production management(thelatest)

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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!!!

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    The path to develop successful new products

    a) Talk to the customer

    b) nurture a project culture

    c) Keep it focused

    Operations Management

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    New Product Development (NPD)

    Fuzzy Front End

    = the messy getting ended period of a new product engeneeringdevelopment. 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 canconsume 50% of development time. It is where major commitmentsare made involving time, money and the products nature setting

    the course for the entire project and final end product!

    Operations Management

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    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

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    Example pull: New Porsche car > branding > existing need

    Example push: New perfume > recognition > sleeping need

    Operations Management

    Market introduction strategy

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    New Product Development Process

    Operations Management

    Organized NPD process following specific phases, often formallydefined in company documents. This is to gain control and toensure 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

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    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.

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    b) Product design

    Operations Management

    Design the physical new product

    From general idea to set of product specs and engeneeringdrawings/images in sufficient detail to build prototypes.

    Product design requires many different trade-offs, such as: Product costs Quality (features) Schedule

    Simultaniously: Process design

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    c) Pilot production/Testing

    Operations Management

    In many cases testing! Hardware Software Lifetime tests of reliability Market test

    Production process gets finalized!

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    NPD product design process

    Operations Management

    Conceptdevelopment

    Pilot / Testing

    Product design Prelim. Processdesign

    Final processdesign

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    Cross functional product design

    Operations Management

    Sequential approach

    Marketing Engeneering Operations

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    Cross functional product design

    Operations Management

    Concurrent engeneering

    Marketing EngeneeringOperations

    Effort

    Time

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    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?

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    Quality Function Deployment

    Operations Management

    Quality Function deployment (QFD) = translating the ordinary

    language obtained from the customer to technicalrequirements understood by engineers. Or, in other words ,linking customer requirements to technical specifications.

    House of quality!

    Consists of:

    Customer attributes

    Engeneering characterisitcs

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    Value Analysis

    Operations Management

    It is not only about meeting customer requirments but also aboutensuring 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

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    Modular Design

    Operations Management

    DFM also contains the aspect of how to simplify the design ofmultiple products.

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    Value Analysis

    Operations Management

    It is not only about meeting customer requirments but also aboutensuring 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