New Product Introduction (NPI) 101, Overview

    I would like to provide some simple explanation on what an NPI (New Product Introduction) is. 

    The situation can be best applied for a NPI in an EMS world, focusing in building a new product from their customer. This is only the basic. The overall NPI when executing, will be more than this. It should come with either a checklist, or a gantt chart to ensure everything is well covered. With proper planning, there are less loopholes or risk in the NPI. 

    Why is NPI important? It is important so that all the new product are properly manufactured in a controlled environment, as designed by the designer. Each new product is also properly tested & bought off before leaving the door. When the new product is released, the users or end users can use the product with perfect satisfaction & zero worries. 

    In my previous blog, I have shared the below. It is a very brief 4M + 1E information for an NPI. It could be used to prepare a checklist for an NPI focusing in 4M+1E

    I am adding the items in below text form. If you need a properly formatted copy, please email me so that it is easier for you to build the checklist. 

  

New Product Introduction 4M1E (In an EMS situation):

o What is the new product

 Function

 Public application / use

 Future market

 Competitive advantage

o Man

 Team available?

• Need to establish one?

• Direct labor

• Indirect labor

 Knowledge & experience available

• Training requirement

o Cost incurred?

o Long term ROI

 Hiring of a team

 Setting up a team

• Team requirement

o Organization

o Leader

o R&R

o Escalation points

o Team goal

o Machine

 What SMT machine is required?

 Any unique machines required?

 Ask for manufacturing equipments required, if any

• Age of quipments

• Equipment limitation

• Equipment capabilities

• Equipment serviceability

 What is the cost involved in new machines

• Long term ROI

• Ammortize in quotation

 What is the NRE cost involved?

• Long term ROI

 Overall equipment cost

• Including cost for space & utility utilization

• Do not include profit

o Method

 Direct transfer from customer?

• Additional work needed?

o ECO

o Evaluations

 Marketing methodology

• When to launch in the market?

• Which region?

• How?

• Why this topic is important?

 All documents set up in EMS?

• BOM

o Direct materials

o AVL / AML

• ECO

• IDM

 Overall Instructions

• Manufacturing Instructions

• Packaging Instructions

• Shipping & delivery instructions

o Ship to?

o Shipping requirement

o Storage requirement

o Inco terms

• Storage requirement

o Finished goods

o Raw materials

 Customer forecast

• Methodology of manufacturing

o Buy per forecast?

o Build per forecast

o Buy per PO

o Build per PO

o Blanket PO

o All of these has serious & long term impact

 Supportability

 Materials E&O

 Finished Product inspection & buy off

• Obtain from customers

o FAI requirement

o Qualification plan

• Lead time for the inspections & buy off

• Customers approval to build & ship

• Qualification Plan

• What to do if failed first build?

 Weekly conference call

• Topics to discuss

• Who should attend?

o Material

 All documents from customers?

• Bill Of Materials

• Manufacturing Instructions

• All specifications

• All approved vendors

 When to buy materials

 Who to buy from

 Cost analysis

• Buy standard pack

• Buy just enough

 To take note

• Buy from AVL / AML

• Buy legitimate materials

• If extra cost needed?

o Due to short lead time

o What to do next?

• Do not over buy or over stock

o Quantity

o Cost

o Exception

 Cheap parts

 Incoming inspections - what to do?

• Buy from distributors

• Buy from manufacturers

o Environment

 EMS industry

• EMS situation

• Only manufacture the products for the customers

• Did not design the product

• Contract manufacturing

 Business environment

• Business quotation

o All documents to quote

o Quotation

 Quotes submission

• Customer buy off

o Customer award

• Manufacturing agreement

• Customers requirement buy off

 Operational Environment

• Humidity

• Temperature

• Clean room or not?

    Please email me if you would like to see additional information or further explanation on this topic. This is a massive topic. 

I appreciate your feedback & comments. Hope you enjoy the brief introduction. 

Thank you and best regards,

Ronald Gan