NEW
PRODUCT DEVELOPMENT AND INTRODUCTION MANUAL
SAMPLE
Our New Product Development and
Introduction Manual is written for the user and is a ready
reference at all phases of your new product program. It
satisfies the requirements of ISO 9001 and you may easily
customize it for your company if you wish. We provide the
instructions! However, it may be used effectively in its
generic format for training your associates for new product
programs and as a specific guide for conducting those
programs.
Our New Product Development and
Introduction Manual covers the full range of actions you will
require and encounter in your new product programs and
includes guidelines for using the manual. Topics
include:
Product Screening - Idea to
Budgeted Product
Product
Identification
Preliminary
Review and Approval
Inclusion in
the Annual Budget
Program Preparations
Team
Selection and Assignment
Team
Guidelines
Program
Requirements Specification
Technology
Evaluation
Preliminary
Program Documents and Projections, Including:
Program
Evaluation Funding Approval
Program Specification and
Evaluation
Product
Functional Specification
Product
Structure
Proprietary
Rights Appraisal
Updated
Program Documents and Projections, Including:
Product
Design and Readiness Funding Approval
Commitment, Product Design,
and Readiness Evaluation
Final
Department Plans
Final
Manning Assignment for Major Activities
Product
Design
Product Test
Plans
Prototype
Build
Product
Order to Delivery Checklist
Unit Test
Product
Documentation
Documentation Transfer (Internal Documentation)
Product
Launch Plan
Product
Announcement
Updated
Program Documents and Projections, Including:
Product
Qualification and Production Start-up Funding Approval
Product Qualification and
Production Start-up Funding Approval
Manufacturing Readiness Review
System
Integration Test
First Piece
Build
Qualification Test
Regulatory
Compliance Verification
Beta Test
(if required)
Product
Launch
Production
and First Shipments
Program
Financial Performance Review
Product Manufacturing Cycle
Ongoing
Responsibility for Product
Regular
Financial Reviews
Product
Continuation and Withdrawal
The following are extracted from our New
Product Development and Introduction Manual. They
include a general statement of purpose and company commitment
to new product development (and introduction) and highlights
from several sections of the manual.
1. GENERAL
1.1. INTRODUCTION
XYZ Company recognizes its responsibility as a manufacturer
of quality products to develop and introduce new or
significantly improved products in a prompt, yet responsible
manner. To this end the company has developed and documented a
New Product Development and Introduction Process (NPDI.)
This system complies with the requirements of the
International Quality Standard ISOO9001:2008 and XYZ
Company's Quality Manual, [XX-XXXX].
The purpose of this manual is to define the steps to be
taken in each NPDI program and the responsibilities and
authority of those assigned to it. It provides for ongoing
oversight to assure that new or improved products meet all
agreed goals established for them, primarily performance,
quality, cost and scheduled availability. All NPDI developed
products will be documented and controlled in accordance with
the company's Engineering Standards, Quality Manual and
Documentation Control Procedure.
The Manual covers the entire New Product Development and
Introduction process from the initial product idea through
NPDI product production. This is done in six phases, each of
which corresponds to a controlled stage of the NPDI process.
Phase 1 is preparatory and defines how the product is
conceived and included in the company's Product Migration
Plan. Phases 2 through 6 define the development, introduction
and production process for the NPDI product.
This manual is for internal use only, and is issued to all
internal XYZ Company departments on a controlled basis. Issue
to anyone outside XYZ Company requires the approval of the
President of XYZ Company. Any deviation from the practices
specified in this manual requires the approval of the
department manager in whose area it occurs and the NPDI
Program Manager
____________________________, Date:_____________
[Name], President
1.2. BACKGROUND
1.0 General
1.1 The New Product Development and Introduction Process (NPDI)
is loosely based on the "Life Cycle" process
currently in use in parts of our industry. The NPDI
process focuses on the product identification, authorization,
design, qualification, introduction and production of the new
product in an expedited and adequately documented fashion.
It defines what is required to get the right product to market
at the right price and at the right time, and to support it
properly throughout the process.
