Chapter 3. Phases of the Product Evolution Process

Chapter 3. Phases of the Product Evolution Process

1. 3.1 Initial Phase

   • During the initial phase, the product profiles coming out of product strategy are concretized towards a consistent target framework from which the technical and economic feasibility of a vehicle project as a whole can be evaluated
     • The target framework must be plausible, prioritized and its conflicts resolved
   • 3.1.1 Technical Feasibility
     • Major aspects of the technical feasibility of a vehicle project include the geometric verification of the vehicle package, initial – exterior and interior – styling decisions, and early considerations concerning production.
     • The vehicle design process starts during the initial phase. The general body concept is selected, the major components are derived from the planned vehicle functionalities and are roughly positioned in the vehicle package, and first drafts of exterior and interior styling are created. Part of this initial packaging process – which is usually done in 2D – is the analysis of critical dimensional chains and the resolution of their target conflicts.
     • Apart from the directly vehicle related characteristics, the target framework also must give answers to questions regarding planned production, procurement and service processes:
     • One or more production plants have to be selected (or expanded or even built) that match the project’s requirements in terms of production location, technological capability, volume capacity and supplier network. Likewise, the new vehicle must either fit into existing sales and service structures or these structures have to be expanded or newly created.For the first model of a new or reanimated vehicle brand, a complete marketing concept has to be planned
     • The product target framework also includes a commonality structure that determines which parts or components are reused from existing models (new design or carry over part).
     • If the development project includes a model line, the target frame must include – and must be consistent for – all variants of that model line.
   • 3.1.2 Economic Feasibility
     • At the end of the initial phase, a consistent and feasible business plan for the new model or model line must be available, based on plausible assumptions concerning all types of earnings and costs that occur over the expanded lifecycle of a vehicle
     • If a certain return on investment (ROI) or net present value (NPV) can realistically be achieved, will the project be continued and led over into the concept phase
       • Example

2. 3.2 Concept Phase

   • 3.2.1 Vehicle Concept Design
     • As during the concept phase the vehicle must be detailed far enough that it is clear whether it will – when realized – meet the set requirements, virtual and real 3D models are the main form of product representation during the concept phase
     • Exterior and interior surfaces are specified first in clay models and only then transferred into computer aided design (CAD) data
     • 3D CAD models are 3 Phases of the Product Evolution Process 33 created by design CoCs and analyzed by the integration processes in order to evaluate complete vehicle characteristics and thus validate the vehicle concept
   • 3.2.2 Target Agreement
     • Based on the target framework and the business plan worked out during the initial phase, a detailed and coherent project concept with quantified technical and financial targets is delivered at the end of the subsequent concept phase.
     • To ensure quantitative consistency of the concept, target management methods and systems are applied.The consistent set of quantitative targets the project concept comprises is the basis for the important project milestone target agreement which marks the end of the concept phase and – as it triggers series development with all associated costs and risks – represents something like a “point of no return” in the vehicle project.

3. 3.3 Series Development Phase

   • 3.3.1 Component Design
     • To ensure delivery of parts at planned cost, quality and reliability, suppliers are selected and qualified at the beginning of the series development phase. Together with the OEM, they design and realize the tools, equipment and processes necessary to manufacture the parts under series conditions.
   • 3.3.2 Complete Vehicle Integration
     • The central mission during series development is the integration of components and systems to a vehicle that meets the initially defined legal and self-imposed requirements regarding the complete vehicle characteristics. For this evaluation – and eventual validation – prototypes, pre-series cars and series cars are tested
   • 3.3.3 Prototype Build
     • In a complete redesign project, OEMs today typically build and test two prototype groups
       • An early group with which the concept is evaluated and from which necessary design changes are derived
       • A second one that incorporates these changes and proves them successful.
         • To obtain realistic test results, prototype testing can not be restricted to confined testing facilities. However, exposing body styling and other design features too early on public roads would not only allow competition to get an advantage by adapting their products accordingly but – even more important – would also make the current model less attractive in the perception of the customers and thus negatively impact sales volume and price.
           • Provision of prototypes for the evaluation of complete vehicle characteristics is one of the major cost factors in vehicle development. An early prototype can cost up to one million Euros.
             • Configuration. Through intensive negotiation among the different departments that have to test the prototypes, the combinations of body style, engine, gearbox, left-hand/right-hand drive, country version etc. can be found that require a 3 Phases of the Product Evolution Process 37 minimum number of prototypes.
             • Multiple use. Prototypes used to be an informal status symbol for design departments, and some managers made sure that their CoC owned a prototype of every model. With companies now looking rigidly at their development costs, test drivers from all departments have to share a much smaller number of prototypes according to a precise time table.
             • Simulation: Increasing accuracy and reliability of simulation tools can reduce the need for hardware prototypes.
   • 3.3.4 Launch Preparation
     • On the sales side, an exactly planned roadmap is followed to launch marketing activities such as publishing teaser pictures, press presentation, staging of the vehicle’s debut at car exhibitions or advertising campaigns. The first cars built during ramp-up production following SOP are delivered to dealers’ showrooms as part of the marketing campaign. Parallel to that, sales and service staff are trained, showrooms and repair shops prepared and transport of the new models to their points of sale is organized.
     • The last part of the series development phase is the launch phase or ramp-up phase, which starts with the first pre-series car being assembled in the plant and ends with daily series production volume having reached its capacity target. SOP denotes the point in time after pre-series production that the first car that is intended to be sold to a real customer is produced. On
     • An important milestone within the launch phase is the ordering release, which gives the dealers the go-ahead to file customer orders. At this point management must commit that all ordered cars can be delivered as specified, on time and in 100% quality.

4. 3.4 Series Support and Further Development

   • When series production has been proven stable the series development phase formally ends. The project team is discharged and responsibility is handed over to a much smaller series further development team.
   • Development activities continue even after that. Series support comprises short-term measures to optimize costs and quality, component discontinuations and to fulfill short-term legal and insurance requirements. Further development includes all changes that can be planned on a longer term.

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