New Product Case Study Series Part 2 D

part 2 d of 7 part Case Study

1 Product development

Luxury brand Case Study

2

Notes

3

Luxury Brand

Business

Development

Case Study Part II D

4

5 Functional strategic requirements

strategic business unit

Manufacturing strategies

6

Manufacturing plan

7

manufacturing's plan to accomplish the tasks necessary to be ready to run production on schedule and within budget

Manufacturing plan

8

Manufacturing plan

9

prepare detailed

schedule of

manufacturing

activities

Manufacturing plan

10

choose manufacturing location make vs. buy analysis prepare manufacturing feasibility statement review existing components and processes

Manufacturing plan

11

address

Manufacturing Plan

12

Manufacturing Plan

13

Manufacturing budget

2002/03 $ 84,000

dedicated AME 2002/03 $210,000

14

Purchasing Plan

15

including goals and objectives for the specific project

Purchasing Plan

16

manufacturing plan and input from the team

Purchasing Plan

17

Purchasing Plan

18

make vs. buy

tooling plans

identification of key risk

Sourcing strategies

19

Sourcing strategies

20

partnership development Initiative - sourced product

mortise lock case

deadbolt latch

cylinders, spindles and strikes

forgings and castings

keys and lpp's

packaging

Sourcing budget

sourcing team member

21

Sourcing budget

22

Sourcing budget

2002/03 sourcing budget

$168,000

23

24 Competitive sourcing

sourcing

Bronze craft (new hampshire)

india int’l (india)

frank allert (england)

source bronze castings

25

sourcing

wah yuet (china)

Waltec

(canada)

Amita

(china)

source brass forgings

26

sourcing

tupai (portugal)

test lab qualified as grade two

tong lung (taiwan)

Accurate (connecticut)

high quality with great reputation volume capabilities

27

sourcing

Tupai (Portugal)

Tong Lung (Taiwan)

Wah Yuet (China)

ILCO (USA)

28

sourcing

29

Mortise Case Research

30


31


32


33

Bronze casting research

34


35


36

Mortise handleset design guide

37


38


39


40


41


width

42

Levers and knobs design guide

43

Levers and knobs design guide

44

a significant role in both the

movement of product through

channels and providing the

quick lead-time required to

meet high service levels

Distribution strategies

45

flow through of product can deliver an increase in sales and improve our ability to price the product for higher margin returns

Distribution strategies

46

25% sales increase

delivery will be one of single most important factors in gaining market share Distribution strategies

47

48 Competitive distribution

Begin Quality plans

49

Begin Quality plans

50

the term "quality plan" includes several specific types of plans

Begin Quality plans

51

Begin Quality plans

52

Begin Quality plans

53

a “unit" quality plan identifies the checks tests and required frequency to be performed on the assembly line prior to packaging

Begin Quality plans

54

Begin Quality plans

55

this must be successfully completed before proceeding to full production

“ "

.

Begin Quality plans

56

Begin Quality plans

57

°

Quality budget

58

Quality budget

insure

component

compatibility

for all sourced

product

periodical inspections

of sourced components

59

issue resolution with consumer service action

Quality budget

60

Quality budget

61

Quality budget

62

quality inspectors 2002/03

Quality budget

$80,000

63

Begin Quality Plans

64

Begin Quality Plans

65

Begin Quality Plans

66

Preliminary engineering test plans

67

details a list of all necessary tests "to prove design" on the product's overall performance, safety and reliability and is followed throughout the development phase

Preliminary test plans

68

competitive review

technical feasibility

design review #1

testing includes:

relevant national standards

test procedures

safety test

field user type testing if applicable

test plan finalized


69

one test plan to be written to cover all

phases of testing

test plan shall be written for all new

development programs

test plan also includes a time frame in

order that work-load programs such as

“enterprise” can be utilized, and any test

equipment can be procured in a timely

manner

test plan will be modified based on latest

inputs

test plan to be agreed upon all members of

project team


70

prelim

inary

test

plan

Preliminary Product Marketing Specs

71

following the preliminary research

phase, preliminary product/market

specs should be developed to provide

input into the development of the id

renderings/models and technical

feasibility stage of the program


72


73


74

Design Review #1

75

an

independe

nt review

of the

concept

layout is

required

Design Review #1

76

an independent

review of the

concept layout

is required

Design Review #1

77

the concept

layout should

contain

sufficient

detail to

define the

components

Design Review #1

78

participants in the

review should include

those persons outside

of the project team

who are highly

experienced with design

elements, systems and

processes

Design Review #1

79

Design Review #1

80

Design Review #1

81

Lash UP Models

82

Lash UP Models

83

Lash UP Models

84

Lash UP Models

85

Technical Development

86

test work should confirm

that initial concepts are

sufficient to allow layout drawings to be started

define the product concepts in the form of sketches, drawings, and models


87


88


89

Parts Sketches

90

sketches of each key

component, enabling

functions to cost

parts and assemblies

Parts Sketches

91

Parts Sketches

92

develop

sketches

of parts

list of

parts'

cost

Parts Sketches

93

Exterior 3D model

94

Exterior 3D model

95

Exterior 3D model

96

Exterior 3D model

97

Define Suppliers

98

selection of the most appropriate suppliers

to ensure product and program success

Define Suppliers

99

preliminary parts list design principle and concept drawings volume and timing requirements

