not allow you access to any of the original design files.

It is usually necessary to purchase production tooling in order to fabricate your product. This could include plastic injection molding tools or metal stamping tools. If this is the case for your product, be sure that any money you pay gives you full ownership of the tools and allows you to move them to another supplier if necessary. Supplier-owned tooling puts you at a severe disadvantage when negotiating the price of your product.

Sign off on all Manufacturing and Design Changes

One of the scariest situations in manufacturing is when changes are being made to the product without the client’s knowledge. Changes should only be made to resolve an issue or defect and change require a large suite of qualification prior to implementation. Therefore, it is necessary that all changes are approved by the client. Without knowledge of these changes, the client will most likely be surprised when new production units arrive.

Many times throughout prototyping and manufacturing, the supplier might say “We’ll solve that issue in the next batch of products” when discussing a current issue or defect. This isn’t an acceptable solution since there is no proof that the solution will resolve the issue. Be sure to make new prototypes with each change prior to kicking off a new order of production units.

Know the Price at all Order Quantities

Early in the relationship with a supplier, it is important that the client knows the product purchase price at all manufacturing quantities. Many times, a supplier will provide an enticing price quote for an extremely high quantity of products that is usually higher than the needs of the client. Chances are low that an entrepreneur’s first order will be a high quantity and therefore it is important to know the cost structure and supply chain costs at all order quantities. It is recommended that you get cost estimates at 1,000, 10,000, and 100,000 order quantities so you can get a good idea of the costs across all volumes. This will also give you an indication of the supplier’s ability and desire to supply low and high quantities. This will ensure that there are no surprises when you make your first orders.

Buy Only what is Necessary for Immediate Sales

Only buy as many products as you need to fulfill the immediate demand of your product. There is a high chance that changes will be required as you begin to sell you product so minimizing the number ordered will eliminate the expensive reworks or repairs required.

There are many entrepreneurs who are “up-sold” to higher quantity orders in order to get a lower price. There are some other entrepreneurs who are shocked to learn that a supplier is unwilling to take a low quantity order and will not work with the customer unless they order a higher quantity. It is important that you know the prices at all order quantities early in the relationship with the supplier. If the supplier is unwilling to fulfill low quantities in the range of 1,000 products, you probably should move to another supplier.

Don’t Pay until Quality is Confirmed

Finally, many suppliers will ask for 100% of the payment up front in order to start the product production. If you pay all the money up front, then you run the risk of having no recourse if the product does not meet your specifications upon receipt. It is more standard to pay 50% up front with the final 50% due upon receipt of your products.

You should also verify that the product meets all your specifications and quality levels upon receipt prior to paying the final 50% of the payment. Verify that the product meets all the specifications including product dimensions and materials as called out on the 2-dimensional prints and operational specifications as called out on the product specification document. With respect to verifying the materials, be sure to ask for Certification of Conformance on all the materials used in the product as it is important that no changes have been made since the prototypes were supplied.

When entering into manufacturing, be sure to own the design and tools, monitor all changes, know the pricing structure, buy only as many products as you need, and pay when quality is confirmed. This will ensure that you don’t fall into any of the pitfalls of manufacturing and successfully get your product into the hands of customers.

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

Tagged , , , ,
Page 1 of 41234