Product Development & Launch: Management Best Practices

The automotive industry continues to push more and more responsibility onto suppliers while at the same time demanding greater price reduction. These requirements are "squeezing" profitability from the supply chain and threaten to eliminate all but the strongest suppliers. The most effective means of meeting the multiple requirements of shareholders, customers and employees is now being identified in best-in-industry Product Development & Launch (PDL) practices. This area is becoming the focal point for driving customer satisfaction, cost reduction, quality & warranty improvement, design & launch success and profitability. The best suppliers are using PDL activities to improve nearly every aspect of their company and create a new, powerful competitive advantage. In addition, the PDL process now has a new array of e-tools to make it even more effective.

This report identifies over 50 best practices organizations use to create a competitive advantage in PDL systems and improve the profit contribution of all stakeholders in the process.

Specific topics discussed include:

THE POWER OF CROSS-FUNCTIONAL TEAMS

Identifies best practices in the creation and operation of global customer- focused and product-focused teams. Also reviews best practices in developing extended teams that draw in benefits from customers, suppliers and internal experts.

MANAGEMENT CONTRIBUTION PRACTICES

Focuses on what management must do to ensure products are developed and launched that exceed objectives. Reviews what the management of high-performing companies is doing to provide the highest level of contribution to project teams.

PROJECT REVIEW & CONTROL SYSTEM

Reviews best practices in tracking, controlling and improving project deliverables.

This analysis was prepared as part of ACG’s High Performance Business Series using analysis of almost 200 automotive suppliers over the last three years. While focusing on the automotive industry this analysis is applicable to most industries which develop products for manufacture. ACG is a globally recognized consulting company focusing on performance improvements in the automotive industry.

Analysis Index

1. ACG's Product Development System
2. ACG's Best-practice identification methodology
3. Cross-functional team management
4. Early cross-functional involvement
5. Involvement of manufacturing
6. Extended project team
7. Empowered project leadership capability
8. Project review capability
9. PDL Internet portal
10. Senior management phase reviews
11. Continuous learning transfer capability
12. Conclusions