LO4-1 Explain importance of innovation to firm performance
LO4-2 Contrast innovation strategies and projects
LO4-3 Describe new product/process design and development objectives and project phases
LO4-4 Explain importance of cross-functional integration
LO4-5 Describe and use tools for integrating customer and SC considerations into projects
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Copyright © 2014 McGraw-Hill Higher Education. All rights reserved.CHAPTER 4Product/Process InnovationMcGraw-Hill/IrwinLearning ObjectivesLO4-1 Explain importance of innovation to firm performanceLO4-2 Contrast innovation strategies and projectsLO4-3 Describe new product/process design and development objectives and project phasesLO4-4 Explain importance of cross-functional integrationLO4-5 Describe and use tools for integrating customer and SC considerations into projects4–2Design and Development Definitions4–3New 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 strategyLO4-1Product Life Cycle Definitions4–4Launch: introduction into the market and may require SC process innovationGrowth: increasing demand, flexible SC, more data from customers, increasing standardizationMaturity: demand and product stabilization, increasing importance of cost, process innovation to increase SC efficiencyDecline: changing technology or customer needs, declining demand, potential phase in of a replacement productLO4-1Innovation Affects Performance4–5LO4-2New Product/Process Launch and LearningManagement of a progression of projectsCapture lessons learned post launchLearning applied to next projectContinuous chain of projects adds to capabilities4–6LO4-2Product/Process Design and Development: Stages4–7LO4-3Product/Process Design and Development: Managing StagesThe Stage-Gate process: resources allocated on stage-by-stage completionConcurrent 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 techniques4–8LO4-3Concurrent Engineering4–9Figure 4-4LO4-4Design for the CustomerVoice of the Customer (VOC): gather input on customer’s needs and wantsQuality Function Deployment (QFD): convert customer’s needs and wants into specificationsFailure Modes and Effects Analysis (FMEA): identification and correction of potential problemsValue Engineering/Value Analysis: improvement of benefits and costs through examination of functionality4–10LO4-5Failure Modes and Effects Analysis (FMEA)Determine unit of analysisIdentify potential failures and sourcesPrioritize failure modes Risk Priority Number (RPN) = Occurrence rating x Severity Rating x Undetectability RatingCreate plansImplement plans, measure impact, adjust analysis4–11NameFunctionFailureModeEffectCauseSeverity (S)Occurrence (O)Undetectability (U)RPN SxOxURecommendationLO4-5Design for Supply Chain Operations4–12LO4-5Design for Manufacture: improvement of product “producibility”Standardization: reuse parts for existing designsModularity: using combinations of standardized partsDesign for Logistics: minimizing packaging, handling and shipping costsDesign for the Environment: minimize negative environmental impacts, across product life cycleDesign for Manufacture: Processes4–13LO4-5Design for Assembly: minimizing number of components and easing assembly processesDesign for Product Serviceability: easing disassembly and component reuse Design for Six Sigma: improving process consistencyRobust Design: improving the design’s tolerance for variabilityEnabling Technologies4–14LO4-5Product/Process Innovation SummaryInnovative firms gain competitive advantage.Innovation in the SC involves customers, suppliers and other partners, resulting in faster and more efficient development.Innovation projects have multiple stages.Innovation project stages can proceed sequentially or concurrently.Innovation projects require the integration of many interrelated product/process design issues4–15
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