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State University of New York at Oneonta ​the goal of this tutorial is to help you better understand the Rd screen inside of caption now Rd is really important because this drives the the products for your team it's already for the products is wrong it really messes up the rest that company causes some significant issues so what I have here is we're going to walk through of hypothetical team's decisions for the next round in the game now currently this team has got two products Abel and a2 when you look at the products here the first thing is you have to make a decision on is the performance and the size now if you look at the performance and size you can see it 7-3 for the performance and 12 7/4 sighs those translate over here to the what's called the perceptual map which is just another name for the graph here on the graph you see two circles the circle on the top left is what's called the low tech customer market the circle on the right is the high tech customer market these two markets actually want very different kinds of things right now with this company they're kind of splitting the difference by having Abel and a two sort of in the overlapping area on the circle here this is pretty typical for the early part of the game because you have your circles I got kind of are pretty overlapping as the game progresses you'll see these circles kind of start to drift apart and you have to target your products more specifically on any of the high or the low tech let's go to see how they're going to move along what we do to model this is create in a file in Excel and we're going to actually look at the performance and size and see how far it moves each round so first let's do the low tech when we go to the foundation fast track we can see a lot of different statistics on how far we've done so far in class what I'm going to go to is scroll down to the low tech market segment so what I'm looking at here if you look in the upper right corner it says round two so December 31st 2018 what did the customer actually want the problem we have here is that while it gives us what we wanted in 2018 it's done the 31st these are actually going to change over the course of the year because the changes over the course of the year you have to continually are do your product to get to move to where the ideal position is going to be so let's look at that in so right now the ideal position is five point eight and fourteen point two so I'm going to go over to my excel file for round two zero three and low-tech I'm going to input here the low-tech ideal performance and low-tech ideal size so the low-tech ideal performance is five point eight and the low-tech ideal size is fourteen point two so this is round two or twenty eighteen in round three or twenty nineteen these are going to both be changed the low-tech market moves by 0.5 each round so the performance is going to get bigger by 0.5 and then the size is going to get smaller by 0.5 the customers want to have a higher performing product at a smaller size each round and so looking forward here I see that if I'm planning to be an ideal position at the end of 2018 I really want to be at six three and thirteen point seven if I look back at the perceptual map here I can see that I'm actually pretty far ahead right right now I'm at seven three and twelve seven seven three twelve so that's actually pretty far ahead here if I could have pulled this forward and keep on going to the rest of the game you can see how this changed around four or 2020 from five or twenty twenty-one so right now I'm actually an ideal position in a low-tech market right here which is quite a bit ahead of where I need to be the reason why I'm so far ahead of where I should be is because of the high tech market so let's go back and look at the high tech market what they actually want so here I'm back on the foundation fast track I'm going to scroll down to the high tech market the high tech market here has its ideal performance and size so ideal performance is eight point eight so I'm going to eight point eight and the ideal size is eleven point two now for the high tech market that's actually going to move faster than the low tech market so instead of doing plus 0.5 I'm going to do plus 0.7 in other words the performance is going to increase faster than the low tech is for size I'm going to subtract point seven because the size is going to get smaller each round then I take these two and I copied them on over to the right so currently I'm at seven three twelve so I'm actually behind in this market and more on the line with like the round one ideal position rather than round five ideal position that's kind of what we're doing the game here because it's early on you kind of are splitting the difference products are sort of hosta clustered in the middle here but ideal low tech would be right in the middle ideal high tech we're right on the bleeding edge right up here on the front so Abel is really kind of just sort of sitting there trying to compromise a be the boat best of both worlds or sort of medium of both both worlds here when a tube comes out you can see a two is actually a pretty well positioned to be a low tech product it's right on the front edge so they can let it sort of sit there over time as the circle scoots down over time so that's performance in size now performance in size influence another variable which is called H age is also really critical in the game if you look at what each market segment wants they very specific desires for H the low tech product people want an ideal age of three years old so if you look at our products our products are currently right at
2.8 for Abel which is just about perfect so that that's awesome so if I was able I would not want to move my performance in size and drop my age because the age is perfect right now now I wanted to go for the high tech market for Abel I would be a little bit more difficult area so if I go down to my high tech you see the high tech ideal age is actually zero so they want a product that's brand new which obviously Abel is not brand new if I want to make Abel more appealing to my high tech customers I could go ahead and move it so let's say I bump it ahead a little bit they just go a tiny little change seven point four what happens every time I change the performance or the size I start an RD project okay we calculate here and you can see on my age profile that I'm going to finish this tiny little bump in March of 2019 in other words I look down here my products going to get older until March hits once March hits the age of my product drops in half so it was 1.9 so it's going to go down to a little bit below one after that revision date hits it's going to continue getting the holder so you can see that I'm making a small change I'm going