SCM CW2 30 11

M21EKM
Supply Chain Management

NISSAN Cogent
Group B
Panjai Sangkeaw (5349708)
Grigor Dimitrov
(5947308)
Nuksit Jarusiripipat (5943997)

Pannag
(5403723)
Guanyun Yang (5028456)
Liu Yang
(5912317)

PANJAI SANGKEAW (5349708)

Product Development
• Creating new product or improving: – Cost
– Quality
– Performance
– Time
(Bhuiyan 2011 and Primo and Amundson 2001 )

• Achieve business goals
– Entering new markets
– Selling more to existing customer – Winning business from competitors (Chron 2014)

Product Development Cycle (Liu 2003)

PANJAI SANGKEAW (5349708)

Product Development
 Nissan Design Cycle.

 The firms’ expectations
Customer orientation
Compatibility of systems
Size and stability of the supplier
Quality management in place
Innovativeness
Flexibility

1
1
1
1
3
3

Openness and mutual support
Congruence of goals (win-win)
Trust and Reliability
Competence, qualification

(Wagner and Hoegl 2006)

The firms’ expectations
(Wagner and Hoegl 2006)

12
13
13
13

PANNAG

(5403723)

Early Supplier Involvement (ESI)
• Need for ESI
-

Reduce product development time (Eisenhardt and Tabrizi 1995)
Improve quality
Reduce product cost (Dowlatshahi 1997)

• Strategic aspects of ESI
- Extent of supplier involvement
- Nature of supplier buyer relationship
- Degree of information exchange and communication (Mclvor et al. 2006)

(Hartley et al. 1997:259)

PANNAG

(5403723)

• Extent of Supplier Involvement
-

The timing of supplier involvement
System/ sub assembly supplier: First-tier supplier (Toyota and Nissan)

• Nature of buyer-supplier relationship
-

Co operative environment between suppliers and buyers
Partnership from (upstream participation) (Bozdogan et al. 1998)

• Information exchange and communication
-

Types of communication
Supplier involvement in cost analysis

GRIGOR DIMITROV (5947308)
•

Challenges in ESI

-

Conflicts between members of organization Different cultures of supplier and buyer
No to share proprietary information
Collaboration

•

References: – Chron (2014) Product development Strategy. [online] available from <http://smallbusiness.chron.com/development-strategy-728.html>[22 October 2014] – Liu, B. (2003) Product development Process and Their importance to organization capability – Wagner, M and Hoegl, M. (2006) ‘Involving suppliers in product development: Insights from R&D directors and project managers’ Industrial Marketing Management [online]