Management Systems

in 2017, Volume 25, Issue 4, pp 246-250

Production Engineering
Date of submission of the article to the Editor: 04/2017
Date of acceptance of the article by the Editor: 08/2017 DOI 10.1515/mspe-2017-0035

NEW PRODUCT DEVELOPMENT (NPD) PROCESS –

AN EXAMPLE OF INDUSTRIAL SECTOR

Marianna KAZIMIERSKA, Magdalena GRĘBOSZ-KRAWCZYK

Lodz University of Technology

Abstract:
This aim of this article is to present the process of new product introduction on example of industrial sector in context of
new product development (NPD) concept. In the article, the concept of new product development is discussed and the
different stages of the process of new electric motor development are analysed taking into account its objectives, imple-
mented procedures, functions and responsibilities division. In the article, information from secondary sources and the
results of empirical research – conducted in an international manufacturing company – are used. The research results
show the significance of project leader and regular cooperation with final client in the NPD process.

Key words: new product development, project management, production management

INTRODUCTION the last century, during the development of mass produc-

New product development (NPD) process is essential for tion based on the Fordist model, these stages were consid-
the creation of products that satisfy needs of industrial cus- ered sequential. The sequentially executed product devel-
tomers and differentiate company among competition. The opment process often results in a prolonged lead-time and
NPD process has specific character in case of industrial sec- an elevated product cost [3]. To improve the effectiveness
tor, taking into account the level of product personalization and efficiency of the new product development process,
and possibilities of close cooperation with final client. the sequential approach has evolved into a more integrated
The traditional sequentially executed new product de- and simultaneous one, where the different stages are not
velopment process, based on the concept, development, separated and the first product concept can be modified
validation and manufacturing phases, has been outdone and improved through meetings, discussions with clients
and the present most used and successful approach is the and suppliers and feedbacks in every stage of the process.
one that integrates stages and functions. The design of an In consequence, companies has modified employed tech-
industrial product is nowadays strictly integrated into the nology and human-resource management [4].
whole process of development and production of the item The process of NPD consists of several key stages, in-
and there is no longer a sequential distinction between the cluding identifying customer requirements, developing a
different phases of concept, design and manufacture, as product concept, generating a detailed design, testing, and
was common in the past [4]. In majority of companies, product commercialization. At each of these stages, a num-
product design is an element of the new product develop- ber of functional areas are involved – R&D, marketing, and
ment process (NPD) as one of the different functional are- manufacturing, among others – and effective communica-
as. The expertise of industrial designers can provide im- tion and collaboration is fundamental to the development
portant support for the NPD team at most stages of devel- of successful products. The most common way to manage
opment. The design function is integrated in the NPD pro- the different stages and functions involved in NPD is the
cess [9]. Thanks to IT technology, such as computer-aided universal Stage-Gate’ methodology developed by Cooper
design, engineering and manufacturing (CAD/CAE/CAM) and Kleinschmidt [7], which specifies the responsibilities of
tools as well as advanced prototyping technology, it is pos- each functional area at each step of the process. The main
sible to support product design from concept to detailed benefit of Stage-Gate is that it ensures that different per-
designs and ultimately manufacturing [4]. Computer-aided spectives are considered when key decisions are made,
technologies are presently used in most companies in new thus preventing oversights [9]. The Stage-Gate system was
product development process. studied by several Authors and it proved to be an instru-
This aim of this article is to present the process of new ment that top-performing companies use often and well
product introduction on example of industrial sector in con- [5]. In the conditions of current market, the Stage-Gate
text of new product development (NPD) concept. system, also known as the Ideato-Launch process, must be
regarded as a standard for a formal new product develop-
NEW PRODUCT DEVELOPMENT (NDP) PROCESS ment process. The new product development (NPD) litera-
The key stages of the new industrial product develop- ture stresses also the importance of a clear management
ment are: concept, design and production. In the fifties of process. Researchers have noted that all functional areas
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M. KAZIMIERSKA, M. GRĘBOSZ - New product development (NPD) process an example of industrial sector 247

