Foundations of a Good Product Development Process Bill Hill Today’s topics… § Foundations of Medical Device Development § What do successful device developers do differently? § Discussion and Questions Research | Commercialisation | Business Growth Product development is the translation of IP into a finished product – transforming knowledge into improved patient outcomes and creating commercial value Research Initial Applied Research Ongoing Research Commercialisation New Research Directions Business Growth Applied Research Intellectual Property • Patents • Copyright • Know-How + Commercialisation Plan • Value Proposition • Market /User Research • Development Strategy • Route-to-market • Funding Methods Manufacture & Distribution Next Generation Product Market & Feedback Research and Product Development | Different Process - Different Outcome Research Nature of project Commercial Aspects Success Measures Product Development • Investigative process • Well-defined, managed process • Outcome unlikely to be well defined • Lower (generally) technical uncertainty • High (generally) technical uncertainty • (More) Predictable • Commercial prospects (may be) unclear • Business case defined • Nature, size (and existence?) of market unclear • Route-to-market identified • Financial: generally none • Qualitative: leverage core capabilities, develop a strategic capability • Market and customers defined • Financial: eg NPV, profit, sales volumes, market share • Qualitative: eg leverage/grow core competencies Timeframe • Highly variable • 6 months to 3+ years Outcome • New knowledge, technology or platform SEE NEXT PAGE • Technical capability • Potentially (broad) IP Hydrix modified from “Managing Technology Development Projects”, Robert G Cooper, 2007 Outcome of Product Development A product design and a manufacturing process that will deliver… …a user-friendly device …with reliable and accurate performance …that is safe …meets all regulatory requirements …can be manufactured for a commercially viable cost …with the lowest possible investment …in the shortest possible time. www.Hydrix.com Outcome of Product Development All of these things are interrelated and there will be many decisions made during a development on the way to delivering a final product. Regulatory Framework Product Features Product Cost TRADE OFF Investment Time to Market What is the processes for delivering this? www.Hydrix.com Foundations of a Good Medical Device Development Process There are 3 key elements that underpin a good medical device development process: 1. A comprehensive set of Design Inputs (requirements) 2. Good Risk Management 3. A well thought out Development Plan (Project Plan) getting these correct will build a solid foundation for the device development project. www.Hydrix.com Design Inputs 820.3(f) Design input means the physical and performance requirements of a device that are used as a basis for device design. Page 8 § Market § User needs § Regulations § Standards § Previous designs § Competitor designs § Outputs of Risk Management § etc. www.Hydrix.com Design Inputs A comprehensive set of Design Inputs allows competing concepts to be assessed early and significantly reduces the potential lost time Design Inputs Defining the Product: concept exploration, easy to experiment and change Design Outputs Build and test: difficult to change, lost time for rework and expensive Design Inputs A clear understanding of the design inputs also helps with any trade-off decisions that may need to be made at the program level Regulatory Framework • • • • • • • User Needs Interface Analyses Outputs Safety Regulations etc • Resources • Funding • etc Product Features Product Cost • • • • Market Needs Manufacturing Process Regulatory Testing etc TRADE OFF Investment Page 10 www.Hydrix.com Schedule • Market window • Manufacture setup • etc Risk Management Medical device development is an exercise in Risk Management UNMANAGED RISK Amount at Risk Resulting Level of Risk Probability of Occurrence X Time = Time Time MANAGED RISK Amount at Risk X Time Resulting Level of Risk Probability of Occurrence = Time Time Risk Management ISO14971:2007 Medical Devices. Application of risk management to medical devices. • specifies a process for a manufacturer to identify the hazards associated with medical devices…estimate and evaluate the associated risks, to control these risks, and to monitor the effectiveness of the controls Risk Identification and Management is a structured process and team effort Systems Manufacturing Nurse Dr Software Electronic Service Tech Project Manager The first principle is that you must not fool yourself and you’re the easiest person to fool Richard P. Feynman, Nobel Laureate Page 12 www.Hydrix.com Risk Management “Risk management begins with the development of the design input requirements. As the design evolves, new risks may become evident. To systematically identify and, when necessary, reduce these risks, the risk management process is integrated into the design process. In this way, unacceptable risks can be identified and managed earlier in the design process when changes are easier to make and less costly.”1 Minimise risk by : • using best practice development tools and processes • iterative testing • staged development approach Minimise risk by: • developing thorough understanding of users, technical options, regulatory drivers, etc DEVELOPMENT RISK MANUFACTURE RISK TECHNOLOGY RISK MARKET RISK Minimise risk by: • ensuring manufacturing requirements have been included • manufacturing process tested 1. DESIGN CONTROL GUIDANCE FOR MEDICAL DEVICE MANUFACTURERS, FDA, 1997. Minimise Market by: • thoroughly managing risk throughout the project. Development Plan If you don’t know where you’re going you might not get there! Yogi Berra Conceived by Research Built by Manufacturing Improved by Marketing Installed Designed by Engineering What the customer wanted Development Plans define how you will manage the design process to deliver a product that will meet the customer’s needs www.Hydrix.com Development Plan www.Hydrix.com Development Plan 820.30(b) Design and development planning. • describes the design and development activities • defines the roles and responsibilities for implementation, • defines the interfaces with different groups or activities providing input to the design and development process. Standards SOPs RACI Design Outputs Design Inputs Clinical Marketing Manufacturing Test Development Plan Product Development is complex. Hope is not a viable strategy… . …you need a well thought out Development Plan to guide your activities throughout the project. What do successful product developers do? Successful Products are designed differently Successful companies expend extra effort in some key product development areas that enables them to better understand and manage their risk Additional Effort by “Winners” 35% development 30% financial analysis 100% technical assessment 300% successes failures market assessment 0 20 40 60 80 100 Relative Effort Good product development is underpinned by thorough upfront analysis. source: Kleinschmidt et al “Resource Allocation in the New Product Process” Industrial Marketing Management 17, 3, (1998) www.Hydrix.com The additional effort impacts the whole development process The additional investment of effort allows the team to develop a clear sense of risks that need to be managed throughout the whole process. Financial Analyses • Product costs Engineering Development • System Engineering • Prototyping • User | Clinical Testing • Reliability Testing • DFM • Design Reviews • Prelim Reg Testing DEVELOPMENT RISK Technical Assessment • System Analyses TECHNOLOGY • Technical options RISK • Regulatory • User design • Concept exploration Market Assessment • Users • Market size • Distribution channels Financial Analyses • Product costs Financial Analyses • Component costs • Manufacturing costs • Financing costs MANUFACTURE RISK MARKET RISK Engineering Development • System Engineering • Reliability Testing • Supplier Assessment • Manufacturability Market Assessment • Users • Size • Price points • Distribution channels Financial Analyses • Product pricing Summary The foundation for a good product development process: 1. comprehensive set of Design Inputs – “if you don’t know where you are going…” 2. a systematic focus on Risk Management - “…do not fool yourself…” 3. a well thought out and documented Development Plan – “…bring the future into the present…” Getting these right will provide a solid foundation for your development. 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