New Product Development Framework For Engineer-Toorder Production

Abstract

Engineer-to-order (ETO) companies which use fresh design every time there is a confirmed order from the customer need to have an effective NPD program. Problems such as design iteration or rework, inability to deliver product on time, cost overrun, inability of contractor or supplier to meet the deadlines are detrimental to the success of the project. The objective of this thesis is to formulate an NPD framework for companies producing ETO products with a view to improving the existing NPD process and act as a foundation for an effective NPD program. Three case studies were conducted during the development of the framework. The first case study which was on the design of pultrusion machine revealed that NPD process was complex with significant interactions among many parties. The second case study confirmed that there were vast differences between ETO and make-to-stock (MTS) companies in terms of manufacturing, human resource, production planning and quality. Critical success factors (CSF) for NPD were derived from the first and second case study as well as from literature, and were used to develop, validate and pilot the third case study instruments. Specifications of the framework were determined prior to developing NPD Framework I. The result from the third case study showed that different companies practiced NPD process differently and all companies did not have a formalized NPD program. Feedback from the third case study was used to develop NPD Framework II which was then validated by experts. Validation feedback was used to develop NPD Framework III which addressed all the unique requirements of ETO operations and covered most aspects of NPD. The core of the framework is NPD process which starts from the front end to the back end and guided by NPD philosophy. NPD processes are supported by communication and information management, benchmarking, human resource and project management. The framework acts as a foundation and consists of all relevant elements from the CSF necessary to guide ETO companies in carrying out effective NPD operations.