supplier involvement.doc - SUPPLY CHAIN AND LOGISTICS...

Info icon This preview shows pages 1–4. Sign up to view the full content.

SUPPLY CHAIN AND LOGISTICS MANAGEMENT Final Report on Supplier Involvement in Product Development Bayram Bayramli Berker Yildirim Istanbul - 2018
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

New Product Development – NPD Before continuing on supplier involvement in a new product development (NPD) process first the NPD process is defined: NPD includes all efforts focused on creating a new product, process or service. NPD is the transformation of a market opportunity and a set of assumptions about product technology into a product available for sale. This implies that a firm should always link the customer’s need and a firm’s capabilities to create and develop a product to sell on a particular market PLC (Vernon 1966) PLC has 5 different stages in which the sales volume changes over time. A short explanation of the stages is as follows: - 1. Development: In this stage there are no sales and a firm will focus on introducing the product in the market. 2. Introduction: The in stage 1 developed product is introduced to a market. Also in this stage the product the product is exported to comparable countries. 3. Growth: A product is copied by other countries and production will move to other countries to lower production costs. The sales volumes are still rising. 4. Maturity: The product is facing its maturity state, such that sales volumes stop growing. The company who can produce the product at the lowest costs can gain an advantage over its competitors. 5. Decline: Countries who live in prosperity descent the product and to markets change to poorer markets, such that the sales volume is decreasing. New Product development NPD The process model suggested by Ulrich & Eppinger (2008) explains the core activities involved in a product development activity, which is more suitable for the mass
Image of page 2
production industries. These phases are explained in detail in order to utilize this model to compare product development activities and project life cycle, between the mass producing industries and project based industries. The phases involved in this model are: 0.Planning; 1. Concept Development; 2. System- level Design; 3. Detail Design; 4. Testing and refinement; 5 Production ramp-up. (Ulrich & Eppinger, 2008). The planning phase precedes project approval phase. The product development activity should support the business strategy of a company. Hence, the basic questions asked in a planning process are: What development projects will be undertaken? How do the various development projects relate to one another as a portfolio? What are the budget and time frames for the project? What market segments should be considered? What new technology should be incorporated in the product? What are the manufacturing, service and financial goal of the project? (Ulrich & Eppinger, 2008). In the concept development phase, various concepts are tested and evaluated. Lead users and competitive products are identified in this stage. Feasibility of the selected concept is investigated. Once the product concept is developed, production feasibility is assessed and manufacturing cost is estimated. Patent issue is also investigated at this phase (Ulrich
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 4
This is the end of the preview. Sign up to access the rest of the document.
  • Winter '14
  • Management, new product development, supplier involvement

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern