Product

Planning
BMA 4813
Definition of Product Planning
 A product is a good or a service
 Product Planning comprised of two elements
 Product development
 Conceive, develop, produce, and test
 Product management
 Commercialized, sustained, eventually withdrawn
 These two elements combine for a “cradle to grave”
cycle of products
 Same basic cycle for consumer products, services and
commercial products.
Product Planning Roles
 Resource Allocation
 All companies are resource-constrained
 People, time, money
 Product Mix coordination
 Optimal mix of products to fill market targets
 Marketing Program support
 Information about product performance
 Product Portfolio evaluation
 Cash, profitability, market position, strategic value
What is a Product?
 Inventions versus innovations
 Inventions are not products; they are technical
devices
 Innovations are inventions with a marketing program
 Continuous innovation – “new and improved”
 Discontinuous innovation – “new category”
Identifying customer needs
Identifying customer needs
 Improving the Design of Existing
Products/Service (II)
 Ease of production (manufacturability):
• Specifications—precise information about the characteristics
of the product
• Tolerances—minimum & maximum limits on a dimension that
allow the item to function as designed
• Standardization—reduce variety among a group of products or
parts
• Simplification– reduce or eliminate the complexity of a part or
product
Product design criteria for car
 Efficiency in operation (cars mileage)
 Styling (color/appearance/etc)
 Performance (turning radius/breaking distance/etc)
 Luxury (power steering/stereo system/etc)
 Reliability (dependability)
 Maintainability
 Safety
 Concept generation
Concepts are the means for providing function.
•Any form that gives an indication how the function can be
achieved.
•What to do  Function vs. How to do  Concepts (forms)
•Remember that the idea is often not original.
•Many methods for concept generation are available, but no single
method is best.
•A good designer is familiar with these methods and uses them, or
a combination of them, as needed
 Concept selection
How to choose the best of the concepts generated for
development into a quality product?

– Goal is to expend the least amount of resources on deciding

which concepts have the highest potential for becoming a quality
product.

– It is difficult to evaluate concepts, or to choose which concepts

to spend time, particularly when we still have very limited
knowledge and data on which to base this selection.

• Design is learning, and resources are limited.

Product Example
 ProtonIriz
 Perodua Axia
 VW Sharan
 BMW 3 series
 Merc E240
Types of Product Planning
 SRPP – 1-2 years
 MRPP – 2-5 years
 LRPP – > 5 years
Six Types of New Automotive Products
Cost Improvements
 possibly same item with cost reductions (different than price
reduction)
Product Improvements
 New and improved features

Line Extensions
 Proton 3R, Myvi Special Edition

Market Extensions
 Regional, global

New Category Entries

 MPV, Mini van, small car

New-to-the-World Products
 Electric car, solar car
 10- 14

Sales and Profits

Over A Product’s Life Cycle
Why is Product Planning Important?
 One-third of a companies sales come from products
introduced in the past 5 years
 Over 90% of product concepts fail during product
development process
 Of the ones that make it to market, about a third fail
 31% of commercial products, 46% of consumer
products
 27% of product line extensions fail
 31% of new brands in existing categories fail
 46% of new products in new categories fail
Why so much failure?
 Not listening in APD class!
 Lack of marketing orientation – listening to customers
 Driven by engineering – the better mousetrap
 Rushed or incomplete product development process
 Lack of a defined product development process
 Not doing proper market/competitor surveillance
APQP
The Rest of the Course
APQP
The Rest of the Course
INTRODUCTION TO SUPPLY CHAIN
MANAGEMENT

ADZHA AB.
GHANI
27th NOV 2017
AUTO INDUSTRY OUTLOOK
 AUTO INDUSTRY OUTLOOK
Overview of ASEAN Automotive industries
AUTO INDUSTRY OUTLOOK
MARKET TREND – PRODUCT DESIGN
MARKET TREND – PRODUCT DESIGN
 What is a Supply Chain?

When a Business Process Crosses to another company it is the “

Supply Chain”
 Supply Chain Definition

“ It starts with customer and it ends with customer”

“ It requires looking at your business as one continuous process”

- Du Pont’s director of logistics, Clifford Sayer

 Supply Chain Definition

“ Supply Chain Management by definition is about the management

of relationships across complex networks of companies whilst
legally independent are in reality inter-dependent”

- Martin Christopher (1998)

 Supply Chain Definition

“ A sequence of events which creates the value of a specific good.

This sequence may include conversion, assembling and/or
disassembling, movement and placement”

- The Terminology committee of the European Standard Authority

 Supply Chain Definition

“ Maximizing added value and reducing total cost across the entire
trading process through focusing on speed and certainty of
response to the market”

- Tom McGuffog
AUTOMOTIVE INDUSTRY SUPPLY CHAIN
POSITION OF INGRESS IN THE AUTOMOTIVE SUPPLY CHAIN
Thailand, Indonesia, Malaysia and India are considered as key production hubs with many Japanese and Western automotive
production sites. In terms of production perspective, the automotive value chain in Asia comprises of four main types of players:
raw material producers, 2nd and 3rd tier parts suppliers, 1st tier parts suppliers, and OEMs.

