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Production Management (TheLatest)

The document discusses the new product development (NPD) process. It describes the 8 stages of NPD as idea generation, screening, concept development and testing, business analysis, beta testing, technical implementation, commercialization, and pricing. It also discusses the "fuzzy front end" where companies decide whether to invest in a new product concept. Key aspects of NPD include cross-functional product design, supply chain collaboration, quality function deployment to link customer needs to technical specifications, and value analysis to ensure manufacturability.

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Hido Heydaroff
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453 views

Production Management (TheLatest)

The document discusses the new product development (NPD) process. It describes the 8 stages of NPD as idea generation, screening, concept development and testing, business analysis, beta testing, technical implementation, commercialization, and pricing. It also discusses the "fuzzy front end" where companies decide whether to invest in a new product concept. Key aspects of NPD include cross-functional product design, supply chain collaboration, quality function deployment to link customer needs to technical specifications, and value analysis to ensure manufacturability.

Uploaded by

Hido Heydaroff
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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New Product Development (NPD) New product to grow market share or within overall strategic process of product life

cycle
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!!!

Operations Management

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

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

Operations Management

Market introduction strategy

Example pull: New Porsche car > branding > existing need Example push: New perfume > recognition > sleeping need
Operations Management

New Product Development Process


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

Operations Management

a) Concept development

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.

Operations Management

b) Product design
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 Operations Management

c) Pilot production/Testing
In many cases testing!
Hardware Software Lifetime tests of reliability Market test

Production process gets finalized!

Operations Management

NPD product design process


Concept development

Product design

Prelim. Process design

Pilot / Testing

Final process design

Operations Management

Cross functional product design


Sequential approach

Marketing

Engeneering

Operations

Operations Management

Cross functional product design


Concurrent engeneering Marketing Engeneering Operations Effort

Time Operations Management

Supply chain collaboration


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? Operations Management

Quality Function Deployment


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

Operations Management

Value Analysis
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

Operations Management

Modular Design
DFM also contains the aspect of how to simplify the design of multiple products.

Operations Management

Value Analysis
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

Operations Management

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