Industry Forum

Companies within the Aerospace industry have long since recognised that although they compete to gain market share, they also share common challenges. In the past they have created differing techniques and methods to try and achieve the same results. To address this, the aviation, space, and defence industry established the International Aerospace Quality Group (IAQG) for the purpose of achieving significant improvements in quality, delivery, safety, and reductions in cost, throughout the value stream. This organisation includes representation from companies in the Americas, Asia/Pacific, and Europe. One of the more tangible results of the group’s activities is the release of a number of industry recognised standards.

AS9102 is the Aerospace standard which seeks to standardise First Article Inspection (FAI) process requirements to the greatest extent possible and can be used at all levels of the supply chain by organisations around the world to provide a consistent process and documentation requirements for verification of aviation, space, and defence products.

This standard was revised in October 2014. When reading the above, the phrase “standardise FAI process requirements to the greatest extent possible” strikes fear into the hearts of the Aerospace supply chain. In reality, there has not been a lot of agreement on what is required in support of a FAI report (FAIR), hence why many organisations add further requirements to those listed within the standard.

With the introduction of AS9145, the Aerospace sector standard for APQP/PPAP, these additional requirements are now being standardised within the 11 PPAP elements.

The trend is now starting for organisations to go back to basics and define their FAIR process around the requirements of AS9102, and seek to gain supporting information from the PPAP file. There is an increasing trend to drive improved, increased accountability for FAIR submission quality towards their supply base and to incorporating any additional requirements within the PPAP file.

Industry Forum are pleased to announce the availability of a number of training courses in support of the techniques and methods required within AS9145 APQ/PPAP, which support FAIR and also provides the training foundations on the requirements for AS9102:

There was a time in the not-too-distant past when a company could create a notable product and reap the benefits of that product for many years. However, today’s market is far more competitive than it used to be and companies now face the prospect of market saturation for single product designs. This can cause revenues and profits to decline and limit the growth potential of a business. Aspirational growth targets are fundamental to future business strategy and a large part of achieving this growth will involve the introduction of new opportunities and new products into the business.

A desire of every growing organisation is to achieve product launch excellence while bringing new products to the market. In doing so building on stable foundations is critical to success.

 

A well-defined product and technology roadmap element will help to align an organisation’s development efforts and efficiently manage product lifecycles while meeting customer needs. This element will play a key role in linking NPI to business strategy, including a definition of what new products or technology will contribute towards business growth targets.

An analysis of your product portfolio and costing model will help to bring to the surface profitable solutions that already exist in an organisation. Product evolution of these focussed Product Market Groups will work as a good input for business development and help to align new opportunities with existing commercial strengths in the business.

NPI projects are often not given sufficient priority in the business to have specific project management resources allocated to them. It often falls to a single function to run new product launches in amongst their other responsibilities, with limited cross-functional support. This can result in a late launch into manufacturing with incomplete information and a stressful push through the final production stages in an attempt to deliver on time to the customer. Resources within an organisation should be channelled through an effective Sales & Operations Planning (S&OP) process. S&OP link with NPI will help to manage resource and capacity balance while introducing new products in the business.

In an effort to improve timelines and effectiveness of a product launch, a number of organisations are experimenting with different best practices in their NPI processes. A big question is what should they do first? A good starting point is to do some internal analysis and identify strengths and weaknesses. Earlier this year Industry Forum launched a free NPI self-assessment tool to help organisations start their NPI improvement journey. If you have not already done so here is your chance to complete the free NPI self-assessment.

Complete the NPI self-assessment.

Manufacturing companies have a range of strategies they can choose from in order to compete in their marketplaces – from Lowest Cost Provider, to Niche Service Provider and Product Differentiation, each brings its own challenges. However, for individual manufacturers, competitiveness is more likely to be connected to their local operating environment and the challenges this brings.

