What Success Looks Like in New Product Development
1. Knowledge Partner
Fhyzics Business Consultants Pvt.Ltd.
Mr. Gopi Shankar
Chief Engineer – MBP Trucks,
Ashok Leyland, Chennai
What Success Looks Like
in NPD
6. 6
NPD – New Product Development
External Facing:
• Products closer to customer need
• Regulatory requirements
• BS6 emission
• Truck Code
• More competition => Pricing pressure
Internal Facing:
• Increase capacity without added
investments
• Capture higher percentage of lifecycle
expenses => better profitability
• Design cost, Validation, Inventory,
production overhead, spares,
service
Success has two sides of a coin!
8. 8
NPD – New Product Development
External Facing:
• Products closer to customer need
• Regulatory requirements
• BS6 emission
• Truck Code
• More competition => Pricing pressure
Internal Facing:
• Increase capacity without added
investments
• Capture higher percentage of lifecycle
expenses => better profitability
• Design cost, Validation, Inventory,
production overhead, spares,
service
Success has two sides of a coin!
9. 9
NPD – New Product Development
External Facing:
Capturing Customer Requirements is the key to NPD success
Load
Segment
Tonnage
Payloads
- Tons
Speed Kmph
TAT / pickup
(Comments)
Comm
ents on
TAT
Require
ment
Road
condi
tion
% Runn
ing
km/d
ay
Target
Fuel
Efficien
cy
(in
kmpl)
Loading
span
(ft/cub
m/ KL)
Tyre
Spec
Loadin
g
Platfor
m
Height
from
the
road
(in
mm)
Ambie
nt
Temp
Range
Annual
TIV
Min Max Max
Cruisin
g
speeds
Acceler
ation
0-30
Acceler
ation
30-60
Bad
Operational Requirements : sample
10. 10
NPD – New Product Development
External Facing: Feature Requirements : sample
Engine Power and Type
Transmission Type
Load Body Size
Front Suspension Type
Rear Suspension Type
Fuel Tank Size
Tyre
Electrical Architecture
Telematics
Differential Lock
Rear Axle Reduction Type
Axle Wheel End
ABS
Brake Type
Wheel Rim
Anti Roll Bar - Front
Must Have May Have
Flipdown Berth - Day
Cab
Sleeper Berth
Seat - Driver
Seat - CoDriver
Cab Floor Carpet
Music System
Optional
12. 12
NPD – New Product Development
External Facing:
• Products closer to customer need
• Regulatory requirements
• BS6 emission
• Truck Code
• More competition => Pricing pressure
Internal Facing:
• Increase capacity without added
investments
• Capture higher percentage of lifecycle
expenses => better profitability
• Design cost, Validation, Inventory,
production overhead, spares,
service
Success has two sides of a coin!
13. 13
NPD – New Product Development
Key Drivers:
➢ Robust Development Process
➢ Efficient Team - Organization structure and co-location
➢ Front-loading - constant scrum cycle
➢ Digital environment
14. 14
NPD – New Product Development
Typical Internal development process
15. 15
NPD – New Product Development
Typical Internal development process
16. 16
NPD – New Product Development
Typical Internal development process
DFA /
DFM
DFMEA
ORT
Parts
Quality
Design
CROSS FUNCTIONAL TEAM
17. 17
NPD – New Product Development
Cross Function Team:
➢ Co-location
➢ Key members from various functions
➢ Aggregate teams
18. 18
NPD – New Product Development
DR
Engineering
Review
Governing Council
Review
Chief Engineer / Group Head
Review
Zonal Review
Strong Governance Mechanism is important
19. 19
NPD – New Product Development
Front Loading
Scrum Methodology :
• Scrum emphasizes decision making from real-
world results rather than speculation.
• Time is divided into short work cadences, known
as sprints, typically one month long
. . .
20. 20
NPD – New Product Development
Digitalization:
• Scrum emphasizes decision making from
real-world results rather than speculation.
• Time is divided into short work cadences,
known as sprints, typically one month long
21. 21
NPD – New Product Development
Typical success in internal facing are :
• Lower Takt time
• Lower BOM cost
• Part complexity reduction
22. 22
NPD – New Product Development
What Success looks like in NPD
✓ Success in External Facing ✓ Success in Internal Facing
✓ Customer requirements met
✓ Better than Competition
✓ Efficient Operation
✓ Lower cost
✓ Lower complexity