BUS606: Operations and Supply Chain Management

In NPD, streamlined processes and coordination between the stakeholders are required. Best practices to develop this includes using product data management, process improvement management, and engineering project management to address the globally-dispersed processes that extend across departments, companies, and international borders. Formalized processes between supply chain members support doing the NPD project right and clearly-defined routines assist in developing a dedicated output being agreed upon by all development partners. Collaboration links structural aspects of the supply chain to business processes including decisions on how to technically and logistically integrate supply chain partners, addresses the quality of information exchange, and the operational processes of the SSCM system. To mitigate the increased risks associated with SSCM, companies utilize individual company monitoring, use generalized standards and certifications (such as ISO-14001). In evaluating sustainability efforts, using a product/process approach avoids unnecessary steps that are not environmentally, socially, and economically sustainable. Structured process management to guide projects, align targets and manage sustainability targets as demonstrated by companies further along the sustainability maturity. From a NPD and supply chain standpoint, as product complexity increases with a large number of target components, the value of short lead times increase, and the environmental impact due to shorter distances decreases.

Product Lifecycle Management (PLM) addresses the information integration through all phases – including NPD – to every supply chain member. PLM enhances cross-functional collaboration, reduces product data inconsistencies, and improves coordination and control of product engineers to improve NPD. Information on revenues, costs, time, energy, and material information is exchanged across the organization and companies by integrating product-specific processes, skilled people, and product data. PLM's purpose is to streamline product development and assist in innovation. The PLM information system must support data exchange from first conceptualization through its disposal, should allow for any data component to be directly accessible, store relevant information, serve all functional areas, potentially offer reuse of the product information and provide fine-grained information regarding the product's description and rationale. The PLM must support design and manufacturing process components for large volumes of product information both horizontally and vertically to systems such as ERP systems. PLM supports collaboration through a central data provision for product data management. In PLM, processes need to be designed according to the product and material flow in order to facilitate and accelerate product development. Sustainable NPD success factors supported by PLM include formalization of processes (including product-focused sustainable data handling processes, process flexibility improvement; common change management processes for economic and environmental success, and workflow management for economic process execution) and cross-functional work (including cross-company and cross-functional sustainable process alignment). PLM supports operations management in reducing managerial complexity in NPD. A common product development platform toward economic product development balanced with program and project management toward a standardized sustainable product development process is also recommended for a successful NPD.

With respect to sustainability, acquiring data on environmental performance and social sourcing is enabled by product data management. An environmental management system (such as ISO-14000) requires organizational structures, routines, and a knowledge base to manage the company's direct environmental aspects. Organizational benefits are connected to legal compliance, while financial benefits originate due to a reduction in resource use, waste reduction, and operational efficiency improvements. External driving forces for an environmental management system come from potential corporate image improvement, market advantages, satisfying customer requirements, and public pressures, while internal driving forces for working with supply chain related environmental issues include the link between the purchasing function and other functions, purchasing procedures, partnerships with suppliers, technical skills and environmental knowledge that impact upon the adoption of supply chain activities. Product data management supports the idea of a single source for product data and product sharing, which enhances collaboration activities. Data management plays a significant role in PLM to store relevant product data, especially the data that is integrated with development partners. In PLM, a central location for data management and storage is required to reduce data duplication and data inconsistencies. Research implies that investment in environmental management systems is related to the location in the supply chain versus the end consumer. The closer partners are to the end consumer, awareness increases; while the farther partners are less aware. Additionally, security concerns across informational boundaries increase with SCM; however, through trust-building procedures, collaboration between supply chain members improves. Collaborative product development speed increases after the first years when uncertainty in data security is replaced with mutual trust.