Are there differences between NPD performances for LM companies using INPD and CM companies using SNPD?
Table 1 shows a summary of the similarities between CM and SNPD. A summary of the similarities between LM manufacturing and INPD is also shown in Table 2.
In SNPD, layout is similar to job shop except offices are located according to the function.
In SNPD, information is processed in large batches.
Due to large batches production and the sequential approach, both CM and SNPD are associated with quality problems.
Similarly, in SNPD, pieces of new technologies have been applied to isolated parts of the NPD process.
SNPD can provide an enduring competitive advantage as highlighted in Figure 1.
Advantages from SNPD fall into two categories: strategic and operational.
SNPD activities also may result in operational gains, by lowering cost and eliminating unnecessary tasks, e.g., improved efficiency.
Specifically, a company can employ one of four ways to gain an advantage from SNPD and timely product introductions: direct attack, flanking, breathing new life into the company, and changing the shape of the company (Stalk & Hout, 1990).
Another company, Sun Microsystems, used the flanking option successfully through SNPD to achieve growth of over 100% over a four-year period.
Toto has continued its market penetration through SNPD. Clearly, there are limits to what companies can do to extend their product life cycle, but some companies overlook the possibilities of making incremental product changes to meet changes in market conditions.