New Product Introduction (NPI) 

A New Product Introduction (NPI) includes all the operations of an organization concerned with defining, developing, and introducing an improvement or innovation. A product could be a physical product (for example, a novel model of a car) or a certain service. The acronyms NPI and NPD (New Product Development) are used interchangeably by many companies. In some cases, the NPI process starts at the stage when the design and development are completed and involves product launch and marketing. The NPI process may differ from company to company. Quite often, it may differ not only from one company to another but also from one department of a company to another. The NPI process should be supported by the upper management to be successful. The effective implementation of an NPI program involves clear communication and teamwork.  

Why Implement New Product Introduction (NPI) 

Well-known organizations understand how crucial it is to implement the New Product Introduction process. In this competitive landscape, achieving success requires developing the right product at the right cost and at the right time. Adhering to a well-defined New Product Introduction process distinguishes success from failure. Some of the key benefits of New Product Introduction are as follows: 

• Reduced Development Cost: When the Voice of the Customer is incorporated at the outset of the project, the design department avoids redesigns, modifications and unnecessary expensive validations. 
• Faster Time to Market: Reduced time spent on development leads to a timely introduction of the product to the market. 
• More Efficient Manufacturing: Using Design for Manufacturing and Assembly (DFM/DFA) principles makes it possible to design products by considering the use of the best practices in manufacturing technologies. 
• Improved Product Quality: The new product introduction process consists of tools designed to make sure that the product is achieving customer satisfaction and carries out its process with the rationale of producing an effective product each time. 

How to Implement New Product Introduction 

A new product introduction program goes through a wide range of stages or phases, also referred to as gates. The phase gate system helps the authority to be aware of the project's progress and ensures timely completion for all activities. The example shown below consists of six phases: 

• Define 

• Feasibility 

• Develop 

• Validate 

• Implement 

• Evaluate 

The various phases in an NPI process flow into each other. Some organizations think about the NPI as having the Start (Define) and Finish (Evaluate). Some interpretations merge the Define and Feasibility stages into one and Develop and Validate into another one. There are a lot of companies that skip the Evaluate stage, which deprives them of useful information for future work. The process goes in a circle rather than a straight line. Hence, the most complicated stage in the NPI process for many companies is Evaluate. The moment the product goes into the market, they start working on the next one but fail to make use of what has been learned. 

Each step of the NPI project includes a certain input and output, along with requirements, documents, and activities.