1.2 The NPDI Process applies to any product, including
software and services, and may be edited to include the
appropriate terminology for these products. This manual is
written for large and complex software controlled
electro-mechanical systems, and may be scaled down for less
complex units. {Edit this sentence for
the scope of products your company will develop.}
1.3. HOW TO USE THIS MANUAL
1.0 General
1.1 The major paragraphs of this manual are presented in
the order in which you should perform the tasks they describe
for the best program results. However, each of these
paragraphs is complete for the tasks they describe to
facilitate use of the manual as an NPDI program reference
book.
1.1.1 You are encouraged to read and understand this manual
in its entirety before you attempt to implement the NPDI
Process for your product. You should always try to understand
why something is required rather than incorporate it blindly.
It is possible that a particular step does not apply to
your product and should not be taken.
1.2 A significant part of this manual is concerned with
making sure that your product is well defined, that you and
the entire NPDI team knows exactly what is proposed. Once
that is established the product and program are then subjected
to technical and financial inspection as well as extensive
evaluation of where the product fits in XYZ Company's product
line and market area. If there is any question of the
proposed product's viability it should be identified early
rather than late in the program. Indeed, sometimes the
best course is to terminate the program.
1.3 An equally significant part of the NPDI program is
concerned with the design, test and qualification of the
product. This is the part that most people think of when
the subject of new product development comes up. Obviously, it
must be done right or there is no product. Again, the
key is to understand your product first. Know the risks
before you assume them.
1.4 The Concurrent Engineering approach to product design
is to be used as a matter of XYZ Company policy. This
will avoid having to do things twice, and will assure that
each department has its needs considered in the design
process. Typical examples of this approach are:
1.4.1 Designing for convenience of manufacture.
This will assure in so far as possible that the Manufacturing
and Engineering Bills of Material will be the same. It
will also be helpful to bring Service into the process to
assure commonality in Manufacturing and Service assemblies, a
convenience for Service in the procuring and stocking of
spares.
1.4.2 Designing for Manufacturability (DFM.) The designing
of products for minimum component counts and reduced assembly
times as well as a minimum of required adjustments will be of
considerable benefit to XYZ Company. This usually
requires compromise across the board because of tooling costs
and time constraints, but is worthwhile to keep manufacturing
costs as low as possible and to pave the way for subsequent
cost reductions.
1.5 Another equally important part of the NPDI program and
process is the readiness of key departments to support the
product. These concerns include:
1.5.1 Engineering
· Installation Support
· Product Sustaining
1.5.2 Manufacturing
· Manufacturing Engineering (Process, Tooling)
· Production Readiness
· Product Sustaining
1.5.3 Quality
· Vendor Qualification
· Inspection (Receiving, In-process)
· Statistical Quality Control Preparations
1.5.4 Service
· Training of Service Technical Personnel
· Technical Communications (Manuals)
· Customer Training (Trainers, Manuals)
· Installation (Teams)
· Service Contracts
1.5.5 Marketing/Sales
· Product Information Guides
· Sales Literature and Videos
· Training (Salespersons)
1.6 The NPDI program requires a number of written
documents, specifications, evaluations, reports, etc.
Always understand the reason for the document and what purpose
it will serve before you provide it. It may not be
appropriate for your particular product or program. Do not
include anything just to comply with this manual. By the
same token, be sure that you have a good reason for not
including anything that is specified. The Program
Manager must agree before any requested information is left
out.
1.7 Finally, anything written for this NPDI program should
be concise and to the point as well as accurate. Bullet
statements are generally sufficient, and are preferred.
2. NEW PRODUCT DEVELOPMENT AND INTRODUCTION PROCESS
2.1. GENERAL
1.0 Background
1.1 The development and introduction of new or
significantly enhanced products is essential for the continued
growth and success of XYZ Company. The process is
challenging because time and resources are always limited.
The NPDI Process is a guide to what is important in the
development and introduction process, and how it is to be
handled most efficiently. Its use also helps weed out
non-viable products, and assures that those that are pursued
are within the company's means, respond to a real
customer/market need, perform as specified, reach the market
when required, and are kept within the established cost
targets.
