Transcript New Product Introduction Part 1. Product Development Overview Part 2. Product Definition

New Product Introduction
Part 1. Product Development Overview
Part 2. Product Definition
2002. 5. 16
사업개발팀
New Product Introduction
NPI
Module
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2
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16
2016/5/20
Product Development Overview
Product Definition
Reducing Time To Market
Multigeneration Product Development
Concept Selection
Team Co-Location
Target Costing
Specification Freeze
Smart Simple Design
- Metrics And Stretch Goals
- Parts Count Reduction
- Parts Standardization / Variety / Re-use
- Design For Assembly
Product Line Optimization / Rationalization
Risk Assessment
Error Proof Designs
Creating An NPI Process
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2/
New Product Introduction
NPI
Product Development
Overview
Activity
Concept
Design
Development Development
Design
Validation
Production
Development
Marketing
Product
Planning
Feasibility
Engineering
Testing
Production
Design
New
Technology
Main
Program
Feasibility /
Tolerancing
Manufacturing
Tool Studies
Tooling
Concurrent Engineering
2016/5/20
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New Product Introduction
NPI
Define The
Right Product
(Features, Cost)
Do It Right
The First Time
(Time To Market)
Quality
Design The
Product Right
(Performance, Quality)
Build It
Right
(Fewer Defects,
Higher Yield)
Four Dimensions Of Design For Six Sigma
2016/5/20
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New Product Introduction
NPI
Market In Vs. Product Out
Make sure you have the right product before you get the product right
Perpetual Innovation
Reduce product development cycles, lower risk; adopt a step-stretch-leap
strategy of overlapping generations
Products Are Processes
Reduce product complexity is the key to slashing hidden product costs
Real Time Measurement
Cost, Quality, Time Risk, Simplicity – determine competitive success.
Define a winning strategy and measure during development to enable
mid-course corrections
Product Development Leadership Strategies
2016/5/20
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New Product Introduction
Traditional Business
Major product breakthroughs
Fixed configuration offering
Product variety difficult
Functional orientation
Frequent queues and delays
Cost focus
Research integral to product development
Goal focus
Information is power
Central processing, slow feedback
Functional specialization
Functional direction
Internally focused measurements
Customer contact via Marketing
Management controls product
People identify with function
People located within function
Distances increase
Design the new
Suppliers managed by Purchasing
Build to production forecast
NPI
Short Time-To-Market Business
Frequent, incremental improvements
Quickly adjust to customer reaction
Effective variety design / production
Product focus
Continuous flow
Time and cost focus
Research is off-line
Process focus
Information openly shared
Local processing, fast feedback
Multifunctional skills
Team empowerment
Externally focused measurements
Team contact with customers
Management facilitates the process
People identify with product
Teams co-located
Distances decrease
Leverage the proven
Suppliers on team
Build to customer order
Short Time-To-Market Companies Are Different
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New Product Introduction
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NPI
A customer focus is in place
Successful companies plan before doing
Resources and needs are balanced
New product development is company-wide
Much greater emphasis on product definition
Little or no change to product definition during design
Products and processes designed in parallel
Specific gates are established
Meaningful quality measurements in place
Focus on time and cost
Emphasis on communications, using customer terminology
Strong project leadership, credible, communicates in all directions
Success Factors – Market Aimed Products
2016/5/20
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New Product Introduction
NPI
Product Development Process
Product
Planning
Technology
Planning
Product
Definition
Product /
Process
Design
Manufacturing
Commercialization
NPI Best Practices
• Prioritize projects
and resources
• Target cost
Team
Formation and
Effectiveness
Senior
Management
Role
Project
Management
2016/5/20
• Develop multi• Understand
generation product
customer needs
strategy
• Freeze feature
• Conduct off-line
specification
research
• Design metrics
• Leverage proven
designs / technology
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• Design for Simplicity
• Reviews
• Risk abatement
• Tools
• Supplier selection
and management
• Product / process
compatibility
• Equipment validation
• Concurrent
engineering, process
design
• Trial production runs
in advance
• Get expected BOM to
manufacturing early
in process
• Sales integration
• Plan the
commercialization
process
• Develop the delivery
system and customer
base
• Launch the product
• Continuous
improvement
Cross-functional teams, continual, dedicated
Collocate teams
Integrate key suppliers / customers into teams
Team work factored into performance appraisals
• Assign senior manager to mentor teams
• Provide “voice” for teams to resolve problems
• Actively encourage NPI teams to innovate in developing a more
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Cross-functional teams, continual, dedicated
Collocate teams
Integrate key suppliers / customers into teams
Team work factored into performance appraisals
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New Product Introduction
NPI
A customer-to-customer process … embedded innovation … cross-business
Invention
Literature
University
External
Other
Ideas
Concept
Technical
Feasibility
Application
Demonstration
Technology
Readiness
Need
Justify
Advanced Development
Customer
Need
MultiGeneration
Justify
Product
Plan
Planning
Deliverable:
Long-Term
Product
Plan
DP0
Specify
DP1
Design
DP2
Execution
Trial
DP3
Launch
Execution
Market
Frozen
Back
Up-Front
Justification Specifications
Design/
Equipment
Release
DP4
Support
Customer
Cost-Out / Growth
Broad Execution
Readiness
Transition To
Business Team
The Right Product … At The Right Cost …
With Six Sigma Quality
2016/5/20
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New Product Introduction
NPI
Change Process
Leading Change:
Having A Champion who sponsors the change
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Creating A Need
The reason to change, whether driven by threat or opportunity, is instilled within the
organization and widely shared through data, demonstration, demand, or diagnosis.