Assessing a company’s competitiveness allows the business to understand what is important to them, and what they should focus on at each point of their growth journey. Understanding their performance and capability enables manufacturers of all shapes and sizes to grow in an appropriate way. Measuring and improving a company’s competitive performance is at the core of the NMCL framework.

The NMCL assessment measures a company’s performance against 6 criteria:

  • Quality
  • Cost
  • Delivery
  • Flexibility
  • Product & Technology
  • Customer experience

The company may choose to compete on one or more of these themes. The NMCL assessment will reflect each company’s view of itself (Company Competitiveness pre-review), and compare that with the view of the customer (Customer Competitiveness view) and the outputs of the NMCL assessor-led Company Capability Assessment. The result is a 360 degree view of the company’s position within its business environment, and crucially, this generates a strategic plan and business case to improve its competitiveness over a 2-4 year period.

The assessment model covers 4 company capability areas:

  1. Competitive Strategy & Management Systems
  2. New Product Introduction & Lifecycle Management
  3. Manufacturing Operations
  4. Supply Chain Management

Delving deeper into Manufacturing Operations – “the use of labour, machines, tools, processing, or formulation to add value to material and produce a good for use or sale”, it encompasses:

  • The layout of people, material and equipment
  • The evaluation and development of the capabilities of people and equipment
  • Asset and workforce utilisation planning and management

The Manufacturing Operations section of the NMCL Assessment has the following subsections:

  • Plant & Equipment
  • Operational Processes
  • Working Environment
  • Quality Management
  • People Capabilities & Organisational Structure
  • Energy, resource and material disposition

The purpose is to identify areas of current performance that are a priority for improvement – either by mitigating ‘order losing’ performance, or by generating competitive advantage by shifting toward ‘order winning’ performance. For example, by implementing robust Problem Solving Techniques in order to meet customer expectations on delivered quality and eliminating repeat concerns, or by re-designing the information and material flows to provide faster response to customer demand through Mapping and Improving the Value Stream.

A full list of the types of Manufacturing Operations Work Package support available through NMCL is listed below:

Manufacturing Operations Plant & Equipment TPM Principles and Approach
Loss Analysis & Improvement
Training and Education Pillar Principles
Operator Level Maintenance Principles
Planned Maintenance Principles
New Equipment Management Pillar Principles
Lean Operational Processes & Working Environment Identifying the Improvement Activities Required
5S Workplace Organisation
Managing Standard Work Across the Business
7 Wastes
Visual Management
Mapping and Improving the Value Stream
Quick Changeover – SMED
Quality Management Principles of Manufacturing Quality Management
Measuring and Managing the Cost of Quality
Problem Solving Techniques
Documented Problem Solving Process
Understanding High Level Processes (SIPOC)
Error Prevention Systems (Poka Yoke)
Six Sigma Variation Reduction Toolset and Managing Variation
Measurement Managing Measurement Systems and Calibration
Measurement First Principles
Metrology Skills
Measurement Process and Standardisation
Good Practice in Measurement Techniques
Overhead Cost Management Cost Benefit from Recycling and Energy

 

For further information, visit the NMCL website.

Industry Forum is a NMCL Approved Improvement Provider to the NMCL Programme and is approved to provide improvement solutions across all four capability areas. To find out more about how we can support you on your NMCL journey, please email [email protected]

Deeper inspection and analysis of both the global and UK top nonconformities shows that in actual fact, local challenges are replicated globally as the top three are shared by all territories.

  United Kingdom Global
1. 8.5.1.1 Control plan 10.2.1 ISO 9001 Nonconformity & corrective action
2. 10.2.1 ISO 9001 Nonconformity & corrective action 10.2.3. Problem solving
3. 10.2.3. Problem solving 8.5.1.1 Control plan

 

Read Industry Forum’s Principle Engineer, Adam Woodward’s blog on the common challenges and how to address them in your organisation:

8.5.1.1 Control plan

IATF Analysis of Major Nonconformities UK year to date 2019

IATF 16949 2016 requires organisations to:

Develop control plans (in accordance in with Annex A) at the system, subsystem, component and/or material level for the relevant manufacturing site and all product supplied.

