Traditional methods of cost reduction like simplifying designs, standardizing components, and lowering costs sourcing are becoming less effective and the competition is more aggressive. Ultra low cost product development (ULCPD) is a new concept that involves completely rethinking how products are designed and manufactured, not just reducing costs. Examples of ULCPD include the Tata Nano car that was designed and built with a target price of $2,500, and the $100 laptop designed by MIT for children in developing countries. ULCPD requires challenging traditional mindsets and questioning assumptions, as well as involving suppliers early and taking innovative approaches to manufacturing, sourcing, and business models.

1. Pradeep Saha Ametek Floorcare and Specialty Motors [email_address] January 2011 Ultra Low Cost Product Development (ULCPD)

4. Automotive Examples ** Adjusted to equivalent 2007 US dollars 1908 2008 1961 1956

7. Advanced Medicine 10 Years Ago Today With Ultra Low Cost Thinking Cost of Development Few hundred million > $1B <$10M Time to develop 10 years 15 years 5 years Cost of Treatment $10,000 $20,000 $100

8. Traditional New Product Development Ultra Low Cost Product Development