The need for change must exceed its resistance.
Shaping A Vision
The desired outcome of change is clear, legitimate, widely understood, and shared.
Mobilizing Commitment
There is a strong commitment from key constituents to invest in the change, make
it work, and demand and receive management attention.
Making Change Last
Once change is started, it endures and flourishes, and learnings are transferred
throughout the organization.
Monitoring Progress
Progress is real; benchmarks set and realized; indicators established to guarantee
accountability.
Changing Systems & Structures:
Making sure that the management practices are used
to complement and reinforce change.
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Creating Winning Products
NPI
Product Definition
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Creating Winning Products
NPI
“… Failure to define the product – its target
market; the concept, benefits, and
positioning, and its requirements, features
and specs … is the major cause of both new
product failure and serious delays.”
Dr. Robert Cooper
“Benchmarking: Firms’ New Product Performance and Practices”
Fall 1995
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Creating Winning Products
NPI
Customer loyalty
% of Repeated Purchases
100
90
80
70
60
50
Value Threshold
Value Threshold
40
30
Indifference
Zone
20
10
Negative
Differentiation
Positive
Differentiation
0
Low
Medium
High
Very High
Product Value
Only Extreme Differences In Value
Influence Customer Loyalty
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Creating Winning Products
NPI
• Saves the customer $
• Gives customer new capability
• Makes it easier for customer
• Improves customer’s skills
Product Vision – Customer’s Perspective
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Creating Winning Products
NPI
Define Your Product
To Meet Customer Needs And
Avoid Unnecessary Complexity
Factoring Simplicity Into Product Definition
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Creating Winning Products
NPI
Causes of New Product Failure
Percentage of Companies Citing
Inadequate Market Analysis
45
Product Problems or Defects
29
Lack of Effective marketing Effort
25
Higher Costs than Anticipated
19
Competitive Strength or Reaction
17
Poor Timing of Introduction
14
Technical or Production Problems
12
All Other Causes
24
0
10
20
30
40
50
Source: “Winning at New Products”, Robert G. Cooper, 1986
Inadequate Understanding Of The Market
Prior To Product Development Is The
Single Biggest Factor In New Product Failures
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Creating Winning Products
Price
Typically value priced, 10~20% above average
competitors
Availability
Volume available at announcement, supported by
responsive distribution, sales, support systems
Packaging
Clean design and styling, best fit and finish
Performance
Affordable and reliable, not usually the best
performance at any cost
Ease of Use
Typically a strong plus, simplicity over clutter
Assurance
Top reputation for quality, reliability, support
Life Cycle Cost
Strong support infrastructure, 10% cheaper in the
long run.
Standards
The de-facto standard by which others are judges.
