Satellite : A New Beginning for Data Acceptance Programs

Transcription

1 Satellite : A New Beginning for Data Acceptance

2 ABSTRACT This white paper presents an overview of the product safety testing and approval challenges facing industrial, commercial and consumer manufacturers, and discusses how Intertek s revolutionary Satellite data acceptance program can help manufacturers reduce compliance costs and decrease time to market for new products. Introduction After what most economists would agree has been the most severe economic recession in sixty years, the U.S. economy is beginning to show signs of reawakening as time progresses. For example, the U.S. Department of Commerce reported that factory goods orders rose in September 2009 by just under 1%, the fifth such increase in orders in the prior six months. Other indications of future spending increases were seen in a 1.8% increase in orders for non-defense capital goods and a 1.4% increase in orders for durable goods during the same period. Despite this and other promising data, manufacturers will continue to face some important challenges well into the future. Those challenges include: Continued emphasis on cost savings and cost reductions: The precipitous drop in economic activity in the fall of 2008 forced many companies to implement drastic cost-cutting programs and reduce staffing to ensure profitability in In planning for the days ahead, executives are seeking to leverage their reduced cost structure to increase profitability and/or to lower prices as a means of increasing market share. Increased focus on driving development and production efficiencies: The ability to survive, and even prosper in a recessionary economy, has convinced many manufacturing executives that they can indeed do more with less. We can expect to see continued efforts to expand development and production efficiencies as a way to further increase profitability and speed time to market in the year ahead. 1

3 Pressures to bring new products and services to market more quickly: You always leave a recession with different products than those you had when you entered it is an oft-repeated truism for industrial and consumer manufacturers. While spending has not yet returned to pre-recession levels, product inventories are still at historic lows and buyers are purchasing new products and services that offer features consistent with current needs and requirements. Efforts to take advantage of competitor weakness to increase market share: The recession has forced a number of manufacturers to dramatically curtail business expansion programs or to retreat all together from previous plans for growth. Companies with bigger reserves are positioned to take advantage of this vacuum and expand market share at the expense of competitors with fewer resources. More aggressive exploration of global market opportunities. Revived economic growth will occur at varied rates and different economic regions around the world. Increasingly, manufacturers must consider region-by-region business development strategies that take full advantage of the unique challenges and opportunities that present themselves in markets outside of the United States. Ongoing efforts to achieve additional process efficiencies before re-staffing: As companies look ahead, a healthy skepticism remains about the long-term value of increased staffing as a means of driving growth and profitability. There is continued interest in evaluating potential improvements and efficiencies in traditional processes not just to increase profitability, but also as a tool to drive innovation. The Specific Challenges of the Product Approval Process The overall quest by manufacturers is to increase development and production efficiencies, lower costs, and drive profitability. It is the process of obtaining and maintaining the necessary safety approvals and certifications for new products that presents a unique set of challenges. Here are some of the specific realities of the typical product approval process that industrial, commercial, and consumer manufacturers need to take into account as they review and evaluate their overall new product development and production process: 2

4 New/changing regulations and standards require vigilant monitoring For international manufacturers, understanding the scale and scope of regulations and standards applicable to their products presents a daunting challenge. The effort to develop and maintain up-to-date intelligence is made even more complex by new standards development and continuous changes in existing standards. Quite simply, the task is overwhelming even for those manufacturers who have the luxury of a dedicated compliance engineering staff. Marketplace demands can require unexpected product modifications As products based on new or evolving technologies move through the development and production process, emerging developments by competitors and unanticipated expectations of buyers can mandate last-minute changes in a product s design or function. Such changes almost always require resetting the compliance process back to the beginning which can potentially jeopardize the timely introduction of a product to the marketplace. The product approval process is largely controlled by others Despite easing restrictions that make self-certification theoretically possible, most international manufacturers seek third-party testing and certification to reduce the chances for interruptions in market entry and to minimize potential liability concerns. However, outside testing typically requires coordinating new product development and launch with an often lengthy, time-consuming testing and certification cycle. The lack of control inhibits the development of an institutional product approval memory Manufacturers can achieve the greatest potential efficiencies by creating internal systems and procedures that eliminate the need to reinvent the wheel with each new product development effort. However, by its very nature, the use of third-party testing shifts the product approval burden to the outside testing entity, thereby reducing the value of documenting the internal product approval process and inhibiting its integration into the manufacturer s overall development and production strategy. 3

5 Taking a Strategic Approach to the Product Approval Process Even before the recession, manufacturing companies focused significant attention on improving efficiencies in the areas of new product development and production. A number of companies even embraced so-called lean manufacturing principles in an effort to speed production and reduce costs. Today s economic realities have brought increased focus on efforts to improve efficiencies, reduce costs and improve operational profitability. A major reason that traditional approaches to improvement often fall short when applied to the new product development processes is the difficulty in making the step-by-step connections that impact a company s entire product development and production value stream. From this strategic perspective, manufacturers must explicitly consider the key role that product testing and certification can play in the overall effort. Figure 1 (see below) provides a graphic illustration of the new product testing and certification process. Figure 1: A view of testing and certification in a strategic context 4

