Chapter 11 - Managing new product developmant process Flashcards
1
Q
How succesful are new products projects?
A
- failure rates are sill high
- 95% of new product development projects fail to earn an economic return
- need to make product development effective and efficient
- reduction losses
2
Q
What are the key objectives of product development?
A
- maximizing fit with customer requirements
- knowing most important features
- what clients are willing to pay
- resolve competing customer desires
- minimizing cycle time
- be the first in a market (brand loyalty, switching costs, complementary goods)
- minimize or amortize costs
- controlling development costs
- recouping product expenses
3
Q
How can key objectives for new product be accomplished?
A
- adopting parallel development processes
- using project champions
- involving customers and suppliers
- using tools to improve the process
4
Q
How does partly parallel process evelopment work?
A
- stages are partially overlapped and not sequential
- shortens overall development time
- closer coordination between stages
- can increase risks
5
Q
What are project champions?
A
- role to senior executive, power to fight for project
- can shorten cycle time
- ensures that attributes match customer requirements
- facilitates allocation of resources
- ensures proper communication and cooperation
- risk loss of objectivity
- cloud judgment about project (no future)
- escalating commitment
- others may be reluctant
- counteract with anti-champion
6
Q
What are the benefits of involving customers and suppliers in the development process?
A
- check fulfillment of customer performance/price requirements
- identify maximum performance capabilities
- identify minimum service requirements
- help control costs
- speeding up development
- high quality
- involved in teams, consulting, beta-testing (early feedback) or lead users
- sourcing information regarding alternative inputs
7
Q
What are lead users?
A
- customers who face the same general needs
- experience them earlier than rest (recognize a need in advance)
- benefit disproportionately from solutions
- more effective than relying on a random sample of users
8
Q
What is crowdsourcing?
A
- open up innovation to public
* people voluntarily contribute their ideas or effort
9
Q
What is the stage-gate process?
A
- a tool to ensure that projects with no success are interrupted
- applies multi-functional review at the end of each stage
- go/kill gate
- demostrate high chance of success -> move forward
- filter out bad projects
- time, risks and costs escalate as a project proceeds
- abandonment of risky ones is necessary
- stage-gate process can be adapted to firm development needs
10
Q
What is house of quality (QDF)?
A
- Quality function development, tool of improvement
- comprehensive process for improving communication and coordination
- maps customer requirements and product attributes
- provides a common language and framework
- design tradeoffs
- highlight competitive shortcomings
- main steps:
- identify and weight customer requirements
- identify relationshipd between engineering attributes and customer requirements
- evaluate competition
- determine targets using attributes scores
11
Q
What is deign for manufacturing?
A
- set of design rules
- reduce cost and time
- boosts quality
(minimize number of parts, eliminate adjustments, …)
12
Q
What is FMEA ?
A
- Failure Modes and Effects Analysis
- method to identify, classify and prevent potential failures in a system
- three criteria: severity, likelihood, and inability to detect
- each is given a score
- composite score determines priority
13
Q
What are CAD and CAM?
A
- Computer-Aided Design
- use of computers to build and test designs
- rapid and inexpensive prototyping
- Computer-Aided Manufacturing
- use of machine-controlled processes in manufacturing
- more flexibility, faster changes
- more product variations
- (three-dimensional printing)
14
Q
Why and how measure the new product development (NPD) performances?
A
- measuring the performance help improve its innovation strategy and processes
- identify which projects met their goals and why
- benchmark performance against competitors
- improve resource allocation
- decide employee compensation
- refine future innovation strategies
- can be measured with various metrics
- average cycle time
- percentage of succesful development projects (deadlines, cost, completion)
- overall innovation performance measures ( firm’s return on innovation, projects that achieve their sales goals, percentage of revenues generated, portfolio ratio of success)
