Webinar

New Product Introduction

5th November 2014

SMMTIndustry Forum

• During presentations (11:00 – 11:30) everyone will be muted so that only the presenter will be heard.

• The presentation will be followed by a Q&A session. Click on the hand symbol to show that you have a question or type your question in the question box.

• Recording will be made available after the webinar on the Industry Forum website.

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New Product Introduction

Dave Durbin

Introduction

Presenter: Dave DurbinIndustry Forum NPI Principal Engineer

Topic: New Product Introduction Principles• NPI principles and tools relevant to all industries• Application of NPI tools to low volume and single product

manufacture• The difference between NPI and project management• The Industry Forum NPI Effectiveness Assessment• Typical tailored support programmes to deliver NPI process

development tools

Typical Issues with NPI

Audience Feedback

Do you think your company has a good NPI process?

a) Structured, effective and followedb) Structured but not followedc) Not structured, individual skills determine

project results

Why is NPI important to get

right?

A typical NPI situation before improvement

Development Ramp Up

Performance

Number ofproblems

Audience Feedback

How many new product introductions achieve the expected outputs in terms of quality and delivery?

a) Above 75%b) Approximately 50%c) Approximately 25%d) None of theme) Don’t measure Q&D

……and the desired situation after improvement

Dev RampUp

Performance

Number ofproblems

Investment for Profitability

Cashflow

Time

Typical NPI approach

Best NPI approach

Investment for Profitability

Cashflow

Time

Too much resource

Quotation

Impact of Effective NPI Processes• Improve profitability• Improve customer

satisfaction• Eliminate waste and

duplication• Identify and deal with risk• Ensure timely decision

making• Consider resource

constraints• Improve team relationships• Reduce stress on individuals

Audience Feedback

How many new product introductions achieve the expected outputs in terms of vs budget/quote?

a) Above 75%b) Approximately 50%c) Approximately 25%d) Nonee) Cost vs budget/quote is not measured

Increasing customer

demands to demonstrate production capability

Request For

Quotation

Development

Production

NPI Process Scope

Commercial

Operations Supply Chain

Design

Engineering

Quality

Projects

Finance

R&D

IF’s Structured Approach

NPI-Related Tools

Advanced Product Quality

Planning

Design Failure Mode

& Effects Analysis

Process Failure Mode

& Effects Analysis

Measurement Systems Analysis

Statistical Process Control

Control Plan

Characteristic Matrix

Problem Solving

Production Part Approval

Process

Change Management

Risk Management

Project Planning

Project Management

Supplier Management

Teamworking

Meeting Effectiveness Capacity planning

Design for Manufacture

Escalation

Contract Review

Lessons Learned

Manufacturing Feasibility

Programme Feasibility

4-Field Mapping

NPI for Low Volume & Single

Product

Project Management

and NPI

IF NPI Effectiveness Assessment

Allocated In progress Finished ConfirmedColour as progress happens

New score after action complete

Score Target Action Status

Auto populate if score is less than target To be added manually

No. Observation Action Who When

36 Categories

1 2 3 4 5

Outline NPI process documented for Quality Management SystemSome milestone review s planned based on customer requestStakeholders listed but authority not clearly defined for w hole projectProject gates often missed

Process documented but poor detail of gate requirementsResponsibility & authority clearly specif ied for key decisions and tasks (e.g. RACI)Project gates occasionally missed

Detailed process to be follow ed not adjusted for individual projectsProject KPIs clearly definedAll gates achieved but some later than planTraining process in place to ensure all individuals engaged in the process have the necessary skills and competence to under take the assigned tasks (NPI tasks in skills matrix)

Detailed process w ith inputs and outputs clearly defined for all gatesAll gates achieved on timeProject KPIs achievedPlans and progress visually displayedManagers of project teams have required skills to lead NPI projects

Process modif ied for each project to determine start/end points and relevant gatesSome gates achieved ahead of timeLearning logs/improvement data capture system in placeEvidence of improving NPI process effectiveness (leadtime, cost, customer satisfaction, etc.)All people involved in NPI are signed off in skills matrix