9.1.1.1 The organization shall verify that the process flow diagram, PFMEA, and control plan are implemented, including adherence to the following:

  1. measurement techniques
  2. sampling plan
  3. acceptance criteria
  4. record of actual measurement values and/or test results for the variable data
  5. reaction plans and escalation process when acceptance criteria are not met.

IATF rules 5th sect 5.8 each on site audit shall include the assessing and evaluating of at least the following:

  1. p) the effective implementation of the control plan, FMEA, and associated documents during the audit of manufacturing

IATF UK Trend

The 3rd party audit process is identifying a number of major issues with the content and implementation of control plans:

  • Links between the PFMEA and control plan and the cascade of special characteristics into the process documentation and process.
  • Process flow, PFMEA and control plan alignment to ensure all process steps are covered and controlled.
  • The control plan does not reflect the process being observed.
  • Changes have been made to the process and are not included in the PFMEA and control plan.
  • Control plans do not always exist for the process being audited.

Benefits of Control plans

The control plan reduces waste and improves the quality of products during design, manufacture and assembly. Control plans identify process characteristics and the control methods for the sources which cause variation in product characteristics.

Control plans focus resources on processes and products related to characteristics that are important to the customer. The proper allocation of resources on major items helps reduce costs without sacrificing quality.

As a living document, the control plan identifies and communicates changes in the product / process characteristics, control methods and characteristic measurement.

Control plans (more than just paper)

The key principle to understand is that the control plan is a live document, so there should be regular scheduled reviews to confirm its effectiveness.

Refer to the requirements in IATF 16949:2016 Clause 8.5.1.1.

If the nonconformance level is unacceptable, then investigate if nonconformance is related to incorrect/insufficiently robust definition within the control plan.

When investigating conformance or auditing a process:

Start with the control plan and look at the amount of alignment between its content and the actual process. See IATF 16949:2016 Clause 7.2.3.

10.2.1 Nonconformity & Corrective Actions

ISO 9001 2015 states:-

When nonconformity occurs, including any arising from complaints the organisation shall:

  1. a) react to the nonconformity and, as applicable:
  • Take actions to control and correct it;
  • Deal with the consequences
  1. b) evaluate the need for the actions to eliminate the cause(s) of the nonconformity, in order that it does not recur or occur elsewhere.

IATF in rule 5th sect 5.11.5 defines in cases where the accepted corrective actions plan for a minor nonconformity is found to be not effectively implemented, a new major nonconformity shall be issued against the corrective action process and the previous minor nonconformity reissued as a major nonconformity.

IATF Global Trend

The global trend shows that organisations are not taking effective corrective actions on the issues which are identified during the 3rd party audits, and their problem solving processes are not effective in addressing these issues. Therefore, during surveillance audits repeat nonconformities are being identified with the addition of another major nonconformity being recorded around the corrective action process.

The Key

The key to successful Problem Solving is to find the root cause of the problem and eliminate it. If the root cause is not identified clearly, then it is tempting to resolve the effect or the symptoms instead. Although the problem may be temporarily “fixed”, the root cause will happen again – it is like a dandelion, it will continue to grow until the root is removed. The cycle of repeatedly resolving the effect is known as Fire-Fighting, and can be very costly as it consumes resources (time, materials etc.). We should avoid this wherever possible.

Problem Solving

Problem solving can be defined as a process to identify root causes. It aims to resolve problems using a structured, team-based approach. Problem solving by nature is a reactive process. When an organisation first approaches the implementation of problem solving it is usually based on the response/reaction to some failing processes. As the organisation improves, the approach to problem solving changes and can now be used to drive improvement rather than just reacting to complaints and concerns. The ultimate goal of effective problem solving is to apply the lessons learnt to predict failures before the failure occurs.

