Product/Process Innovation

Similar documents
Understanding Inventory Fundamentals

Operations and Supply Chain Strategy

Product & Service Design and Development Chap. 4

Supply Management. Where We Are Now CHAPTER TEN. Measurement. Organizational. Sustainability. Management. Globalization.

Materials and Resource Requirements Planning

Evolving Business Models and Change Drivers in the Supply Chain

Manufacturing and Service Process Structures

10/15/13. Lean Accounting Conference Orlando, Florida October 17, Growth: The Quiet Half of a Lean Business Strategy

New Product Development & Launch in Biotech The Intersection of Innovation and Operations Excellence

Business Plan. Distribution Strategies. McGraw-Hill/Irwin. Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

Lecture Outline. Copyright 2011 John Wiley & Sons, Inc. 4-2

Learning Objectives. 1. Explain how lean systems improve internal and supply chain operations

Wrap up lecture. Purpose of the class

TRANSFORMATION UPDATE April 9, 2015

CONCURRENT ENGINEERING- For Environment & Sustainability

SAP s New PLM Roadmap Enabling Product and Service Leadership. June A CIMdata Program Review

Tools To use with the Learning Plan Methodology. Business Implications of Emerging Technologies

Dial-in Number: Access code: # Go to: Use the JOIN A SESSION button Enter the Access Code:

Enterprise and Global Management of e-business Technology

2-1 McGraw-Hill/Irwin. Copyright 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

Transforming the B2B contact center

Module 1 Introduction. IIT, Bombay

and satisfying customer needs profitably about customers, competitors and market trends through collecting primary and secondary data

Module 1 Introduction. IIT, Bombay

APM Strategy. Develop asset strategies to optimize across availability, reliability, and costs

Index. B Boston-based AMR Research, 4

Best practices in product innovation. potential for Chinese companies. Presentation in Shenzhen by Dr Allan M Anderson 16 April, 2016

Adapting Organizations to Today s Markets

Chapter 6-1: Failure Modes Effect Analysis (FMCEA)

Requirements Analysis and Design Definition. Chapter Study Group Learning Materials

Management Science Introduction

Value Driven Solutions The Resource for the Lean Enterprise. w w w. v d s c o n s u l t i n g g r o u p. c o m

An Overview of the AWS Cloud Adoption Framework

International Business 9e

Rethinking Business Strategy: A data and customer-centric approach Presented by StrategiK Insight

Suppliers Involvement, Concurrent Engineering, and Product Development Flexibility in Different Industrial Clockspeed

INNOVATION MANAGEMENT MANUAL Abstract DARON DIGGES

GETRAG FORD TRANSMISSIONS

Aras Accelerates Innovation at GETRAG FORD Transmissions

Seize Opportunities. SAP Solution Overview SAP Business Suite

Advanced Manufacturing Laboratory. Department of Industrial Engineering. Sharif University of Technology

EXAMINING REMANUFACTURING IN SUPPLY CHAIN AND OPERATIONS MANAGEMENT

Selecting Software Development Life Cycles. Adapted from Chapter 4, Futrell

APPENDIX 6 APPLICATION OF QUALITY FUNCTION DEPLOYMENT IN OILFREE COMPRESSOR DEVELOPMENT

Advanced Manufacturing Laboratory. Department of Industrial Engineering. Sharif University of Technology

COPYRIGHTED MATERIAL RELIABILITY ENGINEERING AND PRODUCT LIFE CYCLE 1.1 RELIABILITY ENGINEERING

Chapter 3. Information Systems Development. McGraw-Hill/Irwin. Copyright 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

Strategic Management. Gregory G. Dess University of Texas at Dallas. G. T. Lumpkin Syracuse University. Alan B. Eisner Pace University.

Chapter 8 6/11/2015. Implementation Framework. Project Team Structure

Best Practices for Enterprise Agile Transformation

Process Improvement: A Synergized Approach

Command and Control Software Development Lessons Learned. Lt Col Michael D. Sarchet Deputy Director, Space Systems Command and Control Division

Managing 1PDI Processes Table of Contents

Changes in Consumer Demand. What is a supply chain? Supply Chain Management

Rethinking the way personal computers are deployed in your organization

The IBM Rational Software Development Platform

Products and Services for Businesses

Executive Summary. Special Economic Commentary: Macroeconomic Outlook The Road Ahead

Transforming the manufacturing contact center

Business Model Workshop. Richard West

1 People have a clear idea of how innovation can help us compete

Lean Enterprise Transformation. FCM - UNICAMP Richard B. Lewis II Executive Director, Lean Advancement Initiative, MIT March 29, 2012

Being Agile at a Small Agency How to Apply Agile Principles in a Not-So-Iterative Environment

InterConnect. InterConnect

END-TO-END LEAN MANAGEMENT. A Guide to Complete Supply Chain Improvement. by Robert J. Trent, Ph.D. J.ROSS PUBLISHING