NPI
Great Products Share Common Attributes
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Creating Winning Products
NPI
Price
At the high end of an acceptable price band; parity with Toshiba
and Compaq, deliver more value
Availability
Ready to ship at announcement; expanded distribution channels
Packaging
Following competition on size reductions, focus on appearance,
composites, texture
Performance
Parity on computing performance, largest display, 8 hour battery
charge, highest capacity drive, wide range of plug-in options
Ease of Use
Keyboard with full-size keys, best pointing device, modular
upgrades, easy setup software
Assurance
Repair in 130 countries, 24 hours help, 30 day money back,
3 year warranty, express 48 hour repair
Life Cycle Cost
Disk and memory upgrade capability, warranty, battery
technology and power management
Other Influences
Superior brand image, distributed widely for reviews, reputation
for reducing customer’s “fear, uncertainty, doubt”
IBM’s ThinkPad 750 Notebook Strategy
2016/5/20
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Creating Winning Products
NPI
Avoid reliance on today’s customers
describing today’s needs
for today’s products
Goal Should Be Customer-Inspired Products,
Not Customer Defined
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Creating Winning Products
NPI
1. Customers all want different things
2. Customers don’t always know what they want or need
3. Customers don’t always buy what they need
4. Customers keep upgrading their expectations
Obstacles To Determining Customer Needs
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Creating Winning Products
NPI
• Price
• Safety
• State Of The Art
• Reliability
• Up-time
• Rugged / Tough
• Speed
• Serviceability
• Fool Proof
• Accuracy
• Operating Cost
• Sensitivity
• Size
• Ease of Use
• Insensitivity
• Weight
• Upgradeability
• New, Different
• Life Expectancy
• Compatibility
• Old, Proven
• Warranty
• Appearance
• Industrial Standard
• Productivity
• Modularity
• Competitive Rating
• Thru-put
• Custom
• Quality
• Efficiency
Potential Customer-Perceived Attributes
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Creating Winning Products
NPI
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User is not buyer
Multiple customer voices
Technology sensitive
Holistic view of customer more
important
• Difficult to translate needs into
technical specs
• Requires future needs interpretation
• Complex, but non-ambiguous user
interface
• Professional, non-emotional buyers
• Users define technical needs,
straightforward rules, specs and
measurements
Product
Complexity
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Value-driven
User is buyer
Comparison decisions
Emotional / subjective decision
Understanding of use behavior
critical
• Application-driven
• Buyer needs can be researched
and defined
• High variety
• System needs drive component
specs
L
L
Degree of Customer Product Definition
H
Customer Needs Definition Is Business-Specific
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Creating Winning Products
NPI
New Product Development Programs
30%
26%
26%
25%
20%
20%
15%
11%
10%
10%
7%
5%
0%
New to the
World
Products
New Product
Lines
Additions to
Existing
Products
Improvement
to Existing
Products
Repositioning
Cost
Reductions
Source: Booz-Allen Study, 1992
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New
NPI
Derivative
First Of A Kind
Established
Market
Creating Winning Products
Me Too
With-A-Twist
Next Generation
Familiar
New
Product Concept
Classifying Your Products
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Accidental
Visionary
Focus Froup
One-On-One
Written Survey
NPI
Phone Feedback
Letter Feedback
Product
Type
Service Data
Data
Collection
Method
Sales Data
Creating Winning Products
Market Data
Me-Too-With-A-Twist
Available
Next Generation
Available
Derivative
By Inference
First-Of-A-Kind
Nothing
Excellent Source
Reasonable Source
Not Reliable
Data Collection Methods
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Creating Winning Products
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2016/5/20
NPI
Customer specification
Observing how customers use product
Asking “what are your problems”, not “what do you want”
Luminary and lead adopter inputs
SIMALTO
Dealer Councils, Customer Advisory Councils, User Groups
Autopsy of losing bids
Quality Function Deployment (QFD)
Inputs from frontline sales and service people
Customer focus groups
Product complaints, service records
Interviews (trade shows, store visits, key accounts)
Published ratings, competitive comparisons
Multi-functional team customer visits
Customer review of MGPPs
Customers on team
Answer Center inquiries
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Creating Winning Products
NPI
Corporate Quality Initiatives:
Product Definition
Highly effective
Effective
Min. effective
1. Customer specifications
2. Observing how customers use products
3. Asking “what are your problems,” not
“what do you want”
4. Luminary and lead adopter inputs
5. SIMALTO
6. Dealer/Customer advisory councils; User groups
7. Autopsy of losing bids
8. Quality Function Deployment (QFD)
9. Inputs from frontline sales/service people; QMI
10. Customer focus groups
11. Product complaints; service records; Failure
Modes & Effects Analysis (FMEA)
12. Interviews (trade shows, store visits, key
accounts, surveys)
13. Published ratings; competitive comparisons
14. Multi-functional team Customer visit
15. Customer review of MGPPs
16. Customer on Team
17. Answer Center inquiries
18. Competitive teardowns
19. Cross-functional Customer teams
20. Suppliers on design teams
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X
X
X
X
?
X
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Creating Winning Products
NPI
• Senior managers visit customers regularly
• Create sales ads as part of all MGPP’s
• Build bridges between Engineering and Marketing through joint customer
visits and staff rotations
• Describe products in terms of benefits, not features
• Use more customer language, less technical jargon
• How would customers define the perfect product
• Bring customers and distributors to headquarters regularly for open meetings
• Have Sales organize customer visits for Engineering and Manufacturing;
meet with peers as appropriate
• Videotape customers for employee meetings
• Visit customers when on other travel to shows, suppliers, meetings
• Include customers in idea brainstorming, design reviews, MGPP’s
• Circulate customer reports, complaints, interviews widely
• Allocate resources to customer-related activities
• Measure and track customer satisfaction
• Link new orders and sales growth to customer orientation
Creating A Customer Mindset
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Creating Winning Products
1.