We need to consider as an organisation:

  1. What is a problem?
  2. How to detect problems
  3. When to use problem solving?

The Solution

Industry Forum  offers  training and support related to Effective Problem Solving and Core Tools implemention including control plans so if you are interested and would like to find out more then please contact us at [email protected]

We have developed this handy FAQ in order to answer your questions about the AIAG/VDA FMEA alignment.

Will the new AIAG/VDA FMEA replace the current version AIAG 4th edition?

  • The new book has been released as AIAG/VDA FMEA 1st edition 2019 and is not designed to be the 5th edition version for the current blue books.
  • The current version of AIAG blue book 4th edition will no longer be subject to update but still remains current and relevant at the present time and mandated by some OEMs.
  • IATF are not mandating this as the approach to FMEA and the approach to FMEA will still be driven by the Customer Specific Requirements.

Has the new approach been mandated?

  • No, it is not mandated by any OEMs to adopt this approach at present and is not mandated by IATF.
  • Organisations will only need to meet this requirement if their customer mandates it in the future, or they choose to adopt this approach. Again, this would be subject to agreement with the customer.

Will SMMT Industry Forum be offering training?

Will SMMT Industry Forum’s current FMEA training include the new approach?

  • The current version of our FMEA training is based on the AIAG FMEA 4th edition which remains current and applicable to industry; we will include some references to the new AIAG/VDA approach to outline the main differences. Delegates will need to attend either the 1 day awareness or 2 day practitioner course to fully understand the differences in approach.

Why is SMMT Industry Forum continuing to deliver the AIAG FMEA 4th edition training?

  • We are continuing to deliver the current AIAG 4th edition to ensure our delegates meet their current customer specific requirements which still subscribe to the 4th edition approach.

Will the publication be included in SMMT Industry Forum’s courses?

  • The publication is not included as part of the course. If you’d like to purchase the publication you can do so by visiting our web shop.

If you have any other questions, please contact our expert team on [email protected]

challenges automotive supply chain

 

The automotive supply chain consists of various systems and elements, all of which work together to create a management system that continues to grow as your customers and supply base grows. It’s an extremely complex process so ensuring that all the elements are functioning correctly is crucial in the continued running of the business.

Within a marketplace that is constantly changing under the stresses of the global economy, there are several challenges that the automotive supply chain faces. They can seem difficult and large-scale to the smaller sized businesses, however, having a strategic approach to your supply chain management can assist with approaching how these challenges will affect your business. Here are five challenges to keep in consideration when dealing with your supply chain.

 

Cost & Location

The constantly changing landscape of manufacturing means an increase in several things; innovation, technological advances and especially, consumer demand. Due to this, automotive manufacturers will be eager to see suppliers working locally, being able to be present in the locations where they have manufacturing bases. However, the cost of ensuring this is high and can be a task for smaller workforces. Evaluating the locations of business are crucial to optimising production lines however the possibility of relocating if needed can not only come at a high cost but also risk the ability to meet other client’s quotas and maintaining those quality relationships.

 

Inventory Management

There can often be a fine line between being correctly stocked and becoming under or overstocked and finding the balance between this can be somewhat difficult. It is a system that has to be closely defined and monitored to be able to maintain optimum functionality. Utilising processes and software that oversees your inventory can help you keep a firm stance on your inventory and so not acquire losses that can be avoided. Having a system in place that does so can allow you to make better-informed decisions regarding inventory.

 

Maintaining Control on a Global Scale

The automotive supply chain is on a huge international scale, with the larger companies having a clear presence in plenty of countries worldwide. Costs must be considered in every single aspect of the chain and moving towards a ‘just-in-time’ operation style can only be done if you have visibility of your full chain. It’s necessary to have full transparency and traceability and know exactly what occurs at every stage with data to support it. Once this is done, implementing software can help to automate the process to streamline it amongst the countries worked in.