6 Understanding the options and opportunities offered by taking a strategic approach to testing and certification can dramatically affect a manufacturer s bottom line in a number of important ways, including: Market positioning and pricing (gained from benchmarking and comparison testing) Cost controls (gained from testing sourced components for price/performance levels) New country/market opportunities (gained from knowing how to design for multiple countries in advance) Speed to market (gained from choosing a testing laboratory with a large network, shorter queue time and greater responsiveness) Revenue potential (gained from getting products to market sooner) Brand enhancement (gained by becoming a quality leader, performance leader and, ultimately, a market leader) Looking ahead, successful international manufacturers of industrial, commercial, and consumer technology products will increasingly see that a strategic approach to product testing and certification is a key tool in their efforts to improve new product development and production. Their approach to testing and certification will be critical to the improvement of their company s overall financial performance. The Satellite Program The successful implementation of a strategically-focused product approval process depends in no small part upon leveraging the manufacturer s existing testing resources and capabilities. For a manufacturer with a qualified testing facility, for example, the most efficient and economic approach involves utilizing testing data generated by the manufacturer as an integral part of the new product approval process. Compliance testing can be a means to grow your revenue and your bottom line - Let Intertek show you how: Intertek s Satellite program is a client data acceptance program, offering a structured, but customizable approach that can help manufacturers who are currently active in managing their product approval process and testing at their own facilities in a much more productive and cost effect manner. Satellite effectively integrates cost 5

7 saving testing and certification services into their overall new product development process. The program provides manufacturers the convenience of scheduling and conducting their own onsite testing to obtain Intertek s market-leading certifications for its products. Here are additional details on the key elements of the Satellite program: Customized Levels of Compliance Support Based on a manufacturer s existing assessment and testing capabilities, Intertek s Satellite program offers four distinct levels of compliance support. Each level offers different advantages and clients can choose the option that best fits their business needs. They are as follows: Level 1: For Level 1 Satellite program clients, our Compliance Engineers Test your products in your facilities. Intertek assists in the development and installation of a suitable on-site facility for conducting product safety testing. Once the testing facility has been established, Intertek s professional engineering staff instructs the manufacturer s employees on appropriate test methodologies and procedures. Finally, Intertek professionals conduct handson training with the manufacturer s employees through the on-site testing of actual products. Level 2: For Level 2 Satellite program clients, our Compliance Engineers witness product compliance testing as conducted by the manufacturer s trained test engineers (witness testing). Level 3: Level 3 Satellite program clients independently conduct product compliance testing and record testing data on template forms supplied by Intertek. The completed test data forms are then submitted to Intertek, where Intertek s professional engineering staff prepares the final test report and issues the appropriate product certification. Level 4: Level 4 Satellite program clients independently conduct product compliance testing and prepare the final test report on Intertek-supplied template report forms. Intertek s professional engineering staff reviews the final test report and issues the requested product certification. Prospective manufacturing clients for the Satellite program undergo a formal assessment conducted by Intertek s internal laboratory assessment team to verify the Satellite program level appropriate to their resources and capabilities. 6

8 Pre-Defined Scope of Data Acceptance In addition to selecting the Satellite Level appropriate to each individual manufacturer s capabilities and resources, Intertek and each Satellite program client identify the types of new products to be tested under the Satellite program in order to determine the specific product safety standards against which products will be assessed. Standards typically include globally-accepted product safety standards (e.g., EMC) for applicable product categories such as those developed under the auspices of the International Standards Organization (ISO) or the International Electrotechnical Commission (IEC). However, Intertek and the manufacturing client can also identify industry-specific requirements and standards (e.g., energy verification) for inclusion within the scope of the Satellite program. Once the markets have been identified, and the products and applicable standards have been established, Intertek verifies the client manufacturer s capability to conduct testing consistent with the standard s requirements and determines the scope of testing data that it will accept from the Satellite program client. Intertek issues certifications supporting the use of a number of widely-recognized product safety marks, including the following: ETL Listed Mark (covering electrical products in North America) BEAB Mark (covering electrical products in the European Union) CCC Mark (covering 132 product categories in China)* NOM Mark (covering electrical products in Mexico) IRAM Mark (covering electrical products in Argentina)* ASTA Diamond Mark (covering electrical distribution and plug products in over 40 different countries) WH Mark (covering building products in North America) QP Mark (covering appliances, HVAC to telecom and wireless products in North America) * Not offered in Satellite program Broad Market Access As a final step, Intertek and the Satellite program client identify the specific geographic markets for which the manufacturer is seeking entry and determine the product safety certification marks that are essential for legal market access. In addition to country or region-specific marks, Intertek is also a Certification Body (CB) working under the auspices of the International Electrotechnical Commission s system of conformity assessment schemes for electro-technical equipment and components (IECEE). The IECEE s CB Scheme is an international program for the exchange and acceptance of product safety test results among participating laboratories and certification organizations around the world, providing direct access to markets in over 45 countries. 7

