Opt-out options in new product co-development partnerships

We study three contractual arrangements—co-development, licensing, and co-development with opt-out options—for the joint development of new products between a small and financially constrained innovator firm and a large technology company, as in the case of a biotech innovator and a major pharma company. We formulate our arguments in the context of a two-stage model, characterized by technical risk and stochastically changing cost and revenue projections. The model captures the main disadvantages of traditional co-development and licensing arrangements: in co-development the small firm runs a risk of running out of capital as future costs rise, while licensing for milestone and royalty (M&R) payments, which eliminates the latter risk, introduces inefficiency, as profitable projects might be abandoned. Counter to intuition we show that the biotech's payoff in a licensing contract is not monotonically increasing in the M&R terms. We also show that an option clause in a co-development contract that gives the small firm the right but not the obligation to opt out of co-development and into a pre-agreed licensing arrangement avoids the problems associated with fully committed co-development or licensing: the probability that the small firm will run out of capital is greatly reduced or completely eliminated and profitable projects are never abandoned.

An optimal design process for an adequate product?

The 'optimal' or 'best' design process may be the shortest or cheapest process, or the one that leads to a particularly desirable product, or to a reliable and maintainable product, or to a manufacturable product, or some combination of all of these. It is likely to satisfy the aspirations of the organisation to invest an appropriate amount of resource in the development of a specific new market opportunity, set in the context of longer-term business goals. This paper describes the progress made in over ten years of research on process modelling undertaken at the Cambridge Engineering Design Centre to identify an 'optimal' design process with which to develop an 'adequate' product.

Dual gate photo-thin film transistor with high photoconductive gain for high reliability, and low noise flat panel transparent imager

In this presentation, we report excellent electrical and optical characteristics of a dual gate photo thin film transistor (TFT) with bi-layer oxide channel, which was designed to provide virgin threshold voltage (V T) control, improve the negative bias illumination temperature stress (NBITS) reliability, and offer high photoconductive gain. In order to address the photo-sensitivity of phototransistor for the incoming light, top transparent InZnO (IZO) gate was employed, which enables the independent gate control of dual gate photo-TFT without having any degradation of its photosensitivity. Considering optimum initial V T and NBITS reliability for the device operation, the top gate bias was judiciously chosen. In addition, the speed and noise performance of the photo-TFT is competitive with silicon photo-transistors, and more importantly, its superiority lies in optical transparency. © 2011 IEEE.

Reusing steel and aluminum components at end of product life.

Reusing steel and aluminum components would reduce the need for new production, possibly creating significant savings in carbon emissions. Currently, there is no clearly defined set of strategies or barriers to enable assessment of appropriate component reuse; neither is it possible to predict future levels of reuse. This work presents a global assessment of the potential for reusing steel and aluminum components. A combination of top-down and bottom-up analyses is used to allocate the final destinations of current global steel and aluminum production to product types. A substantial catalogue has been compiled for these products characterizing key features of steel and aluminum components including design specifications, requirements in use, and current reuse patterns. To estimate the fraction of end-of-life metal components that could be reused for each product, the catalogue formed the basis of a set of semistructured interviews with industrial experts. The results suggest that approximately 30% of steel and aluminum used in current products could be reused. Barriers against reuse are examined, prompting recommendations for redesign that would facilitate future reuse.

Change impact on a product and its redesign process: A tool for knowledge capture and reuse

Change propagates, potentially affecting many aspects of a design and requiring much rework to implement. This article introduces a cross-domain approach to decompose a design and identify possible change propagation linkages, complemented by an interactive tool that generates dynamic checklists to assess change impact. The approach considers the information domains of requirements, functions, components, and the detail design process. Laboratory experiments using a vacuum cleaner suggest that cross-domain modelling helps analyse a design to create and capture the information required for change prediction. Further experiments using an electronic product show that this information, coupled with the interactive tool, helps to quickly and consistently assess the impact of a proposed change. © 2012 Springer-Verlag London Limited.

Product intelligence: Theory and practice

Are there any benefits in allowing orders and products to be able to manage their own progress through a supply chain? The notion of associating (and even embedding) information management and reasoning capabilities with a physical product has been discussed for over ten years now. This talk will review the notions of product intelligence and examine the rationales for these models and the practicality of their implementation. Both theoretical and practical issues associated with product intelligence will be examined referencing a number of trial deployments in manufacturing, logistics and aerospace equipment servicing. © 2012 IFAC.

Product scheduling for thermal energy reduction in papermaking industries

Papermaking is considered as an energy-intensive industry partly due to the fact that the machinery and procedures have been designed at the time when energy was both cheap and plentiful. A typical paper machine manufactures a variety of different products (grades) which impose variable per-unit raw material and energy costs to the mill. It is known that during a grade change operation the products are not market-worthy. Therefore, two different production regimes, i.e. steady state and grade transition can be recognised in papermaking practice. Among the costs associated with paper manufacture, the energy cost is 'more variable' due to (usually) day-to-day variations of the energy prices. Moreover, the production of a grade is often constrained by customer delivery time requirements. Given the above constraints and production modes, the product scheduling technique proposed in this paper aims at optimising the sequence of orders in a single machine so that the cost of production (mainly determined by the energy) is minimised. Simulation results obtained from a commercial board machine in the UK confirm the effectiveness of the proposed method. © 2011 IFAC.

Achieving Csiszár's source-channel coding exponent with product distributions

We derive a random-coding upper bound on the average probability of error of joint source-channel coding that recovers Csiszár's error exponent when used with product distributions over the channel inputs. Our proof technique for the error probability analysis employs a code construction for which source messages are assigned to subsets and codewords are generated with a distribution that depends on the subset. © 2012 IEEE.

Topologically invariant reaction coordinates for simulating multistate chemical reactions.

Evaluating free energy profiles of chemical reactions in complex environments such as solvents and enzymes requires extensive sampling, which is usually performed by potential of mean force (PMF) techniques. The reliability of the sampling depends not only on the applied PMF method but also the reaction coordinate space within the dynamics is biased. In contrast to simple geometrical collective variables that depend only on the positions of the atomic coordinates of the reactants, the E(gap) reaction coordinate (the energy difference obtained by evaluating a suitable force field using reactant and product state topologies) has the unique property that it is able to take environmental effects into account leading to better convergence, a more faithful description of the transition state ensemble and therefore more accurate free energy profiles. However, E(gap) requires predefined topologies and is therefore inapplicable for multistate reactions, in which the barrier between the chemically equivalent topologies is comparable to the reaction activation barrier, because undesired "side reactions" occur. In this article, we introduce a new energy-based collective variable by generalizing the E(gap) reaction coordinate such that it becomes invariant to equivalent topologies and show that it yields more well behaved free energy profiles than simpler geometrical reaction coordinates.