 

Recall Issues

Amongst all industries, there can often be an issue with product recall and this can be for various reasons. To ensure that these are kept to a minimum as to not incur a cost to the company, processes must be in place. Quality Management systems and health and safety are pivotal in the automotive industry so quality control must be at the forefront of your processes. Having an error in this sense could affect several things such as your reputation with customers and especially tarnish your name within the industry which has long-lasting effects.

 

The Environment & Being Ethical

The 21st Century brings a whole host of issues that are new and important to customers worldwide. There is a myriad of regulations and quality standards that automotive companies must adhere to. They ensure that you fully responsible for the environmental and ethical impacts of your processes and these can be a challenge to maintain.

 

These challenges must be met head on to ensure your supply chain management is as polished as can be. For more information on how to tackle these issues, we offer a range of training and consultancy services covering process mapping and management, Inventory Management, Demand/Supply Management and Quality Systems as well as a library of AIAG publications and VDA publications.

Companies within the Aerospace industry have long since recognised that although they compete to gain market share, they also share common challenges. In the past they have created differing techniques and methods to try and achieve the same results. To address this, a group of Aerospace engine manufacturers joined together to create the Aerospace Engine Supplier Quality (AESQ) group. The objective of the group was to discuss and identify opportunities to develop joint requirements for the Aerospace engine supply chain. One of the more tangible results of the group’s activities is the release of a number of industry recognised standards.

AS13003 Measurement Systems Analysis requirements were released by the AESQ in Feb 2015 to document the common acceptance criteria to be used when evaluating the performance of measurement systems.

Measurement System Analysis (MSA)

Measurement Systems are so much more than the measuring instruments and gauges that are used for measurement. The measurement value that we see is a result of the measurement process being carried out by:

  • The Measuring instrument (Equipment)
  • The person using the measuring instrument (Appraiser)
  • The Environment in which the system operates
  • The Methods used for setup and measurement of the parts
  • The tooling and fixtures that locate and orientate the part being measurement
  • The software that performs calculations and outputs the result

The result that you obtain when making a measurement is influenced by each of the above. The extent to which each of the parameters affect the reading may vary from one situation to another. However, each one of these influences can be looked at as factors introducing variation into the process of measurement.

Why MSA

A measurement system tells you in numerical terms important information about the variation present when a measurement is made. How sure can you be about the data that the measurement system delivers? Is it the real value that you obtain out of the measurement process, or is it the measurement system error that you see?

Measurement system errors can be costly, and can affect your capability to obtain the true value of what you measure. It is often said that you can be confident about your measurement of a parameter only to the extent that your measurement system can allow.

For example, a process may have total tolerance of 30 microns. The measurement system that you use to measure this parameter, however, may have an inherent variation (error) of 10 microns. This means that you are left with only 20 microns of the parameter tolerance. The measurement system variation is eating into your parameter tolerance.

How does MSA differ from calibration?

Calibration is a process used to compare the measuring instrument against standards of known value and uncertainty, and understand the difference between the standard and the actual instrument. Calibration is done under controlled conditions and by specially trained personnel.

However on the shop floor, where these instruments are used, the measurement process is affected by many different factors such as method of measurement, appraiser’s influence, environment and the method of locating the part. All these can introduce variation in the measured value. It is important we asses measure and document all the factors affecting the measurement process, and try to minimize their effect.

We need to consider the complete process used to obtain measurement – (Appraiser, Machine, Material, Method, and Environment).

When should MSA be applied?  

How will MSA benefit my organisation?

MSA helps reduce both the type of risks associated with measurement of a parameter and making decisions based on the result of the measurement, the risk of False Alarm (a good part being judged to be bad) and the risk of a Miss (a bad part being judged as good) .

Industry Forum are pleased to announce the availability of a number training courses in support of the techniques and methods suggested within the AS13003 standard. 

