Understanding the Problems in Volume Production and their Connections to Management of New Product Introduction Projects : A Case Study of the Project Management Factors and the Appurtenant Production Effects from Ramp-Up of New Product in Production for

Abstract: The ongoing globalization of companies has resulted in a highly competitive business climate where companies have to be cost-effective but still flexible with fast response to customer feedback and present in the international scene. In order to meet the fast paced technological development from the competition and changing demand of the customers, companies focus on creating new products and reducing their time-to-market with an early product launch to gain profits from increased market shares. However, in order to maintain profitability of the new product, it becomes even more important for the company to quickly deploy a full-scale production of the product, also known as the production ramp-up phase. Despite being known as a major cost driver in new product development projects, production ramp-up is a research area which have yet received sparse attention compared to research on product launch and time-to-market in new product development projects. However, with shorter product life-cycles and higher market competition it has resulted in a need to shorten the length of a new product’s ramp-up time without making any trade-off to the cost-effectiveness of the ramp-up project and the end product’s final quality. The study identifies the common problems in volume production of a contract electronics manufacturer and their sources of disturbances from the new product introduction process. It also identifies the factors influencing the new product introduction process at the company and how these factors are connected different sources of disturbances. To identify these findings, a single case study was designed and performed at Orbit One AB, a contract electronics manufacturer with a low-volume production of products. The data collection course was executed in an iterative manner over a period of four months through interviews, observation and internal documentation and was backed up and analyzed with a literature study. The data collection through interviews was carried out in two separate rounds, where the first round of interviews was focused on identifying the common problems in volume production and the second round was focused on the factors influencing the output from the new product introduction process. The discoveries from the interviews were analyzed together with the other sources of collected data to reach a conclusive analysis. The results of the study showed that the most common problems in volume production of the company could be traced to six different sources of disturbances: Product, Production System, Design-Production Interface, Quality, Resource Management, and Personnel. The most common problems could also be summarized as: Problems with manufacturability of product; High variation of process performance, Poor correctness of information, Quality issues with products, and High workload on resources. The factors identified in the findings of the study shows that there are multiple and connected factors which affects the final output of the new product introduction process which corroborates with earlier studies and research in the area of production ramp-up. The study did identify two factors which has not been identified by other ramp-up studies, these were: Lack of organizational project culture and customer flexibility.