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Global Manufacturing & Trade Co.
requires anIndustrial Designer
Multi-skilled
Fanatically µcustomer/user oriented¶
Deeply committed to creative design solutions
Knowledgeable about a wide range of manufacturing business
Comfortable in marketing, design and engineering disciplines
Knowledgeable about new design & visualization technologies
Send your resume to [email protected]
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NPD is interdisciplinary!
New Product Development is aninterdisciplinary activity requiring
contributions from nearly all the functionsof a firm, such as finance, sales, legalfunction.
However, three functions are central to NPD!
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3Main Functions of
NPD
Marketing
Manufacturing/Engineering
Design
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Marketing: involves in the interactions between
the firm and its customers. Such as:
identification of customer needs,
identification of product opportunities,
definition of market segments,
arrangements of communication,
set prices,
oversees the launch and the promotion of
the product.
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Manufacturing is responsible for designing
and operating the production system in
order to manufacture the product.
It also includes;
Purchasing
and Installation
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Design involves in the definition of the
function and physical form of the product to
meet the customer needs.
It includes engineering design (mechanical¶electrical and software interaction)
and I ndustrial Design (user interaction).
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NPD Team
Few products are developed by a single
person, but by a collection of individuals
called the project team.
Teams have members from the 3 main
functions + other functions, if necessary.
Every team has a leader, and consisted of a
core and extended sub-teams.
NPD teams operates through a process
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NPD
Process
A process is a sequence of steps that
transforms a set of inputs into a set of
outputs.
A NPD process is the sequence of steps or
activities that a firm employs to conceive,
design and commercialize a new product.
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Some facts about NP
D process Some firms define and follow a precise and
detailed NPD process.
Others may not even be able to describe their processes.
Every firm employs a process at least slightly
different from that of every other firm.
The same firm may follow different processes for
each of different types of development processes.
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A well-defined NPD process is
useful because it helps in Quality Assurance: it specifies the phases and
checkpoints along the way,
Coordination: It acts as a master plan which defines theroles of each players in the NPD team (when, with whom,what interaction)
Planning:It contains milestones corresponding to thecompletion of each phase. Timing of the schedule
Management: It is a benchmark for assessing the performance of ongoing NPD effort.
Improvement: documentation of NPD process identifyopportunities for improvement.
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5 P
hases of Generic NP
DP
rocess Concept Development
System-level Design
Detail Design
Testing and Refinement
P
roduction ramp-up.
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Planning
Product Development
Process
Concept
DevelopmentSystem-Level
Design
Detail
Design
Testing and
Refinement
Production
Ramp-Up
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Concept Development A Product Concept is a description of the form,
function, and features of a product, accompanied
by a set of specifications, an analysis of competitive products, and an economic
justification of the project.
In the Concept Development phase, needs of
target market are identified, alternative productconcepts are generated and evaluated, and a single
concept is selected for further development.
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System-Level Design This phase includes the definition of the
product into subsystems and components.
The output is a geometric µlayout¶ of the
product, a functional specifications of each
of the product¶s subsystems.
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Detail Design This phase includes the complete
specifications of geometry, materials and
tolerances of all of the unique parts in the
product and the identification of all of the
standard parts to be purchased from
suppliers. The output is the control documentation for
the product.
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Testing and Refinement The phases involves the construction and
evaluation of multiple pre-production
versions of the product.
Alpha Prototypes
Beta Prototypes
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Production Ramp-up
In this phase, the product is made using the
intended production system.
µPilot Production¶
The purpose is to train work force and work
out any remaining problems in the
production process.
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Variants of
NPD
Process
Generic (market-pull)
Technology Push
Platform Products
Process-Intensive
Customization
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Generic (MarketP
ull)
NPD starts with a market opportunity and,
seeks out whatever technologies are
required to satisfy the market need.
Thus, the market pulls the NPD decision!
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Technology-P
ush NPD starts with a new technology, and
Looks for an appropriate market in which to
apply this technology.
That is, technology pushes NPD!
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Platform
Products
A platform-product is developed around a pre-
existing technological subsystem (a technology
platform). Similar to technology-push
But a technology platform has already proved its
usefulness in the market.
Therefore, it¶s more simple and cheaper to
develop new products based on existing platforms.
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Process-Intensive
For process-intensive products, the production
process places strict constraints on the properties
of the product, so that the product design cannot be separated, even at the concept phase, from the
production process design.
First a production method is decided upon, then
product design is limited by the capabilities of this process.
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CustomizedP
roducts When a customers requests a new product,
the firm executes a structured design and
development process to create the productto meet the customers¶ needs.
Highly structured and detailed NPD process
with a series of well defined stages.
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NPD Organizations
In addition to an effective NPD process,
successful firms also organize their NPD
staffs effectively.
An NPD organization is the scheme by
which individual designers, engineers and
marketers are linked together into groups.
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Links in NPD Organizations
These links among individuals in NPD process may be
formal or informal, but mostly include:
R eporting R elationships: The classic notion of supervisor
and subordinat e. Formal links shown on organizational
charts.
Financial Arrangements: Being part of the same
financial entity, such as defined by a particular budget
category or profit-and-loss statement.
Physical Layout: Links created when individuals sharethe same office, floor, building or site. Informal and
spontaneous.
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Organizational Links Individuals in NPD organizations can be classified
by
Function ± area of responsibility involving specializededucation, training, or experience. Main functions in NPD
± marketing, design and manufacturing.
Project ± the set of activities in the development process
for a particular product and includes, for example,identifying customer needs, generating product concepts,
etc.
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NPD Organizations
Functional Organization: the organizational
links are among those who perform similar
functions.
Project Organization: the organizational
links are among those who work on thesame project.
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Functional Organization Individuals share similar training and experience,
They all report to the same manager who would
evaluate tem and set their salaries,
The group has its own budget,
Generally, they share the same physical location.
They would be involved in many different projects, but with no strong organizational links to
other member of each project team.
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Functional Organization
design 3
design 2
design 1
design manager
marketing 2
marketing 1
marketing manager
manufacturing 2
manufacturing 1
manufacturing manager
General Manager
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P r o j e c t O r g a n i z a t i o n
M a n u f a c t u r i n g
D e s i g n
M a r k e t i n g
P r o j e c t M a n a g e r I
M a r k e t i n g
D e s i g n
M a n u f a c t u r i n g
F i n a n c e
P r o j e c t M a n a g e r 2
D e s i g n
M a r k e t i n g
L o g i s t i c s
P r o j e c t M a n a g e r 3
G e n e r a l M a n a g e r
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Two variants in Matrix Organization
H eavyweight Project Organization
Contains strong project links
Manager has complete budget authority, S/he is heavily involved in performance evaluation of the
team members and,
takes most of the major resource allocation decisions.
Although each individual also belongs to a functionalorganization, functional managers have relatively little
authority and control.
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GeneralManager
Heavyweight ProjectManagers
Functional Managers
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Two variants in Matrix Organization
Lightweight Project Organization
Contains weaker project links
Project manager is more of a coordinator and
administrator. S/he is involved in updating schedules, arranging
meetings, and facilatating coortdination.
But has no real authority and contral in project
organization.
Functional managers are responsible for budgets,hiring and firing and performance evaluation.
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General
Manager
Lightweight Project Managers
Functional Managers
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Choosing an NPD Organizational Structure
Questions to ask:
How important is cross-functional integration?
How Critical is cutting-edge functional expertise
to business success?
Can individuals from each function be utilized for
most of the duration of a project?
How important is NPD speed?
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