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Areas of potential conflict between the marketing, design and manufacturing departments when developing new products

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Introduction

Assignment 4 - 1417 words In the development of new products, the marketing, design and manufacturing departments have a contribution to make. Discuss the areas of potential conflict between these departments, to finalizing new product design, and suggest ways in which these conflicts might be resolved 1. Introduction 2. Possible areas of conflict between the marketing, design and manufacturing departments 3. Possible solutions 4. Conclusion 5. References 1.Introduction All organizations need new products in order to continue to grow, as most of the products you can find in any market today are in their maturity stage and have very little possibility of growth. Most departments within an organization will be involved, in one way or another, in the development of a new product. We will look at the marketing, design and manufacturing departments, the conflicts they might find themselves in while developing a new product and ways to resolve these conflicts. 2. Possible areas of conflict between the marketing, design and manufacturing departments Each department must understand the needs of the other departments involved in the new product development and respond accordingly when providing information or ideas. The marketing department will always try to come up with a product that responds to customers needs that could possibly bring more market share and place the organisation a step ahead of the competition. ...read more.

Middle

The new product's rate of success will increase if the marketing, design and manufacturing departments will share information on customer needs and segments, technology and manufacturing capabilities, competitor strategies, business strategies, and pricing (Deborah J. Dougherty 1987) and the rate of inter-departmental conflict will decrease once the manufacturing and design departments understand customer needs and the marketing department is aware of the technological capabilities and constraints. William E. Souder 1987 has studied 289 projects over a ten year period and concluded that inter-departmental communication ('harmony' in his words) is a strong contributor to the success of a new product development. See figure 1. FIGURE 1 Communication vs. Success Percentage of Projects in Each State Exhibiting Each Outcome OUTCOME State Success Partial Success Failure Harmony Mild Disharmony Severe Disharmony 52% 32% 11% 35% 45% 21% 13% 23% 68% Deborah J. Dougherty 1987, conducted a research into 16 projects in five organisations and found that the projects that were successful were the ones that benefited from communication at high levels within the product team, on nine important topics: product use, politics, needs, delivery, segments, competition, marketing, prices and physical. Three of the methods used by organisations to improve the communication, exchange of information and overall harmony between the marketing, design and manufacturing departments are phase-review processes, stage-gate processes and Quality Function Deployment. The Phase Review Process is a widely employed product development process that involves the completion of a set of tasks by ...read more.

Conclusion

QFD uses four houses. First one links customer needs to design attributes, the second one links these design attributes to actions the organisations can take, the third one links actions to implementation decisions like the manufacturing of the products and the final fourth house links implementation to production planning. QFD's most famous tool would be the House Of Quality, which basically translates the customers' needs into technical specifications, and creates a common language for the marketing, design and manufacturing departments, which will lead to the success of the new product development process and ultimately customer satisfaction. The House Of Quality was first used by Mitsubishi's Kobe shipyard in 1972 and it is now used by Ford, General Motors, Toyota, Chrysler, Xerox, Hewlet Packard, Procter & Gamble, Colgate, Gillette, Kodak, Polaroid in the US and other organizations in Japan. 4. Conclusion Nowadays is hard enough to manage to penetrate whichever market due to competition and barriers put up for new entrants, whether they are new companies or well established ones that venture a new product. Thus it is twice as important when starting a new product development process to ensure that the team product that's been put together by the organisation has the most experienced and recommended managers and team and that the inter-departmental communication and harmony is kept going throughout the entire process, starting with brainstorming for the ideas for the new product and finishing with the successful launch that brings in profit and rewards the team and the organisation with customer satisfaction and everything that comes with it. 5. ...read more.

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