Raw Material
1 2 Tier 2 Manufacturer 3 Tier 1 Manufacturer 4 OEM 5 Distribution Market
Supplier
Upstream industrial Simpler individual parts Complicated parts Assemble components A
Dealer
.
parts including steel to be further utilized by produced with higher from Tier 1
blanks, aluminium Tier 1 manufacturer technology to meet Manufacturer into
ingots, polymer pellets OEM’s standard as it automotive
and etc. could affect
performance and safety

B
After sale
.

 Small-sized and local  Small to medium size  MNC or the JV  Mainly are
companies local operators between the local and international
 Mainly operating in MNC companies including
Thailand, Indonesia,  Mainly operating in Japanese, US &
Malaysia, Vietnam Thailand, Indonesia, European
and Philippine Malaysia, Vietnam  Mainly operating in
Source : Ingress Industrial’s Opportunities and
and Philippine Thailand, Indonesia 6 End Customers
Future Prospect Report by Ipsos Business
Consulting (July 2015) No. of Manufacturer No. of Manufacturer and Malaysia.
Indonesia 340 No. of OEM
Indonesia 170
Malaysia 200 Indonesia 24
Malaysia 280
Thailand 1,700 Malaysia 13
Thailand 690
Thailand 16
 Supply Chain Objectives

1. RESPONSIVE TO CUSTOMER NEEDS

- On-Time delivery
- Appropriate quality
- Fix issues quickly
- Continuous improvement
 Supply Chain Objectives

1. RESPONSIVE TO CHANGE
- New products
- New locations/ Market
- New processes
- New IT
- New customer needs.
INGRESS PROCUREMENT SUPPLY CHAIN
 KEY
To achieve and maintain
gross margin of min 20%
and profitability of min 10%.
STRATEGIES
To develop capability, implement
and maintain Manufacturing
Efficiency Excellence to the level
of “World Class Manufacturing
Standards and Practices”.

Manage, implement and continuously

achieve “effective synergy” between
3 key business components of ACM
– Marketing (GSP), Manufacturing
Operations and R&D/PVD
 Key Results
Balanced Scorecard GPVD 2008 - 2010
perspectives to BE in 2011…
Areas so, must DELIVER in 2008/09…
COMMERCIAL /
FINANCIAL To contribute price
Purchase at minimum cost (2%
competitiveness for Group of
cost reduction)
Company

CONSUMER /
CUSTOMER Timely Reporting
PERSPECTIVE
Delighting Customer
Purchasing tracking
information

INTERNAL
Lead time processing
PROCESSES Efficient Purchasing Process Purchasing tracking information
Internal & external
communication
Competitive Supplier Strengthening of T2 Management

LEARNING &
GROWTH “Right Skills, Correctly
(People & Empower & Motivated
Implemented”
Culture) Employees
“Motivating Environment and
Clear Structure”
 Key Results
Balanced Scorecard – GPVD 2007/08
COMMERCIAL / Purchase at minimum cost (2% cost reduction)
Areas
FINANCIAL
Strategic
5R STRATEGIES Overall
&
Group Bench Efficienci
Effective
Best Purcha marki es and
Tim sing ng Effective
Pric Supplier Quality Quality Procure
e ness
e ment

CUSTOMER Timely Reporting Purchase Tracking Information

Zero complaint from customer & meet the date

Documentation status are traceability
requirement

BUSINESS Effective of T2 Management Internal & Lead Purchasing

PROCESSES External Comm. time tracking
delivery. record
Annual Vendor Meet the
SRM ISIP On time Traceability of
Audit Briefing requirement / QWI delivery information

LEARNING & “Right Skills, Correctly “Motivating Environment and Clear

GROWTH Implemented” Structure”
Mutually
(People & Identify ‘Skill
Training & Proper Clear structure, beneficial
Clear
Gap’ – Technical, performance
Culture) Professional,
Development application scope, and
management and
to fill GAPS of Skills responsibilities effective
Personal feedback
teamwork

Group Efficient Empower &

6 KEYS Purchase Vendor
Purchasing Tier 2 Purchasing Motivated
ACTIVITY Cost Administration
Activities Management Process Employees
GROUP (ADP) Reduction & Management
Enhancement
 Tier 2 Management
1
1- Identification of Parts 1- SPTT
2- Design Planning Sheet 2- PPCM
3- Target Cost Table 3- PQCM 3
4- Supplier Sourcing 4- PSW

Identification Supplier Supplier Sup.Monitoring

Of Supplier Selection Dev.Program Program

1- Ingress Policy 1- Yearly Audit

2- 6M Evaluation 2- Vendor Briefing
3- QCDE 3- ISIP
4- SMM Committee 4- TCA
5- SRM
2
4
 Group Purchasing
1 3
1- Identification of 1- Strategic
common Parts Procurement
2- Product Price Listing 2 - Benchmarking

Supplier Centralized
List of products Negotiation
Database Purchasing

1-Ingress Policy 1- Sale & Purchase

2- 4M Evaluation Agreement
3- QCDE 2- LOA
4- SMM Committee 3- Tender
4- Bulk Purchase
2
4
 The END

THANK
YOU
Moving Forward……..