MARKETING AND SUPPLY CHAIN MANAGEMENT

Viewpoint Adopt a service orientation

X-55A Advanced Composite Cargo Aircraft

Six Sigma/PM Integration Rules of Engagement

McKinsey BPR Approach

MGMT Strategy & Organizations Strategic Planning The Internal Environment

The Organizational Context: Strategy, Structure, and Culture

Oracle Advanced Supply Chain Planning: Benefits for Small Companies. Kevin Creel, Inspirage LLC Bob Smith, Oracle Corporation

Understanding the Supply Chain. What is a Supply Chain? Definition Supply Chain Management

DEFINITIONS AND KEY MEASURES

Minerva Transforms Medical Device Product Data to a Competitive Advantage

The Strategy of using DFMA as part of the Value Analysis / Value Engineering Process

Introduction to Information Systems. Mass Customization Revisited. What is Data? Building Impenetrable Customer Loyalty

Designing Global Supply Chains. Terry P. Harrison Penn State University

affordability budgeting Method in which companies budget for marketing based on what they believe

INFORMATION STREAMLINES

Operations Management IV PRODUCT PLANNING AND COMPETITIVE PRIORITIES

UNIT 03 HUMAN RESOURCE PLANNING

Connecticut Valve & Fitting Co.

Part VI MANUFACTURING SUPPORT SYSTEMS

Lean Operations. Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Roadmapping to Achieve Business Objectives. Honeywell International

Assignment #2 IE 2303/AME 2303 Spring 2012 Introduction to Manufacturing. Example Answers

Aerospace Advanced Product Quality Planning (Aerospace APQP) Introduction. Date: April Section 7.2

7-1 McGraw-Hill/Irwin

Test Bank For Operations And Supply Chain Management 14th Edition By F. Robert Jacobs, Richard Chase Completed download:

Achieving customer intimacy with IBM SPSS products

Software Helps You Manage the Project Portfolio

Why Low Risk Innovation Is Costly

RESURRECTING MANUFACTURING

Achieving Application Readiness Maturity The key to accelerated service delivery and faster adoption of new application technologies

Epicor Manufacturing Overview. Business without Barriers

Strengthen Every Link in Your Digital Supply Chain

Chapter 5. Understanding Organizational Markets and Buying Behavior. Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

The Logitech Supply Chain: Solidifying Our Competitive Advantage

Transcription:

CHAPTER FOUR Product/Process Innovation McGraw-Hill/Irwin Copyright 2011 by the McGraw-Hill Companies, Inc. All rights reserved. Where We Are Now Relationships Sustainability Globalization Organizational Culture/Ethics Change Management Chapter Part 1 Supply Chain: A perspective for Operations Management 1. Introduction to Managing Operations Across the Supply Chain X X X 2. Operations and Supply Chain Strategy X X X X X X Part 2 Foundations of Operations Management 3. Managing Processes and Capabilities X X 4. Product/Process Innovation X X X X 5. Manufacturing and Service Process Structures X X X X 6. Managing Quality X X X X X X 7. Understanding Inventory Fundamentals X X X 8 Lean Systems X X X X X Part 3 Integrating Relationships Across the Supply Chain 9. Customer Management X X 10. Supplier Management X X X X X 11. Logistics Management X X X Part 4 Planning of integrated Operations Across the Supply chain X 12. Demand Planning: Forecasting and Demand Management X X X 13. Sales and Operations Planning X X X 14. Independent Demand Inventory Planning X X 15. Materials and Resource Requirements Planning X X X Part 5 Managing Change in Supply Chain Operations 16. Project Management X X X X X X 17. Evolving Business Models and Change Drivers in the Supply Chain X X X X X 4 2 Measurement 1

Learning Objectives 1. Explain importance of innovation to firm performance 2. Contrast innovation strategies and projects 3. Describe new product/process design and development objectives and project phases 4. Explain importance of cross-functional integration 5. Describe and use tools for integrating customer and SC considerations into projects 4 3 Design and Development Definitions New Product Design and Development: transform market opportunities or new technologies into product design specifications New Process Design and Development: transform product specifications or technology into a new or revised production strategy 4 4 2

Product Life Cycle Definitions Launch: introduction into the market and may require SC process innovation Growth: increasing demand, flexible SC, more data from customers, increasing standardization Maturity: demand and product stabilization, increasing importance of cost, process innovation to increase SC efficiency Decline: changing technology or customer needs, declining demand, potential phase in of a replacement product 4 5 Product Life Cycle Major product innovations Initial process innovations Major process innovations Incremental product innovations Incremental product redesign Product Sales New product launch Next generation or replacement product Launch Growth Maturity Decline Figure 4-1 4 6 3

