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New Product Development and role of Purchasing

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1. From your research, discuss the procedures/processes contributing to the integration of standardization and simplification in developing new products?

2. What is the role of purchasing and supply management professionals in the facilitation of these procedures/processes? How can the use of cross-functional teams benefit the development of new or improve existing products?

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Developing New Products: Standardization, Simplification

Integration of standardization and simplification in developing new products
The standardization and simplification aspects of new product development are among the concerns of the technical aspect. As such, in contemplating to produce a new product or to go into a new venture, the following are among the major concerns (Kuratko, 2004):
1. Functional design of the product and attractiveness of the appearance
2. Flexibility of product features to meet customer demands as well as technological and competitive changes
3. Durability of the materials from which the product is made
4. Reliability of the product
5. Product safety
6. Reasonable utility
7. Ease and low cost of maintenance
8. Standardization through elimination of ...

Solution Summary

In this report, new product development process was discussed, specifically the technical aspect evaluation. Under the technical aspect is the concept of standardization or simplification. Standardization would mean ensuring the unnecessary variety of interchangeable parts are reduced. Features and design are then simplified not only to ease the handling and manufacturing processes but most importantly, to reduce relevant costs. The role of effective purchasing and supply management professionals in the operational aspect of new product development is also included in this report.

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Research of the Company Coco Cola

Research a company of your choosing that produces and sells products of some sort. This can be either a company you work for or a corporation where you are able to interview an employee in supply management or conduct research and gain specific supply chain information. You will address each of the following topics as they relate to your company.

A.) History and background of the organization, also including the types of products and product lines manufactured and industry in which the organization operates.

B.) An overview of the organization's supply chain management efforts, including the organizational issues involved with the supply chain such as the organizational structure, the placement of supply chain management within that structure, and supply management's relationship with other departments in the organization.

C.) An overview of the new product development process within the organization, including the supply management's role in that development, the process involved in how the current products are reviewed for either further production or removal from production, and how the organization manages for quality in products.

D.) An analysis of how the organization purchases capital equipment and services needed. This should include how the company makes the choice as to when to purchase the equipment and services as well as the process involved in the actual procurement.

E.) An analysis of how and when the organization determines whether to outsource or make a product in house, how and where the organization finds its suppliers, and whether or not the organization looks at the international arena for purchasing.

F.) Explain how the organization deals with contract issues, including legal issues, resolving contract disputes, and international contracts.

G.) Analyze the production and inventory control measures within the organization, including scheduling, demand systems, inventory functions and analysis.

H.) Analyze the relationship between supply, demand, and logistics in terms of the organization.

I.) Draw your own conclusions regarding the quality level of the organization's overall supply chain management functions and include what you see as the strengths and weaknesses in the system.

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