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Lecture 3 - Corporate Structure in chemical product design
- 1. Gani, Comp. Chem. Engg., 28 (2004), p. 2441 2457.
- 2. A Typical FMCG Company Villadsen, Chem. Eng. Sci., 52(17), 2857 2864 (1997).
- 3. Changes in the Chemical Industries Commodity manufacturers are facing a crisis: Optimization and restructuring (downsizing) are not working. Ruthless minimization of research and concentration on in-house efficiency Many firms are leaving the chemical business Some are turning to specialty products.
- 4. Changes in the Chemical Industries
- 5. Changes in the Chemical Industries
- 6. Changes in Corporate Culture Corporations organize product development in two ways: Organization by function Organization by project Both can be effective Functional organization is like a chemical reaction in series. Project organization is like a chemical reaction in parallel.
- 8. Corporate Strategy: Market pull vs. Technology push Necessity is the mother of invention Market pull: there is a market looking for a technology, e.g., Freon. Technology push: there is a technology looking for a market, e.g., Botox. A platform technology is a technology successful in one or more markets and has potential applications in many more markets.
- 9. Market Pull vs. Technology Push
- 10. The Product Design Procedure Product design depends on four steps: Needs. What needs should the product fulfill? Ideas. What different products could satisfy these needs? Selection. Which ideas are the most promising? Manufacture. How can we make the product in commercial quantities? Application of this template leads to new features of the design process. The entire course is organized around this procedure.
- 11. Criticisms of this procedure Not general (yes, the steps will usually have to be iteratively sequenced). Management, not technology, is the key (no, can management circumvent the second law of thermodynamics?). Product design is a part of process design (no, we must go beyond process design, as shown next).
- 12. Process Design vs. Product Design Product design emphasizes decisions made before those of process design. In process design we know what the product is; not so in product design. Commodity chemical manufacture best served by process design (no product differentiation). Specialty product development best served by product design (product is differentiated). Focus of process design is efficient manufacture (recycle, heat integration, optimization, etc.) ; focus of product design is speed to reach the market place.
- 13. Process Design vs. Product Design Process Design Product Design 1. Batch vs. Continuous Process 2. Inputs and Outputs 3. Reactors and Recycles 4. Separations and Heat Integration 1. Identify Customer Needs 2. Generate Ideas to Meet Needs 3. Select among Ideas 4. Manufacture Product