NPI
New Product Introduction - NPI
Introduction to New Product Introduction - NPI
Every year there are huge trade shows where companies reveal all the latest new products in hopes to draw interest from distributors, dealers, and prospective customers.
Companies are continually improving existing products or introducing the latest “all-new” models. What many people do not see or even think about is all the work that was involved in the design, development, and introduction of the new products. The introduction of new products that consumers want requires correct and thorough information, time, and dedicated resources from the entire organization. The companies that are most successful at the development and launch of a new product follow an organized and well-planned process. New Product Introduction (NPI) helps bring all the right resources together at the right time.
(What is New Product Introduction (NPI
A New Product Introduction (NPI) program encompasses all the activities within an organization to define, develop, and launch a new or improved product. The product could be something tangible, as in the case of a new model automobile, or intangible as in a particular service offered. The acronyms NPI (New Product Introduction) and NPD (New Product Development) are used interchangeably by many organizations. In some cases, NPI activities begin after design and development and merely deal with the product production launch and marketing. The NPI process can vary greatly from organization to organization. In some cases, it can actually vary within different divisions of the same company. For an NPI process to succeed it must have the full active support of upper management in all divisions and departments. An effective NPI program involves a large amount of cross-functional communication and teamwork.
Why to Implement New Product Introduction - NPI
Most successful organizations realize the importance of implementing an NPI process. In today’s highly competitive market, companies must develop the right product, at the right time and the right cost. Developing and following a robust NPI process can denote the difference between success and failure. Some of the many advantages of New Product Introduction include (but are not limited to):
Reduced Development Cost: By incorporating the Voice of Customer (VOC) into the early stages of the project, the design team can avoid late design changes, multiple revisions and repeated costly validation testing
Faster Time to Market: With a reduction in development time, the product will reach the consumer and begin generating revenue sooner.
More Efficient Manufacturing: Through the effective use of Design for Manufacturing and Assembly (DFM/DFA) best practices, products are designed with the process in mind.
Improved Product Quality: The NPI process incorporates tools targeted at ensuring the product meets customer needs and the process is capable of producing quality products on a consistent basis.
How to Implement New Product Introduction - NPI
A New Product Introduction process can consist of various phases or gates. The phase gate system keeps management apprised of the project progress and assures all activities are completed on time. The example shown below consists of six phases:
- Define
- Feasibility
- Develop
- Validate
- Implement
- Evaluate
