For any project, this trope can be applied: On Time, On Budget, On Feature, pick two.
Bringing a new product to market requires significant coordination and expectation management. Having accurate information and being able to share it increases the odds of not having two but all three key metrics be achieved.
Supply Chain Management - On Time
Having open and honest communication with your supply chain partners is critical to ensuring that you have the appropriate materials in order to build the product’s first production run. This coordination is critical to ensuring that you can meet the on time characteristic.
- Supplier Coordination: Ensuring that all parts not only are in inventory but meet quality standards. In many cases, supply chain partners have to manage last minute design changes, which may cause rework. Effective communications and schedule management mitigates these risks.
- Inventory Management: Ensure that you the right amount to be able to produce product for the launch. This may include both immediate and long lead time items. Your manufacturing floor is your most expensive asset, so, ensuring that the right inventory is available is critical.
- Logistics: There are logistics issues that can derail the supply chain that are out of the shipper’s control. Ensure that you have contingency plans for a supply chain disruption.
Pro Tip: Be your supplier’s best customer as they will come through for you if you need help (and don’t be afraid to ask for help).
Quality Control – On Feature
Shipping a product that does not meet the market’s expectations will ensure that you will have serious issues with this product and future products. Market good has a shelf life. Make sure that your product meets market needs and quality standards.
- Process Validation: Trial runs once you have all of the production processes in place will ensure that you can make it at scale.
- Defect Identification: Inspect early to determine if the product functions and meets the market’s expectations. Once you have confidence, you can move to skip lot testing and other less intrusive inspection regimens.
- Validate Features: Continue to validate features by using surveys and direct customer feedback to ensure pricing and market fit.
By investing in quality processes and ongoing feedback, you will ensure that, as the product evolves, it will gain continued market acceptance.
Production Scalability - On Budget
Typically, when a product is launched for a mass market, the initial costs are higher. Manufacturers will take a risk averse approach until market demand justifies investments in automated production lines.
- Capacity Planning: Effective planning will ensure that you can meet initial demand. Consider test marketing to determine if the product works, and then invest in scaling.
- Supply Chain Scaling : Like production scaling, your supply chain must be able to scale as well, which may mean different partners. You can seek different partners for different scaling based on market acceptance.
- Flexible Manufacturing Systems: Before investing in bespoke manufacturing lines, see if you can manage scale through contract manufacturing or smaller investments in tooling and other flexible manufacturing capabilities.
Scalability is critical for meeting market demand and achieving economies of scale.
As you continue to scale your operations to meet demand, you can achieve the trifecta of on time, on budget and on feature. The key, though, is effective orchestration between sales, marketing operations and supply chain to meet a new product introduction goals.
What can MTG do to help you improve your operations?
