Assessing program and product level risks from huge list of tier1 suppliers is a tough thing. Many times, potential risks related component failures at suppliers side, changes in their product or process design, inability of suppliers to meet the schedule, etc are not even known to OEM program managers.
What Will be the Realizable solution to effectively identify risk early from the huge list of tier1 suppliers for them to monitor and control the overall program risks throughout the NPI program?
Fishbone analysis and problem tree are the two most used method in identify and manage new product introduction risks.
The risks associated with new product introduction are:
1. Product related risk: the design and/or the production processes may be new to the production department.
2. Quality related risk: all new products have potential quality problems.
3. Market related risk: a new product may be technically elegant, but the market may not like it.
Additional risks for OEM:
1. Miscommunication between OEM brand owner and CM.
2. More complex supply chain means higher chance to make mistake.
I am strongly agree with the answers of Prof. Stanley Kam Sing Wong.
Thank you Stanley Kam Sing Wong and Gopinath. R. for your valuable viewpoints.
To be more specific I would like to add that:
Assessing program and product level risks from huge list of tier1 suppliers is a tough thing. Many times, potential risks related component failures at suppliers side, changes in their product or process design, inability of suppliers to meet the schedule, etc are not even known to OEM program managers.
What Will be the Realizable solution to effectively identify risk early from the huge list of tier1 suppliers for them to monitor and control the overall program risks throughout the NPI program?
A series of five interrelated tools are commonly used to ensure new product quality in many industries. They are APQP, PPAP, FMEA, MSA and SPC.
Advanced Product Quality Planning (APQP) is a new product design framework initially developed by General Motors, Ford and Chrysler and now widely used in new product design in many industries. The idea of APQP is rather similar to Design for Six Sigma (DFSS). APQP divided a NPD program into five phases: (1) plan and define; (2) product design and verification; (3) process design and versification; (4) product and process validation and production feedback; and (5) launch, assessment and corrective action.
Production part approval process (PPAP) is used to ensure that the design and product requirements from the higher tier (customer) are properly understood by lower tier (supplier). It also used to ensure supplier has the ability and capability to produce and deliver the product in the right time and at the right quality.
Failure Mode and Effects Analysis (FMEA) is a systematic failure analysis methodology originated in military. In the industry setting, we use at least three types of FMEA: functional FMEA, design FMEA and process FMEA.
Measurement Systems Analysis (MSA) is used to ensure customer requirement and technical specification of a new product is properly measured. It is a technique used to evaluate the method, instruments and process related to measurement to identify the variations in the measurement.
Statistical process control (SPC) is a production process monitoring method to ensure the quality of new product in the manufacturing stage. The purpose of using SPC is to detect potential quality product before it actually happens.
The first 3 tools are of particular important to R&D personals and NPI.
If you develop the products using Value Management (Value Engineering) and combine this with Risk Management i.e. Integrated Value / Risk Management this is very effective as it addresses functionality (as required by the customer) , performance, quality and risk all based on the FUNCTIONS to be performed by the product (or service).
See papers on Integrated Value / Risk Management.
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