Define Suppliers

10

0

review potential sources evaluate new or better sources commodity agreement a must confirm supplier commitment to support program compile overall sourcing plan project team approval

Define Suppliers

10

1

authorized sourcing plan

Concept FMEA

10

2

early failure mode and effect analysis

using concept models, pans sketches, etc.

to predict probable product and/or

process failure modes and the effect on

product quality/customer satisfaction

Concept FMEA

103

Concept FMEA

104

Concept FMEA

105

Preliminary Costs

106

first attempt at

determining product

cost, tooling investment

and capital estimate

from supplier input

Preliminary Costs

107

concept sketches preliminary parts list preliminary purchasing plan preliminary manufacturing plan preliminary marketing specs preliminary quality plan

Preliminary Costs

108

Preliminary Costs

109

Preliminary parts list

110

initial parts lists and structure for development of a bill of material (BOM) system


111


112


113

Safety hazard assessment

114


115

te

am


116


117


118

Level #2 research

119

confirms the proposed products will deliver/exceed requirements

Level #2 research

120

research

should be

undertaken in a

representative

sample of

markets to

ensure

completion

prior to

milestone 3

Level #2 research

121

Level #2 research

122

Level #2 research

123

Level #2 research

124

Level #2 research

125

Industrial design model

126

finished" appearance model, properly weighted and balanced, containing

surface details and appropriate color and

graphic treatments


127

function, application, features similar B&D or competitive products mechanical components and method of assembly, level 1 end user research results latest customer input product range (lf known or applicable)


128


129

Product proposal

130

communicate to the organization the products in detail as it evolved from the original trigger document and preliminary product/market specs

Product proposal

131

latest marketing, manufacturing, and design information arising from the original trigger document

Product proposal

132

Product proposal

133

planned launch date

planned volumes

latest estimated manufacturing costs

latest estimated capital investment

required, projected sales, profits and

IRR (including cannibalization)

statement whether advance CAR is

required and estimated sum involved

propose product differentiation

opportunities and requirements

Product proposal

134

completed proposal with signed approvals by program manger, team members and functional heads

will be important in the future, management of a new business unit reporting and budgeting required will be key to managing the business to financial success

Finance strategies

135

°

Finance budget

P&L

136

Finance budget

$70,000

137

Research & development strategies

138

Research & development strategies

139

milestone project support industrial design group support field and manufacturing travel packaging design engineering support operating assembly design

engineering support finish testing/component testing first article inspections/quality assessments

research & development

140

Logistics strategies

141


142


143

Five year proforma

144

Five year proforma

145

Five year proforma

146

Five year proforma

147

Five year proforma

148

Five year proforma

149

Preliminary budget

150

Preliminary budget

151

Preliminary budget

152

$7,095,154

Preliminary budget

153

Capital requirements

154


155


156


157

/..-...--.....

!' ' !

highest quality product components

products

158

/..-...--.....

!' ' !

mortise lock

case tubular and

deadbolt latch cylinders /keys

forgings and castings Finishes

packaging

products

design standards

159

/..-...--.....

!' ' !

products

160

/..-...--.....

!' ' !

product research 2002/03

products

$200,000

161

Budget requirements phase 1

162

Channel marketing programs

163


164

Marketing communications budget

165

Channel marketing launch requirements

166

Brand communications budget

launch $560,000

Merchandiser / literature $680,000

channel programs $200,000

167

Brand communications budget

$1,602,000

168

Customer / consumer service budget

$125,000

169


$75,000

170


$5,000

171


$205,000

172


173

Sales budget

regional trend and

performance update

174

Sales budget

monthly forecast sales, service and product training

this team will be responsible for the future outlook and will provide a three month moving window

175

Sales budget

176

Sales & consumer service budget

sales

customer service

consumer service

177

Next steps

develop

SBU for

2002

178

Next steps

179

Next steps

budget

plan

for 2003

180

Next steps

separate

business

unit 2003

181

Next steps

Phase II

implement communications plan

develop second product offering

182

Luxury Brand

Business

Development

Case Study Part II D

183

New Product Case Study Series Part 2 D

Business

Transcript of New Product Case Study Series Part 2 D