to drop my age and I'm going to end up pretty much where I am with beginning here if I was going to make a bigger jump you'd see it's a little bit different let's say well I want to match a two and make my products exactly the same to make a little bit easier to manage so now I have able hopping down to where a two is that because I'm moving it more my revision date gets a little bit later before I was looking at March and now I'm looking at me if I was going to try and make this into a high-tech product I could bump it ahead even more so let me look at my excel file and find a good position let's say I want to be the ideal position for 2019 right here so I want to have nine point five and ten point five so let's do that I'll change my performance to nine point five it change my sides ten point five and recalculate the Luc Abel has jumped all the way from from the middle to the very bottom right corner which is really the ideal at the end of this coming around 2019 so it says right here 2019 the problem that I have with this is that you notice here the age profile never drops it's because this project is going to take more than one year you look at the revision date instead of finishing in this year which is 2019 it's going to finish in August of 2020 in other words going to take over a year and most of the next year as well so what's going to happen with this particular jump is that if my product is still are indeed at the end of the year I can't touch it until it finishes the R&D process and actually can see an example of this in a down here if you look at a - you see that I can't type in any values that's because I designed this product or this product was designed in the previous round and it didn't finish Rd 80 will actually finish in March of this year so next year I can modify it but this year IQ so you get into problems whenever you have are any projects lasted a really long time and generally speaking it's best try and finish them inside of a single year so let me back off a little bit here until I can get able to go as high tech as possible without crossing over so I'm going to back off by point 5 in both of these cases so I'm going to make the size smaller and this sorry the performance smaller and the size larger I hit recalculate and you can see Abel now is kind of backing up a little bit the set of finishing in August initiated May but is still 2020 so I'm going to back off a little bit more let's take off another point 5 so now I'm going to be 8.5 and 1125 now I see that my product is going to finish are indeed in December so I'm going to take the entire year to design a new product and get my plant ready to go and when it hits the 10th of December the age is going to drop in half and my products going to be ready to go the next year in this new position if I push this any further it's not going to change it's going to be exactly what it is now for two years instead of just one year now one misconception that often happens is that when you are in d you think your product may not sell which is just not true when you're in the middle of an R&D project for an existing product your your product is going to keep on selling this sells at the old position I think in this way right um when a car maker comes out with a new car you're not going they're not going to stop selling the previous one while they're developing the next one instead they sell the old version while they work on the new version out here now the last thing in the games what's called mtbf mtbf has a range as well as we look at reliability in the high-tech market they want it from 1700 2300 in the low tech market they want it from 1,400 to 20,000 so in this because I'm targeting low tech I'm keeping it at 20,000 right now with Abel if I wanted to make it a high tech I could change this to a 3 and then it would change the mtbf to the higher ratio which makes it look more like a high tech product now when I bump that up you notice that the cost of materials actually increases that's because mtbf is just a way of referring to the quality materials that you're using if I change this down to 1700 we'll see what my product cost is going to be lower than it was with the higher quality of components so instead of $60 is now about 1415 dollars generally speaking what I found in the way the capsule works is that you almost never get a lot of benefit from cutting the quality of your product the simple solution is usually to keep that as high as possible for your market so if you're targeting low tech customers keep 20,000 if you're doing both high and low customers do 20,000 if we're just targeting high customers to keep it at 23,000 there's really not a lot of benefit to cutting the material cost down generally speaking the the benefit in terms of sales is going to outweigh the the cost cutting now the last thing you look at before we go off of this video looking at R&D is think about how to weigh the benefit of these different choices that you're making if you look at the low tech segments you can see that it's ordered price age reliability in position in the
high-tech market it's ordered positioned age price reliability what that means is that each market segment has different preferences if you're targeting a high tech product ideal position is very very important there's a number one thing you can do to make a product good number two is age they want it in the right position with very low age now if you compare this to the low tech product low tech product position is the very last thing in other words position is not that critical for low tech as long as it's inside the circle you're pretty much okay instead what you want to focus on are the other things like age age is probably the most critical thing for low tech Rd decisions here price is important but age is typically the one that gets people in trouble if you look at age they want it to be ideal age of three what this means is that you can't hit the ideal position every single round if you are d every round to be at the exact ideal position you're going to drop your age by half every single round what that means is that your product is going to get younger and younger younger until it hits the bottom 121.5 and at that point it just kind of hovers around that bouncing up and down as you do your R&D projects but you really want to get it around 3 so really you need to Rd basically every other year and bump the position just to make it have the edge drop to a good reach so it kind of hovers between 2 & 4 and if you look at age there's really no change between a 2 and a 4 they're sort of equally above and below are the same benefit or same hurt to your company so anyway so that was a brief overview of how R&D works with the captain them Queens College, City University of New York.
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