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New Product Development (NPD)New product to grow market share or within overall strategic process of product life cycle
Operations Management
8 Stages
1. Idea generation (research, SWOT, consumer trends, R&D, competitors)
2. Idea screening phase (eliminate unsound concepts by asking questions)
3. Concept development and testing (marketing & engeneering details)
4. Business analysis (i.e. Selling price, sales volume, profitability etc.)
5. Beta testing and market testing (prototype, packaging, interviews)
6. Technical implementation (i.e. Resources, requirments, quality, logistics...)
7. Commerzialization (post NPD – launch, adverts, promos, distribution...)
8. NPD pricing (value analysis, procuct costs
TIME!!!
New Product Development (NPD)
The path to develop successful new products
a) Talk to the customer
b) nurture a project culture
c) Keep it focused
Operations Management
New Product Development (NPD)
„Fuzzy Front End“
= the messy „getting ended“ period of a new product engeneering development. The front end where a company decides:
- to formulate a concept- not to invest resources- to go ahead an do into a structured process
Fuzzy Front End may not be an expensive part of the NDP but it can consume 50% of development time. It is where major commitments are made involving time, money and the products nature – setting
the course for the entire project and final end product!
Operations Management
Operations Management
Product Design
• Strategies for new product introduction• New product development process• Cross-functional product design• Supply chain collaboration• Quality function deployment• Value analysis• Modular design
Example pull: New Porsche car > „branding“ > existing needExample push: New perfume > „recognition“ > sleeping need
Operations Management
Market introduction strategy
New Product Development Process
Operations Management
Organized NPD process following specific phases, often formally defined in company documents. This is to gain control and to ensure that all important issues are addresses by NPD team > required by
ISO 9000
Typical phases
a) Concept development
b) Product design
c) Pilot production/testing
a) Concept development
Operations Management
• Generate ideas• Evaluate alternatives• Select one to go to next phase• Above decisison requires top managemenet approval• At time of decision cross-functional team gets established (if
not already existant) to design new product.
b) Product design
Operations Management
Design the physical new product
From general idea to set of product specs and engeneering drawings/images in sufficient detail to build prototypes.
Product design requires many different trade-offs, such as:• Product costs• Quality (features)• Schedule
Simultaniously: Process design
c) Pilot production/Testing
Operations Management
In many cases – testing!• Hardware• Software• Lifetime tests of reliability• Market test
Production process gets finalized!
NPD product design process
Operations Management
Concept development
Pilot / Testing
Product design Prelim. Process design
Final process design
Cross functional product design
Operations Management
Sequential approach
Marketing Engeneering Operations
Cross functional product design
Operations Management
Concurrent engeneering
Marketing EngeneeringOperations
Effort
Time
Supply chain collaboration
Operations Management
Customers & suppliers
Customers:• Ask the right questions!• Present incentives• Create collaborative technology platform• Include customers as advisors to design team
Suppliers• Technical espertise• Cabability – targets for costs, quality &product performance• Capacity – meet schedule & ramp-up to production?• Low-risk – what is the risk if supplier will not perform?
Quality Function Deployment
Operations Management
Quality Function deployment (QFD) = translating the ordinary language obtained from the customer to technical requirements understood by engineers. Or, in other words , linking customer requirements to technical specifications.
„House of quality!“
Consists of:
Customer attributes
Engeneering characterisitcs
Value Analysis
Operations Management
It is not only about meeting customer requirments but also about ensuring that the product is manufacturable!
Desing for Manufacturing (DFM) is an approach consisting of:
1. Simplification of prodcuts
2. Manufacture of multiple products using common part, processes and modules
Modular Design
Operations Management
DFM also contains the aspect of how to simplify the design of multiple products.
Value Analysis
Operations Management
It is not only about meeting customer requirments but also about ensuring that the product is manufacturable!
Desing for Manufacturing (DFM) is an approach consisting of:
1. Simplification of prodcuts
2. Manufacture of multiple products using common part, processes and modules