AS13003 – MSA Essentials for Aerospace

AS13003 – MSA Practitioner for Aerospace

 

To find out more about AS13003 MSA and how Industry Forum can support your journey of improvement: 

 

Ever since the first industrial revolution people, businesses and cultures have strived to improve so to get the edge on their competition. History describes these in four stages.

 

The first industrial revolution sees people using powered machines to perform tasks previously done by hand. The second industrial revolution, often referred to as the technological revolution included advances such as wide use of electric light, the telephone and machine advances which enabled more accurately produced interchangeable parts, paving the way for Mass Production. The third industrial revolution sees a shift from analogue to digital, resulting in computers and the dawn of the internet.  The fourth industrial revolution, a term first coined in 2015, reflects perhaps the augmentation of many things that have gone before. Technological advances now enable everything to be detected in minute scales or time frames. Then information is processed simultaneously and comprehensively so to allow autonomous machines.

The big question is where does that leave manufacturing today? All of these developments can be applied in the few leading edge and pioneering companies but not every business can make significant change overnight. For many there is a requirement to make the most of the current process in order to create the opportunities to invest in the process. 

Considering skills, many businesses face a challenge to attract people into manufacturing and this can lead to a risk that skills are lost as the workforce retires.

For many small to medium companies it is a question of where to begin?  What should be measured, where, when and how?  Only then does it make sense to invest in technology and create a business case for change. To arrive at the right decision it is important to consider both the basic process model and how people interact with the process. The process needs to be defined in terms of inputs, methods and outputs and this need to be measured and controlled to ensure outputs meet standards.  To achieve this effectively people need to have the appropriate process knowledge.  This knowledge includes:

  • How to establish standards
  • Basic engineering knowledge that relates to the process
  • How to identify and solve problems

We generally see greater expectations placed on operators as well as supervisors, engineers and managers.  Typically, the role of operator expands to include carrying out minor maintenance checks and even repairs as well as operating equipment to standard.  This in turn provides opportunity for maintainers to incorporate more improvement and project work that collectively provides better plant performance and contributes to increased competitiveness. 

To help plug the skills gap and provide tangible qualifications there are a variety of options available. Common approaches include NVQs and six sigma green / black belts and these are effective however there is an additional qualification that focussed more on manufacturing processes.

The Japan Institute of Plant Maintenance has developed test to qualify operators in this area of basic skills.  From their research, 440 companies have adopted this learning and certification. It applies across all sectors.  In their terms, it is called “Monodzukuri” – which translates to the “art of manufacture.”  Subjects include:

  • The basics of manufacture which is comprised of safety, quality, workplace organisation and standard work
  • How to analyse process performance and make effective improvements
  • Basic engineering skills including lubrication, fasteners, pneumatics, hydraulics and drive systems
  • How to sustain improvements by putting the appropriate maintenance practices in place

On completing the training and passing the test, operators become certified in core manufacturing skills. Individuals benefit by receiving acknowledgement of enhanced competency. The organisation benefit as everyone becomes effective problem solvers and there is a shift to being proactive rather than reactive. Safety and quality performance improves as well as improved Overall Equipment Effectiveness (OEE) or output. Typically, these companies have a level of engagement where all employees are identifying improvements and implementing them, in the range of one idea per person per week. This forms a basis for real culture change.

You can test your own knowledge by completing these sample questions. If you are interested in certified operator training, you can contact the team at Industry Forum to find out more.

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The Global MMOG/LE self-assessment should be used by any organisation that wants to gain a clear understanding of and honestly assess the performance, capability, efficiency, effectiveness, quality, robustness, scalability, and sustainability of an their supply chain management processes.

Global MMOG/LE can be used:

By an organisation to evaluate its own supply chain management processes, performance and capability and benchmark it against other organisations globally.