Name your top 5 customers
2.
Who are your top 2 competitors? How do their
products compare to yours regarding cost,
performance, reliability, ease of use, availability
3.
What is the #1 reason a customer buys your product?
4.
What is the #1 reason a customer buys a competitor’s
product?
5.
What customer-oriented product attribute is your
company trying to promote?
NPI
Testing A Team’s Knowledge Of
Customers And Competitors
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Creating Winning Products
NPI
How Would Your Customers Define
Your Perfect Product?
Think Like A Customer
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Creating Winning Products
NPI
• Consumer
• Builders / Architect
• Home Builder / Contractor
• Dealer
• Home Centers
• Distributor
Who is Your Customer?
Plastic Example
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Creating Winning Products
NPI
When the perfect product concept describes:
1)
What the product does ……… the description is stated in terms of
performance and technical functions
2)
What the product is ………….. the description is stated in terms of
configuration, appearance,
technologies employed
3)
Who the product serves …….. target customers will be described
The Most Powerful Product Concepts Include All Three
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Creating Winning Products
NPI
The perfect product to the consumer matches color scheme, superior wear
resistance, renewable, ½ price of solid surfaces with equivalent aesthetics and
durability.
The perfect product to the distributor is a high margin, high turnover,
manageable (sku) design, easy to order and available, that is easily identified,
transported with a long shelf life.
The perfect product to the builder / architect has design flexibility, color
coordination, meets codes, easily packaged, meets consumer value expectations,
and doesn’t delay the project.
The perfect product to the home builder and the contractor is a worry free,
available, profitable, easy to install in all situations, and is renewable / repairable.
The perfect product to the dealer / fabricator / designer has multiple colors
options, and price points with supporting literature, high margins, process
confidence, ease of fabrication and installation, with quick delivery times.
The perfect product to the home center is a high margin product with high
turnovers, quick delivery and sells itself.
GE Plastics Characterization of Perfect Products,
Different Customers
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Creating Winning Products
NPI
Level 1: Demands, but won’t pay extra for.
(Price of Admission)
Level 2: Likes, and will pay extra for.
(Differentiator)
Level 3: Didn’t know about it, but loves it at first sight.
(Game Breaker)
Customers’ View Of Product Features
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Creating Winning Products
Rating
Attribute
Cost
Aesthetics (seamless)
Availability
Color
Perceived Value
Surface Performance
(maintenance, renewable, durable)
Installation / Fabrication cost
Installation Time
Workable
Code Compliance
Design Flexibility
Worry-Free
High Yield
Idiot-Proof
Speed Of Delivery
v
3
1
1, 2, 3
2
2
1
1
1
1
2
1
1
1
1
NPI
Attribute
Price Points
Ads, Brochures, Chips
Process Confidence
Manufacturing Support
Do-It-Yourself Instructions
Turn Over
Distribution
Displays Well
Modularity
Easy Ordering
Shelf Life
Transportable
Identification / Label
Stable Design
Warranty
Use and Care
Rating
2
1
1
1
1
1
1
1
2, 3
1
1
1
1
1
1
1
Classify Features And Test With Customers
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Creating Winning Products
NPI
Competitive Comparison
GE
WHL
Maytag
Frigidaire
90’s Washer
Capacity (cubic feet)
2.7
3.0
2.9
3.0
3.2
Opening
◎
◑
◑
◑
◑
White Interior
◎
◑
◑
◑
◑
Unbalance
◎
◑
◑
◑
⊙
Noise
◎
◑
◑
◑
⊙
Wash Performance
◑
◑
◎
◑
◑
Quality / SCR
◑
◑
◑
◎
⊙
⊙ Best
◑ Average
◎ Worst
Definition Of A Winning Product
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Creating Winning Products
NPI
Create Your Product’s Sales Ad
Define What You’re Going To Sell
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Creating Winning Products
NPI
• Define a Winning Product
• Test its Value Proposition With Customers
• Freeze the Specification of the “Whats”
• Go Ballistic
Get The Front End Right
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Creating Winning Products
1.
NPI Process Self-Appraisal (demo)
2.
Identify key customer driven product attributes
3.
Customer definition of “perfect product”
4.
Classify each attribute, Level 1, 2, 3
5.
Current industry standard for each attribute
6.
Development strategy; parity / superiority
7.
Write sales ad
8.
Frame multigeneration product plan; strategy for each
generation, timing of each release, spec change
discipline
9.
Define quality and simplicity
10.
Establish quality and simplicity metrics
NPI
Product Definition – Session Review
2016/5/20
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