Session 7 - Important Slides Flashcards
What are the 7 Challenges of successful product launches?
1) Opportunity
2) Scheduling
3) Focus
4) Testing
5) Positioning
6) Training
7) Feedback
What are the 7 Challenges of successful product launches, give examples!?
1) Opportunity
> Original product idea
> Marketing
2) Scheduling
> Desired launch date decided with communication plan (not too early announcements)
> Backwards scheduling (for realistic timelines & tracking)
3) Focus
> Develop the core product & deliver with perfection
> Additional feature can be added during the lifecycle
4) Testing
> Early customer involvement & development completion (for the product launc)
5) Positioning
> Branding and trust in new product
> Market segmentation
> Right message at the right time
6) Training
> Sales, PR, Marketing, Customer Service
7) Feedback
> Accept & Listen (early launch)
> Impossible to please every potential user
What are the components of Launch and Changeover, namely Product Creation Processes and Production Processes in order?
1) Prototyping
2) Pre-Series
3) Null-Series
4) Ramp-Up
5) Serial Production
How long does Prototyping take?
Where is it positioned?
Prototyping times vary greatly. 15-24 months could be typical. Also, this area is top secret, so hard to know.
Position 1
How long does Pre-Series take?
Where is it positioned?
Pre-series is usually 6-12 months
Position 2
How long does Null-Series take?
Where is it positioned?
Null series is usually 6-10 months
Position 3
How long does a typical product ramp-up takes?
Where is it positioned?
Production ramp-up takes 2-6 months if it is a good company
Tesla underestimated and took 12 months in one example
Position 4
What are the 6 factors of a Fast Ramp-Up?
1) High Costs
2) High Pace
3) Need for strong assistance at suppliers and plants
4) Introduction Volume is large
5) Quality-based ramp-up is difficult to master
6) Emphasis on Qualification of Workers
What are the 3 factors of a Slow Ramp-Up?
1) Volume too low to allow simultaneous global introduction
2) Follow-up deliveries for customers are difficult to manage
3) Utilisation of Resources in the Supply-Chain and Plant
What does the trade-off between Fast and Slow Ramp-Up depend on?
1) Depends on product/plant and qualification level of the workforce
2) Differences between car segments
3) New models and major product updates in the lifecycle
What can be a risk if you have a ramp-up plan, but cannot implement it fast enough?
Marketing perspective: grey market (trade of a commodity through distribution channels that are not authorized by the original manufacturer). Global introduction will be very slow, so in the foreign market you cannot put the new product out for a few years. Then customers see that in another country you can already order the new model. So, they don’t buy the product in their country thinking its old. Happens often in the SUV segment
For example, SUV segment sells good in Russia. But all German brands are introduced early in Europe and after 1-2 years in Russia. So, Russians come to Europe to buy.
> Global introduction has a huge impact
> When you introduce and don’t have enough volume, issues arise
What are the 3 different choices of Ramp-Up Curves?
1) Shutdown
> Production of old product completely stopped and new product’s production starts from zero to increase to steady production
2) Block Introduction (2 steady states for both new and old)
> Production of old product is taken down to a low level and new product’s production starts from zero to increase to a high level. Later when old production completely stops, new production reaches steady state
> Until meeting point old and new, they close orders for the old car and use them for fleets and similar wholesale activities
3) Step-by-step (many steady states for both)
> Production of old product is taken down gradually and new product’s production starts from zero to increase gradually to a steady state. When old production completely stops, new production reaches steady state
> In developed markets the step by step is usual. Most efficient method! But requires lots of volume of old product in the market, which marketing does not like
What are the 3 choices of operating patterns at ramp-ups?
1) Adjusted Production Speed
> Production speed rising to steady state, other two stable all the time
2) Adjusted Number of Products – Empty Hanger
> Number of Products on the line rising to steady state, other two stable all the time
3) Adjusted Operating Time
> Operation Time per Day rising to steady state, other two stable all the time
What are 3 different choices for the work-force policies?
1) Lay off / Call in
> Not in Europe or Japan, popular in USA: hire/fire policy
2) Stable workforce
> Keep it steady but need to train them good
3) Initial Production
> Calling people in for a ramp-up
What is the objective of the MIP model for strategic ramp-up planning?
Maximise the NPV of profit over the planning horizon, which consists of 4 parts that are total discounted:
1) …revenues
2) …investment expenditures
3) …production costs
4) …transportation costs
