A systematic analysis of the areas of product optimisation

1. A systematic analysis of the areas of product optimisation
Frank Burgard*
, Josef Schlattmann
Laboratorium fuÈr Konstruktionslehre, UniversitaÈt Paderborn, 33098 Paderborn, Germany
Accepted 5 September 2001
Abstract
This paper considers technical optimisation of products without ignoring the economical aspect. It shows the different starting points of
the optimising process in general and a systematic view on competitors' products in particular. # 2001 Published by Elsevier Science B.V.
Keywords: Optimising; Competitors products; Early warning system
1. Introduction
The foundation of a business is the department of devel-
opment. This is where the product gets created. If it is
successful on the market it will ensure the ®rm's future,
the failure of the product can jeopardise or destroy the ®rm.
In the department for development the product's shape is
established, and its software is developed. In a nutshell all
the work done here, which the customer sees in the form
of the product, inducing the customer to buy the product
on offer.
In general, the term product means goods (divided into
goods for application and goods for consumption) service,
energy services and the combinations of these. When the
term product is used hereafter it means the goods for
application and consumption.
It can be said that the product is a market success if its
qualities comply with the customer's expectations. Never-
theless, these demands are subject to steady change (Figs. 1
and 2) [1].
Product optimisation is de®ned as the adaptation of
qualities to the customer's expectations while taking into
consideration the company's self-interest.
In general, an optimal solution is achieved when the aim
of value is the solution of a maximising problem which
cannot be outdone by any other solution [2].
In this case the objective is the difference between the
consumers and the manufacturer's usage value (Fig. 3).
The process of product development is non-algorithmic
process [4]. Whatever be there methods adopted, a success-
ful product is dependent ®nally on its developer's heuristic
capabilities. This procedure is known as the ``Monte Carlo
method''.
A precondition for the success of the product is the
market's receptiveness to act in accordance with the con-
sumer's needs. The success is also dependent on the quality
of products manufactured by other companies. Different
businesses in¯uence the market as competitors or as poten-
tial suppliers. One way of increasing product quality is by
using external services.
These external services can be gained by integrating
products from other ®rms or by speci®c analysis of the
competitor's products. The reason why these services are
included is quite simple. The required functions can be
realised by using this knowledge in accordance with a
justi®able relation to the cost. This course of events takes
place at random during the development process. Never-
theless, sooner or later, random procedures are destined to
fail. The approach introduced here should show the com-
plexity of the optimisation process on the one hand and
present the basis for an optimisation method in its entirety
on the other.
2. Forms of optimisation and its risks
In principle, forms of optimisation can be differentiated.
The functional optimisation creates a differentiating advan-
tage. A noticeable total increase of a single product's
characteristics enables a better satisfaction of the customer's
needs. Further, it gives your own product a qualitative
advantage over other competitor's products while the price
remains stable (Fig. 4).
However, with the help of production engineering opti-
misation, it is possible to gain a cost advantage on the market
Journal of Materials Processing Technology 117 (2001) 222±225
*
Corresponding author.
E-mail address: f.burgard@gmx.net (F. Burgard).
0924-0136/01/$ ± see front matter # 2001 Published by Elsevier Science B.V.
PII: S 0 9 2 4 - 0 1 3 6 ( 0 1 ) 0 1 1 2 2 - 0

2. for your product. By means of more ef®cient production
procedures products or single components of products can
be manufactured more cost effectively. It is possible to carry
out this optimisation process in isolation, but a combination
of both forms is also possible.
Every optimisation process has risks attached to it, due to
the fact that this process involves signi®cant expenses.
Therefore the aim must be to minimise the total risk invol-
ved. The total risk results from the addition of the single
risks. The local minimum shows the point of maximum
optimisation effectiveness and maximum optimisation
ef®ciency (Fig. 5).
3. Sources of optimisation
It is part of human nature to want to improve things as well
as processes. This is the only way man can satisfy his
cardinal instincts (his drive to own possessions and have
prestige and social contacts) [5]. Generally there are internal
and external factors that initiate the optimisation of a
product. If internal factors are responsible for this, then this
is usually due to certain amount of discontent with your
own product.
External factors that initiate the desire to optimise a
product result mainly from the desire to do just as well Ð
if not better than the competition. It is seldom the case that
Fig. 1. Existing product qualities.
Fig. 2. Expected product qualities.
Fig. 3. The total profit of a product [3].
Fig. 4. The differentiating advantage/cost advantage.
F. Burgard, J. Schlattmann / Journal of Materials Processing Technology 117 (2001) 222±225 223

3. the process of optimising a product is an intuitive act.
Nevertheless this does occur, but even then we have to
assume that a certain amount of systematic action was taken.
It is far more effective and ef®cient to use the ®ve steps for
the process of problem solving (information, de®nition,
creation, assessment, and selection) for optimising a product
and organising it systematically. The ways to a product
optimum arranged by impulsion are shown in Fig. 6.
4. Approaches to the analysis of competitor's products
The earlier a company gets an insight into its competitor's
activities the more effective and ef®cient it can respond to
them. Competition bench marking, which concentrates on
products already on the market, is common practice and is
undoubtedly, a very effective tool for product development.
By classifying functional structures according to your own
products and comparable products of competitors and by
using technological portfolios it is relatively easy to improve
products.
Patent databases are a very productive source for gaining
knowledge that can be useful for the optimising process.
With their help, it is possible to recognise the competition's
product development activities, maybe ®nd new employees
or just discover patents by companies alien to the trade. If a
licensing fee is paid, it may be used to increase the quality of
your products.
In order for this to work successfully it is necessary to
process and organise patent information systematically
with the help of an early warning system (EWS) (Fig. 7).
Additionally, this system has to undergo a continuous
Fig. 5. Technical risk versus economic risk.
Fig. 6. The ways to the product optimum arranged by impulsion.
Fig. 7. Early warning system (EWS).
224 F. Burgard, J. Schlattmann / Journal of Materials Processing Technology 117 (2001) 222±225

4. improvement process. An important quality characteristic
of the EWS, apart from the available assessment methods,
is the choice of its indicators. These are mainly responsible
for its productivity as well as its comprehensibility.
5. Conclusion
Optimising a product is a development task as well as a
managerial one. Increasing performance is the pre-condition
for saving costs for material, energy and staff, increasing
product life and minimising costs, etc. These are vital points
if a company wants to remain a success in the market.
Further, it is possible for a company to maintain its position
in the market only by continuously improving existing
products. It is quite clear that a permanent tightrope walk
between what is technically possible and what is necessary
for increase of sales is inevitable. Accordingly, it is abso-
lutely necessary to go about optimising a product system-
atically. Anyone relying on random improvements is certain
to be left behind by his competitors. It is essential for every
company to implement a method to optimise its products.
References
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senschaft und Praxis, Ludwigsburg, Berlin, 1992.
[2] Th. Gabler, Gabler Witschaftslexikon, Betriebswirtschaftlicher Verlag,
Wiesbaden, 1998.
[3] W. Jorden, Skript zur Lehrveranstaltung Konstruktionssystematik,
Paderborn, 1997.
[4] H.-J. Franke, Untersuchungen zur Algorithmisierbarkeit des Kon-
struktionsprozesses, VDI-Verlag, DuÈsseldorf, 1976.
[5] W. Jorden, Skript zur Lehrveranstaltung Projektverfolgung und
FuÈhrung, Paderborn, 1996.
F. Burgard, J. Schlattmann / Journal of Materials Processing Technology 117 (2001) 222±225 225