Documented NPI gated process w ith description of each step and gate conditionsDocumented responsibilitiesData from previous product launches (target vs actual)Improvement data baseSkills matrix/training needs analysis

NPL PV Health Check - Stage 1, Q2 & Stage 4, Q7

1 1 1NPI is part of normal day to day job

Some project time allocated to low responsibility personnelSome budget allocated for NPI projects

Dedicated project managers in place w ith budgetCapacity planning in production to allow trial timeSenior level support evident for project activities

Dedicated PDR objectives/ budget/time allocated to roles according to project planTesting capacity planned, (availability of CMM, labs etc.)

Senior management allocate time to support project and ensure sufficient resourceSuppliers considered and involved in project activities

Organisation structureStrategic departmental/PDR objectivesTrials show n in production and testing capacity plansMeeting effectiveness metricsBudget allocation

1 1Contract review process completed including key assumptions (volume, technology, price, supplier, etc.)

Financial appraisal to confirm profitability of programmeDemonstrated ability to meet customer requirements

Similar experience w ith previous products used to inform assumptions

All stakeholders are involved in early stages of programme design

Lifecycle costs including end of life conditions understood and included

Contract review documentLearning points capture system documentationDetailed costingsFMEA

1 1Copy of standard plan template used - same for all NPI projects based on customer project reporting requirements

Project-specif ic plan developed w ith all milestones/gatew ays defined including performance targets at each stage

Critical path identified and leadtimes confirmedAll APQP requirements identif iedCustomer involved in cross-functional project teams

Gate inputs/outputs defined, decision authority clear, regular plan review s heldSimultaneous engineering applied to minimise overall leadtime

Project freeze points clearly follow ed, project FMEA performed to identify major risks to successful deliveryCustomer managed to ensure timely information received

Detailed project plan w ith targets and responsibilities identifiedClear project plan progress/KPI achievement visual displayProject review agendas/meeting minutes

1Involvement of people in business w ith decision making authority

Formal change management process agreed and follow edManagement-led regular review sSlippage in project communicated rapidly to decision maker

Change request forms are used and highlight impact of change on project deliverablesCustomer supports change management and escalation process

Affected functions involved in decision makingGood relationships developed w ith customer - contact points agreed

Contingency plans developed at project planning stageActions taken to mitigate risks

Documented processChange request forms usedDefined contacts and authoritiesContingency plans documented

RR G&MC Audit info - Tech package Q5

1 1 1Project plan is communicated to suppliers

Supply chain planning and scheduling includes trial requirementsCritical path items confirmed w ith suply chain

Clear commercial agreements in place specifying requirements and targets for each project stage

Supplier APQP plans developed and agreedSupplier development/support in place and effective

Supply chain actively managed to reduce leadtimes and mitigate risksSuppliers involved in cross-functional project teams

Supplier agreementsSupplier APQP plansTrials scheduledSupplier support programme visible

1 0 5

No.Target Score

Actual Score

1.1 5 3

1.2 5 2

1.3 4 2

1.4 4 1

1.5 5 1

1.6 3 1.5

Total 26 10.5

1.5 Is there an established change management and escalation process in place?

1.6 Are supply chain constraints considered and managed appropriately?

Actions Required

Assessors:

NPI Effectiveness Assessment Section

Level

1. Programme Management

Typical Evidence ExpectedCriteria

1.1 Is an effective process defined and used to manage new product introduction specifying relevant stakeholders, tasks and authority?

1.2 Are the resources for the project planned and made available?

1.3 Has programme feasibility been carried out effectively?

1.4 Is a customer agreed project plan in place and regularly review ed?

Reason for score

Typical stages of NPI improvement1

• Understand your real NPI process maturity in detail

2• Identify the gap between current maturity and the level required to support future

business strategies

3• Define the future state process that would close the gaps

4• Develop implementation work-stream charters

5• Develop the standard work to support the future process

6• Train up to close key capability gaps e.g. FMEA / MSA etc.

7• Implement the improved process in bite sized chunks

8• Apply a PDCA approach to drive continuous improvement

For more information

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