should be involved in NPD [14]. According Cooper [5] suc- The purpose of this research was to examine and evalu-
cessful new product development needs a robust process, ate the process of new industrial product development.
in which the responsibilities of members of the cross-
functional team are clearly defined. This team requires NEW PRODUCT DEVELOPMENT PROCESS IN THE STUDIED
good leadership [1] and good open communications [13]. COMPANY – RESEARCH RESULTS AND DISCUSSION
As new product development process is conducted under New product development process in the studied com-
strong time pressure, there can be considerable friction pany is analyzed for the electric motors. In investigated
between different functions, for example sales and R&D. It company, this process is well structured and it is possible to
is why, this process should be carefully managed [7]. It is distinguish its objectives, implemented procedures, func-
also crucial to recognise customer needs. Successful prod- tions and responsibilities division. All process of new elec-
uct design rests on first understanding customer needs and tric motors development is managed by division of Global
then developing products that meet those needs [10]. In Technical Support (GTS).
their review of the system, Cooper [5] and Cooper and In the company, this process is managed on a basic of
Edgett [6] emphasized the importance of gathering the the special procedure. Its aim is to:
“voice” of the customer and its impact on the final product  develop consistent workflows within the GTS pro-
structure. Herstatt and Stockenström [11] concluded that, cess,
in addition to knowing customer requirements, the gath-  clarify process steps and responsibilities,
ered information has to be translated into technical specifi-  understand all tasks and process of new products
cations and integrated into the product concept. implementation,
Today, computer-aided technologies enable companies  define interfaces with other departments,
to effectively manage the new product development, tak-  reduce the risk and make process more transparent,
ing into account all resources and costs, from the concept  establish new workflow path for customized motors,
and design stage to the production processes. The type of  define roles and responsibilities.
information systems used in the company depends on the The process of new product development is based on
type and nature of the product, the complexity of the prod- cooperation between designers (mechanical and electrical
uct offering, the degree of sophistication of the production engineers), different departments of the company, mana-
process, the number of partners, the degree of internation- gerial staff, suppliers and clients. The product development
alization of the offer and the number of customers. process lasts up to 1 year. The process consists of four stag-
es (Figure 1):
RESEARCH CHARACTERISTICS  Stage I – feasibility study; this stage lasts from 2 to 5
The empirical part was based on an analysis of the re- weeks,
sults of own research. The research was based on case  Stage II – design phase; this phase can last up to 6
study. A case study is used to look into certain phenome- months,
non, person, group or any subject that requires studies. The  Stage III – preparation of the prototype, final costs
case study can be both based on information already avail- and price estimation; this stage lasts up to 5 months,
able and provide analysis for that or it might need some  Stage IV – manufacturing.
additional scientific research in order to investigate a prob- Realization of the new project starts with creation of
lem. Cases have become a source of reliable data and often business case study document. Document should be filled
provide important observations [12]. The studies were con- in by regional sales manager that is responsible for identifi-
ducted in chosen company from industrial sector. Semi- cation of needs of existing clients and searching of potential
structured interviews were conducted in 2017 and were customers. Next step includes feasibility study. The purpose
addressed directly to the managerial staff of company in of the feasibility study is to check overall attractiveness and
Polish subsidiaries. The observation method was used also. technical possibilities of fulfilling customers’ demands.
The studied company is a producer of industrial equipment Stage I begins with the indication of project leader – the
and systems and is a technology leader. Company operates person responsible for its coordination, contacts with the
in more than 100 countries and is one of the world’s largest sales department, customer and partners involved in pro-
supplier of industrial electric motors and drives for differ- ject preparation. The project leader can be a mechanical
ent industries and transportation and infrastructure opera- engineer, who is also a motor designer. In the first phase,
tors. the resources necessary for the implementation of the pro-
The research methodology was chosen based on the cess are verified. Project leader develops a project plan and
classification proposed by Czakon [8]. During realisation of assesses its risk based on the identified customer needs. At
the research, data were obtained from secondary sources this stage designers also prepare a list of possible solutions
(internal materials) and from primary sources (semi- and calculate a preliminary cost. Project leader in collabora-
structured interviews among company representatives ad- tion with the production and supply chain department veri-
dressed directly to the managerial staff, passive observa- fy the production capabilities needed for the customer’s
tion). Semi-structured interviews mostly focus on the inter- acceptance of the project and its implementation in serial
viewee’s opinion and experience, aiming to get rich and in- production. The initial project documentation with the cost
depth data [2]. This kind of qualitative research might be estimation is sent to the regional sales manager who com-
perceived as rather subjective, due to the personal involve- municates with the customer. In the absence of client ap-
ment of the researcher in an open study and difficult to be proval, the project is rejected, if it is accepted, it goes to
an object of generalization. On the other hand, generalizing stage II.
to a population is not the main goal of qualitative research. Further procedures depends on the customer feedback.
It aims at understanding and discovering deeply a particular The responsible department is Global Technical Support (GTS)
case and perspective. that makes feasibility study with all required documents.