Innovation Across the Product Life Cycle Launch Intense design and development May need SC process innovation Growth Customer data aids in the refinement of product Product changes, but moving toward standardization Process innovation postponed SC flexibility due to high mix/low volume, increasing capacity Maturity Demand stabilizes Product stabilizes Emphasis on cost Process innovation needed to increase SC efficiency Decline Market/technology changes Pressure to reduce cost and capacity Incremental projects to extend life Introduction of next generation products 4 7 Innovation Affects Performance Many functional groups are involved: Customers share needs and desires Finance evaluates potential opportunities Marketing communicates customer needs and desires, and information on competitive priorities into the organization Engineering turns customer needs and desires into product and process specifications Operations across the SC determine how to best source, produce and deliver based on operational capabilities 4 8 4

Types of Innovators Fast Innovators Get to market quickly React quickly to competitor's actions More continuous stream of product introductions High-Quality Innovators Fewer issues launching products, and fewer failures Effectively satisfy customers for higher brand loyalty Efficient Innovators Fund more new design and development projects Sell at lower prices, or have lower break even quantities 4 9 Innovation Strategy Figure 4-2 4 10 5

Critical Innovation Operational Skills Idea and Opportunity Development Innovation Portfolio Planning Innovation Project Management New Product/Process Launch and Learning Co-development 4 11 Idea and Opportunity Development Organizational culture affects innovation success Hiring the best and brightest Having an effective reward system Allocating adequate resources 4 12 6

Innovation Portfolio Planning Research and advanced development Extent of product change Extent of Process change New core process New core product Radical breakthroughs Next Generation of core product Addition to product family Derivative or enhancement Next generation of core process Single-department upgrade Tuning and incremental changes Next generation or platform Enhancements, hybrids, and derivatives Figure 4-3 4 13 New Product/Process Launch and Learning Management of a progression of projects Capture lessons learned post launch Learning applied to next project Continuous chain of projects adds to capabilities 4 14 7

Codevelopment Firms often partner with other firms to codevelop major products or processes Benefits: Increased sources of, and access to, ideas and opportunities, leading to higher quality Leveraging the expertise of others increases the number of successful launches, and reduces lead time Financial and legal risks are shared Risks: Less control over intellectual property Partner dependency may lead to less control over goals and timing 4 15 Product/Process Design and Development Multiple ways to manage multiple stages to introduce new products using a firm s capabilities and SC processes The Stage-Gate process: resources allocated on stageby-stage completion Concurrent engineering: simultaneous (not sequential) Design for the customer: use of multiple customer focused tools Design for supply chain operations: use of multiple supply chain or product techniques 4 16 8

Stages of Product/Process Innovation Figure 4-4 4 17 Concurrent Engineering Figure 4-5 4 18 9

Design for the Customer Voice of the Customer (VOC): gather input on customer s needs and wants Quality Function Deployment (QFD): convert customer s needs and wants into specifications Failure Modes and Effects Analysis (FMEA): identification and correction of potential problems Value Engineering/Value Analysis: improvement of benefits and costs through examination of functionality 4 19 House of Quality using QFD Interrelationships of technical features Voice of the customer Customer desired traits Importance of traits to customers Technical features Relationships between customer desired traits and technical features Assessment of competition Target values of technical features Customer requirements Planning matrix Technical features deployment matrix Process plan and quality control chats Figure 4-6 Operating instructions 4 20 10

House of Quality Figure 4-7 4 21 FMEA 1. Determine unit of analysis 2. Identify potential failures and sources 3.Prioritize failure modes Risk Priority Number (RPN) = Occurrence rating x Severity Rating x Undetectability Rating 4. Create plans 5. Implement plans, measure impact, adjust analysis Name Function Failure Mode Effect Cause Severity (S) Occurrence Undetectability (O) (U) RPN SxOxU Recommendation 4 22 11

Activity Develop a FMEA for pizza delivery Name Function Failure Mode Effect Cause Severity (S) Occurrence (O) Undetectability (U) RPN = SxOxU Recommendation 4 23 Design for Supply Chain Operations Design for Manufacture: improvement of product producibility Design of Assembly: minimizing number of components and easing assembly processes Design for Product Serviceability: easing disassembly and component reuse Design for Six Sigma: improving process consistency 4 24 12

Design for Supply Chain Operations cont d Standardization: reuse parts for existing designs Modularity: using combinations of standardized parts Design for Logistics: minimizing packaging, handling and shipping costs Design for Environment: minimize detrimental environmental impacts, across product life cycle 4 25 Enabling Technologies Computer-aided Design (CAD):automating systems for drawings and specifications Computer-aided Engineering (CAE): systems that create 3-D models, reducing prototype need Product Life Cycle Management (PLM): capturing and sharing product definition data across the life cycle 4 26 13

Product/Process Innovation Summary 1. Innovative firms gain competitive advantage. 2. Innovation in the SC involves customers, suppliers and other partners, resulting in faster and more efficient development. 3. Innovation projects have multiple stages. 4. Innovation project stages can proceed sequentially or concurrently. 5. Innovation projects require the integration of many interrelated product/process design issues 4 27 14