Managing the Development and Introduction of New Products and Manufacturing Processes
Executive Summary (444 KB pdf)
When Caterpillar's worldwide growth began to increase in 1990, it had to make a transition from general decision-making to divisional decision-making. To reach that objective, it used two different sets of teams in their New Product Introduction (NPI) process -- the NPI team to focus on customer needs and the Competitive Advantage Team to look for commonalities in the design and approach of the products and utilize these commonalities to gain worldwide competitive advantage.
In 1991, IBM sold Lexmark, making it a separate, new company. Lexmark found that it needed to develop a new vision and strategy to bring together manufacturing, product development and marketing. After implementing its process innovation, Lexmark's Winwriter 150c received a four star quality rating by Business Week, significantly reduced costs and gained competitive advantage with demand for the product exceeding supply.
PDM consists of modeling processes electronically to manage the creation and modification of documents, and conversion of existing hard copy documents to electronic format in order to expedite review and document sign-off and eliminate paperwork. PDM allowed QMS to improve the management of engineering documents, better manage its global network, create hardware and software standards, improve the efficiency of it's internet presence and create a cross-communicable UNIX email system to reduce its paperwork load, and also helped QMS become ISO 9002 certified.
Symbol Technologies held a strong patent position on its point-and-shoot hand-held laser scanners. However, some of these patents were coming to an end, which would require the company to lower its pricing and further optimize its operations to continue to compete.This summary describes the six steps of the product development process used at Symbol Technologies to not only overcome the initial hurdle, but reduce new product development time on new products.