Step 2: Consider the project & risk management process
Figure 1: A typical New Product Development process
Best practice is often hard to define, but a model does begin to take shape if you have enough experience of different industries and different end products. ITCM uses a model incorporating the “project & risk management process” (as illustrated in figure 2). It is based on proven procedures used within the automotive and aerospace sectors for the last 20 years. Despite its pedigree, it is still relatively unknown in the FMCG sector. As an introduction to this approach it is necessary to set a few definitions – by keeping these definitions open and non-industry specific, it becomes clear that any industry can use them to drive any NPD process.
Figure 2: A far more effective NPD process, concentrating on project and risk management.
The process starts with the same key activities as those seen in a typical NPD Process (as illustrated in figure 1), with an ideas-generation process with input from the market and with the business objectives in mind. The next step is to launch a specific project. However, unlike in a typical NPD process, the ‘Manage Project’ and ‘Eliminate Risk’ process then forms the central axis of activity for development and launch of the new product. As is typical with well-managed projects, a set of gateways will also apply, including a Project Close milestone at the end.
The next step is to build in the various Work Streams and form the teams that will ensure success of the project:
The NPD Team who in the old way often worked alone will still of course play a pivotal role, typically taking the product through. In parallel, the Machinery and Engineering Team is established, which would typically include external machinery partners, such as ITCM, as well as internal Engineering functions. The Materials Team is also established, again comprising the key external suppliers who should be consulted from the start of the project. Last but by no means least; the Production Team is set up. This team will engage the manufacturing and supply chain from day one and may typically work through all the following phases.
These Work Steams combine to form the Project, which has a defined start and a finish point. The key output from the project is the sustained, high-performance manufacture and supply of products to the market place. This concept is not new. Drawing the parallels with aerospace and automotive industries, this model is equivalent to the application of ‘Concurrent Engineering’ principles to NPD. Certain brand owners within the medical devices and pharmaceutical sectors do organise projects in a similar way – and from ITCMs experience, the level of project success is hugely improved.
Looking at the benefits of a project and risk focussed approach it is clear to see that there are potentially more ideas from multiple sectors and they are often based on significant past project experience. There is increased chance of generating new IP which as well as providing a competitive edge also generates a product or brand that is difficult for competitors to copy. From a financial perspective costs will be minimised and production efficiencies maximised through improved design for manufacture, design for packaging and design for environment. Project timescales will also be significantly shorter through improved risk assessment and parallel working of machinery partners and materials partners. Finally project/product success rate will be high due to elimination of risks and shared ‘ownership’ of costs and programme goals.
Written by Mark Fletcher
Freelance journalist,
Technical Lucidity.