1.2 Estimates of development and sustaining costs and
man/hours, product costs (material, labor and overhead),
function preparations (Engineering, Quality, Manufacturing and
Service), etc. will be required in the course of the NPDI
program. They are part of the individual department planning
process that starts in this phase. They must be as
accurate as possible as they have a direct impact on whether
or not the NPDI program will be funded, and on the success of
the program. They will be revisited as the program
progresses. Significant increases later in the program
may cause its cancellation.
3. PHASE 1 - PRELIMINARY SCREENING - IDEA TO BUDGETED PROGRAM
1.0 General
1.1 The information presented in this phase is background
on how new ideas evolve to be considered for NPDI programs in
XYZ Company. The program and process for developing and
introducing the new NPDI product starts in Phase 2. In
most cases the products with which you will be involved will
have completed Phase 1.
1.2 Phase 1 is the phase in which the proposed product is
identified, evaluated, reviewed against current XYZ Company
and competitive products, prioritized and budgeted. It can be
a long process and starts with the germination of a new
product idea. The main elements of this phase are:
1.2.1 Product Migration Plan
The Product Migration Plan is a matrix of the product
families that includes each of the existing and proposed
products in each family ranging from the least to the most
complex. It will identify the expected life of each product
over a timeline, and will indicate products to be replaced and
those replacing them. The format is at the discretion of
Marketing/Sales, and is not presented here.
{In small companies with a limited
product line, the Product Migration Process may be simplified.
However, it is essential to understand where and whether the
proposed product fits in your company's market and product
line.}
1.2.2 XYZ Company Annual Budget Process
The actual budgeting process is under the control of
Finance/Accounting, and will not be explored in depth in this
manual.
{It is normal practice for companies
to consider proposed new products as part of the Annual
Budgeting process. Development work on new products should not
be undertaken until the program is reviewed, understood and
budgeted.}
3.1. PRODUCT IDENTIFICATION
General
1.0 Sources of New Product Ideas
1.1 New product ideas can originate anywhere - within or
outside XYZ Company. Someone within the company, usually from
Marketing/Sales will champion the idea and initiate the
evaluation of its market potential.
2.0 The Bubbling-up Process
{The following is typical of many
companies and has merit in your company. Early planning for
development and introduction of new products is essential for
their success. The following may be edited to reflect to
approach used by your company.}
2.1 A product idea that Marketing/Sales or any other XYZ
Company department thinks worthwhile will initially be
discussed informally. Eventually, as interest grows,
they will be discussed formally, and brought to the attention
of all department managers and the Executive Committee.
The venue for this presentation is the Product Migration
meeting; a planning meeting at which proposed products and
where they fit in XYZ Company's product line are discussed.
The result of this meeting is the Product Migration Plan that
is forwarded to the Executive Committee and the President of
XYZ Company for approval.
2.2 The Product Migration meeting is normally chaired by
Marketing/Sales, and is attended by the managers and key
personnel from all XYZ Company departments. The meeting
agenda is a proposed Product Migration Plan developed by
Marketing/Sales, often with the assistance of Engineering.
The Marketing/Sales Manager will present the new product idea
at the appropriate time during the Product Migration Meeting
with the support of the Engineering Manager and any others who
may wish to participate.
2.3 If, after the presentation and discussion, the
Marketing/Sales Manager and the other attendees agree that the
new product idea has merit and should be considered further,
it is prioritized and included in the final Product Migration
Plan.
2.4 The Product Migration Plan is forwarded to the
Executive Committee. When approved by the President of
XYZ Company it will be used as one basis for the annual
budgeting process.
4. PHASE 2 - PROGRAM PREPARATIONS
1.0 General
1.1 Phase 2 is the first activity that involves the NPDI
Team, and is concerned with making an initial assessment of
the business opportunity for the proposed NPDI program.
1.1 Included in Phase 2 are:
· Selection of Key Team Members
· Product Code Name
· Team Guidelines
· Product and Program Plans and Documentation
(Preliminary)
1.2 Once the program satisfactorily completes the screening
process and exits Phase 2, the new product is authorized and
funded (phase by phase.)
Our New Product Development and Introduction Manual
includes a separate section for all required (or suggested)
forms, including detailed instructions for their use.
View
list of forms and templates here
Order
New Product Development and Introduction Manual here
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