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 248 Management Systems in Production Engineering 2017, Volume 25, Issue 4

Fig. 1 New product development process in the studied company

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M. KAZIMIERSKA, M. GRĘBOSZ - New product development (NPD) process an example of industrial sector 249

After receiving the customer decision, the design stage plates. Application of the ICT improves the management of
is started. At this point, the new product project is being process and cooperation between different project actors.
prepared. Mechanical drawings and electrical design has to Very important in this process is internal cooperation:
be created. On this stage a direct cost of the motor is also among project leader and team members, team and differ-
calculated. In case of big or risky projects calculation should ent companies departments. However for successful prod-
be done and checked by financial controller (FC). Supply uct implementation external cooperation with final client is
Chain Management (SCM) department is also engaged. indispensable. Its approval at different stages is crucial for
SCM helps with a new components price estimation. After the product development and help to avoid unnecessary
acceptation of the final project by client, the stage III is work.
started. The prototype is constructed and after its testing,
the final costs are recalculated – taking into account possi- CONCLUSIONS
ble modification and the tests results. The accessibility of The development of modern information technology
parts in SAP system and possibilities of cooperation with allows for implementation of computer-aided design, engi-
needed suppliers are checked. The cost effectiveness is neering and manufacturing in the new product develop-
calculated and final decision about product implementation ment process. Computer support can be applied at every
is taken. In case of not cost effective motors, decision of stage of a new product’s development. However, today,
the head of the factory in needed. The final stage of new electric motors producers must, in addition to creating
product development in the studied company is manufac- new, technologically advanced solutions, have the ability to
turing process according the specifications prepared by create a competitive product offering. Clients expect ad-
project team. In this stage the parts lists are introduced to vanced and innovative solutions in a short time and at
the SAP system, rating plates are created, component attractive price. Consequently, designers, in addition to
codes are introduces in the ordering system, and instruc- designing, selecting, validating, and optimizing motors fea-
tions for production department and data for the robot tures, must have the skills of teamwork and complex pro-
used in the production process are prepared. ject management, which involves preparing plans, cost esti-
Project leader is assigned to each new product develop- mations, and coordinating team activities in permanent
ment process. Its role is essential for product development. cooperation with suppliers, other departments and clients.
The project leader has the overall responsibility for the pro- The research results confirmed the significance of project
ject. This includes: leader and regular cooperation with final client in the NPD
 approving prepared “road map” created by responsi- process.
ble engineer at the beginning of project,
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[11] C. Herstatt and C. Stockenström, “Fuzzy Front End [13] R.F. Riek, “From Experience: Capturing Hard-won NPD
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dr inż. Marianna Kazimierska,

dr hab. inż. Magdalena Grębosz-Krawczyk, prof. PŁ
Lodz University of Technology
Faculty of Organization and Management
ul. Piotrkowska 266, 90-924 Łódź, POLAND
e-mail: [email protected],
[email protected]

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