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 Management
Operations
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