7B - Innovation & Quality Management in Supply Chain

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Questions and Answers

In which industry are innovations often generated by suppliers?

Technology

Aerospace

Automotive (correct)

Healthcare

What is one of the long-term benefits of early supplier involvement in new product development?

Increasing development time

Reducing production costs

Joint research programmes on new technologies (correct)

Improving product quality

What is the main focus of strategic management processes in new product development?

Managing individual development projects

Fostering technological collaboration with external partners

Providing the necessary infrastructure for future technological collaboration (correct)

Evaluating supplier development capabilities

What is the purpose of collaboration management processes in new product development?

Fostering technological collaboration with external partners Signup and view all the answers

What is the main goal of the concept study stage in new product development?

Determining the functionality of the product for the target market Signup and view all the answers

What is the definition of quality in the context of new product development?

The degree to which customer requirements are met Signup and view all the answers

What is the purpose of quality management in new product development?

To make sure customer requirements are met and to demonstrate this objectively Signup and view all the answers

What is one of the benefits of early supplier involvement in new product development?

Shorter development lead-times Signup and view all the answers

What is the purpose of operational management processes in new product development?

To manage individual development projects Signup and view all the answers

What is the purpose of purchasing in new product development?

To support the idea generation phase Signup and view all the answers

What is the purpose of open innovation?

To create close collaboration with parties that share the company’s business interests Signup and view all the answers

Which of the following is a characteristic of closed innovation?

Recruiting and hiring the smartest people in the field Signup and view all the answers

What is the advantage of open innovation according to the text?

Winning by finding the best research and ideas, regardless of origin Signup and view all the answers

Which company is mentioned as an example of open innovation?

General Electric (GE) Signup and view all the answers

What is the goal of investing in internal R&D in open innovation?

To maximize the value of external R&D Signup and view all the answers

What is the primary difference between open innovation and closed innovation?

The approach to collaboration with external parties Signup and view all the answers

Study Notes

Innovation and Quality Management

Open innovation involves creating close collaboration with external parties to share business interests in research and development, new product design and market introduction.

Open Innovation

Utilizes knowledge from external sources in addition to internal R&D
Focuses on finding the best research and ideas, regardless of origin
Controls profits by creating contracts with other companies that use the innovations
Examples: General Electric (GE), Samsung, LEGO

Closed Innovation

Companies rely solely on internal knowledge and resources for innovation
Focuses on recruiting the smartest people in the field and conducting the best research internally
Controls profits by controlling all innovation efforts internally

The Role of Suppliers in New Product Development

Suppliers can be a significant source of innovation, especially in industries like automotive
Early supplier involvement can result in:
- Shorter development lead-times
- Higher product quality
- Shorter time to market

Benefits of Early Supplier Involvement

Short-term benefits: better product quality, lower product cost, shorter development time, and lower development cost
Long-term benefits: joint research programs, aligned technology strategies, and gain and risk-sharing basis for new product concepts

Three Core Processes of New Product Development

Strategic management processes: provide infrastructure for future technological collaboration with suppliers
Operational management processes: manage individual development projects
Collaboration processes: foster and implement technological collaboration with external partners

Strategic Management Processes

Focus on: make or buy decisions, selecting potential technology partners, standardizing product design, and evaluating supplier development capabilities and performance

Operational Management Processes

Decide which suppliers to address for specific technological questions
Determine what suppliers to involve early and late in the project
Determine what contracts to use in relationships with suppliers

Collaboration Processes

Foster and implement technological collaboration with external partners
Determine how to work with suppliers in new product development, communicate, assess inter-system compatibility, evaluate product designs, and use contractual agreements

Purchasing and New Product Development

Idea generation: generate as many new product ideas as possible
Concept study stage: translate new product idea into a conceptual design
Definition stage: translate conceptual design into a technical design
Product development: translate technical design into laboratory models
Pre-production planning: consider production requirements
Pilot production: manufacture pre-production series
Start of regular production: commence actual production

Quality Management

Quality: degree to which customer requirements are met
Quality management: ensure that requirements are met and can be demonstrated objectively

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Description

Learn about the role of suppliers in innovation, early supplier involvement, and open innovation strategies in purchasing and new product development. Discover how to foster collaborative relationships with suppliers to drive business growth.