Between customers and suppliers to manage supply chain processes throughout the entire product life cycle, including:

  • Early product development
  • Pre-production phases
  • Post-production aftermarket/service phases
  • By an organisation as an tool for supplier selection and evaluation

The self-assessment establishes a common definition of supply chain management processes to help organizations:

  • Determine the robustness of existing internal processes
  • Benchmark supply chain operations
  • acilitate continuous improvement
  • Increase customer satisfaction
  • Streamline the flow of information and products throughout all tiers of the supply chain

Version 5 of Global MMOG/LE has been developed by a collective work group of Global experts to ensure the continued evolution of the process and keep it fit for today’s environment. SMMT Industry Forum is a proud member of this group and can provide the latest thinking and development of this Global process.

Version 5 is due for full release in June 2019 and introduces

  • Clear alignment with IATF 16949
  • Increased emphasis on risk management and contingency plans throughout the supply chain including a cyber security policy
  • A deeper alignment between strategies, objectives and continual improvement
  • More emphasis on minimizing or eliminating the skills gap
  • Further emphasis on systems integration and leveraging the planning system
  • Strengthen the requirements for Supplier interfaces, supplier selection and assessment.
  • Increased content on utilising full electronic exchange of data and the adoption of advanced technologies to increase performance and efficiency along with the corresponding need to recognise the requirement for cyber security practices

SMMT Industry Forum recently successfully completed the first training session for Global MMOG/LE practitioners wanting to use the latest version of Global MMOG/LE.

SMMT Industry Forum is the Odette preferred UK training provider and our trainers are deeply involved in the further developments of Global MMOG/LE. We can support through standard training courses as well as customised consulting and assessment support to meet your particular needs.

If you would like to enquire more on these services get in touch

If you would like to be kept informed of further developments in Global MMOG/LE version 5 please sign up to our update service.

Value is a function of risk and return. Every decision either increases, preserves, or erodes value. Activities undertaken to launch new products can cause risks which need to be effectively managed if the return of business growth is to be achieved. Risk management is integral to the pursuit of product launch excellence and strategic minded organisations do not strive to eliminate risk or even to minimise it, a perspective that represents a critical change from the traditional view of risk as something to avoid. Rather, these organisations seek to manage risk exposures across all parts of new product launch processes. To do this, organisations require a risk management process that is practical, sustainable, and easy to understand. The process must proceed in a structured and disciplined fashion. It must be correctly sized to the organisations size, complexity, and geographic reach.

Many organisations assume that establishing stretch objectives and accepting challenges from its customer is enough to achieve better, faster and more profitable products. Yet in reality implementation teams for new product launch are not always clear on what needs to be done.  In the pursuit of “Faster”, teams can cut corners in following the process and can miss key steps in early product development and introduction stages. The result is a multitude of risks introduced during product launch and uncontrolled change implementation, leading to poor “right first time” quality and eroded profit margins, due to money spent on correcting errors. Moreover considering the complexity of collaborating with engineering, supply chain, quality assurance, and manufacturing, planning and executing seamless risk management in a new product launch environment is always challenging.

Casting a wide net to understand the universe of risks is a good starting as long as they are assessed and prioritised to help and focus attention of both the team and senior management. This would require a common set of assessment criteria to be agreed. Typically risks are assessed in terms of impact and likelihood. Something else to remember is that risks do not exist in isolation and risk interactions need to be managed. Even seemingly insignificant risks on their own have the potential, as they interact with other events and conditions, to cause great damage or create significant opportunity. The results of the risk assessment process then serve as the primary input to risk responses whereby response options are examined, cost-benefit analyses performed, a response strategy formulated and risk response plans developed.

Over 60 percent of Industry Forum’s NPI and Lifecycle management client engagement had risk management as an improvement topic. You may start by asking below questions related to risk management practices within your teams responsible for launch of new products:

  • How do we identify risks during project implementation?
  • How do we record and categorise risks?
  • How do we prioritise risks and select an appropriate response action?
  • How do we communicate NPI risk management methodology and practices within our organisation?

If you would like to discuss any of the responses to above questions please get in touch

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