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Webinar New Product Introduction
5th November 2014
SMMT Industry Forum
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- 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.
- If you are experiencing any technical problems please
call us on 0121 717 6620.
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New Product Introduction Dave Durbin
SLIDE 4 Introduction
Presenter: Dave Durbin
Industry 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
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Typical Issues with NPI
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Audience Feedback
Do you think your company has a good NPI process? a) Structured, effective and followed b) Structured but not followed c) Not structured, individual skills determine project results
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Why is NPI important to get right?
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A typical NPI situation before improvement
Development Ramp Up Performance Number of problems
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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 them e) Don’t measure Q&D
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……and the desired situation after improvement
Dev Ramp Up Performance Number of problems
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Investment for Profitability
Cashflow Time Typical NPI approach Best NPI approach
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Investment for Profitability
Cashflow Time Too much resource
Quotation
SLIDE 13 Impact of Effective NPI Processes
- Improve profitability
- Improve customer
satisfaction
duplication
- Identify and deal with risk
- Ensure timely decision
making
constraints
- Improve team relationships
- Reduce stress on individuals
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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) None e) Cost vs budget/quote is not measured
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Increasing customer demands to demonstrate production capability
SLIDE 16 Request For Quotation Development Production
NPI Process Scope
Commercial Operations Supply Chain Design Engineering Quality Projects Finance R&D
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IF’s Structured Approach
SLIDE 18 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
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NPI for Low Volume & Single Product
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Project Management and NPI
SLIDE 21 IF NPI Effectiveness Assessment
Allocated In progress Finished Confirmed Colour 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 System Some milestone review s planned based on customer request Stakeholders listed but authority not clearly defined for w hole project Project gates often missed Process documented but poor detail of gate requirements Responsibility & authority clearly specified for key decisions and tasks (e.g. RACI) Project gates occasionally missed Detailed process to be follow ed not adjusted for individual projects Project KPIs clearly defined All gates achieved but some later than plan Training 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
- utputs clearly defined for all
gates All gates achieved on time Project KPIs achieved Plans and progress visually displayed Managers of project teams have required skills to lead NPI projects Process modified for each project to determine start/end points and relevant gates Some gates achieved ahead of time Learning logs/improvement data capture system in place Evidence 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 conditions Documented responsibilities Data from previous product launches (target vs actual) Improvement data base Skills matrix/training needs analysis NPL PV Health Check - Stage 1, Q2 & Stage 4, Q7 1 1 1 NPI is part of normal day to day job Some project time allocated to low responsibility personnel Some budget allocated for NPI projects Dedicated project managers in place w ith budget Capacity planning in production to allow trial time Senior level support evident for project activities Dedicated PDR objectives/ budget/time allocated to roles according to project plan Testing capacity planned, (availability of CMM, labs etc.) Senior management allocate time to support project and ensure sufficient resource Suppliers considered and involved in project activities Organisation structure Strategic departmental/PDR objectives Trials show n in production and testing capacity plans Meeting effectiveness metrics Budget allocation 1 1 Contract review process completed including key assumptions (volume, technology, price, supplier, etc.) Financial appraisal to confirm profitability of programme Demonstrated 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 document Learning points capture system documentation Detailed costings FMEA 1 1 Copy of standard plan template used - same for all NPI projects based on customer project reporting requirements Project-specific plan developed w ith all milestones/gatew ays defined including performance targets at each stage Critical path identified and leadtimes confirmed All APQP requirements identified Customer involved in cross- functional project teams Gate inputs/outputs defined, decision authority clear, regular plan review s held Simultaneous engineering applied to minimise overall leadtime Project freeze points clearly follow ed, project FMEA performed to identify major risks to successful delivery Customer managed to ensure timely information received Detailed project plan w ith targets and responsibilities identified Clear project plan progress/KPI achievement visual display Project review agendas/meeting minutes 1 Involvement of people in business w ith decision making authority Formal change management process agreed and follow ed Management-led regular review s Slippage in project communicated rapidly to decision maker Change request forms are used and highlight impact of change on project deliverables Customer supports change management and escalation process Affected functions involved in decision making Good relationships developed w ith customer - contact points agreed Contingency plans developed at project planning stage Actions taken to mitigate risks Documented process Change request forms used Defined contacts and authorities Contingency plans documented RR G&MC Audit info - Tech package Q5 1 1 1 Project plan is communicated to suppliers Supply chain planning and scheduling includes trial requirements Critical 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 agreed Supplier development/support in place and effective Supply chain actively managed to reduce leadtimes and mitigate risks Suppliers involved in cross- functional project teams Supplier agreements Supplier APQP plans Trials scheduled Supplier 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
Typical Evidence Expected Criteria 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
1.4 Is a customer agreed project plan in place and regularly review ed? Reason for score
SLIDE 22 Typical stages of NPI improvement
1
- Understand your real NPI process maturity in detail
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- Identify the gap between current maturity and the level required to support future
business strategies
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- Define the future state process that would close the gaps
4
- Develop implementation work-stream charters
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- Develop the standard work to support the future process
6
- Train up to close key capability gaps e.g. FMEA / MSA etc.
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- Implement the improved process in bite sized chunks
8
- Apply a PDCA approach to drive continuous improvement
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For more information
www.industryforum.co.uk
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