9 Intertek s extensive global certification capabilities ensure that each Satellite program manufacturing client has the potential to achieve worldwide market access for all of their products. An Innovative On-Line Platform for Compliance Documentation By providing manufacturers the convenience of conducting their testing onsite, Satellite program clients have continuous access to all testing and certification data, both for products previously tested and certified and for new products in various stages of development and production. This is Intertek s newest service which is called DirectConnect. DirectConnect is an interactive information platform developed by Intertek exclusively for Satellite program clients. It is your electronic filing cabinet for all of our testing and compliance needs. More than just a static database of historical compliance documentation, DirectConnect provides Satellite program clients with a true compliance management system that allows them to directly upload testing data and reports for review and further action by Intertek s professional engineering staff. DirectConnect also offers Satellite program clients real-time access to current status of the processing of their certification applications. This comprehensive visibility into every aspect of the product testing and certification sequence ensures a completely transparent process, thereby ensuring that the manufacturer has the most up-to-theminute information on each critical-path task. Finally, DirectConnect provides easy access to compliance documentation for previously certified products. For example, testing reports are searchable by project number, report number, type of product covered, the standard used, and the date of the report. A key feature of DirectConnect is My TestCentral, an innovative and user-customizable web-based portal that provides controlled and efficient access to compliance documentation stored in DirectConnect. By establishing and customizing individual My TestCentral portals for designated personnel, Satellite program clients can provide internal access to compliance information on a need-to-know basis. 8

10 Data Conversion from Other Data Acceptance For new Satellite program clients who have an existing data acceptance arrangement with another testing organization, Intertek offers a product listing conversion program that seamlessly integrates the client s historical testing data and certification documentation with Intertek s DirectConnect on-line information platform. As a result, manufacturing clients can obtain the benefits of converting to Intertek s Satellite program, and take advantage of Intertek s extensive range of recognized and accepted certification marks. By utilizing existing resources and Intertek s quick turnaround and fixed pricing, a client will get their products to market faster and save up to 40% from competing data acceptance programs all while maintaining a single repository for all testing and certification activity for their technology products. 9

11 Benefits of the Satellite Program By utilizing a manufacturer s existing testing capabilities, Intertek s Satellite client data acceptance program saves time by driving greater development and production efficiencies. This ensures that new products reach the market at a lower cost more quickly. Specifically, the Satellite program offers the following advantages to manufacturers: A streamlined product approval process (efficient): The Satellite program offers a strategic approach to testing and certification that can markedly reduce the time required for data acceptance and certification of new products. Satellite program clients routinely obtain certification for products within their defined scope of data acceptance in as little as 5-10 days, significantly shorter than competitive data acceptance programs. This can mean millions of dollars to your organization by getting your products to market in the most timely fashion in the testing and certification industry. Testing and certification support that complements existing capabilities (flexible): The Satellite program is designed to effectively leverage a manufacturer s existing assessment and testing capabilities. With four distinct Levels of compliance support, the Satellite program enables manufacturers to dynamically select the level of assistance most appropriate for their current and future needs. Lower overall testing and certification costs (cost-effective): Because the Satellite program works with a manufacturer s existing assessment and testing capabilities, companies can realize significant savings in connection with their testing and certification expenditures. For example, Level 3 Satellite program clients can experience savings of as much as 25-40% from their current testing and certification outlays. This savings will go right to your bottom line. Places the manufacturer back in charge of the product approval process (controllable): More importantly, by placing the manufacturer at the center of the testing and certification process, the Satellite program returns the control of the testing and certification process back to the manufacturer. In doing so, certification of new products can be more effectively synchronized with the manufacturer s actual product development cycle. 10

12 Conclusion Now more than ever, manufacturers future growth and success depends on their ability to bring new products and services to market more quickly and cost-effectively. Success depends in part on recognizing the critical importance of product testing and certification as an integral part of the overall new product development and production process. It also depends, to an extent, on taking back control of product testing and reporting activities. Intertek s Satellite program helps industrial, commercial, and consumer manufacturers to achieve greater profitability by driving efficiencies in new product development and production efforts, reducing overall costs for product testing and certification, and accelerating the pace of new product introduction to the marketplace. Look to Satellite to help grow your business. About Intertek Intertek provides quality and safety solutions to a wide range of industries, through a network of 24,000 people in 1000 laboratories and offices in 100 countries around the world. For more information about Intertek, visit our web site at This publication is copyright Intertek and may not be reproduced or transmitted in any form in whole or in part without the prior written permission of Intertek. While due care has been taken during the preparation of this document, Intertek cannot be held responsible for the accuracy of the information herein or for any consequence arising from it. Clients are encouraged to seek Intertek s current advice on their specific needs before acting upon any of the content. For more information on Intertek s Satellite program, please contact Intertek at WORLDLAB, icenter@intertek.com, or visit our website at This publication is copyright Intertek and may not be reproduced or transmitted in any form in whole or in part without the prior written permission of Intertek. While due care has been taken during the preparation of this document, Intertek cannot be held responsible for the accuracy of the information herein or for any consequence arising from it. Clients are encouraged to seek Intertek s current advice on their specific needs before acting upon any of the content. 11