Page 205 - Six Sigma for electronics design and manufacturing

Six Sigma for Electronics Design and Manufacturing
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sis on quality through the tools of control charts, continuous quality
improvement, and robust processes. Variability reduction through im-
plementing the techniques of design of experiments (DoE) and heavy
emphasis on automating part or all of the manufacturing processes is
increased. The suppliers for the product are involved early and often,
and the design process is made more robust through the use of analy-
sis and simulation tools.
The last stage can take one of two forms: either the product will de-
cline as the need for it is overwhelmed by new technology (as was the
case for 8-track cassette players and electric typewriters), or the prod-
uct will develop into a commodity. In either case, the number of prod-
uct manufacturers will decline to a select few big companies, and en-
try into this market will become very expensive and risky. The
emergence of standards of use, manufacture, interconnection, and
quality will make price the only competitive factor. The products will
essentially be interchangeable from one manufacturer to another,
with high customer expectations of quality and reliability. The rev-
enue per unit decreases rapidly, as manufacturing techniques become
the major factor in ensuring the long-term survival of the product’s
manufacturing company. Follow-on products will be evolutionary,
with a market leader establishing a very careful trend that locks on
his customer base and provides a definite upgrade path for the new
generation of products. The attributes of each stage in the product de-
velopment life cycle are shown in Table 6.1.
The product development emphasis in the commodity stage is on re-
ducing manufacturing cost while maintaining the high quality expect-
ed by the customer. There is a much higher level of automation, as
manufacturing knowledge and the stability of the design are in-
creased. Few companies can enter into a market at the commodity
stage since costs of recruiting personnel with the required knowledge
Table 6.1 Product development life cycle stages attributes
Startup Growth Maturity Commodity
Product variety Great variety Standardization Dominant Mature
design standards
Volume Low Increasing High Very high
Industry Many Consolidation Few companies Survivors
structure companies
Competition Options Delivery Quality Price
basis
Critical Innovation Speed Project Cost
processes management management