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WEEK 4 PURCHASING’S ROLE IN NEW PRODUCT DEVELOPMENT
| Date post: | 01-Nov-2014 |
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WEEK 4
PURCHASING’S ROLE IN NEW PRODUCT DEVELOPMENT
EARLY PURCHASING & SUPPLIER INVOLVEMENT
The design of new product is conducted by a team representing a
number of functional areas.
Product planning, design engineering, reliability engineering, purchasing, manufacturing engineering, quality finance, field support, marketing and carefully
selected supplier and customer.
EARLY PURCHASING & SUPPLIER INVOLVEMENT
3 KEY ISSUES IN DEVELOPMENT OF NEW PRODUCT
TIME QUALITY COST
3 KEY ISSUES IN DEVELOPMENT OF NEW PRODUCT
TIME QUALITY COST
The lack of effective, cooperative teamwork among the groups noted frequently has been accompanied by quality problems, cost overruns, forgone all in cost saving, major scheduling problems and new products which are late to
enter the market place.
THE DESIGN PROCESS
Design is the progression of an abstract notion to something having function and fixed form.
The desired levels of quality and reliability must be “engineered in” during the design phase of the new product.
THE DESIGN PROCESS (cont)
Suppliers must have access to product design as early as humanly possible in the design process to ensure optimum use of any special skills .
The design stage is also the optimum point at which the vast majority of the cost of making an item can be reduced or controlled.
THE DESIGN PROCESS (cont)
The changing competitive environment forces much on planning, coordination, and review to take place during the design and development process than previously was the case.
THE DIFFERENCES BETWEEN INNOVATION AND KAIZEN
Effort processResultsRecognition
Individual or small teamCorporate activityInvolvement
LowHighRisks
ContinuousSpontaneousResults
Small incremental stepsDramatic breakthroughsProgress
Relatively modest investmentSubstantial investment in equipment and technology
Capital requirements
Design, production and marketingScientific or technological discovery or invention
Sources
Conventional know-howLeading edge breakthroughExpertise
Small, frequent, gradual improvements over a long time
Large, short-term, radical changes in products
Focus
KaizenInnovationCharacteristics
Table 8.1 Differences between innovation and kaizen
Purchasing – product innovation, supplier involvement and development
Initial concept
Feasibility studies
Preliminary design
Prototype testing
Finalised product
Piloting of product and production
Release for commercial manufacturing
Stages of New Product Development
Purchasing – product innovation, supplier involvement and development
Initial concept
Feasibility studies
Preliminary design
Prototype testing
Finalised product
Piloting of product and production
Release for commercial manufacturing
Stages of New Product Development
Purchasing – product innovation, supplier involvement and development
Initial concept
Feasibility studies
Preliminary design
Prototype testing
Finalised product
Piloting of product and production
Release for commercial manufacturing
Stages of New Product Development
Purchasing – product innovation, supplier involvement and development
Initial concept
Feasibility studies
Preliminary design
Prototype testing
Finalised product
Piloting of product and production
Release for commercial manufacturing
Stages of New Product Development
Purchasing – product innovation, supplier involvement and development
Initial concept
Feasibility studies
Preliminary design
Prototype testing
Finalised product
Piloting of product and production
Release for commercial manufacturing
Stages of New Product Development
Purchasing – product innovation, supplier involvement and development
Initial concept
Feasibility studies
Preliminary design
Prototype testing
Finalised product
Piloting of product and production
Release for commercial manufacturing
Stages of New Product Development
Purchasing – product innovation, supplier involvement and development
Initial concept
Feasibility studies
Preliminary design
Prototype testing
Finalised product
Piloting of product and production
Release for commercial manufacturing
Stages of New Product Development
Purchasing – product innovation, supplier involvement and development
Initial concept
Feasibility studies
Preliminary design
Prototype testing
Finalised product
Piloting of product and production
Release for commercial manufacturing
Stages of New Product Development
Purchasing – product innovation, supplier involvement and development
Initial concept
Feasibility studies
Preliminary design
Prototype testing
Finalised product
Piloting of product and production
Release for commercial manufacturing
Stages of New Product Development
Purchasing – product innovation, supplier involvement and development
Initial concept
Feasibility studies
Preliminary design
Prototype testing
Finalised product
Piloting of product and production
Release for commercial manufacturing
Stages of New Product Development
Purchasing – product innovation, supplier involvement and development
Initial concept
Feasibility studies
Preliminary design
Prototype testing
Finalised product
Piloting of product and production
Release for commercial manufacturing
Stages of New Product Development
DESIGN OF PRODUCTS
1
2
3
4 8
7
6
5
Purchasing – product innovation, supplier involvement and development
Design of Products –Special Consideration Given to:
Increased efficiency and economy in use of materials, energy and other resources
Minimisation of pollution
Reducing long-term harm to environment
Ensuring planned life of product is appropriate
Take full account of end disposal
Recycled packaging
Minimising nuisances such as noise or odour
Safety hazards
THE DESIGN PROCESS (cont)
• Concern for overall product design• Concern for JIT delivery and supplier relationship
• Selection of materials• Cost elimination of materials
• Conceptual abstraction of product quality
• General view of product
• Close or near perfect parameters, specifications, features and tolerances
• Practical and economical parameters, specification, features and tolerances
• Limited regard for availability• High regard for availability
• Limited concern for cost• Lowest ultimate cost
• Use of ideal materials• Use of adequate materials
• Wide margins of quality, safety and performance
• Minimum acceptable margin of quality, safety and performance
Design OrientationPurchasing Orientation
THE DESIGN PROCESS (cont)
Purchasing in the Future
Purchasing – product innovation, supplier involvement and development
AccountabilityInterchange of Knowledge
TeamworkJoint problem solving
Ownership of IPRSAccess to new technology
Decision makingLower development costs
Cost and pricing sharingEnhanced quality
Technology sharingImproved specifications
Release of confidential business informationReduced development time
ProblemsAdvantages
THE DESIGN PROCESS (cont)
The Kaizen method of continuous incremental improvements is an originally Japanese management concept for incremental (gradual, continuous) change (improvement). K. is actually a way of life philosophy, assuming that every aspect of our life deserves to be constantly improved. The Kaizen philosophy lies behind many Japanese management concepts such as Total Quality Control, Quality Control circles, small group activities, labor relations. Key elements of Kaizen are quality, effort, involvement of all employees, willingness to change, and communication.
