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Summary
Summary
In response to increasing global competition, companies have increasingly involved suppliers earlier in the design of products, thereby decreasing the time-to-market for any product. Built on experiences of several companies, this book outlines necessary strategies, planning and execution processes for supplier integration, and includes extensive d
Author Notes
Robert M. Monczka is the Director of The Global Procurement and Supply Chain Benchmarking Institute, and a professor of strategic sourcing management and the National Association of Purchasing Management at Michigan State University. Monczka received his doctorate from Michigan State University in 1970
Robert B. Handfield is the Bank of America distinguished university professor of supply chain management at North Carolina State University. Handfield earned his Ph.D. in 1990 from the University of North Carolina at Chapel Hill
Thomas V. Scannell is an assistant professor of management at Western Michigan University. Scannell received his doctorate from Michigan State University in 1999
Gary L. Ragatz is an associate professor of Supply Chain Management and director of the International Business Center at Michigan State University. Ragatz received his Ph.D. from Indiana University in 1985
David J. Frayer is the associate director of The Global Procurement and Supply Chain Benchmarking Initiative at Michigan State University. Frayer received his doctorate from Michigan State University in 1995
Table of Contents
List of Figures and Tables | p. ix |
Preface | p. xi |
Chapter 1 The New Product Development Process in the Context of Supply Chain Management Strategy | p. 1 |
Introduction and Objectives | p. 1 |
The New Product Development Process | p. 4 |
Increasing Role and Impact of Suppliers | p. 6 |
Conclusion | p. 9 |
Chapter 2 Executive Review | p. 11 |
Introduction and Objectives | p. 11 |
Reengineering the New Product Development Process | p. 11 |
Supplier Integration: Strategic Planning Process | p. 16 |
Steps 1, 2, 3 Determining Current and Future Needs | p. 16 |
Steps 4a, 5a Developing a Well-Aligned World-Class Supply Base | p. 18 |
Steps 4b, 5b Developing a Bookshelf of Viable Technologies and Suppliers | p. 20 |
Supplier Integration: Execution Process | p. 21 |
Step 1 Give Supplier(s) an Active Role | p. 22 |
Step 2 Establish Clear Metrics and Targets | p. 23 |
Step 3 Share Information Openly and Extensively | p. 23 |
Step 4 Involve Suppliers in Decision Making and Problem Solving During Design | p. 25 |
Step 5 Monitor Results and Learn from Experience | p. 25 |
Conclusion | p. 25 |
Chapter 3 Reengineering the New Product Development Process: Focus on Supplier Integration | p. 27 |
Introduction | p. 27 |
Reengineering the NPD Process to Support Supplier Integration: An Overview | p. 29 |
Supplier and Procurement Function Roles in the NPD Process: Key Strategic Issues | p. 33 |
NPD Strategy | p. 34 |
Organizational Strategy | p. 37 |
Supply Chain Management Strategy | p. 42 |
Supplier and Procurement Function Roles in the NPD Process: Key Execution Issues | p. 49 |
NPD Team Structure | p. 49 |
NPD Team Empowerment | p. 55 |
Supplier Selection | p. 57 |
NPD Roles and Responsibilities | p. 60 |
Team Dynamics | p. 64 |
Electronic Linkage | p. 67 |
Leveraging | p. 68 |
Risk Management | p. 72 |
Summary | p. 74 |
Appendix 3A Reengineered Product Development Planning Chart | p. 77 |
Chapter 4 Establishing Current and Future Needs | p. 97 |
Introduction | p. 97 |
Determining Current and Future Needs: An Overview | p. 99 |
Step 1 Establish Internal Core Competencies and Capabilities | p. 101 |
Step 2 Establish Current and Future New Product Requirements | p. 104 |
Step 3 Identify Current and Future Needs for External Technologies and Capabilities | p. 105 |
Summary | p. 109 |
Chapter 5 Establishing a Strategically Aligned World-Class Supply Base | p. 111 |
Introduction | p. 111 |
Step 4a Select Appropriate Suppliers and Build Relationships | p. 112 |
Cross-Functional Commodity Management Structures | p. 113 |
Supplier Assessment Criteria | p. 116 |
Building Relationships | p. 121 |
Step 4a Summary | p. 122 |
Step 5a Align Objectives and Technology Road Maps | p. 122 |
Sharing Technology Road Map Information | p. 122 |
Motivating Supplier Alignment | p. 126 |
Summary | p. 126 |
Chapter 6 Establishing a Bookshelf of Viable Technologies and Suppliers | p. 127 |
Introduction | p. 127 |
Step 4b Monitor Supply Market for Emerging Technologies | p. 129 |
Step 5b Continuously Evaluate Emerging Technologies | p. 130 |
Summary | p. 135 |
Chapter 7 Determining the Supplier's Role and Setting Targets | p. 137 |
Introduction | p. 137 |
Give Supplier(s) an Active Role on the Project Team | p. 138 |
Directly Extending the Strategic Planning Process | p. 140 |
Establishing Top Management Support at the Buyer and Supplier Organizations Early in the Process | p. 141 |
Maintaining a Project/Finished Product Focus versus Functional Focus | p. 143 |
Reaching Cross-Functional Team Consensus Regarding the Choice of Supplier(s) | p. 144 |
Formally Defining Roles and Responsibilities of Buyer and Supplier | p. 145 |
Creating Buyer-Supplier Team Permanency/Stability | p. 147 |
Using Contractual Mechanisms to Encourage Supplier Commitment | p. 149 |
Defining Ownership of New Product/Process Technology | p. 150 |
Jointly Establish Clear Metrics and Targets | p. 151 |
Summary | p. 156 |
Chapter 8 Information Sharing and Learning from Experience: The Daily Grind | p. 157 |
Introduction | p. 157 |
Share Information Openly and Extensively | p. 157 |
Developing Trust to Enable Communication | p. 159 |
Confidentiality Agreements | p. 160 |
Reward/Risk Practices | p. 161 |
Direct Cross-Functional/Intercompany Communication | p. 163 |
Involve Supplier(s) in Decision Making and Problem Solving during Design Process | p. 164 |
Colocation of Design Personnel | p. 166 |
Linked Information Systems | p. 168 |
Monitor Results and Learn from Experience | p. 170 |
Performance Measures | p. 170 |
Problem Resolution Practices | p. 171 |
Summary | p. 173 |
Chapter 9 Barriers to Effective Supplier Integration and Future Directions | p. 175 |
Introduction | p. 175 |
Overview of Barriers and Solutions | p. 175 |
Strategic Planning Barriers | p. 176 |
Cultural Alignment | p. 176 |
Trust | p. 180 |
Integrated Supply Chain Processes | p. 182 |
Management Commitment | p. 185 |
Operational Barriers | p. 187 |
Program/Project Goal Alignment | p. 187 |
Honest and Effective Communication | p. 189 |
Integration Problems | p. 191 |
Competitive Concerns | p. 194 |
Conclusion | p. 197 |
Chapter 10 Summary and Conclusion | p. 199 |
Appendix A Additional Readings | p. 203 |
Index | p. 205 |