Competitive pressures, cost challenges, and increased customer expec¬tations are driving companies to improve the way they develop and introduce products to the market. Whether you’re cultivating internally born ideas, or trying to respond to customer requirements and market demands, the NPI process can help. It enables all constituents to speak a common language. It automates tasks, exposes performance bottlenecks, and drives consistent execution and continuous improvement. It provides management visibility into the product development pipeline. Since NPI is so intertwined with other prod¬uct development processes, its adoption and execution significantly influences your potential for success.
The New Product Introduction process consists of all the work involved in developing, prototyping and manufacturing a product to be introduced as an organization’s new product for a market-place. There are generally four phases: Concept design; Physical design; Prototype manufacture; Pre-production and volume ramp. After this, the product will be handed over to full production, and the organization may also have some involvement in after-sales.
Strategically, the NPI process ensures the company has the timely knowledge to allocate or divert assets and resources to maximize the benefit to the company. Senior executives and other staff are kept fully aware of where each product is in the pipeline and how it affects their performance and that of the company.
A formal NPI process enables you to consistently bring new products to market on budget and time.